FHFA to allow alternative appraisal methods on purchases up to 97% LTV

[George Hatch]

When they're saying they don't want "the appraiser" to do it that might mean they are concerned about the appraiser adjusting their observations to expedite their reconciliations and reporting. If I'm licensed but I'm not performing the appraisal itself they might not have that same concern.

There's a rumor I just heard that the PDCs are actually showing w/pics MORE property deficiencies than the appraisals. That's hard for me to believe and I'll suspend forming any opinions until we can see more definitive indications, but I find the mere possibility to be troubling nonetheless.

Everyone who has ever done reviews or followed another appraiser has seen examples of creative framing with pics, used not so much to lie to the reader or overvalue the property but to avoid having to directly address the situation in the report. For the purposes of expediency, not advocacy.

 

[alebrewer]

When they're saying they don't want "the appraiser" to do it that might mean they are concerned about the appraiser adjusting their observations to expedite their reconciliations and reporting. If I'm licensed but I'm not performing the appraisal itself they might not have that same concern.

There's a rumor I just heard that the PDCs are actually showing w/pics MORE property deficiencies than the appraisals. That's hard for me to believe and I'll suspend forming any opinions until we can see more definitive indications, but I find the mere possibility to be troubling nonetheless.

Everyone who has ever done reviews or followed another appraiser has seen examples of creative framing with pics, used not so much to lie to the reader or overvalue the property but to avoid having to directly address the situation in the report. For the purposes of expediency, not advocacy.

I would believe it - not so much b/c of appraisers 'framing' the photos, but simply that they don't take enough. We are creatures of habit - a habit that leans toward conservancy with respect to photos as a leftover behavior from the 35mm days when pics cost money (and time). The PDC's simply have a LOT more photos - bedroom pics are typically 2-3: from the door facing in, from the corner facing the door, and one additional. Same with all the other rooms. More of the house is photographed, so it naturally follows that more latent defects would be identified.

 

[shrubberyvaluation]

When they're saying they don't want "the appraiser" to do it that might mean they are concerned about the appraiser adjusting their observations to expedite their reconciliations and reporting. If I'm licensed but I'm not performing the appraisal itself they might not have that same concern.

There's a rumor I just heard that the PDCs are actually showing w/pics MORE property deficiencies than the appraisals. That's hard for me to believe and I'll suspend forming any opinions until we can see more definitive indications, but I find the mere possibility to be troubling nonetheless.

Everyone who has ever done reviews or followed another appraiser has seen examples of creative framing with pics, used not so much to lie to the reader or overvalue the property but to avoid having to directly address the situation in the report. For the purposes of expediency, not advocacy.

I'm skeptical that PDCs would show more deficiencies. From my understanding most are realtors, and more likely newer realtors not making many sales. Even realtors with many years of experience seemed shocked sometimes about very common FHA deficiencies.

 

[djd09]

the disconnect continues...if the appraiser kills the deal with 'repairs required' then they are vanquished to the AMC/lender do not use list duh

 

[TerryRohrer]

When they're saying they don't want "the appraiser" to do it that might mean they are concerned about the appraiser adjusting their observations to expedite their reconciliations and reporting. If I'm licensed but I'm not performing the appraisal itself they might not have that same concern.

There's a rumor I just heard that the PDCs are actually showing w/pics MORE property deficiencies than the appraisals. That's hard for me to believe and I'll suspend forming any opinions until we can see more definitive indications, but I find the mere possibility to be troubling nonetheless.

Everyone who has ever done reviews or followed another appraiser has seen examples of creative framing with pics, used not so much to lie to the reader or overvalue the property but to avoid having to directly address the situation in the report. For the purposes of expediency, not advocacy.

The jump from 3 to many photos after the great recession leads me to believe this is a distinct possibility. Some think if you don't show it, you don't have to address it.

 

[Tim Hicks (Texas)]

I would believe it - not so much b/c of appraisers 'framing' the photos, but simply that they don't take enough. We are creatures of habit - a habit that leans toward conservancy with respect to photos as a leftover behavior from the 35mm days when pics cost money (and time). The PDC's simply have a LOT more photos - bedroom pics are typically 2-3: from the door facing in, from the corner facing the door, and one additional. Same with all the other rooms. More of the house is photographed, so it naturally follows that more latent defects would be identified.

Oh please? Most houses don't need 3 pictures of the bedrooms. Pictures should be on the "needed" basis. The lenders already state that pictures are needed for any problems noted on inspection. Why not provide pictures of all the closets too then?

 

[Non Sequitur]

When they're saying they don't want "the appraiser" to do it that might mean they are concerned about the appraiser adjusting their observations to expedite their reconciliations and reporting. If I'm licensed but I'm not performing the appraisal itself they might not have that same concern.

There's a rumor I just heard that the PDCs are actually showing w/pics MORE property deficiencies than the appraisals. That's hard for me to believe and I'll suspend forming any opinions until we can see more definitive indications, but I find the mere possibility to be troubling nonetheless.

Everyone who has ever done reviews or followed another appraiser has seen examples of creative framing with pics, used not so much to lie to the reader or overvalue the property but to avoid having to directly address the situation in the report. For the purposes of expediency, not advocacy.

First things first, define deficiencies.

It’s been my experience interior PDCs do show more “deficiencies”. But that’s expected when photos are taken behind washers/dryers, selfie sticks are used to take photos of every part of the roof including behind fireplaces, etc. I'm not saying all interior PDCs cover that much ground, but I have seen many photograph minor items that exist in all homes. When I asked one company about it I was told they are trained to take photos of EVERYTHING and let the appraiser decide. Problem is, when an appraiser decides a drywall screw pop behind the washer is minor they want statements about safety, soundness, marketability, cost to cure, etc.

 

[Non Sequitur]

And then there's this:

2024 Tech Trendsetter: John Holbrook - HousingWire

John Holbrook brings over 28 years of experience in collateral risk and valuations to ICE Mortgage Technology, where he spearheads the creation of groundbreaking solutions that enhance the homeownership journey. His leadership has led to transformative advancements in digital property valuation...

www.housingwire.com

"A standout contribution is the ICE Validate app — a consumer-centric, property-valuation tool that allows borrowers to assess their own property condition and quality. Validate uses sophisticated image recognition to evaluate aspects like ceiling and wall damage, high-end finishes, and appliance brands. Borrowers upload photos of their home, with geofencing and timestamps. The app generates a condition-adjusted value estimate by comparing the property to similar homes, creating a transparent and reliable valuation report in minutes. This speeds up the appraisal process and significantly reduces costs for lenders, enabling quicker decisions on home equity loans and credit lines. Lenders use this consumer-centric tool to engage with their borrowers during their valuation journey, as well as help reduce the time and costs to close the loan."

Considering FNMA currently allows borrower photos for some 1004Ds, how long before borrower PDC photos for those 97% loans?

 

[alebrewer]

Oh please? Most houses don't need 3 pictures of the bedrooms. Pictures should be on the "needed" basis. The lenders already state that pictures are needed for any problems noted on inspection. Why not provide pictures of all the closets too then?

I could care less what you do bro. I'm telling you what the PDCs include. Are you saying they don't?

 

[shrubberyvaluation]

The jump from 3 to many photos after the great recession leads me to believe this is a distinct possibility. Some think if you don't show it, you don't have to address it.

I wouldn't mind adding more photos over some of the other nonsense that no one cares about.