FHFA to make desktop appraisals permanent for purchases in 2022

[Zoe]

I just got the 2nd only ROV while working for VA and it came from a very big veteran lender that sent it to me. I responded you have to send that to VA and VA request the ROV. I already know my response on the information they provided. The lender should have known better than try to escape VA in the process. The lender knows better. Whoever sent it didn't know better. That's their employee though.

I know a real estate agent and appraiser trainee is in the family and did the ROV request. I know a veteran owns the home. The child is the real estate agent and appraiser trainee.

This is not a sale. This is for refinance.

 

[Zoe]

The conditions around desktops will make it easier for some parties in deals to commit fraud or inflate a price

The conditions around desktops will make it easier for marginal/less experienced appraisers to get a bigger market share which might reduce the number of conscientious appraisers out of the residential side of lending.

Desktops were traditionally used for refinance or equity lines-- a sale is different because it can induce collusion with parties or a price which if inflated, affects the rest of the market . A desktop makes it harder for an appraiser to defend their value and /or have a value different than SC price, pretty hard to go to bat one way or another on a property you never set foot on. It also isolates the appraiser away from hands on immersion in the market and from interacting with RE agents, builder, owners- I get a lot of info onsite at inspection from them, all that will be gone.

Yeah, the possibility for collusion explodes. However the possibility for professional appraisers explodes.

 

[Zoe]

Racial bias accusations is what is fueling this. Lenders don't care. They just don't like paying for appraisals that don't meet the value they want. They want to skim fees to appraiser in the their truth in lending disclosures. They already got away with one lie on appraisal fees to AMC's. They are going for dagger now. Wait til next downturn. Let them ask for desktop in next downturn.

 

[Zoe]

If the govt really wants to look at racial bias, then why can't they examine that with lenders on truth in lending disclosures? New post

 

[bnmappraisal]

I skimmed through the thread thus far, but isn't the main issue the fee(s) with Desktops? Are AMCs paying legit fees now for these?

I offer desktops for private/non-lending often (even started a thread about it).
I have no issues with doing them and only give about a 20-25% discount on my normal full inspect fee

 

[chad hampton]

I haven't heard that fees are the issues with desktops. The issue I would think would be that you have someone you don't know, and haven't trained, participating in the appraisal process that you are held liable for.

 

[shrubberyvaluation]

I haven't heard that fees are the issues with desktops. The issue I would think would be that you have someone you don't know, and haven't trained, participating in the appraisal process that you are held liable for.

And who is this added into the appraisal process? Isn't it just the appraiser unless he decides to have assistance from someone?

 

[ucbruin]

 

[ucbruin]

I'm sitting on 2 Desktop refi's that were assigned 9-10 days ago....
When I received the assignments I emailed the homeowners asking if they were willing to provide photos/information to me....
When they responded yes, I sent them another email explaining what I needed, including pdfs of the assessor field card, most recent MLS listing sheet, page 1 of URAR including filled out subject photo pages-exterior and interior (for them to use as a visual aid)....
Still haven't received the photos/information from the borrowers, so I may have to ask the lender to nudge them....

 

[J Grant]

I skimmed through the thread thus far, but isn't the main issue the fee(s) with Desktops? Are AMCs paying legit fees now for these?

I offer desktops for private/non-lending often (even started a thread about it).
I have no issues with doing them and only give about a 20-25% discount on my normal full inspect fee

Idk, seems there are two versions of "desktops" -a short form which I doubt will be for purchases with cheap fees, I read fees in the $75 range.

Then a URAR desktop that is similar to 1004 except with no personal inspection ( a 2055 form presently ). I've done a few and as above the fees offered are typically 20% off a 1004 . But consider that direct lenders pay full fee to appraiser and AMC's take a cut, so 20% off an already discounted fee for AMC works is a thin profit . Then consider that AMC;s will seek to find appraisers willing to do them for cheap, and they will thus end up with appraisers to do them cheap by taking on orders outside their normal geo area since no need to inspect. Appraisers doing desktops outside of their area of experience is a potential problem.