FHFA to make desktop appraisals permanent for purchases in 2022

[spittman]

I've done exactly one 1004 desktop. It was for a purchase so had the current MLS sheet, a disclosure addendum for all the mechanicals on the property, every interior/exterior photo that I would have personally taken during inspection and 3D google aerials. Best of all, full fee. I couldn't believe it. I like those kinds of desktops. I'd do those all day if all the data I needed was readily available.

 

[J Grant]

I've done exactly one 1004 desktop. It was for a purchase so had the current MLS sheet, a disclosure addendum for all the mechanicals on the property, every interior/exterior photo that I would have personally taken during inspection and 3D google aerials. Best of all, full fee. I couldn't believe it. I like those kinds of desktops. I'd do those all day if all the data I needed was readily available.

It is highly doubtful they will be will be full fee = even if a reduced fee is mitigated by saving time without inspection - less $ is less $. That might affect some appraisers more than others.

, I've done a few during covid exemptions, fee was full and not the problem but I felt a disconnect from the property having not inspected and I hated doing them even with lots of info and photos avail. That might change if I did them more often but imo .esp in a purchase, the lack of inspection means weaker support to decide or defend why it is X $ value instead of $ Y value.

 

[ucbruin]

It is highly doubtful they will be will be full fee = even if a reduced fee is mitigated by saving time without inspection - less $ is less $. That might affect some appraisers more than others.

, I've done a few during covid exemptions, fee was full and not the problem but I felt a disconnect from the property having not inspected and I hated doing them even with lots of info and photos avail. That might change if I did them more often but imo .esp in a purchase, the lack of inspection means weaker support to decide or defend why it is X $ value instead of $ Y value.

For the record when I post about Desktop I'm referring to the Desktop 1004 with Modified Scope of Work....
Full fee and typically a longer due date than Traditional....

"I've done a few during covid exemptions..."

I find it curious that you accepted more than the initial order since you have consistently expressed your deep concerns....
Shouldn't you have stopped accepting assignments after the 1st one....

 

[J Grant]

For the record when I post about Desktop I'm referring to the Desktop 1004 with Modified Scope of Work....
Full fee and typically a longer due date than Traditional....

"I've done a few during covid exemptions..."

I find it curious that you accepted more than the initial order since you have consistently expressed your deep concerns....
Shouldn't you have stopped accepting assignments after the 1st one....

Geez these were covid exemptions ! I did though stop accepting them after doing 4 - that is how much I disliked doing them. I probably lost $ by not doing them as the offers came in for months, but I had enough other work. I think it is possible to do a credible job with them, but whether the value opinion is as well supported due to lack of inspection, no - but that is an assignment condition and assumption.

It is naïve to think full fees and /or longer turn times for a desktop 1004 will apply when the covid exemption for doing them is over. It will be tighter turn times and lower fees, I'll make a wild prediction of that (sarcasm )

 

[shrubberyvaluation]

I've done exactly one 1004 desktop. It was for a purchase so had the current MLS sheet, a disclosure addendum for all the mechanicals on the property, every interior/exterior photo that I would have personally taken during inspection and 3D google aerials. Best of all, full fee. I couldn't believe it. I like those kinds of desktops. I'd do those all day if all the data I needed was readily available.

Those are great, I passed on a couple with no MLS listings and no recent prior listings. The drive-by refis were a PITA. I was not willing to just take photos, I don't know what home they were from. I would have the homeowners do something like do a virtual tour starting from the exterior (so I could match it with the front from my exterior inspection). Fortunately they were cooperative in showing me the angles I wanted to see, but if they had not been it would of been even worse. Easier to just inspect the property. Fortunatly I was allowed to measure the properties because one was significantly off the tax records.

 

[CGinMN]

I find it curious that you accepted more than the initial order since you have consistently expressed your deep concerns....
Shouldn't you have stopped accepting assignments after the 1st one....

Putting the checks and balances/potential fraud part of this aside, I know from doing desktop work that there is no one size fits all solution. So while 50% of assignments may lend themselves to a desktop appraisal, the other 50% may not. The problem is that lenders and AMC will try to make 95% of assignments work with a desktop scope, and they will shop and shop until they find an appraiser who agrees. Eventually, they'll just start their search at the appraiser who says yes to everything. That appraiser will be rewarded for thinking they can produce a credible work product that three other peers didn't believe was possible without a personal onsite observation. The result is that bad analysts are rewarded, the public trust erodes further, more "appraisals are subjective" narratives, and all of the sudden the leap to AVMs is a lot closer.

 

[ucbruin]

Geez these were covid exemptions ! I did though stop accepting them after doing 4 - that is how much I disliked doing them. I probably lost $ by not doing them as the offers came in for months, but I had enough other work. I think it is possible to do a credible job with them, but whether the value opinion is as well supported due to lack of inspection, no - but that is an assignment condition and assumption.

It is naïve to think full fees and /or longer turn times for a desktop 1004 will apply when the covid exemption for doing them is over. It will be tighter turn times and lower fees, I'll make a wild prediction of that (sarcasm )

"Geez these were covid exemptions ! I did though stop accepting them after doing 4 - that is how much I disliked doing them. I probably lost $ by not doing them as the offers came in for months, but I had enough other work. I think it is possible to do a credible job with them, but whether the value opinion is as well supported due to lack of inspection, no - but that is an assignment condition and assumption."

This response makes little sense to me....
You didn't lose $ because you had "enough other work"....


"It is naïve to think full fees and /or longer turn times for a desktop 1004 will apply when the covid exemption for doing them is over. It will be tighter turn times and lower fees, I'll make a wild prediction of that (sarcasm )"

This is going to apply to all appraisal products....

 

[J Grant]

"Geez these were covid exemptions ! I did though stop accepting them after doing 4 - that is how much I disliked doing them. I probably lost $ by not doing them as the offers came in for months, but I had enough other work. I think it is possible to do a credible job with them, but whether the value opinion is as well supported due to lack of inspection, no - but that is an assignment condition and assumption."

This response makes little sense to me....
You didn't lose $ because you had "enough other work"....


"It is naïve to think full fees and /or longer turn times for a desktop 1004 will apply when the covid exemption for doing them is over. It will be tighter turn times and lower fees, I'll make a wild prediction of that (sarcasm )"

This is going to apply to all appraisal products....

No it won't your posts are ridiculous.

Good luck with desktops. If they become popular any of us in mortgage work will be doing some of them because will be impossible to avoid if we want to keep a client. Luckily I do very little AMC work so my income won't drop as dramatically but desktops are going to pay less no matter who orders them.

 

[ucbruin]

Those are great, I passed on a couple with no MLS listings and no recent prior listings. The drive-by refis were a PITA. I was not willing to just take photos, I don't know what home they were from. I would have the homeowners do something like do a virtual tour starting from the exterior (so I could match it with the front from my exterior inspection). Fortunately they were cooperative in showing me the angles I wanted to see, but if they had not been it would of been even worse. Easier to just inspect the property. Fortunatly I was allowed to measure the properties because one was significantly off the tax records.

I am a bit more trusting than you regarding interior photos provided by the homeowner....

But other than that I agree with you that appraisers who accept Desktop product need to verify physical characteristics of the subject property before completing the report....
If something looks way off from whatever data source is available then the appraiser should stop and contact the lender or make some type of arrangement with the homeowner....
I've complete a few 2055 exterior only with comps and I have the borrower supply me with exterior and interior photos....
Works for me....

Putting the checks and balances/potential fraud part of this aside, I know from doing desktop work that there is no one size fits all solution. So while 50% of assignments may lend themselves to a desktop appraisal, the other 50% may not. The problem is that lenders and AMC will try to make 95% of assignments work with a desktop scope, and they will shop and shop until they find an appraiser who agrees. Eventually, they'll just start their search at the appraiser who says yes to everything. That appraiser will be rewarded for thinking they can produce a credible work product that three other peers didn't believe was possible without a personal onsite observation. The result is that bad analysts are rewarded, the public trust erodes further, more "appraisals are subjective" narratives, and all of the sudden the leap to AVMs is a lot closer.

I guess any things possible....

 

[ucbruin]

No it won't your posts are ridiculous.

Good luck with desktops. If they become popular any of us in mortgage work will be doing some of them because will be impossible to avoid if we want to keep a client. Luckily I do very little AMC work so my income won't drop as dramatically but desktops are going to pay less no matter who orders them.

"If they become popular any of us in mortgage work will be doing some of them because will be impossible to avoid if we want to keep a client."

Your customer service/income supersedes your HIGH personal standards/beliefs/concerns/ethics/etc.....
It's a business decision, understandable....

"Luckily I do very little AMC work so my income won't drop as dramatically but desktops are going to pay less no matter who orders them."

I'm not disagreeing with you about a possible reduction in fees....
Hopefully your non-AMC clients will continue to pay current fees once the record volume of appraisals drops back to normal or below....