Freddie Mac vs Appraiser Bias

[Tiffany Gibbons]

https://sf.freddiemac.com/content/_assets/resources/pdf/report/appraiser_capacity.pdf

Oh, already back to the appraiser shortage myth. I'd like to see the trend after the drop off date and let's also give a shout out to The Fed for helping the "shortage". I wonder if there's an appraiser "shortage" now.

 

[TerryRohrer]

In other words, a short, artificially created circumstance is grounds to

Oh, already back to the appraiser shortage myth. I'd like to see the trend after the drop off date and let's also give a shout out to The Fed for helping the "shortage". I wonder if there's an appraiser "shortage" now.

Well, you always throw the baby out with the bath water in response to an anomaly (particularly when your looking for an excuse)!

 

[Tiffany Gibbons]

DW and I are having a respectful conversation about this topic right now. He proclaims FreddieMac reviews thousands of appraisals each month revealing appraisers getting condition ratings completely wrong, versus thousands of reports revealing third party inspectors getting condition ratings right.

I'm asking questions about that, because I'm not sure how they know who is right or wrong without those comparisons being made of the exact same properties side by side. I think they use a ton of general assumptions.

It's funny to me that appraisers are so easily criticized these days. Danny was truly an excellent appraiser in his days in Mid-Tennessee, and my bank used him and his firm back then. Doesn't mean we always agree, but I have a truckload of respect for him.

I once had a great deal of respect for DW as well. He spoke at several meetings and classes back when I was a CR and working on my IFA, he was a state board investigator then and there had been major fraud that the FBI was investigating. Important fakery was happening. Not stuff like "you used an MLS photo in Shelby Forest when the sign at the entrance to the long driveway said we shoot to kill", therefore 3rd party non licensed people can do your job better than you. It was before the AMC stuff too though. Things change. I would say I get it, but really I don't.

 

[J Grant]

Oh, already back to the appraiser shortage myth. I'd like to see the trend after the drop off date and let's also give a shout out to The Fed for helping the "shortage". I wonder if there's an appraiser "shortage" now.

The problem with S/D for mortgage lenders (and appraisers ) is the supply of appraisers is fixed, while the demand cycles of busy , medium and slow lending volume changes. In a slow period there is a surplus of appraisers relative to the orders. In very busy lending cycles, there is a shortage of appraisers relative to the order volume

Imo, a reasonable solution would be to use hybrids/desktops as an option to full appraisals during the very busy cycles to keep turn times on track, and the rest of time stick with traditional appraiser does inspect product

 

[DWiley]

I once had a great deal of respect for DW as well. He spoke at several meetings and classes back when I was a CR and working on my IFA, he was a state board investigator then and there had been major fraud that the FBI was investigating. Important fakery was happening. Not stuff like "you used an MLS photo in Shelby Forest when the sign at the entrance to the long driveway said we shoot to kill", therefore 3rd party non licensed people can do your job better than you. It was before the AMC stuff too though. Things change. I would say I get it, but really I don't.

Actually, nothing has changed. In my investigator days it was the data that drove decisions. Same now.

 

[chad hampton]

They also could’ve created a short form for appraisers to use in times of great appraisal demand. But do you notice any solution that involves appraisers benefiting are never considered. Thats not a coincidence.

 

[DWiley]

The problem with S/D for mortgage lenders (and appraisers ) is the supply of appraisers is fixed, while the demand cycles of busy , medium and slow lending volume changes. In a slow period there is a surplus of appraisers relative to the orders. In very busy lending cycles, there is a shortage of appraisers relative to the order volume

Warning - If you post such basic concepts you risk being labeled as promoting myths.

 

[ucbruin]

They also could’ve created a short form for appraisers to use in times of great appraisal demand. But do you notice any solution that involves appraisers benefiting are never considered. Thats not a coincidence.

I believe that the bottle neck occurs at the point of inspection....
Most, if not all, appraisers want to bundle as many inspections in the same place on the same day...
So they'll put off an inspection until they can bundle 2 or more inspections....

 

[DWiley]

I believe that the bottle neck occurs at the point of inspection....
Most, if not all, appraisers want to bundle as many inspections in the same place on the same day...
So they'll put off an inspection until they can bundle 2 or more inspections....

Surely you jest?? No appraiser has ever admitted to that on this forum

 

[George Hatch]

I don't think we need to fret the "lack of capacity" issue any time soon.