GSE Waiver & Data Collection Data

[Terrel L. Shields]

I never said appraisers should get paid less for their hours

But you recognize that hybrids are touted as cheaper and quicker. Why deny reality? Just because you and I will never do them, does not make them harmless to the 10s of thousands of residential appraisers who depend upon secondary market to make a living.

my client has engaged me on this basis knowing in advance

And that client is not likely to sue you. And it isn't a report for secondary market subject to FNMA "tips", nor even for loan origination from a regulated bank. It is borrowers and end users like FNMA who are turning in appraisers over nonsense. And the race card is the current soup de jour for many lawsuits.

 

[George Hatch]

Okay, change that to the laws have not been changed, but new products were developed that profit AMC's said products, occupying a grey area on the legal or credible scale -

The WAIVER is such a product- a valuation that is not an appraisal, developed because it is not subject to the regulations of appraisals and thus can have a loan officer estimate the value , or the sale price be the property value (as long as the value falls in the GSE AVM range )

The other product is the expansion of the hybrid into 1004 origination loan use , and the flood of non-licensed non-appraisers to do the inspection portion, it entails. To skirt the USPAP grey zone of when an inspection is part of appraisal practice, it is called a data collection; the Data collector provides no opinions.

"new products were developed" is the passive voice version of "users have developed or adopted new products".

User-developed. Not govt-mandated or govt-adopted.

USPAP applies to appraiser conduct. What an appraiser is required to do when acting in that role. Not to people who are not acting in that role.

There is no such thing as a USPAP compliant PDC, and I would go so far as to say that a licensee performing (only) a PDC should not be misrepresenting their role or their workproduct. It is a matter of fact that this PDC w/appraiser license is not working with or working for the appraiser who is performing the desktop SOW.

 

[glenn walker]

Total BS - Appraisers are very well informed -and my comment wrt the appraiser is less well informed in a hybrid it is meant as just what I said, the appraiser has not set foot on the property, but others in the transaction have typically been in the property ( the buyer, the seller, the RE agent )

You have some lending BG or family company involvement, you never fully disclose which colors your answers - pass-

I can't disclose we signed NDAs with the Bankers and the Russians...Lmao

 

[George Hatch]

But you recognize that hybrids are touted as cheaper and quicker. Why deny reality? Just because you and I will never do them, does not make them harmless to the 10s of thousands of residential appraisers who depend upon secondary market to make a living.

And that client is not likely to sue you. And it isn't a report for secondary market subject to FNMA "tips", nor even for loan origination from a regulated bank. It is borrowers and end users like FNMA who are turning in appraisers over nonsense. And the race card is the current soup de jour for many lawsuits.

I didn't deny that. I don't deny that the salesmen are selling the dream, nor do I deny that most appraisers who will admit to doing them are unhappy with the fees that go with those assignments. I also don't deny that appraisers get sued for errors they make and they also get sued for no good reason at all. And if we're going to to there, I also never deny that less is always less.

I don't advocate for appraisers to embrace these assignments, but neither am I going to criticize an appraiser for doing them so long as they don't engage in any misconduct in the process. If I was running short on options - which day may come - I would do such work without any hesitation at whatever fee the market will bear. The reason I haven't done SFR hybrids before is because I have options that pay better, not because I'm afraid of the legal liability,

Unlike some of you, I am not afraid of the less-than-1004 SOW. I've done it before (albeit on different property types) and I'll do it again. And I won't be worrying about getting sued at some higher rate than has already applied to all my other work over the last nearly-40 years of appraisal practice (07/1985). That IRL rate being exactly zero percent. So far.

 

[glenn walker]

How would a single fee appraiser working alone know what other appraisers were doing on inspections or in the field ?

 

[Surf Cat]

Danny wants to boast that the PDR does a better job of inspecting that traditional appraisers. That is based on their data. However, that does not alleviate the poor job of evaluation by many poorly trained or unscrupulous appraisers. I still see to this day appraisals that somehow passed all the underwriting with poorly supported adjustments, made up adjustments and adjustments that real data does not support to hit the sales price.

We've all seen these reports.... they should have been rejected and the offenders made to take continuing education to get their stuff together.... or lose their license. I remember taking my son to the DMV for his driving test to get his driver's license. We were waiting in line for our turn and there was this girl that got out of a car, head in hands crying. Obviously, she failed the test and did not get her license that day. That should have been happening to many licensed appraisers....

But the lenders accepted those poorly supported, boiler commentary, reports and are now accepting inspections from non-licensed PDC's. The Bad Apples spoiled the good ones.... the lenders "are done" with the traditional, old school appraisers and are ready to move on to the next chapter of Real Estate valuation.

 

[George Hatch]

IMO the way forward for appraisers has always been to work closer to our competency and to not cut too many corners.

 

[shrubberyvaluation]

What is not said is whether that appraiser still has accountability for the inspection and I suspect if push comes to shove that the appraiser will be sued along side the inspector and held accountable. After all, which one has E & O insurance?

Yep, say someone is refinancing, they bought the property for $500,000. Refi a year later and prices have increased. PDC under measures the property and the appraiser is stupid with the conundrum on why the comps are showing a lower value than $500,000, and the appraiser will be the one questioned if not worse, could be considered racist. Its always popular for the news to have a sensational headline like appraiser undervalues home by $100,000 or something.

 

[shrubberyvaluation]

We've all seen these reports.... they should have been rejected and the offenders made to take continuing education to get their stuff together.... or lose their license. I remember taking my son to the DMV for his driving test to get his driver's license. We were waiting in line for our turn and there was this girl that got out of a car, head in hands crying. Obviously, she failed the test and did not get her license that day. That should have been happening to many licensed appraisers....

But the lenders accepted those poorly supported, boiler commentary, reports and are now accepting inspections from non-licensed PDC's. The Bad Apples spoiled the good ones.... the lenders "are done" with the traditional, old school appraisers and are ready to move on to the next chapter of Real Estate valuation.

We are like an umpire, and everyone knows its not a strike because all the other parties involved are all on the batting team. So if you call a strike a strike, then you are at best incompetent, and at worse a racist. Now with PDC they will tell us where the ball was pitched and we make the call instead of seeing it for ourselves.

When you have bad umpires in sports at least you have people from an opposing team that don't like it and people know the rules of the game, or are more likely to know the basics. And the good umpire can call a strike a strike without being reamed by everyone.

 

[glenn walker]

We are like an umpire, and everyone knows its not a strike because all the other parties involved are all on the batting team. So if you call a strike a strike, then you are at best incompetent, and at worse a racist. Now with PDC they will tell us where the ball was pitched and we make the call instead of seeing it for ourselves.

When you have bad umpires in sports at least you have people from an opposing team that don't like it and people know the rules of the game, or are more likely to know the basics. And the good umpire can call a strike a strike without being reamed by everyone.

Until we got on time real Video and suddenly those umpires were not always as good as we had been told. Add in the
$ billion sports betting and lots of dirty deeds done dirt cheap. Lol