GSE Waiver & Data Collection Data

[J Grant]

How much would you bet that the appraiser is still going to be sued if a lawsuit occurs and the error lies in the PDR report, not the appraiser's report. You get to go to court over your measly $200 or so fee? Great plan.

The appraiser will be sued - but the appraiser will not be sued for the stand-alone PDR report.

The appraiser will be sued if the appraisal value or other conclusion is "off" because a PDR report was relied on- it is the appraiser's name and license on the report.

 

[George Hatch]

A PDC collector and an appraiser are not doing the same things when they "inspect" a home.

The PDC collector takes notes, photos, and measures via an app. They do not make any conclusions or opinns (or if tehy do, they keep ti to themselves )

The Appraiser also takes notes and photos and measures. In addition, they make conclusions and opinions by comparing what they are observing and get a holistic picture of it, and are able to compare to the hundreds or thousands of other properties they have observed. When driving the comps and at the property, you can get information from any people who might be present who are familiar with the property and or the subdivision or condo.

Yeah, I wrote an article to this effect several years back and dwelled on the distinctions between what the PDCs do out in the field vs what appraisers do out in the field. I concluded back then that when the appraiser's SOW doesn't include physically looking at anything they actually have to do more research and analysis at their desk in order to bring themselves up to speed.

I made these points in some detail, and the opinion did get published. Nobody cared then, nobody cares now.

 

[chad hampton]

Appraisers were even willing to compromise. We said many times that we will consider accepting an appraisal inspection from another certified appraiser - we can talk about that. And we would also consider a home inspection report as a substitute for doing the field appraisal work. Both of those ideas were thrown in the trash. I will let you guys figure out the reason why

The breakfast club wants their 1 million out of work real estate agents doing these for cheap.

 

[J Grant]

Yeah, I wrote an article to this effect several years back and dwelled on the distinctions between what the PDCs do out in the field vs what appraisers do out in the field. I concluded back then that when the appraiser's SOW doesn't include physically looking at anything they actually have to do more research and analysis at their desk in order to bring themselves up to speed.

I made these points in some detail, and the opinion did get published. Nobody cared then, nobody cares now.

Some people might care - seems like hybrids are not exactly taking off

They only are efficient at large AMC:s who use staff appraisers and likely they will stay within that realm.

 

[George Hatch]

Appraisers were even willing to compromise. We said many times that we will consider accepting an appraisal inspection from another certified appraiser - we can talk about that. And we would also consider a home inspection report as a substitute for doing the field appraisal work. Both of those ideas were thrown in the trash. I will let you guys figure out the reason why

The breakfast club wants their 1 million out of work real estate agents doing these for cheap.

I'm curious what reason you think any of the parties who make these decisions would have to enter into any form of compromise or concession with appraisers. They don't even have any reason or motivation to discuss the issue with the appraisers, much less negotiate with them. If they're doing some explanation now it's only to be nice; it's not like there's anything the appraisers can say or do that will be of effect on their decision making.

Appraisers don't even matter enough to these lenders to actually argue with them.

 

[George Hatch]

Some people might care - seems like hybrids are not exactly taking off

They only are efficient at large AMC:s who use staff appraisers and likely they will stay within that realm.

I don't know that they'll ever be economically viable except if they run significantly short on appraiser hours. If that happens the pay might increase.

Actually, if I was an AMC right now I'd be putting some consideration into the potential long term effects of artificial intelligence on their business model. The generic acts of appraiser engagement, accounting, communicating and such are all clerical and rote in nature. It seems to me that what AMCs do is more exposed to planned obsolescence than some of the other elements of the mortgage business. They might be able to buy a few more years for themselves by incorporating AI agents into their operations. But rust never sleeps, and neither does technology.

The cheapest AMC a lender can use is the one they don't need/use. And if one lender can save a dollar by automating appraisal management then their competitors are faced with the choice of either doing the same or ceding the advantage.

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Having said that, perhaps I should expect the AMCs will now come on this forum to accuse me of being a shill for the techbros because I'm taking note of the problems and challenges the AMCs will likely face within the next few years. That seems to be the type of reaction that prevails here.

 

[Surf Cat]

I'm not weighing in on the stats because I don't know. I'm only talking about what the appraiser is actually doing, vs what they aren't doing.

Then why not just give "us" the damn checklist then? We are trainable.... the powers that be gave us the uad with q&c ratings... we adopted. Check these boxes, take these photos. Let's call it the 1004H form. This way, the lenders get the form that is "so much better" than what traditional appraisers do. PLUS, the appraiser actually gets to check the subject's neighborhood location and attributes, check for externalities, etc. The lenders get the licensed & insured appraiser to do the inspection....not some random unlicensed person....

Another benefit would be that the lenders can order the 1004H ONLY and Garner the experience of the licensed, insured appraiser to produce the property data. Wow...win-win! NOT.

Rhetorical questions and thoughts.... no need to answer. It's so evident of what's going on.

 

[George Hatch]

I don't know, but I can think of at least a couple off-label reasons they might have

• the hourly rate for what the PDCs do vs what the appraisers do is different, particularly at scale
• if/when the number of available appraiser hours drops too low then they can generate more appraisals per day using desktops than using conventional 1004s
• turn time. 2 PDCs feeding one appraiser might be able to generate 4 appraisals on the same day they were inspected
• Using PDCs puts the ownership of the data they collect squarely with whichever AMC or lender is paying them, not with the appraisers
• possibly other motivations

If you were a banker and were trying to get ahead you might have a number of different reasons for trying to leverage the limited supply of appraiser productivity to your advantage. Reasons which don't take into consideration the well being of appraisers.

 

[chad hampton]

I'm curious what reason you think any of the parties who make these decisions would have to enter into any form of compromise or concession with appraisers. They don't even have any reason or motivation to discuss the issue with the appraisers, much less negotiate with them. If they're doing some explanation now it's only to be nice; it's not like there's anything the appraisers can say or do that will be of effect on their decision making.

Appraisers don't even matter enough to these lenders to actually argue with them.

Because, state legislatures make appraisal laws and appraisal boards enforce those laws. I’m interested into why you think the users of appraisal services should be the ones dictating laws and regulations?

I mean, I guess that’s how we do things in this country, we let oil companies write energy laws, and we let the abusers of real estate right real estate laws. I’m just saying it’s not the moral and ethical thing to do. But you always argue on behalf of the unethical so I get it.

And if the GsEs and their breakfast club want laws changed, they should go through the proper channels to change them. But that’s harder than intimidation and threats of lawsuits.

 

[Surf Cat]

If you were a banker and were trying to get ahead you might have a number of different reasons for trying to leverage the limited supply of appraiser productivity.

Dang....the graph ran out of room...