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Housingwire Interview With The Ceo Of FNMA

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azbassman21

Junior Member
Joined
Apr 1, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
My buddy sent this article to me this morning. Interesting Fannie now aims to reduce our fees, and put us in the office full time, reviewing someone else's inspection and observations. This is in line with the products several AMCs have been blasting out recently, which will essentially bifurcate the appraisal process and reduce our fee to $50-$75 to for our signature and to assume liability.

https://www.housingwire.com/article...tm_campaign=housingwire#.WYM8aZ1JLks.facebook
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
My buddy sent this article to me this morning. Interesting Fannie now aims to reduce our fees, and put us in the office full time, reviewing someone else's inspection and observations. This is in line with the products several AMCs have been blasting out recently, which will essentially bifurcate the appraisal process and reduce our fee to $50-$75 to for our signature and to assume liability.

https://www.housingwire.com/article...tm_campaign=housingwire#.WYM8aZ1JLks.facebook
Where in the referenced article does it say anything about Fannie trying to reduce appraiser's fees? Also, if someone else does the field inspection and an appraiser completes the appraisal report without having to personally to do the field inspection (BTW, this already can be done under the GSE existing system using a trainee although many lenders won't accept trainee only inspections), is it not likely that the appraiser could complete more appraisal reports in the same amount of time so even if the appraiser is paid somewhat less per report, it is possible that the appraiser could make just as much money or possibly even more than if he is out in the field doing what is really pretty low skilled work such as driving comps, inspecting the property, etc?

The real skill in appraising is in doing the market analysis and writing a clear and credible report that actually provides strong support for the appraiser's opinion of value, not the relatively low skilled work of doing appraisal property inspections and driving the comps, etc. I am willing to bet that some really smart appraisers will end up adapting well to the coming changes and making more money than they ever have while other appraisers will sit around and moan about how they are getting screwed and how things should go back to the way they were prior to the HVCC, etc. and will end up losing out as they are unable or unwilling to adapt to the new realities of the appraisal marketplace.
 

azbassman21

Junior Member
Joined
Apr 1, 2011
Professional Status
Certified Residential Appraiser
State
Arizona
Where in the referenced article does it say anything about Fannie trying to reduce appraiser's fees? Also, if someone else does the field inspection and an appraiser completes the appraisal report without having to personally to do the field inspection (BTW, this already can be done under the GSE existing system using a trainee although many lenders won't accept trainee only inspections), is it not likely that the appraiser could complete more appraisal reports in the same amount of time so even if the appraiser is paid somewhat less per report, it is possible that the appraiser could make just as much money or possibly even more than if he is out in the field doing what is really pretty low skilled work such as driving comps, inspecting the property, etc?

The real skill in appraising is in doing the market analysis and writing a clear and credible report that actually provides strong support for the appraiser's opinion of value, not the relatively low skilled work of doing appraisal property inspections and driving the comps, etc. I am willing to bet that some really smart appraisers will end up adapting well to the coming changes and making more money than they ever have while other appraisers will sit around and moan about how they are getting screwed and how things should go back to the way they were prior to the HVCC, etc. and will end up losing out as they are unable or unwilling to adapt to the new realities of the appraisal marketplace.

"By speeding up the appraisal process, Fannie Mae believes it can significantly improve efficiencies in the lending experience for homebuyers and maybe reduce some of the fixed costs.

“It’s a different ecosystem, we need to reduce costs for lenders, as well,” he said."

What does this mean to you? I agree, it's all about adapting, and with new rules and laws come opportunities to make money with different processes, but do you think this is an attempt to alleviate the burden of having to inspect the property, or to increase turn times, and reduce the costs of the appraisal by not requiring as much field time?

I agree with you that there are many who will adapt, and some that won't, and the ones who do will find a way to make it profitable. Shoot, if they say we don't have to complete the inspections and can have someone else drive the comparable sales (which they are supposedly going to require original photos and nothing else here very soon) and complete the inspection, there will definitely be an opportunity to capitalize on more appraisals. It's just interesting that FNMA, who in a meeting with their appraisers stressed the importance of "boots on the ground" have now retracted and are trying to find ways to minimize the appraisal process.
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
Yes, we shouldn't fret. Gov't along with lenders pushing the dollars can't continue to screw up the "appraisal marketplace"
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Yes, we shouldn't fret. Gov't along with lenders pushing the dollars can't continue to screw up the "appraisal marketplace"
I am sure that if appraisers fret or complain long enough, the good 'ol days of loan officers and mortgage brokers ordering appraisals will be restored. Heck, they will probably even do away with the UAD, too. LOL
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
Appraisers have been very adaptive and that will continue to be necessary. Many seem to ignore what is actually coming and that is the appraisal inspection will change along with fees. I've viewed a few intended user, limited sow reports with appraisers NC certified from Nevada with a local realtor providing the exterior visual of subject and comps. Claims to be USPAP Compliant. Was not worth most likely $80 the lender paid, but it suited their purpose
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
I am sure that if appraisers fret or complain long enough, the good 'ol days of loan officers and mortgage brokers ordering appraisals will be restored. Heck, they will probably even do away with the UAD, too. LOL
You are correct Tim, those with the gold make the rules. Glad we have your support
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Appraisers have been very adaptive and that will continue to be necessary. Many seem to ignore what is actually coming and that is the appraisal inspection will change along with fees. I've viewed a few intended user, limited sow reports with appraisers NC certified from Nevada with a local realtor providing the exterior visual of subject and comps. Claims to be USPAP Compliant. Was not worth most likely $80 the lender paid, but it suited their purpose
I don't believe that the GSE's are planning to utilize the type of reports that you describe for anything.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Why would anyone care what HW prints, after their article with quoted statements that the FTC would not grant a stay to LA,

The day before the FTC granted a stay to LA.

If you chose to accept propaganda.................................................


.
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
I don't believe that the GSE's are planning to utilize the type of reports that you describe for anything.
They may not use the report but they are backing the loans right now
 
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