How many actually believe 3.6 will be fully implemented this year?

[Airstream]

Too bad. The 3.6 is bad now, but given more time, the software companies might be able to come up with a very workable product. The GSEs did not given them enough time for their programmers to get it right. Just enough time to make it barely functional. They (the GSEs) hemmed and hawed and dinked around making up their minds and getting the software companies approved when time was running out fast. Yes we all knew this was coming. But announcing something and making that something into a workable product are 2 different things.

Has anyone heard back from the lending side about how it is working for them?

I talked to a major client of mine. Spoke to a reviewer and they really haven’t given it much thought. They are in middle of merger and that is their focus. That means they haven’t thought about ordering or working with the new form in the appraisal side!! We are 3.5 months away from full implementation. I told them to be prepared for fee increases. My base fee is going to 850. They did say a number of appraisers are dropping out.

Another bank client of mine said they have to start getting things in order now, because they can’t go from zero to 100 overnight. They are supposed to start ordering 3.6. Got a text the other day and asked if I could do one. I said “I suppose.” I use Total. It was just a survey. They already agreed their fees are going to 850.

So here we are 3.5 months away and I haven’t even done one. Does anyone personally know an appraiser that has completed a 3.6? I’m at the point where I simply don’t need the stress. Maybe I just hang it up as well. My E&O and software fees come due in September. Good time to say adios.

A couple of friends that use ACI are scrapping it because ACI just isn’t ready. They have to continue working. I don’t. They will either go with Total or SFREP.

 

[Sadie]

Spoke to ACI about the problem I see being able to navigate through forms. Sometimes we dont have all the data especially with new subdivisions and we need to be able to move around it. Too many drop downs...

Don't disagree. It took them forever to get approved with Fannie. All work stops until approval happens. It sure is not a very efficient way to do things. IMO the GSE screwed this one up. Perhaps the huge staffing cuts didn't help.

 

[chad hampton]

You’re dealing with world class narcissists. They won’t admit there’s a delay until October 31.

I’ll do them. I was told it’s a reporting change only. And since it’s modernization, I assume that means they made it easier I’m sure they didn’t turn 2 meaningful pages in 30.

 

[Airstream]

I work in a rural area. There is already a big shortage of rural appraisers. I heard of one county in South Dakota where there is only 1 appraiser. I talked to an agent in a rural county I work in and they have terrible time getting houses appraised for loans to get closed. And then I got asked to drive 4 hours away to do a simple condominium in a county I worked in for years. They couldn’t get anyone to do it, and they paid me $2500. I mean this could be real a problem for lenders and real estate agents. I am surprised the NAR hasn’t stepped in.

Better part of wisdom would be the GSE’s slowing this down and giving us all a year to get acclimated and software developers get their acts together. I would probably stay in the business if they did that. BUT I do NOT want to go through a s*** show.

 

[Trihard]

I work in a rural area. There is already a big shortage of rural appraisers. I heard of one county in South Dakota where there is only 1 appraiser. I talked to an agent in a rural county I work in and they have terrible time getting houses appraised for loans to get closed. And then I got asked to drive 4 hours away to do a simple condominium in a county I worked in for years. They couldn’t get anyone to do it, and they paid me $2500. I mean this could be real a problem for lenders and real estate agents. I am surprised the NAR hasn’t stepped in.

Better part of wisdom would be the GSE’s slowing this down and giving us all a year to get acclimated and software developers get their acts together. I would probably stay in the business if they did that. BUT I do NOT want to go through a s*** show.

It's the exact opposite if there are cells of Class Valuation or True Footage staff appraisers in a market. They will sit on top of your fees like a 2,000 lb gorilla and not budge. It's funny that the lenders go to congress and complain that there are not enough appraisers. But when there is enough, they do everything possible to manipulate the appraisal fee for it to be the lowest possible.

 

[Non Sequitur]

It's the exact opposite if there are cells of Class Valuation or True Footage staff appraisers in a market. They will sit on top of your fees like a 2,000 lb gorilla and not budge. It's funny that the lenders go to congress and complain that there are not enough appraisers. But when there is enough, they do everything possible to manipulate the appraisal fee for it to be the lowest possible.

True. Here’s a Class assignment posted to Facebook yesterday, $286 for a rush;

 

[Airstream]

True. Here’s a Class assignment posted to Facebook yesterday, $286 for a rush;

View attachment 110356

THAT is insulting.

 

[gregb]

With the relatively low number of GSE appraisals, would not be surprised if appraisers compete and offer to appraise for $0 fee, just to stay occupied. Least then no income tax would be owed.

 

[Essexfenwick]

Almost all will be waivers

 

[Airstream]

So this is a Google AI search results:

Overall, about 25% to 30% of mortgage loans guaranteed by the GSEs (Fannie Mae and Freddie Mac) receive appraisal waivers. These waivers are determined using automated underwriting systems like Desktop Underwriter®. [1, 2]
Appraisal waiver rates vary by the purpose of the loan: [1]

• Purchase Loans: Generally account for the lowest waiver use. Waivers are granted on about 11% to 20% of purchase originations.
• Cash-Out Refinances: Waivers are used on roughly 18% to 25% of cash-out loans.
• No Cash-Out Refinances: Historically these have the highest waiver rate, making up over 40% to 50% of these specific transactions. [1, 2, 3, 4, 5]

Waiver shares are sensitive to mortgage interest rates and currently sit below the 50% market peak seen in 2021. Additionally, newer hybrid programs like Freddie's ACE+PDR and Fannie's Value Acceptance + Property Data capture an additional 2% to 3% of the market

Whether this is accurate or this will change I have no basis for predicting. But I do believe PDCs will increase and many appraisals will be hybrid work based upon all the job postings on Indeed.