Hybrid and Desktop Inspectors

[cstu11]

If people doing inspections for appraisal purpose get licensed, fine by me ! Then USPAP will have to decide if what they are doing falls or does not fall under USPAP,

I would rather have the inspectors licensed . Either an inspection is a skill, or it is not. Either a mistake made during an inspection has a ramification, or it does not. Let inspectors for appraisals have some form of basic license where they do not need to be trainees with goal of becoming appraiser . Plenty of people would want that limited role and be happy with it.

What I see with these inspectors is the lenders /AMC's doing the same thing as with appraisers - trying to get the work done cheap, but still expecting quality and reliability Expecting a person to inspect a house for an appraisal for a loan of $400,000, and paying that inspector person $75 is absurd.

If inspecting is a skill, and it needs reliable people doing it, then pay the inspector properly $150- $200 for each one., Of course is the appraiser also gets paid properly for their end it will not be cheap to get an appraisal done that uses an outside inspector. So what ?.

This obsession with cheap is screwing up the appraisal profession and screwing up valuations and now screwing up inspections, A consumer takes out a home loan once every 3-10 years, and some less than that. Since they rarely do it, whether they pay $100 or $200 more or less is not going to make a difference to their financial well being.

The lack of consistency around inspections makes no sense . If a borrower puts down more $ an inspection is not needed, but if they put down less, inspection is needed - on the same house !!

If an inspection and driving the comps is suddenly not important, then let the appraiser hire a person for those tasks, and drop driving the comps as a requirement to speed things up, an appraiser can decide on a case by case basis if they need to drive a comp.

Let's say the inspector gets $150 and the appraiser $350, now the borrower is paying $500 for a lesser product (in my opinion).

Perhaps they can avoid paying rush fees since presumably the appraiser has agreed to complete them in 48 hours after receiving the inspection data.

The guidance for driving comps is confusing - is it required to achieve credible results or not? The LTV has no bearing on that.

 

[NC Appraising]

From a AMC:

The Uniform Residential Appraisal Report (Desktop) (1004 Desktop / 70D) will be utilized for certain purchase transactions of one-unit principal residences with LTV ratios less than or equal to 90%. For eligible transactions, DU will issue a message informing the lender they can choose to obtain an appraisal reported on Form 1004 Desktop.
The minimum scope of work for Form 1004 Desktop does not include an interior and exterior on-site physical inspection of the subject property or comparable sales by the appraiser; instead, the appraiser relies on data obtained from alternative sources to identify property characteristics and condition. Form 1004 Desktop requires the use of a floor plan in addition to other exhibits required for traditional appraisals. Form 1004 Desktop should adhere to the UAD specification for Form 1004 and must be submitted through the Uniform Collateral Data Portal®.

zzz has contracted with a third-party resource to provide the floorplan and date/geocode labeled interior and exterior photos of the property. This information will be uploaded as supplemental data to assist in meeting the requirements below.
The appraiser is not required to physically inspect the subject property or view the comparable sales, but the GSEs do require that the appraiser obtain adequate verifiable information for credible assignment results to complete the assignment.
Highlights of the Desktop program:

• Only SFR Purchase transactions (no condos, manufactured housing)
• Must be completed on the 1004 Desktop / 70D Form
• Appraiser is not required to inspect for Subject or Comparable Sales
• Must verify all information obtained from any source with a financial interest from a disinterested source
• Must include a floorplan with interior walls. zzz will provide the floorplan from a third-party vendor. The appraiser can obtain the floorplan by other sources if available. It does not have to meet ANSI standards.
• Minimum subject photographs of the front, rear, and street scene in addition to the kitchen, all bathrooms, and the main living area of the property (same as a standard 1004).
• Must also include comparable sale photos
• All photos can be non-original (MLS, Internet, third party data provided by zzz)

 

[TerryRohrer]

From a AMC:

The Uniform Residential Appraisal Report (Desktop) (1004 Desktop / 70D) will be utilized for certain purchase transactions of one-unit principal residences with LTV ratios less than or equal to 90%. For eligible transactions, DU will issue a message informing the lender they can choose to obtain an appraisal reported on Form 1004 Desktop.
The minimum scope of work for Form 1004 Desktop does not include an interior and exterior on-site physical inspection of the subject property or comparable sales by the appraiser; instead, the appraiser relies on data obtained from alternative sources to identify property characteristics and condition. Form 1004 Desktop requires the use of a floor plan in addition to other exhibits required for traditional appraisals. Form 1004 Desktop should adhere to the UAD specification for Form 1004 and must be submitted through the Uniform Collateral Data Portal®.

zzz has contracted with a third-party resource to provide the floorplan and date/geocode labeled interior and exterior photos of the property. This information will be uploaded as supplemental data to assist in meeting the requirements below.
The appraiser is not required to physically inspect the subject property or view the comparable sales, but the GSEs do require that the appraiser obtain adequate verifiable information for credible assignment results to complete the assignment.
Highlights of the Desktop program:

• Only SFR Purchase transactions (no condos, manufactured housing)
• Must be completed on the 1004 Desktop / 70D Form
• Appraiser is not required to inspect for Subject or Comparable Sales
• Must verify all information obtained from any source with a financial interest from a disinterested source
• Must include a floorplan with interior walls. zzz will provide the floorplan from a third-party vendor. The appraiser can obtain the floorplan by other sources if available. It does not have to meet ANSI standards.
• Minimum subject photographs of the front, rear, and street scene in addition to the kitchen, all bathrooms, and the main living area of the property (same as a standard 1004).
• Must also include comparable sale photos
• All photos can be non-original (MLS, Internet, third party data provided by zzz)

I received the same and sent this question in reply:

"Since the AMC, along with the lender, the agents, and the buyer and seller all have a financial interest in the sale or financing of the subject property, and FNMA requires that any information received from any party having a financial interest in the transaction must be verified with a disinterested source, who are you proposing that an appraiser contact to provide this information that you will be providing?"

No reply.

 

[Non Sequitur]

Here's the bottom line: AMCs captured the market and control who gets the assignments, salute the flag or move along. Want to change things? Remove their control of assignments, push for GSE/lender origination to be handled like the VA appraisal ordering system. If they can't control market share AMCs will stop investing millions in an effort to box us into a cubicle.

 

[Terrel L. Shields]

Legal Experts on floor plans?

I used to draft in an engineering department...and they wouldn't let me do a "floor plan" by myself. That was the engineer's job to oversee. A 'floor sketch' is ill-defined as a "floor plan' I would venture.