Hybrid appraisal report

[Terrel L. Shields]

I'd be willing to be an unlicensed PDC....

what about a bank evaluator. Don't need a license for that do you? So, you do in-house evals for community bank(s) and charge about 2/3 a regular fee. I know several people who are doing that - a couple as employees of the bank and a few as independents.

 

[shrubberyvaluation]

I believe we'd all be willing to be pdc's. Just not for $20 to $50 bucks....

Shoot..... during the mortgage broker days, I'd show up to the subject property for a confirmed appt. and the homeowners were MIA.... I'd get a hundred bucks for my troubles.

From my understanding, the PDC process is quite extensive in regards to the number of photographs, checklist, measuring, Etc. That's right up our alley. But not for $20 bucks.

My mentor when he was doing these stated that nearly every single measurement by these Uber drivers didn't even come close to what was stated on the property profile. He "had to" per the AMC utilize the measurement provided by The Uber driver.... talk about bass aackwards....

And then what happens when someone is refinancing. They bought the house a year ago and prices have increased, but the appraisal shows lower because of faulty measurements.

 

[Surf Cat]

And then what happens when someone is refinancing. They bought the house a year ago and prices have increased, but the appraisal shows lower because of faulty measurements.

That's on the AMC, lender for accepting the Uber driver's measurements. One thing for sure, they can't go after the PDC with no license and E&O insurance. They'd probably just waive it so as not to be exposed for their bone head decision.

 

[Surf Cat]

what about a bank evaluator. Don't need a license for that do you? So, you do in-house evals for community bank(s) and charge about 2/3 a regular fee. I know several people who are doing that - a couple as employees of the bank and a few as independents.

what forms do Bank evaluators utilize? In-house proprietary software? Or do they do a narrative?

 

[ucbruin]

Wait.....you wouldn't go out to da hood for $50 bucks?

I live in the hood....

 

[alebrewer]

There is a fundamental difference in utilizing 3rd party pictures for comps vs the subject. Comp pics from agents are the best possible choice. Subject pics from a 3rd party are NOT the best possible choice. The comps do have the closed (and hopefully) verified sales prices to back up what is shown in the pictures.

But I wasn't talking about using MLS data for comps - appraisers are quite ok using MLS data for subject condition on a 2055, but not for using a PDC for a hybrid. Makes no sense to me.

 

[Dublin ohio]

Fannie has requirements to be an acceptable property data collector. As far as collectors for proprietary products. Who knows.

From Fannie

Lender responsibilities In transactions involving property data collection,

the lender is responsible for verifying and having the ability to demonstrate that the data collectors are vetted through an annual background check, are professionally trained, and possess the essential knowledge to competently complete the property data collection,

ensuring that the data collectors are trained to comply with fair lending laws and deliver accurate results unaffected by personal biases,

compliance with the Property Data Collector Independence Requirements,

selection of the property data collector (see Selling Guide B4-1.4-11, Value Acceptance + Property Data),

successful submission of the data to Fannie Mae’s Property Data API prior to the note date,

continually evaluating the property data collector’s work through their quality control process,

and delivering the loan with Special Feature Code 774.


Here is a link to the Fannie Property Data Collector Used Guide. Looks like they require a lot of detail and numerous photos. Wonder how many appraiser's inspection notes are that detailed

https://singlefamily.fanniemae.com/media/36481/display

 

[J Grant]

But I wasn't talking about using MLS data for comps - appraisers are quite ok using MLS data for subject condition on a 2055, but not for using a PDC for a hybrid. Makes no sense to me.

I don;t thinks appraisers were that okay using MLS data for subjects in a driveby, but they accepted it as a reality, because typically, a drive by was ordered either due to no access, such as a pre forclusoure or retrospective review, or else a lightweight use like an equity line of credit.

The hybrid appraisals are used for origination loans, and typically, there is access into the property- but the product uses a CDC collection instead of the appraiser doing their own inspection. .

 

[Surf Cat]

But I wasn't talking about using MLS data for comps - appraisers are quite ok using MLS data for subject condition on a 2055, but not for using a PDC for a hybrid. Makes no sense to me.

But at least with a 2055, you drove out there and looked at the subject curbside. Same with the comps.

Many times when I would pull up to a comp, I'd think to myself "no wonder it's been on the market for 125 days" or "wow, no wonder it was only 3 DOM with multiple offers and went over list".

With a hybrid, your chained to the desk and solely relying on The PDC's photos and the MLS for the comp photos.

Driving out and inspecting the subject and the comparables, even curbside, makes a big difference imo.

Sure, I can be in the ballpark sight unseen. But to opin at the top of the range of the gross sales prices and the adjusted price range..... I think you're sticking your head above the crowd for someone to throw a rock at.

But what do I know. I'm just one of the old school dinosaurs the powers that be want out of the way....

 

[Terrel L. Shields]

what forms do Bank evaluators utilize?

The ones I've seen are basically narrative - about 5-10 pages.

https://www.occ.gov/news-issuances/federal-register/2010/75fr77450.pdf

1. III. Evaluation Content An evaluation should contain sufficient information detailing the analysis, assumptions, and conclusions to support the credit decision. An evaluation’s content should be documented in the credit file or reproducible. The evaluation should, at a minimum:
   • Identify the location of the property.
   • Provide a description of the property and its current and projected use.
   • Provide an estimate of the property’s market value in its actual physical condition, use and zoning designation as of the effective date of the evaluation (that is, the date that the analysis was completed), with any limiting conditions.
   • Describe the method(s) the institution used to confirm the property’s actual physical condition and the extent to which an inspection was performed.
   • Describe the analysis that was performed and the supporting information that was used in valuing the property.
   • Describe the supplemental information that was considered when using an analytical method or technological tool.
   • Indicate all source(s) of information used in the analysis, as applicable, to value the property, including:
   
   Æ External data sources (such as market sales databases and public tax and land records);
   Æ Property-specific data (such as previous sales data for the subject property, tax assessment data, and comparable sales information);
   Æ Evidence of a property inspection;
   Æ Photos of the property;
   Æ Description of the neighborhood; or
   Æ Local market conditions.
   
   • Include information on the preparer when an evaluation is performed by a person, such as the name and contact information, and signature (electronic or other legally permissible signature) of the preparer.
   
   (See Appendix B, Evaluations Based on Analytical Methods or Technological Tools, for guidance on the appropriate use of analytical methods and technological tools for developing an evaluation.)

It is a simple task to create a word template document or even use Excel or a database program and fill in the blanks.