Hybrid Appraisals

[chad hampton]

for a hybrid appraisal, an inspection is required

 

[Tim Hicks (Texas)]

STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser’s certification in this report is subject to the following assumptions and limiting conditions:

3. The appraiser has relied on data provided by third-parties in this appraisal report. Such data may include, but is not limited to, flood maps, multiple listing real estate services, tax assessment records, public land records, satellite imagery, virtual street views, property data services, surveys, engineering reports, and property data aggregations. After examination of the data and data sources, the appraiser has used only the data he or she considers reliable. The appraiser makes no guarantees, express or implied, regarding the accuracy of this data.

So, that just makes it all better? That is pitiful. Some of us hold our appraisal licenses in higher regard than that!

As a currently licensed appraiser, why would you want to push this product? What if Fannie Mae is downsized and you are back on the streets appraising? Would that change your opinions of this product? I know, I know. Just like Danny Wiley, you need to toe the company line on these products that really do not benefit the appraiser. All it does is feature the old AMC saying, "but you will make it up in volume." But there is never any guarantee in that. That theory never holds water. Keep in mind, I don't do AMC work, but I see the pitfalls of the hybrid appraisal very clearly. I just told a portal client my fee would be higher to trust a third party or vested interest party (agent) inspection. Even it if was TC!

 

[J Grant]

I love how people use that USPAP never required an inspection and bend it to meaning now anybody can do the inspection when one is required. That’s a hell of a stretch. I no longer give a **** about USPAP, but for the first 10 editions of the book I was required to buy, it said the appraisal inspection and things like measuring the subject Property are considered examples of significant appraisal assistance. Now the unethical stakeholders probably lobby to get that removed. For a book supposedly based on ethics, they sure do compromise themselves all the time.

Actually, the unethical and profit-driven stakeholders did not get anything removed - they, using their lawyers, probed USPAP and found the grey area about significant appraisal assistance in an inspection. This is why they call it a "data collection" instead of an inspection and why they instruct the PDC collector not to provide opinions in their notes.

It is similar to how they exploited the HUD bundled fee, originally intended to cover stray small charges, into an entire industry of compensation the AMC, with huge chunks of the appraisal fee now going to the third party. Legally. Legal does not mean the same as ethical or moral or best choice of course. This is why some laws change over time to prohibit things we see as anachronistic now that used to be legal at one time -slavery was legal back in the day,

 

[J Grant]

So, that just makes it all better? That is pitiful. Some of us hold our appraisal licenses in higher regard than that!

As a currently licensed appraiser, why would you want to push this product? What if Fannie Mae is downsized and you are back on the streets appraising? Would that change your opinions of this product? I know, I know. Just like Danny Wiley, you need to toe the company line on these products that really do not benefit the appraiser. All it does is feature the old AMC saying, "but you will make it up in volume." But there is never any guarantee in that. That theory never holds water. Keep in mind, I don't do AMC work, but I see the pitfalls of the hybrid appraisal very clearly. I just told a portal client my fee would be higher to trust a third party or vested interest party (agent) inspection. Even it if was TC!

There is no volume to make it up on, except for the overworked staff appraiser - loans are finite quantity and with some usupred for no appraisal such as a WAIVER or hybprdis allowing staff or desk protein more churn an dburn in a wider geo area it further shinks the effective volume of orders.

Appraisal is not a fast food enterprise, which requires some labor-saving fry cutters that allow more meal volume if the customers can be lured in. There are a finite set of customers and demand in appraisals.

 

[djd09]

I love how people use that USPAP never required an inspection and bend it to meaning now anybody can do the inspection when one is required. That’s a hell of a stretch. I no longer give a **** about USPAP, but for the first 10 editions of the book I was required to buy, it said the appraisal inspection and things like measuring the subject Property are considered examples of significant appraisal assistance. Now the unethical stakeholders probably lobby to get that removed. For a book supposedly based on ethics, they sure do compromise themselves all the time.

tell them what state boards do when revaa flies their reps in to threaten them....probably roll over like a lap dog

 

[shrubberyvaluation]

There is a difference here. A realtor MLS is like a nurse giving a general description. A pdr is like a doctor giving a more detailed description of each part. The doctor should be more qualified to do that than the nurse is. However, FHA recently reiterated the we do an observation, not an inspection. Is this change in anticipation of the split hybrid.
A 2055 is assumed to not have been seen, with that assumption being a limiting condition. With the user knowing up front what wasn't going to be done.


Sorry, that happened with hvcc. This is just more dirt on your coffin, in case you were wondering what that sound is your hearing.

A PDC isn't even like a nurse. A PDC is like grabbing some random person off the street to to diagnose a patient, or a random person to diagnose a motor vehicle. The doctor or mechanic then can't even see the patient and/or motor vehicle and even if there is contradictory evidence they are pressured to go off the PDC.

 

[shrubberyvaluation]

, the appraiser has used only the data he or she considers reliable.

Its hard to turn my brain off from verifying the information I'm receiving. We get all sorts of information from biased sources. I know FNMA wants us to just ignore any red flags for these, but its hard. Has FNMA ever come to defense of an appraiser where the data was way off from what they received? What happens when FNMA does a buyback from a hybrid? Does the lender not go after the appraiser?

 

[djd09]

The hybrid appraisal is here. Who benefits?​

Both GSEs have plans to expand hybrid appraisals in the near term

Fannie Mae representatives said the GSE has evidence alternative appraisal approaches result in fewer instances of confirmation bias. Its appraisal modernization pilot, which used hybrid appraisals, showed an 18% point reduction in confirmation bias compared with traditional appraisals, which rely on human observations and, as such, potentially could be riddled with overt or subconscious bias. Alternative appraisals, however, rely more on objective data and an “arm’s-length” process between the appraiser and the homeowner or buyer, sometimes assisted by technology, a spokesperson for the GSE said.

The hybrid appraisal is here. Who benefits?

Freddie Mac now allows remote appraisals on some refis, but it remains to be seen if they will reduce racial bias, a key GSE policy goal.

www.housingwire.com

only appraisers with bias should perform hybrids...

 

[Mejappz]

 

[chad hampton]

If the scumbags that have been pushing these things over the years, had any integrity whatsoever, they would’ve made the case that obviously a certified or licensed appraiser should be the person doing the inspection portion of the appraisal when one is required. There’s a very deliberate reason why these people chose out of work real estate agents and Uber drivers.