Hybrid Appraisals

[shrubberyvaluation]

Sure, I'm concerned—and precisely why appraisers are licensed professionals regulated by state boards. If a licensed appraiser has a felony, it’s up to the state regulatory body to determine whether that individual is fit to practice. There's an actual governance structure, a disciplinary process, and a public record of enforcement actions.


Property Data Collectors, on the other hand, have no licensing, no background check requirements unless imposed by a third party like an AMC, and zero oversight at the state or federal level. If a PDC with a criminal history is discovered, there’s no board to report them to, no license to suspend, and no consequences beyond termination.


The system already has mechanisms to manage risk when it comes to appraisers. The problem is introducing unlicensed actors into a critical part of the valuation process without equivalent safeguards. Comprende?

Lets be real, who is going to pay for their background check in hopes of getting $25 PDC orders.

 

[Terrel L. Shields]

There is very detailed and specific training for property data collectors

A checklist I presume. Tell me again how this will save TIME for the lender and MONEY for the borrower....

PS- It won't.

 

[Justinjla]

Well one thing is perfectly clear: Fannie and Freddie love PDCs. Do they love appraisers? Read their comments and decide for yourself.

80% of the loans we acquire have appraisals. We just spent over 6 years and millions developing the next UAD for appraisals.

 

[shrubberyvaluation]

With all of the agents I have met there is maybe a couple that I would want as a PDC, if that. This is not to denigrate agents, they are just not trained to look for what we are, and at a fee of $25 you are not getting the most experienced.

You could stick me in a doctors office and give me a list of things to look for in patients, but I will miss things because I'm not trained to find everything.

 

[shrubberyvaluation]

80% of the loans we acquire have appraisals. We just spent over 6 years and millions developing the next UAD for appraisals.

And how does that form benefit appraisers?

 

[Mejappz]

80% of the loans we acquire have appraisals. We just spent over 6 years and millions developing the next UAD for appraisal

We spent? You mean the American taxpayer spent. You wouldn't even be in business if you weren’t bailed out. Show some humility! And criticize the white-collar criminals (the AMCs) whom the GSEs are so fond of.

 

[Mejappz]

And how does that form benefit appraisers?

It doesn’t, of course. It’s simply a more efficient tool for extracting data from the reports. The software companies actually advised them to adopt this system from the beginning, but you can't fix stupid. Not that's its going to make a difference one way or another.

 

[Terrel L. Shields]

at a fee of $25 you are not getting the most experienced.

Exactly, a good agent would spend that time generating leads. Only a newbie with few contacts would spend 2-4 hours doing a dink job.

Sure, lots of properties are ez-pz. Cookie cutter subdivision, etc. But once lender learn they can get something done cheaper there is no limit to the complexity of the property that they would assign to a hybrid. Mansion? No problem. Log cabin in the woods? No problem. Lakeside STR? No problem. Got outbuildings? No problem. The property inspector arrives and says, "Screw this. I ain't inspecting a 200-acre farm with multiple buildings for no $50. I'll just guess." Then they will send it to a CR who hasn't had a full paying job in a month. $195. Ignore the buildings - zero them out. Arm wave the land value. Arm wave any defects or obsolescence and close their eyes. The mortgage payment is due. The cruel pinch of want is beaconing.

Then the PTB will complain that "appraisers don't do a good job." Well, you get what you pay for. And why? How in L can a 2 phase appraisal be "quicker" than having the appraiser go out there? It cannot. The only reason for it, is to slash the low wages even more.

When I started the average home in this area was about $60,000. Today that average is $300,000. That means it was no financial burden on a $60k homeowner then to pay $300 but now it is outrageous to charge $1,500 for a million-dollar property let alone a $300,000 one. Never mind the homes of today are more complex - granite, tile, exotic fixtures, remote control ceiling fans, whatever. But somehow it is obscene to charge $400 for an appraisal.

I'd be happy to see appraisals eliminated if the people lending were held accountable for the losses. Not a slap on the hand, not a piddling fine. Mandatory jail time. The economic death penalty. The lender has to make the losses whole out of their own property, salary, and retirement.

 

[shrubberyvaluation]

We spent? You mean the American taxpayer spent. You wouldn't even be in business if you weren’t bailed out. Show some humility! And criticize the white-collar criminals (the AMCs) whom the GSEs are so fond of.

6 years and millions and will probably be crappy like the 1004mc. We already have UAD forms, all that would be needed are tweaks. More room for certain inputs and more clarity with some things such as the neighborhood section and the no updates in 15 years statement. Get rid of some vague certifications like the one where anyone can rely on the report.

 

[CGinMN]

80% of the loans we acquire have appraisals. We just spent over 6 years and millions developing the next UAD for appraisals.

Why do you want to collect more data points? You need PDCs and appraisal data in alignment because you want to expand the waiver program and automated review. You didn’t create new forms because you’re investing in appraiser relationships.

And just because you currently can’t do without appraisers doesn’t mean you’re not going to try your hardest to eliminate as much need for appraisals as you can going forward. That is the essence of modernization. Bifurcation and eliminating demand for appraisals through waivers = eliminating appraisers. It is your project, you don’t have to pretend otherwise. Soon you’ll say 70% get appraisals, then it’ll be 60%, and they’ll take it as far as they can go.

Even if you don’t think that will happen, it’s not in your hands. Someone will take the work you’ve done and throttle it up. It’s a matter of time and I think pretending otherwise is either disingenuous or it’s some major cope.