Hybrid Appraisals

[Justinjla]

Danny had indicated in an earlier thread shortly after this hybridization project was announced that the GSE's would insist that the valuation portion be performed by someone who was geographically competent in the subject market which they were appraising in. Can you tell us if that's still the case? Or has that criteria been expanded to anybody who's licensed in the state that the subject is located in?

I agree with Danny. That is still the case.

 

[CGinMN]

The extent of their insistence is a certification. Time will tell whether they actually begin to enforce it. Many of their buddies at the national firms use the out-of-market-appraiser hybrid model on traditional 1004s and it seems to be encouraged.

 

[NC Appraising]

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

Please do all of us a favor and split up the % for waivers, waivers with pcr, desktop, hybrids and traditional.

In my opinion it is misleading to still group all appraisals together as it does not align with fannie maes flow chart.

You cannot lump hybrids with traditional appraisals. The data or the % needs to be separated. I have feeling that the % of hybrids will be greatly increasing in the next months and years.

 

[chad hampton]

That’s interesting because five years ago I heard two separate Revaa representatives at a state board meeting talk about how there’s no such thing as geographic competency, and that if there companies can provide appraisers MLS access all over the country and they can obtain state licenses for them all over the country they should be able to appraise all over the country.

In typical snake oil salesman fashion, they sold it as a good thing for appraisers, you could retire to Florida and appraise all over the country.

As I’ve stated many times , in my state, I’m not permitted to do these because I’m not personally and actively supervising the person who does the appraisal inspection. I try my best to follow state laws. Unlike some who bend and twist them or outright ignore them. I can tell you this, revaa won’t be flying in people to defend you The way they do unethical AMCs. So be careful taking advice from these people.

 

[NC Appraising]

The extent of their insistence is a certification. Time will tell whether they actually begin to enforce it. Many of their buddies at the national firms use the out-of-market-appraiser hybrid model on traditional 1004s and it seems to be encouraged.

Can you explain to me why I am receiving emails on a weekly basis from the national appraisal firms?

Why I am receiving emails almost every other month that an AMC has purchased their competitors?

Why are national home inspection firms buying Aloft, which is appraisal firm?

The mortgage business is at historic lows....

Why are there appraisers on this forum and other forums wondering why they are only getting the complex or value issue appraisals?

Now I'm a part time plumber, not that bright...but shet doesn't add up.

Mortgage Applications - Charts and Data

The Weekly Mortgage Applications Survey contains 15 indices covering home loan application activity for fixed rate, adjustable rate, conventional and government loans for home purchases and refinances.

www.mortgagenewsdaily.com

 

[Bobby Bucks]

Real world facts to consider about hybrids. Forget that technically they may be USPAP compliant, even though we're talking camels passing through the eye of a needle.

The pseudo notables won’t touch one with a ten foot pole, but they expect you to.

Facebook has more than one group of the “elite” hybrid specialists. If you’re curious, join one on a spy mission and prepare to be both shocked and entertained, the appraisers performing them are the absolute bottom of the barrel.

If hybrids are so wonderful, so financially rewarding and low risk, why are certain AMCs constantly BEGGING appraisers to do them? How many of you receive email solicitations from the sleaziest AMCs telling you it’s time get on board before it’s too late, this is the future, etc? Lastly, you’re being indirectly begged to perform them on this thread.

 

[DWiley]

And how does that form benefit appraisers?

I think that once appraisers get past the learning curve that any new system would entail they will love the new UAD. Just look at the samples that have been posted and compare those reports to the reports we have today. No more unorganized 10 page text addenda - all text will be in the relevant section of the report. That alone will reduce revisions.

Also, no more flipping back and forth to find a relevant photo. Photos will be imbedded in the logical place within the report rather than all being stuck at the end.

Acknowledging that there will be a learning curve, once the dust settles I think revision requests ill go way down just from eliminating the "easter egg hunt" that results from the current forms structure.

Client orders an appraisal thinking it is a condo, and report is delivered on the condo form - but turns out it isn't really a condo. In the new UAD there will be no need to type a completely new report starting from scratch.

 

[Tim Hicks (Texas)]

And how to you develop those opinions when doing a proposed home? Do you take the plans/specs out to the site and develop those opinions there? No. You read the plans and specs, and from that info you develop an opinion about the proper quality rating, while sitting in your office, no? Plans/specs is the original hybrid appraisal.

The fact that you have historically conducted two activities while on site (collecting data and forming opinions based on that data) does not mean those things have to be developed on site or at the same time. And what about all the third party data on the subject you use now? And all the third party data you use for the comps? If you truly believe what you post about assistance, have you been citing the tax office as having provided assistance all these years? And do you cite the listing agent for the comps? If you have not been citing those as assistance, then it makes your claim that collecting data on the subject is assistance seem a little disingenuous.

So, lets just make it all dependent on third parties? What a sham. You know as well as I do that we have to dissect the third party information we already use and investigate the validity of them. The inspection was the one part we could hang our hat on for sure.

 

[Tim Hicks (Texas)]

I think that once appraisers get past the learning curve that any new system would entail they will love the new UAD. Just look at the samples that have been posted and compare those reports to the reports we have today. No more unorganized 10 page text addenda - all text will be in the relevant section of the report. That alone will reduce revisions.

Also, no more flipping back and forth to find a relevant photo. Photos will be imbedded in the logical place within the report rather than all being stuck at the end.

Acknowledging that there will be a learning curve, once the dust settles I think revision requests ill go way down just from eliminating the "easter egg hunt" that results from the current forms structure.

Client orders an appraisal thinking it is a condo, and report is delivered on the condo form - but turns out it isn't really a condo. In the new UAD there will be no need to type a completely new report starting from scratch.

You are kidding yourself if you think it is going to improve the reading skills of processors and underwriters. We get revision requests on things covered on the form. Not only on the form, but things covered in the first two sections of the URAR. They haven't even had to time to get lost in reading the report and they are asking for things already covered.

 

[CGinMN]

Can you explain to me why I am receiving emails on a weekly basis from the national appraisal firms?

Why I am receiving emails almost every other month that an AMC has purchased their competitors?

Why are national home inspection firms buying Aloft, which is appraisal firm?

The mortgage business is at historic lows....

Why are there appraisers on this forum and other forums wondering why they are only getting the complex or value issue appraisals?

Now I'm a part time plumber, not that bright...but shet doesn't add up.

Mortgage Applications - Charts and Data

The Weekly Mortgage Applications Survey contains 15 indices covering home loan application activity for fixed rate, adjustable rate, conventional and government loans for home purchases and refinances.

www.mortgagenewsdaily.com

I don’t know enough about any of this. Generally companies in this sector might be under distress and that’s a good time to make a cheap strategic acquisition. Same thing for these big national appraisal mills. Some of their models will always be under distress because nobody can do 6/day forever and remain sane, so they will require a constant inflow of appraisers to replace the ones that left. Recruiting is a full time effort. It is why they recruit using slogans like “do what is necessary, roll up your sleeves, and embrace the suck.” You need to find appraisers who are constantly willing to be degraded. No offense to anyone who is in that position you have to do what’s right for you and your family.