Hybrid Appraisals

[Mejappz]

Nobody is doing a 1004 hybrid appraisal for GSE origination for a $75 fee.

They are being offered at $120.00 with a 24-hour turnaround. However, you have not addressed how these are being unfairly distributed among staff appraisers, raising serious concerns about potential violations of antitrust laws.

 

[glenn walker]

Apparently the GSEs aren’t even telling MBS investors the type of appraisal (desktop, hybrid, traditional) that was performed, just whether or not there was an appraisal. I can only think of one reason why they would withhold this information.

Because the GSEs are not investors their basically semi sovereign sinking funds insuring the investor using tax payer funds.

The private MBS funds and portfolio held loans have higher rates than ones sold to GSEs but today risk is highest by rate changes not individual loans or property values. Therefore the value of residential appraisals in risk analysis has dropped significantly today where it may rank at near the bottom of the risk ladders matrix.

Also when physical values drop on real estate most appraisals are worthless because after a 10% decline it's underwater anyways if they have to foreclose. That's why the newer models you don't foreclose if you can re work the loans terms and payments.

 

[Terrel L. Shields]

Our state has regs which prohibit misrepresentation as a licensed/certified appraiser.

Like anyone gives a ****. And 10 of 9 homeowners will think the inspector works for the appraiser or both work for the bank as bank employees.

I just noticed an ad for some jake leg outfit called houzeo or something like that. Never saw so many lies packed in one "infomercial" in my life.

The appraiser is paid by the borrower. The average appraisal fee in Arkansas is $600. Drive bys are 100-150. Desktops $75-200. WTF? Multi-family appraisals are $50 more than the 1004. "The appraisal can get rejected in case the property doesn’t match the appraised value."​

The dam business is being picked clean by parties who do not have an appraisal license. The people with a dog in the fight are starving and everyone else is thriving. If we were a horse, they'd put us out of our misery and just shoot us.

 

[djd09]

lets say we were at war with china...would you trust the russians to do our scouting absolutely not ...

 

[Mejappz]

lets say we were at war with china...would you trust the russians to do our scouting absolutely not View attachment 98738...

The new gaslighter has become even more potent.

 

[George Hatch]

They are being offered at $120.00 with a 24-hour turnaround. However, you have not addressed how these are being unfairly distributed among staff appraisers, raising serious concerns about potential violations of antitrust laws.

Employing appraisers and even commingling them with PDC employees instead of engaging outside contractors is not a violation of any law.

 

[djd09]

The new gaslighter has become even more potent.

Anyone experience working for Mueller Reports?​

I just had a virtual interview with Mueller Reports and apparently passed the first round. The interviewer said I would receive an email later with instructions to take an exam.

Does anyone have any experience with this company? Is it a scam of sorts? If not a scam, is it decent to work for the company? Any advice would be appreciated.

"I worked for them for over two years, and it was the worst job I've ever had in two decades in the workforce. The job itself is easy. But you put hundreds of miles on your personal vehicle a day, you're micromanaged by people that have literally never done your job but insist on telling you ways to do it better (but don't know how), there is zero training. You're not reimbursed for equipment they USED to provide to you, but now require you to purchase yourself. They dangle a "bonus" if you're fast and efficient enough, that I've never heard of anyone receiving.

The upper management rotates on a 90 day basis. Not a single week went by that we didn't recieve a new email introducing a new executive to replace the previous one that got out ASAP.

We were lied to during Covid lockdowns and told we were essential, and when asked for documentation to provide as proof of being an essential employee during quarantines, they told us to just Google one and print it out, and we'd be fine.

First day I was told "You WILL be chased by dogs. Learn to run, or jump fences." My second day on the job I was bitten by a pitbull. They don't contact the people whose homes you're inspecting, so more than once I had someone pull a gun on me, understandably, because a complete stranger was wandering through their yard taking pictures of their house. The company claimed every time they made contact, but they never actually had. The person who referred me to the company had their leg shredded by a pitbull during an inspection, and the companies response was "You don't have insurance, you know that, right?" and not to worry, they would make sure that the pitbull was put down.

I have hours and hours worth of horror stories from that hellscape. They won't be in business for much longer."

...

 

[CGinMN]

It would have to be a hybrid appraisal team. A couple of runners being the pdcs whom post the photos in Dropbox....a couple of report writers with appraisal scripts, typing up the reports, working in conjunction with a signer or two picking 3-4 comps to input into said hybrids and signing reports. Churn and burn, then profit split.

Appraisers don’t get to control the data collection. It’s really just inputting data into a report + analysis.

Let's say you are an established solo appraiser, and you're doing 5/week at an average fee of $550. This means 260 per year at $550 = $143,000. Your main clients are Main Street Bank and Regional AMC with the occasional job from Mr. Realtor and Ms. Divorce Attorney. You've got it pretty good. Don't get me wrong, 2021 was way better, but you're not about to make any changes to your business model. You have a membership to the local golf club, and you take Fridays off whenever you want. What incentive do you have to add hybrids to the menu?

Now let's say you're a noob solo appraiser and you've been averaging 3/week at $367. This means you're making $57,000 per year, barely scraping by. Your main client is Take-It-Or-Leave-It AMC and their competitor Compete-Against-Our-Staff AMC. You're living in a slummy Chicago studio apartment, and in your downtime, you're reading The Conquest of Bread while you mull over your future prospects under late-stage American capitalism. You might have a lot more incentive to add hybrids to the menu.

The problem is most appraisers want to be Group A, not Group B. The only way to be a part of Group A while doing hybrids is by getting a volume and fee guarantee. If I had a 1-year contract for 1,300 orders at $400 per report, I would hire 1 or 2 typists and just work over their shoulders, and we would crank out 5-6 reports/day. I would be doing $500,000+ in gross receipts, paying my assistants $75,000 annually each, with another $24,000 in office space, and I would net $300,000. You couldn't incentivize me to build this kind of higher-risk business model with the day-in-day-out grid without that kind of compensation. This could probably never happen because there aren't many lenders that can offer this kind of volume in a tight enough radius, and even if they could AMCs stand in the way. AMCs want to take the gains of the efficiency without adequately compensating appraisers for the grind. They want to get paid for managing the PDC, managing the appraisal, and managing their staff hybrid appraiser. That's taking 3 cuts. AMC simply are simply not offering enough efficiency or incentive.

 

[glenn walker]

Yeah at $20 to $25 per hour lenders and AMCs could build back staff that do all their desktops and make money.

The independent fee guys would only be used on the hard assignments and rural.

That makes a lot of sense in a business model where they can still collect full fees from their borrowers for appraisal or offer no appraisal fee and just back it into their yield spread premiums. There may be a lot of jobs to be employee's later this year if a new refinance boom hits.

They can still be employees and work virtually from home office. That's how many underwriters are employed now by major lenders.

 

[Surf Cat]

Employing appraisers and even commingling them with PDC employees instead of engaging outside contractors is not a violation of any law.

Excellent, so we as appraisers whom are licensed and insured should be able to be hired by mortgage brokers, homeowners or anyone else who's in need of our services...... we don't need to be co-mingled with AMCs at all.