Hybrid Appraisals

[George Hatch]

Alls I'm saying about the conduct of the PDCs is that I wouldn't expect them to always get it right. Mistakes and deliberate misrepresentations are bound to occur, whether seldom or often. Besides that, what some borrower hears isn't always what the appraiser or other party actually said. I've been misquoted by a seller or borrower before and I'm sure everyone else has, too.

 

[chad hampton]

There’s only one reason a bank sent somebody out to the house for evaluation of the collateral. Of course they’re out there for appraisal purposes. They’re performing an appraisal service.

I wish everyone in this profession would stop with the word smithing and mental gymnastics.

You go to a bank for a loan, the bank sends somebody out to check out your house to give an opinion of value. The only reason somebody would come to your house would be to do an home inspection or an appraisal. Both both of which require a license.

It only becomes complicated when the scammers get involved.

 

[Joe Flacco]

There is nothing efficient about dealing with two separate processes. It is a stupid idea. Most businesses look to become more efficient by combining processes.

 

[CGinMN]

I can confirm borrowers do decline waivers and opt for an appraisal.

What %

 

[Justinjla]

There is nothing efficient about dealing with two separate processes. It is a stupid idea. Most businesses look to become more efficient by combining processes.

During high volume markets, it’s very efficient. Today, not so much.

 

[George Hatch]

There’s only one reason a bank sent somebody out to the house for evaluation of the collateral. Of course they’re out there for appraisal purposes. They’re performing an appraisal service.

I wish everyone in this profession would stop with the word smithing and mental gymnastics.

You go to a bank for a loan, the bank sends somebody out to check out your house to give an opinion of value. The only reason somebody would come to your house would be to do an home inspection or an appraisal. Both both of which require a license.

It only becomes complicated when the scammers get involved.

It's pretty simple: it says what it says. Not what you wish it said. Even if it did say what you wish it said the appraiser is still not performing an inspection, although they are attributing the information to its source. There's no deception for you to allege, particularly with respect to the client and intended users of the appraiser's report understand of the appraiser's SOW. It was their idea to order and use this workproduct in the first place.

The person they sent out to collect the subject data doesn't have the first clue of the value of the property or how to value it. Some of those PDRs aren't even used to feed property data to an appraiser. Someone else is reading them.


"Appraisal Practice" is a subset of "Valuation Services". Even if the individual performing the PDR has an appraisal license they are prohibited under the ETHICS RULE from misrepresenting their role in this service or misrepresenting the nature of the service itself. There is no such thing as a USPAP-Compliant PDR service.

 

[Justinjla]

What %

We don’t have a data point that says a borrower declined this waiver. There are waiver offers that result in appraisals and lenders tell us borrowers decline them. I don’t know %.

 

[Justinjla]

The person they sent out doesn't have the first clue of the value of the property.

They are collecting objective facts about the property, that’s it.

 

[Joe Flacco]

During high volume markets, it’s very efficient. Today, not so much.

It's never more efficient. The lender needs to order two different services and stay on top of both statuses. Then one needs to be sent to another resulting in decreased information reliabiity. The lender also needs to communicate twice with the borrower to get them to pay for the inspection, then again to pay for the appraisal. The lender also needs to deal with the complaining about the appraiser didn't go in the house. Then the accounting department has to handle accounts receivable for two invoices.

Twice as much work is never more efficient.

 

[Joe Flacco]

You have to get lucky and get the green light on the valuation with the PDR plus AVM. If you don't get lucky then it is a pain in the ***.