Hybrid Appraisals

[ucbruin]

Consider hybrids akin to current tariffs....
Painful in the short run....
Good for consumers in the long run....

 

[J Grant]

The GSEs and their AMC partners didn't create anything new, boots on the ground appraisers used to call them trainees.

The PDC collectors are not trainees,- the trainees were investing n gaining ongoing knowledge for a career and were licensed and supervised.

I dont' blame the PDC people, they are just trying to make extra $ as a side hustle. IMO they are exploited because for a relatively low fee they take on a demanding task with no guarantee of any volume in most cases -

 

[J Grant]

Consider hybrids akin to current tariffs....
Painful in the short run....
Good for consumers in the long run....

? How is it good for consumers?
The hybrids cost as much as or only slightly less than a traditional appraisal. Even if a consumer saves $100, it will not change their life esp compared to the thousands and tens of thousands osf $ they pay in other fees related to a loan or purchase transaction

 

[ucbruin]

Remember the days that MCG would humblebrag that it would take him 2-3 weeks just to inspect a property....
That won't happen with a PDC....

 

[Justinjla]

What kind of a low paid "job" did you create -paying $75-$100 an order (showing up as a typical fee for a 1004 PDC)

If appraisers lose full fee appraisals and turn to PDC work , the appraiser will earn 1/4 of what they used to, making it no longer a viable profession. on the res lending side
It does give jobs to outsiders, RE agents or other folk. As its use for WAIVERS enriches the AMC since they are the main ones to order them.

And now, part of the appraisal fee goes to pay the non-appraiser PDC collectors,
The AMC getting their copesnatin from the appraisal fee instead of being paid as a cost from the lender as it should be ( a lender passing along a check from the appraisal covered by borrower is not a cost to the lender - virtually every other business has to compete by chargings their customer a cost for service but not the AMC thanks to the bundled fee on the HUD - the last govt entitlement and the only one that will escape DOGE wonder why -I do very little AMC work btw - but understand the compensation model.

I am not expecting to see hybrid's scale in today's market. I think some lenders will use them in a targeted fashion like rural areas where they could pick up some efficiency. I think they could scale if/when the market picks up. A few years ago in testing when volume was high, we observed a ~5-6 day average turn time savings for hybrids. Weeks in some areas. High volume is when it really works for the appraiser too because they are not flipping back and forth between the traditional and hybrid process. Appraisers could sit at their desk with a queue of PDCs ready to go and complete 3-6 hybrids a day. At $350-$450 per, they were making good money and we had many say they didn't want anything but hybrids. It takes volume for this to happen, but we all know the market is cyclical and there will be high volume periods again.

It's important to remember, we do not dictate what valuation option a lender and consumer use. We present options based on our calculated risk of the loan.

 

[Joe Flacco]

I am not expecting to see hybrid's scale in today's market. I think some lenders will use them in a targeted fashion like rural areas where they could pick up some efficiency. I think they could scale if/when the market picks up. A few years ago in testing when volume was high, we observed a ~5-6 day average turn time savings for hybrids. Weeks in some areas. High volume is when it really works for the appraiser too because they are not flipping back and forth between the traditional and hybrid process. Appraisers could sit at their desk with a queue of PDCs ready to go and complete 3-6 hybrids a day. At $350-$450 per, they were making good money and we had many say they didn't want anything but hybrids. It takes volume for this to happen, but we all know the market is cyclical and there will be high volume periods again.

It's important to remember, we do not dictate what valuation option a lender and consumer use. We present options based on our calculated risk of the loan.

It's a dead program. There is no reason to keep it going just in case there is another pandemic. Time to shut it down.

 

[ucbruin]

I am not expecting to see hybrid's scale in today's market. I think some lenders will use them in a targeted fashion like rural areas where they could pick up some efficiency. I think they could scale if/when the market picks up. A few years ago in testing when volume was high, we observed a ~5-6 day average turn time savings for hybrids. Weeks in some areas. High volume is when it really works for the appraiser too because they are not flipping back and forth between the traditional and hybrid process. Appraisers could sit at their desk with a queue of PDCs ready to go and complete 3-6 hybrids a day. At $350-$450 per, they were making good money and we had many say they didn't want anything but hybrids. It takes volume for this to happen, but we all know the market is cyclical and there will be high volume periods again.

It's important to remember, we do not dictate what valuation option a lender and consumer use. We present options based on our calculated risk of the loan.

Would I need to have a license and e/o to participate in either part of the hybrid....

 

[Non Sequitur]

It's a dead program. There is reason to keep it going just in case there is another pandemic. Time to shut it down.

Hopefully Calabria is true to his words.

 

[Joe Flacco]

Hopefully Calabria is true to his words.

What do you mean? What did he say?

 

[Non Sequitur]

The PDC collectors are not trainees,- the trainees were investing n gaining ongoing knowledge for a career and were licensed and supervised.

You add nothing to conversation.