Hybrid Appraisals

[George Hatch]

I know everything you post before you post it on these threads. IDK why you show up on these threads and lecture people about simple terms like a middleman is or to echo the talking points the GSEs make to rationalize these products.

These products are only needed in the volume spikes yet they are being expanded to be used all the time and clearly profit one set (the AMC companies.)

You might consider refraining from saying stupid things like blaming the AMCs for what the lenders are doing. Then I'll stop referring to you saying stupid things about blaming the AMCs for what the lenders (and now the GSEs) are doing.

Yes, the AMCs make more money they way they do business and that includes managing 2 assignments instead of just one. That's not where lies this little disagreement. What you keep twisting is the point that it's still the lender who is deciding which types of assignments they want to use, and secondarily its the GSEs which decide if/when to "accept" mortgages which are underwritten with these. The AMCs are holding the lenders up at gunpoint and forcing them to make these choices. That's not how their relationship works.

 

[Joe Flacco]

Borrowers don't want hybrids, lenders don't want hybrids, appraisers don't want to provide hybrids. Nobody wants hybrids because it is a dumb idea. The only people that want hybrids are the AMC.

It is time to shut down the program.

 

[Joe Flacco]

But wait! If there is another pandemic it will be more efficient! lol

 

[Surf Cat]

Borrowers don't want hybrids, lenders don't want hybrids, appraisers don't want to provide hybrids. Nobody wants hybrids because it is a dumb idea. The only people that want hybrids are the AMC.

It is time to shut down the program.

I like the anger...... but borrowers don't care what kind of appraisal product they get as long as they get the loan. Lenders don't care what kind of appraisal product it is as long as they don't have to deal with it in house. Lastly, the AMC wants to make boat loads of money off appraisers.

 

[shrubberyvaluation]

Borrowers don't want hybrids, lenders don't want hybrids, appraisers don't want to provide hybrids. Nobody wants hybrids because it is a dumb idea. The only people that want hybrids are the AMC.

It is time to shut down the program.

And if efficiency is truly goal there are MANY ways to do that without hybrids. Look at reviews for companies like Clear Capital and similar AMCs and you can see complaints of they asking for more and more money as the hybrid gets converted to a full appraisal and such. Of course the AMCs get a nice cut for them all, sometimes over half of what they charge the borrower.

 

[Joe Flacco]

I like the anger...... but borrowers don't care what kind of appraisal product they get as long as they get the loan. Lenders don't care what kind of appraisal product it is as long as they don't have to deal with it in house. Lastly, the AMC wants to make boat loads of money off appraisers.

No anger. Just stating the facts of the situtation. It is an unwanted product by most of the stakeholders. It is unwanted and is not feasible.

It will be gone very soon.

 

[shrubberyvaluation]

I like the anger...... but borrowers don't care what kind of appraisal product they get as long as they get the loan. Lenders don't care what kind of appraisal product it is as long as they don't have to deal with it in house. Lastly, the AMC wants to make boat loads of money off appraisers.

If you look at these big unethical AMCs reviews online you will see the big complaint from borrowers is them charging them more and more as the process goes on. No transparency.

Its true that borrowers by and large like the mode of a FastApp who only uses rubber stamper "appraisers"

I imagine FNMA has taken and stand and won't accept any appraisal done through FastApp after they were exposed....right? right?



It comes to reason that probably all their other "partners' work in the same fashion and were perhaps selected for that reason.

Actions speak louder than words.

 

[George Hatch]

The AMCs work for the lenders. Not the other way around.

However much we think the AMCs don't care about the well being of fee appraisers or the AMCs don't care about the added risks of the bifurcated combination, the lenders don't-care about appraisers even more.

 

[J Grant]

In addition to default rate, we also measure risk by data accuracy, value accuracy, over valuation, under valuation, collateral underwriter risk score/flags, loan performance, loss severity, collateral related loan defects and more.

Your metrics for risk, Default rate, CU risk flags, loan performance loss severity, and loan deflects NONE of it has anything to do with appraisals !

Which makes it a crock of sht- (sorry but really, it is) to apply these metrics to judge appraisals and then sit there and say there is no more or less risk for this appraisal product vs that other prudct sine the a bulkd of the metrics are on the borower/loan side -

As far as data accuracy, I reviewed hundreds of appraisals with field reviews post-market crash after 2008, and data accuracy was rarely the problem - fudged adjustments and cherry-picked comps to make a value were the issues the vast majority of the time. I have seen or reviewed sproadially reports since then and the same holds true.

It's hard to believe that "undervaluation" is a problem since many appraisers fear being dropped due to a "low value." How do you determine what an undervaluation is? Though it might upset a borrower or a lender who loses a deal, an "under valuation" does not increase risk. An overvaluation can - whether a WAIVER, full apprisal, AVM or hybrid produces an overvaluation..

 

[J Grant]

The AMCs work for the lenders. Not the other way around.

However much we think the AMCs don't care about the well being of fee appraisers or the AMCs don't care about the added risks of the bifurcated combination, the lenders don't-care about appraisers even more.

That is not true from my sepcrience.

Many a manger, loan officer or UW at a lender does care - and know their stuff too. When the RE market tanks or there is high default rates, lenders suffer and go out of business or get slapped with onerous regulations. So unless they are sleazeball, they do care about appearances, appraisals, and sound values.