Hybrid Appraisals

[Surf Cat]

Go Joe.....

I don't know though.... the powers that be are pushing it hard. They've deemed the traditional appraisal process antiquated and they're throwing everything at the wall to see what sticks.

 

[Joe Flacco]

 

[Joe Flacco]

 

[shrubberyvaluation]

Go Joe.....

I don't know though.... the powers that be are pushing it hard. They've deemed the traditional appraisal process antiquated and they're throwing everything at the wall to see what sticks.

Maybe they are pushing it hard because people don't want it. It is loosening standards and increasing risk in the name of "modernization."

 

[Joe Flacco]

Their issue does not appear to be that appraisers don't want to do them. Their issue is the lenders are not utilizing the option like they thought they would.

Why would they use this complicated multi-step process with twice as much work for the same cost when they can just order an appraisal and be done with it?

There is no market for hybrids. It will be going away soon.

 

[Joe Flacco]

It is funny how Freddie made the decision that cash outs should require an inspection and the policy was changed to requiring a hybrid. But when the lenders were not using the hybrid option they then decided that waivers are fine for cash outs.

This behavior shows that they do have target percentages for loans that do not use a full appraisal.

 

[Surf Cat]

Maybe they are pushing it hard because people don't want it. It is loosening standards and increasing risk in the name of "modernization."

Absolutely. The lenders want the value and they want it now.

To the AMC's, it's just a big shell game. How much of the fee from the PDC and the chained to the desk appraiser can we keep.

I posted here on the forum a couple times of my mentor whom is an AG doing some of these. I lived through the hybrid process through discussions on the phone with both of us slamming on the MLS, as well as trying to determine where the PDC went wrong in their measuring of the subject as it was way off from public records. The AMC of course stated to use the pdc's measurement. I told my mentor to get that in an email and put it in your file...... he wasn't thinking clearly as he was trying to slam it out in an hour.... I told him my advice was to go conservative on his opinion of value like a drive-by. No need to stick your head up out of the crowd for someone to throw a rock at.

Needless to say he's not doing hybrids anymore.... too risky with everyone pushing for the very top of the range..... sight unseen.

 

[George Hatch]

Their issue does not appear to be that appraisers don't want to do them. Their issue is the lenders are not utilizing the option like they thought they would.

Why would they use this complicated multi-step process with twice as much work for the same cost when they can just order an appraisal and be done with it?

There is no market for hybrids. It will be going away soon.

It wouldn't be the first time they tried something that didn't catch on.

 

[Joe Flacco]

It wouldn't be the first time they tried something that didn't catch on.

Nothing wrong with trying and failing. Time to move on.

 

[J Grant]

Their issue does not appear to be that appraisers don't want to do them. Their issue is the lenders are not utilizing the option like they thought they would.

Why would they use this complicated multi-step process with twice as much work for the same cost when they can just order an appraisal and be done with it?

There is no market for hybrids. It will be going away soon.

I think most hybrids will be mainly confined within the AMC realm when an AMC uses staff appraisers.

It is too cumbersome a process for lenders or non staff AMC's to bother with it.