Hybrid Appraisals

[Mejappz]

The only thing that will save boots on the ground appraisers is politics. If Dr. Calabria doesn't kill this stuff true independent appraisers are done. Nearly all GSE work will be funneled to AMC and national firm staff appraisers.

The corruption is deep.

Chairman Tim Scott and other Banking Committee Republicans have urged the Federal Housing Finance Agency (FHFA) Director, Bill Pulte, to focus on reducing government waste and ensuring the agency fulfills its fundamental mission of enhancing the housing finance system. In their communication, the group expressed concerns about the agency's direction under previous political influences.

Chairman Scott along with Senators Mike Crapo, Mike Rounds, Thom Tillis, John Kennedy, Bill Hagerty, Cynthia Lummis, Katie Britt, Pete Ricketts, Jim Banks, Kevin Cramer, Bernie Moreno, and Dave McCormick signed off on a letter drawing attention to several issues within the agency. “The mission of strengthening the housing finance system to ensure homeownership is affordable is too important to be subject to a partisan political agenda, as was done under the Biden Administration,” they wrote.

The letter referenced FHFA Director Pulte’s previous commitments during his confirmation hearing to address inefficiencies. It praised his findings of questionable financial practices, including a separation payment to a former Biden political appointee from the FHLBank of San Francisco and the underutilization of office space by Fannie Mae employees. “These examples raise serious concerns regarding the extent to which the Enterprises and FHLBanks are effectively stewarding their resources,” stated the letter.

In conclusion, the letter emphasized the importance of the agency's role in serving the housing market and urged for continued efforts to address inefficiencies. “The American dream will remain out of reach for so many if the agencies tasked with serving the housing market are serving themselves,” the letter concluded, inviting collaboration to overcome any legal challenges hindering effective housing finance operations.

Republicans urge FHFA Director to address inefficiencies and political influences

Chairman Tim Scott and other Banking Committee Republicans have urged the Federal Housing Finance Agency (FHFA) Director, Bill Pulte, to focus on reducing government waste and ensuring the agency fulfills its fundamental mission of enhancing the...

palmettostatenews.com

 

[shrubberyvaluation]

My WAG: When they were test running this during the pandemic they handpicked a few appraisers and fed them as much as they could eat. The reality is, when you aren’t living in an echo chamber those numbers aren’t anywhere near reality. And we will likely never see pandemic volume again, so when these things are widely adopted the predictions of needing only around 20% of existing appraisers will likely come true. And I know that GSE‘s hate to hear it, but those guys sitting at the table having coffee are not paying anywhere near those fees.

They probably also use the WAG adjustment and confirmation process.

 

[Sadie]

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.

Well, the AMCs want hybrids and they have a pretty big megaphone. Soem how need to muffle that noise.

 

[The Bob]

Our past indicates to our future.

If the price of the technology is right the appraisers will use technology to leverage their productivity. Appraisers will sell the level of SR1/SR2 that their clients are willing to engage and pay for (the two not necessarily being commensurate with each other). If Vic the appraiser won't do it at the prevailing rate in the market then his clients will just go find someone else who will. If Vic withdraws from the market none of his clients are going to miss a beat. Neither Vic nor any of the rest of us mean anything to our clients beyond what we did for them today.

Nor is that lack of personal empathy from the lenders a one-way street. Appraisers are also emotionally detached WRT the financial well being of our clients. If Wells withdraws from the mortgage business today none of those fee appraisers are going to be sending cards or flowers to the employees Wells ends up laying off. It's just business insofar as the appraisers are concerned. They'll just start looking for other clients to fill the gap.

How productive do you need to be if you're only getting 1-2 orders a week?
It's never been about what we sell, or want to sell. It's always been about the minimum needed for the client's regulatory requirements.

 

[Surf Cat]

It's funny how hybrids and PDC's are gaining traction and the boots on the ground dinosaur appraiser, is being phased out. Yet, the new expanding and contracting 1004 that's coming out, is more extensive than ever.... it's contradicting.

 

[George Hatch]

How productive do you need to be if you're only getting 1-2 orders a week?
It's never been about what we sell, or want to sell. It's always been about the minimum needed for the client's regulatory requirements.

All true. Even if their waiver usage above the 80% LTV is minimal the loss of a large percentage of the under 80% deals changes the math in the supply/demand for appraiser hours.

My thinking on the situation has been the same for years: a lot of appraisers are going to get starved out for lack of volume, independent of the fees themselves.

 

[glenn walker]

There keeping people busy as the development of forms is a minuscule percentage of their budget and operation and they have no intent on them being used for any long period of time.

Meanwhile it also gives a diversion to keep disgruntled appraisers focused on the same old gripes as new forms and changes are like Kryptonite to old appraisers but it keeps the education provider's and AMCs fresh news to keep their team members and associates busy arguing and debating on how the profession is going down the dumper.

 

[shrubberyvaluation]

It's funny how hybrids and PDC's are gaining traction and the boots on the ground dinosaur appraiser, is being phased out. Yet, the new expanding and contracting 1004 that's coming out, is more extensive than ever.... it's contradicting.

I think the form is partially to expedite that process of phasing us out.

 

[J Grant]

The only thing that will save boots on the ground appraisers is politics. If Dr. Calabria doesn't kill this stuff true independent appraisers are done. Nearly all GSE work will be funneled to AMC and national firm staff appraisers.

Appraisers are still doing the appraisal portion of the hybrids !

 

[J Grant]

It's funny how hybrids and PDC's are gaining traction and the boots on the ground dinosaur appraiser, is being phased out. Yet, the new expanding and contracting 1004 that's coming out, is more extensive than ever.... it's contradicting.

This is a fallacy meant to scare us - the hybrids are still an appraisal and they require an appraiser.