Hybrid Appraisals

[J Grant]

I guess it depends on the vision of the new administration. I think that is why there is a push to claim they are more accurate, but that is not the reasoning for wanting it in the first place. It has been so appraisers turn to doing AMC work turning out 5+ appraisals a day, not having time to verify information, which is suppose to increase accuracy...

The tight turn times, whether AMC or lender of expectation of 48 hours after inspection, is the enemy of accuracy or being able to analyze well enough for the best credible result. 72 hours would be better with anyone free to turn it in sooner of course.

 

[Joe Flacco]

Rumor is Freddie Chief Risk Officer was fired this week. I don't know how much he is involved with collateral risk specifically but I think they are probably taking a look at what is going on over there.

 

[Joe Flacco]

Chief Risk Officer and Chief Compliance Officer both fired.

 

[shrubberyvaluation]

Plus it is a program pushed forward by the appraisers are racist narrative and the administration is anti-DEI.

That was the selling point, not the reason, so I don't see it as a definite on the chopping block. Notice FNMA is not selling it based on the appraisers are racist narrative, they have pivoted to the its more accurate and faster route.

 

[Joe Flacco]

That was the selling point, not the reason, so I don't see it as a definite on the chopping block. Notice FNMA is not selling it based on the appraisers are racist narrative, they have pivoted to the its more accurate and faster route.

Well.. I don't know what is happening but I get the feeling it is do or die moment for hybrids right now.

Seeing other actions taken by fhfa, it seems like the GSEs are being stripped of some powers and influence all around.

 

[shrubberyvaluation]

Well.. I don't know what is happening but I get the feeling it is do or die moment for hybrids right now.

Seeing other actions taken by fhfa, it seems like the GSEs are being stripped of some powers and influence all around.

Yes I do get the feeling they are trying hard to sell it, including bringing a rep to these forums.

 

[Zoe]

I don't think it is that simple. There is a complex a few miles east of me, and I hated doing appraisals there because the docs were so convoluted that there is no real agreement on whether it is a condo or a PUD. The attorneys for one lender would look at the docs and decide t is a condo; the attorneys for another lender would look at the same docs and conclude it is a PUD. If it is so convoluted that the attorneys cannot sort it out, what can we expect of the appraiser?

The property rights are different in a PUD vs a condo. Those are all spelled out in the recorded documents relative to the subject property.

 

[Justinjla]

It is happening, per Radke there has been a +/-25% drop in unique licenses submitting reports to Fannie in the prior 8 years or so. In the world I live in, a 25% drop is a blood bath.

See the attached slide:

View attachment 98418

That drop is an objective fact, but is that because of waivers? We've heard for years that the average age of an appraiser is ~60 years. Have they finally started retiring and would they have retired anyway? Does the drop in loan volume mean that there are less appraisals to go around and that has an impact on unique appraiser submissions? Is it some combination of all of these? I don't know and you don't know.

 

[Zoe]

You know Danny property rights of the subject are different in a condo vs a pud. The legal documents prove that fact.

For example In a condo association, the common ground is owned by the condo association. The subject property has rights on the ground the subject sits on. In a pud, the owner typically owns the land around the subject property which are outlined on the plat. They are both described in the legal documents.

You know that and don't need a lawyer telling you that.

They are different in the individual property rights the subject has. The subject has certain rights in both, but the bundle of rights is different between a condo and a pud.

If I hit the lottery, I may want a condo. I want somebody else owning some of my property rights. LOL

You go mow the yard, etc.etc. LOL

 

[Joe Flacco]

The property rights are different in a PUD vs a condo. Those are all spelled out in the recorded documents relative to the subject property.

The land records for the one I completed recently shows the project is an HOA. The HOA includes townhouse units and a mid-rise building with apartments in a condo association within the HOA. My subject is a townhouse unit and is not in the condo association. The PUD application shows that the entire project was submitted as a condo association, but the approved order crossed out the words "condominium". The assessor records says it is not a condo. The deed for the subject unit describes it as a condo.

We are waiting to see what title says.