Hybrid Appraisals

[Joe Flacco]

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.

I suspect it might have a lot more to do with the borrowers rejecting the hybrid model more so than the non-bank lenders. The non-bank lenders, AMC, and the GSE all depend on each other and are likely on the same page.

Hybrids are probably being rejected by borrowers or the originators.

 

[NC Appraising]

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.

Rocket and UWM want them and we're the main backers for them. Rocket and UWM dominate the market.

Loan pronto are doing radio advertisements for 2 day refis without appraisals.

Waivers and hybrids are not going anywhere.

The data maybe skewed due to the low demand for mortgages. Although some of the small or low volume lenders may be the ones who are not using them. Too much aggravation?

 

[shrubberyvaluation]

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.

But we are told they are for low risk, why would they need top of the range...hmmm.

 

[Joe Flacco]

Rocket and UWM want them and we're the main backers for them. Rocket and UWM dominate the market.

Waivers and hybrids are not going anywhere.

The data maybe skewed due to the low demand for mortgages. Although some of the small or low volume lenders may be the ones who are not using them. Too much aggravation?

Waivers are not going anywhere but hybrids are. They are not feasible. The value proposition isn't there.

Hybrids = less reliable results + more complicated process + no cost benefit

 

[Surf Cat]

Hybrids = less reliable results + more complicated process + no cost benefit

How much are lenders giving AMC's for the PDC fee? For the chained to the desk appraisal fee? Double Bubble.

 

[Bobby Bucks]

Thanks. Last week I posted something about how the GSEs intend to sale the foreclosures in bulk/pool to Wallstreet....

How many will become rentals?

BPO agents are busy.

The GSEs inflating the market?
.
As always with the internet...verify before believe. Worth watching

Non-Performing Loan (NPL) Offerings

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capitalmarkets.freddiemac.com

Major Deal: Freddie Mac Offloads $261M Troubled Mortgage Portfolio in Strategic Sale

Strategic sale of 1,458 delinquent mortgages across three pools strengthens Freddie Mac's portfolio quality. Multiple buyers signal strong market demand. See impact analysis.

www.stocktitan.net

That's a very informative video, he really connected the dots behind the REO curtain.. He answered the riddle about what is happening with the shadow inventory which many deny exists. If all those properties are turned into rentals it will be shameful considering how difficult it currently is for first time home buyers.

 

[NC Appraising]

Waivers are not going anywhere but hybrids are. They are not feasible. The value proposition isn't there.

Hybrids = less reliable results + more complicated process + no cost benefit

I want to agree.....but we are at the first stages of the experiment. The national firms will win in the long run.

The large AMCs and non bank lenders dominate the market and want them.

The borrowers will just do as they say. They are mostly uninformed and just want the loan to close.

Clear capital

Property data collection-based appraisal waivers, UPD and the future of appraisals

Discover how property data-based waivers and hybrid appraisals are transforming collateral management and shaping the future of appraisals.

www.housingwire.com

The next phase of appraisal modernization is hybrid appraisals, anticipated to be incorporated into the GSE selling guides as early as mid 2025. Hybrid appraisals combine a UPD with an appraiser’s professional valuation. The process starts with a UPD collection, which is then submitted to the GSEs and provided to an appraiser to complete the hybrid appraisal. Like property data-based appraisal waivers, these appraisals are understood to be accepted by both GSEs.

 

[Carnivore]

I don't want to start a new thread this one is close enough It's in Charlotte
LOOK AT WHAT i JUST RECEIVED IN MY EMAIL from an AMC
-----------------------------------------------------------------------------------------------------------
AMC I have a new order available: Short-Term Rental Market Analysis— 7307 Blyt

• NO INSPECTION REQUIRED; MLS PHOTOS ACCEPTABLE.
• Please see attached “STR MA” outlining the scope of work for this request.
• The form appraiser will utilize to complete the report is also attached as “AN STR Market Analysis.”
• 
  
• Completed Sample report attached (STR Pro form).

Please provide your fee and estimated completion date. Thank you for your consideration!

 

[Joe Flacco]

I want to agree.....but we are at the first stages of the experiment. The national firms will win in the long run.

The large AMCs and non bank lenders dominate the market and want them.

The borrowers will just do as they say. They are mostly uninformed and just want the loan to close.

Clear capital

Property data collection-based appraisal waivers, UPD and the future of appraisals

Discover how property data-based waivers and hybrid appraisals are transforming collateral management and shaping the future of appraisals.

www.housingwire.com

The next phase of appraisal modernization is hybrid appraisals, anticipated to be incorporated into the GSE selling guides as early as mid 2025. Hybrid appraisals combine a UPD with an appraiser’s professional valuation. The process starts with a UPD collection, which is then submitted to the GSEs and provided to an appraiser to complete the hybrid appraisal. Like property data-based appraisal waivers, these appraisals are understood to be accepted by both GSEs.

It doesn't matter what they want if it is not economically viable.

 

[glenn walker]

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 what's going away is Fannie Mae and once the Money Center Banks and Private Wall Street MB investors will be the buyers of newly originated and sold mortgages.

The determination of what kind of appraisals or even if appraisals are required on certain type loans will be determined by the largest Money Center Banks and their MBS investors.

The hybrid would not involve two parties and be a revised low cost data inspection say at $150.00 bucks which sent to lender whose investor NOT A GSE would lay out what valuation basis could be used.

The menu for high credit tranches could be waivers and then lower tranches and Data Inspector report with assisted AVM and internal Comp Check by unlicensed UW tech.

Finally only the lowest and highest risk tranches would include a full appraisal by one appraser and no other options.

Basically the New Model is not
placing much weight on appraisals as
the Mortgage Backed Security's risk is analyzed similar to a large Bond Mutual Fund. The 95% of risk is interest rate and borrowers credit changes and not the value of the underlying asset.

The residential appraisal 40 years ago was a top part of risk analysis whereby today on a 1 to 10 scale it's closer to a 2 or 3 and on 90% to 100% LTV loan it's a 1 to Zero.