Hybrid Appraisals

[J Grant]

Yes and today it doesnt take years or even weeks to take BP or a temperature.

And today it does not take years or even weeks to get an appraisal either.

 

[Surf Cat]

The profession morphed into appraisers spending more time on hot water heaters being strapped than valuations. The scope creep and not allowing even licensed trainees to inspect alone killed the apprasers ability to build a real sustainable business model. He was made a one dog operation and no new people getting in the business. The model is broken.

I do agree with this....

But I'm sticking with the "if you want it done right.... you do it yourself" method. Especially in regards to a full inspection.

But this is not the trend right now. The lenders don't want the pre-HVCC model. The lenders are pushing hybrid appraisals as more accurate and efficient. We shall see....

 

[DWiley]

... not allowing even licensed trainees to inspect alone killed the apprasers ability to build a real sustainable business model.

That is one challenge. Another is the restriction on assigning to a particular appraiser, rather than assigning to a firm and letting the firm handle the business in the most logical way. When I had a firm we would send appraisers out to look at 2 or 3 properties in the same area. When the lenders staring dictating the particular staff appraiser that had to do the appraisal, that severely hurt the efficiency (and profitability) of the firm. Mid sized firms like I had are basically a thing of the past, and I think that is a shame because the mid size firm is a great place to share ideas, share resources, and train new folks.

 

[alebrewer]

From the Freddie Selling Guide:

"Freddie Mac does not select or approve individual appraisers or appraisal management companies. The Seller, or a third party authorized by the Seller, is responsible for approving and selecting the appraiser. The Seller warrants that the appraisal services provided comply with the Uniform Standards of Professional Appraisal Practice, applicable laws and Freddie Mac requirements."

Every place I've worked have Compliance groups that determined that, based on the above guidance, assigning to a company is not compliant.

 

[Non Sequitur]

Every place I've worked have Compliance groups that determined that, based on the above guidance, assigning to a company is not compliant.

I agree, can't assign to a firm and allow the firm to assign internally. But UWM (and others) loophole it with contracts with RSDS, True Footage, and Accurity. They are getting around compliance by assigning to firm staff, but it's de-facto assigning to a firm since the firm has the contract with UWM.

 

[CGinMN]

The Seller, or a third party authorized by the Seller

One interpretation of this is that the lender can authorize the appraisal firm to select the appraiser.

 

[glenn walker]

I do agree with this....

But I'm sticking with the "if you want it done right.... you do it yourself" method. Especially in regards to a full inspection.

But this is not the trend right now. The lenders don't want the pre-HVCC model. The lenders are pushing hybrid appraisals as more accurate and efficient. We shall see....

The one person do it right methods biggest flaw is he she has nobody working with them telling them maybe there's a better way of doing it.

The worst are often the oldest who had simply repeating the same mistakes over and over again fir 30 years.

 

[CGinMN]

I think a lot of compliance is just very conservative readings of the regulations, which needlessly complicates processes. RegZ is a great example. I think there it provides ample room to redisclose appraisal fees based on "new information," but many lenders are scared to so because compliance people take conservative interpretations out of fear.

 

[DWiley]

The one person do it right methods biggest flaw is he she has nobody working with them telling them maybe there's a better way of doing it.

I totally agree. I looked at (and signed) every report that went out our door, but before it got to me the appraiser had another appraiser look at it. So, at least three appraisers looked at every report. I have no doubt that reduced the number of errors in reports, and the appraiser benefited from having people with different experiences provide input/feedback.

 

[Surf Cat]

When the lenders staring dictating the particular staff appraiser that had to do the appraisal, that severely hurt the efficiency (and profitability) of the firm.

But now.....an unlicensed individual with just one online class, is inspecting most people's most valuable asset. Passing it off to the licensed, deskbound, non-inspector to figure out the discrepancies. Deeming the process more accurate and efficient.

I think that is a shame because the mid size firm is a great place to share ideas, share resources, and train new folks.

That ship has sailed....