Hybrid Appraisals

[Non Sequitur]

That's correct. All the groups I've worked with have determined that 'other third party authorized by the lender' applies to AMC's. But again - you're right that your interpretation could be used to justify that model. I've just never worked with someone who has.

But if that model is used the lender is supposed to audit/monitor the vendor they authorize to act on their behalf.

 

[glenn walker]

Does anyone renember when many fees were based on the values or prices on homes ? The Million dollar home in my area in 1988 was $500 plus and $275 on a $50,000 to $150,000 home.

 

[J Grant]

Let's have a come to Jesus type moment and that it's about money. If you got paid full fee to sit at your desk and just do the valuation portion and write up the report you would be all in .

Suddenly all the fretting about not driving to the property and walking around it with a disto and a rusty steel tape would disappear.

Once everyone gets honest it becomes easier to solve the problem. The pay scale for appraisers hasn't budged much in 25 years except the two years of Covid 19 where in my area guys were getting $650 to $800 plus to do 1004 Exteriors and suddenly the physical inspections and measuring didn't matter at all. In fact even the owners or realtors taking the photo's was fine to. That's when the light went off and I realized these appraisers were all bull****ting when they got on their moral high horses. IT WAS ALWAYS ABOUT THE FEE $$ not who inspected.

Well, yeah, the lender and client need a come-to-Jesus moment too, since they are NOT going to pay the appraiser the same full fee when the appraiser does not inspect. If the AMC's, who will drive most of the Hybrid volume, could not make more money off splitting the job up, they would not pursue it.
Their excuse for their accuracy and efficiency rationale is about fees and control that benefit them.

Fee is an important aspect, but not the only one. Appraisers ( myself included ) signed the petition against value pressure back in the day, and it had nothing to do with the fee. You're just bitter for some reason about appraisers and post to disparage them. Are you still licensed?

 

[glenn walker]

But if that model is used the lender is supposed to audit/monitor the vendor they authorize to act on their behalf.

That's their AMC...lol

 

[alebrewer]

But if that model is used the lender is supposed to audit/monitor the vendor they authorize to act on their behalf.

That is also correct. Were a lender to embrace that model, they would be required to audit that appraisal company - which could run into SIGNIFICANT time expenditures depending on how many such companies they allow...

 

[glenn walker]

But as a lender it can be a two edged sword because auditing your AMC too thoroughly and discovering problems that aren't properly corrected can destroy any plausible denial or feining ignorance.

The Copper Logical Big AMC assured us they were in compliance and yes we had our team do a check in and thing's looked good.

In the legal world sometimes being weak on the audit side is what saves your bacon. Our government agencies are a prime example of ignorance and weak auditing not being criminal ....lol

 

[J Grant]

Trainees did not spend two years going on inspections with their mentors because it took two years to train them to measure and take photos. The time was spent learning about different property types, and then the mentor could see how the field work translated into the report.

 

[glenn walker]

Well, yeah, the lender and client need a come-to-Jesus moment too, since they are NOT going to pay the appraiser the same full fee when the appraiser does not inspect. If the AMC's, who will drive most of the Hybrid volume, could not make more money off splitting the job up, they would not pursue it.
Their excuse for their accuracy and efficiency rationale is about fees and control that benefit them.

Fee is an important aspect, but not the only one. Appraisers ( myself included ) signed the petition against value pressure back in the day, and it had nothing to do with the fee. You're just bitter for some reason about appraisers and post to disparage them. Are you still licensed?

Not bitter at all I just like to call it the way I see it and in your case i agree accuracy and efficiency is a lame excuse because it's less efficient and more costly right now the accuracy issue is debatable.

BUT I believe that it's in the Beta Stages and the long term goal is not what we're seeing right now. The end product will be cheaper and faster, NOT better but cheap and faster is better if that's all you require or need. Look at the long term goals not what your seeing right now.

 

[TC]

Trainees did not spend two years going on inspections with their mentors because it took two years to train them to measure and take photos. The time was spent learning about different property types, and then the mentor could see how the field work translated into the report.

How many times were the trainees accompanied by their mentor?

 

[CGinMN]

That is also correct. Were a lender to embrace that model, they would be required to audit that appraisal company - which could run into SIGNIFICANT time expenditures depending on how many such companies they allow...

If a lender works with 10 appraisal firms in a given market, 8 independents and 2 larger firms with staff, and all appraisers are independently approved by the lender to ensure they are actively licensed and competent, and all reports are reviewed by underwriting to ensure compliance, and qll files are subject to random audit, but the lender assigns the appraisals on random basis to the firm level, what additional auditing do I have to do to the appraisal firm that I don’t have to do with the one-man shop or that I’m not already doing in the normal course of operation?

Your interpretation is the defiantly the most common one, and it is a big reason why AMCs proliferated. But I would ask, what additional burden is there on lenders on top of their existing requirements, and can you cite it?