Hybrid Appraisals

[alebrewer]

Eliminate AIR and AMC's and go back to mortgage brokers.....even borrowers to select and order directly from appraisers.

What a disaster.

If the lender finds the appraisal report blatantly insufficient, pushed in value, undervalued, devoid of appraisal methodologies and common sense and the appraiser can't remedy it, they don't get paid.

When was the last time that happened, so long as the value was where they needed it to be? Remember - if you want to push this back to the brokers, that's who's gonna be reviewing the appraisals - the brokers' underwriters.

This way....pushing for a certain value would waste the mortgage broker's, Realtor's, borrower's time. They would need the experienced, Geo competent, highly skilled, appraiser as opposed to the number hitting dregs that the AMC's prey upon.

Also incorrect. Brokers valued appraisers who could lie and still be believable. They didn't value credibility.

 

[Sadie]

What kind of word salad is this - I have no idea what you are trying to say, except that the tone disparages appraisers-

Of course fee appraisers can not accomplish overcoming the leverage of AMC's!! That is the problem in a nutshell. How can low resource, independent fee appraisers possibly withstand the billion dollar worth AMC;s with lender and GSE backing, with the einfunee to change regulations ( you did comment well on that wrt the second fee survey added to the original AMC HVCC which was the death knell of C and R for AMC orders ) and the leverage of bulk volume orders, after Appraosers were cut off from their own lender clients post HVCC -when it was forbidden ttht individual loan officers order teh appraisal. That narrowed effeicve demand to a small number of players so the neeormal supply and demand on the commerical and private side of appraisals does not exist, and th normal supply and demand in the rest of the business world does not exist.

I think appraisers can be united, but it goes against the grain a little. Many professions are independent yet have decent organizations. Think dentists, dr, etc. How do you think that in some areas a doctors continuin ed is 20 hours per biennium?
Hours:
The number of hours required varies by state, with some states requiring a minimum of 20 hours per year and others requiring up to 100 hours per biennium. Thats not very much when you consider it.

 

[Sadie]

It is the decision of the GSE's to allow WAIVERS and HYBRIDS. Technology is just an excuse; there is minimal high tech about a waiver or a hybrid. A hybrid merely cuts the assignment in half, with a non-appraiser inspecting. Explain the amazing tech that entails? A measuring app that produces a floor plan? The appraiser can use the same app to measure. It is a profit policy decision by GSEs to allow use of WAIVERS or HYBRiDS, and the AMC's benefit from it.

A hybrid is still an appraisal using the appraiser for the desk part and a PDC person to inspect.

A WAIVER simply allows the lender to put in the value or the SC to be the value as long as the value falls in an AVM range - there is noting high tech about that.

The whole hybrid waiver excuse by the GSE is BS. Remember the old form 2075-Condition and Marketability report? or the 2055, as it exists now. Its just smoke and mirrors that make someone (who I don't know) think that these hybrids are quicker and/or cheaper while still being reliable.

 

[Sadie]

Please don't buy into the blame tech falsehood.

Technology has nothing to do with AMC low fee solicitation. It existed the day the HVCC passed as it does now. The low fee is due to regulators being influenced when they changed the second provision for AMC to use their own surveys to evade the intent of C and R.

Tech or no tech, the lenders do not engage in fee shopping, the AMC s do. It is low tech, the AMC's mass email bids or compares fees internally.
Using portals does not determine the fee.

I don't recall my fee dcreasing when we switched to digital photos. Or when we switched to email delivery vs and delivery. Or when we got online access to RMLS photos instead of the books. So no its not tech that is driving down fees.

 

[Sadie]

Some lenders get kickbacks from some appraisal management companies because they own part of the appraisal management company. That is not ethical imho. It is like hidden fees and charges.

It is not ethical.

I remember when there was a kerfuffle about Wells Fargo and US Bank having their own management divisions. They had to jump through some hoops to make sure they complied with the law. They had to show the separation. I don't know about now. These 2 banks had separation before HVCC so they were ahead of the curve in that way.

 

[ucbruin]

You mean like Church and State....
Separation is for suckers and losers....

 

[Zoe]

You mean like Church and State....
Separation is for suckers and losers....

At least you understand a little religion and founding fathers on separation of Church and State. That has been twisted bad since the constitution.

The way it is interpreted today is totally different than the founding fathers intended.

You know I am all for freedom of religion. Everybody worships something. You can call it religion or whatever. Makes no difference what you call it. Everybody worships something.

I focus Sir on real property rights. It gets me out of any of that.

If I appraised your property today, I could care less what you worship. If you want to share that with me, that is fine. I don't care what you worship.

If you open that door, I will share who I worship.

Nothing to do with real property rights.

Nothing.

 

[Zoe]

I don't appraise individuals. I appraise real property rights. However, I know who made the land. LOL

 

[George Hatch]

I realize that. But what enables all the above is the retrospective HUD bundled fee, and maybe a lawsuit or one upstanding person on the DOJ side can change it - stranger things have happened. We nee to pressure for that - not appeal to sympathy.

First step is to clarify the issue, and cut through the fog of distraction such as that technology is to blame , or appraisers themselves are to blame - you just named the massive powerful entities against appraisers, yet still blame appraisers for hiring trainees 20 years ago- Whether they hired X number of trainees or Y number of trainees would have made little difference once the HVCC was enacted and the regulations around C and R in the HVCC were influenced to change from their original intent. -

The reason you're trying to tone police me for making you feel bad is because you cannot shut down or override the facts or the reasoning under observation.

I already said that your current problem is the declining demand for appraiser hours coupled with the advance of the tech-enabled marketplace. And whatever movements they're making away from the universal use of 1004s for every assignment regardless of circumstance.

This ain't 2004. It doesn't cost Shark Attack AMC even $.10 to add 1000 more licensees to one of their blast emails. And they only need 1 of those licensees to take the assignment at that fee. In lieu of any indications that one individual has an unacceptable track record they don't much care exactly which licensee goes for the bait. Not for most of those assignments.

You guys are constantly complaining about that, so none of this is news to you. But go ahead and complain about how my tone makes you feel if that's what it takes for you to get by in one piece today.

 

[George Hatch]

Also incorrect. Brokers valued appraisers who could lie and still be believable. They didn't value credibility.

I expect LOs/Brokers to act like loan originators. To advocate for the deal. That's a very necessary function in the mortgage lending business so we do need them. Best of luck to them.

But by the same measure, they have no business touching any aspect of the lender's due diligence functions except to not lie on the applications they submit to the lenders.