Hybrid Appraisals

[alebrewer]

Why were you (or was it a shop ) losing so many unpaid invoices to MB? I never lost a single one _ (only one unpaid inovce from a private person during that time and had to collect two invoices from Coestar)

Even if an appraiser got stiffed a few times over the years from a MB, they made far more money getting the full fee than the AMC low fees -

I owned a good sized fee shop back in the day.

 

[Mejappz]

Why were you (or was it a shop ) losing so many unpaid invoices to MB? I never lost a single one _ (only one unpaid inovce from a private person during that time and had to collect two invoices from Coestar)

Even if an appraiser got stiffed a few times over the years from a MB, they made far more money getting the full fee than the AMC low fees -

I always got paid at the door. Only once did I have to threaten a mortgage broker with small claims court, and he quickly paid.

 

[glenn walker]

The bottom line is that it doesn't matter what happened after Dodd Frank because it did happen. The legislators and Five of the Largest Money Center Banks got together and carved out how the mortgage system's would operate.

Much like a ending of a major war the powers to be carved up and isolated the players that would no longer have control.

The Mortgage Brokers were isolated from the appraisers and the Big five all owned and operated their own AMC Subsidiaries and agreed to spin off controlling ownership or sell off to private investors.

That was completed over a year or two and then it was decided to allow direct lenders mortgage Bankers not brokers engage and manage their own fee panels if they assured better QC and guidelines.

All the major lenders mostly and slowly moved over to only having small inside appraisal divisions , while out sourcing most to their formerly owned AMCs.

 

[J Grant]

The bottom line is that it doesn't matter what happened after Dodd Frank because it did happen. The legislators and Five of the Largest Money Center Banks got together and carved out how the mortgage system's would operate.

Much like a ending of a major war the powers to be carved up and isolated the players that would no longer have control.

The Mortgage Brokers were isolated from the appraisers and the Big five all owned and operated their own AMC Subsidiaries and agreed to spin off controlling ownership or sell off to private investors.

That was completed over a year or two and then it was decided to allow direct lenders mortgage Bankers not brokers engage and manage their own fee panels if they assured better QC and guidelines.

All the major lenders mostly and slowly moved over to only having small inside appraisal divisions , while out sourcing most to their formerly owned AMCs.

That sums it up nicely, and I no longer have to spend time countering tech caused it or that appraisers caused it back in the day by hiring too many trainees. Both of those are minor contributors.

It was a big money and a fast, hard power grab post HVCC, and though individual appraisers could have done a better job of not caving, appraisers are low-resource people vs billion-dollar $ major corporation-backed major power players. It was why the naive calls for a union never went anywhere.

The overlooked thing is that though appraisals as a product can be replaced by alternate forms of valuation, the role of the appraiser can not be replaced - so they had to kill it. I mean, an occasional "deal killed" is to be avoided at all costs and is seen as "friction. " -
"
The role of the appraiser was a brake to the runaway greed train for years - the hits kept coming until now the role of the appraiser is so damaged, it can barely function. That is why, apart from interest rates, prices exploded and more properties are sold to LLC corporations and investors instead of to owner-occupant buyers. When the profiteers run the show top to bottom - owning the data, controlling the lending end, the sales end, and now the valuation end, the owner-occupant buyer stands little chance- they and are being pushed to the margins just as the appraisers were.

 

[djd09]

It's a lot more than $200.00.

View attachment 99664

shocking...

 

[J Grant]

Maybe the end game was for the corporate and big $ interests was to own the properties, not just lend and fund them or sell them ( though they are happy to make money from all ends of a transaction


But the best $ is in flipping, or owning SFR and renting them to buyers who can no longer afford to purchase. Many working owner-occupant buyers are priced out , or can't compete with the all-cash offers of the investors, wealthier, or LLC corporations. Many names showing up on the buyer or seller end now are LLC corporations or a real estate agent -like the old straw buyer days in some cases. ..

Over the past decade, the corporations bought out the local MLS and bought the appraisal software ( and bought the regulators ) and own the data and own many lenders and AMC;s/. The last pice of the control was the valuation. This meant touting alternate products and denigrating appraisals,, having leverage over appraisers via the AMC, - all of which pushes appraisers to the margins.

 

[Terrel L. Shields]

I lost WAY more in unpaid MB invoices that I ever did with AMC's.

Never lost much with either one...because I did much with MBs and never did a single job for an AMC.

 

[J Grant]

The same reason a primary Md is not responsible for a MRI that was done by a radiologist. The MD just uses the report he didn't physically do it.

The same with a civil engineer's report the appraser depends on it's conclusions but did not do the physical inspection.

Wrong. The MD is still responsible for the overall outcome - was their diagnosis correct, was their treatment of the patient comprehensive, etc. The way the MD analyzes the MRI is part of the whole,a nd if the MRI is incompletely done, a good MD might suspect it - or may not know. Either way, the results of the MRI get integrated into the whole treatment and diagnostics. Which is why radiologists go to school and have a license -

 

[glenn walker]

Wrong. The MD is still responsible for the overall outcome - was their diagnosis correct, was their treatment of the patient comprehensive, etc. The way the MD analyzes the MRI is part of the whole,a nd if the MRI is incompletely done, a good MD might suspect it - or may not know. Either way, the results of the MRI get integrated into the whole treatment and diagnostics. Which is why radiologists go to school and have a license -

A Radiologists is a Doctor Md the people you see are usually Radiology Technicians which you take course work and a short tech school then get a license. They don't make great money but it's okay.

 

[J Grant]

A Radiologists is a Doctor Md the people you see are usually Radiology Technicians which you take course work and a short tech school then get a license. They don't make great money but it's okay.

They still have more qualifications than a PDC collector and operate under supervision. Just saying.