Hybrid

[djd09]

"The Appraisal Foundation Hosts National Appraisal Forum to Discuss Appraisal Waivers and Hybrid Appraisals
June 7, 2018
Washington, DC – The Appraisal Foundation today convened the largest national gathering of organizations with an interest in valuation to provide a forum on emerging appraisal issues. Representatives from the Foundation’s two advisory councils, representing approximately 100 companies, non-profit organizations, and government agencies, were in attendance to hear presentations and exchange thoughts on two high profile topics in today’s marketplace: appraisal waivers and hybrid appraisals.

The morning panel featured representatives from Fannie Mae and Freddie Mac, both of which now accept certain loans without a traditional appraisal, instead relying on automated valuation models or other valuation tools. Panelists discussed the circumstances under which appraisal waivers are allowed and the processes used to evaluate the risk associated with the underlying collateral. In addressing audience concerns about the rapid increase in appraisal waivers, panelists noted the purposeful guidelines and parameters that surround these products. Panelists also encouraged continued collaboration and input among stakeholders as the profession moves forward with modernization efforts.

The luncheon panel featured representatives from LIA Administrators & Insurance Services and Moody’s Investors Service, who focused on the impact of hybrid appraisal assignments. As appraisers are increasingly being asked to provide an opinion of value based on an inspection provided by another party, the panelists discussed the level of risk associated with these types of assignments, the lack of information available regarding those who complete the inspections, and the potential degradation of the resulting analyses. Responding to this increased risk, panelists suggested diligence on the part of appraisers and investors in monitoring any increased usage of hybrid appraisals, which are a new arrival to the market.

President of The Appraisal Foundation David S. Bunton stated, “We were extremely pleased to provide this forum as part of our mission to preserve public trust in the valuation profession. We believe this unique opportunity to hear from key stakeholders about these new developments was warmly received by the attendees.”

hahahahaha. Bunton can sign them.

 

[Riick]

He mentioned The Public Trust


What more is there to say?

 

[Randolph Kinney]

Responding to this increased risk, panelists suggested diligence on the part of appraisers and investors in monitoring any increased usage of hybrid appraisals, which are a new arrival to the market.

Actually, the diligence is on the client that orders the service since they are contracting separately with the appraisers ordering a reduced SOW product and a third party to supply inspections, photographs and noting any deferred maintenance or health and safety issues.

It is all about cheap waving public trust,

 

[Meandering]

Actually, the diligence is on the client that orders the service since they are contracting separately with the appraisers ordering a reduced SOW product and a third party to supply inspections, photographs and noting any deferred maintenance or health and safety issues.

It is all about cheap waving public trust,

Actually no.

By USPAP it is the APPRAISER who decides the scope of the work and must decline any work where the scope is limited to impact credibility of the results.

And even though credibility is in the eyes of the intended user,

Oh it is the state board which will determine if your results are "credible" and be forewarned, AMCs have no use of your report, hence, they can not judge the credibility of your report. Now, how much are lenders actually looking at those reports??? I guess we'll find out with the next down cycle and homes start rolling into foreclosure, with lenders claiming they had no idea you did not go in the house and take those pictures.

Never was allowed before, and USPAP has not changed, so it is up to appraisers to tell AMCs no.

.

 

[Dublin ohio]

with lenders claiming they had no idea you did not go in the house and take those pictures.

If the lender claims that and it holds up. It would seem to me that the appraiser has a record keeping problem. Not a credibility problem.

 

[Rlong]

I'm afraid there will be plenty off appraisers willing to do Hybid appraisals; and the lenders will likely have a actual scope of work (and not "trick" these apprises and later claim they didn't understand the scope of work/ the appraisers "lied" that they actually inspected the property. It will significantly diminish the reliability of these "appraisals", but that will become a product/market, but it will happen regardless of our criticism..

 

[Meandering]

If the lender claims that and it holds up. It would seem to me that the appraiser has a record keeping problem. Not a credibility problem.

Did you see the thread about the appraiser reviewing a 10 year old report?

And your record keeping requirements are?????????

Not 10 years,

and 10 years from now, record retrieval capabilities will be??

Paper files or nothing.

Oh wait,

Will they even make paper printers 10 years from now?

Who will need paper?

Embrace technology.


.

 

[Randolph Kinney]

By USPAP it is the APPRAISER who decides the scope of the work and must decline any work where the scope is limited to impact credibility of the results.

Actually, the credibility is decided by the client. Just like a 2055 driveby appraisal can't be as complete or accurate as a 1004 appraisal, the client understands that and accepts the consequences. And so it goes with they hybrid appraisal.

Never was allowed before, and USPAP has not changed, so it is up to appraisers to tell AMCs no.

Yes, of course one appraiser can say no while others say yes. Appraisers are not driving the bus, they are passengers with a ticket to ride the bus.

 

[peturner]

I was there and the lunch session with Lima and Peter were very informative.
Moody’s has not seen enough Hybrids to declare them substantive for investors’ safety. However, she stated, accurately, I think that hybridization is not standardized enough to be reliable. Every AMC that has joined the fray has their own report. So, no standard. Voila, drum roll please.
Fannie and Freddie seem hell bent on going with hybrids. Although, for now, the rumor is for them to perhaps replace BPOs.
Peter spoke to the real world. The Appraiser is liable. End of discussion. All of the caveats in the world don’t fix that.
Be very aware that E & O carriers will be asking if you do hybrids. Your E & O rate will be altered, and I project dramatically increased. So be prepared. IF you choose to not disclose your doing hybrids to your insurer, I would guess they won’t have to defend you.
Why do them?
The risk is ALL yours, as is the decision. As for me, I choose liberty and will not be doing them
The other silliness is the GSEs think “inspectors”can make agents or borrowers allow access into the house sooner than the Appraiser. Go figure!

 

[Carnivore]

"Public Trust" is a canard.
"a groundless rumor or belief ; the widespread canard that every lawyer is dishonest

Catch-all. ... In common use, a catchall or catch-all is a general term, or metaphoric dumping group, for a variety of similar words or meanings.

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In the context of Desktops

Who is more profitable based on actual fixed cost and weighed by the inherent Risk

Inspector or Appraiser?