Hybrid

[Deleted member 130081]

Gee. Where I have heard sentiments like those last two sentences before?

When the database war was being waged, I was labeled as being part of the "opposition" and "the dark side" then as well. (you can easily scan historic posts and verify that). When, in fact, I was simply working for the best interest of appraisers, and doing so having been exposed to a broader experience than most who painted me with that label. So, at least I am on familiar ground. As things have played out, there are many who disparaged my views on a national appraiser database who have subsequently called for the formation of the very thing I was fighting for. C'est la vie. Whats a few million dollars lost?

Many appraisers label the people who provide a their very livelihood (at least for most residential appraisers) as "opposition." I am working hard to try to change that, but that does not include just telling people what they want to hear to appease them, as some of today's popular pundits do.

There is over ten years of market testing behind the "hybrid" process. Lenders order hundreds of them every day, and have been doing so many years. It is THEIR analysis of how this affects risk that, at the end of the day, will drive market demand.

I understand the fear, especially given the crazy fees I see being tossed around. But fear is best addressed with a logic and sound reasoning. All this ad hominem, ignoring of basic facts, and general fear mongering will get us nowhere.

Let me ask you Danny, champion of the appraiser and all-around do-gooder for the industry, what benefit do bifurcated appraisals offer the appraisal profession? What is this benefit that simpletons like myself are too foolish to see?

 

[J Grant]

See my reply to JG. It is not about one loan. It is about cutting the total time on the whole portfolio. A single day is worth far more $ than most can imagine.

Since banks will make so much bulk profit saving a day, they should be paying MORE for hybrids! ( meant as a joke, of course they won''t, they 'll pay less if possible )

 

[ucbruin]

So if bankers will make so much bulk profit saving a day, they should be paying MORE for hybrids ( that is meant as a joke, of course they won';t, they intend to pay less if possible )

JG...
I'm glad you posted this because I was going to post something similar.....

DW....
I bet I (inspection portion) and others (inspection or appraisal portions) could be of great assistance to the lenders' goal to complete loans sooner than later....
Fees would have to be such that a 1 to 2 day turn time for appraisers are worth it....

Risk reward....

 

[timd354]

Since banks will make so much bulk profit saving a day, they should be paying MORE for hybrids! ( meant as a joke, of course they won''t, they 'll pay less if possible )

They will pay what the market will bear. If appraisers are willing to do them for X dollars, they are not going to pay some multiple of X dollars. That is just simple common sense and simple economics.

 

[Joe Flacco]

They will pay what the market will bear. If appraisers are willing to do them for X dollars, they are not going to pay some multiple of X dollars. That is just simple common sense and simple economics.

That is true for most products and services but it does not promote best practices or even average practices in appraisal. I would think that most chief appraisers want to promote best practices.

 

[ucbruin]

They will pay what the market will bear. If appraisers are willing to do them for X dollars, they are not going to pay some multiple of X dollars. That is just simple common sense and simple economics.

If these profits are this important why not make sure to pay enough to continue to assure fast turn times???
Do you really believe an additional $100/portion of assignment ($200/assignment) would put a large enough dent in profits to make the product unprofitable???

 

[timd354]

If these profits are this important why not make sure to pay enough to continue to assure fast turn times???
Do you really believe an additional $100/portion of assignment ($200/assignment) would put a large enough dent in profits to make the product unprofitable???

I have no idea, but to expect any to pay more for any service (whether it is an appraisal or anything else) than required by the market is to live in an alternative reality.

 

[Joe Flacco]

Maybe lower fees assure faster turn times since $200 appraisers need to be twice as fast as $400 appraisers.

 

[J Grant]

If these profits are this important why not make sure to pay enough to continue to assure fast turn times???
Do you really believe an additional $100/portion of assignment ($200/assignment) would put a large enough dent in profits to make the product unprofitable???

If they can get them fast and cheap, they won't pay more. Which is why I wrote in my post the idea they'll pay more was posted as a joke.
Imo a larger percent of bifurcated, if FF approved, will be done by staff appraisers .

 

[timd354]

That is true for most products and services but it does not promote best practices or even average practices in appraisal. I would think that most chief appraisers want to promote best practices.

I am just being realistic about what happens in the market, not making a judgment about whether it is right or wrong. BTW, I am still waiting for the day that someone provides actual objective evidence that lower fees is correlated to lower overall appraisal. Appraisers make that claim constantly, but provide no actual, objective support for that claim