Hybrid

[Evincere]

That's an honest answer. Which shows a shift in Fannie/Freddie policy, to favor banker interests over the mission of public trust . ( consumers and borrowers and markets )

If it benefits bank's bottom line to close a day or two faster and have the funds, that is their reason to push for bifurcated. It really does not benefit the borrower, which is the reason often touted. Borrowers don't really benefit from closing 1 or 2 days faster on a refinance and in a purchase often can't close sooner due to seller closing date/contracts etc.

Faster closing means lender locks the borrowers down and gets their fees sooner.Processors spend less time in the loan pipeline,

If they want a loan closed on time and claim the Appraisal is taking to long and slowing the process down, the solution is simple. ORDER THE APPRAISAL SOONER

 

[Joe Flacco]

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

That is only because it is difficult and not cost effective to determine if a appraisal is well or properly developed. Doesn't mean it should be ignored.

Plus you point of view is based on non evidence of overvaluation but undervaluation is a equal issue. I am sure banks want to make loans on those cases where a property is undervalued and does not close.

 

[J Grant]

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

Since appraisers do not have access to the databank of appraisals, it is not possible for us to do that. And nobody else has done such a study, so we can't make an "'objective " claim.

However, we can make a claim based on our own experience as working appraisers, which is fact based on our own years or decades in the business as well as personal feedback from fellow appraisers.

1) Low fees means certain appraisers won't accept the work. Since a number of appraisers who won't accept the low fees are highly competent enough to get better fees elsewhere or more complex work elsewhere, as well as often being more experienced/hold a higher license level and or designation, we can say t lower fees means the consumer and secondary market are being denied the services of those of those appraisers . Imo that is a rip off to the borrower whose retail appraisal fee they paid to lender would cover the fee of many of these more experienced/competent appraisers.

2) Rushing through appraisals has a different result than taking a bit more time, and low fees demands rushing through appraisals, since to make up for lower fees an appraiser has to take on more volume.

 

[timd354]

Since appraisers do not have access to the databank of appraisals, it is not possible for us to do that. And nobody else has done such a study, so we can't make an "'objective " claim.

However, we can make a claim based on our own experience as working appraisers, which is fact based on our own years or decades in the business as well as personal feedback from fellow appraisers. In other words you have nothing

1) Low fees means certain appraisers just won't accept the work. Since a number of the appraisers who won't accept the low fees are highly competent enough to et higher fees or more complex work elsewhere, as well as more experienced/hold a higher license level/r designation, we can say t lower fees means the consumer and secondary market are not getting the services of those appraisers . So you have done a study showing that accepting low fees is correlated with experience or that higher fee appraisers are more competent than lower fee appraisers for the work that is being done at lower fees? Yeah, I did not think so.

You have absolutely no evidence for your assertions except that you hope that they are true. Yet, it does not stop you from making such claims. It is exactly this kind of nonsense that causes the profession to lose credibility in the eyes of many people.

I get it, trying to find evidence to support your contention that lower fees are correlated with lower quality appraisals is a difficult and expensive task, however, if appraisers are going to make that claim and want that claim to be taken seriously by the regulators, clients and others who matter, they need to find a way to accomplish that task. Maybe appraisers can push the state coalitions and the national organizations to press Fannie to provide the data for such a study or figure out another way to conduct such a study on their own...if appraisers were actually able to amass some credible and objective evidence that correlated low fees with low quality, that would be very powerful stuff and would cause people like me to consider placing minimum fee guidelines into our requirements (although anti-trust issues might prevent that)...otherwise, you guys can sit back and continue to do the same thing over and over which is to make unsupported claims that no one cares about nor can act on since such claims are unsupported.

 

[DWiley]

Imo a larger percent of bifurcated, if FF approved, will be done by staff appraisers .

Maybe. That is certainly the case right now, but that is primarily because the software used is proprietary. If there is a standard Fannie form that is available in all formsware, then that changes the game with regard to staff use versus independents.

Whether they are staff or independent, I do think that there will be some who choose to specialize in this work, because doing only one type or the other would be inherently more efficient.

As for fees, the market will dictate that. While I have a lot of latitude/input with regard to policy and strategy at my company, that does not extend to changing the basic laws of supply and demand. PIW and "hybrids" will collectively suck up a lot of the easy ones, and that should mean higher prices for 1004s. I say "should" instead of "will" just because of all the prior discussions about appraisers, pricing and business acumen.

And, to add to why Fannie is pursuing this, just read their own material. They are trying to modernize the process. Right now, the appraisal business/process is the equivalent of a local retail store without a web site in an Amazon driven world. From start to finish, the appraisal process does not avail itself of technology in the way that consumers/customers have become accustomed to in other parts of their lives.

 

[J Grant]

You have absolutely no evidence for your assertions except that you hope that they are true. Yet, it does not stop you from making such claims. It is exactly this kind of nonsense that causes the profession to lose credibility in the eyes of many of your clients.

I get it, trying to find evidence to support your contention that lower fees is correlated with lower quality appraisals is a difficult and expensive task, however, if appraisers are going to make that claim and want that claim to be taken seriously by the regulators, clients and others who matter, they need to find a way to accomplish that task. Maybe appraisers can push the state coalitions and the national organizations to press Fannie to provide the data for such a study or figure out another way to conduct such a study on their own...if appraisers were actually able to amass some credible and objective evidence that correlated low fees with low quality, that would be very powerful stuff and would cause people like me to consider placing fee guidelines into our requirements...otherwise, you guys can sit back and continue to do the same thing over and over which is to make unsupported claims that no one cares about nor can act on since such claims are unsupported.

You have a screw loose somewhere. I said it was my own personal experience ( that is the evidence ), and it happens to be the personal experience of a large number of appraisers.

 

[timd354]

You have a screw loose somewhere. I said it was my own personal experience ( that is the evidence ), and it happens to be the personal experience of a large number of appraisers.

Your own personal experience in your small part of the appraisal world is of no consequence whatsoever in the overall scheme of things and is undoubtedly colored by your own personal biases on the matter anyhow

 

[J Grant]

Your own personal experience in your small part of the appraisal world is of no consequence whatsoever in the overall scheme of things and is undoubtedly colored by your own personal biases on the matter anyhow.

My personal experience is shared by the same as many appraisers, the fact that does not matter to you is of no consequence to me . And it is fact that a number of appraisers will not work for the lower fees, do a poll or questionnaire if you want to find out for yourself. I'd appreciate it though if you'd minimize your responses to my posts on the topic it just becomes bickering adds nothing to the topic .

 

[timd354]

My personal experience is shared by the same as many appraisers, the fact that does not matter to you is of no consequence to me . And it is fact that a number of appraisers will not work for the lower fees, do a poll or questionnaire if you want to find out for yourself. I'd appreciate it though if you'd minimize your responses to my posts as a lot of it is personal on your part ( as other appraisers have noted who have interacted with you lately) and adds nothing to the conversation.

If you don't want me (or others to criticize your posts as I (or others) see fit, then don't post anything. Potentially receiving criticism is part of the deal when you post something on the AF

 

[gregb]

If you don't want me (or others to criticize your posts as I (or others) see fit, then don't post anything. Potentially receiving criticism is part of the deal when you post something on the AF

AF Rules:

7. BE PROFESSIONAL.


a. Do not attack someone for a post they have made. Do not post anything about someone that you would not say to their face! If you have something negative to say about someone then contact them directly, DO NOT POST IT HERE! Do not post anything here that you would not want your grandmother or your daughter to read! THINK BEFORE YOU POST, USE COMMON COURTESY, AND BE NICE!


b. DO NOT attack someone because they ask a question! That is the purpose of this forum, to help each other and to learn. NO ONE was born an appraiser, everyone LEARNED to be an appraiser. The fact that someone is asking a question means they WANT to learn. If you can't answer a question without being sarcastic, or without making disparaging remarks to the person who asked the question, then DO NOT ANSWER.