Hybrid

[Evincere]

American Title is going to use them for Federally related new loan origination.

 

[Evincere]

duplicate

 

[J Grant]

I could not agree more with anything you have ever written. The difference, I believe, is in what we view as our value. I don’t think it is in appraisers’ interests to fight over the value we bring to the inspection process, especially given that there isn’t one iota of formal training in inspections required to obtain the credentials we hold so dear. I mean, really, if the inspection is so important, why is that given exactly zero coverage in our educational requirements, even after more than 25 years and numerous revisions to those requirements?

Given that, and given that our own professional standards have recognized appraisal without inspection since their inception, any argument based on the value of having an actual appraiser conduct the inspection just comes across as disingenuous, especially to most non-appraisers.

From where I sit, it seems like our own professional history leads to some massive fissures in the very foundation of arguments about how critical a personal inspection by the appraiser is.

I dunno, if personal inspection by the appraiser was so unimportant, why did lenders and Fannie and Freddie require the appraiser to inspect not just the subject but the comps from street ? And if a trainee then supervisor had to accompany on inspection...were they all wrong, for decades? I assume FHA has not reversed course on its inspections by the appraiser. While the CE tended to focus on academics rather than hands on inspection, that seemed to have been relegated to the 2 years of apprenticeship with supervisor accompanying on inspections.
I can sit at computer while someone else inspects...whether I'd feel comfortable with it for origination work, I'll decide when/if it comes to pass.

 

[DWiley]

I dunno, if personal inspection by the appraiser was so unimportant, why did lenders and Fannie and Freddie require the appraiser to inspect not just the subject but the comps from street ? .

I addressed that in a prior post. At the time those requirements were developed that was imply the only practical way for the appraiser to gather the information on relevant characteristics, as required by SR 1-2. Times have changed, and Fannie is (finally) considering modernization.

 

[Evincere]

I could not agree more with anything you have ever written. The difference, I believe, is in what we view as our value. I don’t think it is in appraisers’ interests to fight over the value we bring to the inspection process, especially given that there isn’t one iota of formal training in inspections required to obtain the credentials we hold so dear. I mean, really, if the inspection is so important, why is that given exactly zero coverage in our educational requirements, even after more than 25 years and numerous revisions to those requirements?

Given that, and given that our own professional standards have recognized appraisal without inspection since their inception, any argument based on the value of having an actual appraiser conduct the inspection just comes across as disingenuous, especially to most non-appraisers.

From where I sit, it seems like our own professional history leads to some massive fissures in the very foundation of arguments about how critical a personal inspection by the appraiser is.

Cute. If that's the case then, after decades of what was considered germane to the development of an appraisal (personal inspection and certification of the inspection BY an appraiser) now considered to be of little to no value for loan originations due to “modernization” NO APPRAISER who decides to perform a non appraiser inspected hybrid product should EVER UNDER ANY CIRCUMSTANCES provide proof of their E&O.

Lenders should have no qualms indemnifying the appraiser for what is now perceived to be a valueless service and defer on this matter since a) the appraiser will not be performing an inspection, thus not liable and b) they will be relying on physical characteristics and data provided by unknown/undisclosed 3rd parties performing the physical inspections.

Times have changed, and Fannie is (finally) considering modernization.

The Lenders (and GSE's) can chalk off any losses and/or future litigation that comes down the pike to "modernization"

 

[Terrel L. Shields]

It's sad but true

So who arbitrages that dollar? The lender? The borrower? The appraiser? Who has a license at stake? Who gets their livelihood destroyed? Don't they have some right to do a job that is well supported? Credible? When did hurrying not risk mistakes? If forced to cut time to minutes, because someone is worried about the cost....eliminate the appraisal altogether. Simply go back to a system where the LENDER not the appraiser has skin in the game. If the loan goes south, then the loan officer gets fired and banned from banking for life, the bank is required to add money into reserves, and if serious enough send a banker to prison...it happened in the S & L crisis.

Hybrid appraisal products invite risk and banks want their cake and eat it, too. The appraiser takes the risk and liability and the bank skates.

 

[Addie]

Is this different than any other appraisal product?

We want you to do a 1004 and are willing to pay $235.

We want you to do a 2055 and are willing to pay $195.

We want you do to do a DESKTOP report and are willing to pay $150.

We want you to do a Hybrid and are willing to pay $100.

What are your answers to the above?

We want you to provide these reports back in 48 hours? What is your response?

We want you to work as a staff appraiser for $17/hour and you get bonuses based on some insane system that take a math major to interpret. What is your response?

If you don't like the above scenarios then just say no. Those are fees that appraisers ARE accepting in parts of the country. In my own market there are appraisers who are accepting fees $100-$200 less than I charge and I turn down work. Why are they taking those fees? I don't know, but they are. If I have clients that will pay fees acceptable to me then I am OK and will refuse the low fee work. The AMC or client can OFFER a fee, doesn't mean anyone has to ACCEPT the fee.

Once again, it is all about fees..............

Agree fully. This is a capitalism vs. socialism argument. It has zero to do with what the client actually wants. it isn’t an x product vs x product.

It has to do with what socialists pockets want. They want the same pay no matter the work (hours) invloved.

@Renee Healion @timd354

 

[chad hampton]

I could not agree more with anything you have ever written. The difference, I believe, is in what we view as our value. I don’t think it is in appraisers’ interests to fight over the value we bring to the inspection process, especially given that there isn’t one iota of formal training in inspections required to obtain the credentials we hold so dear. I mean, really, if the inspection is so important, why is that given exactly zero coverage in our educational requirements, even after more than 25 years and numerous revisions to those requirements?

Given that, and given that our own professional standards have recognized appraisal without inspection since their inception, any argument based on the value of having an actual appraiser conduct the inspection just comes across as disingenuous, especially to most non-appraisers.

From where I sit, it seems like our own professional history leads to some massive fissures in the very foundation of arguments about how critical a personal inspection by the appraiser is.

Did you always have that opinion or only recently after the bottom line became more clear? Why weren't trainees pretty much ever allowed to inspect on their own (whether that be lender requirements or otherwise)? How about we take the small step of allowing trainees who are at least somewhat trained do it first?

I have 15 years experience and an engineering degree and still learn something all the time from more experienced appraisers on this site and in the real world when it comes to property inspections. The idea that you get the same level of detail by a picture taker and someone only qualified to see if their are 4 walls is really naive. IMO of course.

Now if you are arguing that they can replace the property inspection portion of an appraisal with licensed property inspectors doing full inspections, then I would agree with you. I will never be an advocate of doing less. Seems there is a pretty long and clear history of where that path leads to.

I view the property inspection as a vital part of the process. It's the foundation and starting point. It's actually shocking that anyone would feel otherwise.

But if it saves a day in the process, then by all means. I don't want to stand in the way of quarterly bonuses.

 

[chad hampton]

I have an idea to save even more money and time - let the borrower draw a sketch, state the condition of their home, take photos, label beds/baths, etc. What could go wrong.

I have a friend that owns about 30 homes, all small 2-3 bed rentals/some manufactured homes, etc. He went to a bank to refi about 5-10 of them to get cash out to buy more. The bank actually did tell him to send them interior photos of the homes for their "appraisal". He called me up laughing and asked if they were serious. I told him I have no idea, but give them what they want and see what happens. He asked what's preventing him from going to is 5 nicer homes and sending them photos of them? Nothing that I can think of. I don't recommend fraud, but then again, I have a license to protect. I've been in business, honesty isn't a valued trait when there are dollars at stake.

It's the one thing I have always been impressed with the people I've met in this profession over the years. Appraisers, as a group, are about as honest a group of professionals you will ever find. IF we wanted to lie, cheat, and steal, we'd have gone into about every other business out there. Most likely banking.

 

[Carnivore]

Given that, and given that our own professional standards have recognized appraisal without inspection since their inception, any argument based on the value of having an actual appraiser conduct the inspection just comes across as disingenuous, especially to most non-appraisers.

From where I sit, it seems like our own professional history leads to some massive fissures in the very foundation of arguments about how critical a personal inspection by the appraiser is.

True! OTH part of the problem seems to be the Power User; Lenders! How many trainees have a difficult time in finding a mentor. When they do find one, MOST lenders(GSE excepted) refuse to allow a Trainee to inspect without the /Appraiser also inspecting.

Makes me think the howling and knashing of teeth about a shortage of appraiser's was nothing more than a smoke screen to bring on wider use of Desktop/Bifu appraisals quicker. OR the fact the loan appraisal demand rises and falls dramatically with interest rates/refi. Something about making hay when its time. The pie is only a certain size...hot out of the oven a pie is in high demand and if your not at the front of the line, oh well you(lender) didn't get a very big piece.- to bad looser(lender) you should be quicker. If you were a lender you might respond well if my boy(trainee) could have ran up there quicker for me, but you won't allow a boy to stand in line. Adults only(appraiser)! (I might need to do this over in regard to the players), but I think it makes the point

Someone above said GSE do not permit a Trainee to inspect alone. That is factually incorrect. They do allow trainees. It is lenders(most) who did not !

Do you get where I am going with this?