Hybrid

[Evincere]

Chad-

If, for the valuation component and for the GSE-type hybrid, they paid, say $300 and expected it to be done in two days from acceptance, do you think they'd have a difficult time in finding appraisers to sign-off on hybrids?

That rate/turn-time expectation is out-of-bounds for the non-GSE hybrids, for sure. But I'm it may not be out-of-bounds for the GSE hybrid.

Dennis. You are being way too exuberant. They are feeling the waters and have started the bidding at $50.

 

[hastalavista]

Dennis. You are being way too exuberant. They are feeling the waters and have started the bidding at $50.

For the GSE-Pilot program?

(I may be too exuberant, that is a risk)

 

[Terrel L. Shields]

Most of us still value our license

Not much of a concern for the folks that don't them despite advocating how wonderful they are.

 

[chad hampton]

No one will have to worry about being first in line for that. Position 1 in that line was taken long ago. As I have said many times, these types of services have been around a long time, and in that time there have been several instances of these reports being submitted to state boards for consideration. In one state, they got so tired of the complaints they actually sent the complainer a letter telling him not to send any more of them and to stop wasting their time

NC had a complaint last year for a hybrid. I believe it was the first one they ever had to address. Not even sure most board members even understood what this product was (I know you say these things have been around forever, but for the most part, they are a very new phenomenon with little to no real market share). It was done on an appraiser's house and he was told an appraisal would be done. The appraiser who signed the report was a staff appraiser for an AMC and located in some state out west about 2,000 miles from NC. They stated they became competent in NC by reviewing appraisals from this state. I don't think they ever physically stepped foot in this state in their lifetime.

The agent who completed the field work was not told by the bank that their work would be used in the development of an appraisal report. They were hired to do a BPO and that was all they were told. Once they were informed that theit BPO was passed on to be used in an appraisal, the agent said they will no longer be doing any of these for banks. In NC, it is a violation of law for an agent to assist in the performance of a RE appraisal unless the agent also holds a valid appraisal license.

Both the agent and appraiser were dismissed with a warning. Not surprising for either board.

These sound like wonderful products. Total and complete transparency.

 

[timd354]

Common sense buddy. Common sense. You lacking.

Common sense tells me that if there is a widespread appraisal quality problem due to low fees and short turn times, evidence of this surely could be and would be uncovered. At my company alone, we have had almost 1 million loans files come through since I began my time here, yet I have not seen any evidence of any negative impact on appraisal quality because of AMC involvement in the process or because of low fees or turn times.

You should understand that if someone was able to provide credible evidence that appraisal quality suffers because of either AMC involvement or low fees, I would be glad to implement policy changes to address those issues and would also be glad to make my peers aware of that evidence and encourage them to act on that evidence. However, the constant unsupported yapping from you and other appraisers making such claims is of absolutely no value and is actually counterproductive in that it causes appraisers to lose credibility and actually causes some people in the secondary market to stop listening to you guys altogether.

 

[timd354]

If, for the valuation component and for the GSE-type hybrid, they paid, say $300 and expected it to be done in two days from acceptance, do you think they'd have a difficult time in finding appraisers to sign-off on hybrids?

The fee will float to whatever level that is necessary to attract enough appraisers to fulfill the orders for the GSE-type hybrid if and when it becomes a standard GSE offering. Anyone who thinks that they won't be able to find enough appraisers to do this work is fooling themselves.

 

[DWiley]

NC had a complaint last year for a hybrid. I believe it was the first one they ever had to address. Not even sure most board members even understood what this product was (I know you say these things have been around forever, but for the most part, they are a very new phenomenon with little to no real market share). It was done on an appraiser's house and he was told an appraisal would be done. The appraiser who signed the report was a staff appraiser for an AMC and located in some state out west about 2,000 miles from NC. They stated they became competent in NC by reviewing appraisals from this state. I don't think they ever physically stepped foot in this state in their lifetime.

The agent who completed the field work was not told by the bank that their work would be used in the development of an appraisal report. They were hired to do a BPO and that was all they were told. Once they were informed that theit BPO was passed on to be used in an appraisal, the agent said they will no longer be doing any of these for banks. In NC, it is a violation of law for an agent to assist in the performance of a RE appraisal unless the agent also holds a valid appraisal license.

Both the agent and appraiser were dismissed with a warning. Not surprising for either board.

These sound like wonderful products. Total and complete transparency.

And?? I could cite just as many equally appalling issues in "traditional" assignments.

Any appraiser COULD violate USPAP in any assignment That is NOT the same thing as saying that the process itself is a problem. How many USPAP issues has the state board found in appraisal reports where the appraiser did do the physical inspection?

 

[timd354]

Both the agent and appraiser were dismissed with a warning. Not surprising for either board.

What did you want the boards to do, invent some bogus, non-existent regulation and take both of their licenses simply because you do not like the hybrid product?

 

[chad hampton]

Chad-

If, for the valuation component and for the GSE-type hybrid, they paid, say $300 and expected it to be done in two days from acceptance, do you think they'd have a difficult time in finding appraisers to sign-off on hybrids?

That rate/turn-time expectation is out-of-bounds for the non-GSE hybrids, for sure. But I'm it may not be out-of-bounds for the GSE hybrid.

I'm sure you'd get some takers at that point. But you'd also have some hard liners (for lack of a better term) that simply won't sign their name on a document for a property they, or someone on their staff, hasn't seen.

I'd love to get rid of a majority of my vehicle costs, but not at the expense of ending the profession. Which is what happens if the standard/bread and butter appraisal product goes from $400 to $150.

 

[timd354]

In NC, it is a violation of law for an agent to assist in the performance of a RE appraisal unless the agent also holds a valid appraisal license.

That is an interesting sounding law...I would very much appreciate it if you could post a reference to that particular law or regulation.