Ok. But as we know Fannie doesn’t involve itself in Fee issues. The are not arbitrators or fee setters between the Lender, AMCs and Appraisers.
Correct.
The issue of fees is going to be between the lender and the appraiser. The AMC is
a bit of a red herring (IMNSO) in that equation, used by the lenders as a wedge between paying what an assignment's fee is to the appraiser vs. getting a set-volume contract for all appraisal assignments (that's why I'm in favor of cost-plus).
And you make my point: it isn't the GSEs who will determine if this works or not, it is the appraiser (and lender).
Fannie Mae, a user of the appraisal, is testing it to see if it meets their needs. If it does, they will allow it.
What they will require in terms of minimum SOW is up to them to set and ultimately up to the appraiser to agree with. Most (or many) appraisers can complete an appraisal to that SOW (I predict). The only questions that remain are going to be lender-driven:
A. How much does it cost? (we all agree that appraisers need to bid their services appropriately)
B. How much time does it save me? If it is faster than the traditional 1004 appraisal, the lenders will like it all other things being the same.
If this product meets the GSE testing-benchmark and they implement it on a regular basis, then a segment of work that now goes to traditional 1004s will be eligible for this hybrid.
Lenders will not take this option if it takes longer than the traditional 1004, almost regardless of the cost-savings. Appraisal fees are not what makes them money; closing loans is what makes them money.
Lenders will take this option if it shortens the turn-time and, in theory, costs no more than the current traditional 1004.
That's the equation as I see it. As long as I, as an appraiser, can get adequately compensated for the valuation-component (and I'm satisfied that the SOW is appropriate), then I'll take on these assignments. If I can do them in 48-hours, and that beats the lender's traditional 1004 turn-time, then they'll be happy. If the total cost of the hybrid is no more than the total cost now, then the lender will take this option because they are getting the appraisal quicker and potentially closing the loan faster. Even if the cost goes up a bit, that might be worth a reduction in turn time.