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Hybrid

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Coming from a guy that has no problem with desktops rings hollow... Just saying...:shrug:

I'm not sure how you got to the point where it sounds like a make a living off desktops. I do 1-2 a year. IMO, there is a difference in purpose and transparency between the 2 products. I wouldn't do a desktop for a purchase or refi.
 
I'm thinking "nope". :cool:

GSE-bound residential appraisal reports completed to the GSE guidelines are not covered by the IAEG, which regulates appraisal requirements for Federally Related Transactions:

View attachment 36079

So, what you excerpted by itself wouldn't indicate it is from the GSE pilot program. I think (but I could be wrong) it is from the hybird assignments that are used for low-risk loans (HELOCs) or asset management purposes.
Indeed, the 1004 et. al GSE forms do not say "Federally Related Transaction" in their intended use. They say "Mortgage Finance Transaction". A distinction with a difference.
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.
 
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.
 
For a very restricted use a Blind appraisal is ok.

For tax payer backed loans, it is unsafe and unsound.
 
For the GSE-Pilot program?

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

Now that I think about it..it matters not who the hybrid is destined for or it’s intended use.

Be it a mortgage finance transaction (refi, heloc) or a new loan origination I believe those ordering these products will be in lock step on the fees offered. They have to compete amongst themselves for business same as (we) they do now. Uniform fee schedules will appear and the urban people will be lucky to get $30 a report. Wash, rinse, repeat.

As it stands now fees for a 1004 purchase are the same as for a Refi. I don’t see the products setting any new fee precedent regarding their intended use.
 
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Coming from a guy that has no problem with desktops rings hollow... Just saying...:shrug:
I'm not sure how you got to the point where it sounds like a make a living off desktops. I do 1-2 a year. IMO, there is a difference in purpose and transparency between the 2 products. I wouldn't do a desktop for a purchase or refi.

I never implied that you make a living off either. I just pointed out the hypocrisy of accepting one and not the other. Both are detrimental to the profession but you accept one over the other and that lacks overall sensibility. MHO.
 
Isn't "modernization" JT speak? Aren't CRN and the Society of Chief Appraisers partners?
 
I never implied that you make a living off either. I just pointed out the hypocrisy of accepting one and not the other. Both are detrimental to the profession but you accept one over the other and that lacks overall sensibility. MHO.

Fair enough. I look at a lot more than just the products in a vacuum though. I take a lot into account. The forms are just forms. What I don't like about hybrids are the combining of random data from suspect sources and selling them as a URAR/interior appraisal substitute. They are not and it is misleading to say so.

I'd love to sit and do URAR's all day. In fact, that's pretty much what I do. And what I'll continue to do as long as I can. But people on here say times are changing. Most of them aren't day to day working appraisers anymore, but I'll take them on their word.
 
What I don't like about hybrids are the combining of random data from suspect sources and selling them as a URAR/interior appraisal substitute. .
Currently, the overwhelming majority of hybrids are ordered by servicers for portfolio analysis and default servicing or by equity lenders for home equity lines. As such, most hybrids currently are ordered as a substitute for BPO's or evluations, not as a substitute for 1004's. That may change in the future as Fannie is running some pilots to test hybrids, but right now the number of hybrids used for origination appraisals is very small
 
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Once the appraisers start playing lawyer, you know the thing is in the weeds. Gee, wouldn't it be great if appraisers had some sort of organization they all belonged to, that hired lawyers to interpret the laws and publish official interpretations we could all get behind? Gee, that would be really great. Then, instead of wasting time on the forum trying to figure it out, and calling each other stupid along the way, we could just reference the official position of the organization, and just leave it at that. I know, probably a dumb idea.
 
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