Hybrid

[Meandering]

View attachment 36235
https://www.fanniemae.com/content/guide/selling/a2/2.1/06.html


Appraisers however,

are still responsible.

Kind of like, bait.

.

 

[Meandering]

https://www.fanniemae.com/content/guide/selling/b4/1.1/04.html


Can't do desktop appraisals for lending,

even if the lender is not responsible for any appraisal you create.

.

 

[J Grant]

It is to be expected that the lenders will attempt to establish an initial expectation among appraisers that these assignments won't take much time and can therefore be compensated at the same $20/hr rates they pay their employees. They clearly don't think the work appraisers do is worth more than what they pay their clerks. If they can get you to work for $20/hr they'll do it without a second thought. And then they'll lay you off when the volumes dry up, the same as they do with their other employees.

Think of their opening bid as the beginning of negotiations. If you do it for them once at that price that will be their expectation for the next such assignment that comes up. They don't need everyone to be desperate; they only need however many appraisers it takes to service this segment of their work.

It;'s alarming that it is acceptable to make appraisers "desperate " regarding taxpayer backed mortgage work...and to use the most desperate appraisers since they will charge/accept less. Can desperate people think straight or have enough confidence and equilibrium to do a good job? Desperation as a state of mind has negative connotations for good reason.

 

[George Hatch]

Okay, so is that your way of saying that the lenders have a moral obligation to not exploit the principle of substitution?

 

[George Hatch]

View attachment 36236


https://www.fanniemae.com/content/guide/selling/b4/1.1/04.html


Can't do desktop appraisals for lending,

even if the lender is not responsible for any appraisal you create.

.

Except that they apparently can.

Lookit, you've already been informed of the existence of letters between several lenders and Fannie to this effect. That leaves you with two choices;

You can accept the possibility that those letters may exist and that Fannie and their corresponding lenders may indeed be operating within their rights WRT the test programs, or

You can reject the possibility that those letters exist or that Fannie is otherwise operating within their rights.

I don't see how that's a complicated choice.

 

[Meandering]

Okay, so is that your way of saying that the lenders have a moral obligation to not exploit the principle of substitution?

exploit being the operative word.

I haven't seen any lenders telling appraisers they can do hybrid appraisals for loans.

Only AMCs and their cronies.

.

 

[Meandering]

Except that they apparently can.

Lookit, you've already been informed of the existence of letters between several lenders and Fannie to this effect. That leaves you with two choices;

You can accept the possibility that those letters may exist and that Fannie and their corresponding lenders may indeed be operating within their rights WRT the test programs, or

You can reject the possibility that those letters exist or that Fannie is otherwise operating within their rights.

I don't see how that's a complicated choice.

Nope

That is the current Fannie Mae Selling Guide published a little over a month ago.




You got links to these mystery letters?


.

 

[George Hatch]

Long story short - everyone knows how the issue of using 3rd party inspections in certain appraisal assignments is going to turn out. What we don't know are the details of what the SOW and report will actually look like. If some appraisers want to do the same Baghdad Bob thing with this latest development that they did with the HVCC - deny the possibility that some of these changes are going to occur regardless of our opinions or preferences on the matter - then so be it. Every evolution ends up with some appraisers dropping out who can't or won't adequately adapt to the overall situation at hand.

I don't think these appraisals will take over the majority of the market, but I do think they're going to capture some of the easiest and most profitable assignments, leaving the survivors to compete with each other for the more difficult assignments that remain. Appraisers can either develop a plan for that environment or they can simply sit back and allow themselves to be overtaken by events again. Nobody outside the profession is going to care which route people choose.

 

[Meandering]

That's your opinion.

Where are the links to these mystery letters?

The regulation, in effect, is very clear.

Post your links.

.

 

[George Hatch]

Nope

That is the current Fannie Mae Selling Guide published a little over a month ago.

View attachment 36238


You got links to these mystery letters?


.

No, I don't. Nor do I claim to. But I also don't think Tim or Danny are lying when they say they've seen those letters. As well, I don't think the reports of these products being actively developed is a fable, either.

We've all already seen how quickly Fannie can make a significant change in their appraisal policy when they're so motivated, and that's literally all it takes in this situation. So rather than question whether they have the right to make such a change it seems to me that the more relevant question would be whether or not people think Fannie might have an interest in making these changes.

Time is going to pass and the IRL is going to manifest itself soon enough. We'll see soon enough what Fannie can and cannot do.


I told you guys 10+ years ago during the ZAIO wars that the killer application would be title companies sending semi-skilled employees out to do inspections when the properties went into escrow and appraisers sitting in cubicles doing the valuation parts of the reports. We've been hearing for 30 years how the machine was going to put a lot of appraisers out of work. So on that basis we can't very well say we never saw this coming. Whether it happens in 2018 or 2020 or 2022 isn't going to alter the outcome.