Hybrid

[J Grant]

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

It's my way of saying exactly what I said, it has nothing to do with the principle of substitution. Appreciate your comments about change, what's interesting is that hybrids replacing AVM;s is creating more work for appraisers, albeit low paid work, which might mitigate the segment of traditional appraisals being replaced by bifurcated. Most fee appraisers are no longer doing the "easy ones" anyway.

 

[Meandering]

You also told us guys 10 years ago that AMCs would be good for us too.

There are the regulations, current, in writing, no interpretation, no speculation.

Verification, verification, verification, no opinions.

Every time Fannie
Freddie,
Penny
or any of the rest of them makes a decision, sudden, or even projected, they publish an announcement.

Here is an example of expedient.

https://www.gopennymac.com/announce...nspection-waivers-and-fhmlc-appraisal-waivers


Otherwise,

Provide the announcement links.

.

 

[timd354]

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.

.

Do you really think that AMC's are ordering the bifurcated appraisals that are part of the Fannie pilot just so they can turn around throw them in the trash as opposed to the lender using these bifurcated appraisals to determine the collateral value for a Fannie loan that is part of the pilot? That is ridiculously silly as the AMC's are not obtaining these appraisals unless they are ordered by a lender.

By the way, both Fannie and Freddie give certain lenders all kinds of different variances on a regular basis to originate loans that don't meet the GSE's published guidelines. Fannie calls these side deals Lender Variances while Freddie calls them Terms of Business (TOB's) and lenders are not obligated to share these variances/TOB's with appraisers nor anyone.

What most people don't realize is that the GSE's published guidelines are inside a smaller box than their internal credit policies. Variances/TOB's that are outside of the published guidelines but which are still inside of their internal credit policy guide are granted on a regular basis to certain well performing lenders. One example is Coops...Freddie's published guidelines do not include guidelines for originating Cooperatve Share loans (except for HARP and Refi Relief loans), yet they allow certain lenders to obtain a TOB that allows them to originate new Cooperative Share loans, which is why their guidelines state the following:

4201.22: Cooperative Share Loans (11/15/17)

Cooperative Share Loans are eligible for purchase if permitted by the Seller's Purchase Documents. A Seller should contact its Freddie Mac representative to discuss how to obtain the applicable term of business.

There are literally scores of additional TOB's that are not referenced at all in the published guidelines...some of these are standardized TOB's granted to more than one lender and some are unique TOB's negotiated by a single lender. By the way, typically when the GSE's grant a variance/TOB to a particular lender, no public announcement is made by either the GSE or the lender(s) involved.

 

[chad hampton]

See rule #1 - what the corporate guys want, they will justify it.

 

[Carnivore]

It's my way of saying exactly what I said, it has nothing to do with the principle of substitution. Appreciate your comments about change, what's interesting is that hybrids replacing AVM;s is creating more work for appraisers, albeit low paid work, which might mitigate the segment of traditional appraisals being replaced by bifurcated. Most fee appraisers are no longer doing the "easy ones" anyway.

Yes, that appears to be true. The question is why are Hybrids replacing AVM's? My guess is they are looking for a better way to mitigate the current loss rate and/or increase the i.e 2nd mtg amount to make customers happy(and lender makes more money). I don't know what a AVM cost, I imagine its pretty cheap. What I am fairly sure of is they don't want to pay $400 bucks for an appraisal to make a second mtg

 

[Basically Rectangular]

FNMA is using these to value their REO properties.

 

[Evincere]

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.

It may be true that Fannie can dictate and change their requirements at whim per the rules they have written.

Its not at all unreasonable for anyone, especially those expected to fulfill those requirements to question, debate, and openly challenge whether they are acting appropriately and prudently - when considering their ONLY objective and interest is to stay profitable, accommodate and service their partners needs - which does not include Appraisers.

 

[Carnivore]

FNMA is using these for straight-up purchases of their REO properties.

Most likely because they already have recent REO AS-IS and AS-REPAIRED 1004.

 

[J Grant]

In these threads for clarity differentiate between hybrids ( also called desktops ) that are replacing AVM's or BPO's from bifurcated/hybrids that Fannie is testing that would replace traditional 1004 appraisals.

Regulations now require lenders for mortgage purpose such as a HELOC upgrade an AVM or BPO as stand alone products to at minimum an evaluation, (not sure how they define evaluation ), but it typically needs at least an ext inspection...thus they hire runners to go out and ext photo the properties. They can have a non appraiser or AVM do the valuation portion but seems a trend to use appraisers, thus the $60 range fee for a "desktop". Since these do not replace traditional appraisals they are an additional, albeit low fee per order income stream for appraisers.

A bifurcated on a modified 1004 will replace traditional appraisals and used for origination work ( purchase or refinance ) with another party, an "inspector " doing the inspection and appraiser does the valuation part. I have not seen an order- based on posts Amrock offered for a "modified 1004" a fee of $100- what that fee was for is unclear

 

[Evincere]

Most likely because they already have recent REO AS-IS and AS-REPAIRED 1004.

Lol. I received an order (not a bid) with a stated fee for an REO 6,000 sq ft waterfront penthouse condo. $300. Delete.