Hybrid

[Terrel L. Shields]

Which AMCs do you believe would refuse to bid for a lender's work on the cost-plus basis if that's what that one lender wanted? Which

The FDIC et al has authority to tell banks they cannot secure services in this manner. They don't because they cannot stand the bank lobbying efforts. No skin in the game.

 

[George Hatch]

As for the

The FDIC et al has authority to tell banks they cannot secure services in this manner. They don't because they cannot stand the bank lobbying efforts. No skin in the game.

Hence the qualifier I used in my previous comment:

UNLESS the gov't steps in to intervene in this sector of commerce as an explicit concession to our little special interest group.

If you were an AMC and cost-plus was mandated by law (so all your competitors had to operate under the same restriction) would that even be a bad thing for you? What would it be like for an AMC to not have to deal with the constant fight about fee splits because none of their competitors could get away with underbidding the fee split portion of what they do?

 

[George Hatch]

Here's another tangent that hasn't previously surfaced in this discussion.

Years ago when we were in the middle of the ZAIO Wars I opined that even if ZAIO was successful in capturing a large percentage of the 2055 market all they'd be doing is providing the proof of concept for the follow on 2nd generation vendors (and you're all really going to hate this one)

When the sales contract is drawn up and the Title company (or its equivalent) is selected, that title company could send out their own site inspectors - WHILE THE SUBJECT PROPERTY WAS STILL IN ESCROW. This would ensure that the appraisal that was performed by the appraiser at the desktop level could be produced with the 24-hr TAT.

And then taking that concept one step further the limited number of title companies could pool their data into a common database so that ALL THE COMPS being used in the appraisal had been similarly qualified while they were in escrow, original pics and all.

And of interest would be the additional point that the 3rd party inspections and the appraisals would be produced by the same party that was insuring the title, not by the lender or the agents in the transaction. Using workers who are paid by the hour. And that doesn't even include the AVM and autopopulate elements that could be added to their development and report process.

This discussion took place many years ago and had nothing to do with AMCs. The point being, whatever the trajectory of the alternative valuation products to the 1004, that progression doesn't end at the point we're fretting about right now. It doesn't end until they reach the point where there are no more efficiencies to be wrung out of our processes.

 

[George Hatch]

Think about this: If all a staff appraiser at a title company did all day was perform AVM-assisted appraisals using the well-qualified and well-documented database, how many assignments could they complete in a day? What's the economy of scale look like that involves a cubicle farm of employees (being paid the hourly wage at Title Co rates) doing these, with only a handful of them being allowed to go out in the field to deal with the complicated ones?

The concept isn't that far fetched. The technology end of it is already doable.

 

[Michigan CG]

Who got attacked?

A very respected, designated appraiser who has been published multiple times.

 

[Michigan CG]

I'm just not convinced that the people saying they complete them in under a hour are doing everything they are supposed to. Either intentionally or just by not knowing.

Of course they aren't. The desktop is still an appraisal and one still has to follow standards 1 and 2. If we make the assumption that an appraisal takes 6 hours for a 1004 which has been the consensus on this forum for many years (simple, cookie cutter in Normal, USA) and assume that the inspection and driving comps is 1.5 hours and we assume there are less boxes to check etc. on the form subtracting an additional 30 minutes then we are left with four hours to properly develop an appraisal.

How is it that these desktops can take 45 minutes but it takes 4 hours to do a 1004 not including inspection and comp driving and some of the form? One cannot scope away verification of the sales. One cannot scope away the adjustment process. One cannot scope away calling a Realtor with questions about a sale. One cannot scope away many things.

In my market it costs $2 per record card for assessor records on line. If they want three comps and two listings that is 6 total records and 20 minutes of pulling them. I just spent $12 pulling public records and almost half the time that it is supposed to take to write the darn thing.

I call BS.

Is there a place for this type of product? Sure. Is there a place on my desk for this type of product for $75? Not in this lifetime.

And then there is the liability. If I move solely to doing these I am writing four times as many reports? Do consumers understand these products? No, they understand that the idiot is wrong on their value and they file a complaint. If I am doing four times as many reports I have four times the exposure. The state automatically asks for my work file whenever a complaint is filed and the consumer will most likely lose BUT..........there is the chance that they won't lose. Appraisal boards are made up of people who are human. Some appraisal board members are idiots.

Pay me $300 for these and my workfile will be almost as think as a normal 1004 as it should be.

 

[Terrel L. Shields]

 

[Michigan CG]

I started in 1999. The HVCC stoled my clients.

20 years in, why don't you have significant private party work?

 

[Michigan CG]

More of the same, client wants, client needs, client dictates, client huge profits. .

Find different clients.

 

[Carnivore]

Of course they aren't. The desktop is still an appraisal and one still has to follow standards 1 and 2. If we make the assumption that an appraisal takes 6 hours for a 1004 which has been the consensus on this forum for many years (simple, cookie cutter in Normal, USA) and assume that the inspection and driving comps is 1.5 hours and we assume there are less boxes to check etc. on the form subtracting an additional 30 minutes then we are left with four hours to properly develop an appraisal.

How is it that these desktops can take 45 minutes but it takes 4 hours to do a 1004 not including inspection and comp driving and some of the form? One cannot scope away verification of the sales. One cannot scope away the adjustment process. One cannot scope away calling a Realtor with questions about a sale. One cannot scope away many things.

In my market it costs $2 per record card for assessor records on line. If they want three comps and two listings that is 6 total records and 20 minutes of pulling them. I just spent $12 pulling public records and almost half the time that it is supposed to take to write the darn thing.

I call BS.

Is there a place for this type of product? Sure. Is there a place on my desk for this type of product for $75? Not in this lifetime.

And then there is the liability. If I move solely to doing these I am writing four times as many reports? Do consumers understand these products? No, they understand that the idiot is wrong on their value and they file a complaint. If I am doing four times as many reports I have four times the exposure. The state automatically asks for my work file whenever a complaint is filed and the consumer will most likely lose BUT..........there is the chance that they won't lose. Appraisal boards are made up of people who are human. Some appraisal board members are idiots.

Pay me $300 for these and my workfile will be almost as think as a normal 1004 as it should be.

Thank You Brother, I have been harping on what you said above since the thread started. Peter C even expressed a Concern. The Company he works has skin in the game. The big players know this...