Hybrid

[George Hatch]

I'm not suggesting you or anyone else should do these at any price, let alone $3-$7 an hour. With that said, my guess is that there will be appraisers who will decide to do them at a price they consider to be acceptable, and that few if any of them will ever get into trouble over the specified SOW being inadequate. Now some appraisers might possibly get into trouble for not following through on their agreed upon SOW but that's an ethics problem, not a deficiency in the original SOW as specified.

 

[Michigan CG]

That is no bigger of a problem now than it has ever been. In fact, I would argue that overall appraisal quality prior to 2008 was worse than it is currently.

I not sure how that can be but prior to 2008 I was mostly involved in commercial work. I remember the 2014 USPAP update that really STRESSED that appraisers must summarize and I saw no improvements, only more boiler-plate. I am convinced that most cannot explain adjustments, even the simple ones. If it was worse in 2008 then our industry is in trouble.

 

[Carnivore]

That is no bigger of a problem now than it has ever been. In fact, I would argue that overall appraisal quality prior to 2008 was worse than it is currently.

I do agree, even though I don't have any empirical data to support my agreement with you, The limited reviews I have completed suggest strongly that your correct. I am sure that some of that can be attributed to AMC QC efforts. Additionally On-line CE has probably helped a lot. Most of the on-line courses can't be blown through very easily anymore.

The last review I completed(two months or so ago), was completed by a Corelogic Appraiser, purpose: Purchase. I always prepare a S1 development file before I view the Original Report. If its a purchase I include the contract and listing info in the Work file. Essentially i put together everything to begin writing a report.
Then i look at the Report under Review. Immediately I saw the issue that triggered the Review. Orig. Appraiser development and resultant Report was clearly designed around the requirements of 10%, 25%, 6 months, less than a mile, Bracketing etc; all the crap that requires the appraiser to try and force a grid where they don't have to explain(detailed narration). Additionally also to avoid being told to provide additional comparable. Then contract analysis and absolutely no narration about the three offers that were submitted the same day.

Overall the report was ok, no fraud, or anything like that. I used two of orig report comps and added a new third more appropriate comparable that was older than six months. Result; I agreed with opined mv of original appraiser.

Finally! Then i looked at Inspection/effective date and signature date. You guess it ....same date. Boom! 24 hr turn n Burn. I have no idea what the appraiser was paid. Don't care.

So this leads me into my major point. Michigan CG who I have immense respect for among many of all of you has nailed it on pricing of a desktop/BF.

All they have done is try and eliminate the time it takes to complete a site inspection, time/distance to drive subject & comparable. For that a perceived value of that is $250-$400 and are S1 & S2 is worth $75 bucks. Invert that fee structure and I will complete Desktops. If you dont want to then take a hike, I am not doing them; PERIOD!

 

[Carnivore]

New Point on Desktop/BF

Why are they conducting a Pilot: We already know why.

Here is a possible underlying reason: Storage Space! whether resident or Cloud. They both cost money and lots of money when it comes to the GSE's.

Example/reason I have gone here. My Brother is retired from IBM, he was a Senior System Analyst(what ever that means) My Sister in law a is close to Retiring.as a Senior Program Writer(my way of describing her job) Both told me something about storage that never occurred to me. Glady's job writing a program module try's to keep the lines of code as small as possible. This reduces resident/cloud storage space.

Tom taught me about password security. Passwords use a combination of letters, numbers, and other symbols. Longer the string the more the security. Us street people use the simplest thing we can remember. Many sites force you to use a more complex password. OK, also they make you change your password periodically. It irritating to you and me. They also restrict you from using an older password. This means they are storing not just your current password but previous password(s). Here in lies a trick. He said rotate out passwords, Current password, replace with first password. It might work. Depends on how many you have in the order of all your passwords. For example could be three, four or five before they dump the fist one you used, You can reuse a previous password that is the oldest. Why do they do this? Password Storage is huge and expensive if you think about just the entire USA internet users.

Here is where I am going with this: Do you think the GSE's might also be trying to save cost and space by going to a much smaller Report size to save Storage space cost?

MLS systems already purge photos after so many years for that reason! Storage Space...its costly

I think this is very possible. I don't think its the only reason, its just one of the strong possibilities. Its not how much you earn its how much you spend.

 

[timd354]

For that a perceived value of that is $250-$400 and are S1 & S2 is worth $75 bucks. Invert that fee structure and I will complete Desktops. If you dont want to then take a hike, I am not doing them; PERIOD!

I would not do the desktop portion of a hybrid appraisal for that fee either, but AMC's/Lenders are not going to pay more as long as there is an adequate supply of appraisers willing to do them at that price. Of course the fee issue is a different issue from whether or not a hybrid appraisal can be credible for the intended use

 

[timd354]

Do you think the GSE's might also be trying to save cost and space by going to a much smaller Report size to save Storage space cost?.

No, I don't think that is it at all. First of all, the cost of storing data has decreased greatly the past few years and continues to decrease. Secondly, the hybrid appraisal that is being piloted by Fannie Mae has all the same data fields as the existing 1004 and alos includes just as many photos of the subject property. The only thing it may not include is original photos of the comps, but that does not save that much space.

 

[Carnivore]

No, I don't think that is it at all. First of all, the cost of storing data has decreased greatly the past few years and continues to decrease. Secondly, the hybrid appraisal that is being piloted by Fannie Mae has all the same data fields as the existing 1004 and alos includes just as many photos of the subject property. The only thing it may not include is original photos of the comps, but that does not save that much space.

Just a thought....but I have not seen a Desktop from FNMA, I have seen several other formats made by private companies.

Does FNMA have a proprietary form or one they recommend?

 

[timd354]

Just a thought....but I have not seen a Desktop from FNMA, I have seen several other formats made by private companies.

Does FNMA have a proprietary form or one they recommend?

They are running mulitple pilots and have not rolled out bifurcated appraisals as a regular offering, thus they have not recommended any particular form nor have they made any bifurcated appraisal form publicly available. The formats that you have seen are probably ones that are being utilized for second mortgage and home equity lines, which is the more prevalent use for bifurcated appraisals at the current time.

 

[George Hatch]

It would be a little ironic if they developed forms for the hybrids that were more USPAP connected than the regular GSE forms.

 

[Mr Rex]

AF poll results: There is only one acceptable appraisal format. The "full appraisal". Interior and exterior, relax, look at the wall and cough.