Hybrid

[Eli]

Maybe the borrowers will need the web sites for the State Complaints. I will help them.

Thats where Phil Crawford was going in that interview with Peter in “Voice of Appraisal” podcast if you really want to cut to the chase. That’s where the rubber will meet the road in some cases.

Yep, the borrower, homeowner, buyer, seller will file complaints against everybody they can with the help of a competent appraiser of course. RE agent will too in some cases.

 

[Carnivore]

Strange to me that early on most if not all should have recognized that we were arguing over SOW and not Reporting Format. We only have two types of Reports; Appraisal Report and Restricted Appraisal Report. I have two clients one orders "Appraisal Report" direct and the other via an AMC. The AMC does not nit pick me, They just forward the Restricted Appraisal Report. Both Clients in every order have established a pre-set minimum SOW. I am allowed by both Clients to expand SOW at my professional discretion. Both Pay very well. Turns times; One is 7 days. the other is 24 hrs after access. Both will accept fee increase without an argument. In other words they take MY WORD that the Fee increase is Justified. This is what being a Licensed Appraiser is all about. You cant get any closer to Really being an Appraiser.

In this thread George and some others established EARLY that a Desktop/BF can be performed totally compliant with USPAP.! I agreed early on that was True. For that matter i did not need George to tell me that. I and others then tried to drill down on the Fee aspect. The other aspect that is super important is the Record Keeping Rule. You all know that Mr Bragadocious is rubbing his hands and his mouth is watering over this Desktop/BF assignment. Why because his risk is greatly diminished(he thinks). His runners are not to happy because their cash cow unreported income is going to disappear, unless they can sign up with all AMC's as inspectors. Unfortunately for them all their money will be paid and reported on a 1099.

So i brought up storage as a possible reason. Timd responded and I agree with him. Another reason might be that the GSE already has a prior 1004 on the subject and they are going to have a Update on C & C rating, plus maybe a GLA update something like that.

There is another issue/question that has not be brought up. Does the Borrower get a Copy of your report. If so that is a risk factor. You all know how borrowers/purchaser are about their castles. The Appraiser is always WRONG!

So what is my underlying reason for this post. All I can say is be aware that you may be ask to produce a 1004 using the work file you have(effective date) on the subject of the Desktop/BF within a contemporaneous time period. Who established the Contemporaneous time period; GSE. Not you! You might be stuck with a short time turn time period to produce that report.

My mind is spinning today because it is my every 4 months appointment to see my VA Physco-Babble Doctor! I think she is getting tired of me asking her to be by next ex-wife.

 

[J Grant]

An appraiser completing these cheap/fast is either on staff and does what they are told , or they are a fee appraisers willing to risk the slim possibility the state will audit their work file. It;s the work file and SOW that make a file USPAP compliant, not a form (or lack of form ), If an appraiser really develops a researched work file USPAP compliant they are not doing these fast and not making $.

I think it is good clients are ordering these to replace BPO's or AVM's because that is what these short form desktop "hybrids" are. a replacement for...they replace another form of evaluation, they are not the hybrid model that might replace/ be an alternative to replace a full appraisal. ( and has nothing to do with saving money on file storage )

If this product keeps some appraisers busy that's good, right? Their work file or how it gets done is up to them . I'd like to see better fees on all products and longer turn times for all appraisal work because turn times have become super rushed for no reason except speed for speed sake. But conditions that would produce better quality work is non existent to low on the client priority side, so it is what it is.

 

[djd09]

Thats where Phil Crawford was going in that interview with Peter in “Voice of Appraisal” podcast if you really want to cut to the chase. That’s where the rubber will meet the road in some cases.

Yep, the borrower, homeowner, buyer, seller will file complaints against everybody they can with the help of a competent appraiser of course. RE agent will too in some cases.

That is right buddy. The States thought 'due dates' were an USPAP violation. Can you imagine the wide range of faulty reporting that will come hand in hand with the 25 dollar inspectors.

 

[Mr Rex]

How old is the appraisers song?

 

[George Hatch]

Strange to me that early on most if not all should have recognized that we were arguing over SOW and not Reporting Format. We only have two types of Reports; Appraisal Report and Restricted Appraisal Report. I have two clients one orders "Appraisal Report" direct and the other via an AMC. The AMC does not nit pick me, They just forward the Restricted Appraisal Report. Both Clients in every order have established a pre-set minimum SOW. I am allowed by both Clients to expand SOW at my professional discretion. Both Pay very well. Turns times; One is 7 days. the other is 24 hrs after access. Both will accept fee increase without an argument. In other words they take MY WORD that the Fee increase is Justified. This is what being a Licensed Appraiser is all about. You cant get any closer to Really being an Appraiser.

In this thread George and some others established EARLY that a Desktop/BF can be performed totally compliant with USPAP.! I agreed early on that was True. For that matter i did not need George to tell me that. I and others then tried to drill down on the Fee aspect. The other aspect that is super important is the Record Keeping Rule. You all know that Mr Bragadocious is rubbing his hands and his mouth is watering over this Desktop/BF assignment. Why because his risk is greatly diminished(he thinks). His runners are not to happy because their cash cow unreported income is going to disappear, unless they can sign up with all AMC's as inspectors. Unfortunately for them all their money will be paid and reported on a 1099.

So i brought up storage as a possible reason. Timd responded and I agree with him. Another reason might be that the GSE already has a prior 1004 on the subject and they are going to have a Update on C & C rating, plus maybe a GLA update something like that.

There is another issue/question that has not be brought up. Does the Borrower get a Copy of your report. If so that is a risk factor. You all know how borrowers/purchaser are about their castles. The Appraiser is always WRONG!

So what is my underlying reason for this post. All I can say is be aware that you may be ask to produce a 1004 using the work file you have(effective date) on the subject of the Desktop/BF within a contemporaneous time period. Who established the Contemporaneous time period; GSE. Not you! You might be stuck with a short time turn time period to produce that report.

My mind is spinning today because it is my every 4 months appointment to see my VA Physco-Babble Doctor! I think she is getting tired of me asking her to be by next ex-wife.

I wasn't aiming the SOW discussion at most people, and certainly not towards you; and I agree that - as with the ZAIO program - putting one of these on any of the existing GSE forms creates a serious problem because of the existing hardwired verbiage on the SOW and personal inspections and the like; AND because regardless of what an appraiser does to clarify their SOW and the assumptions and limitations involved a casual reader will still mistake one of these for a real 1004 process.

Then there's the fee structure that is being reported, which is a separate problem and to most appraisers will be the most serious problem. There's a big difference between charging $100 for one of these when you're only doing a couple a week on a fill basis vs basing your entire book of work on doing these. I don't know how many regular 1004 assignments will be replaced by these things, maybe it will be more limited in usage than the sum of all fears.

But here's the kicker - it is the users of appraisal services that determine what level of development and reporting are meaningful to their usage, not the appraisers. We determine how to meet those expectations AND the minimums in USPAP but we don't actually establish their expectations for them.

This is demonstrated by the constant scope creep we've been getting with the 1004. The lenders have been wanting more content in those reports when they can get it, not less. The 2055s have been one of their alternatives forever, but we've never seen the majority of assignments go that way. The fees for the 2055s *could* have been a lot lower than is the case for the 1004 but appraisers haven't been doing that, either. These demonstrated patterns of behavior at both the user and the appraiser level indicate TO ME that regardless where the fees start out with on these, they'll eventually float at whatever the market will bear just the same as any other appraisal service. As always, the low cost leaders will set the floor for these - so what remains is how many of those appraisers there are and what percentage of those assignments they'll end up handling.

If I'm a lender and I'm looking at the ages of appraisers I'm probably thinking that there might be enough part timers in the 67+ ages out there who wouldn't mind doing a couple of these a week (from their rural retirement hovel) in order to supplement their income. Someone who has mobility or other health issues, or even a younger worker who is going to school or transitioning into another occupation might consider doing these as an interim strategy. The question will be how many.

 

[George Hatch]

BTW, it's just a matter of time until the ASB publishes FAQs or an AO to address the USPAP-related issues with desktop appraisal assignments involving a 3rd party inspection, and I can guarantee you all they won't be taking the 85-IQ Form Monkey position.

 

[George Hatch]

One more thing: if lenders ARE considering their options on appraisals, one of those other options is simply allowing licensed trainees to solo inspect with the Supervisor checking the "did not inspect" box. Even if it is at a lower fee.

So then you have to ask yourself how many of your peers you think will decide that now is always a great time to take on more trainees. Which if you want to do something productive with your chronic dissatisfaction, that would be an issue we might actually be able to affect from our end.

 

[gregb]

BTW, it's just a matter of time until the ASB publishes FAQs or an AO to address the USPAP-related issues with desktop appraisal assignments involving a 3rd party inspection, and I can guarantee you all they won't be taking the 85-IQ Form Monkey position.

ASB website:

Valuation Advisories Under Development
The following Valuation Advisory is currently under development:

• Valuation for Financial Reporting (VFR): VFR Work Group 4: Valuing Contingent Consideration

For more information on these Valuation Advisories, please contact Paula Douglas Seidel at paula@appraisalfoundation.org.

 

[Eli]

It doesn’t matter George. Many will follow Phil’ footsteps in their endeavors. That’s the bottom line. That will put real estate agents, other appraisers, and banks at increased risk. I don’t care what other people say. Two very knowledgeable people indicated such on “voice of appraisal” in their interview. I would call Peter a highly regarded expert in risk related topics relative to appraisal work.