Hybrid

[George Hatch]

If you don't trust the info you *should* do the bump in SOW and complete an inspection yourself. Regardless of the fee. Alternately, you can withdraw.

This is all laid out in the COMPETENCY RULE. Nothing new has been created.

 

[chad hampton]

Solid plan, put it all on the appraisers once again. As if they won't find someone with an appraiser license somewhere to complete whatever garbage POS they want. Seems like a good way to promote and maintain the public trust . What a joke that phrase is. We're the only group that even gives the impression that even matters.

How about we swing the pendulum the other way - demand a better, more reliable, work product. Or at least stick with the ones that have worked for over a decade now.

 

[George Hatch]

I don't think the 1004 is an endangered product.

If our problem is that we think they will find appraisers who will work for minimum wage then it is those appraisers who are in need of a lecture.

 

[djd09]

Notice they will never copy and paste the section about substantial errors. Selective USPAP reading is funny.

They better get the regulators in order. A non-credible report aren't due dates.

 

[djd09]

The hybrid valuation product is the result of a joint effort between real estate agents and appraisers effectively working together while, at the same time, independently focusing on their particular contribution to the product. Here’s how it works: When a valuation assignment is received, the AMC then delivers the assignment to its panel of real estate agents, who provide the interior and/or exterior site inspection and current subject photos, thus leaving the comparable analysis and local market analysis for the appraiser to research. The real estate agent will not include a value or conclusion on the report. Once the necessary data is reflected in the report, the agent submits the information to the AMC, which then delivers the report to an in-house, state-certified appraiser, who reviews and analyzes the report and may use additional data to then procure a final, value conclusion.

It is important to note that there is absolutely no value sharing between the real estate agent and the appraiser. The appraiser simply uses the data aggregated by the real estate agent to establish a final value.

https://mortgageorb.com/hybrid-valuation-a-viable-alternative-to-traditional-appraisals

yep. The agent of the lender and the non-biased real estate agent inspector will have no interest in the value. The value sharing will be dealt with a ROV.

 

[Eli]

Notice they will never copy and paste the section about substantial errors. Selective USPAP reading is funny.

They better get the regulators in order. A non-credible report aren't due dates.

Your touching on IRS rules there. Lol

Maybe antitrust law too, which would go back to USPAP.

 

[Terrel L. Shields]

If you don't trust the info you *should* do the bump in SOW and complete an inspection yourself. Regardless of the fee. Alternately, you can withdraw.

Was there any part of my post you didn't understand?

So you do not trust the info sent...you just wasted all the time you have and now turn it down and have an angry client or....Go do it yourself...a desktop for $65-100. Great business model.

So how do you make a living with crap appraisals for $65? And then have to waste time with what very likely is inadequate inspection from someone who isn't competent. What competent agent is going to do this crap? You are only going to get the dregs of the real estate industry willing to do them or they are going to be making more than the appraiser...which makes absolutely no sense whatsoever. You suggest everyone else fall on their sword but yours is still in its sheath. You go do a couple dozen of these $65 sh** appraisals then report back to us. OK? Otherwise stop pretending these products are not going to hurt a lot of people; appraisers, borrowers, and taxpayers alike.

 

[George Hatch]

Notice they will never copy and paste the section about substantial errors. Selective USPAP reading is funny.

They better get the regulators in order. A non-credible report aren't due dates.

Here you go. 'Cause I want you to be happy. Just note that the way the requirement is worded says "an appraiser must not commit a substantial error of omission or commission" It doesn't say that "an appraisal must not contain a substantial error of omission or commission".

In fact, further down on line 450 is my favorite line in all of USPAP:

Perfection is impossible to attain, and competency does not require perfection.

 

[George Hatch]

Was there any part of my post you didn't understand?



So how do you make a living with crap appraisals for $65? And then have to waste time with what very likely is inadequate inspection from someone who isn't competent. What competent agent is going to do this crap? You are only going to get the dregs of the real estate industry willing to do them or they are going to be making more than the appraiser...which makes absolutely no sense whatsoever. You suggest everyone else fall on their sword but yours is still in its sheath. You go do a couple dozen of these $65 sh** appraisals then report back to us. OK? Otherwise stop pretending these products are not going to hurt a lot of people; appraisers, borrowers, and taxpayers alike.

Whether or not appraisers can or will perform these at $65 going forward is a valid question but it isn't an appraisal standards question. It's a question of how those appraisers value their time, what their other alternatives are for either performing appraisal work or performing other occupations, and what impact the use of these hybrids will have on the market for the other assignment types.

I'm telling appraisers I think they should charge a higher hourly rate for these than they'd charge for 1004 assignments and should anticipate having to spend more time at doing these than they would spend at the reporting phase of the 1004s. But frankly, I doubt that message will resonate with appraisers any better than the warnings I've been giving to them for the last 20 years not to take on trainees unless their region really is running short on appraisers.

Whether or not the lenders' usage - sanctioned by their regulators - will be appropriate for the decisions they're making is another valid question, but that's also separate from any appraisal standards issues.

 

[djd09]

Here you go. 'Cause I want you to be happy. Just note that the way the requirement is worded says "an appraiser must not commit a substantial error of omission or commission" It doesn't say that "an appraisal must not contain a substantial error of omission or commission".

Parsing 'appraiser' and 'appraisal'. Wow. My head is spinning. But if you can sell the purple kool aid, congrats.