Hybrid

[timd354]

View attachment 35924

That completely fails to answer my question, but okay

 

[Joe Flacco]

That completely fails to answer my question, but okay

I'm surprised that you don't get the answer to the question.

 

[timd354]

That would depend on the "profit" to the AMC....
Full appraisal fee vs hybrid fees....

Obviously, but do you have any knowledge or information showing that the profit margin is any different for a hybrid versus a traditional 1004...I don't see why hybrids would generate additional profits over a traditional 1004 for AMC and even if they do today (which I doubt), it won't be long before they don't due to competitive pressures between AMC's.

 

[timd354]

I'm surprised that you don't get the answer to the question.

It is because the chart you posted has nothing due with what I asked

 

[timd354]

It makes a difference. The margins on a hybrid are not the same as the margins on a traditional appraisal.

Okay, then what is the difference in the margins between the two?

 

[hastalavista]

For at least one entity I am familiar with (and to be clear, it isn't anyone's company who is participating in this thread), the difference is about 3.5:1, with the higher being the traditional appraisal.

 

[timd354]

For at least one entity I am familiar with (and to be clear, it isn't anyone's company who is participating in this thread), the difference is about 3.5:1, with the higher being the traditional appraisal.

Okay, so then AMC's would be incentivized to not want hybrids in lieu of traditional 1004's then since apparently hybrids are much less profitable to an AMC by a factor of 3.5x.

Let me ask you a question....are these hybrids with the entity you are familiar with hybrids headed to Fannie Mae or are they hybrids done for other purposes (such as home equity loans)?

 

[hastalavista]

Okay, so then AMC's would be incentivized to not want hybrids in lieu of traditional 1004's then as apparently hybrids are much less profitable to an AMC.

I know of one that is putting its resources into arguing against their use as a substitute for what up to now has been the domain of the traditional appraisal (drive-by or interior-inspection). It disagrees with me when I say I think they are ok for some transactions; they don't want to see them at all. However, if used as a substitute for an AVM/BPO, then they are fine with it. They don't offer the hybrid service, BTW (at least, not at this time).
And while they certainly have skin in the game (profit incentive), they believe what is good for appraisers is good for them (I expect this comment to get derision, but as I said and implied in another thread, the relationship between AMCs and many appraisers is so poisoned that nothing the AMC can do...short of paying all appraisers what is owed and closing their doors... is going to satisfy that group of appraisers). They don't want to see non-traditional appraisals taking the place of traditional appraisals. Period.

Let me ask you a question....are these hybrids with the entity you are familiar with hybrids headed to Fannie Mae or are they hybrids done for other purposes (such as home equity loans)?

At this point, for other purposes. However, they, have relationships with those companies that are working with the GSEs, so at some time in the future if hybrids become more prevalent for GSE work (as a substitute for traditional appraisals) they may enter that arena.

 

[timd354]

I know of one that is putting its resources into arguing against their use as a substitute for what up to now has been the domain of the traditional appraisal (drive-by or interior-inspection). It disagrees with me when I say I think they are ok for some transactions; they don't want to see them at all. However, if used as a substitute for an AVM/BPO, then they are fine with it. They don't offer the hybrid service, BTW (at least, not at this time).
And while they certainly have skin in the game (profit incentive), they believe what is good for appraisers is good for them (I expect this comment to get derision, but as I said and implied in another thread, the relationship between AMCs and many appraisers is so poisoned that nothing the AMC can do...short of paying all appraisers what is owed and closing their doors... is going to satisfy that group of appraisers). They don't want to see non-traditional appraisals taking the place of traditional appraisals. Period.

At this point, for other purposes. However, they, have relationships with those companies that are working with the GSEs, so at some time in the future if hybrids become more prevalent for GSE work (as a substitute for traditional appraisals) they may enter that arena.

So unlike our friend Flacco apparently believes, you are saying that AMC's have incentive to not push hybrids in lieu of traditional 1004's. Thus, you would probably agree that Flacco's implication that Danny Wiley is shilling for hybrids because they are somehow more profitable for AMC's is pure unsubstantiated garbage.

 

[Joe Flacco]

So unlike our friend Flacco apparently believes, you are saying that AMC's have incentive to not push hybrids in lieu of traditional 1004's. Thus, you would probably agree that Flacco's implication that Danny Wiley is shilling for hybrids because they are somehow more profitable for AMC's is pure unsubstantiated garbage.

Danny Wiley is a top notch valuation business strategist. He is several steps ahead of you and probably everybody else. You are just not getting it.