Hybrid

[hastalavista]

As I said, a licensed trainee would need to comply with the applicable USPAP standards. In this case, Ethics and Competency would apply. Therefore, they'd have no more bias than any other appraiser who follows the USPAP.

 

[J Grant]

I would say the actions of performing a physical walk-through, measurement and rating of the property attributes at the level appraisers normally operate would require far less training and a much shorter learning curve than earning an appraisal license. If it takes 200 hours of QE to qualify for an appraisal license, how much QE do you think it might take to teach someone how to do the competent physical inspection and subject description portion of what we do?

That might depend on the person...I had over 5 years RE sales experience prior to becoming a trainee so already had done inspected numerous properties. Likewise someone with construction/related . And I had the full 2 years of being supervised by my mentors on inspections.

I used to think not much experiences was needed to inspect a property but reading the mind boggling posts lately from trainees ( who seem unsupervised ) and new licensed asking does a space attached to a detached garage make it two houses in a property and is a semi finished basement an ADU or part of dwelling sf etc makes me question this.

The problem is the disconnect between the person doing the inspection and the appraiser. When a trainee was hired by the appraiser and being trained/supervised by the appraiser, even if the trainee inspected on their own, three would be supervision and conversations between the 2, questions answered. The same disconnect whether it is a trainee or RE agent who does the inspection will exist .
But the way these hybrids are set up, the trainee has connection with or interaction or direction from an appraiser they have no connection with ( the appraiser doing the report)

How the appraiser learns anything from this is unknown, imo they are just being used for cheap labor by an AMC or lender...I could be wrong but I suspect a lot of this centers around staff appraisers and perhaps includes Metro West or Forsythe? A cert staff appraiser agrees to be the "supervisor" for a trainee for a dinky bonus and then the trainee runs around unsupervised to do inspections...

 

[hastalavista]

The problem is the disconnect between the person doing the inspection and the appraiser.

This and fees seem to be the true issue with many as it relates to the appraisal-practice component of using these valuations (hybrids).
But from my perspective, the solution is simple...
1. If the appraiser does not believe the inspection is sufficiently reliable given the property, then don't take the assignment;
2. If #1 is not an issue (the inspection is sufficiently reliable), then don't take the assignment unless the fee is sufficient for one's business model.

The other issue isn't so much an appraisal-practice concern as it is a stakeholder concern:
3. At what point are these types of valuations imprudent and not appropriate for a mortgage-finance transaction?

Certainly, appraisers as stakeholders in the system, have the right to voice their concerns to point #3. I've already shared my opinion: I think such products are sufficiently adequate for some types of transactions, but not all types of transactions. Personally, I think it is a mistake to use such a product on a purchase transaction and I would go so far as to say regardless of what the credit score is or the LTV.
For other transactions, I'd consider (a) Property Type; (B) LTV, and; (C) borrower qualifications (credit score and income) to set the boundaries.

 

[Terrel L. Shields]

do you think it might take to teach someone how to do the competent physical inspection and subject description portion of what we do?

Interesting, but to really "do it right"? or, just hack at it? Understanding basic building terms and construction techniques is an on-going process. But a week wouldn't be too long, ANSI measurement standards, reading architects plans, site plans, septic construction, well construction, etc. 80 contact hours isn't too long.

And where is the IAEG standard that says no one can influence or change what an "inspector" sends????

I don't forget being asked once to take a picture "so that it doesn't look like a trailer house" It looked like this. I declined the assignment.

 

[George Hatch]

I can't imagine an appraiser would perform one of these assignments without explicitly referencing the inspection report and its origin.

 

[George Hatch]

Interesting, but to really "do it right"? or, just hack at it? Understanding basic building terms and construction techniques is an on-going process. But a week wouldn't be too long, ANSI measurement standards, reading architects plans, site plans, septic construction, well construction, etc. 80 contact hours isn't too long.

I don't forget being asked once to take a picture "so that it doesn't look like a trailer house" It looked like this. I declined the assignment.
View attachment 35712

Even if the training training took to a month, I'm sure there are plenty of people would sign up for that gig if the pay was $20/hr + mileage.

 

[Terrel L. Shields]

a licensed trainee would need to comply with the applicable USPAP standards

If they can't get credit for it, how could it be enforced? And if not credited, then is it even an appraisal service? The state is basically saying it isn't while claiming it is. Having it both ways?

 

[Terrel L. Shields]

I'm sure there are plenty of people would sign up for that gig if the pay was $20/hr + mileage

zero my liability, drop my subscription services and guarantee me 30 hr. a week, and I'll take that...beats janitor pay at the old folks home.

 

[hastalavista]

If they can't get credit for it, how could it be enforced? And if not credited, then is it even an appraisal service? The state is basically saying it isn't while claiming it is. Having it both ways?

(my bold)

Terrel-

I'm surprised you are asking this question or I'm misinterpreting what you are asking???
They are licensed. Their license requires them to follow the USPAP. The USPAP includes services other than appraisal and appraisal review. For work experience (the bulk of it), a trainee must have appraisal or appraisal review experience such that they complete all the elements in SR-1 and SR-2. In my state, one cannot use a restricted report for one's license-experience log.

So, of course measuring a house doesn't meet the requirement for appraisal experience.
And, of course since they are licensed and if they are being engaged by virtue of that license, they have to follow the USPAP that applies (Ethics and Competency) and the jurisdiction that grants them that license can enforce that part of the USPAP.

 

[Terrel L. Shields]

They are licensed. Their license requires them to follow the USPAP.

Who is going to enforce it? Toothless rule...The license isn't going to arrest them. The client isn't going to monitor their work in any detail...