Hybrid

[George Hatch]

The appraisals are being prepared for the lenders' usage; not the borrowers. That's why they are the ones who decide what they think is meaningful to their usage of the appraisal, and why nobody cares what the borrower thinks the lender needs.

The borrower's primary role in a mortgage related appraisal assignment is to open the door to let the appraiser into the property. That is, where the assignment involves an inspection.

 

[hastalavista]

Oh let's just put out a bunch of bullshi t as a profession because that is what the lender is asking for. Yeah that's a great idea for the profession.

If one has made that conclusion (certain appraisal services... hybrids in this specific case...shouldn't be completed) the options are pretty clear:
1. Don't accept them.
2. Lobby for the lenders' regulators to restrict their use or exclude them all together.

There is a third option, of course. Rally enough appraisers to agree to the same conclusion and then there will be insufficient appraisers available for this assignment.

However, since I think the issue with many appraisers is fee (there are some who genuinely believe they are not appropriate... period... regardless of what they pay but many who just think the fee is too low), that rallying cry will only work if the fees are so low that an insufficient number of appraisers take the jobs.

That "fee" rallying cry has been tried. It isn't as effective as some have hoped based on the reported fees some take in some markets (i.e., they take a lower fee than what many would take for a 1004... why would one expect a radical change for a hybrid?).

The effective hybrid opposition (IMNSHO) isn't USPAP and it isn't fee (someone will always take less than I would, right?). The effective opposition is a battle fought on the regulation battlefield.

 

[gregb]

The effective hybrid opposition (IMNSHO) isn't USPAP and it isn't fee (someone will always take less than I would, right?). The effective opposition is a battle fought on the regulation battlefield.

Good points Denis. Please provide examples where appraisers have ever won or even tied on the regulation battlefield. Are there any examples where the established appraiser trade groups have won on an important regulation battlefield?

 

[DTB]

My takeaways from outside the biz.

1 Hybrids are here. (will they grab more market share? We'll see)
2 Hybrids are cheaper (of course they are as unlicensed persons w/o many of the appraisers' expense are completing a portion of the work. I think I mentioned division of labor a time or two to make appraising more profitable)
3 Hybrids are faster (many appear to be exterior only and those requiring an interior get done and are sent into the pile quickly)
4 Appraiser pushback is futile (no power, no push)
5 Hard money guys and true investors will still need knowledgeable appraisers, get to know them/become one of them and your life will improve. (I was recently approached by one, after license non renewal for over 5 years and they want me onboard. Lunch meeting on Saturday will determine my level of interest.)
6 Appraising is not the hardest thing in the world but being a profitable business can be very tough for many appraisers.

Good luck to all.

 

[chad hampton]

If hybrids need an appraiser's signature (and in NC no one can provide a value opinion unless they hold a license), then appraisers are still in control. I will consider any product my clients want, but I can't say my fee changes much. I guess there are something like a desktop - in the $125 range for my signature.

It would be nice to let someone lese be burdened by the vehicle costs. After about 2 months of driving around, they won't be doing them for $50 either. Might even be cheaper to go back to having 1 person do everything. It usually is in the end.

But it's always interesting to see bank eggheads who know little about the real world try to come up with cool new ideas.

 

[Meandering]

Lulz. The reference in the SOWR doesn't say "most competent appraisers". You should go back and read the reference to see what exactly it does say. You're not going to be able to run an election campaign and use those results as evidence that appraisers can't do those assignments.

It was you that said "most competent, not me.

Like I said, this here's still America. When it comes to enforcing the rules and regs the burden of proof rests with the state. Not with the accused. So when a client engages numerous assignments with a given SOW and numerous appraisers are completing those assignments per specs it's going to be tough for the state to allege - after the fact - that no competent appraiser would have considered that SOW adequate.

Still spinning it George?
.
The SOW acceptability is judged upon what regular users accept as credible. Not by one or two 'clients" no matter how many lemmings they have found.

But thanks for bring this back up.

How can the state judge what peers do when no one takes any surveys?

Most of the people on state boards are not practicing appraisers.

The FTC does not want practicing appraisers on state boards, because they "limit competition".

So by what magic is anybody "judged" based on what their peers do?

.

 

[Carnivore]

I was actually talking about appraising and lending. The trend toward substituting the increase in quantity to compensate for the reduction in data qualification is a plan that may or may not pan out.

But now that you mention it, those cliches do have other applications in commerce. The explosion of speculation in the weed business in one of them. Some of those companies may thrive over time but it remains to be seen if the market will support them all.

Your first point I agree with...its their educated gamble...If the GSE for example lost all of the fed backing...in other words they are operating under the make it or break it system..relying on free market investors...then this would not happen.

You 2nd point is a pretty dang good one...It wont take long for Legal practice of growing your own stash to take hold and then the only customers of commercialized weed cultivators will be the connoisseur's of smoking. LOL

 

[djd09]

The appraisals are being prepared for the lenders' usage; not the borrowers. That's why they are the ones who decide what they think is meaningful to their usage of the appraisal, and why nobody cares what the borrower thinks the lender needs.

The borrower's primary role in a mortgage related appraisal assignment is to open the door to let the appraiser into the property.

Is this the banking regulators definition of Impartial?

 

[Terrel L. Shields]

Isn't part of the reason Amazon is so popular with the public....
They offer the consumer a product that is cheaper and delivered faster????

In a rural area, they offer a product...cheaper or not. How many times have I went to 3 towns, driven 40 - 80 miles trying to locate a simple something...be it a Pentax camera, a pillow block bearing, heavy weight drafting paper, etc. Figure the drive time and even paying the shipping, and its cheaper than needless wasted time and gas. And why pay for Prime when they deliver in 5 or 6 days anyway? Printer supplies are rarely over 4 days on "free" shipping.

 

[Terrel L. Shields]

we are just there to service them.