Hybrid

[Eli]

Here you go T:

 

[Eli]

One more for you T:

 

[DWiley]

Why is the assumption made that adding a 3rd party inspector into the mix will speed up the process? Reduced turn time from AMC & Appraiser vs. AMC & Inspector & Appraiser?
Who is the inspectors client? Who selects the inspector?

Forgive me if these questions have been addressed...hard to find simple answers within 79 pages and counting.

For the existing "hybrid" products/processes, there is no need to assume anything. Those turn times are known by the users of those services, and they can easily compare them to the turn times they get for "traditional" services. The thing that is unknown is where Fannie will land with regard to SOW and report content and how that will compare with current "hybrid" services.

 

[gregb]

Mortgage Insurers have nothing to do with the decision to remove PMI. That is the lender/servicer's call. If the lender does not want us to insure a mortgage any longer, all that they have to do is to send us a cancellation request or stop paying the premium and we will cancel coverage. Coverage is required to be cancelled on monthly policy's due to federal law/regulation when the principal balance of the mortgage is first scheduled to reach 78 percent of the original value of the secured property. PMI can also be terminated upon the borrower's request under certain other circumstances that would require a current valuation of the property. Whether a lender would accept a bifurcated appraisal for such purposes is their call.

Always scratch my head when a home owner calls me for a PMI removal appraisal and they say, "our lender told me to select an appraiser."

 

[hastalavista]

There are some real estate agent sites with agents talking about doing the exterior inspection for the hybrids and they are saying they get $25 from Servicelink. Appraisers are reporting that they are receiving $50-$75 (Not from Servicelink). You do the math.

I don't doubt those numbers. I've told you that the fees to appraisers in my area are double that.
But if this program is going to expand into Fannie World, then I'm telling you (and I could be wrong) that it is my opinion that the fees will go higher. Always, that fee-flooring is set by the low-bidder. But the math is the math is the math. It works at $450 to the client and $250-$275 to the appraiser.
I do think there are plenty of appraisers who would do them (and do a credible job) at those fees. You may disagree (which is fine).

 

[Joe Flacco]

I don't doubt those numbers. I've told you that the fees to appraisers in my area are double that.
But if this program is going to expand into Fannie World, then I'm telling you (and I could be wrong) that it is my opinion that the fees will go higher. Always, that fee-flooring is set by the low-bidder. But the math is the math is the math. It works at $450 to the client and $250-$275 to the appraiser.
I do think there are plenty of appraisers who would do them (and do a credible job) at those fees. You may disagree (which is fine).

Do you think it is likely that the plenty of appraisers doing them for $50 do a credible job?

 

[Eli]

Three in a row:

 

[timd354]

Wow, Timd, so your a mortgage insurer. You work for a PMI company? I never realized that.

I have more questions now. How much do you insure? What are your ramifications and limiting conditions? Etc.?

You have no clue, so of course you never realized that despite me stating that scores of times here on the AF, including numerous times directly to you.

To answer your questions, I do not personally insure any mortgages but my company's insurance in force is over $100 Billion.

If you want to know the limiting conditions in an MI policy, go look it up for yourself...All of the major Mortgage Insurers' master policy documents can be found online.

 

[timd354]

It’s all clear now since I know where your bread and butter is with a PMI as your insurer.

Nothing is clear to you and that is rather obvious. Someone with actual competence in this business would realize that the Mortgage Insurer is in first loss position when a loan defaults, so it is clearly in the Mortgage Insurer's best interest to control and mitigate mortgage risk, including collateral risk, to the extent that the MI possibly can.

 

[hastalavista]

Do you think it is likely that the plenty of appraisers doing them for $50 do a credible job?

On the face of it, it is hard to believe.​

I wanted to give that answer (which is my initial, reactive-answer) before I added a qualifier, which is..

But I'd need to see the intended use and SOW to really make a credible conclusion.​

So, yes. At $50, I'm skeptical. (my bold for emphasis)

Now, let me ask you the same question with a modified fee rate:
Do you think it is likely that the plenty of appraisers doing them for $150 do a credible job?

And, slightly modified further:
Do you think it is likely that the plenty of appraisers who would do them for $200-$275 and they'd do a credible job?

Because now what we are talking about is the fee (not the assignment type or SOW or intended use).