Hybrid

[Joe Flacco]

I wouldn't count the hybrid fees being adequate.

 

[hastalavista]

I wouldn't count the hybrid fees being adequate.

At this point and for me? They are not adequate.
If the fees change, they may be adequate (the last desktop I did for non-lending... on a residential property... I charged more than twice the amount of a going rate for a typical 1004 in my market). My point is, that at a certain fee, I'd do these all day long. My fee-benchmark may not be the same as another.
If my circumstances change, the current fee ($150+/-) might be adequate. What could those circumstances be? I've become housebound due to some illness/injury and I need to supplement whatever income I have.

Fees change or my circumstances change; those would result in me potentially accepting these assignments.

I don't think I'm that different from most*.

(* I said "most". Some state they will not do these for lending purposes no matter what. I'm fine with that.)

 

[DWiley]

So lets see, by your logic, a licensed doctor, lawyer or construction worker, is going to let the client tell them how to do a surgery, practice law, or build something to code? The need they are driving, is the need for an independent valuation, developed by an experienced and skilled analyst. All they need to do is ask, and we should provide the rest.

You say the rest of the world works like it does here, and somehow that is your logic that it is appropriate? C'mon Danny...

Can it be changed? Not by coming on here and complaining only. But, if the critical mass of professionals were to organize into a single voice, then at least there would be an opportunity. The power of the people has be a proven success over and over and over throughout history - why doubt its power here?

You are projecting onto me views that I did not express Please point out where I said that anything was appropriate. You cannot, because I did not. Valuers in other countries express the same concerns about FASB and the international accounting rules that appraisers in America express about lenders and their role in valuation. I didn't say anything was appropriate. I said that our situation is not unique, and I asked questions for consideration.

My biggest question was the last one - how much of the concern is driven by real worry about risk, and how much is driven by worry about preservation of income? Until there is an honest answer to that, I think a solution will be evasive.

 

[DWiley]

At this point and for me? They are not adequate...

As I understand it, no one (including Fannie Mae itself) knows at this point what the scope of work and reporting format will be for any Fannie-sanctioned "hybrid" report. So, talk about where fees are (or will land) is highly speculative.

If I were the owner of an independent appraisal company, and much of my business was based on lender work, my biggest fear would be that the other appraisers in my service area will show the same business intelligence in pricing any new service that comes along as they already have demonstrated in their current pricing.

 

[Joe Flacco]

I did like 15 or so of these desktops to find out what they are about. I think I was assigned like .9 per working day or something like that. They took me like four hours on average for the existing "hybrid". There was like one or two I was able to do between 1-2 hours. I have no idea how anybody is saying they average hour or less.

 

[Joe Flacco]

I think it is likely that in the event that the GSE's accept these, the appraisers that do hybrids will do only hybrids. If a appraiser is trying to do both hybrids and field work, they will likely be less competitive on the turn time because they basically measure turn time down to minutes. The appraiser being away from desk for other inspections basically defeats the purpose of having a third party inspector.

 

[timd354]

I wouldn't count the hybrid fees being adequate.

If and when hybrids are rolled out as a regular offering by the GSE's we will have to see where the fees end up being in the market. If the fees are too low for me to do hybrids, then I won't do hybrids and I will find some other niche that pays adequate fees....there is no use sitting around whining about it.

 

[timd354]

I did like 15 or so of these desktops to find out what they are about. I think I was assigned like .9 per working day or something like that. They took me like four hours on average for the existing "hybrid". There was like one or two I was able to do between 1-2 hours. I have no idea how anybody is saying they average hour or less.

It may not be an apples to apples comparison to what you did. There are numerous different types of hybrids out in the market right now (most of which are not GSE related, but are used for equity lines/second mortgages) and the amount of work/information required for these differing hybrid products varies greatly.

 

[Joe Flacco]

If and when hybrids are rolled out as a regular offering by the GSE's we will have to see where the fees end up being in the market. If the fees are too low for me to do hybrids, then I won't do hybrids and I will find some other niche that pays adequate fees....there is no use sitting around whining about it.

I'm not really "whining" about the fees. I am raising concerns about the impact to the valuations in the big picture based on the AMC approach to fees.

 

[Joe Flacco]

It may not be an apples to apples comparison to what you did. There are numerous different types of hybrids out in the market right now (most of which are not GSE related, but are used for equity lines/second mortgages) and the amount of work/information required for these differing hybrid products varies greatly.

Yeah well these are more slimmed down than what the GSE's are considering. So I don't understand what you are getting at.

The reporting is more slimmed down but there is really no short cut for developing a appraisal and that is where most of the appraisers time is used. It is not the reporting.