Illinois Board Issues Warning On Hybrid Appraisals

[George Hatch]

As for "they'll still sue regardless of your disclosures and warnings" that's no more a possibility for one of these assignments than it is for any other type of assignment. Be smart about your use of data, look for indications that a particular piece of data may be inaccurate or biased, and explain what you're doing in your report.

I think the possibility is higher for these bifurcated 1004P ( whether to sue or file a complaint ) because these have never been used in volume on origination loans before. It certainly gives a disgruntled RE agent or home owner an excuse to file a complaint or sue since they can claim (rightfully ) the appraiser did not inspect and thus X was wrong or mis valued.

Appraisers sometimes already value properties lower than the contract price without getting sued for that. I do it on a regular basis. Any appraiser who doesn't realize that they also need to actively disprove the reasonableness of the contract price when they're coming in low is asking for trouble. I just had a deal last week where I came in 20% higher than the contract price and I had to get to gettin' in order to explain that disconnect.


One way or another the market and the courts will become informed about where the boundaries really are WRT the question of "what is an appraisal?" And everyone who has been saying stupid things about that is going to end up looking like a fool.

 

[J Grant]

Appraisers sometimes already value properties lower than the contract price without getting sued for that. I do it on a regular basis. Any appraiser who doesn't realize that they also need to actively disprove the reasonableness of the contract price when they're coming in low is asking for trouble.

I've had more trouble about "low" refiannce values than about short on a purchase price - only time will tell how these products fare in the after market with investors and how RE agents and home owners react .If lenders get push back and complaints ( not a board complaint, rather disgruntled borrowers) they will let fannie know hey your program is not helping it's making things worse...Unknown or maybe everyone will be fine with it. Complete unknown territory in its scope of volume. ....

I wonder if lenders have the option to opt out of this with fannie ( can they just go ahead and order an appraisal ) or do they have to submit to this protocol ...

 

[George Hatch]

The program could fail on the economic level if appraisers will just price their time/effort on these the same way they do for the conventional 1004s. We've already seen how stubborn the lenders are about paying higher costs for their appraisals.

 

[Eli]

As for "they'll still sue regardless of your disclosures and warnings" that's no more a possibility for one of these assignments than it is for any other type of assignment. Be smart about your use of data, look for indications that a particular piece of data may be inaccurate or biased, and explain what you're doing in your report.

I think the possibility is higher for these bifurcated 1004P ( whether to sue or file a complaint ) because these have never been used in volume on origination loans before. It certainly gives a disgruntled RE agent or home owner an excuse to file a complaint or sue since they can claim (rightfully ) the appraiser did not inspect and thus X was wrong or mis valued.

Yeah. Real estate agents turn on each other like snakes.

They will turn on you too.

 

[Eli]

The program could fail on the economic level if appraisers will just price their time/effort on these the same way they do for the conventional 1004s. We've already seen how stubborn the lenders are about paying higher costs for their appraisals.

They are not paying it George. I don’t get your stance just like I don’t understand the difference between a demonstration appraisal report and what is expected by people who raped the economy in 2008.

 

[Eli]

Mortgage fraud is alive and well. Let’s just jump on the band wagon.

Go right ahead. It’s all what your client wants. Lol

 

[Eli]

I’ll see you in the pokey. Lol

Don’t worry about your license. Let’s just be agents for lenders. At least some will join us in the Pokey.

 

[Eli]

Better get that “market value” definition out of the appraisal and quit unlicensed professionals from performing appraisal practice.

Train wreck is coming. Even Louisiana ain’t done yet. Just watch as states move. Would love some big dogs to meet with Tennessee appraiser coalition.

Scared? No time or money? Lol

I have contacts. We could raise money. Do a go fund me page and target all TN appraisers.

Need participants. Like big participants. TAC will be fine.

 

[George Hatch]

What's the point? These ongoing threads on this forum are a perfect example of the futility of the discussion. A live meeting might last a couple hours. We have multiple threads on these related topics - threads in which long-form discussion occurs on a scale that's wholly impossible in a live meeting setting. Hundreds of hours of thought and effort being put into this discussion on this forum by it's various participants. And regardless how many explanations each side present the hearts and minds of all the participants and the lurkers are every bit as immovable now as they were when we started.

 

[Eli]

No. I’ll leave it at that. Set that meeting up with TN appraiser coalition or other States if you want change. Where is California?

I think I saw it on a map somewhere.