Inspection

[J Grant]

A specious argument, at best. How many people have you actually trained? I have trained many who are now certified, and while it is true that I used the inspection process as a training opportunity, it is equally true that there are no such requirements. One could become a certified appraiser without having performed a meaningful number of property inspections.

Anyone who thinks the lack of required formal education for appraisers will not be used by those promoting third party inspection is ignoring reality. I feel quite sure that any power user could produce numerous examples of inspections by certified appraisers that are no better than the inspections of various third parties. As a state reviewer there was no shortage of reports in which the diagrams and measurements provided by the appraiser did not match the photos of the property. And, forgive me if I am wrong, but wasn’t there a recent thread defending the practice of just using the tac sketch? We need to see that our own house is in order before we go after others - but it my be too late for that.

This move to bifurcated has nothing to do with the quality of inspections by appraisers- since they want the appraiser to inspect for higher value and complex/ properties with r low down payment etc (in other words where inspection is more important, they will have the appraiser do it. -

The idea that RE agents will do better is laughable.

This is about a bid to cut costs and get volume from appraisers who will stay at desk instead of going to properties...Specious arguments indeed !

 

[J Grant]

Ironically enough a new thread was started in a FB appraiser group earlier today about what a poor job appraisers do inspecting/measuring

Link please? It's possible...so what..people talk about all kinds of things and appraisers are highly critical of each other. And yes some may do a poor job on the inspection, if so and it impacts results, a client can opt not to use them.

If another party inspects and does a great job, fine but when real market conditions come in for these products with low pay to inspectors and fast turn time pressure on them, it will affect results

 

[J Grant]

If the reason for this is supposed to be to get "better" inspections they would not consider RE agents , they would be engaging home inspectors or architects /engineers and promising competitive fees to get them on board.
GSE's say reason for 104 P is lower costs and increased speed.

 

[DWiley]

If the reason for this is supposed to be to get "better" inspections they would not consider RE agents , they would be engaging home inspectors or architects /engineers and promising competitive fees to get them on board.
GSE's say reason for 104 P is lower costs and increased speed.

No one said it was about "better" inspection. What Fannie is testing is not "better' but "good enough." They are testing 7 different labor pools, not just agents. My bet is that they let the data speak for itself.

 

[Terrel L. Shields]

How do you test which labor pool is better? Who is the "standard" against which you measure? Measuring performance implies there is a control group and a test group, or some metric to compare results against, not just against each other.

 

[J Grant]

Lef Fannie spend resources testing the 1004P. They can do whatever they want. But when they roll it out, appraisers should charge MORE for their appraisal analysis portion. Watch how fast this product would disappear if appraisers did that. lol

Or give no discount and charge same as you do now, for the folks doing already low margin already beaten down fee AMC work.
If Fannie is concerned with cost reduction to the borrower let them figure out a way, aka thousands in dollars in points and fees from lender and large AMC fees . spread the AMC fee out in a loan as management charge it will save the $ in the upfront borrower charge regardless of what kind of valuation product is ordered. All the fees to borrower are bloated on every product with AMC involvement why isn't fannie tackling that as their big public service mission ?

 

[ucbruin]

Lef Fannie spend resources testing the 1004P. They can do whatever they want. But when they roll it out, appraisers should charge MORE for their appraisal analysis portion. Watch how fast this product would disappear if appraisers did that.

Why should appraisers give any discount because they decide to insert a non appraiser in ? If Fannie is concerned with cost reduction to the borrower let them figure it out. There are thousands of dollars in points and fees from lender they can cost reduce . Not our problem. They will increase turn time pressure and appraiser will be working second hand from an inspection, having to download someone else's work etc. That costs us money. Do not fee reduce a penny from what you charge now on the appraisal portion .

When the 2055 1st came on the scene, I felt the same way as you do regarding fees....
Still do....

 

[J Grant]

When the 2055 1st came on the scene, I felt the same way as you do regarding fees....
Still do....

I do very few 2055 , it is not a widespread product in lending work. It is still an inspection, but an ext one- not worth a discount or a very small one. A PITA ...though I have not seen 2055 used for origination purchase or refi seem more an REO o r pre focuseure or HELOC/similar.

 

[George Hatch]

I see we're still discussing the issue from the perspective of what we want and what we think is necessary instead of the perspective of what the direct and secondary users want and think is necessary for their usage.

I think it's quite possible that we can talk our way out of this market niche entirely, at which point our users will take the "appraisal" component of these assignments to our non-licensed competition.

 

[J Grant]

I see we're still discussing the issue from the perspective of what we want and what we think is necessary instead of the perspective of what the direct and secondary users want and think is necessary for their usage.

I think it's quite possible that we can talk our way out of this market niche entirely, at which point our users will take the "appraisal" component of these assignments to our non-licensed competition.

How can non licensed people do licensed appraisal work?

Appraisers can do this market niche if they want, but I fail to see why we should be reducing our fee unless it was a good fee to start. I do very little lower fee AMC work so I assume the begetter pay clients if they use 1004P will pay better for it . I was trying to advise the folks already getting low AMC fees do they have the room to lower it further ? (and the post was also a bit of sarcasm to raise the fee and watch Fannie react -we know it won;t happen meek appraisers won't do it )

If fannie is on a mission to reduce borrower cost why is this their answer? Rhetorical question, they don't want to touch the $ thousands of lender points and origination fees.

The 1004P is predicated around appraisers completing the appraisal portion. Which non "licensed competition " would do the appraisal portion?