Inspection

[DWiley]

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 if fannie is on a mission to reduce borrower cost why is this the way they are doing it ( rhetorical question, they won't touch the $ thousands of lender points and origination fees) on each loan

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

LOL. Seriously? Fannie is already providing waivers in certain circumstances. If appraisers don't want to do a 1004P type appraisal, then they (Fannie) could certainly pursue another option. Maybe you don't like doing "just" the analysis and not the inspection, but how would you like doing no part at all? Think that's not possible? Then look at the thousands of BPOs done every single day.

The AI speaker addressed this at the ACTS conference last week and cautioned people to be very careful what they ask for.

 

[Proactive]

What Fannie is testing is not "better' but "good enough."

Ay, there's the rub. Someone has decided a full inspection by an experienced appraiser now exceeds the "good enough" standard.

 

[J Grant]

LOL. Seriously? Fannie is already providing waivers in certain circumstances. If appraisers don't want to do a 1004P type appraisal, then they (Fannie) could certainly pursue another option. Maybe you don't like doing "just" the analysis and not the inspection, but how would you like doing no part at all? Think that's not possible? Then look at the thousands of BPOs done every single day.

The AI speaker addressed this at the ACTS conference last week and cautioned people to be very careful what they ask for.

Point taken...lets' see how the pilot fares and how the product fares in the market. Might suit some appraisers fine.

AI speaker - nobody will speak to why fannie chose to reduce an appraisal cost which will save only a small amount to a borrower rather than go after cost savings on the thousands in lender points and fees

 

[DWiley]

Point taken...lets' see how the pilot fares and how the product fares in the market. Might suit some appraisers fine.

AI speaker - nobody will speak to why fannie chose to reduce an appraisal cost which will save only a small amount to a borrower rather than go after cost savings on the thousands in lender points and fees

Fannie has nothing to do with fees. They don't set fees. They don't collect fees. No fee motivation on Fannie's part (as has been stated multiple times in other threads). For Fannie it is a timing play, not a cost play. Hard to argue that it will not take less time if there is no appraisal.

 

[ucbruin]

Fannie has nothing to do with fees. They don't set fees. They don't collect fees. No fee motivation on Fannie's part (as has been stated multiple times in other threads). For Fannie it is a timing play, not a cost play. Hard to argue that it will not take less time if there is no appraisal.

Why is Fannie so interest in "timing play"?
Is Fannie pushing for a shorter time frame to complete a mortgage?
If Fannie has nothing to gain by appraiser fees....
What is Fannie really gaining?

 

[J Grant]

https://www.nationalmortgagenews.co...ppraiser-visits-fannie-mae-pilot-asks-why-not

Cost savings for apprasials- fannie is interested in saving time and cutting costs- how did fannie think appraisal costs would be cut without apraiser fees being cut? So Fannie is involved with fees- albiet thorugh the cost mission they have.and the fact they focused it on appraisals, not on lender points or riginaiotn fees..

A cost reduction in appraisal regardless of product would come from 1) lower appraiser fee or 2) AMC lower $ portion or getting compensated as a lender expense or 3) lender paying all or part of appraisal charge. Nobody is talking about the AMC changing its model nor lender paying all or part of appraisal so that leaves the appraiser taking a lower fee/ Fannie surely is aware of it so how can they not be thus involved in the fee aspect. their own policy directly will affect it -

 

[DWiley]

Cost savings for apprasials- fannie is interested in saving time and cutting costs- how did fannie think appraisal costs would be cut without apraiser fees being cut?

I think you missed a big an obvious issue - if there is no appraisal 20% to 25% of the time, then that will certainly reduce appraisal costs, regardless of what happens with fees for 1004P or 1004

 

[ICT RE]

I'm unaware of a single profession where determining dimensions of a completed building and mapping it out within a certain level of precision in a sketch or print is a part of formal training. If someone can suggest one I'll hang up and listen. Engineers? Nope. Architects? Might think so, but no. Home inspectors? Don't believe so. Insurance adjusters? Nah, doubt it. General contractors? No, know that first hand. Alternatively, there are plenty of professions where performing said task is an unstated, practical but unofficial part of formal training, and further sharpened through the course of actually doing business within that profession. Like appraisal.

BTW I wouldn't disagree that some appraisers are terrible at inspection/measurements. This is a field that for the majority of its existence has had minimal entry requirements coupled with fairly respectable earnings. Color me shocked that a HS grad with no related experience, or a college grad with a lib art/humanities participation ribbon, can't find their rear from a hole in the ground when it comes to spatial reasoning. Yet they still somehow find themselves enjoying the career benefits of being a fully credential professional.

The appraisal field is a profession with a foundation built upon sand, unfortunately. There was some firming up of that foundation in the last decade, but we are again going reversing and going full force the wrong direction. There was a time when this field could have modeled other professional credentialing norms like CPA, PE, CFA, actuaries, even underwriters, and entrenched itself within similar public trust contexts, but instead we modeled more after the real estate agent process. Have pulse; will credential.

 

[DWiley]

Why is Fannie so interest in "timing play"?...Is Fannie pushing for a shorter time frame to complete a mortgage?

Yes, this is a BIG focus in the mortgage industry right now. At the MBA last fall almost everyone was talking about it. We live in an Amazon/Google world but most in the mortgage (and appraisal) process are stuck still doing it "the way its always been done."

As appraisers, we still use forms that were designed primarily for paper transactions. a major overhaul is, frankly, long overdue.

 

[ucbruin]

Fannie has nothing to do with fees. They don't set fees. They don't collect fees. No fee motivation on Fannie's part (as has been stated multiple times in other threads). For Fannie it is a timing play, not a cost play. Hard to argue that it will not take less time if there is no appraisal.

"For Fannie it is a timing play, not a cost play."

I think you missed a big an obvious issue - if there is no appraisal 20% to 25% of the time, then that will certainly reduce appraisal costs, regardless of what happens with fees for 1004P or 1004

"...if there is no appraisal 20% to 25% of the time, then that will certainly reduce appraisal costs..."


I could be wrong....
These 2 statements seem like a bit of a contradiction....