Inspection

[ucbruin]

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.

You haven't addressed what Fannie gets out having quick turntimes if they have no interest in fees....

 

[DWiley]

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



"...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....

Yep. I should have said it is primarily a timing play, and I should have been more careful with regard to the terms "fees" and "costs." I was multi-tasking

 

[DWiley]

You haven't addressed what Fannie gets out having quick turntimes if they have no interest in fees....

Its not just turn times, it is the whole mortgage experience. Typical lenders still operate like dinosaurs, and the way they do business is a threat to their existence given the attitudes of younger consumers. If they do not modernize they risk losing the generation that is used to the Amazon/Google world. A truly tech-centric private lender coudl be a HUGE threat to traditional lending, and the traditional lenders know it.

 

[Terrel L. Shields]

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

So, next time I need an operation I will tell the doctor his scope of work and fee. And be quick about it, too, so as to cost me the least money. Sometimes we actually need to be a participant in the scope of work decision...I didn't realize it was a Yes/No decision. USPAP makes it sound like a mutual decision of what is best. But I guess...Fannie is Lola

​

 

[J Grant]

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

I did not miss it, waiving appraisals on some properties that resduces costs ( to those borrowers) but the link I posted has a chart of projected fees for non traditional appraisals including 1004 P, so that is the discussion...

Appraisers make Zero $ when a waiver is ordered ( unless borrower wants an appraisal anyway or needs one for a contract contingency)

Seems fannie will be ordering an inspection on every property and using that to determine whether to grant a waiver, or order an appraisal and then what kind of appraisal (desktop, 1004P or 1004) .I Said before and will say it again, some appraisers might consider dropping their appraisal incense and run around as no liability inspectors, if a large cadre of the inspections ordered will be from non appraisers.

If they use appraiser to inspect , will their liability be higher than a non appraiser?..Will they have to be disclosed as contributing substantial real property appraisal assistance while a non appraiser won;t need that disclosure? Or if an appraisre sticks to "data gathering" and offers no opinion they won;t need the sig assist disclosure either?

 

[ICT RE]

If we're streamlining things at the behest of the millennials and Gen Z-ers, can we just go ahead and firstly focus our attention to the Federal Government.

That'd be great! Thanks in advance!

 

[ucbruin]

Its not just turn times, it is the whole mortgage experience. Typical lenders still operate like dinosaurs, and the way they do business is a threat to their existence given the attitudes of younger consumers. If they do not modernize they risk losing the generation that is used to the Amazon/Google world. A truly tech-centric private lender coudl be a HUGE threat to traditional lending, and the traditional lenders know it.

And why does Fannie care about this?
And how does Fannie profit from speed?

 

[J Grant]

Not that what I Think will change it, but imo fannie is making a huge blunder going for speed. Their reasons are laughable ( or cryr inducing) - consumers expect an Amazon like service and want a digitized mortgage expeirence.

And of course lenders make $ if they close a day sooner and get the funds or snag a borrower faster before change mind. There is no, as in zero benefit from a prudence standpoint to increased speed. It is not a timed race or car ride where if you get there sooner it matters. OF course timeliness is importnat and appraisals are delivered faster than ever - many 48 hour turn time from order.

The billions yearly in mortgage loans can upend the economy and housing markets-we saw it in the crash. These loans are for 30 years, what is 24 hours more or less. Seed is sold by AMC;s to compete- but speed can be dangerous- try driving on a slippy road at 80 mph vs 30 mpth. The users and investors and tax payers won't know for years the impact, test pilot 2-3 years is not long enough tosee loans mature n the pipeline. Plus the companies in the test pilot are on good behavior , offering nice fees to ge good results. When it hits market and they push inspection fees down and faster turn times watch results degrade/

RE consumers wanting a digitized experienced/amazon like service, consumers go where the low rates and down payment is and that is Fannie and FHA. They'll wait a few weeks to get it . Watch the slow drip pain if they miss a payment and go into default or short sale. Where is all the amazon speed then...pathetic, -t is the disgraced CEO no longer at fannie whose brainchild was the 1004P since he believed appraisers should not be in the field but at a desk...

 

[DWiley]

And why does Fannie care about this?

You know who Fannie buys loans from, right? That is why they care. If private equity, using more modern methods, replaces traditional lenders, what is the effect on the GSEs?

 

[ucbruin]

Not that what I Think will change it, but imo fannie is making a huge blunder going for speed. Their reasons are laughable ( or cryr inducing) - consumers expect an Amazon like service and want a digitized mortgage expeirence.

And of course lenders make $ if they close a day sooner and get the funds or snag a borrower faster before change mind. There is no, as in zero benefit from a prudence standpoint to increased speed. It is not a timed race or car ride where if you get there sooner it matters. OF course timeliness is importnat and appraisals are delivered faster than ever - many 48 hour turn time from order.

The billions yearly in mortgage loans can upend the economy and housing markets-we saw it in the crash. These loans are for 30 years, what is 24 hours more or less. Seed is sold by AMC;s to compete- but speed can be dangerous- try driving on a slippy road at 80 mph vs 30 mpth. The users and investors and tax payers won't know for years the impact, test pilot 2-3 years is not long enough tosee loans mature n the pipeline. Plus the companies in the test pilot are on good behavior , offering nice fees to ge good results. When it hits market and they push inspection fees down and faster turn times watch results degrade/

RE consumers wanting a digitized experienced/amazon like service, consumers go where the low rates and down payment is and that is Fannie and FHA. They'll wait a few weeks to get it . Watch the slow drip pain if they miss a payment and go into default or short sale. Where is all the amazon speed then...pathetic, -t is the disgraced CEO no longer at fannie whose brainchild was the 1004P since he believed appraisers should not be in the field but at a desk...

"Not that what I Think will change it, but imo fannie is making a huge blunder going for speed."

Especially since DW makes it seem that Fannie will not gain financially....
Weird....