Is FHA all that remains?

[Bobby Bucks]

Around 90% of my business is now FHA….refis, sales, FHA REO and reverse mortgage closeouts or originations. For years it was around 10-15 %. It’s like the frog being immersed in a large kettle with a small fire. It isn’t boiling yet, but it’s past tepid and getting warm. The brokerage side isn’t as busy as previous years because I’ve come to the realization that I’m just not as good looking as I used to be and competition is fierce for listings and buyer agency clients. Much of RE is so superficial. All the emails I receive industry related tell me to go Vegas and meet industry Johns and prostitutes and sign up with bottom of the barrel AMCs and buy their recommended miracle software. I’ll survive because I’ll navigate to other areas in real estate, but what will most appraisers be doing 5 years from now? The industry notables aren’t looking out for anyone except the industry notables and even they’re involved in a backstabbing game of musical chairs.

 

[Trihard]

Around 90% of my business is now FHA….refis, sales, FHA REO and reverse mortgage closeouts or originations. For years it was around 10-15 %. It’s like the frog being immersed in a large kettle with a small fire. It isn’t boiling yet, but it’s past tepid and getting warm. The brokerage side isn’t as busy as previous years because I’ve come to the realization that I’m just not as good looking as I used to be and competition is fierce for listings and buyer agency clients. Much of RE is so superficial. All the emails I receive industry related tell me to go Vegas and meet industry Johns and prostitutes and sign up with bottom of the barrel AMCs and buy their recommended miracle software. I’ll survive because I’ll navigate to other areas in real estate, but what will most appraisers be doing 5 years from now? The industry notables aren’t looking out for anyone except the industry notables and even they’re involved in a backstabbing game of musical chairs.

FHA just raised their waiver threshold also. So those FHA assignment will be greatly reduced. Moreover, the majority of those appraisal assignments will now be really high LTV which are riskier appraisals. The trend in the industry is to hang the appraiser out to dry because they will be doing all the high percentage foreclosure work. So when the whole thing collapses they will blame the appraisers who had to do all the high LTV appraisals and they will claim their AVM's and inspection waivers had nothing to do with it.

 

[Alsie35]

Yes, FHA is an increasing slice of the pie down here too ... Well over 50% the past 6 months ... and lots of it too thank the Lord ... what happens after Jan 1 2025 remains to be seen...

 

[J Grant]

Around 90% of my business is now FHA….refis, sales, FHA REO and reverse mortgage closeouts or originations. For years it was around 10-15 %. It’s like the frog being immersed in a large kettle with a small fire. It isn’t boiling yet, but it’s past tepid and getting warm. The brokerage side isn’t as busy as previous years because I’ve come to the realization that I’m just not as good looking as I used to be and competition is fierce for listings and buyer agency clients. Much of RE is so superficial. All the emails I receive industry related tell me to go Vegas and meet industry Johns and prostitutes and sign up with bottom of the barrel AMCs and buy their recommended miracle software. I’ll survive because I’ll navigate to other areas in real estate, but what will most appraisers be doing 5 years from now? The industry notables aren’t looking out for anyone except the industry notables and even they’re involved in a backstabbing game of musical chairs.

Since FHA assignments typically come from lenders/clients, those lenders usually make conventional loans as well. Is it possible that you got pigeonholed as the FHA guy ? Perhaps contact these clients ask if they have other work, list your qualifications etc.

H

 

[Tom4value]

As an appraiser with mortgage experience, I know that FHA is nothing more than just another arrow in a loan officer’s quiver. I did it prior to 2008 when I had a manager who pushed them for the income it gave the lender. I shuddered with his influence and continued with offering it when it was the best option for the borrower. Another story….

FHA is for borrowers with, sketchy credit, low down payment, high DTI or those with 100% of the down payment as a gift. Times change. During Covid, FHA appraisals were very rare. Borrowers had lower DTI due to low interest rates, reasonable prices (at first) and good down payments. Their credit was still fine.

As inflation hit, borrowers had little down payment, high credit card balances and higher interest rates. FHA became big again. Nothing weird, just a time change.

 

[Alsie35]

As an appraiser with mortgage experience, I know that FHA is nothing more than just another arrow in a loan officer’s quiver. I did it prior to 2008 when I had a manager who pushed them for the income it gave the lender. I shuddered with his influence and continued with offering it when it was the best option for the borrower. Another story….

FHA is for borrowers with, sketchy credit, low down payment, high DTI or those with 100% of the down payment as a gift. Times change. During Covid, FHA appraisals were very rare. Borrowers had lower DTI due to low interest rates, reasonable prices (at first) and good down payments. Their credit was still fine.

As inflation hit, borrowers had little down payment, high credit card balances and higher interest rates. FHA became big again. Nothing weird, just a time change.

Thanks for being the Voice of Reason, Tom!

 

[NC Appraising]

I was about to make a thread on this.

80% is FHA. 10% is heloc when the avm doesn't hit. Conventional is 10%. I only get Conventional when the home has never been appraised or there hasn't been an appraisal in a very long time..20 years.

....waivers or pfr with inspections or Hybrids only account for a small portion.......lol

 

[alebrewer]

FHA just raised their waiver threshold also.

citation, please?

 

[Tom D]

Is not FHA anal about safety issues, repairs, etc. Hard for an avm to find them. Originally, FHA was for the low income buyer with not a lot of money for purchase, then repairs discovered after moving in.

but what will most appraisers be doing 5 years from now? The industry notables aren’t looking out for anyone except the industry notables and even they’re involved in a backstabbing game of musical chairs.

Too many appraisers since certification. Good bye to mostly plantation workers. I have already transitioned back to my old fix/flip days, although i still do non AMC lenders, who like me. Mostly out of boredom.

 

[alebrewer]

I expect FHA volume to continue to increase relative to the GSE's as home affordability continues to spiral out of control. Even more so if the GSE's are privatized.