Monumental Step Forward?

[Non Sequitur]

If I didn't have to drive to two houses + comps every day, then I would be free to take on another appraisal. Even with a reduced rate, I would make more money doing desktops all day. I'm willing to go 1 hour away for my favorite clients. It would be great if some of those distant orders could be desktops. But field inspections aren't going away completely anytime soon. And I wouldn't want them to.

The problem with your line of thought is, where will all of the assignments come from? The big lie in all of this is that magically there will be 4-5 times the assignment volume just falling out of the sky into your queue. If you're staff, maybe, if you're indie that's a pipe dream. Truth is AMCs will not send that kind of volume out when they have it captured on the front end, they will pay a cubicle PAREA noob $40-50k before they send $150k worth of assignments to an indie.

So, here's the harsh reality of what's coming next month: If you're getting 1004 assignments at a rate of 1-2 a day, if they are converted to 1004Desktops then you will get 1-2 1004Desktops a day. There's no magic well of 1004Desktop assignments that will appear out of the ether. Do the math, if you can make a living with 1004Desktop volume I guess this is your gig, good luck.

 

[Aim High]

What makes no sense to me is that they have already determined the LTV to be below 90% before they order the appraisal. So I don't understand what the purpose of the appraisal is. Their whole collateral risk management process revolves around the assumption that their AVM is correct. Kind of stupid imo.

Simple! they need the appraisal so they can sell in the secondary market and package them to investors. Investors want the confidence of the product (an Appraisal). All the more reason to be cautious regarding Desktop appraisals.

 

[alebrewer]

How many floor sketches are put in the MLS...? Outside a few to be built spec homes, I don't recall ever seeing a floor plan in a listing.

According to DW, they're readily available in many MLS systems now... Of course, that hasn't reached the D/FW market...

 

[alebrewer]

What makes no sense to me is that they have already determined the LTV to be below 90% before they order the appraisal. So I don't understand what the purpose of the appraisal is. Their whole collateral risk management process revolves around the assumption that their AVM is correct. Kind of stupid imo.

Ha! yeah - I think they overlooked that part initially. They've now gone back and said they will accept loans with 91% to 92% LTV with the Desktop option, with the understanding that appraisals don't always come in at contract price...

 

[Non Sequitur]

Ha! yeah - I think they overlooked that part initially. They've now gone back and said they will accept loans with 91% to 92% LTV with the Desktop option, with the understanding that appraisals don't always come in at contract price...

Since "they" are the ones who publish the forms and guidelines, I would say they are finetuning the loan parameters as opposed to overlooked anything.

 

[J Grant]

According to DW, they're readily available in many MLS systems now... Of course, that hasn't reached the D/FW market...

I have not seen an increase in them recently, and there are still hardly ever included here on MLS listings .

Are agent suddenly going to the expense and bother of putting a floorplan in MLS to make life easy for appraisers , in case an appraisal turns out to be a desktop?

Agents typically do not want to be responsible for reporting SF living area for liability reasons. Plus, if they put up a floorplan, they might not be able to exaggerate the size /sf which they do now on a regular basis in their listings. I'll believe it when I see it ! .

 

[RCA]

Hyperbole or reality for AMCs?

Whether you want to complete desktops or not, AMCs have the big stick. They have captured the market, control the workflow, and will send these to willing staff and trickle overflow to indie "partners". The only chance we have to level the playing field is if the GSEs adopt the VA appraisal system.

1004 Desktop appraisals: A monumental step forward for appraisal modernization

Today’s announcement from Fannie Mae — the incorporation of 1004 Desktop appraisals into their Selling Guide for many new purchase loans — is a big step forward in the journey to a fully modern appraisal process.

www.clearcapital.com

Look in many cases, all that is needed is an AMC. Low LTV, conforming property, HOA, condo, good income, ....

Those appraisers doing difficult appraisals on complex properties need higher fees, because they are starving. Use AMCs where they are needed and pay higher fees for complex appraisals.

 

[shrubberyvaluation]

The problem with your line of thought is, where will all of the assignments come from? The big lie in all of this is that magically there will be 4-5 times the assignment volume just falling out of the sky into your queue. If you're staff, maybe, if you're indie that's a pipe dream. Truth is AMCs will not send that kind of volume out when they have it captured on the front end, they will pay a cubicle PAREA noob $40-50k before they send $150k worth of assignments to an indie.

So, here's the harsh reality of what's coming next month: If you're getting 1004 assignments at a rate of 1-2 a day, if they are converted to 1004Desktops then you will get 1-2 1004Desktops a day. There's no magic well of 1004Desktop assignments that will appear out of the ether. Do the math, if you can make a living with 1004Desktop volume I guess this is your gig, good luck.

Depends how many mills 100s of miles away will take the assignments for less.

 

[sputnam]

Yep. The volume of appraisal assignments is dependent (mostly) on the number of loan applications. Changing the assignment from a standard 1004 to some other appraisal product won't change the volume.

 

[Zoe]

If the federal regulators adopted the VA system and had access to GSE data, it would help appraisal independence. Complexity problems on standard fees become a problem on many assignments. I'm sure people in cookie cutter land love the VA system.

The biggest fact on VA system is it creates huge appraiser independence. They are also pretty picky on who they select to their panel. I'm surprised FHA has not already adopted VA system.

They could get GSE data for appraisers. I realize GSE's are semi private, but FHA (HUD) could get their data for appraisers.