More AMC and PDC Bull

[alebrewer]

IMO it says a lot about the so-called public trust mission statement that they don't care if appraisers go broke.

I'm curious what one has to do with the other?

 

[djd09]

might not be the actual current market value of the property.

then the next appraiser uses it as a comp...and the adjustments will never make sense

 

[chad hampton]

I assume the requirements for more photos in an appraisal or because digital cameras were developed, and it became much easier to drag photos into the report as opposed to glue them like I started out doing.

Are we sure it’s because millions and millions of interiors of homes were incorrectly reported? Maybe, but that sounds like bull****.

If that’s really true, and you don’t have real professionals in a field, I would consider evaluating the low standards It takes to become an appraiser. Maybe raise the bar instead of lowering it?

Which is it?

 

[J Grant]

With regard to the future, appraising on the residential mortgage side needs tech-savvy smart people entering; however, they will not enter the field for a real estate license when, for the majority, it offers low pay and uncertain workflow combined with intense pressure and scrutiny. The smart, tech-savvy generation will gravitate toward better-paid or more intrinsically rewarding fields.

The stakeholders went in the wrong direction -lowering education entry standards while allowing AMC fee predation.

An average real estate appraiser, for example, doing 5 assignments a week of homes of 400k each, 50 weeks a year, values 100 $ million of property in a year and values $a billion in property over 10 years. Yet they want to entrust it to HS grads groveling for low fees . Of course, then the stakeholders can complain about the low quality of work or how the appraisal field is dwindling to rationalize using alternative methods, or no market valuation performed in a waiver/value acceptance.

No offense intended to any smart HS grads out there entering appraising - my comments are general, not specific to an individual.

 

[djd09]

Are we sure it’s because millions and millions of interiors of homes were incorrectly reported? Maybe, but that sounds like bull****.

photos don' t matter...they were giving loans to borrowers that couldn't pay back 10 bucks let alone a 100k...there is no revising that

 

[alebrewer]

An average real estate appraiser, for example, doing 5 assignments a week of homes of 400k each, 50 weeks a year, values 100 $ million of property in a year and values $a billion in property over 10 years.

You're making the extraordinary assumption that all those appraisals are accurate. That's a bold strategy, Cotton.

 

[J Grant]

then the next appraiser uses it as a comp...and the adjustments will never make sense

Indeed, a sale becomes a next comp and can affect prices across a market segment, leaving some folks underwater on loans.

Lending on a value above MV can lead to over-borrowing in a refi or overpaying in a purchase. Of course, an appraisal can be overvalued as well, but at least appraisers are held to a standard, and their work reviewed- thus a pattern of frequent overvaluation can be identified.

Whereas the waiver/value acceptance values just roll on- to reduce "friction" of appraisals, as they call it - there is a possibility that an appraisal below a SC price or target refi amount might kill a deal.

 

[George Hatch]

Why don't lenders and AMC;s have to actually do what they say they do ?

Wrt the so-called public trust - imo borrowers should then be given a choice whether they want a hybrid appraisal with a PDC person coming out or a traditional appraisal - since the cost is probably the same or equivalent. Is it disclosed by the lender to their loan customer upfront, at the time of application? I doubt it.

I would bet $ taht when a PDC person makes an appointment, they say they want to make an appointment to inspect the property- it is hard to imagine them saying to the homeowner or RE agent, I want to come out and do a data collection.

If I call a plumbing company, I assume a licensed plumber is coming out, not a plumbing data person who will send in photos and notes to a plumber in some other locaiton. Not giving the consumer a choice upfront regarding a hybrid or a regular appraisal, or the way an AMC will process their appraisal, is misleading to the public.

Along the lines of the lawsuit with disclosure of the breakdown of AMC and the appraiser fee. I do not see a fee breakdown disclosure as a great solution; however, it could deter the most egregious fee splits and at least hold the AMC and lender accountable and let them know you are being watched.

Appraisers are the ones who assert these values. It's our primary stock in trade. It's the only attribute that makes our wrk marketable; without it our opinions are no more useful to the decision maker than those of any other party in their transaction.

If you need to be loved valued and treasured by your clients then you got into the wrong line of work. Should have stayed in sales. That line of work is all about selling the dream.

 

[djd09]

Indeed, a sale becomes a next comp and can affect prices across a market segment, leaving some folks underwater on loans.

Lending on a value above MV can lead to over-borrowing in a refi or overpaying in a purchase. Of course, an appraisal can be overvalued as well, but at least appraisers are held to a standard, and their work reviewed- thus a pattern of frequent overvaluation can be identified.

Whereas the waiver/value acceptance values just roll on- to reduce "friction" of appraisals, as they call it - there is a possibility that an appraisal below a SC price or target refi amount might kill a deal.

they had to separate the appraiser from the mortgage broker...so the mortgage broker could estimate value themselves...don't believe? ask DW

 

[J Grant]

Appraisers are the ones who assert these values. It's our primary stock in trade. It's the only attribute that makes our wrk marketable; without it our opinions are no more useful to the decision maker than those of any other party in their transaction.

It's an evil world out there.

Others and I are commenting that few appraisers will enter or stay in the res lending side who are willing to assert these values for the extremely low pay and poor working conditions.

The GSEs know that and as you said, seem not to care - it is not all an evil world across the board, just certain segments of it are. For awhile, res lending oversight seemed to be going in a good direction, then it reversed.