No Appraisal Needed

[Terrel L. Shields]

in Arkansas at 4250K is a big number

That's a big number anywhere.

 

[chad hampton]

One thing that will come out of full automation and robots taking over every job we currently do, is that we will go from a citizenry that goes to work every day to a full society of people receiving basic income checks from the govt. everyone gets the same pay. I’m not in the camp that supports that, but that would have to accompany the loss of millions of job losses.

You can’t have full automation and loss of millions of jobs without totally rethinking the social welfare aspect of society.

Even bill gates stated that he would expect the govt to tax every robot that does the job of a human. That’s how it would be funded. You want to lay off your workforce and use robots, that’s fine, but you will be taxed heavily to pay for welfare checks.

 

[Fnbpos]

So when the the de minimis was set to $250,000 back whenever, did all your work under $250,000 dry up ? No it did not... and why was that....
because Lenders need someone to blame when things go south....that is the appraiser. Many correspondent lenders use private investors who have no intention of using AV's....again Liability. This is a non-issue....was at $250,000 and will be at the new level.

 

[ucbruin]

I've heard the lenders "blame the appraiser" mantra since day one of my training....

But it appears to be an urban legend since it doesn't appear to impact appraisers....

Unless crimes are committed....

 

[Fnbpos]

I've heard the lenders "blame the appraiser" mantra since day one of my training....

But it appears to be an urban legend since it doesn't appear to impact appraisers....

Unless crimes are committed....

So who....as in lenders...have not been requiring appraisals under the $250,000 threshold ? The sky is falling crowd is AWLAYS the loudest.

 

[ucbruin]

So who....as in lenders...have not been requiring appraisals under the $250,000 threshold ? The sky is falling crowd is AWLAYS the loudest.

I believe you have misunderstood my post....

 

[Carnivore]

So when the the de minimis was set to $250,000 back whenever, did all your work under $250,000 dry up ? No it did not... and why was that....
because Lenders need someone to blame when things go south....that is the appraiser. Many correspondent lenders use private investors who have no intention of using AV's....again Liability. This is a non-issue....was at $250,000 and will be at the new level.

Actually if you think about it a moment and consider why people put minimum down for house purchase (and many people do only put minimum down).

The reason they put minimum down is not just because that's all they have(many cases it is)...but to take max. advantage of the Home Mortgage tax Deduction. Another reason they only put minimum down is to leverage there buying power of a better house or one in a better neighborhood.

I had some data on the no appraisal loans and it was startling how many loans are made with out an appraisal. What didn't bother me about that number was it was going on when we as appraisers were very busy.

Another startling estimate I read recently was an estimated 10,000,000+ BPO's are preformed annually for home loans.
This link is an example. One note about this article; near the end it gives pricing of BPO's. What we as appraisers should take strong note of is when we are asked to complete Bifur/Desks tops products we surely should be priced well above BPO's.

https://www.hg.org/legal-articles/b...and-procedure-for-the-mortgage-industry-18102

BPO use is rampant in NC in spite of the State Law.

https://bulletins.ncrec.gov/broker-price-opinions-can-violate-appraisers-act/

 

[Fnbpos]

Actually if you think about it a moment and consider why people put minimum down for house purchase (and many people do only put minimum down).

The reason they put minimum down is not just because that's all they have(many cases it is)...but to take max. advantage of the Home Mortgage tax Deduction. Another reason they only put minimum down is to leverage there buying power of a better house or one in a better neighborhood.

I had some data on the no appraisal loans and it was startling how many loans are made with out an appraisal. What didn't bother me about that number was it was going on when we as appraisers were very busy.

Another startling estimate I read recently was an estimated 10,000,000+ BPO's are preformed annually for home loans.
This link is an example. One note about this article; near the end it gives pricing of BPO's. What we as appraisers should take strong note of is when we are asked to complete Bifur/Desks tops products we surely should be priced well above BPO's.

https://www.hg.org/legal-articles/b...and-procedure-for-the-mortgage-industry-18102

BPO use is rampant in NC in spite of the State Law.

https://bulletins.ncrec.gov/broker-price-opinions-can-violate-appraisers-act/

Not all borrowers will fit into the nice pretty square known as "no appraisal needed"...as a matter, it will be quite a lot of borrowers who do not fit. I cover a market area of over 5 million people...some of you cover even larger area...there will be appraisal work for me ....it will never be completely eliminated. Get busy adapting to changes or get busy doing something else.

 

[Carnivore]

Not all borrowers will fit into the nice pretty square known as "no appraisal needed"...as a matter, it will be quite a lot of borrowers who do not fit. I cover a market area of over 5 million people...some of you cover even larger area...there will be appraisal work for me ....it will never be completely eliminated. Get busy adapting to changes or get busy doing something else.

Don't disagree with you at all. That was the point of my post you quoted.

For that matter i posted some sale data about my MSA and sale were down from a year ago, but there was still a large number of sale. Even when i divided by half the number was still large and it did not include any Refinances which if there was a way to know that refi number would most likely be substantial.

What we are probably feeling right now is the rise in Interest rates and coupled with the normal and typical Winter months slow seasonal decline.

We are approaching tax time. This usually creates a spike in home purchases as people get their return refund.

So its not doom and gloom...but decline is amplified by such a large amount of volume earlier in the year.

 

[Vermonter]

What we are probably feeling right now is the rise in Interest rates and coupled with the normal and typical Winter months slow seasonal decline.

We are approaching tax time. This usually creates a spike in home purchases as people get their return refund.

So its not doom and gloom...but decline is amplified by such a large amount of volume earlier in the year.

Exactly.

I can tell you nothing changed in my work volume when they raised the minimum to $250k and better than 90% of my assignments fall under that number.....and probably 99.9% will be under $400k.