One more nail in the coffin...

[Tim Hicks (Texas)]

Once again, if nobody would do them, they would not be an option.

It is time to defund Fannie and Freddie, starting with Freddie.

 

[Non Sequitur]

Read it where? I have never heard anyone say that in regards to a GSE hybrid.
I have heard that claim for some of the proprietary hybrid products that do not involve the same SOW as GSE work.

C'mon, at $100-25 a pop it better be 45 minutes or you're in the hole.

Either way, now that the cat is out of the bag the partners who helped develop this mess are overjoyed on LinkedIn. "It’s official—Hybrid Appraisals are now in policy!", "Bring on the hybrids." and "Gamechanger!" are trending. Meh, I'm sure the GSE were happy to help.

 

[Tim Hicks (Texas)]

Just received today:


To increase appraiser efficiency and capacity, we’re expanding our hybrid appraisal policy option. Hybrid appraisals utilize a third-party property data collection that is provided to the appraiser for the completion of an appraisal using appraisal Form 1004 Hybrid or Form 1073 Hybrid.

Hybrid appraisal property eligibility will align with traditional appraisals except for the following exclusions:

• 2-4 unit, co-op, and manufactured home properties;
• Construction to Perm, HomeStyle® Renovation and HomeStyle® Energy Loans; and
• Proposed construction.
• This expansion aims to reduce loan origination cycle time for borrowers.

Effective: This change is effective March 22, 2025.

So...pretty much ANY loan will now be eligible for a hybrid product. "To increase appraiser capacity.". Yeah, we'll all have plenty of time now with no business.

Quick poll: How many appraisers on this forum have over a three day turn time for residential appraisals?

WE are not the delay in loan origination cycle time for borrowers!!!!!!!!!!!!!!!!!

 

[glenn walker]

The Ship Sailed keep it going as long as you can but if you need more than a few years it may be time to close shop and do something else.

 

[Tom D]

Just finishing a couple of row homes to flip. Nobody has aggrevated me, and profits look great. Part of going back to it was boredom. I still will do appraisals for my non AMC friendly clients, but how many will that ever be. Never like before. Gone with the wind, appraisers lost that war.

 

[RustyTapeMeasure]

Correct. All the USPAP and GSE requirements of a full report, with a small time savings, and about 20%-30% of the fee.

A serious question: Do the GSE's REALLY expect experienced appraisers to remain in the residential mortgage game at a 25% fee? It seems clear that the VOLUME of total orders will NOT increase, so ALL that is happening is a collective 75% reduction in income, and a slight (gas money) decrease in expenses. Sorry, that model comes NOWHERE close to working for me.

And I guess no one is concerned either that appraisers will lose touch with their markets by never actually being in them.

Of course many appraisers will leave the profession--that is already happening. The first appraisers to leave will be the most experienced, and competent--those with other options. What will be left is newbs and PAREA grads. It's almost as if no one wants appraisers around anymore. [thinking emoji]--AF emojis not working.

Your points are spot and and this has been the obvious outcome for 2-3 years now.

 

[RustyTapeMeasure]

What this opens the door for is just about anyone (and watch, this WILL include the homeowner with cubicasa or similar) to do the 'inspection'. I am sure they will always show all the deferred maintenance and repair needs, the foundation cracks, etc. Then some newb on a panel of 'appraisers' in any state, with full national MLS access, will put the actual reports together. Eventually, that part will be completed via AI. That seems clear to me, what with the machine-readable forms Fannie is bragging about in the new forms coming soon.

I give residential appraising 3-5 more years max, and then there will be fewer than 10% of the current appraisers remaining.

IMO your 3-5 year ETA is far too long.....maybe that many who have licenses/certifiations but have not been used for the remaining year or two of already paid fees. Dead Man Walking. Wish I was either younger or older then I am, adjustment would have been far easier to adapt. This amazing expertise of RE Appraising, values, analysis does not seem to translate into anything else.

 

[Non Sequitur]

IMO your 3-5 year ETA is far too long.....maybe that many who have licenses/certifiations but have not been used for the remaining year or two of already paid fees. Dead Man Walking. Wish I was either younger or older then I am, adjustment would have been far easier to adapt. This amazing expertise of RE Appraising, values, analysis does not seem to translate into anything else.

Yeah, there hasn’t been any good news for resi appraisers in at least a decade.

 

[J Grant]

C'mon, at $100-25 a pop it better be 45 minutes or you're in the hole.

Either way, now that the cat is out of the bag the partners who helped develop this mess are overjoyed on LinkedIn. "It’s official—Hybrid Appraisals are now in policy!", "Bring on the hybrids." and "Gamechanger!" are trending. Meh, I'm sure the GSE were happy to help.

The GSE hybrid 1004 forms are the same appraisal we do now; only we do not inspect; idk what the fees are because I do not work for Any of the AMC's who assign them, I imagine as usual it is teh lower bidder or they are done by staff appraisers.

But the proprietary/ online forms of hybrids (or desktops ) where claim it should take 45 minutes - some years back, I tried to do a few and. To achieve credible results, I could not finish it in less than 3 hours. Maybe if I did them more often it would have been 2.5 hours. Anyone completing them in 45 minutes would have to be data dumping and signing their name. There is no way to take the time to analyze, research, verify, or qualify the comps and data in 45 minutes. I completed 2 or 3 and then stopped accepting them. A total time suck and nightmare. Sure, some people do them -idk how an appraiser, or their spouse or HS kid or whowever they pay $10 to and stick in front of a computer manages to do one in 45 minutes.

 

[Mejappz]

From our friends over at Appraisers. blogs.