One more nail in the coffin...

[Overimprovement]

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.

 

[Non Sequitur]

Wonder if they will require support for nonlinear time adjustments and all of the fixin's (adjustment support, show your work, etc.) that they expect to see in standard 1004 reports?

 

[DWiley]

Wonder if they will require support for nonlinear time adjustments and all of the fixin's (adjustment support, show your work, etc.) that they expect to see in standard 1004 reports?

The requirement for the report to include support for market conditions and time adjustments (be they linear or nonlinear) applies to all appraisal reports.

 

[Non Sequitur]

Remember what Fannie's Senior Director of Collateral Policy said about hybrids recently?

"...– typically the most experienced and knowledgeable appraisers who appreciate the efficiency and profitability of hybrid appraisal assignments.”

Profitable?

 

[Non Sequitur]

The requirement for the report to include support for market conditions and time adjustments (be they linear or nonlinear) applies to all appraisal reports.

Thanks for the response.

Good luck with that at $125 a pop.

 

[chad hampton]

Thanks for the response.

Good luck with that at $125 a pop.

Stop it. Don’t bring real world discussions into the GSE world of make belief.

 

[Terrel L. Shields]

This expansion aims to reduce loan origination cycle time for borrowers.

What an idiot assumption. In fact, you assume everyone is sitting on their collective ***es and having nothing better to do than jump at the inspection, jump at the appraisal, and do it all for $50 each. Yeah, a real winner. Every appraiser that takes a hybrid for less than $500 ought to have their player card pulled by the board.

The requirement for the report to include support for market conditions and time adjustments (be they linear or nonlinear) applies to all appraisal reports.

Meanwhile the appraiser is supposed to complete the report in 45 minutes... I read that a couple years ago. 45 minutes? WTF? And the GSEs are good with this? Why are they asking the impossible except to set the stage for getting rid of appraisers altogether with the claim that the appraisers are not good, and the turn times were not met for those who did it right. Great plan.

Abolish Freddy and Fannie...tomorrow would not be soon enough. Mandate a real appraisal with real appraisers inspecting for all origination and all but the smallest loans. Otherwise, get the bleeding over with a thousand cuts. Just abolish appraisers and hold the management of the GSEs responsible with the economic death penalty. All their assets, including their wives and children plus all retirement, income past and present be clawed back in the event of a loss. Let them put SKIN IN THE GAME. All of their worthless hide.

FIRREA was not written in a vacuum. It was meant to help protect the taxpayer from excesses of the banksters and that includes the GSEs FHA, et al. And what have they done from day one except try to put the appraisers out of business while extracting more and more money upfront from borrowers. Does anyone think closing costs will be reduced if the appraiser is eliminated? Not a chance.

 

[Non Sequitur]

Meanwhile the appraiser is supposed to complete the report in 45 minutes... I read that a couple years ago. 45 minutes? WTF?

Oops, forgot about that. That's one of the selling points; You can make $100+ an hour!

 

[Terrel L. Shields]

You can make $100+ an hour!

And you'll only have 1.5 hours a day work... the number of appraisals is not going to increase so the number of appraisers needed is a fraction that exist now.

 

[DWiley]

Meanwhile the appraiser is supposed to complete the report in 45 minutes... I read that a couple years ago. 45 minutes? .

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.