PDC + Value Acceptance

[bluechip]

SURPRISE SURPRISE....I knew this was going to happen. JUST SAY NO FOLKS. KEEP SAYING NO.

I just saw this. Fannie Mae suggests appraisers become "data collectors" since they are being driven out of business by Fannie Maes new policies. "Appraisers are generally well qualified to perform PDC.
Diversifying your business may be as simple as signing up with a technology provider, learning to use their app, and starting to receive orders. One potential benefit is that it allows appraisers who enjoy
field work to specialize in that while eliminating their liability related to developing an opinion of value."

They don't mention the minimum wage problem associated with this product.

 

[J Grant]

SURPRISE SURPRISE....I knew this was going to happen. JUST SAY NO FOLKS. KEEP SAYING NO.

I just saw this. Fannie Mae suggests appraisers become "data collectors" since they are being driven out of business by Fannie Maes new policies. "Appraisers are generally well qualified to perform PDC.
Diversifying your business may be as simple as signing up with a technology provider, learning to use their app, and starting to receive orders. One potential benefit is that it allows appraisers who enjoy
field work to specialize in that while eliminating their liability related to developing an opinion of value."

They don't mention the minimum wage problem associated with this product.

Staff appraisers at these AMC;s have no choice and will jump between inspections and the appraisal portion as directed. This whole "modernization" effort, now that the details are out, appears like it was designed to enrich a group of AMCs who can monetize the fast food cut-up of an appraisal. Or maybe that's just a giant coincidence.


Not every lender is going to order these products, because it is a lender's choice what type of appraisal to order. Not every lender uses an AMC, and the cost of a hybrid will probably be the same or similar to a borrower. The hybrid use will mainly be from the AMC's who profit from it. But they are a sizeable part of the market, unfortunately so it it will adversely affect appraisers.

The attrition of a volume of orders that will take place due to waivers/value acceptance is unknown. How unevenly if affects appraisers might be the question.

As far as fee appraisers signing up to do "data collection", if anyone wants to do them, so be it. I don't think the volume r the pay adequate enough to entice many appraisers. At some point, it won't pay to maintain a license and insurance and software for a measly return. Just drop the appraisal license then and do data collection as a nobody, or a RE agent ( almost the same thing lol, sorry)

Whereas a RE agent or other party has none of that investment. Am sure these AMC's will find enough RE agents and other folks to do them even if the turnover is high which I predict it will be - but these companies will never admit it if that happens. Corporate spin and all,, as they keep advertising what a great opportunity it is for people.

 

[shrubberyvaluation]

Staff appraisers at these AMC;s have no choice and will jump between inspections and the appraisal portion as directed. This whole "modernization" effort, now that the details are out, appears like it was designed to enrich a group of AMCs who can monetize the fast food cut-up of an appraisal. Or maybe that's just a giant coincidence.


Not every lender is going to order these products, because it is a lender's choice what type of appraisal to order. Not every lender uses an AMC, and the cost of a hybrid will probably be the same or similar to a borrower. The hybrid use will mainly be from the AMC's who profit from it. But they are a sizeable part of the market, unfortunately so it it will adversely affect appraisers.

The attrition of a volume of orders that will take place due to waivers/value acceptance is unknown. How unevenly if affects appraisers might be the question.

As far as fee appraisers signing up to do "data collection", if anyone wants to do them, so be it. I don't think the volume r the pay adequate enough to entice many appraisers. At some point, it won't pay to maintain a license and insurance and software for a measly return. Just drop the appraisal license then and do data collection as a nobody, or a RE agent ( almost the same thing lol, sorry)

Whereas a RE agent or other party has none of that investment. Am sure these AMC's will find enough RE agents and other folks to do them even if the turnover is high which I predict it will be - but these companies will never admit it if that happens. Corporate spin and all,, as they keep advertising what a great opportunity it is for people.

The question I have are why do lenders want AMCs that siphon most of the money while looking for the cheapest appraiser. Is it that 24 hour turntime after shopping it around for a week or 2?

Those AMCs using these products will probably blackball any PDC inspector who points out any negatives and does not overstate the condition or quality of the property.

This is another reason PAREA is dangerous. You have people with no skin and plenty will not care about losing the license that took no effort to get. Why not capitalize the next time the market gets hot and do whatever clients tell you to for work regardless of the ethics or law. Those promoting PAREA will be taking advantage of them. I'm not saying all PAREA members will be unethical, but they only need a small percentage to be unethical to push through bad products and there is another crop ready a few months later.

 

[ucbruin]

"Those AMCs using these products will probably blackball any PDC inspector who points out any negatives and does not overstate the condition or quality of the property."

I disagree....

 

[Flakey]

Reminds me of times in the past when a homeowner, relative or friend would say "How do you become an appraiser? Looks easy, I want to do it.". I should have said "Just wait"

 

[J Grant]

The question I have are why do lenders want AMCs that siphon most of the money while looking for the cheapest appraiser. Is it that 24 hour turntime after shopping it around for a week or 2?

Those AMCs using these products will probably blackball any PDC inspector who points out any negatives and does not overstate the condition or quality of the property.

This is another reason PAREA is dangerous. You have people with no skin and plenty will not care about losing the license that took no effort to get. Why not capitalize the next time the market gets hot and do whatever clients tell you to for work regardless of the ethics or law. Those promoting PAREA will be taking advantage of them. I'm not saying all PAREA members will be unethical, but they only need a small percentage to be unethical to push through bad products and there is another crop ready a few months later.

A number of lenders who use an AMC - actually OWN that AMC ( as a subsidiary with its own name.) Among the other corrupt sweetheart changes made the original HVCC, lenders lobbied for, and won, the right to own a captive order AMC -so through the subsidiary, the lender profits from the AMC money siphoned off appraisal fees.

The other reason is some lenders just want the convenient one-stop shopping of an AMC - at least those at the top do, the individual loan officers are often not happy with the service or quality.

 

[George Hatch]

It's just not that deep:

That which isn't prohibited is allowed​

Principle of substitution (which is buyer-defined)​

Supply and demand​

​

 

[OSU Beavers]

They say that Appraisers can still do Property Data Collection Instead of being paid several hundred dollars (over $1000 a pop during the plandemic) per appraisal, you will now be paid $100 or less and the desk appraiser gets one or two hundred.

Since few appraisers are willing to spend that much time and mileage running down inspections, YES they WILL be using Realtors and door dash drivers for PDC. I have watched their YouTube training videos, YES they do require the inspector to make professional observations including what UAD Condition class the property is in.

 

[J Grant]

It's just not that deep:

That which isn't prohibited is allowed​

Principle of substitution (which is buyer-defined)​

Supply and demand​

​

It is a bit deeper than that, as it is manipulated by supply and demand due to regulations and HUD payout of bundled fee services, which enable the AAMCs to control a large volume of work and thus be in an atypical position wrt supply and demand compared to the free market .
The American taxpayers are the ones backing up the mortgages which makes it more layered -

 

[Cob]

I am already "Diversifying" by working in another industry since late January, appraisal work still trickles in enough that I can handle doing both, I for one am not going to participate in completing these kind of appraisal orders that I didn't go see and measure the property, after 22 years of appraising, I'm slowly moving towards getting out all together, but it seems like Fannie/Freddie and GSE's are pushing me out faster than I was on my own, them pushing this on appraisers is going to be a MESS to put it lightly, I'll be watching from the sidelines.