Property Inspection Waivers (piw) The Death Of A Profession?

[EddieB]

No.

1004 appraisals are garbage. They aren't value adding to society. Capitalism has discovered way better ways but are handcuffed from implementing.

No, we're going to have to disagree. These $50 desktop reports are garbage. I've only seen around 100 but none of them were worth the cost of the ink to print.

 

[J Grant]

Yes, the volume of PIW's is not by itself going to kill off the residential appraisal business. If and when a bifurcated appraisal process becomes widely adopted, that will lead to much more disruption of the residential appraisal business than PIW's

If bifurcated appraisals become widespread, it will disrupt the profession. The appraisers who pump out volume now have some limitation on them as they have to inspect, or use a supervised trainee. With bifurcated, an appraiser can take on huge volume and cover a wide territory and the less ethical can expand to areas they are not familiar with. Staff appraisers can double or triple their volume which means over flow work now going to independents will be nill, except for the rare order that is complex or needs appraiser inspection. Rural or high end or manufactured homes might be exempt from non appraisers inspecting but we won't know that either at this point. t.

IF bifurcated are limited to certain loan criteria /certain property types and/or if some lenders or investors won't accept them, the change won't be as drastic. In any event will take a few years to unfold but good to be aware of the implications. If desktop work offers alternate income to appraisers, that can compensate somewhat...wll see what transpires,

 

[chad hampton]

Sounds similar to the days when 1 certified appraiser had 100 runners all over the state. Maybe I can get into that work. Most of those guys made a killing. Only have to work a few years then you move on to the next scam.

Sounds like progress!

 

[J Grant]

Sounds similar to the days when 1 certified appraiser had 100 runners all over the state. Maybe I can get into that work. Most of those guys made a killing. Only have to work a few years then you move on to the next scam.

Sounds like progress!

It will be difficult for more than a few to make a killing, since as soon as bifucrated gain wide acceptance, why wouldn't every appraiser expand area and take on volume- problem is there is only so much volume to go around. Add on that the fee going to the appraiser for their desktop portion will be lower than for full fee appraisals now .

 

[chad hampton]

Yeah, my post was in jest. But it reminds me of the days when you'd have 1 certified appraiser and dozens and dozens of 'trainees' running all over the state churning out meaningless reports.

Let appraiser groups in in charge of the appraisal system. It's good to see we are at least starting to get a seat at the table.

 

[azbassman21]

No.

1004 appraisals are garbage. They aren't value adding to society. Capitalism has discovered way better ways but are handcuffed from implementing.

Please enlighten us on what has been held prisoner to regulation which would replace or make the appraisal process more efficient, which would assist the banks in risk mitigation and provide them a fall guy?

 

[timd354]

News flash-
PIWs have been around for about 15 years. Here are some things that will talk you down off the ledge.

1. PIWs will only be available with a DU eligible finding. This will only happen if Fannie has a previous appraisal in the system. Therefore, new construction is out.
2. Most purchases will not be eligible. They are only possible with an LTV of less than 80%. Most purchases are less than that.
3. DU will indicate if they are “eligible” for a PIW. That means that a homeowner or an underwriter can decline the PIW and order a full appraisal. Why would a borrower want one? Well, cash out refies are capped at 70% LTV. If a homeowner has done recent renovation, they will want credit for that. Also on a purchase, if they are putting a large down payment, they will want to know if it is worth the price they are paying.

As a result, only 5% of all applications will go with a PIW.

I think that the percentage of PIW's (Fannie) and Freddie's equivalent (called an ACE) will eventually be about 10% of the transactions, which still is not enough to kill off the residential appraisal profession. As much as many of you hate CU, Fannie's need to feed appraiser data into the CU database is working for your benefit as I am absolutely certain that that is one reason that Fannie Mae is going to limit PIW's to a small percentage of transactions.

 

[timd354]

IF bifurcated are limited to certain loan criteria /certain property types and/or if some lenders or investors won't accept them, the change won't be as drastic. In any event will take a few years to unfold but good to be aware of the implications. If desktop work offers alternate income to appraisers, that can compensate somewhat...wll see what transpires,

I don't see bifurcated appraisals being allowed on every transaction. I believe that, at least initially, bifurcated appraisals will be limited to certainly LTV's, certain types of loan transactions, and possibly certain geographies and property types.