Residential Appraisal Threshold Increase Becomes Official

[glenn walker]

And PIW's were supposed to knock us out, yet I've only lost 1 assignment due to them

I'm with Dublin ... the sky hasn't fallen yet

We rarely know when a PIW was used because we are not contacted to do an-appraisal and the only way you would know you lost one is if you just happened to have an-order cancelled because the lender decided to go with the PIW. Most of the smaller mortgage bankers are not using PIW'S even when offered because they do have some terms that can require a lender to buy back and the smaller guys do not want the additional risk. The big banks though are using a fairly sizable amount of PIW'S but nobody is saying what the percentage is ? My two sources at two money center banks think its about 25% of all refinances and less on purchases but I have no idea if thats close. All I do know is appraisers normally would have no way to know if a certain property went PIW.

 

[Carnivore]

Sure,
one day you'll decide you want to buy a house

a drone will monitor you as you travel through the property.
A drone will deliver the keys to you.

But, realize that even obsolete technology doesn't die,
it's just that the market for it shrinks substantially.

Just like this drone delivering Pizza

 

[norapp]

And when you "conform to USPAP" you produce an appraisal, not an evaluation.
yet,
it is evaluations that are "required". Not appraisals.

.

I'm not going to argue with you on this. You say potato, I say Potato. This is what it says...an evaluation should contain sufficient information to allow a reader to understand the analysis that was performed to support the value conclusion and the institution’s decision to engage in the transaction. If a value conclusion is being determined, confirmed or whatever I think you are working as an appraiser. Time will tell. Either way I am not sticking my neck out.

 

[Evincere]

I wonder what new business plan REVAA is going to adapt to save their AMC members from losing all those Appraisal orders that are now exempt. As they did with hybrids and bifurcated and /or Evaluations for chump change?

My second curiosity is why some AI chapters in Region X pushed for evaluations in Fl

 

[Sid Holderly]

But, many states are exempting licensed individuals to be able to do evaluations. WE would be dong evaluations outside of our license, accepted by per state law.

It is still a confusing mess. Upcoming USPAP & State License Law classes will likely have some active head butting.

https://www.appraisalinstitute.org/advocacy/evaluations/

 

[mike32716]

Evaluations are nothing new. They have been doing them for 30 years now. Banks only use them for helocs and mortgages that they will hold on the books. Evals will not qualify a loan to sell to the GSEs. Banks really don't like to hold 30 year plain vanilla mortgages on the books. They make more money on originating and selling to FNMA or on short term higher interest helocs.

It is the GSEs (FNMA mainly) that are the 800 pound gorilla. Back when the deminimis jumped from $100k to $250k appraisers thought they were toast. Nothing happened. Since the overwhelming majority of mortgages are sold to the GSEs with the govy entities close behind, the rules requiring appraisals have always emanated from them, and not the fed agencies. Now with the advent of PIWs and bifurs there is a real threat, but it isn't from evaluations.

 

[The Bob]

But, many states are exempting licensed individuals to be able to do evaluations. WE would be dong evaluations outside of our license, accepted by per state law.

It is still a confusing mess. Upcoming USPAP & State License Law classes will likely have some active head butting.

https://www.appraisalinstitute.org/advocacy/evaluations/

I wonder how your E&O will work under that scenario. After all, you are not doing an "appraisal". Will you have to get a separate policy that covers evaluations?

 

[ucbruin]

Has anyone received any communication (directly addressed to you) from your E/O carrier informing you that you will not be covered?