The Appraisal Subcommittee Busted

[George Hatch]

separation...who cares...the mortgage broker doesn't even need the appraiser anymore....they can just estimate the value themselves

And the AVM which is being used to "validate" their AVM has replaced you for those safe/secure low-LTV loans.

Your services are no longer required for those loans.

 

[Non Sequitur]

And the AVM which is being used to "validate" their AVM has replaced you for those low LTV loans.

Your services are no longer required for those loans.

True dat. And the reason it sucks is all of the gravy has left this business. Real hard to keep a positive attitude when nearly every assignment that comes across your desk is there not randomly but because you are the last resort.

 

[djd09]

i have never seen one avm that was right...highest and best use forget about it...what the avm is good for is number hitting just like the old stretchers of eappraiseit

 

[djd09]

And the AVM which is being used to "validate" their AVM has replaced you for those safe/secure low-LTV loans.

Your services are no longer required for those loans.

i wouldn't expect the head cheerleader to say anything else...

 

[Non Sequitur]

i wouldn't expect the head cheerleader to say anything else...

Say what, the truth? When I was on the corp side running the resi department for a community bank, AVMs, Evals, etc. far exceeded appraisal report volume on the portfolio side. Not that I liked it but I reported to the Chief Credit Officer and he made those decisions.

 

[djd09]

Say what, the truth? When I was on the corp side running the resi department for a community bank, AVMs, Evals, etc. far exceeded appraisal report volume on the portfolio side. Not that I liked it but the Chief Credit Officer made those decisions.

what...do you think he told me something i didn't know...nothing more then a flip flop fish

 

[George Hatch]

i have never seen one avm that was right...highest and best use forget about it...what the avm is good for is number hitting just like the old stretchers of eappraiseit

Lenders act like lenders; they don't see the issue the same way the appraisers see it. That's because they're not appraisers.

From the lender's perspective and in consideration of their stated intent toward safe/sound lending (aka the "intended usage") an 80% LTV really only requires an 80% solution. That's the point of diminishing returns, where paying more doesn't necessarily improve the security of lender's mortgage position. Its when the potential risks are higher that the lenders are willing to spend more for the appraisal.

The (portfolio) lenders are more conservative than that on the CG side of the business where (except for SBA) the conventional lending LTVs max at 70% for improved properties and 50% for land loans. Typical terms for 5+ multifamily are 70% LTV @15yr amtz. And higher interest rates. That's because the portfolio lenders own the entirety of the loan and it's their own money that's on the line. If it wasn't for the GSEs and FHA that's where the 1-4 loans would be.

 

[George Hatch]

i wouldn't expect the head cheerleader to say anything else...

You SHOULDN'T expect me to pander to your wish list for the purpose of seeking your validation. I don't care enough about your feelings to lie to you or to lie for you. I do the same for appraisers that I do for my clients; I don't lie to them, either. And they pay me.

Realistically, I should be able to expect you to play it straight down the middle, too. Except you have constantly demonstrated otherwise.

I might be wrong and I might make mistakes about this stuff , but I don't lie about it.

 

[djd09]

your pom poms are full of ****...

 

[George Hatch]

True dat. And the reason it sucks is all of the gravy has left this business. Real hard to keep a positive attitude when nearly every assignment that comes across your desk is there not randomly but because you are the last resort.

That's the best way there is of explaining how the lenders are operating. All the quickest, easiest and most profitable assignments have been gobbled up by the faster/cheaper alternatives. What's left are the more difficult problems which require the more comprehensive SOW.