The New Appraisal Industry

[TerryRohrer]

Trainees providing the only physical inspection while their supervisor signed as “did inspect” was a routine issue.

There are folks at the very highest levels of the appraisal regulatory bureaucracy that were (are?) doing the same.

 

[Surf Cat]

I disagree. In 2026 I think most lenders still will not accept a "did not inspect" trainee.

But they'll happily accept subject inspections from the realtor or Uber driver PDC with no appraisal classes under their belt for hybrids...... that the licensed appraiser at the desk must rely on for valuation.

 

[chad hampton]

And to think that 15 years later, the same people could care less who does the appraisal inspection.

Turns out those supervisors who had 20 trainees running around the state were just ahead of their time. They should bribed the GSEs back then.

Here’s an example of the GSEs telling appraisers how to do appraisals. Saw a FB post last week about adjusting for sale concessions with a screenshot of a sales grid with adjustments. About 150 replies later, no one agreed on if it was right or wrong. But opinions were strong on all sides. If the gses put out guidelines and 2 out of 100 don’t agree, then that’s on those 2 appraisers. If 25 feel one way, 30 another way, 25 another way, and 20 are so frustrated that they stopped giving a damn, then the guidelines need to be revisited. Or done away with altogether.

 

[John Hassler]

There are folks at the very highest levels of the appraisal regulatory bureaucracy that were (are?) doing the same.

I’m not aware of that, but I’m fine with them losing their license.

 

[Surf Cat]

If 25 feel one way, 30 another way, 25 another way, and 20 are so frustrated that they stopped giving a damn, then the guidelines need to be revisited. Or done away with altogether.

I say we Channel Melania....

 

[NC Appraising]

Saw a FB post last week about adjusting for sale concessions with a screenshot of a sales grid with adjustments. About 150 replies later, no one agreed on if it was right or wrong. But opinions were strong on all sides. If the gses put out guidelines and 2 out of 100 don’t agree, then that’s on those 2 appraisers. If 25 feel one way, 30 another way, 25 another way, and 20 are so frustrated that they stopped giving a damn, then the guidelines need to be revisited. Or done away with altogether.

Saw that one also. In my opinion, what we sign on a daily basis, the 1004 with the definition of market value and seller conessions is clear.....

It's clear to them too....they are just making excuses or trying to justify the need to make value.

In virtually all sales transactions....

In NC, what home warranty and real estate fees are about the only things the seller pays in virtually all transactions.

The truth is, its the GSEs and Huds fault. Currently, most builders are advertising up to 3% and 6% in concessions....the exact limit.

BUT, they want you to deduct seller concessions. Damn if you do, damn if you dont. They allow it, but then want you to deduct it???

Remember virtually....all transactions. That means both the resale market and the new construction market. Or NOT what is currently taking place becuse people are broke. 30% of sales are cash buyers with no seller conessions....virtually all applies to all transactions.

Now, appraisers are to blame also...they lack the ethics to deduct the seller conessions. They know if they do deduct that $30k in rate buydowns, no more work from the builder owned mortgage company or the builders preferred lenders.

Ps. A lot of lenders are not reporting the rate buydowns or other conessions on the MLS. Most appraisers are just using the MLS sheet, and moving on. I just did one where I verified the concessions. On alamode smartexchange, not one single appraiser verified the concessions...all had zero.

It should be mandatory for the appraiser to review the settlement statement...if the builder refuses, the loan cannot go to the gses or FHA. Simple as that.

 

[NC Appraising]

One of the top issues are trainees and their mentors....https://www.ncappraisalboard.org/newsletter/news.htm

The other issue is the multiple warm bodies that are located in different states working on one report...

I have a report in front of me right now..large national firm that is hiring. Three warm bodies helped....

 

[Elliott]

"Old Soldiers Never Die they just fade away" -- General Douglas MacArthur

When I was a young buck, word was 'go into the service industry, manufacturing is dead.' I think that going into a trade (electrician, plumber, skilled trades) would be a better path today than residential appraisal.

 

[alebrewer]

How appraisals were ordered:

• Brokers and loan officers directly selected and contacted appraisers
• Appraisers competed on turn time, fee, and “deal-friendliness”

Mostly this:

"Deal-Friendliness"

 

[J Grant]

Mostly this:

"Deal-Friendliness"

Now appraisers compete to get AMC work on "deal friendliness " AND on how much kickback (oops fee split ) their super low bid offers the AMC.

Which has the Darwinian effect of driving not only the more ethical but the more competent out of the residential mortgage lending work handled by the lenders who use an AMC. At least in the old days there were enough mortgage lenders and mortgage brokers who were okay with a MV that was not deal friendlyu when justified.

I remember one mortgage broker who used two different appraisers depending on who his investors were for the loan, me- ( who he called a conservative appraiser ) and appraiser X, who he called an aggressive appraiser. That was the terminology they used back then.

When the mortgage broker's own mother was buying a condo, he asked me to do the appraisal. I asked him why he did not hire appraiser X instead. His answer was, "It's my mother buying, so I need a real appraisal." We both laughed.