The New Appraisal Industry

[J Grant]

JMO- wrt meeting this type of assignment - 2055, and the desktop was used primarily for small HELOC loans or portfolio review, etc.

It is only very recently that the hybrid was invented to benefit the AMC's using cheap fee PDC collectors. A hybrid is the same as a traditional appraisal except that in a hybrid, the inspection is outsourced and downgraded to a PDC collection done by somone other than the appraiser doing the appraisal.

A desktop appraisal in some cases for contagious reasons was used on a limited basis during COVID.

Now the hybrid is being used for origination loans, purchases, or refinances of loans of hundreds of thousands of dollars. It is unknown whether splitting the assignment for mass market application will yield reliable results.

 

[George Hatch]

The motivation is irrelevant. The capitalistic tendencies are irrelevant. The greed and corruption factors at the lenders and the GSEs is irrelevant.

It is apparent that the GSEs have been making their own comparisons between these alternatives vs the conventional 1004s. And also apparent what conclusions they have come to about those comparisons. We might say they're making the wrong decisions, too aggressive, too risky and so forth. But the point remains, if they are allowed to use these then we're allowed to perform them.

If an individual chooses not to perform them then that's 110% fine for them to hold that personal standard. But it becomes inaccurate to project that personal standard as being universally applicable to every other appraiser.

 

[J Grant]

I post screengrabs from the source material. I usually don't even post AOs or FAQs because they're not the same thing as USPAP. Meanwhile, you have been posting someone else's opinion as scavenged by your AI. It's not even your own reasoning.

Even if there's some overlap between the two, in the event of any conflict the call goes to the source material. Which is why I am using it.

AI gathers data and uses USPAP as a source as well. I post it sometimes because we are aware that USPAP does not require an inspection and anyone can hairsplit what an appraiser is liable for, yet in practice that might not be divisible since assignment results are tied in to the subject "data", (now that the inspection is gone )

Your opinion is that the minimums and deficiencies of USPAP being exploited to divorce an appraiser from inspection is fine. Others do not feel that way. We all have the same USPAP available as well as the certs as you do -we can skip being lectured on it fwiw!

 

[djd09]

where in useless USPAP does it say you can scope away misleading...

 

[djd09]

there was also a span of time where misleading was intentional...or not

 

[George Hatch]

AI gathers data and uses USPAP as a source as well. I post it sometimes because we are aware that USPAP does not require an inspection and anyone can hairsplit what an appraiser is liable for, yet in practice that might not be divisible since assignment results are tied in to the subject "data", (now that the inspection is gone )

Your opinion is that the minimums and deficiencies of USPAP being exploited to divorce an appraiser from inspection is fine. Others do not feel that way. We all have the same USPAP available as well as the certs as you do -we can skip being lectured on it fwiw!

Once again, you are using a term, apparently without understanding its stated meaning. Here's what the source material says about "assignment results".



What do you make of that comment as it relates to this discussion? If a public records database or an MLS listing is inaccurate in some way and not otherwise obvious, how does that factual error become the appraiser's responsibility?

 

[chad hampton]

where in useless USPAP does it say you can scope away misleading...

Anything that benefits the corrupt AMC's is permitted. It says that in USPAP.


Wouldn't shock me at all if that's in the next edition.

 

[George Hatch]

there was also a span of time where misleading was intentional...or not

One edition, after which it was retired due to being a dumb idea in the first place because people like you don't make the distinction between what the appraiser does vs what other possible sources do.

 

[chad hampton]

The obvious difference is that in a 2055, there is no interior appraisal inspection performed.

In these things, there is. So to claim they are both equal with regards to appraiser liability doesn't make much sense.

How many more state boards have to come out with guidance saying that the appraiser is responsible for the accuracy of the interior inspection?

 

[chad hampton]

How far away are we from just signing the report that has a value that's provided to us? Hey, someone else came up with the value, so that's not on me.