This is a pretty niffty detailed chart for finding time adjustments, we are done.

[alebrewer]

And the the last company you worked for, as I recall, had a good reputation in the mortgage industry. Plenty of them out there who didn't, however. And over time, people who cheat and get away with it will eventually overcome and replace those who don't.

I guess it depends on how you define 'cheating'. Again - in the audits I've been through - it would be tough to conceal. We even had an investor (different employer than current) who pivoted appraisal assignments against loan officers to determine if too many assignments were going to individual appraisers.

To your point, though, there is no doubt that the successful companies bend the rules to their favor. This is no different than any other industry on the planet, though.

 

[Mike Ault]

I guess it depends on how you define 'cheating'. Again - in the audits I've been through - it would be tough to conceal. We even had an investor (different employer than current) who pivoted appraisal assignments against loan officers to determine if too many assignments were going to individual appraisers.

To your point, though, there is no doubt that the successful companies bend the rules to their favor. This is no different than any other industry on the planet, though.

We're getting in object lesson in that with the recent assassination of the health care industry CEO. We shouldn't let problems get to that point.

 

[alebrewer]

We're getting in object lesson in that with the recent assassination of the health care industry CEO. We shouldn't let problems get to that point.

There's no 'getting'. It's always been that way - and always will. Or have you forgotten about working conditions in the early 1900's? Industrial pollution? Redlining? Build a bulletproof law - and they'll figure out how to make it un-bulletproof. Heck - in Texas, we're dealing with this huge boondoggle where teachers paid other folks to take their exit exams for them. Our industry is not unique, Mike.

 

[Mike Ault]

There's no 'getting'. It's always been that way - and always will. Or have you forgotten about working conditions in the early 1900's? Industrial pollution? Redlining? Build a bulletproof law - and they'll figure out how to make it un-bulletproof. Heck - in Texas, we're dealing with this huge boondoggle where teachers paid other folks to take their exit exams for them. Our industry is not unique, Mike.

The first step in solving a problem, is to recognize that it exists. We don't just accept problems, we solve them. Otherwise, they turn into conditions. Unacceptable ones.

 

[Zoe]

I don't think that bank I worked at needed any bailout. But it was free so I think they took it and paid it back. I kinda think they forced all banks to take bailout money. Don't quote me on that.

 

[Surf Cat]

So I guess the question is: what about a property's condition is such that: (1) it has a quantifiable effect on value, and (2) it would not be recognizable by an 'uber driver'? They've solved for the GLA issue by using Lidar technology. They've solved for upgrades recognition with AI image recognition software. I'm guessing functional obsolescence is something an uber driver may not pick up on, but honestly - how many homes today are going to have functional issues? Or maybe a better question is: what percentage of appraisal assignments do you address functional issues on?

The pdc's are just rushing into properties and taking all the required photos on their iPads and submitting them to the AMC and sticking out their hand for their 50 bucks.

They are not paying attention when driving up to the property, observing the homes in the neighborhood to see if the subject is conforming, taking into consideration the subject's location next to a freeway, busy street, and or railroad tracks, looking at a sagging and/or condition of the roof.... I could go on and on. So IMO, answers to your number one and two are no they're not. Why should they? They have no skin in the game, no license and or E&O insurance. PDC'S have no risk whatsoever.

If the Lidar technology was that good, why are we measuring to ANSI?

My comment in regards to homeowner Butchery is related to Quality of workmanship in upgrades. Some homeowners are very handy and install flooring, Cabinetry, windows, Etc in a Workman like manner. Others, not so much. Some homeowners remove walls, put up partitions and do things to the home to suit their needs. This in my opinion, seriously affects value. Which is why I contend a licensed professional, like us, should be doing the inspections and report on their effects on value. I don't think AI can catch all that.

Functional issues are more rare in my experience.

The report is too damn long.

That would be a good thread actually. What can be trimmed and discarded from the 1004? What are the absolute necessary items that need to be reported on to derive a credible value?

 

[alebrewer]

They are not paying attention when driving up to the property, observing the homes in the neighborhood to see if the subject is conforming, taking into consideration the subject's location next to a freeway, busy street, and or railroad tracks, looking at a sagging and/or condition of the roof.... I could go on and on. So IMO, answers to your number one and two are no they're not. Why should they? They have no skin in the game, no license and or E&O insurance. PDC'S have no risk whatsoever.

Not arguing this at all - Just not sure it's relevant WRT whether or not the PDC inspection is sufficient for lending purposes.

If the Lidar technology was that good, why are we measuring to ANSI?

obviously ANSI was around way before Lidar, but to your point - I don't know. I know when CubiCasa first came out, it was never closer than ~ 5-10% of my actual measurements. I think the technology is much better now- although I admit I haven't used some of the newer technology because (I've been told) it's only available on Apple smart tools. I only use Android.

Functional issues are more rare in my experience.

I think that's the case in most markets.

The report is too damn long.

Again - no argument from me. I have to read through so much CYA BS to try to find what I'm looking for in a report. It's exhausting.

 

[Joe Flacco]

I don't understand the point of the PDC. If a PDC is needed then they should order a full appraisal. The decision tree should be simple. Do we need an appraisal - Yes or No.

 

[Mike Ault]

I don't understand the point of the PDC. If a PDC is needed then they should order a full appraisal. The decision tree should be simple. Do we need an appraisal - Yes or No.

The point was to divide and conquer the appraisal profession. The valuation profession is in charge now.

 

[Surf Cat]

Not arguing this at all - Just not sure it's relevant WRT whether or not the PDC inspection is sufficient for lending purposes.

Well..... that was the point of all my drivel....the PDC pictures are giving the lenders a false sense of security of the subject's overall condition....and value. They bypass the "friction" or speed bump if you will, to quickly make the loan and make money. I believe it irritates the lenders to no end receiving reports of deferred maintenance, externalities that affect value and heaven forbid, "subject to" inspection by a qualified contractor LOL

They don't want to hear it. Waive that sucker...