This is what I was told about Desktops...

[nachocheesefries]

Talked to an executive at a large AMC conglomerate on Friday. We had a 20-30 minute conversation that came across as honest and forthright. This is what they said in short form (my words not theirs).

-FNMA is aware of the irony between being hyper focused (like a psycho) on detail on one hand (MLS photos, measuring standards, etc.) when the Appraiser is doing a 1004 but, then on the other hand, if they can avoid a 1004, they don't even want the appraiser to look at the property and don't really care about any standard. The AMC is pushing for change on that front...LOL Oker..we will see.

They are pushing FNMA/FHA to get rid of the over the top requirements (interior shed photos, original comp photos, etc.) This, not to benefit the Appraiser, rather, even out their workflow because they have a number of clients that order appraisals directly with minimal requirements but also order through the AMC with the additional layer cake of requirements that increase costs to the AMC, therefore, the client and borrower.

-Some AMC's are going to hire teams of retiredish STAFF appraisers to make up 3-4 man teams (one Appraiser will do the inspections, another will do the form, another will do the analysis). This is one prong of production, the other involves typical desktops and AVMS, and the third is fee appraisers completing 1004's. This model has proven successful in another country they operate in. It was stated that the other country they operate in also implemented the Desktop deals trying to speed things up/cut costs and it failed nationwide. They approach things through a technology lense...which is likely smart. Apparently, the three prong model has proven successful. They indicated massive losses to Govt/lenders by Desktops initially in certain markets that their system eventually curbed (just what they said). Indication was that the losses take years to realize, so initial modest success is not a good barometer.

-It was stated that currently, the Desktop game only works in larger cities but not in rural or suburban markets because they can't get enough retirees to get on board (to sink the profession--my words here). Desktops are only available in limited urban markets and it will likely stay that way for the foreseeable future. I was surprised to hear that kind of honesty. It was stated that they are not recruiting current panel appraisers in a big way, because they have a team going after NON panel appraisers so as NOT to interfere with their existing fee panel/business.

-It was acknowledged that Desktops are not a time saver and not much of a money saver. Again, they are only being pushed in urban areas with lots of volume and appraisers willing to complete them. Stated they currently charge the same for a desktop as a full. Its about time savings, not cost I suppose?

***All this to say, the conversation was confirmation of what I feel in my gut and what others on this Forum have been saying. In large urban areas, the Desktops are likely to impact business at some point in the near future (2-3 years). They have not figured out how a computer can replace rural and suburban appraisers and I am not sure that is even on their radar and I am 100% certain, its not possible to do without sacrificing reliability. The entire scheme basically hinges on the AMC's ability to find semi-retired appraisers to churn and burn desktops (and cut the throats of everyone else). The AMC did not seem to be concerned with competency across multiple markets..so, I think if they allow Appraisers from other markets to complete Desktops, it will put a squeeze on urban Appraisers. If I were in one of those areas and saw another Appraiser from three hours away doing desktops, I would turn them into the commish in a hot second!

 

[djd09]

irony is a polite term. anti competitive market manipulation is more appropriate.

 

[Jayjay25]

irony is a polite term. anti competitive market manipulation is more appropriate.

Exactly. Let’s make it really hard on the appraiser if he visits the property but easy if someone else does it. Maybe then we can force them into giving up on completing inspections and they will succumb to the desktop assignments. Control fraud is an equally appropriate term.

 

[J Grant]

I assumed from day one that these products, desktops but more especially hybrids/bifurcated ( if they ever get out of test phase ) are more suited to staff appraiser operations then fee panel of independents The AMC hiring additional staff to third party inspect /data collect will face same problem of what to do with them in a slow period. I doubt there is a plethora of semi retired willing to work so cheap and fast, but whatever...

AMC's call appraisers "vendors ", which says everything we need to know. I can not blame appraisers for working for them, but appraisers would do well not to reduce fees to get the work- as we saw in the busy period, an AMC/lender and or borrower will pay a higher fee when they must -they just would rather not.

 

[djd09]

Understanding Desktop Appraisals: Takeaways from Fannie Mae and Freddie Mac​

Why Desktop Appraisals, and Why Now​

Scott Reuter of Freddie Mac kicked off the webinar explaining why government-sponsored enterprises (GSEs) Freddie Mac and Fannie Mae felt confident about introducing desktop appraisals as a permanent fixture in appraisal fulfillment at this time.


For one thing, he said, it’s part of their appraisal modernization efforts. “We’re helping to build out product offerings on the spectrum between waiver and full appraisal,” Reuter said.


Products, of course, need to be tested and fine-tuned before release. Desktop appraisals inadvertently experienced an accelerated widespread trial period as a result of social distancing and restrictions on in-home assessments due to the COVID-19 pandemic. This provided insight into whether this innovation could become a long-term offering.


“We are right off of all of our learnings from COVID flexibilities with desktop and exterior-only reports,” Reuter noted. “Appraisers really did a tremendous job. We didn’t see any increased risk. In fact, when appraisers were completing these reports, they were typically going a little bit above and beyond the minimum requirements.”

GSEs Collaborated on Guideline Development​

“How do you compensate for that lack of personal observation by the appraiser,” Radke posed. “That was a big consideration for us. How are we going to get the appraiser enough information to perform the assignment? That influenced some of the parameters around this.”

“How do you compensate for that lack of personal observation by the appraiser,” Radke posed. “That was a big consideration for us. How are we going to get the appraiser enough information to perform the assignment? That influenced some of the parameters around this.”

Adapting Will Take Time and a Mindset Shift​

Not all appraisers are ready to welcome desktop appraisals with open arms. Rose explained that part of that is due to misconceptions in the market about the process or the technology solutions that support it.


“We’ve worked with a lot of appraisers who came in necessarily out of the gate feeling as though they were against this process,” he said. “When they all of a sudden see and understand what can be delivered to them and in such a comprehensive fashion, it really inspires confidence in all of our appraisers.”


Zitin added that liability is a crucial area of concern for appraisers: “That’s because they’re still liable for using the information that is potentially provided by someone [else]. So they have to trust this information or verify it.”


However, Zitin drew a parallel between the floor plan liability issue and an existing practice to illustrate that the challenge is not without solutions. “[Appraisers] use MLS photos they did not capture for comps, and they have to try to validate those and verify that they’re accurate,” he explained. “There’s a slightly different version of that with these floor plans and other things like that on the subject property. I think it’s a liability concern that eventually will hopefully get remediated over time through continuous messaging and education.”

Desktop Appraisals are an Important Step in Appraisal Modernization​

Desktop appraisals are helping to drive more change in an industry that has been historically slow to evolve. “I’m personally very bullish on all the emerging tools in tech,” Reuter said. “I think they’re going to be the absolute backbone of what innovation and modernization is going to look like.”

Understanding Desktop Appraisals: Takeaways from Fannie Mae and Freddie Mac

We’ve partnered with desktop appraisal SMEs to answer questions on the topic. Here are insights from our webinar with Fannie Mae and Freddie Mac. | Darius Thigpen

www.reggora.com

 

[NJAPRAZE]

"It was stated that they are not recruiting current panel appraisers in a big way, because they have a team going after NON panel appraisers so as NOT to interfere with their existing fee panel/business."

-> retirees to "superivise" and sign off... and targeting "trainees" to do inspections; great job of mentoring the industry's future - NOT!

 

[Denver]

I am raising my fees for standard UAD 1004 appraisal reports due to the new desktop requirements. I will not be completing desktop assignments.

 

[nachocheesefries]

Understanding Desktop Appraisals: Takeaways from Fannie Mae and Freddie Mac​

Why Desktop Appraisals, and Why Now​

Scott Reuter of Freddie Mac kicked off the webinar explaining why government-sponsored enterprises (GSEs) Freddie Mac and Fannie Mae felt confident about introducing desktop appraisals as a permanent fixture in appraisal fulfillment at this time.


For one thing, he said, it’s part of their appraisal modernization efforts. “We’re helping to build out product offerings on the spectrum between waiver and full appraisal,” Reuter said.


Products, of course, need to be tested and fine-tuned before release. Desktop appraisals inadvertently experienced an accelerated widespread trial period as a result of social distancing and restrictions on in-home assessments due to the COVID-19 pandemic. This provided insight into whether this innovation could become a long-term offering.


“We are right off of all of our learnings from COVID flexibilities with desktop and exterior-only reports,” Reuter noted. “Appraisers really did a tremendous job. We didn’t see any increased risk. In fact, when appraisers were completing these reports, they were typically going a little bit above and beyond the minimum requirements.”

GSEs Collaborated on Guideline Development​

“How do you compensate for that lack of personal observation by the appraiser,” Radke posed. “That was a big consideration for us. How are we going to get the appraiser enough information to perform the assignment? That influenced some of the parameters around this.”

“How do you compensate for that lack of personal observation by the appraiser,” Radke posed. “That was a big consideration for us. How are we going to get the appraiser enough information to perform the assignment? That influenced some of the parameters around this.”

Adapting Will Take Time and a Mindset Shift​

Not all appraisers are ready to welcome desktop appraisals with open arms. Rose explained that part of that is due to misconceptions in the market about the process or the technology solutions that support it.


“We’ve worked with a lot of appraisers who came in necessarily out of the gate feeling as though they were against this process,” he said. “When they all of a sudden see and understand what can be delivered to them and in such a comprehensive fashion, it really inspires confidence in all of our appraisers.”


Zitin added that liability is a crucial area of concern for appraisers: “That’s because they’re still liable for using the information that is potentially provided by someone [else]. So they have to trust this information or verify it.”


However, Zitin drew a parallel between the floor plan liability issue and an existing practice to illustrate that the challenge is not without solutions. “[Appraisers] use MLS photos they did not capture for comps, and they have to try to validate those and verify that they’re accurate,” he explained. “There’s a slightly different version of that with these floor plans and other things like that on the subject property. I think it’s a liability concern that eventually will hopefully get remediated over time through continuous messaging and education.”

Desktop Appraisals are an Important Step in Appraisal Modernization​

Desktop appraisals are helping to drive more change in an industry that has been historically slow to evolve. “I’m personally very bullish on all the emerging tools in tech,” Reuter said. “I think they’re going to be the absolute backbone of what innovation and modernization is going to look like.”

View attachment 61247

Understanding Desktop Appraisals: Takeaways from Fannie Mae and Freddie Mac

We’ve partnered with desktop appraisal SMEs to answer questions on the topic. Here are insights from our webinar with Fannie Mae and Freddie Mac. | Darius Thigpen

www.reggora.com

Him, his wife, kids, inlaws probably own a pile of stock in whatever 'tech company' they decide to prop up.


"Appraisers really did a tremendous job. We didn’t see any increased risk. In fact, when appraisers were completing these reports, they were typically going a little bit above and beyond the minimum requirements.”

---Ya dude, its been like a whole year to analyze the risk! Wait until all these scabby people crawl out of the woodwork when they hear than can get a loan without an Appraiser going in their crappy hell hole of a house. No increased risk?...that is dog**** and everyone knows it. If it were his money being lent out, he would want boots on the ground.

Appraisers cannot compete against leaders that have an agenda different than ours.

We all assume they want to know the value...they don't...they want something quick and cheap to clear the hurdle/obstacle, instead of viewing us as a valued part of the origination process that should be respected and given space.

 

[Mike Ault]

If I were in one of those areas and saw another Appraiser from three hours away doing desktops, I would turn them into the commish in a hot second!

According to DW they are going to be monitoring for appraisers doing these desktops who are not geographically competent for the market area that they are doing them in. Let's see how that works out. He says they have all the data they need to determine if appraisers are appraising outside of their market, I'd like to know how many they catch doing so in the first couple of months. I would also like to see the GSE's publish a "sanction matrix" for everybody involved in the desktop production process so penalties for substandard performance will be known and understood. I seriously doubt that producers of desktops will waste much time on "verification" or the process of "showing how they arrived at their adjustments" and are just planning to "churn and burn" until retirement and hope for the best.

 

[Sadie]

Talked to an executive at a large AMC conglomerate on Friday. We had a 20-30 minute conversation that came across as honest and forthright. This is what they said in short form (my words not theirs).

-FNMA is aware of the irony between being hyper focused (like a psycho) on detail on one hand (MLS photos, measuring standards, etc.) when the Appraiser is doing a 1004 but, then on the other hand, if they can avoid a 1004, they don't even want the appraiser to look at the property and don't really care about any standard. The AMC is pushing for change on that front...LOL Oker..we will see.

They are pushing FNMA/FHA to get rid of the over the top requirements (interior shed photos, original comp photos, etc.) This, not to benefit the Appraiser, rather, even out their workflow because they have a number of clients that order appraisals directly with minimal requirements but also order through the AMC with the additional layer cake of requirements that increase costs to the AMC, therefore, the client and borrower.

-Some AMC's are going to hire teams of retiredish STAFF appraisers to make up 3-4 man teams (one Appraiser will do the inspections, another will do the form, another will do the analysis). This is one prong of production, the other involves typical desktops and AVMS, and the third is fee appraisers completing 1004's. This model has proven successful in another country they operate in. It was stated that the other country they operate in also implemented the Desktop deals trying to speed things up/cut costs and it failed nationwide. They approach things through a technology lense...which is likely smart. Apparently, the three prong model has proven successful. They indicated massive losses to Govt/lenders by Desktops initially in certain markets that their system eventually curbed (just what they said). Indication was that the losses take years to realize, so initial modest success is not a good barometer.

-It was stated that currently, the Desktop game only works in larger cities but not in rural or suburban markets because they can't get enough retirees to get on board (to sink the profession--my words here). Desktops are only available in limited urban markets and it will likely stay that way for the foreseeable future. I was surprised to hear that kind of honesty. It was stated that they are not recruiting current panel appraisers in a big way, because they have a team going after NON panel appraisers so as NOT to interfere with their existing fee panel/business.

-It was acknowledged that Desktops are not a time saver and not much of a money saver. Again, they are only being pushed in urban areas with lots of volume and appraisers willing to complete them. Stated they currently charge the same for a desktop as a full. Its about time savings, not cost I suppose?

***All this to say, the conversation was confirmation of what I feel in my gut and what others on this Forum have been saying. In large urban areas, the Desktops are likely to impact business at some point in the near future (2-3 years). They have not figured out how a computer can replace rural and suburban appraisers and I am not sure that is even on their radar and I am 100% certain, its not possible to do without sacrificing reliability. The entire scheme basically hinges on the AMC's ability to find semi-retired appraisers to churn and burn desktops (and cut the throats of everyone else). The AMC did not seem to be concerned with competency across multiple markets..so, I think if they allow Appraisers from other markets to complete Desktops, it will put a squeeze on urban Appraisers. If I were in one of those areas and saw another Appraiser from three hours away doing desktops, I would turn them into the commish in a hot second!

Just a note. A lot of the over the top requirements are from clients and not a GSE. Fannie just wants living room, kitchen and bath photos.