This is what I was told about Desktops...

[Couch Potato]

Solutions To Discrimination In Home Appraisals​

...

Freddie Mac and Fannie Mae, two of the largest financial institutions believe they have a remedy for Black and Brown homeowners low-balled by bank appraisers compared to their white counterparts. In March the companies launched remote desktop appraisals, in which an appraiser never meets a homeowner or has an opportunity to see their family portraits on the wall, etc.

That would be a great solution if the problem was racist appraisers, but it does nothing to address systemic racism in the real estate market which is reflected in any appraisal that merely reflects the market. The problem is not one of individual transactions so the solution cannot be one of individual transactions.

 

[ramrcdk]

That would be a great solution if the problem was racist appraisers, but it does nothing to address systemic racism in the real estate market which is reflected in any appraisal that merely reflects the market. The problem is not one of individual transactions so the solution cannot be one of individual transactions.

Ohhhh the Race THING is just an Added Layer for their cause &&&&&&&& like Fake News becomes "real" after enough advertising.

 

[Sadie]

delete

 

[Fernando]

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!

So their premise is to hire retire STAFF appraisers.
As a semiretired appraiser (especially during bad cycles), why would I want to work more for same amount of pay.
Why would retired appraisers come back and work? Sure they don't have to go out in the field but I never liked doing desktops because I have to see the property and the location.
What pulls me back is when fees are high with high demand for appraisers. I'm taking the excess orders and not undercutting my younger appraisers.
By time appraisers near retirement, most have experience and financial security to not accept low fees.

 

[djd09]

Even home appraisers are doing their jobs remotely​

During the 2008 housing crisis, appraisers were pressured into putting a price tag on a home that was favorable to the lender, often leading to valuing homes at a much higher cost than they were worth.


"You do want independence. You don't want somebody with a horse in the race controlling the appraiser and the appraisal system. " said Mike Calhoun, president of the Center for Responsible Lending.

Technology could help address a looming shortage of appraisers​

Even home appraisers are doing their jobs remotely

Remote appraisals shot up during the pandemic, replacing in-person inspections by appraisers. Even as restrictions ease up, they could be the standard for how homes are valued.

www.npr.org

independent??? i cant stop laughing. intended users needs, wants, dictates, assignment conditions, SOW, what a joke

 

[Doug Wegener]

• With the 1004 Desktop/70D, the appraiser is not required to physically inspect the subject or comparables as a part of the process.
• One additional requirement is that the 1004 Desktop/70D must contain a floorplan that includes exterior dimensions, as opposed to a sketch, and MUST include calculations as to how the GLA are determined.

I received a solicitation from a well known AMC (think Pittsburg) regarding these desktops. Part of the email had the above.
"1004 Desktop/70D must contain a floorplan that includes exterior dimensions, as opposed to a sketch, and MUST include calculations as to how the GLA are determined."

I don't even see how that would be possible. How on earth would you have the floorplan if you did not go inside the property?

 

[alebrewer]

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.

I can say without hesitancy that they are monitoring the desktop submissions very closely.

 

[Overimprovement]

• With the 1004 Desktop/70D, the appraiser is not required to physically inspect the subject or comparables as a part of the process.
• One additional requirement is that the 1004 Desktop/70D must contain a floorplan that includes exterior dimensions, as opposed to a sketch, and MUST include calculations as to how the GLA are determined.

I received a solicitation from a well known AMC (think Pittsburg) regarding these desktops. Part of the email had the above.
"1004 Desktop/70D must contain a floorplan that includes exterior dimensions, as opposed to a sketch, and MUST include calculations as to how the GLA are determined."

I don't even see how that would be possible. How on earth would you have the floorplan if you did not go inside the property?

It's the APPRAISER who does not have to go to property. Someone still does--be it a realtor, homeowner, or a disinterested 3rd party.

From scuttlebutt I am hearing from local sources, it is taking longer and costing more to get these done than simply having a 1004 ordered in the first place.

 

[DWiley]

How on earth would you have the floorplan if you did not go inside the property?

For many of the reports submitted so far, the appraiser used a floorplan (or 3D scan, etc.) that was included in the MLS listing. In some areas that is common. In some areas it is rare.

 

[Dublin ohio]

Had a desktop order in my e-mail. Before I could even look at the order. It was taken by another appraiser in less than 10 minutes. (These are not your typical blast orders. They offer them to a couple of appraiser at a good set fee. First come first serve). I had to chuckle when I looked up the property. It is a purchase but not on MLS. The ordered a 1004 desktop. But the property is actually a free standing condo (not a site condo). I know this complex well. Large number of fsbos. Have a feeling it will turn into a full appraisal.