Treasury Department Recommendations

[miktay]

This administration takes a wrecking ball approach... Perhaps appraisers who thought this was a good idea did not foresee the wrecking ball would be swung at their own livelihood.

Our only other option at the time was way too scary.

 

[J Grant]

Bruce I appreciate the thought, though I believe for lender work, just as Fannie/Freddie imposed the URAR, they will impose the new forms of whatever kind they are developing and testing now...if an appraiser develops a "better " form, submit it to them because no matter how good a form it is , they are the ones to decide what they will accept from lenders.

RE the better mousetrap, as I posted in this thread, appraisers should be developing our own new suite of forms and services to offer the public on a nationwide scale website, linked to Zillow, TRulia etc to capture even a small percent of their traffic.
I read somewhere Zillow got 10 million hits a month . 10 million! Now, may of them may be time wasters, just playing , seeing what houses sell for etc and perhaps only a small percent of them would need an appraiser or consulting service...but even a very small percent of that traffic 1-3% is thousands of orders.

Most of the public don't need a URAR or equivalent comprehensive report, they often need a faster streamlined report and/or consulting service such as live chat with an appraiser about prices and offers or listing advice.. they need to make an offer tomorrow, or have 3 days to withdraw a contract, they need feedback immediately, or they need a shorter appraisal form - an untapped market appraisers are not developing. Zillow and Redfin and others are starting or have already started direct buy and sell services over the site...think some of those buyers and sellers could benefit from an appraisal?

 

[J Grant]

Bruce- I think at the end of the day, if appraisers got smart and organized, we could develop a better mousetrap, so to speak, and end up providing a more useful service that might even be more profitable even at a lower price point. Remember that USPAP has NO inspection requirement. Just a certification statement that you did or did not. Hey change is hard. I'm just suggesting that it might not be so bad in the end!!

Fannie is developing a better mousetrap that suits them, ...the problem is, whether they design it or we design it, the LOWER PRICE POINT, even if it takes less time , will not be more profitable, it will be less profitable if same # or fewer due to waivers of volume is present from lending pipeline.

If 1000 loans needing 1000 URAR now is the avg in an area , and they pay $325 low end AMC to $450 direct, and a larg percent of that work gets replaced with new, lower pay products in $100-$150 range, there are STILL only 1000 orders- so, income plunges by half or more.

That is why for res appraisal,unless appraisers develop another pipeline of work direct from consumers, the income if massive change reduces the product and fees on lender end, income/profitability will be greatly diminished- perhaps far fewer appraisers then or it becomes mainly a part time gig or cubicle staff jot, with a small number of independent appraises perhaps able to make decent money doing more complex and review work.

 

[Non Sequitur]

Well you must be special.

I'm not special but I have sat in that seat.

I am looking at a fully executed contract signed on 7/14. I received the appraisal request on 7/24. That's 10 days right there between contract and assignment date. 5 business days to complete the report. That's 15 days

I am looking at another executed contract dated 2/15/2018 with an executed addendum dated 3/26/2018 that states and extension to close on 5/14/2018. I received the appraisal request on 7/24. How many months is this?

I have countless similar contracts that correlate an avg of 10 day or more days. So no, because I see it over and over again and have these contracts in my files I do not for a minute believe Vcap numbers ASA states are a joke.

Neither you or VaCAP have any idea when the contract was presented to the lender. Appraisers insisting that lenders sit on contracts for days/weeks/months is beyond silly and is a big reason why those who are in a position to set policy ignore the rantings. But back to reality, there isn't an AMC or appraisal department with an SLA (my appraisal department had an SLA) that allows for days/weeks/months to place an assignment, stomping your feet and insisting otherwise is silly.

VaCAP's survey is a waste of time and comes from a place of ignorance. Truth is among outside vendor services appraisals do take the longest to engage/complete, even if appraisal TT averaged 5 days when compared to title commitments, etc. they lag by several days. But that doesn't mean appraisers are the hold up in getting to the closing table. What VaCAP and those who are screaming the loudest should be pointing out is if the whole process is broken down underwriting/funding takes up the most time in the process. Arguing about appraisal turn times (a metric any lender has access to with a click) makes us look like idiots.

 

[Non Sequitur]

One I am (be)laboring now. Contract date 6/29. Order date 7/30

Do you really believe the lender sat on the contract for a month before ordering an appraisal?

 

[Renee Healion]

Not likely. Some of what I see is entry-level buyers who are hard to qualify or stay qualified. One agent says "It is a lot of work because lots of my buyers are coming up with mattress money." They can't account for what they can come up with to suit the regs. That is why some deals fall out and then go right back under contract with the next buyer who probably are not much different.

Plus this one is a purchase of an REO using FHA. It is not bad but it does need some work; seller wants to do none. So there are a lot of places for things to bog down. I am mostly direct panel but the AMC (I think I take from two) may toss %&)($* over the transom on their way out the door at 5 or 6 on Friday but there is someone there responding to counters on weekends. I think everyone is maxed out.

 

[Renee Healion]

With the occasional crazy exception, most deals above entry-level are written really clean, no weird terms, and the agents have an awareness of what is realistic for price. Buyers have more resources.They get put through faster because the buyers are in better shape.

I think lots of better-off buyers have dinged up credit from the whole last fiasco. I do not talk to LOs but I think they are working for the money now.

 

[Non Sequitur]

Renee, what does any of that have to do with VaCAP's survey?

 

[Renee Healion]

Evincere commented on the gap. I posted the one I was looking at and have since worked on all day. I did not make a claim. Maybe you just read my second post. Maybe neither one makes sense to you.

I think there are lots of reasons for things taking a long time but lately I think it is related to buyer financing issues. Clean transactions move normally for time but there are a lot of messy ones that don't. The messiness is before I am invited but what I see and hear are borrower qualifying issues.

 

[Non Sequitur]

OK, I got lost in the thread.

It isn't as clear cut as the VaCAP survey or those blaming appraisers for delays want to admit.