Waivers 50%. Hybrids 30%.

[NC Appraising]

Did this client allow appraiser trainees to inspect? If they did not, why would they accept a hybrid?

Dunno.

The appraisal was for a purchase transaction. Direct client. No AMC full $700 fee. Full appraisal.

The seller of the home is a mortgage broker. Not my client. Does not work for my lender. Just the seller that happens to be a mortgage broker.

They use nationwide. One of the largest AMCs.

Funny thing was that he was not even aware that direct clients exists. Appraisal port, mercury....no idea.

Most mortgage brokers are using UWM and Rocket wholesale.

Most are just doing what there told to do...the flavor of the day to get the loan closed. He thinks it is bat shet crazy...waivers....but then again, so we're ninja loans, no doc loans and DSCR loans. They know it is not a good idea, but they did it anyway.

 

[shrubberyvaluation]

Funny how that works.

I'm still convinced its to help facilitate fraud to use a hybrid with some rando without experience getting data for an appraiser and someone with even more incentive to not show any flaws, with no liability.

 

[NC Appraising]

My theory.

The GSEs were afraid of losing market, similar to pre 2008.

The large mortgage bankers which were pushing new tech on all ends and quicker closings, pushed the GSEs to do something.

How can they dominate the market when the appraiser levels the field with their competitors? Waivers.

Waivers are the last trick in the bag for +-2 day refi closings. Most everything else is done electrictronically.

Hybrids. I think hybrids came about as a fill in until waivers become more accepted and their AVMs get more accurate. They knew that if they cut out appraisers too much, it would back fire. They still need us for the time being.

Nothing to do with fraud. The higher ups don't like appraisers. The mortgage bankers want 2 day closings and everything done electronically.

Even the GSE reps have said they are not looking to replace appraisers yet...one pondered a 10 year time frame.

 

[Alsie35]

My theory. *SNIP*

Even the GSE reps have said they are not looking to replace appraisers yet...one pondered a 10 year time frame.

Don't believe that last part for a NY minute. Their disingenuous statements aside, they are clearly planning to drive the most experienced appraiser generation into premature retirement with the "UAD 3.6 Abomination".

Its a part of their plan. You can bank on it.

 

[alebrewer]

Did this client allow appraiser trainees to inspect? If they did not, why would they accept a hybrid?

That's a really great point. Of course, IRL, they'll not see it that way.

 

[George Hatch]

Don't believe that last part for a NY minute. Their disingenuous statements aside, they are clearly planning to drive the most experienced appraiser generation into premature retirement with the "UAD 3.6 Abomination".

Its a part of their plan. You can bank on it.

Even if not intentional the resulting thinning of the herd is certainly predictable. It's not an example of the law of unintended consequences because everyone can see what's going to happen. Intent notwithstanding the outcome will be the same. Less demand for appraiser hours will eventually result in fewer appraisers.

Not everyone is going to make it. Some will get squeezed out. Whether someone someone figures out a strategy to out-survive their competition or not, that competition is going to continue apace anyway. Appraiser permission and cooperation not required.

 

[Surf Cat]

Funny thing was that he was not even aware that direct clients exists. Appraisal port, mercury....no idea.

That's just it, whenever I talk to a borrower or homeowner about what's "really" happening in regards to the appraisal process. They are like a deer in headlights...no idea, no clue.

This is to the AMC, appraisal modernization, lender's advantage..... and to the appraiser's detriment.

 

[alebrewer]

I'm still convinced its to help facilitate fraud to use a hybrid with some rando without experience getting data for an appraiser and someone with even more incentive to not show any flaws, with no liability.

Do you REALLY believe this? I'm completely on board with the hypothesis that they're trying to eliminate appraisers - I just think it has to do with standardization of valuation modeling, speed, and cost. I also get the argument that they're much more willing to take on additional risk at the taxpayer's expense. Not following you on the fraud part, though? Why would they be trying to facilitate fraud?

 

[Surf Cat]

Why would they be trying to facilitate fraud?

To completely eradicate appraisers like roaches....

 

[George Hatch]

Whatever damages these programs end up creating will eventually result in losses. What nobody can even guess at so far is whether those damages will be significant or insignificant.