Why can't we band together on Feb 4th?

[Non Sequitur]

Beyond the increasing reporting requirements and decreasing fees of GSE work, moving forward I highly encourage everyone to mess around with GPT and artificial intelligence in general. This stuff is being baked into the new UAD software and just about everything else. And beyond that, developing AI skills will help those who will be starved out in the not too distant future. Like it or not this industry is contracting and boots on the ground resi appraisers will get no help from the GSEs, appraiser orgs, or anyone else in general. And it's not just us, our bread-and-butter clients are facing an ever-changing landscape. They are being squeezed for every penny and consolidated at a scale never before seen. And their future is uncertain too. Whether it's the impending release of the GSEs from gubmint control or as one blogger recently posted:

"• 72% of refinances now come through servicer mobile apps
• Bank apps are using AI for next-best-action decisioning
• Digital-first lenders are cutting processing times by 40%

4. The ICE Age Cometh

The biggest threat isn't Zillow or Amazon.

It's ICE (Intercontinental Exchange).

Most lenders think ICE is just Encompass (their loan origination system).

But ICE:

• Owns the NYSE
• Controls MERS
• Has acquired multiple real estate exchanges
• Is building a futures market for real estate

Their end game?

Creating an index marketplace where lending decisions are made through an exchange, not traditional lenders.

5. What This Means For The Industry

The next 24 months will determine which lenders survive the next decade.

Those who will thrive must:

• Develop a true mobile-first strategy
• Invest in retention technology
• Build or buy AI capabilities
• Create seamless digital experiences

But most importantly:

They need to decide if they're building for 2025 or 2035."

So, we aren't the only ones facing an uncertain future, our clients are too. And my guess is if this exchange gets off the ground it will not require what some refer to as "traditional" appraisals. Good luck everyone.

 

[HVNY]

I was reading the new requirements by Fannie since the hammer is dropping 2/4 and saw the section about hybrid appraisals. So apparently only the most experienced and knowledgeable FAN appraisers do the hybrids... They have me labeled as a SKEPTIC - Guess that means I suck as an appraiser. I have no need nor desire to do Hybrid work...guess that makes me undesirable.. Kind of sounds like discrimination..

 

[chad hampton]

I was reading the new requirements by Fannie since the hammer is dropping 2/4 and saw the section about hybrid appraisals. So apparently only the most experienced and knowledgeable FAN appraisers do the hybrids... They have me labeled as a SKEPTIC - Guess that means I suck as an appraiser. I have no need nor desire to do Hybrid work...guess that makes me undesirable.. Kind of sounds like discrimination..

You always have to remember rule number one when it comes to the GSE‘s, everyone representing them is pushing an agenda. Take their opinions with a grain of salt, at this point most of them are professional liars.

 

[Mejappz]

Sale prices should determine a trend about prices, not price per sf.

The idea that sale prices should determine a trend about prices, rather than price per square foot (sf), overlooks a few important factors.

First, price per square accounts for the size of a property, which is essential when comparing different properties or locations. Without considering sf, a small, high-priced home could skew the analysis, making it appear more expensive than it really is relative to other homes.

Second, sale prices alone don't account for other key variables like condition, location, or amenities that can significantly impact the market. For example, a sale price might be high because the property is in a desirable neighborhood, not necessarily because the overall market is trending up.

Lastly, looking at price per square foot offers a more apples-to-apples comparison*between properties of different sizes and helps smooth out some of the variability that might occur when just looking at total sale prices.

Price per square foot sf provides a more consistent and reliable measure for identifying price trends and comparing properties accurately. That said I don’t use for reasons I’ve posted on other threads. Don’t worry though some forum members and Fannie have stated that something is better than nothing. So just check stable and call it a day.

 

[Tim Hicks (Texas)]

The idea that sale prices should determine a trend about prices, rather than price per square foot (sf), overlooks a few important factors.

First, price per square accounts for the size of a property, which is essential when comparing different properties or locations. Without considering sf, a small, high-priced home could skew the analysis, making it appear more expensive than it really is relative to other homes.

Second, sale prices alone don't account for other key variables like condition, location, or amenities that can significantly impact the market. For example, a sale price might be high because the property is in a desirable neighborhood, not necessarily because the overall market is trending up.

Lastly, looking at price per square foot offers a more apples-to-apples comparison*between properties of different sizes and helps smooth out some of the variability that might occur when just looking at total sale prices.

Price per square foot sf provides a more consistent and reliable measure for identifying price trends and comparing properties accurately. That said I don’t use for reasons I’ve posted on other threads. Don’t worry though some forum members and Fannie have stated that something is better than nothing. So just check stable and call it a day.

Lot size also effects the price per foot. As the house gets larger, the lot size doesn't necessarily increase. Also, price per foot does not discern similar size homes on larger lots.

 

[Tim Hicks (Texas)]

I don't think any appraiser should determine time adjustments based on one month time period. There are too many variables that can affect one month's sales compared to another. One month could have an abnormal amount of distress sales or REO sales. One month can be dominated by higher new home sales. One month can very slow and there are much fewer sample size sales. The 1004 MC was more reliable because three months of sales better recognizes a trend than one month's sales.