Will you prepare the 1004desktop?

[alebrewer]

It is rather funny to see people excusing a lower step down in appraisal practice ( no inspection by appraiser ) by using even worse examples to okay it ! Such as all the lousy appraisals in teh crash - taht is teh rationale for lowering a requirement -

It's an alternative SOW, J. Not a 'lower step down'. And it's nothing new. I did 2055's back in the mid-90's. We're now 25 years later, and folks are acting like this is something new...

 

[alebrewer]

This is a zero sum game. Some will exit, and some will, by necessity, be forced to expand their client base, even if marketing is uncomfortable for them. Never underestimate a hungry appraiser.

I do think we will see some significant attrition as a result of the alternative SOW products. However, I think that will be a combination of age, as well as lack of desire to perform said services. As to how many newbies enter to fill the void - who knows. It seems PAREA might allow for a rather quick backfill, but that remains to be seen.

 

[Terrel L. Shields]

but it is NOT a false flag

It still begs the question of why USPAP decided to step outside for non-real estate standards.

I am still in favor of multiple standards. One for FHA. One for VA/FNMA/Freddie/Rural FmHA. And one for non-GSE, government loans. Instead we try to shoehorn individual peccadilloes of each GSE Gov HUD, etc. loan program into an overall "USPAP compliant" report.

 

[Terrel L. Shields]

I did 2055's back in the mid-90's.

I did exactly 1 and figured out it was just as much work for something less money.

 

[J Grant]

Direct lenders will not add appraisers to a panel just because that appraiser charges less, because direct lenders to not fee split so it does not matter, as long as it is covered by borrower/C and R.

It will affect appraisers though who do direct lender work, because even though they pay better/full fees, these lenders have to compete in the market, and if their competitors are offering low cost appraisals with amazing convenience look owner , you don't even need to be home to let the appraiser in! Then the better clients have to offer that product to their borrowers .

 

[alebrewer]

I did exactly 1 and figured out it was just as much work for something less money.

If I'm being completely honest, the quality of those products I produced was most likely not commensurate with what I might produce today.

 

[George Hatch]

For any residential appraisers who feel this will not affect them too much because they have a good diversified client base and/or do not rely on mortgage lending appraisals--consider this: as work starts drying up for the skippies, they will start looking for other sources of income.

They will start going after the better direct lending clients. They will start going after the estate planning deals. And if you think your client is loyal to you, wait until they have a choice with a fee that is now $150 less than what you are offering. That is where client loyalty will really begin to be tested.

This is a zero sum game. Some will exit, and some will, by necessity, be forced to expand their client base, even if marketing is uncomfortable for them. Never underestimate a hungry appraiser.

IMO this is the discussion we should be having about these developments. Not just with the desktop/hybrids but what happens as they lower the barrier to entry for our competition. What happens when they choose to start accepting appraisals performed by SLs again (which many of them had stopped doing 10 years ago). What happens when they accept trainee inspections countersigned by the supervising appraiser as "did not inspect". Most of these were not requirements for these lenders before. They were primarily discretionary choices that went our way due to them having the abundance of appraiser availability. They did it because it didn't cost them extra; they did it because they could and because it was free or almost free to them.

These users are increasingly exercising their discretion. The fact they didn't do 30 years ago doesn't mean they *couldn't* do it back then, it just means they hadn't previously attempted to test the limits of their discretion to this extent. And again, I'm just offering up the observation, not an endorsement. What I endorse is that appraisers offer a good workproduct for whatever SOW they are using, so that they can thrive during the winter even as other appraisers starve.

 

[alebrewer]

What happens when they choose to start accepting appraisals performed by SLs again (which many of them had stopped doing 10 years ago).

This won't change until FHA changes their position on requiring SR's to complete the assignments. IF FHA does that, then the use of SL's for assignments for F/F will increase exponentially overnight. The only reason most lenders don't engage SL's for F/F assignments now is the potential for the loan to be flipped to FHA.

 

[George Hatch]

Another example of discretionary on the part of the users.

 

[djd09]

1. I think you are still a certified USPAP instructor and are very familiar with its content. If you feel that inspection of the subject is so critical to credibility, over the years how many times have you asked the ASB to change USPAP to require an inspection?

if fannie thought measuring to the tenth was a good idea, why didn't they ask the asb to change USPAP?