Bifurcated appraisals – Yes or No??
What Fannie Says: Yes, of course
Interview with Lyle Radke Lyle Radke, Director of Collateral Policy at Fannie Mae
Excerpt: Fannie has spent the first half of 2019 detailing its plans to roll out the 1004P, a new desktop appraisal that will be based on a Property Data Collection report that is prepared by a third party inspector; this is part one. Fannie has indicated that it is currently testing appraisers, appraiser trainees, insurance inspectors, real estate agents, property preservation service professionals, and smart home service professionals as potential Property Data Collectors to determine “which labor force can best collect data,” including a “robust and accurate set of data elements, photos, and floor plan.” Bifurcated Appraisals and Inspections Yes or No is a controversial topic.
The more impactful revelation is that Fannie aims to replace the appraisal requirement completely where it can. In these scenarios, a property data collector, not necessarily a licensed appraiser, will inspect a home and report back on the condition of the property. Then, based on that property inspection report, a desktop appraisal may be ordered or the appraisal requirement might be waived altogether.
Many issues are discussed: Value Verify, appraiser aging, who will do inspections, etc.
For more info, click here
What Richard Hagar Says on Bifurcated:
No – A Train Wreck
Excerpt: We are hearing about the latest trend called bifurcated appraisals. Within the past year I’ve seen this term used more often in more diverse places than in the prior 20 years combined; it’s almost like some media company has decided that “bifurcated” is the “it” term for 2019. All sorts of people, AMCs, lenders, technology companies, and Fannie Mae are promoting this “spiffy” new process. They are hoping that the rest of us will “get on board” with their new “better” process.
I do not want to “get on board” because it’s headed for a train wreck.
Editor’s Note: Hagar’s bifurcated test in his office did not go well.
For more info, click here
My opinion: It is a business decision whether or not to do bifurcated appraisals. This month’s issue of Appraisal Today has an article on the topic, written by Julie Friess, SRA
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NOTE: Please scroll down to read the other sections of this long blog post on abandoned resorts, appraisal data, mortgage origination stats, etc.
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Crowdsourcing Appraiser Data
By Jerin Harper, IFA, ASA, CREA
Excerpt: Just imagine the possibilities of having a hyper-local database…
If you are not in the business of data you will be out of business. I’m not sure if I heard this somewhere or not, but this mantra has been in my head for a while now. Being in the data business is essential for every business today. We see it across all industries where the companies that embrace data are still in business, and the companies that didn’t make that pivot are out. In our profession we saw Fannie Mae get into the big data business with the creation of CU. CoreLogic took their data business to a whole new level when they bought Alamode. One of my favorite examples is sports: just in the last several years data & analytics have completely changed the way football, basketball, and baseball is played— and those sports have been around for 100 years. It doesn’t matter what business you’re in, you have to be able to capture the right data and communicate it effectively.
I suggest that appraisers start crowdfunding their data.
To read more, click here, plus the many comments,
My comment: A never ending idea… Who “owns” the appraisal data? I remember the days of the CMDC (California Market Data Cooperative) where appraisers, including myself, shared their appraisal data, long before the Internet. It still exists and is owned by FNC. Their historic data is available.
Refi Mania to Continue!!
Low rates will push mortgage originations to 3-year high, MBA says
Almost $2 trillion of originations this year, according to forecast
Excerpt: The cheapest mortgage rates since 2016 will push U.S. mortgage originations to a three year-high this year, according to a forecast by Mortgage Bankers Association.
Combined purchase and refinancing originations will probably total $1.9 trillion in 2019, according to MBA. That would be the highest level since 2016’s $2 trillion.
To read more, click here
My comment: When I was on open house tour Tuesday, several agents asked me about appraisers being very busy. I said it was Refis. We try to give priority to purchases, but sometimes get overbooked with refis. Make money while this lasts. If you are burned out on working for AMCs, this is the Very Best Time to get non-lender work. While your competitors are turning it down, you can say Yes and get some high paid appraisals with very little hassle. I have lots and lots of info on this in my paid Appraisal Today.
iBuy, iSell, But Will I Make a Good Living
By Tim Andersen, MAI
Excerpt: Let’s take a look at what some folks call ibuyers (and, to some extent, isellers), as well as the business platform from which they operate (especially the ibuyers). We’ll take this look since their business model is disruptive of the traditional business model of the real estate broker. How? That model takes the broker out of the picture (or, at least, has that potential). Therefore, it merits our scrutiny and analyses.
While a disruption to the business model of the traditional real estate broker does not and will not affect us appraisers directly, it most definitely will have an indirect impact on (a) us, (b) what we do, how we do it, and, to some extent, (c) why we do it. In one sense, this indirect impact will make of us collateral damage. But let’s see how bad the damage to us from that disruption may be.
Very interesting and worth reading To read more, click here
My comment: Every day I get info on companies such as Zillow using iBuyers. Fortunately, Tim Andersen writes about how it affects appraisers, traditional real estate brokerages, why isellers use it, etc. , so I don’t have to research it ;>
26 of the World’s Most Astounding Abandoned Resorts
Just For Fun!! Take a break from refi mania ;>
From the forests of Canada to the beaches of Croatia, the Earth is dotted with forgotten relics of relaxation.
Excerpt: From the forests of Canada to the beaches of Croatia, the Earth is dotted with forgotten relics of relaxation.
To read more, click here Scroll down the page.
My comment: For unknown reasons, I am fascinated with abandoned places. Plus, they are popular with other appraisers also!
AMCs Ordering Appraisals and Property Inspections!!
Yes, No or Maybe. What Should You Do?
This Month’s Issue (September) has “Bifurcated Appraisal Reports and USPAP Compliance” By Julie Friess, SRA, AI-RRS, MA. Julie has received lots of emails from appraisers confused about what is happening. In the November issue she will write about what to do now that AMCs are ordering them them from appraisers.
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Appraisal Firms and AMCs with Appraiser Independent Contractors in California: Get Familiar with AB-5 Real Quick
By Peter Christensen
Excerpt: Appraisal firms and appraisal management companies utilizing independent contractor appraisers in California need to get familiar with Assembly Bill 5 (AB-5) – California’s new “gig worker” law.
As was expected, Governor Newsom signed AB-5 on September 18, and it will become effective on January 1, 2020. The law presents significant challenges and obstacles to treating appraisers as contractors in appraisal firms and AMCs. The risk of getting it wrong means becoming easy prey for a class action.
To read more, click here
How the New “Gig Worker” Law Affects AMCs
Excerpt: A Preliminary Look at AB-5 from the Operational Side of an AMC by Kim Perotti, Co-President of AXIS Appraisal Management Solutions.
Excerpt: (Kim Perotti) AMCs and lenders, and appraisers too, will face operational impacts from AB-5. We may see the following adjustments from those seeking to comply with AB-5 and potentially seeking to assure that the appraisal firms they contract with fit within the current “business-to-business” exception in the law:
This post includes comments by Peter Christensen and Kim Parotti of Axis AMC.
Scroll down to read Perotti’s comments.
To read more, click here
My comment: I have been wondering about AMCs, who use many independent contractor fee appraisers… Since the vast majority of lender appraisals are done thorough AMCs it could affect appraisers who work for AMCs. Will this expand into other states? Will this IC change spread to other states because of the “gig economy”?
My comments on Independent Contractor Appraisers: I have been writing about appraisers and ICs since 1992, when I started this newsletter. My appraisers have always been employees. When I started my business in 1986, local appraisal companies were targeted by the CA state employment regulator. Most failed miserably. Big fines, bankruptcy, etc.
Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
2033 Clement Ave. Suite 105, Alameda, CA 94501
Phone 510-865-8041 |