Hybrid Appraisal Products & Public Trust
Are busy appraisers doing Hybrid Appraisal products?
The article titled First American launches new appraisal solutions technology popped in my system Tuesday early morning as I was getting ready to park my slippers.
This article touts another ‘major’ company’s effort to design and implement a new version of what’s become to be known as a Hybrid Appraisal product.
These products are designed to have a real estate sales person do the on-site property observation and photos, which are then provided to an appraiser, who completes a USPAP compliant ‘desktop’ appraisal. The whole point of these Hybrid appraisal products is less cost and more SPEED to get a valuation back to the lender faster.
This got me to thinking: Who’s doing these Hybrid appraisal products? Are the on-site observations being done by busy real estate agents – the ones with well-known reputations and years working in their region? Probably not. That leaves lesser experienced agents with fewer transactions to be the ground pounder. Then, once the on-site observations are done, are busy appraisers finishing the Hybrid appraisal report? Probably not. Busy appraisers are typically those who also have years in the business and work with a variety of clients, and are already time-committed to those clients to produce a better documented appraisal.
The bottom line of Hybrid appraisal products: the race to the bottom involving SPEED is incorporating lesser skilled people who may not have the desire or ability to really analyze and incorporate their responsibility to protect Public Trust. Public Trust is a key element of USPAP, and is incorporated in the writings of The Appraisal Foundation, the Appraisal Subcommittee, and the Appraiser Qualifications Board, plus federal and state laws involving accurate property valuations.
And as so often happens at various events and conferences, the blame game against appraisers just won’t quit – primarily because “we” have NO centralized and consistent representation by any one appraiser organization to help defend appraisers, and appraisers most often won’t join those organizations who do defend “us.” So “we” are kicked to the curb constantly, as is pointed out by this statement in the article:
“In fact, at a housing summit in November hosted by Urban Institute and CoreLogic, several speakers including Quicken Loans CEO Bill Emerson said that closing times for loans could be much quicker than they are now.
So what’s keeping lenders from closing a loan in a week and a half instead of a month and a half? Appraisers.”
If you’re an appraiser, you will have to decide whether or not to do Hybrid Appraisal products.