Hybrid appraisal products are appraisals and should be completed by appraisers with out the interference of Lenders in the process. We saw what happened to the Real Estate market in 2004 to 2007 when new Lending practices became prominent in the market, this is just a similar plan to stream line the lending process with out allowing Appraisers to complete a real appraisal for properties in what has been shown to be good lending practices.
If you look at the history of the lending industry you had about 40 years of sold growth in the real estate industry with some ups and downs but normal market corrections and about 4 years of poor lending practices which will haunt us for the rest of our lives and our children's lives.
These new hybrid appraisal products, from what I have seen, are not what I would use as the basis to lend money on, especially if it is my money being used for the mortgage. If a bank, mortgage company, GSE is using their own cash they can do whatever they want to do, but they are asking us to cover their bad choices..... just say no.