Loan applications have been declining sharply since April, 2013

How do I know? Loan applications peaked in April 2013 and have been declining since then. Appraisals are ordered after loan applications so loan origination data tells you the future. The Mortgage Bankers Association has published a weekly index of loan applications since 1990. I have included a graph in every issue of my paid Appraisal Today newsletter since 1992. I also periodically include a copy of the MBA’s weekly data in these free email newsletters. Also, of course every economist has been forecasting substantial declines in loans.

About a month ago I started getting the inevitable calls from appraisers when they finally figured out their lender business has slowed down. I enjoy talking with appraisers, but it seemed better to tell my almost 14,000 email subscribers.

What are the main questions from appraisers?
How do I get non-lender work?
Do I think business will pick up soon?
How can I find out the names of good AMCs?

What appraisers are not asking is:
– Which AMCs will be going out of business?
– Are AMC fees dropping?

When will business pick up?
We are in a decline in lender work because rates are up. It is just another inevitable cycle of boom and bust mortgage lending that started in the 70s when Fannie and Freddie securitized lenders’ loans so they could sell them and get more loans. The volume is driven by refis. Prior to that time it was driven by real estate sales. I have no idea when it will pick up, but rates are forecast to increase. I don’t know when they were this low in the past, going back to the 1930s. They may have been lower prior to the 1930s but there is not enough data to know. There are some people who can’t refi because they don’t have enough equity, couldn’t qualify for a loan, or just never got around to refinancing, etc.

How to get non-lender work?
Many post-licensing appraisers have only worked for lenders. Some even use current lending form reports in court when testifying in court. I have been writing about non-lender work since 1992 in my paid Appraisal Today newsletter. In the October issue of the paid Appraisal Today I will have an article “Quick start for non-lender work”. I also have special reports on Estate, Legal and tax related, and Relocation appraisals ($10 for paid subscribers. $15 for non-subscribers). Or, subscribe and get over 2 years of back issues FREE which cover these topics plus Free Special Reports. See ad below.

Get answers to many of your AMC questions by signing up at  
For unknown reasons appraisers seem to think it is expensive or “too good to be true”. They are wrong. I wrote an article about the company earlier this year for my paid Appraisal Today newsletter.  is free until the end of this year. After that fees are based on how many reviews you contribute. The more reviews, the lower your annual fee. They advertised in my email last week in an ad sent separate from this email. Few appraisers opened their ad. Pathetic. I guess appraisers spend all their time online reading postings from other appraisers, a complete waste of time for getting AMC information. Or, just assume nothing is changing or it will pick back up soon.

Don’t even get me started on appraisers who lost money when AMCs went into bankuptcy because they didn’t know it was coming. There were hints online for months before they tanked. lets you know what is coming.

On the plus side, you made it though the worst appraisal business collapse ever – HVCC in 5/09 when appraisers lost almost all their mortgage broker clients and had to work for AMCs. Many just quit appraising. Today’s slowdown is nothing compared with that time.

To understand AMCs better (beyond the data), purchase my AMC Special Report for $20. Free to paid subscribers.

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1 Comment
  1. When will business and fees pick up for appraisers?
    A month from NEVER.
    Get a hint appraisers. You refused to boycott AMCs; now you are stuck with them until they bury you (which should be within the year for those of you who were crazy enough to stick it out for the past 5 years).


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