Appraisers' forecast for biz in 2014

AppraisalPort Polls – 2014 biz forecast
www.appraisalport.com

Do you expect appraisal fees to change in 2014? January 6, 2014
Yes, increase substantially – 384 votes – 7%
Yes, increase slightly – 1,030 votes – 18%
Yes, decrease slightly – 420 votes – 8%
Yes, decrease substantially 230 votes – 4%
No, stay about the same – 3,227 votes – 57%
Not sure – 302 votes – 5%

Total Votes: 5,593

My comment: Looks like the majority of appraisers see stable fees. However, only a few weeks later, I am hearing reports of AMCs dropping fees, especially on broadcast orders.

——————–

I think the business environment for appraisers in 2014 is going to be: (December 30, 2013)
Much better than 2013 – 212 votes – 4%
Better than 2013 – 516 votes – 9%
About the same as 2013 – 1,962 votes – 35%
Worse than 2013 – 1,781 votes – 32%
Much worse than 2013 – 621 votes – 11%
Too early to tell – 548 votes – 10%

Total Votes: 5,640

My comment: Looks like appraisers are unsure about 2014.
They left off my choice – I have no idea!!

Appraisal Today newsletter

Positive Resolution to Chase AppraiserBlacklisting Saga

 Source: WorkingRE

Excerpts:
Nearly two years have passed since Working RE first reported the story of John Dingeman, an appraiser who faced the difficult choice of either violating USPAP’s Confidentiality Section or suffering the wrath of JP Morgan Chase by refusing. Finally, this holiday season, there is some good news to share.

In March 2012, Dingeman refused Chase’s initial request to discuss an appraisal with the bank because of the Confidentiality Section of USPAP.  Immediately following his refusal, Dingeman was placed on Chase’s Ineligible Appraiser List. Chase then filed a complaint against Dingeman with the Arizona Board of Appraisal. The complaint was promptly dismissed and found to be without merit.

The good news? After battling for over a year, Dingeman recently learned that he has been removed from Chase’s “Ineligible Appraiser List.”  He’ll be the first to tell you that it didn’t happen without a fight.

http://www.workingre.com/blacklist-positive-resolution-chase-saga/

My comment: I am not a lawyer and don’t play one on TV, so I don’t know what it means legally. But, it is great to see an appraiser winning!! I do know that many appraisers refuse to work for Chase because of this and many other problems.

Appraisal Today newsletter

Info on Fannie’s do not use appraiser list available

To keep up on what is happening in appraisal businesses, mortgage lending, USPAP, etc. , Plus humor and strange homes, sign up for my FREE weekly appraisal email newsletter, sent since June 1994. Go to Home on the right side of the menu at the top of this page or go to www.appraisaltoday.com
Sign up in the Big Yellow Boxes

I regularly write about appraisal business management issues
in my paid Appraisal Today monthly newsletter.
$99 per year  or (credit card only) $8.25 per month, $24.75 per quarter or $89 per year.
For more info, go to https://www.appraisaltoday.com/products

Info on Fannie’s “do not use” appraiser list available

Many thanks to appraiser Dave Towne for sending the email below!!

FannieMae distributed this info below on 1/07/14 ….. shown here just as an FYI, because appraisers cannot access the AQM page.

But you can access the LL-2013-10 which describes some of the negative reporting issues the GSE’s have seen since the UAD was implemented.

Your UAD reports are subject to a higher level procto exam if:
–>you often use the same comp in different reports, but the data you report for that property is different between reports
–>you change the Quality and Condition rating for the same property used as a comp in different reports  (The first time it’s used the Q & C ratings should ‘stick’ thereafter)
–>you are contacted by a GSE reviewer who discusses the above item(s), and you don’t have a credible explanation as to why you have done the above
–>you continue to make the same reporting errors frequently

If you wind up on the GSE’s ‘do not use list’ you are effectively out of business – at least for federally regulated mortgage lending reports.  So “let’s be careful out there!”

Appraiser Quality Monitoring Information
Fannie Mae has published a new web page with information about the recently implemented Appraiser Quality Monitoring (AQM) process. The new AQM web page includes FAQs and a link to the AQM list identifying appraisers whose appraisals will be subject to 100% review by Fannie Mae or whose appraisals are no longer accepted by Fannie Mae. The AQM list is protected content, and approved Fannie Mae sellers/servicers may set up access through Technology Manager.

For more information, refer to Lender Letter LL-2013-10: Appraisal Quality, which reminded lenders of Fannie Mae’s appraiser selection requirements, highlighted several data quality issues, and described the AQM process that Fannie Mae has implemented to identify and monitor issues with individual appraisers.

Direct link to Fannie Appraiser Quality Management (AQM) web page at  www.fanniemae.com/singlefamily/appraiser-quality-monitoring

Dave Towne, AGA, MAA                                             towneappraisals@clearwire.net                           www.towneappraisals.comMount Vernon, WA

===========================================

What do I think? This can be good for the appraisal profession!

Appraisers have been complaining for years about the “other” appraisers who are unethical, incompetent, lazy, or stupid. For many clients, since licensing, all appraisers are seen as the same. Why not use someone who gives you what you need – turn time, fee, no problems with underwriting, etc.?

Unfortunately, AMC hassles have driven many very experienced appraisers out of the business, or refusing to do AMC work. This makes the problem more difficult.

Maybe more AMCs will start using appraiser quality rather than fee, turn time, etc. to select their appraisers.

Also, the preference by many AMCs for low fees makes it very tempting to skimp on the time and effort for doing appraisals.

A low fee does not mean that you can do a poor job on an appraisal. I know what it is like to work for a low fee. I tried doing low fee jobs a few times over the years, but found I had a really “bad attitude” about the appraisal and had to force myself to do the same appraisal no matter what the fee. Doing a good appraisal is more important to me than using a low fee as an excuse for doing less work on an appraisal.

It is great to see that Fannie is using objective criteria, rather than a reviewer that gives an appraiser a bad rating, removing them from the list of a major lender. Just like appraising, reviewing is subjective. Particularly with the use of reviewers not familiar with your local market.

Appraisal Today newsletter

Fannie's Appraiser Quality Monitoring(AQM) FAQs July 2014(Opens in a new browser tab)