Appraisal News and Business Tips

6-23-16 Newz:: San Francisco under water – Funny owner DIYs – C/R complaints

 In 100 Years, $77 Billion Worth Of San Francisco Property Could Be Underwater

Excerpts:

Around the city, more than 200,000 commercial and residential buildings-along with major infrastructure like the airport-are at risk from either temporary flooding or permanent loss due to sea level rise if the city does nothing to prepare. Even more dangerously, the risk extends well inland, and isn’t limited to property directly on the coast.

Armed with the new maps, San Francisco is currently creating a strategy to try to save as much property as possible. “It’s almost inevitable that, in the end, the plan will be a combination of multiple approaches,” says VanderMarck. “One approach in some areas will be to surrender to the fact that seas are rising-it’s impractical, either economically or for other reasons, to try to defend against that in certain areas.” In other places, the city may build higher walls or other defenses.

In the Ocean Beach neighborhood, for example, it’s likely that the city will reroute portions of the road that’s currently along the water, replacing some areas with open space, while also building up dunes and protecting some infrastructure like a wastewater tunnel. On Treasure Island, where the city is planning to build a new sustainable community, any new housing will be set back from the water, with parks along the edges-parks that very likely will be reclaimed by the bay.

My comment: FEMA is rezoning all the coastal properties in the U.S., including my small island city in San Francisco Bay. Of course, the big complaint was having to buy flood insurance for those who have mortgages….

Check out the full article and the very interesting graphics:

http://www.fastcoexist.com/3060770/in-100-years-77-billion-of-san-francisco-property-could-be-underwater

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Not C/R fees? File a complaint with the FDIC!!

Excerpt:

Here is what VaCAP received from an appraiser who reached out to the FDIC:

I just had a call from an extremely pleasant lady named Susan Welch from the FDIC Consumer Response Center (1-800-378-9581). I had sent a note over regarding an AMC attempting to get me to sign a “Base Fee Letter” agreeing to a drop of my base fee for full appraisals to $325 from $400-500. She said the FDIC is VERY interested in hearing from appraisers regarding AMCs paying low fees. As you know FDIC regulates the banks, who are responsible for third party oversight with AMCs they engage. FDIC wants Regulation Z to be followed and will enforce it for appraisers.

Incidentally I opted to have them proceed while keeping me anonymous, a la whistle blower status. Susan said she would be surprised if they had not investigated this within 90 days.

FDIC bank examiners will contact the bank involved and look at their procedures for engaging appraisers, look at fees appraisers are actually paid versus what is considered C&R based on things like the VA sheet and go from there.

Click here for more info plus read the comments:

http://appraisersblogs.com/low-amc-fees-fdic-appraisers-regulationz

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18 DIYs That Failed So Badly, They’re Actually Impressive

Here are a few:

4. The secret is we use cake frosting to set the tiles!

14. “Next on Drunk Carpentry: Tables!”

They can’t really be described ;>

 

My comment: I wonder what FHA would say!!

Check them out at:

http://lightersideofrealestate.com/real-estate-humor/fail/impressive-diy-fails

 

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Time Has Come Today

By Richard Hagar, SRA

Excerpts:

The wheels of justice turn slowly but grind exceedingly fine. After years of working with regulators and helping write several real estate laws and regulations, my experience tells me that it can take years for laws to be adopted and staff of regulatory agencies to be trained. It can take years before there is any enforcement or real change. Appraisers are upset with how slowly enforcement actions have been brought against various AMCs. Well, “the time has come today,” just like Chambers Brothers hit song says, circa 1966.

Contrary to what some appraisers believe, the laws we have in place today were developed to protect appraisers, lenders, and of course the public, who relies on quality appraisals and an honest appraisal process. Better business practices, directed by laws, will allow appraisers, AMCs and lenders to survive, profit, and provide something of value to the American public: a high quality appraisal provided by a competently trained appraiser who is appropriately paid for his or her service.

And yet, for some people and organizations, if there’s a regulation they don’t like, they ignore it. When confronted with the regulation in black and white, they try to spin its meaning to their advantage. Why? Often it’s because new regulations can negatively impact their business practices and income. I see this in criminal and civil cases involving banks, AMCs, and appraisers.

http://www.workingre.com/time-has-come-today/

My comment: Worth reading the full article with specific examples. Plus, read the comments and post your own comment.

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Appraisers seek to halt federal banking rule change

According to a person familiar with the issue who would not speak for the record, the regulatory agencies, largely at the behest of smaller community banks, want to allow for cheaper and less time-consuming valuations, such as those made by a real estate agent, or a Zillow Zestimate, to suffice for certain types of federally backed loans.

As described by the two organizations in a press release, the changes “would exempt over 90% of appraisals performed in connection with residential mortgage transactions from all of Title XI’s requirements including, most critically, those related to enforcement In cases where an appraiser failed to competently perform the assignment or otherwise violated the Uniform Standards of Professional Appraisal Practice (USPAP) or appraiser independence requirements.”

My comments: the smaller community banks have wanted this for many years. Click here to read more and get links to proposed regulatory change and links to a summary sheet and white paper from the two associations.

http://www.builderonline.com/building/regulation-policy/appraisers-seek-to-halt-federal-banking-rule-change_o

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, go to https://www.mba.org

Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to www.appraisaltoday.com/products or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

 

WASHINGTON, D.C. (June 22, 2016

Mortgage applications increased 2.9 percent from one week earlie

, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 17, 2016.

The Market Composite Index, a measure of mortgage loan application volume, increased 2.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2 percent compared with the previous week. The Refinance Index increased 7 percent from the previous week. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 12 percent higher than the same week one year ago.

The refinance share of mortgage activity increased to 57.7 percent of total applications from 55.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.7 percent of total applications.

The FHA share of total applications decreased to 11.7 percent from 11.8 percent the week prior. The VA share of total applications remained unchanged at 11.1 percent. The USDA share of total applications remained unchanged at 0.6 percent.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, 3.76 percent, from 3.79 percent, with points increasing to 0.33 from 0.32 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to its lowest level since January 2011, 3.70 percent, from 3.75 percent, with points increasing to 0.28 from 0.26 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged from 3.61 percent, with points decreasing to 0.24 from 0.27 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.04 percent from 3.06 percent, with points increasing to 0.36 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs increased to 2.92 percent from 2.87 percent, with points decreasing to 0.21 from 0.26 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

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