Appraisal News and Business Tips

12-15-16 Newz// Unique Airports, Deregulation and Appraisers, Victorians Under $200k

Beautiful airports and Victorians under $200,000

Unique and Beautiful Airports Around the World

Architecture that redefines what it means to travel in style.

All I can say is WoW!! Take a break for a few minutes and look at these photos…

http://www.atlasobscura.com/articles/photos-of-the-worlds-most-unique-and-beautiful-airports

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Affordable homes from all over the country (Hint: No fixers)

Just scroll down the pages.

7 Victorians under $200,000 (No tiny homes)

http://www.realtor.com/news/trends/victorian-homes-under-200k/

8 homes under $100,000 (Hint: no fixers)

http://www.realtor.com/news/trends/black-friday-bargain-homes-under-100k/

My comment: Wow!! Those Victorians in my city would be way over $1,000,000 on lots under 5,000 sq.ft. !!!


Sadly, The Appraisal Institute is now working against its local chapters by Jonathan Miller, posted 12/9/16

Excerpt: It has been discouraging to watch the Appraisal Institute (National) erode into irrelevance while the appraisal industry is crying out for leadership at a seminal moment in our history. Dodd-Frank is about to be gutted and appraisal management companies have run out of appraisers willing to work for half pay. Instead they have morphed into a trade group that is unable to help its members. I challenge my readers to provide any evidence of such leadership since the financial crisis.

One of the only remaining redeeming features of the Appraisal Institute aside from their SRA and MAI designations has been the strength of local chapters. It’s where the rubber hits the road, where appraisers press the flesh at local meetings, take classes and listen and interact with guest speakers. The real value of AI membership remains at the chapter level.

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Here’s the current controversy over a non-vetted decree from National that involves money.

National has enacted a new policy that requires all money at the chapter level be administered by National…

http://www.millersamuel.com/sadly-the-appraisal-institute-is-now-working-against-its-local-chapters/

Additional comments from Miller (scroll down the page pass the Crayola colors and teeny Paris apartment to Appraiserville: http://www.millersamuel.com/note/december-9-2016

My comments: Taking chapters’ money is nothing new. Chapters have worried about this for years. It definitely is threatening to larger chapters, such as Miller’s New York Chapter.

Excerpts from Miller’s commentary is around on social media. I recommend reading all of what he said. My MAI designation is very valuable, so I keep my membership. Also, I really like my local chapter, Northern California. I do not like the national part of the organization. I was active for awhile after unification of AIREA and SREA but did not like the direction it was going, so I quit being active. It was moving farther and farther from its residential members. One reason was the lack of residential members in leadership positions. After licensing, many residential members dropped out as the SRA designation did not mean much for lender appraisals. On the plus side, AI has excellent education (all types of properties) and publications (mostly non-residential).

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Rent Roll Data Standard Proposed by MISMO

Excerpt: The Mortgage Industry Standards Maintenance Organization is proposing a standard for the maintenance and sharing of commercial and multifamily real estate rent-roll information. It is designed to support all types of income-producing property, including office, industrial, retail, multifamily, assisted living, self-storage, mobile home parks and hotels.

The standard includes 87 fields of property and financial data as well as an easy way to maintain and share the data through widely used, secure technology.

http://www.nationalmortgagenews.com/news/technology/rent-roll-data-standard-proposed-by-mismo-1092592-1.html

My comment: MISMO worked on standardizing residential home data for quite a while. Finally, the income property sector is trying to standardize. Of course, UAD started a while ago for single family properties. I’m trying not to think about AVMs on these properties. But, some of them would be very easy, such as apartments and warehouse properties. I love appraising them as they are easier than 1-4 unit properties

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ASB and AQB Exposure Drafts

Third Exposure Draft of Proposed Changes for the 2018-19 Edition of the Uniform Standards of Professional Appraisal Practice issued 12-7-16, 81 pages

Written comment deadline – 1/27/16

The Board currently intends to adopt any revisions for the 2018-19 edition of USPAP at its public meeting in Dallas, Texas on February 3, 2017. Any such revisions to USPAP would become effective on January 1, 2018.

This is just an FYI for you. I have not had time to read it and compare with the previous draft, but it looks like mostly the issues in the previous draft.

Click here to read the draft.

https://appraisalfoundation.sharefile.com/share#/view/s54a2ccba63644aa8

I will go over any controversial issues in my paid Appraisal Today newsletter, available 1/1/17.

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AQB September 2016 AQB Exposure Draft and Comments

Modified: 11/21/2016

FYI, just for your information. I have not had time to go over the document. Lots of comments, worth reading if you are interested in qualifications for appraisers.

Download link: https://appraisalfoundation.sharefile.com/share?#/view/s3393d87a6de4338a

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Tips on Dealing with Complex Residential Appraisals By Joseph Lynch

In the December issue of the Paid Appraisal Today

Excerpts:

Unpeel the Onion-Expand Outward

For complex assignments, you often need to expand outside of the typical box for your search for comparables. Should you limit your comparable data search to only the subject’s neighborhood? Or does it make sense to look throughout the subject’s city? Or is it one of the best homes in the county? Does it have regional appeal?

Bracket the Factor of Complexity

This is somewhat obvious but if at all possible, bracket the factor of complexity. This creates a box around the impact of the complex feature and lends credibility to how you dealt with the issue. One significant benefit of bracketing is that lending clients understand bracketing well. For example, if your subject is facing a busy street, you can use a sale on a much busier street to establish a bottom number on the subject’s external obsolescence because of its negative location.

This well written article has lots of practical tips for appraising the odd ball properties we all appraise, even if we try to avoid them ;> Plus short case studies on complex properties.

In the December issue of the paid Appraisal Today,

available to paid subscribers.

To read the full article, plus 2+ years of previous issues, subscribe to the paid Appraisal Today 

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What do I think about Trumpish speculations on deregulation and appraisals?

For awhile after the election I thought it meant getting rid of appraisals. Of course, lenders would love this.

But, why did we still have appraisals after the deminimus of $250,000 in 1989? Investors, who purchase the residential loans wanted them. Will they trust CU, BPOs, AVMs, etc. etc. Not very soon, if ever. Many thanks to the long conversation I had with long time reader and Michigan appraiser David Fishman. It reminded me of 1989 FIRREA and what it meant. Not sure if they will cut way back on commercial appraisal requirements, though.

WHAT DO YOU THINK? POST YOUR COMMENTS AT WWW.APPRAISALTODAYBLOG.COM !!

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More Trumpish Speculations on appointees

One big roundup of reactions to Ben Carson, HUD secretary

Opinions vary greatly. Big surprise, right?

Tweets from: Pence, Gingrich and Paul Ryan. Commentary from Wall St. Journal, Washington Post, and New York Times.

http://www.housingwire.com/blogs/1-rewired/post/38688-heres-one-big-roundup-of-reactions-to-ben-carson-hud-secretary

I love tweets. Very short!! The new method of political comments. No, the word appraisal does not appear anywhere ;> I have no idea what will happen. Better to let others speculate…

Much longer housing market commentary at: http://www.housingwire.com/articles/38674-ben-carson-selection-as-next-hud-leader-divides-housing-industry

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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 www.mbaa.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 https://www.appraisaltoday.com/products.htm or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

USE THIS DATA TO SEE IF APPRAISALS ORDERS ARE GOING UP OR DOWN!!

Mortgage applications decreased 4.0 percent from one week earlier

WASHINGTON, D.C. (December 14, 2016) – , according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 9, 2016.

The Market Composite Index, a measure of mortgage loan application volume, decreased 4.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5 percent compared with the previous week. The Refinance Index decreased 4 percent from the previous week. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 7 percent compared with the previous week and was 2 percent higher than the same week one year ago

The refinance share of mortgage activity increased to 57.2 percent of total applications from 56.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.2 percent of total applications.

The FHA share of total applications increased to 11.6 percent from 11.3 percent the week prior. The VA share of total applications decreased to 11.9 percent from 12.6 percent the week prior. The USDA share of total applications remained unchanged at 0.9 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since October 2014, 4.28 percent, from 4.27 percent, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to its highest level since September 2014, 4.29 percent, from 4.22 percent, with points decreasing to 0.24 from 0.29 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.02 percent from 4.00 percent, with points decreasing to 0.33 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.52 percent from 3.53 percent, with points decreasing to 0.38 from 0.39 (including the origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.28 percent from 3.39 percent, with points remaining unchanged at 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate decreased 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=

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