Appraisal News and Business Tips

2-23-17 Newz// Transportation failures, Polluted Cities, Appraisers Age

With Trump changes in the news, guess I need to put something in this email newsletter ;>


Big Banks Could Get Back in the Mortgage Market in a Big Way
Excerpt: For the past six years, there has been a quiet revolution in the mortgage market: Big banks like JPMorgan (NYSE: JPM), Bank of America (NYSE: BAC) and Citibank (NYSE: C) have moved out and nonbank lenders such as Quicken, loanDepot and Caliber Home Loans have moved in – in a big way.
The revolution went largely unchallenged, but that may be about to change if the Trump administration removes regulations on the big banks and stops sending bad loans back to the banks for repayment. Deregulation would open the door for big banks to move back in.
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The Least Polluted U.S. Cities (and the Dirtiest)
Least polluted
1-Naples FL
2-Salem OR
10 – Salinas CA
Most polluted
1-Philadelphia PA
2-Los Angeles CA
10- Milwaukee WI
My comment: Worth reading. Very interesting results and a well written article!!
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5 Spectacular Transportation Failures

Bridge to Nowhere, Mount Baldy, CA
Tacoma Narrows Bridge, Tacoma CA
The Can Opener, Durham NC
The Viaduct Petrobras, Brazil
Leinster Gardens False Facades, London England
My comment: You gotta see the photos!! Another fascinating article from Atlas Obscura.
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New in the March 2017 issue of the paid Appraisal Today

 

Available March 1, 2017
  • Residential Cost Approach: complying with USPAP when lenders require the Cost Approach – Part 1 by Denis Desaix, MAI, SRA. Lots of good tips “appraiser files”, and suggested comments. Plus site value, old improvements, what USPAP says, sources for improvement costs, etc.
  • How to get started in commercial appraising: 5+ unit apartments. Higher fees, steadier work, no AMCs, etc. 5+ unit appraisals are easier than 2-4 units. There are some options for those without a college degree.
  • Appraiser surveys: blacklisting, regs/enforcement, background checks, pressure, liability issues, etc. What appraisers think about hot topics.
To read these articles, plus 2+ years of previous issues, subscribe to the paid Appraisal Today
$8.25 per month, $24.75 per quarter, $89 per year (Best Buy)  
or $99 per year or $169 for two years 
Subscribers get, FREE: past 18+ months of past newsletters 
plus 4 Special Reports, plus 2 Appraiser Marketing Books!!
To purchase the paid Appraisal Today newsletter   go to
www.appraisaltoday.com/products  or call 800-839-0227.

If you are a paid subscriber and did not get the February 2017 issue, emailed February 1, 2017, please send an email to info@appraisaltoday.com  and we will send it to you!! Or, hit the reply button. Be sure to put in a comment requesting it


What is going to happen to appraisers in 2017?
Focuses on “appraiser shortage” and Fannie’s recent statements on use of trainees. 
FREE HousingWire Webinar – Wednesday, March 1
11:00 AM PST / 1:00 PM CST / 2:00 PM EST
Key speakers: Zach Dawson (Fannie Mae), Brian Coester (AMC), Matthew Simmons, FL appraiser
If you can’t make the live webinar, sign up and get the recording.
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Appraiser Shortage or Just Fed Up?
by Richard Hagar, SRA
Excerpts: There’s a lot of shouting and arm waving going on: there’s a shortage of appraisers! No there isn’t! Well which is it?
Let’s start off by acknowledging that there is a shortage of Tier 1 appraisers and appraisers working in many rural areas and small towns. However, a lot of what some perceive as a “shortage,” really isn’t; the appraiser endures.
Order Examples
In the past month we’ve received requests:
* To accept this order we’ll require your cell phone number (so that we can personally get a hold of you, when we feel like it, any time between 5:00 a.m. and 11:00 p.m.)
* For a property in Anchorage, Alaska (my office is in Seattle, 2,200 miles away); the AMC was willing to pay a whopping $350.
* For a duplex created from a corner grocery store built in the 1800s; the offered fee, $500.

My comment: it will be interesting to see how this contrasts with the webinar above, discussing Fannie Mae’s statement on use of trainees, which they have always allowed.

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Poll: If you are a licensed or certified appraiser, what is your current age range?
Take the current poll at www.appraisalport.com . “Which of the following activities do you spend majority of your time?” Field, writeup, research, etc.
My comment: What about over 80 and over 90 ;> I am 73… I think there are a few appraisers over 90…
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Fed sees growing risk in U.S. commercial real estate, including valuations
Excerpt: Federal Reserve officials do not see broad risks developing in U.S. asset markets save for one: commercial real estate.
That concern was evident on Tuesday in the U.S. central bank’s semiannual Monetary Policy Report to Congress, in which commercial property prices were singled out as a “growing concern” even as the Fed described wider risks to financial stability as “moderate.”
“Commercial real estate (CRE) valuations, which have been an area of growing concern over the past year, rose further, with property prices continuing to climb and capitalization rates decreasing to historically low levels,” said the report, which is prepared by Fed staff and delivered to Congress in tandem with Chair Janet Yellen’s twice-yearly testimony to lawmakers.
My comment: I have been reading about this issue for awhile but this is the first time that valuations were mentioned.
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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.
Mortgage applications decreased 2.0 percent from one week earlier – rates up, refis down

WASHINGTON, D.C. (February 22, 2017) – Mortgage applications decreased 2.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 17, 2017.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.0 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 1 percent compared with the previous week.  The Refinance Index decreased 1 percent from the previous week to the lowest level since January 2017. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier to the lowest level since November 2016. The unadjusted Purchase Index increased 2 percent compared with the previous week and was 10 percent higher than the same week one year ago which included the President’s Day holiday. 

The refinance share of mortgage activity decreased to 46.2 percent of total applications, the lowest level since November 2008, from 46.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.3 percent of total applications.

The FHA share of total applications decreased to 11.6 percent from 11.9 percent the week prior. The VA share of total applications increased to 12.1 percent from 11.8 percent the week prior. The USDA share of total applications decreased to 0.9 percent from 1.0 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.36 percent from 4.32 percent, with points increasing to 0.35 from  0.34 (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 $424,100) increased to 4.29 percent from 4.28 percent, with points increasing to 0.28 from 0.27 (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 4.14 percent from 4.12 percent, with points increasing to 0.33 from 0.31 (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 increased to 3.56 percent from 3.55 percent, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.31 percent from 3.34 percent, with points increasing to 0.31 from 0.19 (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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