Appraisal News and Business Tips

3-9-17 Newz .Non-lender fees .Mortgage volume since 2013 .AMCs gone wild

Why are barns painted red and the White House white?

Just for fun!! Great short video plus good explanation.
Excerpts: there are some paint choices that never seem to come up for question. Ever wondered why barns are red? Why is the White House white? And is the Golden Gate Bridge supposed to be … gold, instead of a reddish-orange?
My comment:
Also discusses: Why are green rooms green? For musicians, this is where you ‘hang out’ waiting to play. I have never been in a green room painted green ;> Now I know where the name comes from ;>
Click here to watch the short video and read the info below
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Strip-Mall Totems: The Trees of Sprawl
Just for Fun ;>
Excerpt: These forgotten or overlooked trees engage with us on multiple levels, whether we notice or not; they’re full of stories. Many, obviously, were planted – planted to soften a massive hardscape, arrest fresh-bared soil, comply with municipal regulations. A few might be legacy trees from pre-sprawl farmland or prairie copses. Others colonize the sprawl-scape via a bird’s gut or a propitious breeze.
My comment: Strip mall trees will never be the same again for me ;> check out the photos and the comments.
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Valuation Management Group Co-hosts Webinar with Fannie Mae – Collateral Policy & Technology Guidance for Appraisers, March 29 2017
Fannie Mae is presenting a free webinar for residential real estate appraisers on Wednesday, March 29, 2017 at 11 am EST. This webinar will cover collateral policy, technology guidance for appraisers, and the latest information on Fannie Mae’s appraisal policies. Fannie Mae agreed to a second event due to maximum capacity and positive feedback and response to the previous co-hosted event.
Julie Jones, Fannie Mae Credit Risk Analyst will be the presenter, and Jeremy Staudenmaier, also a Fannie Mae Credit Risk Analyst who helped develop the information, will be participating and answering questions. The goal of the webinar is for appraisers to gain a better understanding of Fannie Mae’s mission, to dispel common appraisal myths, and to improve communication with appraisers.

To register,click here:

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What will you do when business really slows down? Start looking for non-lender work when everyone else does?  

It’s a lot easier to get non-lender work when business is strong. There is very little competition. Other appraisers assume/hope/etc. that it will always be busy and do nothing. Lending always goes up and down.
I have been writing about getting non-lender work in my paid newsletter since 1992. For example, I can tell you how to get your business in the top of google search listing at no cost and just a few minutes of time. Half my appraisal business comes from Internet searches.
The two most popular non-lender work for residential appraisers is estate/trust and divorce. Subscribers learn the pluses and minuses of these types of non-lender appraisals and many other types. I have not done any lender work since 2005 and regularly turn down work as I am too busy.
 
If my articles help you get one non-lender appraisal,
it is worth the subscription price!! 
$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.
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How much are you charging for non-lender work?
You should base your non-lender appraisal fees on what local borrowers are paying for their mortgage appraisals. Call around and ask.DO NOT charge what lenders and AMCs pay you. 
I keep hearing about appraisers charging low lender/AMC fees. I have no idea why. If so, they should never complain about low fees again.
My non-lender appraisal fees keep going up and up as borrowers keep paying more and more, due to high demand from lenders. I am still below what they pay, so it seems like a “good deal” to non-lender clients.

I have been writing about non-lender work since 1992 in my paid Appraisal Today newsletter.

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The ugly truth about appraisal fees
By Ryan Lundquist
Excerpt: The Issue: I was asked to appraise something challenging, so I quoted a fee that was higher than a standard fee in Sacramento but still reasonable for the job because the house was funky. Anyway, I was comfortable with the fee and it was accepted by the AMC (Appraisal Management Company) that the lender hired to manage the appraisal ordering process.
But then things got interesting because through the course of the transaction someone showed me an email from the loan officer where I learned the AMC was actually charging the buyer $345 higher than the fee I quoted. What the? That seemed excessive, but the real clincher for me was the email showed a chain of conversation with the AMC where they said I was the one who quoted the much higher fee. Not only was the AMC gouging the buyer in my opinion, but there was a blatant lie that I was the one dictating this fee that was 43% higher than the one I quoted.
Look, I’m not a complainer and I am a total optimist, but this is not okay on so many levels.
My comment: See above for non-lender fees. 
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Slow Pay AMCs
 by Dave Towne
Excerpt: Through several of the ‘media sources’ I read recently, I’ve learned that “a particular AMC” based on the west coast has a slow pay reputation.
As so often happens with low echelon AMCs with few clients, when business slows down, their payment process becomes a Ponzi scheme. Ultimately they go out of business.
I currently have an outstanding report with that AMC, but the payment due date to me is March 7. So I’m respectfully withholding their name publicly from others, until and unless they don’t pay me on time.
Over past years I’ve written about how appraisers MUST keep close track of their submitted reports and payments due for them. Too many appraisers get busy and neglect to monitor their Accounts Payable for their business.
My comment: A good reminder of AMCs that are in trouble. Read Dave’s suggestions. I am very strict and have loss less than $2,000 in 30 years of fee appraising. It was my fault for poor client screening. I write about this topic regularly in my paid Appraisal Today newsletter, usually when business slows down.
Click here to read plus the many comments.
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AMC Fined for Removing Appraiser from Panel
By Isaac Peck, Editor
Excerpt: Many states also have AMC laws that have stringent requirements that AMCs must notify an appraiser when he or she is removed from an appraisal panel. Unfortunately, the lack of enforcement actions against AMCs for such violations has caused many appraisers to question whether such regulations have any effect at all.
However, in a precedent setting move, the Washington State Department of Licensing has recently become the first regulatory agency to fine an AMC for removing an appraiser from an appraiser panel without proper notification. In September 2015, the American Reporting Company (ARC) was sanctioned for “removing a real estate appraiser from [an] appraiser panel without proper notifications” and failing to “provide [a] real estate appraiser [the] opportunity to respond to removal from panel.”
Click here to read the full article for lots more info, plus the comments from appraisers.
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Rules checking software gone wild!!
If the ‘story’ can be told using 3 comps, why are 4 or more really necessary?
By Dave Towne
Excerpt: Interesting report data from review of 1.5 million appraisals. A few of the stats:
– 4.72% of the appraisals Market Value is higher than the adjusted comp values. But real estate is not perfect, and sometimes it does make sense
– 12.10 % of the appraisals use comps from different Cities. And the concern is?
– 6.25% of the reports did not use 5 or more comps. And the concern is??
Be sure to read Dave’s full comments plus the comments at the end from other appraisers:

http://appraisersblogs.com/comps-rules-check-software 

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Mortgage loan origination volume from 2013 to 2017
This graph has been in every issue of the paid Appraisal Today since 1992. I use the data from the MBA below. Business has been slowing down since the peak in 9/16.
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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 (see above) every month in my paid Appraisal Today newsletter. 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 increased 3.3 percent from one week earlier
WASHINGTON, D.C. (March 8, 2017) – Mortgage applications increased 3.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 3, 2017. The previous week’s results included an adjustment for the President’s Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 16 percent compared with the previous week. The Refinance Index increased 5 percent from the previous week to the highest level since December 2016. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 15 percent compared with the previous week and was 4 percent higher than the same week one year ago.

The refinance share of mortgage activity increased to 45.4 percent of total applications from 45.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.7 percent of total applications to the highest level since October 2014. The average loan size for purchase applications reached a survey high at $313,300.

The FHA share of total applications decreased to 11.8 percent from 12.3 percent the week prior. The VA share of total applications decreased to 11.6 percent from 11.7 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 ($424,100 or less) increased to 4.36 percent from 4.30 percent, with points increasing to 0.44 from 0.38 (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 4.27 percent from 4.23 percent, with points increasing to 0.26 from 0.25 (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 4.18 percent from 4.07 percent, with points decreasing to 0.32 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 15-year fixed-rate mortgages increased to 3.57 percent from 3.51 percent, with points remaining unchanged at 0.36 (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 increased to 3.48 percent from 3.35 percent, with points decreasing to 0.20 from 0.29 (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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