3 incredible private islands

Just for Fun – very short video
A few tidbits
– Locations: Key Largo  (FL), Washington state and Long Island NY
– Space for 110 ft. yacht
– Lowest price: $11 million
– Tennis court that doubles as a helicopter pad

http://www.realtor.com/videos/video-the-ultimate-getaway-you-can-own-one-of-these-3-incredible-private-islands/ac74f30c-de71-43ba-bae1-e54d8336a7ae 

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Analyzing the subject’s sales history

By Josh Wailitt
Short video. Worth watching. Check out some of the other videos in his USPAP errors series at www.appraiserelearning.com
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Arm’s-Length Transactions, Part 1

By Richard Heyn SRA

Excerpt: Prior to the advent of the UAD from Fannie Mae and Freddie Mac, many residential appraisers gave little thought to the term “arm’s-length transaction.” The UAD, however, requires the appraiser to distinguish between different types of sales and identify the sale as either arm’s-length or non-arm’s-length. The topic of arm’s-length transactions seems to come up almost weekly on appraiser-oriented Facebook groups and various other forums. From the discussions that take place, there appears to be a significant amount of misunderstanding and differing opinions on arm’s-length transactions, so we thought this might be a good topic for a series of blogs.

My comment: Good topic!! Part 2 coming in a couple of weeks. I will let you know when it is available. I always wondered why appraisers were discussing arms length transaction so much online!! Good topic for all appraisers, even if you don’t fill out UAD forms.

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How does a reduced agent commission impact the appraisal?

Excerpt:
4) Rubber stamping: Appraisers have to be cautious to not “rubber stamp” a lower contract price when there is a waived commission on the subject property. For instance, a property was listed around $950,000 and had multiple offers at that level. A cash buyer ended up getting into contract at $900,000. However, the real price would have been $960,000, but the buyer paid $60,000 of commissions and fees outside of escrow so the sales price would be lower (smart move to get a lower tax base).
My comment: Hot topic with lots of comments!
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How does a reduced agent commission impact the appraisal?

Excerpt:
4) Rubber stamping: Appraisers have to be cautious to not “rubber stamp” a lower contract price when there is a waived commission on the subject property. For instance, a property was listed around $950,000 and had multiple offers at that level. A cash buyer ended up getting into contract at $900,000. However, the real price would have been $960,000, but the buyer paid $60,000 of commissions and fees outside of escrow so the sales price would be lower (smart move to get a lower tax base).
My comment: Hot topic with lots of comments!
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Fannie Fiction and Fact: comp selection, adjustments, market conditions, appraisal resubmissions, and lots more info, including AQM and Risk Score!

 
In the May issue of the paid Appraisal Today 
Lots of good tips on what Fannie really says, for responding to underwriter requests!! 
 
Excerpts: 
Public records data discrepancy
Editor’s comment: Always address this discrepancy in the appraisal. Don’t be one of the unethical appraisers who makes their drawing match public records sq.ft. As we all know, public records is not always reliable. Also, 5 appraisers measuring the same house would not all have the same sq.ft. due to rounding, such as to the nearest ½ ft. vs. measuring to the nearest tenth of a foot.

GLA much larger than peers and public records could be a red flag.
Lender can look at permitted additions in the appraisal report.
Fannie pools all their data and must have a consensus of peers before firing a data discrepancy message. There is a “high bar” before it is flagged as a data discrepancy.
Accessory Dwelling Units
This is a “tough one”. Presenter Jeremy Staudenmaier said he sees this a lot. Fannie does lend on them, but wants 1 comp with an ADU. If the ADU is not allowed/illegal, contact the zoning department. See if there is a conditional/special use permit. Fannie may have policy changes on ADUs to make it easier for lenders and appraisers, but details are not available yet. Fannie looks for permitted use,
done in “workman like” manner
To read the full article, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.
 
If this article saved you a few underwriter hassles, 
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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Housing Note theme of the week: Sgt. Pepper’s Lonely Hearts Club Band 50th Anniversary

By Jonathan Miller
“June 1st, we will celebrate the 50th anniversary of the Beatles’ Sgt. Pepper’s Lonely Hearts Club Band, the number one rock album of all time.” Read the blog to see how Miller weaves this into his real estate and appraisal commentary!!
Scroll down the page to see:
– A Listing Description for the Ages [With a Little Help from My Friends] (near the top of the post)
– Appraiserville [A Day in the Life] (after the photo of the small outdoor pool inside a home)
Excerpts: High-end appraisal lock by AMCs is collapsing
3 major Wall Street investment banks that handle a lot of residential mortgage volume have called me to warn my firm to expect significant work volume from them soon. They are either not renewing their AMC agreements or requiring their AMCs to create high-end appraisal groups that cater to high-end mortgage loans.
1 major wealth management banking group that is locked into AMC agreements from their larger retail group has formed a high-end review group so that the same people that review the slog presented by AMCs aren’t the same people who review high-end appraisers in specialized markets.
Also in Appraiserville:
– From the Desk of Dave Towne: Your Appraisal Signature
– Zillow’s Zestimate Under Siege
– Updates from the Real Estate Industrial Complex (Appraisal Institute issues)
– Plus more
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How Do We Make the Appraisal Profession Great Again?

By George Dell
Excerpt:
…the appraiser education, the entire curriculum, our fundamental books, even our journal articles start with one premise, one basic assumption . . .  That the appraisal process starts with “pick comps.”  Your comps should be similar, competitive, and comparable.  Be a good boy or girl – pick your comps carefully.  Make sure they’re similar.
But not one word about (technically), what is a good comp?  All we hear is that a comp should be competitive.  And similar.  And able to be compared . . .

https://georgedell.com/how-do-we-make-appraisal-great/ 

My comment: Interesting, short blog post. Add your comment.
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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 paid monthly 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 increased 4.4 percent from one week earlier

WASHINGTON, D.C. (May 24, 2017) – Mortgage applications increased 4.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 19, 2017.

The Market Composite Index, a measure of mortgage loan application volume, increased 4.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared with the previous week. The Refinance Index increased 11 percent from the previous week to its highest level since March 2017. The seasonally adjusted Purchase Index decreased 1 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 3 percent higher than the same week one year ago.

The refinance share of mortgage activity increased to 43.9 percent of total applications from 41.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.2 percent of total applications.

The FHA share of total applications increased to 10.8 percent from 10.6 percent the week prior. The VA share of total applications decreased to 10.5 percent from 10.7 percent the week prior. The USDA share of total applications remained unchanged at 0.8 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to its lowest level since November 2016, 4.17 percent, from 4.23 percent, with points increasing to 0.39 from 0.37 (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 $424,100) decreased to its lowest level since November 2016, 4.11 percent, from 4.23 percent, with points increasing to 0.31 from 0.30 (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 decreased to 4.07 percent from 4.11 percent, with points decreasing to 0.34 from 0.37 (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 its lowest level since November 2016, 3.45 percent, from 3.51 percent, with points increasing to 0.38 from 0.33 (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 decreased to 3.27 percent from 3.30 percent, with points increasing to 0.35 from 0.21 (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.

By on May 25, 2017   /   adjustments, AMCs, appraisal business, Fannie, lender appraisals, mortgage loan volume, unusual home, unusual homes, USPAP, zillow   /   Leave a comment
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