Does a Bedroom Need a Window To Be Legal?
Excerpts: Bedrooms are one of those features of a home that sounds good if there are more of them. I get calls all of the time from real estate agents asking if a certain room can be considered a bedroom.
Of course, there are other ways to look at this as well. There are two components to the value of a bedroom including the utility of the room to be used as a bedroom and also the actual square footage that it occupies in the house. Does a Bedroom Need a Window for Appraisals?
To read more, click here
My comment: Written for agents, but very good analysis of relevant market factors plus what building codes say (International Residential Code – IRC). I have an excellent article on bedrooms on the paid subscriber page, with lots of details on different standards, such as FHA. I get questions about what is a bedroom regularly from real estate agents.
To read about lots more appraisal topics, continue reading below!
NOTE: Please scroll down to read the other sections of this long blog post on Corelogic, refi mania, strange buildings, mortgage origination stats, Covid tips for appraisers, etc.
Subscribe to this blog (upper right of this page) and get all the posts emailed when they are posted!!
=====================================
CoreLogic attributes its 4Q growth from shift to an AMC
Excerpt: Organic growth trends accelerated during the quarter boosted by market share and pricing gains. One example of accelerated momentum on the organic growth front relates to our new collateral valuation services model.
As you know, we successfully completed our AMC transformation last December. Our new service model has attracted significant market interest and we’ve recently secured major new contracts with two of the top 10 US mortgage originators. These wins together with a host of other new contracts for our reimagined service model are expected to generate strong double-digit underlying AMC revenue growth with higher margins in 2020.
To read more, click here
NOTE: Long article. Search for amc (21 references)
My comment: More staff appraisers? google corelogic AMC for more info.
======================================
Giant Roadside Curiosities
Just For Fun and Escape!!
Excerpts: American highways have something for everyone. Lots of litter. License plates galore. And, if you take the right route, a dinosaur car wash, or a supper club in the biggest fish you’ve ever seen.
To read more, click here
======================================
Borrowers rush to refinance as mortgage rates fall to near-record lows
Refinance activity spikes 224% from last year
Excerpt: “The 30-year fixed-rate mortgage dropped to its lowest level in more than seven years last week, amidst increasing concerns regarding the economic impact from the spread of the coronavirus, as well as the tremendous financial market volatility,” Fratantoni said. “Refinance demand jumped as a result, with conventional refinance applications increasing more than 30%.”
Given the recent drop in Treasury rates, Fratantoni said the MBA now expects refinance activity to increase until fears subside, and rates stabilize.
My comment: More appraisals needed!!! Maybe AMC fees will go up!! See the MBA stats at the end of this newsletter. I have been including them every week since soon after it started in 1990!
To read more, click here
======================================
Joe Biden wants tougher standards for real-estate appraisers to help black and Latinx homeowners.
Excerpt: Former Vice President Joe Biden will work to create national standards for home appraisals if elected, as part of an effort to weed out racial discrimination in the real-estate industry…
Biden’s campaign said he would “establish a national standard for housing appraisals” to ensure that appraisers are adequately trained, understand the neighborhoods in which they work and “do not hold implicit biases” that influence their work.
To read more, click here
My comments: Appraisers are All Powerful. We Control the Real Estate Market!! (and are good targets). On June 20, 2019, I watched the Housing, Community Development and Insurance subcommittee hearing hearing entitled “What’s Your Home Worth? A Review of the Appraisal Industry”. I was shocked that the chair took over the hearing and said appraisers discriminated (houses owned by blacks and whites had different values). i wrote about it in this newsletter. The recording is not available, but the recent book ” Dispatches from the Cosmic Cobra Breeding Farm” has a very good (and somewhat humorous) section about the hearing, including David Bunton’s testimony.
———————————————-
Appraisal Institute Opposes Biden’s Call for More Appraisal Standards
Excerpt: “To be quite frank, the assertion that appraisers would systematically undervalue or overvalue real estate due to these factors is absurd and shows a profound misunderstanding of the real estate valuation profession. Appraisers have nothing to gain by such behavior, and in doing so we would lose the hard-fought public trust we have achieved over many, many years.”
The letter concluded: “Since national appraisal standards and ethics requirements already are in place, and since those requirements are enforced as law, there is no need for additional standards. We urge you to reconsider your position, and we look forward to working with you to tackle community and economic development challenges facing this country.”
To read more, click here
My comment: Better late than never.
——————————————————
NAA sends letter
Excerpt: Additionally, the Appraisal Independence provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, have already made the practice of financial institutions putting “pressure on appraisers to their benefit” illegal as a matter of federal law. Creating a new national standard for appraisals or appraisers
will do nothing to further combat “lender pressure” which is nearly non-existent since the implementation of Dodd-Frank.
To read click here
======================================
Getting too many ad-only emails?
4 ways to get only the FREE email newsletters
and NOT the ad-only emails
Click here for the list of 4 ways plus information on why I tak ads, etc.
======================================
How much money did you make per hour on your appraisals, after expenses, in 2019?
March is a very good time to analyze your 2019 income and expenses as you have to do them for your taxes. You can also see how they compare with your 2018 income and expenses.
We are paid for our opinions. We collect and analyze data and make
decisions on value. Why not apply the same skills to analyzing your appraisal business? Net income per appraisal for appraisers working for AMCs and lenders has declined.
Many appraisers say they could make more working as a Walmart greeter. But, is this true for your business?
Finding out how much money you are making after expenses is the first critical step in the success of your business.
===============================================
To read the full article, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.
If this article helped you calculate how much profit you are making, it is worth the subscription price!!
Cancel at any time for any reason!!!
$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
To purchase the paid Appraisal Today newsletter go to
www.appraisaltoday.com/products or call 800-839-0227. What’s the difference between the Appraisal Today free weekly email newsletters in this blog and the paid monthly newsletter?
Click here for more info!If you are a paid subscriber and did not get the March 2020 issue, emailed Monday, February 2, 2020 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.
======================================
Coronavirus & the housing market
By Ryan Lundquist
Excerpt: 1) Uncertainty: Markets don’t tend to like uncertainty. It’s been true in the stock market over the past week and it’s true in real estate also.
2) Severity matters: If this virus doesn’t spread much there might not be much effect on the housing market. But if it begins to spread in mass it’s easy to imagine sellers postponing listing their homes and buyers choosing to sit on the sidelines. Ultimately as we consider the immediate future there’s a huge difference between having a handful of coronavirus cases versus a devastating outbreak like the movie Contagion (probably not a helpful film to watch right now). Keep in mind if we’re dealing with something that ends up being very temporary it’s not likely to have a lasting effect.
For more info, click here
My comment: Written by an appraiser. Netflix’s Pandemic series (2020) is excellent and eerily similar to today. Sort of a docudrama, combining today and re-enactments of past pandemics and what could happen now. Much scarier that the movies. Contagion (2011) is very good, available for $3.99 on amazon prime.
FYI, it is flu season. I very seldom shake hands because of the high risk. I fist bump or wave my hand instead. Last year I shook hands with a woman before playing pickleball. There was no time to wash my hands. I was sick for 3 weeks, the longest time for many years. I now carry a hand santizer in my pocket. Be Careful Out There!!
——————————————————————————————–
Coronavirus Epidemic: Cause for Concern in Real Estate?
Excerpt: “There are many potential scenarios,” says Dan Forsman, president and CEO of Berkshire Hathaway HomeServices Georgia Properties. “Right now, we see fear and panic impacting the stock market. Our 24-hour, always-on news is fueling it with sensationalized stories. This is likely to start impacting real estate sales as we move toward the spring market. Understanding and communicating the real facts will be critically important in the short term. We and other real estate businesses must have a plan to react to the different scenarios that may come our way and help our associates take advantage of the opportunities.”
For more info, click here
My comment: covers real estate sales, stock market, property management, etc. Worth reading.
===================================
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 7AM to noon, Pacific time.
Mortgage applications increased 15.1 percent from one week earlier,
WASHINGTON, D.C. (March 4, 2020) – Mortgage applications increased 15.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 28, 2020. The results for the week ending February 21, 2020, included an adjustment for the Presidents’ Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 15.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 29 percent compared with the previous week. The Refinance Index increased 26 percent from the previous week and was 224 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index increased 11 percent compared with the previous week and was 10 percent higher than the same week one year ago.
“The 30-year fixed rate mortgage dropped to its lowest level in more than seven years last week, amidst increasing concerns regarding the economic impact from the spread of the coronavirus, as well as the tremendous financial market volatility. Refinance demand jumped as a result, with conventional refinance applications increasing more than 30 percent,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Given the further drop in Treasury rates this week, we expect refinance activity will increase even more until fears subside and rates stabilize.”
Added Fratantoni, “We are now at the start of the spring homebuying season. While purchase applications were down a bit for the week, they are still up about 10 percent from a year ago. The next few weeks are key in whether these low mortgage rates bring in more buyers, or if economic uncertainty causes some home shoppers to temporarily delay their search.”
The refinance share of mortgage activity increased to 66.2 percent of total applications from 60.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.4 percent of total applications.
The FHA share of total applications decreased to 9.3 percent from 10.5 percent the week prior. The VA share of total applications decreased to 10.5 percent from 11.8 percent the week prior. The USDA share of total applications decreased to 0.4 percent from 0.5 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to 3.57 percent from 3.73 percent, with points decreasing to 0.26 from 0.27 (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 $510,400) remained unchanged at 3.72 percent, with points decreasing to 0.20 from 0.23 (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 3.74 percent from 3.84 percent, with points decreasing to 0.25 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 15-year fixed-rate mortgages decreased to 3.03 percent from 3.18 percent, with points increasing to 0.24 from 0.23 (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 3.12 percent from 3.21 percent, with points decreasing to 0.14 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
======================================
Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave., Suite 203, Alameda, CA 94501
Phone 510-865-8041
Email ann@appraisaltoday.com
We want to know what you think!! Please leave a comment.