Appraiser Recovers From COVID-19

Appraiser/Educator Bryan Reynolds is recovering from COVID-19

The Appraisal Update – Episode 40 | Bryan Reynolds and COVID19

Appraisal Humor

Appraisal business tips

A very, very funny appraiser video!

For lots more appraisal topics, Click  Read More below!

Fannie Mae COVID-19 Frequently Asked Questions – Selling Updated: Apr. 08, 2020

Most appraisers, and others, have been assuming we are essential because “financial services” and some “real estate services” are exempt.

The only way to definitely know is if your state, county or city specifically lists appraisers in their Orders.

Only one state, Vermont, says appraisers are not essential businesses. Very recently, Pennsylvania made some changes, but it is not clear what they mean. Have to work from home? Desktops only? Can’t find a link to the info. Only getting excerpts by email.

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The Appraisal Institute on March 31 posted on its coronavirus page a document listing statewide stay-at-home, shelter-in-place and non-essential business closure orders. Appraisers are advised to consult local governments to determine what restrictions may be in place for their area. AI updates the document as new information becomes available.

To download, click here

My comment: Very interesting. About 23 states include the words “appraiser” or “appraisal” as essential businesses. Maybe my state, California, will do something. Not very likely though with too many other businesses, such as construction companies, are trying to get exempted.

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A possible scenario: Appraiser asks homeowner not to be there when doing inspection. Starts the inspection. Located in a strict shelter-in-place area and/or a paranoid neighbor who calls the police. Of course, it depends on how aggressive your police at investigating and has fines people who are required to be at home.

You could have:

– Copy of appraisal license

– Appraisal order from client

– The Order that applies to where you are doing the appraisal, highlighting the relevant section that relates to appraiser.

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Appraisal Institute and four Valuation organizations ask FHFA to Rethink Non-GSE Appraisal Requirements

By Isaac Peck

Excerpts: With such broad guidelines that allow for alternatives to interior inspections, appraisers across the country are asking: Why are lenders still demanding interior inspections on the majority of appraisal assignments despite the risk involved to appraisers, their families and the occupants?

The answer is cash-out refinances.

Tapping Home Equity

While cash-out refinances represented just a small fraction of the mortgage market as recently as a few years ago, Freddie Mac’s Quarterly Refinance Report (March 13, 2020), indicates that “cash-out” borrowers- those who increase their loan balance by at least five percent, represented 83 percent of all conventional refinance loans. Freddie writes that this is the “the highest share since the third quarter of 2007.”

In other words in the current climate, cash-out refinances are booming. And despite broad flexibilities for purchases and no-cash-out refinances, both Fannie Mae and Freddie Mac require a traditional interior-inspection appraisal for cash-out refinances…

Lenders and AMCs are echoing appraiser concerns, according to Smith, and clamoring for relief on interior inspections for cash-out refis. “One way to mitigate the GSEs concerns would be to cap the LTV on cash-out refis; up to that cap, they could allow full appraisal flexibilities,” says Smith.

However, Freddie Mac’s latest guidelines indicate that an automated collateral evaluation (ACE) appraisal waiver can be offered on cash-out refinances of primary residences where the LTV is 70 percent or less, but that LTV amount clearly isn’t satisfying many borrowers.

To read more click here

To take the Workingre Survey https://www.surveymonkey.com/r/GPFCLKQ

To see lots of appraiser comments click here

My comments: Many thanks to Workingre for figuring it out. I had all the data but did not make the connection! I hope Fannie and Freddie can reduce the inspection requirement and help appraisers be safe.

VERY FUNNY VIDEO

The Family Lock Down Boogie

TAKE A SHORT ESCAPE FROM DOING YOUR APPRAISALS

YOU WILL SMILE! I DID… A LOT!!!

VERY CREATIVE!!

• You really gotta appreciate the dad going along with this, as he is clearly contemplating his life decisions that led to this.
• This is best tribute to Corona that I’ve seen! You sure brightened a lot of people’s days!
• Whenever the news gets to be too much now, I watch this, get up, dance along, and laugh and laugh. It’s just great. Thanks!
• My absolute favorite! I’ve watched a ton of Covid music videos but this is a standout! Great groove and choreography, makeup and wardrobe too. Great pet cameo across the bed! Well done!

Analysis of appraiser surveys in Wednesday’s free email newsletter.

WASHINGTON, D.C. (April 8, 2020) – Mortgage applications decreased 17.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 3, 2020.

The Market Composite Index, a measure of mortgage loan application volume, decreased 17.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 18 percent compared with the previous week. The Refinance Index decreased 19 percent from the previous week and was 144 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 12 percent from one week earlier. The unadjusted Purchase Index decreased 12 percent compared with the previous week and was 33 percent lower than the same week one year ago.

“Mortgage applications fell last week, as economic weakness and the surge in unemployment continues to weigh heavily on the housing market. Purchase activity declined again, with the index dropping to its lowest level since 2015 and now down 33 percent compared to a year ago,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “With much less liquidity and tighter credit in the jumbo market, average loan sizes declined, and mortgage rates for jumbo loans increased to a high last seen in January.”

Added Kan, “Refinance applications dropped 19 percent, reversing a 25 percent increase the week before. Given the ongoing rate volatility, along with the persistent lack of liquidity in certain sectors of the MBS market, we expect to see continued weekly swings in refinance activity.”

The refinance share of mortgage activity decreased to 74.2 percent of total applications from 75.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 3.3 percent of total applications. Looking at the impact at the state level, here are results showing the non-seasonally adjusted, week-over-week percent change in the number of purchase applications from Washington, California and New York:

The FHA share of total applications increased to 10.6 percent from 9.1 percent the week prior. The VA share of total applications increased to 14.3 percent from 12.5 percent the week prior. The USDA share of total applications remained unchanged from 0.4 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) increased to 3.49 percent from 3.47 percent, with points decreasing to 0.28 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400) increased to 3.87 percent from 3.84 percent, with points decreasing to 0.26 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 30-year fixed-rate mortgages backed by the FHA decreased to 3.54 percent from 3.57 percent, with points decreasing to 0.19 from 0.28 (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 3.04 percent from 3.05 percent, with points decreasing to 0.25 from 0.27 (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 increased to 3.39 percent from 3.35 percent, with points increasing to -0.02 from -0.03 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact mbaresearch@mba.org or click here.

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.