Top 10 Tips for Working with AMCs
Excerpt: 6. Make appointments quickly
Schedule appraisal assignments as you receive them, within 24–48 hours. Many AMCs will score you on this task. If you’re working in a small area, and you get two assignments in one day that are close together, make the appointments. Get them on the books and schedule them as quickly as possible.
7. Update the AMC with any delays
Be sure to update the client if any delays or problems come up during the appraisal process. See item #2 above: Update your order statuses. This will preserve your SLAs with AMCs.
To read all the tips, click here
My comment: Nothing new, but some good reminders. Of course, you may not agree…
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To read more of this long blog post with many topics, click Read More Below!!
NOTE: Please scroll down to read the other topics in this long blog post on hybrid appraisals, waivers, unusual homes, mortgage origination stats, etc.
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FREE 2 hour Time Adjustments Webinar
George Dell, SRA, MAI, ASA, CRE
Excerpt: Join us on May 26th at 12 Noon (Pacific Time) for a free 2-hour webinar on Time Adjustments.
Learn how to calculate time adjustments using open-source spreadsheet and analytics software.
To read more, click here
My comment: Fill out form and click Register for Webinar. May take a few minutes for email confirmation. Don’t wait. Over 250 signups as of yesterday at 1pm!
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Evaluating Data Reliability in Hybrid Appraisal Assignments
Excerpts: Determining data reliability
In order to reasonably believe that a source is reliable, it is recommended that you assess the dependability of a data source based on the following three characteristics, at a minimum: accuracy, trustworthiness, and timeliness.
Accuracy
Is the data source known to be typically correct, factual, consistent, and precise? Is the data required to be entered in a uniform format? In other words, a data source such as the MLS may require certain data points such as site size to be entered in a consistent and specific data format.
To read more, click here
My comment: Very comprehensive. Worth reading.
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Appraisal Waivers: The Future is Here
by Isaac Peck
Excerpt: Back in 2017, when Working RE interviewed Zachary Dawson, then Director of Collateral Policy & Strategy at Fannie Mae, Dawson reported that Fannie Mae’s use of appraisal waivers was only a few percent of the agency’s total loan production, and that it might increase to 10 percent. “Our enhanced PIW program started December 10, 2016, so delivery volume is still ramping up at this time. We are seeing it used at rates of around 20 percent on limited cashout refinances thus far,” Dawson said at the time.
Four years later, the expansion of Fannie Mae and Freddie Mac’s (the GSEs) appraisal waiver programs has been anything but modest.
For lots of Graphs, details and analysis, click here
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What’s Your View? Rainbows, Sellers, buyers, agents, appraisers differ
Excerpts: Did you know that no two people see the same rainbow? You might be standing right next to someone, looking at what seems to be the same rainbow. However, what we are seeing is technically different.
In a real estate transaction, everyone has a different view. There is the owner of the home, who has a view of what they feel their home is worth. Buyers have their view of how much they are willing to pay for a home. Real estate agents have a view of what the home should be listed for, based upon their research and experience. And, of course, we appraisers have our views of what a home is worth.
In the current market, those views may be light-years apart. Let’s talk about some possible reasons why.
To watch the fun rainbow video and animated gifs plus read more, click here
My comment: Very good analysis plus some appraiser stories. Another very creative blog post by Jamie Owen!!
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Minesweeper: Boat Transformed Into Waterfront Home in New Jersey
Excerpts: The moored minesweeper on a prime waterfront lot on Cape May Harbor in Cape May, NJ, is available for $695,000.
“It’s a very large lot and has a dock,” the agent adds. “There’s a lot of people looking at this property right now, hopefully to make it a really cool Airbnb. But I’m not really sure what will happen after it sells.”
“After it was taken out of service in the 1950s, it was placed on this lot and turned into a house.
To read more and see lots of photos, click here
My comment: I have never seen a WWII minesweeper taken out of the water and put on shore. Something new every day ;> Personal property or real estate?
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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 7AM to noon, Pacific time.
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Mortgage applications increased 2.1 percent from one week earlier
WASHINGTON, D.C. (May 12, 2021) – Mortgage applications increased 2.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 7, 2021.
The Market Composite Index, a measure of mortgage loan application volume, increased 2.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2 percent compared with the previous week. The Refinance Index increased 3 percent from the previous week and was 12 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 13 percent higher than the same week one year ago.
“Mortgage rates fell last week to the lowest levels since February, tracking the dip in Treasury yields. The decline in rates helped the refinance index reach its highest level in eight weeks, driven by a 4 percent increase in conventional refinances. Additionally, refinance loan balances increased for the fourth straight week, an indication that higher-balance borrowers acted to take quick advantage of lower rates,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The first week of May was also strong for the purchase market. Applications were up 13 percent from a year ago, which was around the time the housing market awakened from the pandemic-induced stall in activity. Most markets this spring continue to see robust demand, but activity continues to be constrained by insufficient inventory levels, as well as homebuilder challenges related to the ongoing shortages and price increases for building materials.”
The refinance share of mortgage activity increased to 61.3 percent of total applications from 61.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 3.8 percent of total applications.
The FHA share of total applications decreased to 9.9 percent from 10.1 percent the week prior. The VA share of total applications decreased to 11.7 percent from 11.9 percent the week prior. The USDA share of total applications increased to 0.5 percent from 0.4 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.11 percent from 3.18 percent, with points decreasing to 0.32 from 0.34 (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 $548,250) decreased to 3.27 percent from 3.31 percent, with points increasing to 0.34 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 30-year fixed-rate mortgages backed by the FHA decreased to 3.07 percent from 3.13 percent, with points increasing to 0.34 from 0.22 (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 2.49 percent from 2.54 percent, with points decreasing to 0.29 from 0.31 (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 2.57 percent from 2.76 percent, with points decreasing to 0.22 from 0.23 (including the origination fee) for 80 percent LTV loans. The effective rate decreased 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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Ann O’Rourke, MAI, SRA, MBA
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