Newz: Appraisers and Firearms,Future of Home Finance and GSEs, Q1 2025 Fannie Mae Appraiser Update – New URAR
April 4, 2025
What’s in This Newsletter (In Order, Scroll Down)
- LIA ad: A Family Feud and Intended Use
- Experiences with Firearms as an Appraiser: When Tenants Behave Unexpectedly in “Their Area”
- Billionaire Opendoor Founder’s Three-Winged ‘Propeller Home’ Hits the Market for $40 Million
- Appraisal Institute Scandal – Widespread Fraud Uncovered
- Housing Market Shows Early Signs of Spring By Kevin Hecht, SRA
- Reshaping Home Finance: The Future of Fannie Mae, Freddie Mac, and U.S. Mortgage Policy By Rob Chrisman
- Originator jobs; Stated income loans; DOGE shifts its attention; Fannie lawsuit; clear path for rates By Rob Chrisman
- Q1 2025 Fannie Mae Appraiser Update! – New UAD Sample Reports and Ratings, Time Adjustments
- Mortgage applications decreased 1.6 percent from one week earlier
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Experiences with Firearms as an Appraiser: When Tenants Behave Unexpectedly in “Their Area”
Excerpts: Appraisers often find themselves in a wide variety of settings and situations. I mean, we are entering people’s homes, somewhere that most people see as their comfort zones and a place they are not open to having a stranger poke around in. We as professionals understand this and usually try to make it as quick and painless as possible. There are those moments where it turns into a “memorable experience” and homeowners or tenants feel like they must make it known we are not welcome.
I personally am batting .1000 this year on multi-family properties, where tenants have felt it was necessary for me to get the message, by brandishing a firearm. I will share the following two situations, how I personally managed it, explain why I do not personally carry a concealed firearm, and ask you readers to tell me if this is common or for similar memorable experiences.
For more information and to read the appraiser comments, Click Here
My comments: My first appraisal-related job was with the Monterey (California) County Assessor’s office. It was transitioning to computerized valuation. I was a temporary “appraiser assistant” hired to go to properties to see if the county appraisal records needed updating.
In those days (mid-1970s), properties were reappraised regularly to increase the assessments and property taxes were increased.
I knocked on the door and was met with a man carrying a shotgun. He said: Go away assessor! I don’t remember the city, but it was not in a rural area. I left and told my supervisor to find someone else to do the inspection.
I have never owned a firearm and would never carry one. No one I knew owned a firearm except for my husband, who had firearm training when he was teaching horticulture at a state prison. I would not allow a firearm in our house but still keep a baseball bat by my front door “just in case”.
But, recreational firing at a target was on my “bucket list”. An appraiser friend took me to a local firing range. I tried handguns, rifles and shotguns. Some worked like machine guns with many bullets fired at one time. I really liked it the best. Next time I go to Las Vegas I will try out real machine guns. Trying to hit a target did not appeal to me. Ya never know until you try!
Of course, I have had many encounters with dogs. One was when I was appraising the house of an appraiser I knew. I was met with small dogs biting my ankles. When the owner put the dogs away I continued with the appraisal. Another time, in a rural area, 3 large Dobermans broke down the door of a mobile home and ran toward me. I managed to get in my car. I told the lender to get another appraiser.
When markets crashed I did a lot of foreclosure appraisals. I made a lot of noise opening the door and loudly saying I was an appraiser for the lender and needed to come inside. I never had a problem. But some appraisers requested that a police officer accompany them when the home looked “sketchy” to them from the outside.
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Billionaire Opendoor Founder’s Three-Winged ‘Propeller Home’ Hits the Market for $40 Million
Excerpts: 9 bedrooms, 15 full baths, 18,850 sq.ft., 1.555 Acre lotReal estate mogul Eric Wu, who founded Opendoor in 2014, bought the stunning Bel-Air property for $32.25 million in April 2022, according to property records.
The home, which features three wings that spread out in a propeller shape and offer 360-degree views of the surrounding area, was designed by renowned architect Zoltan Pali, who completed the dwelling in 2017.
Outside, there is a tilted infinity pool and multiple decks—while the glass-walled living spaces enable guests to take full advantage of the views whether they are inside or out.The home’s main level has a 1,000-bottle wine cellar, sophisticated dining area, and home theater in addition to the large living area.
To read more, Click Here
To read the listing, with 31 photos, Click Here
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Appraisal Institute Scandal – Widespread Fraud Uncovered
by AppraisersBlogs April 1, 2025
Excerpts: The Appraisal Institute is embroiled in yet another scandal, and this time it involves widespread fraud and cover-ups at the highest levels of the organization. Alissa Akins, a former director at AI, blew the whistle on a long-running scheme where the nonprofit knowingly misreported test scores to state regulators, potentially allowing unqualified appraisers to get licensed. When Akins tried to sound the alarm and fix the problems, she was met with a “don’t ask, don’t tell” attitude from leadership and ultimately got fired in retaliation.
But let’s be real, the Appraisal Institute has been a dumpster fire for years now. Forcing out reformist CEO Cindy Chance, running massive budget deficits, and now this testing scandal – it’s clear AI is more concerned with protecting its own interests than actually serving appraisers or the public. And you can bet the Appraisal Foundation, which sets the very standards AI is accused of violating, is in on it too. The whole continuing education and testing racket has always felt like a money-grabbing sham, and now we have proof.The full complaint is included in the blog post.
To read more, plus over 55 appraiser comments, Click Here
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EXCLUSIVE: Lawsuit Alleges Appraisal Institute Has Given States Fraudulent Test Results For Years
Source: BizNow
March 29, 2025
Another article was published in BizNow. To read it you have to set up a free account to view. I read it. Worth reading for more details.
Excerpts: “Plaintiff was terminated from her job for reporting and refusing to participate in an ongoing fraud being committed by her employer,” Akins’ attorneys wrote in the suit, filed in Chicago civil court Friday. “The fraud was occurring against both individual consumers and multiple state regulatory authorities, including the Illinois Department of Financial and Professional Regulation.”
In states with a lower score threshold, the trade group reported some students had failed when they had actually passed. In states with a higher threshold, state agencies were told that some students passed that should have failed.
The Appraisal Institute didn’t respond to a request for comment Saturday.
The suit says that Akins uncovered the issue in September 2024 and then realized the system had been in place and producing fraudulent test results since at least 2020. Executives at AI allegedly were aware of the misreporting, and when Akins flagged it, she was told the situation was a “don’t ask, don’t tell type of policy,” according to the suit.“
I would characterize their failure to fix the many problems my client found as laziness,” Jordan Matyas, an attorney at 1818 Legal representing Akins, said in an interview with Bisnow Saturday. “I don’t believe the intent was to deceive the state. It was that they did not want to put in the time and effort to fix the problems.
”After executives allegedly refused to address the issues, which impacted tests administered by the Appraisal Institute as well as third-party contractor Pearson, Akins asked that her signature be removed from course completion certificates.
The suit says that on Oct. 30, the day after her protest, Akins received a text message from John Udelhofen, AI’s interim CEO, saying he was working on an employment separation package for her.
When Akins asked if she was being fired, she was told she wasn’t, but that Appraisal Institute Vice President Craig Steinley would “make it hell for you as long as you stay.”NOTE: To read the full article you must subscribe (free)Worth reading for more information. Interviews were included in the above excerpts (in quotes).
To sign up on the website and read the article, Click Here
My comments: I have not heard of any comments from AI. I have been an AI member (AIREA and SREA in 1986) since 1986. When the AI dropped out of the Appraisal Foundation a while ago, over education disagreements, I became uncomfortable being a member. I will never give up my MAI and I have an excellent chapter, so I am not quitting. My SRA and MAI designations give me credibility when writing my newsletter. My MAI gives me access to more appraisal opportunities as many people have heard about the MAI.
A more recent issue is the firing of CEO Cindi Chance. No explanation from AI. She was definitely a “breath of fresh air”.
The April newsletter from the Appraisal Foundation, in the Partner Spotlight section, many organizations were listed including 7 organizations. One was National Association of Mortgage Brokers. AI was not listed
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New in the April 2025 issue of Appraisal Today:
- New URAR What It Means for Appraisers, Part 1
- New GSE Requirements for Market Condition Adjustments, By George Dell, MAI
- Do Appraisers Form Value Opinions or Do Appraisers Estimate Value. By Tim Andersen, MAI
New URAR –Current GSE information is confusing. This is the first article in a series on the new URAR. Stakeholders: who does what, excellent FAQs answering a lot of appraiser questions, good links for more information and more.My comments on new URAR: Many appraisers are quitting or retiring. One of the reasons is the new URAR. I forecast a decline in appraisers available. If you and want to continue to do lender appraisals are willing to change, this is an excellent opportunity!
Coming in the May issue
Review of New URAR class, set up by Fannie. I will be taking a class April 10, the first Zoom class I could find available. If another one is available in time I will take it. Who can teach the class, “teach the teacher” classes, what is covered in the class and more.
Future topics: software reviews (videos and “live” when available), how to fill out specific fields, and more.
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Housing Market Shows Early Signs of Spring
By Kevin Hecht, SRA
April 1, 2025
Excerpts: Welcome to the March 2025 edition of The Full Measure, your guide to the housing economy tailored for real estate appraisers. The housing market is showing meaningful signs of movement after months of stagnation. February’s data reveals a market beginning to stir, though still constrained by affordability challenges.
After peaking at 7.04% in January, the 30-year fixed-rate mortgage moderated to 6.65% by mid-March, according to Freddie Mac data. NAR forecasts rates will average 6.4% in 2025 and 6.1% in 2026, providing modest relief but remaining well above the ultra-low levels of 2020-2021.I expect this “higher-for-longer” rate environment to continue reshaping the market.
It will maintain the “mortgage rate lock-in effect,” sustain the shift toward affordable housing options, and potentially increase alternative financing arrangements.
Implications for Appraisers
For appraisers, the current environment demands a hyper-local approach to valuation. National and regional trends provide context, but accurate valuations require understanding specific local market dynamics.
I’ve found that maintaining detailed neighborhood-level databases has become increasingly valuable. Tracking metrics like days on market, list-to-sale price ratios, and inventory levels can reveal trends obscured in broader data.
The divergent trends between existing and new home markets require careful comparable selection. Builders’ shift toward affordability has created situations where new homes may sell for less than comparable existing properties, reversing the traditional premium.
The continued price appreciation necessitates thoughtful approaches to time adjustments, calibrated to reflect local market conditions rather than national averages.
To read more, Click Here
My comments: This is my favorite article on what is happening. It is written for appraisers, by an appraiser, who is also an economist.
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Reshaping Home Finance: The Future of Fannie Mae, Freddie Mac, and U.S. Mortgage Policy
By Rob Chrisman
March 24, 2025
Excerpts: Despite their long standing role in housing finance, Fannie Mae and Freddie Mac have remained under government conservatorship since the 2008 financial crisis, raising ongoing debates about their future structure.
As of late March 2025, however, major changes have been implemented under the leadership of newly appointed FHFA Director Bill Pulte. On March 17, Pulte took decisive action by removing 14 board members from both Fannie Mae and Freddie Mac, subsequently appointing himself as chairman of both boards. This unprecedented move consolidates his control over the GSEs and aligns with the administration’s broader objectives to reform the entities.
Beyond board restructuring, Pulte initiated a wave of personnel changes within the FHFA itself.
Over 10 percent of the agency’s staff, particularly those in non-statutory roles such as research and statistical analysis, have been dismissed. Reports suggest that more than 20 political appointees will be brought in to fill these vacancies, signaling a shift in the agency’s strategic direction. Additionally, FHFA employees have been instructed to return to in-office work settings, marking a notable change in workplace policy.
The leadership shake-up extended to Freddie Mac’s executive ranks as well. Michael T. Hutchins was appointed interim CEO following the removal of former CEO Diana Reid. Hutchins, who has served as Freddie Mac’s president since 2020, brings extensive financial sector experience, having previously held positions at UBS and Salomon Brothers. His appointment suggests a continued focus on financial markets expertise within the GSEs’ leadership.
While many in the current administration support the idea of privatization in principle, housing experts caution that any abrupt changes could push mortgage rates higher, further straining affordability for borrowers. The mortgage industry and prospective homeowners alike will be watching closely, hoping that any reforms preserve the essential role these institutions play in financing homeownership.
To read more, Click Here
My comments: I have been reading the weekly Chrisman Comments for many years. This was published March 24
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Originator jobs; Stated income loans; DOGE shifts its attention; Fannie lawsuit; clear path for rates
By Rob Chrisman
April 1(early edition), 2025 Update from March 24 issue, discussed above
My notes: Sent in an emailed newsletter. I could not find an online link. Excerpts below are from the emailed newsletter.
It was sent out on April 1. so the excerpts from the section below look like an April Fools Joke! We all need some humor ;>
Agency news’ twists and turns
All is quiet, for now, in Bill Pulte’s X account, which seems to have become the official location for his FHFA announcements. But it is rumored that he may be residing over a turf war soon.
Fanny May, founded in 1920, is suing Fannie Mae, founded in 1938, claiming that the mortgage company horned in (a legal term) on its name. The candy company has witnessed the mortgage industry brought to its knees by litigation and hundreds of high-profile lawsuits and wants no part of it.
“We’re tired of people wandering in off the street and asking about HomeReady.”What the heck is that? And why do Donald Trump and Bill Pulte allow it to exist?” asked spokesman Benjamin Brian. “Everyone is making money off this mortgage thing, and although record numbers of Americans are obese, the candy business is suffering – so why not grab a slice of mortgage money pie?
“Not to be outdone, Freddie Mac’s legal team is suing the rest of Freddie Mac, and on a contingency basis. Details had yet to be announced as of press time.
And also not to be outdone, Webster’s Dictionary is suing the entire mortgage industry, claiming that “writedown,” “casefile,” and “homeowner” are all actually two words.
“Pretty soon we’ll all be using the word “get” and ending sentences in prepositions – and then where would we be at?” asked attorney Morgan Brantner.
In a related but unrelated matter, 86-year old Maxine Waters (D – CA) has announced a plan to forgive all mortgage debt in 47 states. It was not clear, however, which 47 states are included in the plan. “This is America, and we need to show the world that borrowing money and signing legal documents carry no weight whatsoever.
And as for the three states that aren’t included… well, let them figure it out.”Soon after the release was announced Texas threatened to secede from the United States, and Melania Trump’s staff deflected rumors of her being deported.
My comments: I received this issue by email on April 1. I could not find it online, but the relevant topic is excerpted above. Send me an email and I will forward it to you.
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Q1 2025 Fannie Mae Appraiser Update! – New UAD Sample Reports and Ratings, Time Adjustments
Since the announcement that we are updating the Uniform Appraisal Dataset (UAD) to UAD 3.6, appraisers have been asking for a preview of what the new report will look like. In this edition we share how appraisers can get a first look along with some other important information about implementation of UAD 3.6.
We also provide guidance on how to determine condition, quality, location, and view ratings, as well as an overview of our new definitions of floor plan and sketch.
Another article unpacks a December update to the Fannie Mae Selling Guide regarding market change (time) adjustments.
As always, we invite you to share what’s on your mind, submit feedback, or ask questions about appraisal topics using the link at the bottom of this newsletter.
To read the update, Click Here
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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, Click Here.
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 go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.
My comments: Rates are going up and down. We are all waiting for rates to drop in 2025.
Mortgage applications decreased 1.6 percent from one week earlier
Mortgage applications decreased 1.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 28, 2025.
The Market Composite Index, a measure of mortgage loan application volume, decreased 1.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1 percent compared with the previous week. The Refinance Index decreased 6 percent from the previous week and was 57 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 2 percent compared with the previous week and was 9 percent higher than the same week one year ago.
“Treasury yields continue to be volatile as economic uncertainty dominates markets. Most mortgage rates finished last week lower, with the 30-year fixed essentially unchanged at 6.70 percent. Last week’s level of purchase applications was its highest since the end of January, driven by a 3 percent increase in conventional purchases, while government purchase applications were down 2 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook.
Refinance applications were down almost 6 percent last week and remain very sensitive to rate movements, as most borrowers have mortgages with lower rates.”
The refinance share of mortgage activity decreased to 38.6 percent of total applications from 40.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.5 percent of total applications.The FHA share of total applications decreased to 15.8 percent from 16.5 percent the week prior. The VA share of total applications decreased to 14.4 percent from 14.5 percent the week prior. The USDA share of total applications decreased to 0.5 percent from 0.6 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.70 percent from 6.71 percent, with points increasing to 0.62 from 0.60 (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 $806,500) decreased to 6.76 percent from 6.77 percent, with points decreasing to 0.49 from 0.50 (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 6.37 percent from 6.40 percent, with points increasing to 0.81 from 0.74 (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 6.04 percent from 6.08 percent, with points decreasing to 0.61 from 0.67 (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 6.04 percent from 5.89 percent, with points decreasing to 0.57 from 0.59 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions.
Base period and value for all indexes is March 16, 1990=100.
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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
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