Newz: Appraisal Cartoon, Manufactured Homes,
Homes Lacking Insurance
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April 11, 2025
What’s in This Newsletter (In Order, Scroll Down)
- LIA ad Protecting My Appraisal Report
- Appraising Manufactured Homes – What Fannie Says, Demographics
- The Vermont Earth Home, the Dome Home, the Vermont Mud Hut…
- Very funny appraisal cartoon – Magician Explains Time Adjustments!
- How Many U.S. Homes Lack Insurance?
- What Are the Appraiser Independence Requirements?
- Mortgage applications increased 20.0 percent from one week earlier
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Appraising Manufactured Homes – What Fannie Says, Demographics
Excerpts: MH Advantage is an innovative homeownership option that pairs affordable financing with specially designated manufactured housing features typical of site-built homes.
Completing an MH Advantage appraisal requires the knowledge and experience to fully understand the unique construction process of this type of manufactured home. Appraisers must know the manufacturers’ and federal, state, and local requirements for both construction and installation.
The requirements for an MH Advantage appraisal are similar to the requirements for a standard manufactured home. Featured differences include:
Appraisers must include photos of the HUD Data Plate, HUD Certification Labels, and MH Advantage Sticker as well as the driveways, sidewalks, and detached structures located on the site.
To read more, Click Here
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Manufactured Homes: An Alternative Means of Housing Supply – Demographics
Excerpts: Manufactured homes play a measurable role in the U.S. housing market by providing an affordable supply option for millions of households. According to the American Housing Survey (AHS), there are 7.2 million occupied manufactured homes in the U.S., representing 5.4% of total occupied housing and a source of affordable housing, in particular, for rural and lower income households.
Given that most manufactured homes were produced in the 1990s, a significant portion of the existing manufactured home stock — approximately 72.2% — was built before 2000. Consequently, 7.7% of these homes are classified as inadequate compared to 5% of all homes nationwide. About 2% are considered severely inadequate and exhibit “major deficiencies, such as exposed wiring, lack of electricity, missing hot or cold running water, or the absence of heating or cooling systems”. However, with proper maintenance, manufactured homes can be as durable as site-built homes.
The East South Central division (Alabama, Kentucky, Mississippi and Tennessee) have the highest concentration of manufactured homes, representing 9.3% of total occupied housing. The Mountain region follows with 8.5%, while the South Atlantic region holds 7.7%.
To read more and see excellent illustrations, Click Here
My comments: If you live in an area with manufactured homes, these two articles can help.
In my urban area I have appraised a few homes built in cities where there were very few manufactured homes. In some areas there are many more. My brother lived in a semi-rural area, north of San Francisco. A while ago there was a major fire destroying many homes. Owners who wanted a quick rebuild, chose manufactured homes. They were allowed on many of the parcels for many years.
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It has been referred to as the Vermont Earth Home, the Dome Home, the Vermont Mud Hut…
Excerpts: 1 bedroom, 1 bath, 1,499 sq.ft. 47 acre lot
A dwelling — No, a piece of art unlike any other in the world.
It has been photographed and written about in publications around the globe.
Award-winning architect, Bob Chappelle designed and hand-built the one-of-a-kind Vermont Earth Home from polystyrene, coated with mud and cement. The oval windows looking out into the wooded surroundings are designed to require no frames and are built directly into the walls.
The Earth Home needs restoring. The dwelling has water and electricity and a source of heat but some cracks in the roof coating allow water to seep through in some areas. The roof requires some patching. Leading Vermont preservationists believe the structure is worth preserving. Never again will there be a place such as this.
To read more, Click Here
To see the old listing with 40 photos, Click Here
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Very funny appraisal cartoon – Marvin the Majestic Magician Explains Market Conditions Requirements
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New URAR What It Means for Appraisers, Part 1
In the April 2025 issue of Appraisal Today
This is the first article in this series on the new URAR. Next month’s issue will have my review of Fannie’s new URAR class. I took it yesterday (April 10).
What skills you need to have before use of the new software is mandated by lenders
Learning to use mobile appraisal software on a tablet is strongly
recommended as the number of fields will be much greater for the new URAR. A tablet is recommended because of the large number of fields.
The new URAR reporting process using UAD 3.6 involves so many
additional data points that an appraiser inspecting without a tablet likely will
overlook necessary items while in the field, and may have to make one or more additional trips out to collect the required data. This will be especially problematic for the comparables if MLS data is minimal or lacking.
Who is affected by the new data requirements and appraisal report software
(stakeholders)
• Appraisers – must learn how to use New URAR for lender appraisals. For
non-lender appraisals you may be able to use the old forms from your software vendor. Check with your software vendor.(not confirmed yet except with Bradford Clickforms software).
• GSEs – Set up their data to conform to MISMO standards for appraisals. GSEs developed a 7 hour class for appraisers plus provided detailed documents, and more.
• Lenders – Set up the new URAR standards in their internal software. For
example reviewing appraisal reports.
• Appraisal Software vendors – design the new URAR format, teach their
customers how to use it and offer educational information.
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How Many U.S. Homes Lack Insurance?
Excerpts: “Markets with high insurance premiums, such as Florida, could see buyer demand dwindle as buyers and homeowners look elsewhere rather than take on either the expense of home insurance or the risk of being uninsured,” said Senior Economic Research Analyst Hannah Jones.
A new study from LendingTree reveals that 13.6% of U.S. homes—roughly 11.3 million—are uninsured, leaving millions of homeowners financially vulnerable in the event of a disaster. The analysis, based on U.S. Census Bureau data, highlights the growing affordability crisis as home insurance premiums continue to surge. Between 2020 and 2023, home insurance costs jumped 33%, averaging $2,530 annually, forcing many homeowners to weigh the financial risk of going without coverage.
Certain states and metro areas have particularly high uninsured rates. New Mexico has the highest share of uninsured homes at 23.3%, followed by West Virginia and Mississippi. In major cities, McAllen, Texas tops the list with 43.3% of homes uninsured, followed by El Paso, Texas (23%) and Miami, Florida (21%)—despite Miami’s high hurricane risk.
Even in some of the most disaster-prone areas, many homeowners remain uninsured. In Florida, 18% of homes lack coverage, with Miami-Dade County (23.5%), Broward County (22.7%), and Lee County (17.9%) ranking among the worst. Florida is already one of the most expensive states for home insurance, and one in five homeowners there pays at least $4,000 per year—the highest share in the country.
To read more, Click Here
My comments: Worth reading with good graphics. I am sure values are affected sometimes. What is a home or condo worth with no insurance available? Or, it is very expensive as compared with comparable homes.
It’s not only homes in wildfire or hurricane areas. I have a friend who lives in a small home in San Francisco who is unable to get insurance. He does not have a mortgage. Another friend, in an established low risk area, had her insurance not renewed. She finally found insurance at a much higher price. Neither friend knew why.
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What Are the Appraiser Independence Requirements?
Excerpts: The Appraiser Independence Requirements (AIR) were adopted by Fannie Mae and Freddie Mac following complaints that Optigo lenders and/or brokers exerted influence over appraisers to meet value expectations prior to engagement.
Appraiser Independence Requirements (AIR) uphold the objectivity and impartiality of appraisers by preventing coercion, undue influence, and conflicts of interest, thereby safeguarding mortgage investors, lenders, and the housing market.
Essentially, claims were made that appraisers were being persuaded in their valuations.
The purpose of AIR is to maintain independence and objectivity, reduce impartiality, mitigate evaluation risk, and establish explicit guidelines in the Fannie Mae and Freddie Mac Multifamily Seller/Servicer Guide.
The 2008 financial crisis played a pivotal role in shaping regulations in lending, where some of the biggest lessons came from the subprime mortgage debacle. Regulations prior to 2008 lacked basic consumer protections.
These flaws in the appraisal process, among other things, ultimately led to the Dodd-Frank Wall Street Reform and Consumer Protection Act, which included enhanced appraiser independence provisions.
My comments: Good discussion, and reminder, of the factors.
After years of appraiser complaining about fraud, regulations were enacted starting in 2008. Mortgage broker requests for preliminary values went away
The minus for appraisers is the takeover of managing appraisals by AMCs. Of course, the most significant changes were from FIRREA, enacted on August 9, 1989, in response to the savings and loan crisis of the 1980s, when appraisers were licensed. Appraisers got the Appraisal Foundation, Appraisal Subcommittee, state regulators, USPAP and all its changes, etc. I really miss the old days, pre-licensing!
To read more, Click Here
—————————————————————————————-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 increased 20.0 percent from one week earlier
WASHINGTON, D.C. (April 9, 2025) — Mortgage applications increased 20.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 4, 2025.
The Market Composite Index, a measure of mortgage loan application volume, increased 20.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 20 percent compared with the previous week. The Refinance Index increased 35 percent from the previous week and was 93 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 9 percent from one week earlier. The unadjusted Purchase Index increased 10 percent compared with the previous week and was 24 percent higher than the same week one year ago.
“Mortgage applications increased by 20 percent to its highest level since September 2024, driven by purchase and refinance applications picking up in a volatile week where economic uncertainty caused rates to drop across the board. The 30-year fixed mortgage rate was 6.61 percent, the lowest rate since October 2024,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Both homebuyers and refinance borrowers were quick to take advantage of this dip in rates, driving the purchase index 24 percent higher than a year ago to the strongest pace since January 2024. Refinance applications rose by 35 percent to the highest level in six months, as borrowers with larger loan sizes tend to be more sensitive to rate changes. The average refinance loan size jumped to its second highest in the survey at $399,600.”
The refinance share of mortgage activity increased to 43.6 percent of total applications from 38.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.6 percent of total applications.
The FHA share of total applications increased to 16.3 percent from 15.8 percent the week prior. The VA share of total applications increased to 15.7 percent from 14.4 percent the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.61 percent from 6.70 percent, with points increasing to 0.63 from 0.62 (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 $806,500) decreased to 6.65 percent from 6.76 percent, with points decreasing to 0.42 from 0.49 (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 6.33 percent from 6.37 percent, with points decreasing to 0.75 from 0.81 (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 5.93 percent from 6.04 percent, with points increasing to 0.64 from 0.61 (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 5.93 percent from 6.04 percent, with points decreasing to 0.29 from 0.57 (including the origination fee) for 80 percent LTV loans. The effective rate decreased 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
Online: www.appraisaltoday.com
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