Newz: Q2 Fannie Appraiser Update, Appraiser Wins Discrimination Lawsuit
June, 13, 2025
What’s in This Newsletter (In Order, Scroll Down)
- LIA ad: Am I Still on the ‘Do Not Use’ List?
- What’s a comparable property? Or a “comp,” as we say more informally? By Bryan Reynolds
- Rotterdam’s Yellow Cube Homes
- Q2 2025 Fannie Mae Appraiser Update – UAD 3.6
- A Back to the Future Housing Market By Ryan Lundquist
- Case Dismissed: Ohio Appraiser Wins Discrimination Lawsuit by Isaac Peck
- Mortgage applications increased 12.5 percent from one week earlier
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Real Estate Agents and Comparable Sales – Tips for Appraisers
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What’s a comparable property? Or a “comp,” as we say more informally?
By Bryan Reynolds
Excerpts: Let me give you an example of an appraisal report I saw recently, which is why I’m asking this question: There are 65 comparable properties currently offered for sale in the subject’s neighborhood, ranging from a price of $330,000 to $5,400,000. The report also states that there are 44 comparable sales in the subject’s neighborhood within the past 12 months, ranging from $152,000 to $2.2 million. That’s a big range. Are you comfortable putting that in your report?
What does the term “comparables” even mean? Let’s go to the authoritative sources. Here’s one: The Dictionary of Real Estate Appraisal, published by the Appraisal Institute. It defines comparables as “a shortened term for similar property sales, rentals, or operating expenses used in the comparison in the valuation process and best usage. The thing being compared should be specified.” In other words, are you looking at comparable sales, comparable rentals, or comparable listings?
Lastly, I’m going to pull up the Encyclopedia of Real Estate Appraising. It’s a great big book, and it has a whole section on this. I highlighted one part of it because I like it: “What is a comparable property? It is one that would be a reasonable alternative for most prospective buyers who would be interested in the subject property.”
What is a comparable property? It is one that would be a reasonable alternative for most prospective buyers who would be interested in the subject property.” —Encyclopedia of Real Estate Appraising
That’s very simple, and it invokes some good, common sense
To read more, Click Here
My comments: Lots of opinions on this topic!
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29008552 – innovative yellow cubic houses built in rotterdam
Rotterdam’s Yellow Cube Homes
Excerpts: Both a popular tourist attraction and a strange architectural experiment, the cluster of 39 homes stands out amongst the city’s mostly modern architecture. However, that is what makes these “cube-perched-on-a-point” homes all the more interesting.
he elevated cubes are essentially houses supported on hexagonal piers; this design frees up the ground space for public use. Each cube measures 72 feet in height with each side measuring 25.5 feet. While the pillars and floor are made from reinforced concrete, structural wooden skeletons from the base for constructing the cubes were mounted on the floors’ edges. Interestingly, cement panels with rockwool insulation in the middle resulted in cutting down on almost all exterior sounds.
Inside, the complicated form meant that the interior walls were angled at 54.7 degrees with the floor. The consequences of this construction detail is that 25% of the almost 1,100-square-feet of living space is unusable because of the angular walls. The interior is divided into three floors that are connected by a narrow wooden staircase. The ground level houses in the living room and an open kitchen with plenty of windows. The second floor has two bedrooms, a bathroom, and a small living area. Finally, the third floor is a three-sided pyramid that can be used as a bedroom or an office.
To read more and see interior photos and floor plans, Click Here
My comments: Fascinating, with very good photos.
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Q2 2025 Fannie Mae Appraiser Update
All the topics are about the New URAR/UAD 3.6
- Countdown to UAD 3.6
- Selling Guide Changes for UAD 3.6
- Project Condition
- Changes to Our Square Footage Policies
- Comments, Repetition, and Templates
- Safety, Soundness, and Structural Integrity
- F-1 for UAD 3.6 Help
To read more, Click Here
My comments: I am working on my next article on the New URAR – UAD 2.6 to UAD 3.6 What software vendors are doing. I have interviewed and seen some demos: ACI, Bradford, alamode, and SFREP.
I watched a demo of a mobile app for recording the data. I STRONGLY RECOMMEND learning how to use your software provider’s current app first. Then you will be ready for the UAD 3.6 app. USING PEN AND PAPER TO RECORD YOUR INSPECTION , WITH LOTS MORE DATA , RECORDING IN THE FIELD WITH PEN AND PAPER IS A NIGHTMARE!
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Appraisal Forms Software in September, 1993
A Glance at the Past
In the May 2025 Issue of Appraisal Today
Editor’s note: This article was originally written as a review of forms software in in the September, 1993 issue of Appraisal Today. Forms Software is very different today! Forms software will still be in use for non-GSE lenders and non-lender appraisals. The New URAR is totally different – no forms!
In 1993, there were 13 companies:
Appraisers Choice/Richard Heyn, Appraisers Edge, Day One, Dynamic Computing, Formfill, Homeputer, MCS, Microform, Residential Appraiser (SFREP), Softbyte, a la mode, United Systems, and WCA.
Clickforms/Bradford started with Mac forms software in 1986 and later switched to Windows, but was not included in my 1993 review. Per one software observer in 1993, more forms software from other companies was available when I started my business in 1986, but I don’t have a list of them.
In my 1993 review I found that none of the programs were poor or inferior. None were significantly above the typical. I had expected a wider range.
A few vendors had copy/use protection. ACI had a hardware device. Some had customer name encryption. Others had no restrictions.
Prices were by the number of users and forms. URAR form only varied from $199 to $595. Only one user with all forms varied from $395 to $3,995. Most were under $1,000. ACI was the most expensive. A la mode was $395. Some had annual support costs, from $250 to $300, which typically included upgrades.
Today, the main companies are ACI, SFREP, a la mode, and ACI
Bradford/Clickforms. Homeputer is still in business today. I started with Dynamic Computing (in Berkeley CA 10 miles from my office), but they were too slow to get a Windows version, so I switched to Bradford (20 miles from my office. I like local vendors so I can go in person to complain ;>
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A Back to the Future Housing Market
By Ryan Lundquist
Excerpts: It’s a Back to the Future housing market right now. You remember the iconic movie, right? Well, sellers are stuck in the past and buyers are living in the future. Let’s talk about it. Skim by topic or digest slowly.
INVENTORY EXPLAINED WITH SKATEBOARD WHEELSHere’s a reel I pushed out yesterday to explain the real estate market with skateboard wheels. I think this is a cool way to describe why active listings have been able to increase so much. And this goes along perfectly with what I’m saying. Let’s watch buyer AND seller behavior closely right now.
THE DOOM PERSPECTIVE IS FAR INTO THE FUTUREI’ll admit I get bored with the housing doom perspective because it’s a one-trick pony with a singular sermon of fear. Death and destruction are coming. Yawn. Anyway, right now I find the doom narrative is gloating in victory and way ahead of the trend into the future. Prices are not crashing right now, and it’s not 2007 in the stats. Has the market changed? Yep.Let’s just be real about the numbers and keep things in context. It’s also important to have enough humility to know that nobody can perfectly predict the future.To read more, Click HereMy comments: Written for real estate agents but good advice for appraisers. Many markets have too many listings vs. fewer sales and pendings.
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Case Dismissed: Ohio Appraiser Wins Discrimination Lawsuit
by Isaac Peck, Publisher WorkingRE
Excerpts: In a historic court ruling, the appraisal profession now has a legal precedent for an appraiser winning in court against charges of appraisal discrimination. In the case of Daviola-Turner v. Henley Appraisals LLC et al, Judge Walter Rice of the U.S. District Court for the Southern District of Ohio granted Henley’s Motion to Dismiss and effectively dismissed the Turner’s appraisal discrimination case against Henley.
One of the unique things about this case is that the plaintiffs, Carlos Turner and Diana Davoli-Turner, allege that Kevin Henley, owner of Henley Appraisals LLC, not only discriminated against Carlos Turner because he is an African American, but that Henley also discriminated against Diana Davoli-Turner because she is a Canadian citizen.
Plaintiffs make an argument that Henley, and U.S. Bank, undervalued the Turner’s home because of Daviola-Turner’s national origin—i.e. because she is a Canadian with permanent residency in the United States.The allegation of anti-Canadian sentiment is a new one on the appraisal discrimination landscape!
Non-Profit FundingThe involvement of the non-profit MVFHC in this case is indicative of a larger strategy wherein non-profits are routinely joining, and possibly financing, the litigation against appraisers. While Connolly and the late Mott, the plaintiffs in the ongoing Maryland suit (and countersuit) were not joined in the case by a non-profit, many observers have raised questions about who is paying for the litigation.To read more, Click Here
My comments: Worth reading
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Mortgage applications increased 12.5 percent from one week earlier
WASHINGTON, D.C. (June 11, 2025) — Mortgage applications increased 12.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 6, 2025. Last week’s results included an adjustment for the Memorial Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 12.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 23 percent compared with the previous week. The Refinance Index increased 16 percent from the previous week and was 28 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 10 percent from one week earlier. The unadjusted Purchase Index increased 20 percent compared with the previous week and was 20 percent higher than the same week one year ago.
“Coming out of the Memorial Day holiday, mortgage applications increased to the highest level in over a month, driven by growth in both purchase and refinance applications. Treasury rates saw some movement during the week, which resulted in additional opportunities for borrowers,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.
“The rate for 15-year fixed rate loans and FHA loans saw declines last week, while the 30-year fixed rate was largely unchanged. Purchase applications were 20 percent ahead of last year’s pace, continuing to show strength compared to a year ago. Despite ongoing uncertainty surrounding the economy, homebuyers seem to be taking advantage of loosening housing inventory in certain markets.
”The refinance share of mortgage activity increased to 36.7 percent of total applications from 35.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.2 percent of total applications.
The FHA share of total applications decreased to 18.0 percent from 18.7 percent the week prior. The VA share of total applications decreased to 11.6 percent from 12.6 percent the week prior. The USDA share of total applications increased to 0.6 percent from 0.5 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 6.93 percent from 6.92 percent, with points decreasing to 0.64 from 0.66 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) increased to 6.93 percent from 6.92 percent, with points increasing to 0.63 from 0.60 (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 6.60 percent from 6.68 percent, with points decreasing to 0.88 from 0.93 (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 6.16 percent from 6.25 percent, with points decreasing to 0.66 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 6.22 percent from 6.14 percent, with points decreasing to 0.33 from 0.43 (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.——————————————–
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.
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Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today1826 Clement Ave. Suite 203 Alameda, CA 94501
Phone: 510-865-8041
Email: ann@appraisaltoday.com
Online: www.appraisaltoday.com
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