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This blog has all my free weekly email newsletters since 2012. Plus other topics. Please note that the original email newsletter subject line has been significantly shortened. To see the original email newsletters, click here to go to the newsletter archives. The newsletter has been sent out weekly since June, 1994. To subscribe to the free email newsletters and receive them on the date they are first issued, go to www.appraisaltoday.com and sign up in the big Yellow Box!!

Looking for a topic? Use Search box on the right side. There are hundreds of posts on this blog, starting in 2012. 

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Posted in: Uncategorized

CubiCasa – Home Measurement From Inside A House

CubiCasa and a Desktop Mess – an appraiser’s experience

By Jamie Owen

Excerpts: I called the listing agent on the property I was to appraise and asked if they knew how an appraiser might go about obtaining a floor plan (for my desktop appraisal). She had no idea and had never heard of this type of thing being needed. I was really at a dead end here. I called the bank and explained the situation. They ended up converting the assignment to a traditional type of appraisal so that I could just make the inspection myself.

I called the chief appraiser of the bank that ordered the appraisal. I know him well and have worked together with him on some complex assignments. He said the whole thing is a mess. Some appraisers are submitting reports where they have the listing agent hand-draw the interior walls on copies of the county auditor’s sketch outline. This is also a no-no. Fannie Mae will accept nothing hand-drawn in terms of the sketch…

I decided to test CubiCasa. I downloaded the software to my iPhone 11… I must tell you that I was very impressed! The scan took 15 minutes to do. By the way, I measured the home also. It took about 15 minutes for me to measure the home. But it would have taken a lot longer if I had to add walls and doors!

In less than a day, the sketch was sent to me via email, and it was awesome! It was professional-looking and had all the data that I needed. Its measurements were within 15 square feet of mine on a home that was just over 2,400 square feet. It also broke down the square footage of each floor and the dimensions of each room and its gross living area calculations.

I have been using it and then comparing my measurements with its measurements. It is consistently within 1-3% of my measurements. The 3% variance is with larger homes with complex angles and tricky areas to measure. In my view, that’s pretty good!

To read more and see a fun video and animated gifs, click here

My comments: Desktop appraisals are a new type of assignment for appraisers. I wrote about CubiCasa and Desktops in recent newsletters. I tested it and spoke with knowledgeable people. I am using it. No more exterior measurements!

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

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 Retirement, real estate market changes, ANSI, Appraising luxury homes, unusual homes, mortgage origination stats, etc.

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5 Mansions Priced Under $ Million 

Excerpt:

5 Main St, Richmond, ME – Photo above

Price: $725,000

Built around 1870, the 7,508-square-foot mansion has been restored multiple times over the decades. Most recently, it was converted into the Southard House Museum, complete with an observation room in the top-level turret. That spot affords you views of the Kennebec Bridge, Swan Island, Kennebec River, and downtown Main Street.

It could be used as a multifamily home, a vacation rental, or a bed-and-breakfast. The carriage house on the property offers flexible space for an office, gym, storage space, or garage.

There are nine bedrooms and six bathrooms in the mansion and a half-bath in the carriage house. In addition, you’ll find four kitchens, paved parking, and a studio apartment.

The other mansions are in Indiana, Washington, Maine, and Minnesota

For lots of photos in this listing, click here.

To read about the other four houses, click here.

My comments: Too much maintenance! What does $1,000,000 buy where you live? In my area, not much, with the median price at $1,300,000 and few listings under $1,000,000.

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4 Top Reasons to Become a Luxury Home Appraiser

By McKissock

Excerpts: A “luxury” home is not so much about price tag as it is about quality and customization. At its core, it’s any home that is a step above typical or even high-end traditional homes in the area. So, you don’t have to live in an area full of sprawling mansions and multi-million-dollar homes to become a luxury home appraiser. There are many reasons why appraising luxury homes is recommended for real estate appraisers. The following are just some of the top reasons.

1. The luxury market is stable

Unlike the traditional real estate market, the upper-tier real estate market tends to be less influenced by economic fluctuations, providing insulation that the traditional market just doesn’t have. As wealth is transferred from generation to generation and Millennials start to accumulate assets and purchase property, it is very likely the luxury real estate market will continue to see positive growth for years to come.

To read three more reasonsclick here

My comments: Is your lender business slowing down? Thinking about diversifying? I know appraisers who have specialized in this market for many years. They work for lenders/AMCs and are on special lists. They have few competitors, as most appraisers “just say no.” Fees are much higher than for other home appraisals, of course.Getting too many ad-only emails?

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Retirement: To Stay or Not to Stay

That is the question!

Retirement “triggers”

For many who retire, something happens, causing you to decide.

– Hate appraising and don’t think it will change.

– Spouse retires

– Health problems

– Influence of family and friends who have successfully retired

– Children graduate from college

– It’s the right time: finances are in good shape and emotionally ready for the changes that retirement will bring

Doing appraisals after you give up your state license

This is usually the “trigger” for retiring from appraising is giving up your license. I don’t recommend doing this unless you are sure you will never want to appraise again; even an occasional non-lender appraisal is an easy way to increase your retirement income if needed.

In most states, you renew every two years and must decide then. Fortunately, there is a more extended period before deciding.

You can appraise without a license in many states (non-mandatory), including California, but it isn’t easy and isn’t easy to get work. No lender work and many other clients want to know if you are licensed. When licensing first started, I knew appraisers who did not get licensed because they had never worked for lenders. They had to get licensed because their clients wanted it, particularly attorneys.

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If you have any comments or info on any topics, please hit the reply button!! I’m always looking for something new ;>If you are a paid subscriber and did not get the May 2022 issue, emailed on May 2, 2022, please send an email to info@appraisaltoday.com and we will send it to you!! Or, hit the reply button. Be sure to put in a comment requesting it.

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The housing market has shifted

May 11, By Ryan Lundquist

Excerpt: How I’m describing the market: Overall, the market still feels elevated in that we are seeing a higher-than-normal amount of competition. And frankly, sellers are still in the driver’s seat. Yet, there is no mistaking a blatant temperature change or shift about a month ago. It seems an inflection point occurred where we really noticed the effect of higher mortgage rates on buyers. Some buyers have backed off due to declining affordability, and others have become much more sensitive to price.

In other words, buyers are hyper aware of lofty monthly mortgage payments, so they have higher expectations about what they’re buying. It would be an error to call this market cold, but there is no mistaking a cooler temperature from the scalding temperature of January through March.

Fewer pending contracts (big news): We’ve seen a dip in pending contracts over the past few weeks, which speaks to shifting demand. The number of pendings was down 12% this April compared to last year. Where will this black line go in the coming time? That’s the big question. Will buyers adapt to a new environment of higher rates, or will we continue to see fewer buyers playing the market?

To read more click here

My comments: Read the blog comments to see what is happening in other parts of the country. What’s happening in your market? Don’t miss the downturn which is coming. You MUST go beyond the comps, which are always the past, not the present or future. Ryan has lots of useful graphs in this article you can use for ideas in your analysis.

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Navigating Stairs with ANSI: Don’t Fall Down

By McKissock

Excerpt: When do stairs need special attention?

The only time stairways become an issue requiring special attention is when the stair opening is larger than the stairs themselves. For example, if a stair opening between the first and second floors is 10 feet by 10 feet, and the stairway (which fills part of this opening) is 3 feet by 8 feet, then the appraiser would subtract the opening (100 square feet) and add back in the stairs (24 square feet) to the second-floor level.

To read more, click here

My comments: Not all appraisers are following ANSI, which is only required for loans being sold to Fannie for now. I have not heard of any appraisal revision requests. Fannie is waiting a while I guess to start revisions requests. They are concentrating now on trying to get appraisers to do desktops. Getting Fannie’s required Desktop information is not always possible, such as a floor plan and sketch, so they are sometmimese upgraded to full appraisals. Then you can use CubiCasa for a floor plan and square footage. My February and March 2022 newsletters had lots of information on ANSI. The May issue reviewed CubiCasa and Desktops.

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The Pavilion in La Jolla, California

Excerpt: In 1960 Sam Bell heir to General Mills (Bell Potato Chips) purchased a summer home with a spectacular view of the Pacific Ocean. His property extended down a 300 foot cliff to the mean high tide line of the surf below. His beach is isolated 4 miles from public access to the North, and is accessible only at low tide through rugged, slippery rocks from the south, and remains unused and out of sight. Only surfers, 100 yards away, can see the mushroom shape of the guest retreat.

Faced with the extraordinary challenge of developing access to the beach and guest retreat the owner assembled a design team to innovate. Elevator Electric Co. designer and builder of the 1st glass elevator in San Diego designed and constructed the 300 foot tramway. Because of the unusual nature of the project, workmen walked off of the job, requiring the three owners of the tram company to install the last 100 feet of the tramway railing with help from Jack Schultz..

To read more and see more fotos, click here

My comments: Wow! For almost 30 years, I lived in homes on the water with boat docks (level lots) on tidal estuaries of San Francisco Bay. Being on the water is way better than above the water. Looking down is not the same!

ANSI Z765-2021 Resources Web Page at www.appraisaltoday.com/ANSI

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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.

My comments: Rates are going up. The number of appraisals is driven by refis. Make money while you can!!

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Mortgage applications decreased 11.0 percent from one week earlier

Mortgage applications decreased 11.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 13, 2022.

The Market Composite Index, a measure of mortgage loan application volume, decreased 11.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 11 percent compared with the previous week. The Refinance Index decreased 10 percent from the previous week and was 76 percent lower 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 15 percent lower than the same week one year ago.

“Mortgage applications decreased for the first time in three weeks, as mortgage rates – despite declining last week – remained over two percentage points higher than a year ago and close to the highest levels since 2009. For borrowers looking to refinance, the current level of rates continues to be a significant disincentive,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Purchase applications fell 12 percent last week, as prospective homebuyers have been put off by higher rates and worsening affordability conditions. Furthermore, general uncertainty about the near-term economic outlook, as well as recent stock market volatility, may be causing some households to delay their home search.”

Added Kan, “These results were consistent with MBA’s May forecast released earlier this week, which now calls for fewer home sales and mortgage originations in 2022 compared to a year ago.”

The refinance share of mortgage activity increased to 33.0 percent of total applications from 32.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 10.3 percent of total applications.

The FHA share of total applications increased to 11.1 percent from 10.5 percent the week prior. The VA share of total applications remained unchanged at 10.5 percent. The USDA share of total applications remained unchanged at 0.5 percent.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased to 5.49 percent from 5.53 percent, with points increasing to 0.74 from 0.73 (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 $647,200) decreased to 5.03 percent from 5.08 percent, with points increasing to 0.61 from 0.42 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.73 percent from 4.79 percent, with points increasing to 0.82 from 0.80 (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 4.42 percent from 4.47 percent, with points remained unchanged at 0.73 (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

Appraiser and Publisher Appraisal Today

1826 Clement Ave. Suite 203 Alameda, CA 94501

Phone 510-865-8041

Email  ann@appraisaltoday.com
www.appraisaltoday.com

Posted in: ANSI, appraisal business, desktop appraisals, real estate market

Borrower Keeps Calling Appraiser

Borrower Keeps Calling Appraiser

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

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 appraisals under contract price, bias, vacant land, hybrids, fannie bad appraiser list, unusual homes, mortgage origination stats, etc.

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Posted in: appraisal how to, bad appraisers, bias, Freddie, hybrid appraisals

Green Home Appraisals – Ideas for Appraisers

5 Tips for Appraising Green Homes

By McKissock

Excerpts:

1. Consider each home on a case-by-case basis

You must independently determine whether there is sufficient information available to develop a reliable opinion of market value for each individual property. That will depend on the extent of the differences between the green home and other types of houses in the neighborhood. It will also depend on the number of such properties that have already been sold in the neighborhood.

5. Compare improvements to those in the neighborhood

Any improvements should conform to the neighborhood in terms of age, type, design, and materials used for their construction. If there is market resistance to a green home property because its improvements are not compatible with the neighborhood or with the requirements of the competitive market because of adequacy of plumbing, heating, or electrical services; design; quality; size; condition; or any other reason directly related to market demand, address the impact to the value and marketability of the subject property.

To read more, click here

My comments: I have “Mediterranean” (mild) weather, without much solar. If you live in an area with high summer and/or low winter temperatures, there are probably more solar installations. Many classes are offered by various appraisal CE providers. Check with education providers, such as McKissock, the Appraisal Institute, and local offerings.

What are Pass through Bedrooms for Appraisals

Appraisal Business Tips 

Humor for Appraisers

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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 desktops, nonbanks, alternative financing, unusual homes, mortgage origination stats, etc.

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Posted in: adjustments, ANSI, desktop appraisals, lender appraisals

Does A “Crazy” Neighbor Lower Value?

Does A “Crazy” Neighbor Lower Value?

By Jamie Owen
Excerpts: It’s tax appeal season, and I’ve had several homeowners say that they feel their neighbors are negatively impacting the value of their homes for different reasons. Is that the case? Can that be the case?
The homeowners of one property stated that their neighbors are a nuisance. My clients said that one of their neighbors has people coming and going until late in the evening, most evenings. They also complained about there being noisy. Additionally, they claimed that the neighbor directly behind them is not a very nice person and is always causing neighborhood trouble.
Meanwhile, in a different neighborhood, a different homeowner claimed that their home was suffering a loss of value due to their neighbor’s home not being kept up and needing repairs and updates on the exterior. The neighbor’s property is an eye-sore.
The long-winded point I am trying to make is that the appraiser will need to find some evidence to support the claims that a neighboring property is really creating a loss in market value to its neighboring properties.
To read more, and see some fun animated gifs and videos, click here
My comments: As always, Jamie often writes about appraisal topics from a different “angle”! I have a crazy next-door neighbor also, who waits for me to come home to “attack” me with some perceived problem… since 1986 when I purchased the property.

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

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 waivers, Desktops, real estate market, Clubhouse, unusual homes, mortgage origination stats, etc.

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Posted in: adjustments, ANSI, Clubhouse, desktop appraisals, liability, real estate market, waivers

Crazy Appraisal Stories! We all have them!!

Crazy Appraisal Stories!

Excerpts: Not Just Measuring Homes and Taking Pictures
I went to appraise a home for a movie producer in Brentwood, California. I knocked on the door, and one of the producer’s boyfriends opened the door and invited me in. He was completely naked. He told me that whatever I do, don’t let the cat out. As I went room to room taking photos, I met another naked boyfriend. He also told me not to let the cat out. As I went to the second floor of the house, I met the producer who was also naked. He told me again, “don’t let the cat out.”
I’m approaching the rear patio door to take pics of the rear of the house. Outside I see a beautiful pure-bred Persian cat. I know I didn’t let the cat out but I sure as hell better get it back in the house. I started chasing the cat in the rear yard. Finally, I grabbed it, but not before it ripped my blouse and caused my hands to bleed. Huffing and puffing from the chase, I tossed the cat back into the house and closed the door. A few moments later one of the naked boyfriends came over and said “that’s the neighbor’s cat. Get him out of the house.” I then had to chase the cat again. Finally, I caught the cat and put him out of the house. I was left there panting with a torn blouse and bleeding hands, thinking appraising homes is definitely not just measuring homes, taking pics, and typing up forms.
-Mary Cummins
To read more, click here
My comments: Just For Fun! We’ve all got these stories!

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

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 Desktops, Future of appraising, Cubicasa, ANSI, unusual homes, mortgage origination stats, etc.

 

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Posted in: ANSI, desktop appraisals, forecast, future, humor

What is a “good” appraiser?

8 Characteristics of a Successful Real Estate Appraiser

Excerpt: Here are two:
Unbiased
The ability to form an unbiased, objective opinion of value is absolutely essential in this line of work. According to this survey, many appraisers agree that this is the single-most-important trait you need to have as a real estate appraiser. In order to provide trustworthy results and uphold the integrity of the appraisal profession, you must be unbiased. Otherwise, you risk losing your professional reputation.
Analytical
It’s important for appraisers to be analytical, as each appraisal assignment will require thorough analysis and critical thinking.
To read more, click here
My comments: I was hooked on science in my first science class: high school biology. I studied biology and chemistry in college. I learned to be objective and unbiased, analytical, and open to almost any possibility. I have used these skills in appraising. I have always been curious, which keeps me up on what is new and other ways of looking at appraising a property. As far as I know, relatively few appraisers have science degrees.

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

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 Real estate market changing?, appraisal  modernization, expert witness, desktop appraisals, cubicasa app, unusual homes, mortgage origination stats, etc.

 

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Posted in: desktop appraisals, Fannie, real estate market

Appraisers – The Past and The Future

Appraisers – The Past and The Future

The Path that Brought Us Here

by Richard Hagar, SRA

Excerpts: A wise man by the name of Jim Irish, former chief appraiser for the Federal Reserve Bank out of Topeka, Kansas, once told me something very profound: “The government is rarely proactive but always reactive.” Translation: laws, rules, and guidelines are usually developed after a problem smacks us upside the head. Since hearing this, I have found that it also applies to large enterprises.

Appraisers continued to tell lenders that they drove by each of the comparables used in the report. Years later, when lenders, Fannie Mae, Freddie Mac, FHA, and the VA spot-checked reports, they found out that the condition or location of many comparables didn’t match what was reported. So, the reactive response was to require the appraiser to affirm, under penalty of perjury (which stands to this day), and provide original photographs of each comparable.

Failure to inspect triggered client engagement letters stating the absolute requirement to personally inspect each of the comparables, provide original photographs, and create a system that inspects the photographs and can tell when a photograph is used twice or sourced from the MLS or county—clients know who’s lying to them and fees are lower because of it.

To read more, click here

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Prepare for Change

by Richard Hagar, SRA

Excerpts: In my career, I’ve been through four major changes in the market and our business, so what’s about to happen isn’t my first rodeo. I’m going to point out some things that will make a few people angry. However, I’m trying to help by pointing out how you can become better and profit from the change.

Waivers

Both Fannie Mae and Freddie Mac allow “appraisal waivers” (loans where no appraisal is required), and in the past, waivers were limited to fewer than 5% of the loans they purchased from lenders. However, their waivers have increased to 48% of their loan purchases over the past year. Imagine that 48% of the loans no longer require an inspection or appraisal.

Prior to 2022, Fannie Mae’s UAD system reviewed approximately 20,000 appraisals a day produced by approximately 40,000 appraisers. This indicates that appraisers were providing one appraisal every other day. Now, consider that waivers reduce the rate to an appraisal once every 4 days. Ouch.

To read more, click here

My comments: I have known Richard Hagar for a long time. He can sometimes be negative or even harsh but has good ideas

The future of residential appraising(Opens in a new browser tab)

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

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 unusual homes, bias, Old comps, investor purchases, mortgage origination stats, etc.

Read more!!

Posted in: appraisal, appraisal how to, bias, Clubhouse, real estate market

PAVE Appraiser Bashing

PAVE Action Plan to Advance Property Appraisal and Valuation Equity

By McKissock, March 23, 2022
Two of the more controversial recommendations:
Excerpts:
Inform Federal Housing Administration (FHA) borrowers about the process to request a reconsideration of a valuation when the initial valuation is lower than expected.
Perhaps the most far-reaching recommendation for action is number 1.6, which states, “Develop a legislative proposal that modernizes the governance structure of the appraisal industry to improve transparency and public participation in the establishment of appraisal standards and appraiser qualification criteria, and to advance diversity in the profession.” Translation: Amend FIRREA to remove references to The Appraisal Foundation and transfer the Foundation’s authority to write appraisal standards and qualifications to the Appraisal Subcommittee or another federal government entity.
As of this writing, no proposed legislation related to the PAVE recommendations has been introduced. Because committees in both the Senate and the House are holding hearings, a bill (or, more likely, bills) can be expected very soon. Stay tuned.
Short and worth reading. To read more, including links to the full PAVE report and the summary, click here
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AEI’s Comments on PAVE Report
Excerpt: The Brookings and Freddie Mac studies are not based on rigorous data analysis. Most importantly, they conflate race with socio-economic status (SES), i.e. income, buying power, marriage rates, credit scores, etc. Race-based gaps found in the Brookings and Freddie Mac studies either entirely or substantially disappear when adjusting for differences in SES. Furthermore, our analyses show that similar gaps are present in majority White or White-only tracts across different SES levels, raising serious questions regarding a race-based explanation.
To read more, click here
My comment: American Enterprise Institute is a conservative “think tank” and has also supported the appraisers’ side on other issues.
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Congress Committee Meetings on Appraisal Bias

Strengthening Oversight and Equity in the Appraisal Process
Thursday, March 24, 2022
Senate Committee on Banking, Housing, and Urban Affairs
Appraiser Witness: James Park, Executive Director Appraisal Subcommittee
To watch, click here
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Devalued, Denied, and Disrespected: How Home Appraisal Bias and Discrimination Are Hurting Homeowners and Communities of Color Tuesday, March 29, 2022

House Financial Services Committee

Appraiser speakers:
  • Pledger M. Bishop, III, President, Appraisal Institute
  • David S. Bunton, President, The Appraisal Foundation
  • Dean Kelker, Senior Vice President and Chief Risk Officer, SingleSource Property Solutions, on behalf of the Real Estate Valuation Advocacy Association
To watch, click here
My comments: I was not able to watch either of these meetings before writing this newsletter.
Jonathan Miller attended the virtual March 24 meeting and had comments on the March 24 and 29 hearings. To read his comments, click here Scroll down to “James Park”
His blog post for today (usually sent around 11 AM EST) may have comments on the March 29 meeting. To read his comments, click here. Search for “devalued” (Hopefully, this link works.)

Appraisal Business Tips 

Humor for Appraisers

Click here to subscribe to our FREE weekly appraiser email newsletter and get the latest appraisal news!!

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 unusual homes, 1004/Desktops, mortgage origination stats, etc.

Read more!!

Posted in: ANSI, bias, desktop appraisals

Desktop appraisals – Lots of Info Available!

Desktop appraisals – Lots of Info Available
Fannie and Freddie started using Desktops on March 19, 2022

Both a floor plan and a building sketch with dimensions and GLA calculations are required. ANSI is not required.

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March 2022 Fannie Mae Appraiser Update: 

Link to March Appraiser Update, click here:

Link to “About Desktop Appraisals” PDF with 5 pages of information, click here Watch the Noble Appraiser explore the benefits of performing desktop appraisals:
The Desktop Appraisal Discovery Link to Noble Appraiser on desktops video, click here 

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McKissock: Fannie Mae and Freddie Mac Desktop Appraisals: Your Questions Answered

Excerpts: In January 2022, Fannie Mae and Freddie Mac announced a desktop appraisal option that goes live in mid-March 2022. In various articles and opinion pieces, some claim that desktop appraisals will solve the appraiser shortage and modernize the appraisal process, while others claim that they will cause the demise of the appraisal profession.

Here are a few of the 16 questions answered

  • What is a desktop appraisal?
  • Does USPAP require me to complete an inspection?
  • What data sources are used for identifying the subject’s relevant characteristics?
  • Are there any state restrictions?
  • Must I be competent in the subject’s market area?
  • Are extraordinary assumptions allowed?
  • Does the limited scope of work mitigate my liability?
  • Won’t these types of valuations be risky for the lender

To read more, click here

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Bradford Software Webinar Floor Plans for Desktops – Discover Your Options with 7 Floor Plan Providers March 24, 2022 (1 hour, 34 minutes), with comments from Scott Reuter of Freddie Mac.

It was recorded and is available at https://vimeo.com/692030955

I did not have time to watch it yesterday.

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My comments on the above resources: What’s the best resource(s) for you?

Noble appraiser video is short (3 min. 34 seconds) understandable and very informative. Fannie Mae is “the source” for desktops. McKissock’s Q and A post is well written, understandable with short answers.

Bradford’s video has demos of 7 app providers for floor plans and sketches.

If lenders will use them much is very uncertain. The Covid desktops were never widely adopted. No one knows now which cell phone apps will be used, who will use them, and their accuracy (tested by an independent company). Minimum of an IPhone 12 Pro, with LIDAR camera. Appraisers who have tested them say the floor plans are good, but sketches with dimensions and floor plans may not be accurate on complicated home designs.

Appraisal Business Tips 

Humor for Appraisers

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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 unusual homes, lender bias, ANSI, FHA class, mortgage origination stats, etc.

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Posted in: bias, desktop appraisals, Fannie, FHA

Fannie ANSI Update – 19 New FAQs

Fannie ANSI FAQs Update

Updated Standardized Property Measurement Guidelines – 19 new FAQs, 5 Pages

Excerpt from the short Fannie email sent 3-15-22 at 8 AM (Pacific time): “…Are you ready? We’ve updated the Standardized Property Measuring Guidelines fact sheet to include more answers to your frequently asked questions. Thanks to all the appraisers, AMCs, and lenders who submitted questions.”
My comment: There are no changes to the first page, including comps measured differently and the exception process. Links are included for references in Fannie’s Selling Guide in the Guidelines.
FAQ topics include:
Q5. When common practice in the local market differs from the ANSI standard, can the appraiser modify the subject’s GLA to conform to local custom?
Q8. The ANSI standard specifically notes that the definition of above and below grade could cause some houses to have no above-grade finished square footage.
How should appraisers report GLA in this scenario?
Q9. How will lenders know that appraisers used the ANSI standard?
Q15. Will appraiser adherence to the ANSI standard cause confusion when the subject GLA differs from other sources such as MLS or public record?
Q16. How should appraisers account for rooms located in above-grade finished areas that do not qualify as GLA under the ANSI standard?
Q18. The GLA of comparables available to appraisers may not be based on the ANSI standard. How should appraisers manage this issue?
Q19. How should appraisers value finished areas that the ANSI standard does not include in GLA, such as where the ceiling height is less than 7 feet?
To download the PDF to read the answers and other FAQs,  click here
My comments: Read This Document! I have been waiting for an update to the one-page original Fannie document since it was first released about 3 months ago. There are many, many issues when using ANSI for lenders and AMCs. Appraisers sent many questions to Fannie and made comments during webinars with Fannie.
If you’re looking for a class, webinar, or other ANSI info, go to www.appraisaltoday.com/ANSI

Appraisal Business Tips 

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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 unusual homes, new Fannie Form, stress, price per sq.ft., reviewer appraisal problems, mortgage origination stats, etc.

 

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Posted in: ANSI, appraisal business, Fannie Forms, Reviews