Appraisal News and Business Tips

Blog

4-24-20 Newz: Markets Changing? Free Webinars – UFO Homes

NOTICE TO READERS: No covid analysis this week except for this market discussions. Taking a break from Covid. To read my April 3 newsletters, with lots of mostly scientific info, plus updates in these emails since that April 3, go to www.appraisaltoday.com/coronavirus

====================================

House with epidemic influenza and Coronavirus Covid-19 concept

By Ryan Lundquist

Excerpt: FIVE WEEKS AGO: About five weeks ago the real estate market started to have a strong reaction to the coronavirus. I look to March 12th as our day of change as that’s when things started to kick into high gear with events cancelling and sellers and buyers backing off the market.

OBSERVATIONS RIGHT NOW:

1) Pendings and listings declined heavily for a few weeks.

2) Pending contracts have begun to increase again.

3) More new listings are hitting the market.

See how Ryan analyses his market – lots of graphs. Also watch a video interview with Ryan. To read more, click here

My comment: See how the Burmingham, AL is analyzed below. What works for your market?

————————————

Do We Have To Wait To Know How The Pandemic Will Affect Our Market?

Ryan’s interview with Dustin Harris, the Appraiser Coach

Excerpt: Many appraisers are in a “wait and see” pattern, but should we be doing more to be on top of the market? My friend Ryan Lundquist joins me today to talk about his recent article on Sacramento Appraisal Blog called “Seven Things To Watch In Real Estate During a Pandemic.” This is a timely topic for all appraisers.

To listen to the 30 minute audio recording click here

My comment: Ryan’s “Seven Things” article had a huge number of clicks last week. If you missed it, click here

Read more!!

Posted in: adjustments, Fannie, Mortgage applications, Strange homes, webinars, weird properties

4-17-20 Newz: 7 Things to Watch in your Market – More Fannie Updates – Funny Fotos

NOTES TO READERS: To read my April 3 newsletter: Covid 19 Data Comps and-Values, with lots of science info relating to the pandemic, such as pandemics in the past, stages of a pandemic, personal tips, etc. go to www.appraisaltoday.com/coronavirus

For the previous two weeks I sent out two newsletters a week. Got too burned out. Only one newsletter this week, so it is long.

=======================================

Seven things to watch in real estate during a pandemic

April 14, 2020 By Ryan Lundquist

Excerpts:

1) Listings: We often think about listings increasing as a way to see the market changing, but right now many markets across the country are seeing fewer new listings. So at times change is best seen with less of something rather than more. It’s not a surprise to see fewer new properties during a pandemic, right?…

7) Prices: In real estate we are so obsessed with prices, but that’s really the last place to look to see the market. What I mean is change happens first in the areas above before showing up in sales stats a couple months down the road. In short, for now the slower pandemic trend hasn’t infiltrated sales price figures as of yet in Sacramento. This doesn’t mean the market is stable in every price range and location. All I’m saying is regional and county stats don’t show price declines right now. Normally I pull monthly price data, but I’ve switched to weekly in order to see the trend sooner rather than later.

To see the other 4 factors plus lotsa graphs and many appraiser comments , click here

Read more!!

Posted in: adjustments, appraisal classes, appraisal regulations, Coronavirus, desktop appraisals, Fannie, FHA, Freddie, FUN, real estate market, va

4-10-20 Newz: Fannie New FAQs; Appraiser Recovers From Virus; Risky Business

Fannie Mae COVID-19 Frequently Asked Questions – Selling Updated: Apr. 08, 2020

From Dave Towne:
On Wed, April 8, 2020, FNMA issued a new FAQ bulletin regarding mortgage lending and appraisals during the Covid-19 “modification” period.
Click here to download Dave’s PDF. I have extracted the FAQ questions relating directly to appraisals/appraisers. I suggest you print these 6 pages.
Q54 – Q60 have ‘new’ info appraisers should review.
NOTE: While this FAQ is written by FNMA, it also applies to reports which will be sold to FreddieMac – because both GSE’s are working cooperatively in terms of how appraisal reports are to be completed.
NOTE 2: If you are doing an assignment for FHA, USDA or VA, you need to follow THEIR instructions because they have different guidelines for report completion.
Link to original full 14-page Fannie document https://singlefamily.fanniemae.com/media/22326/display

=====================================

Appraiser/Educator Bryan Reynolds is recovering from COVID-19

I had a bit of a difficult time with this podcast. We like to think we’re invincible, immune, unaffected, but that’s silly. We are, at the end of the day, all vulnerable. This chat with my long time friend and partner, Bryan Reynolds, brought that realization home, in stark reality and made it tangible and personal.
People, we damn near lost Bryan. Please give this podcast a listen. I’ve posted it here, largely unedited. This podcast is the epitome of authentic.
Hal Humphreys
Partner Appraiser eLearning
My comment:Listen to this podcast!! I saw the last podcast live on March 26. Hal Humphreys was the moderator, speaking from his front yard. He said that Dave had coronavirus. I am so glad that he is recovered! To watch his webinars, go to https://www.youtube.com/channel/UClb6iDQvzQqj4GOiKSCp8EA

Read more!!

Posted in: appraisal business, appraisal regulations, Coronavirus, Fannie, FUN, humor, Mortgage applications

4-8-20 Newz: SBA Assistance – Inspection Survey Data – T.P.

SBA – $10,000 Disaster Loan Emergency loan/grant and Paycheck Protection Program (PPP)

Check to see if the SBA has issued a disaster declaration in your area. COVID-19 has been declared a disaster.

The two programs are very different. 

1. The Economic Injury Disaster Loan Emergency Advance – up to $10,000 loan – does not have to be repaid. For all appraisers. Sign up now! Appraisers reporting that it is very easy to do. They got their money quickly. Per SBA “within three days of a completed application by a qualifying business.”

2. Paycheck Protection Program – have to get from a bank that is doing them. Can be difficult to get now. See below.

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.

————————————-

The Economic Injury Disaster Loan Emergency Advance – up to $10,000

This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.

Apply for this now! 

For more info https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

To sign up. Covid19relief.sba.gov

Should you sign up for this? I did not think I was having any economic issues. I don’t do any lender apraisaals and am not exempt from stay at home. Then, I realized I am paying $725 per month for an office that I can only use for file storage and picking up mail. I can only do desktop appraisals. I don’t know if the IRS will accept them. I may be able to postpone them, but I have no idea for how long. I am applying today, after I go to my office and find the information I need.

For most appraisers, the future is very uncertain for lender work. Some are getting much less work because they will not do interior inspections. No one knows how long lenders will straighten this out. Or, maybe you’re thinking about not doing interior inspections, but will lose appraisal work until lenders shift to desktop and drivebys.

——————–

Paycheck Protection Program (PPP)

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. It must be done through a bank that participates in the program. Lots of information is required. 

This program is designed to help keep people employed by giving loans to businesses. It is being swamped with business that have closed. Drive down the street in your city or a shopping center and see how many businesses are closed. Large companies are shutting down. In California, many construction projects have been halted.

This program started April 3. Lots of problems as lenders are not sure about how to set it up.

A few tips for applying:

1. Most Important. Contact the bank where you have a loan or an account.

2. Check local social media. I got posts from alignable with some banks to check out.

3. Call banks. May take quite a few phone calls. Check the local newspapers for who is offering the loans.

I emailed the manager at my local bank. I have known him for over 30 years. I have had all my business and personal accounts there for over 30 years. They replied that were totally swamped with inquiries, but were only considering their own customers. It is now a branch of another Bay Area bank, which is relatively small.

For some appraisal companies, this allows you to keep paying employees. For example, you are doing non-lender work. This is not exempt in most states. Your business will be much lower. I am not sure about residential appraisal companies doing lender work that are very busy now.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

Read more!!

Posted in: appraisal business, cat, Coronavirus, Fannie

4-3-20 Newz: COVID-19: Data, Comps and Values

Download your FREE copy of the April paid Monthly Appraisal Today!!

Click here to download traditional 3-column format 12 pages

Click here to download the wordprocessing version. Read on your ipad or computer. About 24 pages.

NOTE: To find what you want, search (control – F) is useful. I use it myself all the time!

Why am I giving my newsletter to everyone? It is the right thing to do.

This newsletter discusses many topics in detail

Some of the topics:

  • It’s all about the data!! Limited testing data and what it means
  • The comps: current and past epidemics and pandemics
  • Being used for analysis of the future now.
  • Health and safety issues for appraisers
  • Masks, gloves, booties, etc.
  • When will we go back to our normal lives
  • Pandemics – the stages and what they mean
  • Immunity, Vaccines

======================================

Everything is changing so fast, it is very hard to keep up!

For example, in the April issue I wrote a lot about the CDCs recommendation on masks (only for heath care workers) and why I thought lots of people should be wearing them and why. A few days ago, the CDC is saying maybe they should recommend what I was saying. Had to revise my April newsletter!! I am sure some of what I wrote will be changing soon (finished on Wednesday), or has already changed.

Read more!!

Posted in: Coronavirus, liability, real estate market, weird properties

4-1-20 Newz: Effects on Value; FHA/VA; Return to Normal?; Fun Video

The paid Appraisal Today April newsletter will be free on April 3, Friday.

It focuses on what COVID-19 means for appraisers. I researched and discuss details: why data is the key, what are the comps, etc. Topics such as using gloves and face masks. There is lots of mis-information out there. I use the experts – scientists, especially epidemiologists.

==============================================

SOCIAL DISTANCING IS CRITICAL. WE ALL MUST WORK TOGETHER TO SO THAT FEWER PEOPLE GET THE VIRUS. WE MUST MAKE PERSONAL SACRIFICES. FOLLOW THE ADVICE OF YOUR STATE AND LOCAL HEALTH DEPARTMENTS.

Louisiana is an example of what happens when lots of people gather together. Mardi Gras was February 25. No one knew much about it then.

On March 5 I took an appraisal class. No one did social distancing, even myself, or even talked about it. Some hand shaking. One person coughed and quickly said something got caught in his throat so attendees were somewhat aware of it. Hard to remember what those days were like… when there were live classes or meetings…

————————–

BE GRATEFUL THAT YOU CAN STILL WORK!!

We all see shuttered stores, many businesses shut down, employees laid off. Appraisers are still working. Lenders need appraisals. You choose which personal protection to use. You decide which appraisals to accept. You can drive around while most of us are staying in our homes.

———————————-

Interior Inspections: Tough Choices for Appraisers

More comments in workingre article here:

http://www.workingre.com/interior-inspections-tough-choices-for-appraisers/

————————————————————

You already know what think – Just Say No.

Here are a few ideas:

  • Turn down FHA with interior inspection. way too risky!!
  • Raise your fees a lot for interior inspections. They are risky.
  • Drivebys and desktops will take a lot of time getting photos from borrowers. Asking questions, Etc. Ask higher fees than you used to ask.
  • Take fewer assignments.
  • This will not last very long. Lenders are shifting to drivebys and desktops. Why risk heath and safety you, your family and others, for a few appraisals?

GSEs/FHA/VA and bank commercial lenders are trying to protect appraiser’s health and safety by eliminating interior inspections. Freddie Mac has new guidelines for apartment appraisals.

Read more!!

Posted in: appraisal business, Appraisal Foundation, Coronavirus, Fannie, FHA, unusual homes, va

3-27-20 Newz: Fannie Update/Resources – 1004 for drivebys, forms changes, inspection, etc.

NOTE: This information is changing on a daily, and often hourly, basis. The amount of information is almost overwhelming. What you read today may change tomorrow. Most of the info below is summary with more details in the monthly newsletter next week. Also, lots more on personal COVID-19 such as data availability, safety, etc. I am spending 10+ hours per day trying to keep track of it so I can let you know.

Per Fannie, this is a “fluid event”. There are many questions about health and safety for the appraiser and the borrower (and their contacts if infected) when doing interior inspections.

There is lots of appraisal misinformation online. It is not a good source unless it includes a link to the correct information or the source that can be located online. I only use email chat groups that I have used for many years, such as National Appraisers Forum To read more, click here

Read more!!

Posted in: Coronavirus, Fannie, fees

3-20-20 COVID-19 and Appraisers. What are lenders doing? – FREE Webinar – Interior inspections?

There are many, many issues which seems to be changing on a daily basis. I wrote this yesterday. There have already been changes I am sure. I am including links to relevant information below

The big refi boom is causing lots of desperate lenders and AMCs trying to find appraisers.

You don’t need more info on keeping safe as it is available all over. What I discuss today is shift from interior inspections to drivebys, forms, what lenders are saying, what real estate agents are doing, the market changes (maybe), liability, etc.

What are lenders and AMCs doing?

Some direct lenders, such as Citibank, are sending out emails about what they recommend. On the other side AMCs are acting like nothing has happened and sending out email blast low fee appraisal request. FYI, it is a lot easier for one lender to change. AMCs work for many lenders.

Info on what Citibank is recommending from VaCAP:

Many are fearful exterior only appraisals will be the end of the traditional appraisal as we know it. Right or wrong, exterior only appraisals are a possibility that may be acceptable in certain situations. VaCAP does not believe it will end traditional appraisals with interior inspections. The profession has been down this road before. It will not fly long term, especially if the market turns downward.

Some lenders are establishing COVID-19 protocols to follow and some have remained quiet on the subject. There are rumors that one lender has instructed appraisers not to inquire as the health of the occupants of the home due to privacy laws. Others like Citibank have developed their own protocol on how appraisers should handle COVID-19 concerns. There is great flexibility to the appraiser. See Citibank’s protocol below:

Worth reading. To read more, click here

Read more!!

Posted in: appraisal business, Coronavirus, va, weird properties

3-13-20 Coronavirus & Inspections – AVMs & Wonder Bread – Toilet Race

Appraiser’s (Changing) Role

Q&A with Mark Verrett, Chief Innovation Officer at Accurity Valuation

Excerpts: WRE: How can appraisers adapt to meet the profession demands?

Verrett: I think there are several ways to adapt to these challenges. The first is to work toward diversifying your practice away from 100 percent mortgage business niches. Our firm is a leader in green valuation, rural valuation, valuation consulting and litigation support and we help our offices diversify into those spaces. However, this solution isn’t for everyone….

To directly take on the challenges facing appraiser relevancy in the mortgage space, significant change is required. Appraisers need to unite to create a like-minded national voice that is not rejecting proposed changes for the profession, but rather working with stakeholders (regulators, lenders, clients, etc.) in conceptualizing, testing, tweaking, and ultimately modernizing the appraisal process on the mortgage side.

The appraisal community has a tough assignment in their role in this modernization. To be useful in the discussion, we need to challenge ourselves to be creative and open-minded, yet diligent in maintaining or, even better, improving the quality of the valuation being produced. I think it is extremely important for appraisers to listen and understand the needs of their clients and to creatively develop solutions that meet those needs.

Worth reading with some good ideas. To read more, click here

My comment: Accurity has franchisees and some very savvy appraiser officers and directors.

Read more!!

Posted in: AMCs, appraisal business, Appraisal fees, appraisal management company, AVMS, future, lender appraisals, Mortgage applications, mortgage loan volume, unusual homes, weird properties

3-6-20 Newz: Refi Mania – Corelogic AMC – Coronavirus & Housing Market

CoreLogic attributes its 4Q growth from shift to an AMC

Excerpt: Organic growth trends accelerated during the quarter boosted by market share and pricing gains. One example of accelerated momentum on the organic growth front relates to our new collateral valuation services model.

As you know, we successfully completed our AMC transformation last December. Our new service model has attracted significant market interest and we’ve recently secured major new contracts with two of the top 10 US mortgage originators. These wins together with a host of other new contracts for our reimagined service model are expected to generate strong double-digit underlying AMC revenue growth with higher margins in 2020.

To read more, click here

NOTE: Long article. Search for amc (21 references)

My comment: More staff appraisers? google corelogic AMC for more info.

======================================

Giant Roadside Curiosities

Just For Fun and Escape!!

Excerpts: American highways have something for everyone. Lots of litter. License plates galore. And, if you take the right route, a dinosaur car wash, or a supper club in the biggest fish you’ve ever seen.

To read more, click here

Read more!!

Posted in: adjustments, AMCs, appraisal regulations, Mortgage applications, mortgage loan volume, real estate market, weird properties