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NOTE: Please scroll down to read the other topics in this long blog post on FHA regs, USPAP, State Boards, appraisal business, unusual homes, mortgage origination stats, etc.

Posted in: adjustments, appraisal business, FHA, george dell, USPAP

Tags: adjustments, appraisal business, FHA, state appraiser regulators, USPAP

What Should Appraisers Wear?

By Ann O'Rourke on May 21, 2021 / Leave a comment

What Should Appraisers Wear?

Excerpt:

Professional Dress

When we are observing properties, it is important that we dress professionally. If we are doing an appraisal for lending, we are a representative of our client. Although we are not an employee of the client, we do represent them. Often, we are the only person actually seen by participants in the transaction.

Photo above by BBH Singapore on Unsplash

Also, we represent ourselves, our business, so we want to dress professionally. We are professional licensed appraisers performing our work and should look as such. That said, what works for walking around properties, in between bushes, in the mud, etc.?

To read more and add your comments click here

My comments: Very interesting. From a female appraiser perspective, but applies to guys also.

Over my 45 years of appraising, I had differences in what I wear, from very professional (commercial) to casual for protection from bushes, dogs, etc. For residential appraisals, I prefer to keep my clothes from being damaged (heavy pants, strong jacket, collared polo shirts, and very sturdy shoes) from gravel, unknown stuff under weeds in the back yard, etc.). I live in a mild Mediterranean climate, so I don’t do much else except raincoats and a heavier jacket. I don’t even want to think about snow, slush, and mud!!

Wearing shoes in a house for appraisal(Opens in a new browser tab)

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Posted in: adjustments, appraisal business, bias, Fannie, real estate market

Tips on doing appraisals for AMCs

By Ann O'Rourke on May 14, 2021 / Leave a comment

Top 10 Tips for Working with AMCs

Excerpt: 6. Make appointments quickly

Schedule appraisal assignments as you receive them, within 24–48 hours. Many AMCs will score you on this task. If you’re working in a small area, and you get two assignments in one day that are close together, make the appointments. Get them on the books and schedule them as quickly as possible.

7. Update the AMC with any delays

Be sure to update the client if any delays or problems come up during the appraisal process. See item #2 above: Update your order statuses. This will preserve your SLAs with AMCs.

To read all the tips, click here

My comment: Nothing new, but some good reminders. Of course, you may not agree…

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NOTE: Please scroll down to read the other topics in this long blog post on hybrid appraisals, waivers, unusual homes, mortgage origination stats, etc.

Posted in: adjustments, AMCs, appraisal waivers, george dell, hybrid appraisals, real estate market

Appraisers and The Psycho Kitty

By Ann O'Rourke on May 7, 2021 / Leave a comment

Favorite Crazy Appraisal Stories – The Psycho Kitty

Excerpt: Psycho Kitty

I had an appointment at a home in the country out in the woods. The access instructions said the cat MIGHT be caged. Got to the home and the cat was at the front door and hissed at me as I went in. I tried to make friends with the cat, but it didn’t work, so I ignored the cat and started my inspection.

As I came out of the first-floor master, he was waiting. He stood on his hind legs, teeth showing, hissing, and came at me. Once again, I used my clipboard and ran to the laundry room where I was able to shut the door. I was safe…

To read more strange and/or funny appraisal stories, click here

My comment: We all have appraisal stories, of course!! In my 45 years of appraising I have never been attacked by a cat. My creepiest cat encounter was appraising the home of a cat foster parent for a local animal shelter. Large outside cat enclosure full of cats, multiple cats on top of dressers and other places, looking at me (looked like they were hungry). I wish I could forget about all the cat eyes looking at me :<

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NOTE: Please scroll down to read the other topics in this long blog post on psycho kitty, waivers, value vs. price, hot market, unusual homes, mortgage origination stats, etc.

Posted in: appraisal how to, appraisal waivers, humor, real estate market, state appraiser regulators, statistics, unusual home, waivers

Tags: appraisal how to, appraisal waivers, Fannie, humor, real estate market, state appraiser regulators, unusal homes

What’s Happening in Appraisal Now?

By Ann O'Rourke on April 30, 2021 / Leave a comment

The State of the Appraisal Industry

Jonathan Miller speaks about new appraisers and other topics

Video – 29 minutes

Miller is an excellent speaker and worth listening to. He discusses mostly getting new appraisers (first 15 minutes or so), after commercial break, discusses tips on non-lender work and other issues.

My comments: I don’t like the term “appraisal industry” and prefer “appraisal profession.” I am an “old-timer” of 45 years and have always thought of myself as being in a profession.

I have been reading Miller’s Housing Notes for a long time. Lots of graphs from his markets, and he often has fun, strange, and controversial comments on appraisal issues.

To subscribe to his posts, click here

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NOTE: Please scroll down to read the other topics in this long blog post on unusual homes, FHA and Fannie changes, crazy real estate market, mortgage origination stats, etc.

Posted in: Fannie, FHA, real estate market

Tags: Fannie, FHA, real estate market

The UAD and Appraisers – Past, Present, and Future

By Ann O'Rourke on April 23, 2021 / Leave a comment

The UAD and Appraisers – Past, Present, and Future

30 minute video

Speakers: Sean Murphy and Danny Wiley of Freddie Mac

Excerpt: They offer some insightful looks into the process and delve into the specifics that appraisers need to know.

What are some of the key updates for 2021? What can appraisers expect with these changes in the UAD? How will these changes impact the appraisal industry? These questions and much more will be answered between Sean, Danny, and Joan (moderator) as they dive into more about the UAD and Freddie Mac.

If it does not display, to watch the video, click here

My comments: Danny Wiley is an excellent speaker (starts after the first speaker). Worth listening to. Wiley is Freddie Mac’s Senior Director of valuation for Single-Family Credit Risk Management. Sean Murphy is the Credit Policy Risk Analytics Manager. Danny has been around for a long time, starting as a fee appraiser. He knows what is happening and what it means for you.>

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Do tandem bedrooms count as bedrooms in appraisals?

Posted in: appraisal business, bias, UAD, unusual homes

What are Pass through Bedrooms for Appraisals

By Ann O'Rourke on April 16, 2021 / Leave a comment

Pass-through Bedrooms

Excerpts: This may not be a major problem if the house has sufficient bedrooms to match what is typical and expected in the neighborhood. It can have a negative impact on the marketability of the home if this arrangement reduces the number of usable bedrooms from what is typical.

The floor plan layout of a home can have an impact on its market value: The impact on value is determined from market data and how buyers perceive it. Did the home sell for less because it has a different floor plan than what is typical and expected?

The cost to fix can vary: Depending on the current floor plan configuration and the location of the bedroom in relation to other rooms the cost can vary widely and this should be taken into consideration when comparing it to the value added by fixing the problem.

Written for home owners with a good discussion of cost to cure vs. value added.

To read more, click here

For more analysis by Ryan Lundquist (from 2016) of what I often see, click here The image above is from Ryan’s article.

My comments: I have had many discussions with real estate agents and home owners about this issue. The number of bedrooms in a house can be a significant factor in many markets. In my market most homes were built prior to 1940 and have modifications, such as additions, over time. The pass through bedrooms can seldom be fixed. I usually call them “dens”.

Does a Bedroom Need a Window for Appraisals?

Posted in: adjustments, appraisal business, appraisal how to, forecast, Mortgage applications, mortgage loan volume

Tags: adjustments, appraisal how to, forecast

Appraisal Waivers Almost 50% of Fannie/Freddie Loans

By Ann O'Rourke on April 9, 2021 / Leave a comment

An explosion of appraisal waivers. Is that good or bad?

By Ryan Lundquist

Excerpts: Appraisal waivers have really exploded in recent years – especially during the pandemic. But how many are there exactly? Let’s look at actual numbers to walk away with some perspective. These stats are from January 2021 from AEI.

47.4% of all Freddie Mac loans had a waiver
44.5% of all Fannie Mae loans had a waiver
Waivers are far more common during refinances
Only 10-12% of purchases had an appraisal waiver in January
Non cash-out refinances have the most waivers (67-69%)
The higher your loan-to-value, the lower your chance of a waiver
Waivers have seen a dramatic increase during the pandemic

2) Seeing numbers: What real estate professionals experience with appraisal waivers with their clients can really vary. For instance, if you work with FHA borrowers putting very little down, you probably don’t see many waivers, but if you work with conventional buyers putting 30-40% down, you’re going to see more. This is why seeing actual stats is so important.

Read more of Ryan’s comments, see graphs, plus over 25 appraiser comments: click here

To read the AEI report, click here

My comments: I wrote about this in the February issue of the monthly Appraisal Today. Also included is data on which states are doing the most, and least, alternative appraisals. I spent a lot of time trying to get any statistics from Fannie without success. I knew waivers were going way up, especially for purchases. AEI reports have the analysis

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Posted in: adjustments, appraisal business, appraisers, Mortgage applications, unusual homes, waivers

Tags: appraisal business, appraisal waivers, humor, real estate market

Fannie says appraisal “forms” are going away

By Ann O'Rourke on April 2, 2021 / Leave a comment

Fannie Mae is Not Developing New Appraisal Forms

By Dustin Harris

Excerpt: Some of my colleagues have asked me, “What will the new forms look like?” Again, and I know it is a bit nit-picky, but there are no new forms. Rather, the GSEs are developing a cloud-based electronic container that will be used to report our findings rather than filling out a form and sending it in. Weird, I know, but it has its positives.

Currently, an appraiser needs to determine the proper scope of work to know which form is best for the situation. If it is a condo, it is likely a 1073. Single family residence, a 1004 or 2055.

To read more, click here

My comments: Nothing much new, of course. I have been writing about Fannie Modernization in the monthly newsletter and this newsletter for a while. Last week’s weekly newsletter had a brief Fannie Update – mostly the new timeline to 2024.

I also hear that Fannie will require a lot more data with more time required to fill out the online “form.” I can’t wait until we don’t have to decide which form to use! Especially since some “reviewers” and AMCs don’t really understand this.

A good example is how Turbo Tax software works. Instead of looking at every part of your printed tax return, it only shows what is relevant. For example, if you are filing as a single person or married. A single person would not have to look at the single vs. married part of the return.

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Posted in: adjustments, george dell, state appraiser regulators

Tags: adjustments, Fannie, Fannie forms, state appraiser regulators

How to Fight Real Estate Agents’ Appraiser Blacklisting

By Ann O'Rourke on March 26, 2021 / Leave a comment

How to Fight Real Estate Agents’ Appraiser Blacklisting

Excerpts: When a real estate agent “blacklists” an appraiser, the result is often that the agent’s lender/AMC contacts will stop using the appraiser completely (at the agent’s request), or occasionally, the lender will continue to use the appraiser but not assign the appraiser any of the transactions that that particular agent works on. In the case of the latter, sometimes the appraiser will be assigned an order only to have it canceled later that day once the real estate agent sees the appraiser on the order and calls the lender or mortgage broker to complain. I’ve talked to appraisers who have this happen several times a year with the same agent…

Having an order canceled and reassigned is sometimes the first and only indication to the appraiser that something fishy is going on, but some appraisers who abruptly stop receiving work from a client often don’t have to look far to figure out why. While “blacklisting” is sometimes more discreet, some appraisers actually have the real estate agent call them and tell them explicitly that they are going to actively prevent the appraiser from ever working on one of their transactions.

To read more, click here

My comments: Lender blacklisting has been around for decades. I remember when the blacklists were shared among lenders. Some appraisers said it was good to be on the blacklist of the not-so-ethical lenders.

Savvy AMCs (and lenders) often just don’t give the appraiser any more work. Putting an appraiser on a blacklist can be a big issue.

Good article with practical tips from Richard Hagar and the author.

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NOTE: Please scroll down to read the other topics in this long blog post on unusual homes, Fannie Update, Bias, Humor, mortgage origination stats, etc.