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12-8-16 Newz .Beautiful libraries .Roundabouts .Sales contract amendment

By on December 8, 2016   /  Leave a comment

Beautiful and unusual places

What are the most popular links in these newsletters? Weird properties, very expensive homes, etc. Plus Appraiser goes to jail (not many of these today), Freddie and Fannie no-appraisal loans. LIA’s Claudia Says ads are also very popular. Sorry, USPAP, ASB, AQB, ASC etc. are not very popular but I put them in just to let you know what is happening, even if you don’t care much ;> Here are two:

10 of the Most Beautiful Libraries on Earth

Take a break and a look at these beautiful and unusual libraries!!

From all over the world, including the Chicago Public Library

Excerpt:

Chicago Public Library, by SOM

Chicago’s new Chinatown library branch has no sharp edges. The pebble-shaped building is wrapped in glass and marked by solar-shading fins that are meant to reduce heat and glare. The library’s curvy, three-sided shape is built around feng shui principles and designed to align with the avenues outside the building. Inside, the two-story structure is centered around a light-filled atrium.

No links for more info, but you can google the names.

https://www.wired.com/2016/09/settle-10-beautiful-libraries-earth

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Carmel, Indiana, America’s King of Roundabouts

Read more!! →

Posted in: FHA, Freddie, Mortgage applications, mortgage loan volume, unusual home, unusual homes, weird homes, weird properties
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12-1-16 Newz//Funny listing fotos, ADUs, Time to complete 1004

By on December 1, 2016   /  Leave a comment

Are Granny Flats Undervalued?

by Kathy Price-Robinson, The Appraisers Research Foundation

Excerpt:

Whether you call them granny flats, in-law units, or something else, residential accessory dwelling units (ADUs) on residential properties excite municipal planners, homeowners, and others for social and environmental reasons. They are “green” by nature because of their small size and can provide great benefits to the owner.

But they can also perplex appraisers and other real estate professionals because of erroneous perceptions and various institutional policies that complicate lending on properties featuring ADUs.

To help clarify the estimation of value of residential properties with accessory units, researchers Martin J. Brown and Taylor Watkins conducted a study to test an income-based approach to valuation of properties with ADUs.

http://www.workingre.com/granny-flats-undervalued/

My comment: I appraise these types of units often in my city. Typically they are not legal. I consider them similar to detached bonus rooms, offices, guest quarters. If legal, the income approach would work to determine the added value of the ADU. Of course, income from airbnb, etc. vs. “regular” rentals is another big issue. The article does not address non-legal ADUs, the vast majority of them. FYI, The Appraisers Research Foundation has been around for a long time and regularly publishes (and gives grants for) research papers. For more info, go to http://www.appraiserresearch.org/ To see their other research, click on Research Results in the top menu bar.

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Poll: On average, how long does it take you to complete a 1004 interior inspection appraisal report, including inspection and drive time?

Read more!! →

Posted in: appraisal, Fannie, forecast, Freddoe, lender appraisals, Mortgage applications, mortgage loan volume, unusual homes
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12-1-16 How long does it take you to complete a 1004 report?

By on November 30, 2016   /  2 Comments

Poll: On average, how long does it take you to complete a 1004 interior inspection appraisal report, including inspection and drive time? www.appraisalport.com survey. This week’s poll is C/R fees in your area. Maybe future pools did will ask about typical AMC fees or how long it took pre-HVCC.

12-1-16-poll-on-time-to-complete-appraisal

My comments: For many appraisers, driving time is long. Two years ago I started working almost exclusively in my small town. Driving time is very low. However, I very seldom appraise tract homes. My appraisal reports are very similar to pre-HVCC. I average about 5 hours per appraisal.

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11-24-16 Newz// Thanksgiving and USPAP

By on November 23, 2016   /  Leave a comment
NO WORKING ON THANKSGIVING!!
USPAP VIOLATION!!
THE APPRAISAL POLICE ARE WATCHING YOU!!!

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Thanksgiving – What are you giving thanks for?

Instead of writing about what is good about appraising, this year I write about looking at your personal life, which is much more important.

When you sit down at the Thanksgiving dinner table with your family and friends (or dining alone or with your pets) what do you say you are grateful for? Take a few minutes now to think about what you will say. I know that I have almost always just said something that was sorta lame because I did not think about it ahead of time.

What am I thankful for this year? Good health. I always say that the richest person in the world would give everything they owned for good health. My health is better today than it was 20 years ago, in my 50s. I lost 40 pounds, workout every day, and walk with a friend. One of my brothers died in June at the age of 65 (liver failure due to hepatitis C). There will be an empty plate at the Thanksgiving dinner table. I am grateful every day that I am alive.

If you are a Baby Boomer, please get tested for Hepatitis C. There is a cure now.
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11-17-16 Newz// Modernizing appraisals, Wacky kitchens, Drones

By on November 17, 2016   /  Leave a comment

Modernizing Appraisals: A Regulatory Review and the Future of the Industry

I watched this very interesting live 2-hour session Wednesday, November 16, 2016 – Subcommittee on Housing and Insurance (Committee on Financial Services) Hearing.

I usually check email, etc. when listening to something like this. Not this time. I tried doing one email and lost a few comments. I feverishly scribbled 16 pages of notes.

Here are a few tidbits:

  • Very large room with speakers (and some other people in the back) and the Congress members on the other side. Empty seats in the middle.
  • The Usual Representation: Appraisal Institute, ASC, AF, NAHB, a group helping people with foreclosures, and Joan Trice. Each with their own agenda except for Joan Trice, the author of the (in) famous appraisal regulatory graphic that I put in last week’s newsletter.
  • The Big Issue – appraiser shortage affecting consumers – takes longer to close – FHA switch to certified, low fees, long training, lenders not allowing trainees to sign, etc.
  • Lots of anti-AVM comments from congress persons mostly Federal vs. state regulations. Too many appraiser regulators.
  • Each group had an agenda from its organization, of course, except Joan Trice.
  • Big shortage of appraisers in rural areas. Congress person said there were no appraisers available in his county with a population of 25,000 to 35,000.
  • No mention of Trump’s plan to dump Dodd-Frank. Way too uncertain and controversial, I guess. No questions from the other people in the room.

I will write up my full report and analysis in the December issue of Appraisal Today, including a few humorous quips, which are buried in my notes somewhere. The Big Gorilla, Fannie Mae and its CU, was not speaking to answer the AVM and data questions

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Would You Cook in One of These Wacky Kitchens?

Take a break and check out these weird kitchens, including links for more info. FYI, the Flintstone house was listed but never sold and is not on Airbnb. Spend a night there!!

http://blog.rismedia.com/2016/would-you-cook-in-one-of-these-wacky-kitchens

Read more!! →

Posted in: appraiser shortage, Freddie, weird homes, zillow
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11-10-16 Newz// CFPB and Dodd Frank Going Down?, Zillow, Man caves

By on November 10, 2016   /  Leave a comment

How Man Caves Took Over America’s Basements

Excerpts:

A man cave usually develops in spare rooms, such as bedrooms, offices, finished basements, or recreation rooms. The garage, another traditionally masculine space, is more often a workshop or place to make repairs. Its connotation with work (often frustrating and unsavory as any viewer of Home Improvement can attest) as well as its thermal issues (it’s rarely cooled or heated like the rest of the house) demarcate it from the man cave, an interior space.

While men have always had their sacred spaces in the home such as the garage or study, the domesticity of the 19th and early 20th century overall implied that the home was, of course, the woman’s place. In the previous centuries, men sought refuge outside the home in establishments such as gentlemen’s clubs (think more country club than strip club), and male-only social clubs and establishments such as the Freemasons.

Very interesting, especially the history!!

http://www.atlasobscura.com/articles/how-the-man-cave-took-over-americas-basements

My comment: I live in California, where there are few basements. I do see garage “man caves”. But, they are not as fixed up as basements, mostly with a tv, beer fridge and some tools. Sometimes I see bedrooms set up as computer rooms.

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Collection and Verification of Residential Data in the Sales Comparison Approach APB Valuation Advisory #8

Voluntary Guidance on Recognized Valuation Methods and Techniques:

My comments: This is advisory and not part of USPAP. Finally the Appraisal Practices Board has 48 pages of practical advice for practicing residential appraisers, the vast majority of appraisers. It discusses what different types of clients want, such as Fannie, VA, Rels, relocation, data, data collection, CU, etc. Scope of work examples are included. The last 17 pages are about verification. Worth reading.

https://www.appraisalfoundation.org/imis/docs/Valuation-Advisory-8-Collection-and-Verification-of-Residential-Sales-101716.pdf

Read more!! →

Posted in: adjustments, appraiser shortage, data, Mortgage applications, mortgage loan volume, weird homes, zillow
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11-3-16 Newz: Freddie-lower appraisal requirements, Do you like appraising?, Wells Fargo overcharges on appraisals

By on November 3, 2016   /  1 Comment

2016’s Best Small Cities in America

Excerpt:

Small-city dwellers enjoy tighter networks, shorter commutes and an abundance of land, just to name a few advantages. Granted, there are tradeoffs such as perhaps fewer restaurant options or shorter business hours. But one of the best perks of living in a city with a relatively smaller population is cheaper cost of living – generally speaking, that is. According to the Economic Policy Institute, a two-parent, two-child family would need to earn $49,114 a year “to secure an adequate but modest living standard” in Morristown, Tenn., compared with $106,493 in Washington.

So which small cities outshine the rest? WalletHub’s analysts compared 1,268 cities with populations between 25,000 and 100,000 based on 30 key indicators of livability. They range from “housing costs” to “school-system quality” to “number of restaurants per capita.” Continue reading below for the winners of the top spots, expert commentary and a full description of our methodology.

https://wallethub.com/edu/best-worst-small-cities-to-live-in/16581/

My comment: Check your city – mine was listed!! But, did not rate high on cost of living with a median home price of around $800,000… But, you can see the mayor at the grocery store to complain about potholes ;>

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Wells Fargo agrees to $50 million settlement over homeowner appraisal fees

Excerpt:

Wells Fargo & Co (WFC.N) has agreed to pay $50 million to settle a racketeering lawsuit accusing it of overcharging hundreds of thousands of homeowners for appraisals ordered after they defaulted on their mortgage loans.

The proposed settlement, which requires court approval, was disclosed in a filing on Friday in an Oakland, California federal court. If approved, it will resolve nationwide claims that Wells Fargo charged much more than it paid for third-party appraisals, exploiting borrowers who could least afford it and driving them further into default.

http://www.reuters.com/article/us-wellsfargo-settlement-idUSKBN12V27F

Read more!! →

Posted in: appraisal business, Appraisal fees, Collateral Underwriter, Fannie, fees, Freddie, future, Mortgage applications, mortgage loan volume, UAD, weird properties
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Do you like appraising?

By on November 2, 2016   /  Leave a comment
Poll: Overall with all factors considered, do you like your job as a Real Estate Appraiser?
Thanks to www.appraisalport.com and Steve Costello for these great polls!!
Results, if you can’t read the graph above:
Yes           71%
No            18 %
Not sure   11%

My comment: I have been appraising for over 40 years and still love my profession (I don’t think of it as a job), but… The Rule of Self Employment: Appraising (or whatever you do) would be great except for those darn clients!! (If they give me any hassles, I kick them off my Approved Client List)

Many of us would like to get emailed appraisal orders with a good fee, a check in the mail before we start, a convenient appointment time (for us), we tell them the turn time, and we email the appraisal back. No questions later, of course ;>
Posted in: appraisal business
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10-27-16 Newz//Red lining maps, Fannie-no appraisals needed, Garage conversions

By on October 27, 2016   /  Leave a comment

The Coolest Empty Buildings in America

They’re weird, amazing, and available.

Excerpt:

If you’ve got a few million bucks to play with, you’ll find that the country is littered with remarkable empty structures in various states of disrepair, just waiting for enterprising new owners with big dreams and deep pockets. Here are five of our current faves.

Here are a few:

Miami Marine Stadium: Miami, Florida

“Superman Building”: Providence, Rhode Island

Michigan Central Station: Detroit, Michigan

www.citylab.com/design/2016/10/the-coolest-empty-buildings-in-america/499049/

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Fannie’s Property Inspection Waiver (no appraisal) effective 12/10/16 for all lenders

Notice dated 10/24/16. I suspected that this was where Fannie was going with UAD and CU. Refis only.. for now. $75 to waive the appraisal requirement. Fannie has been testing it for awhile with some lenders. You may see this referred to as “Day 1 Certainty”, the name Fannie has chosen.

Link to the 2 page fact sheet: https://www.fanniemae.com/content/fact_sheet/property-inspection-waiver-fact-sheet.pdf

Thanks to Dave Towne for this very interesting news!

My comment: I will have an article on this topic for my November newsletter, out November 1, including relevant details and what this means for you. Very interesting.

WHAT DO YOU THINK? POST YOUR COMMENTS AT www.appraisaltodayblog.com !!

Read more!! →

Posted in: appraisal business, Collateral Underwriter, Fannie, Mortgage applications, mortgage loan volume, UAD
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Fannie’s Property Inspection Waiver (no appraisal) effective 12/10/16 for all lenders

By on October 26, 2016   /  18 Comments

Notice dated 10/24/16. I suspected that this was where Fannie was going with UAD and CU.

Refis only.. for now. $75 to waive the appraisal requirement.

Fannie has been testing it for quite awhile with some lenders. You may see this referred to as “Day 1 Certainty”, the name Fannie has chosen. They are also waiving reps and warranties (buy backs) so it will be very popular.

Thanks to Dave Towne for this very interesting news!

My comment: I will have an article n this topic for my November newsletter, out November 1, including what this means for you plus lots more details. I have read all the documents, going back to a newspaper article in as 2002. Very interesting.
Posted in: Collateral Underwriter, Uncategorized
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