Blog - Appraisal Today

Help for appraisers who have been kicked off the FHA Roster

By Ann O'Rourke on July 6, 2014 / 2 Comments

Help for appraisers who have been kicked off the FHA Roster

Awhile ago an appraiser who had been removed from the FHA Roster contacted me. Unfortunately, I didn’t have any advice at that time except to google and see if anything turned up. I told him that when I was on the old FHA panel in 1986-1988 I heard about appraisers who went to court to be put back on the panel. Since I was new to FHA then many of my appraisals were reviewed by the local FHA regional office, so I knew if I was doing them correctly. VA still has a policy of reviewing.

I don’t know if FHA regularly reviews its appraisers now. There are many, many more appraisers since the Roster was set up, open to all licensed appraisers. Only certified appraisers are eligible now.

This is much more important now, as FHA will be suspending or removing appraisers from their roster.

Fortunately, the National Appraiser Association
http://www.naappraisers.org contacted Ted Whitmer, a Texas MAI and attorney, who defends appraisers. On June 26, he filed an Amicus Curae brief for NAA in support of reversal of appraisers who had been removed from the panel. Link to the brief posted on the NAA web site: http://www.naappraisers.org/HUD-AMICUS-NAA-6-14.pdf

Here are some excerpts from the brief:

Our organization is (National Association of Fee Appraisers) concerned that The Department of Housing and Urban Development (HUD), by its own admission, was removing appraisers from their roster from 2001 until 2012 with no “due process whatsoever. HUD only started “due process” of removing its appraisers after appellant filed a lawsuit in Federal Court in 2012

By HUD’s own admission they failed to provide any “Due Process” to appellant from January 2010 until April 2012 when he was simply deleted from HUD’s approved list of appraisers in January 2010. The District Court omitted from its opinion an explanation for the lack of any “Due Process” provided to
appellant from January 2010 until April 2012. Depriving an appraiser of his FHA license can be devastating to his livelihood.

What do you think? Post your comments below!!

Posted in: appraisers, FHA, lender appraisals

Tags: appraisal, FHA

The First Appraisal – About 3,200 Years Ago

By Ann O'Rourke on July 1, 2014 / Leave a comment

Excerpt:
The practice of real estate appraisal began about 3,200 years ago. We learn this from the Book of Numbers, Chapters Thirteen and Fourteen.

God commanded Moses to commission one person from each of the twelve tribes, “to make a reconnaissance” of the Land of Canaan, now Israel.

Each person chosen was a leader within his tribe. His selection was based on sincerity of purpose, integrity, honesty, wisdom, judgment, and knowledge. Each leader was capable of guiding the course of this important assignment. A Leader is “one who goes first.” These appraiser were to “scout” and then to make a report.

The objective for this appraisal was to determine the highest and best used of the subject property, the Land of Canaan. It required that these twelve leaders, whom we will now call appraisers, go and inspect this land. They also had to meet the people who lived on the land and to provide demographic data. The appraisal report was to be delivered to Moses.

http://appraisersblogs.com/appraisal/the-first-appraisal-began-about-3200-years-ago/

My comment: This was originally published in 1987 in a Society of Real Estate Appraiser publication. I have published several articles on the history of appraising in my paid newsletter, most recently in October 2011. In Europe, valuers were used for property taxes – tax collectors and collectors. Many were surveyors, including in this country. In 1834, the first professional organization of surveyors was organized, the predessor to the Royal Institute of Chartered Surveyors was started in London. The first appraisal associations in the U.S. were started in the early 1930s.

Posted in: appraisers

Tags: appraisal

VA loans up and FHA loans down

By Ann O'Rourke on June 23, 2014 / Leave a comment

VA loans up and FHA loans down because FHA increased its mortgage insurance cost

Excerpts:

Of the 16.4 million active-duty service members and military veterans with mortgages, less than 12% have a loan guaranteed by the Department of Veterans Affairs.

A sharp increase in Federal Housing Administration mortgage insurance premiums is making the VA more competitive, according to Megan Booth, senior policy representative at the National Association of Realtors.

“There is not a Realtor alive today that thinks FHA is a better deal” for veterans, Booth said. “That is helping the VA grow and it will continue to help the VA grow.”

VA lenders originated a record 629,300 single-family loans in fiscal 2013, which ended Sept. 30. The agency endorsed 90,820 single-family loans in the fiscal second quarter, totaling $20.1 billion, down 10.5% from the prior quarter. FHA endorsements declined at twice that rate over the same period. Sixty-three percent of VA loans are going to homebuyers rather than for refinancing, according to agency officials.

…..

Meanwhile, lenders continue to complain that there is a shortage of VA-approved appraisers and underwriters, which slows processing times. …

But the VA is becoming more responsive. “VA is trying to get more appraisers and weeding out the bad ones,” Booth said at the conference.”

http://www.nationalmortgagenews.com/news/origination/underused-va-mortgage-program-makes-inroads-as-fha-costs-rise-1041954-1.html

If you can’t access the full article without registering, there is a summary at: http://realtormag.realtor.org/daily-news/2014/06/13/va-loans-gain-popularity-fha-costs-rise

The June 2014 issue of the paid Appraisal Today had an article on how to get on the VA panel. It is very different than applying for panels for AMCs, Lenders, or FHA. No AMCs, C&R fees, appraisers treated as professionals, etc. I spent a lot of time interviewing many appraisers and VA personnel to find out about reference letters, re-applying, etc.

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Posted in: appraisal, appraisers, FHA, va

Tags: appraisal, FHA, va

VA wants fee appraisers!!

By Ann O'Rourke on June 23, 2014 / 2 Comments

VA is A Most Excellent Appraisal Client!!

VA is one of the last lender clients that pays C/R fees with no bidding. Increasingly, even direct lenders are asking for bids, or just cutting appraisal fees.

What is most important to me is that, in direct contrast with most AMCs, VA considers its fee appraisers to be professionals.

You can apply for the VA panel without reading this article, but I have lots of “insider tips” that makes it much easier.

Applying for the VA panel is not like AMCs, other lender clients or FHA. There are specific requirements, such as three reference letters, two of them from appraisers.

There are lots of tips in this article such as:

– How long does it take to get on the panel?

– Sample phrases for reference letters (3 are required)

– Tips on getting on the panel

– Who does the reviews?

Published in the June 2014 issue of the paid Appraisal Today.

To read this article, and many more, subscribe to the paid Appraisal Today!!
Subscribers also get FREE 4 Special Reports and 18+ past issues of Appraisal Today!!

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Not sure about subscribing?

Try it out at $8.25 per month!

You can get a 100% refund, for any reason, at any time!!

Best price: Only $89 per year (credit card only)

$8.25 per month, $24.75 per quarter (credit card only), or $99 per year

To purchase the paid Appraisal Today newsletter

go to www.appraisaltoday.com

or call 800-839-0227, M,Tu, Wed Pacific time, from 8am to noon.

Posted in: Appraisal fees, appraisers, va

Tags: appraisal, appraisal fees, va

Second unit or accessory dwelling?

By Ann O'Rourke on June 23, 2014 / 1 Comment

Source: www.sacramentoappraisalblog.com – Ryan Lindquist
Note: Ryan’s blog postings are written for home owners in his area, but are often helpful for appraisers also.

Excerpts:

Is it a second unit or an accessory dwelling? How do you know the difference? If the post office gives the second structure an address, that makes it a second unit, right? Or if the dwellings are separately metered, it must mean there are two units. Let’s talk through some distinctions below, and then discuss a bit of a “monkey wrench” since there is an added subjective layer when making this call.

The Short Answer: A second unit and an accessory dwelling might look like the same thing to a casual observer, but what matters most in determining whether a structure is a second unit or accessory dwelling is what zoning allows and whether the market perceives the structure as a second unit or not. The post office might have a separate address for an accessory dwelling, but that does not make it a legal and legitimate second unit. The utility company might have two meters on site also, but even that does not mean there are two units. The key comes down to the property being legal as two units in the eyes of the city or county, recognized by the market as a second unit, and even how the dwelling contributes to value.

The Monkey Wrench: Part of determining whether something is an accessory dwelling or second unit comes down to its contributory value, and the appraiser is really going to have to give this some thought…

My comment: I’m working on an appraisal of a property that has two legal homes on one lot. The front house is 2 bedroom/1 bath 1,500 sq.ft. The rear house is 2 bedroom/1 bath 1,000 sq.ft. In my city, most detached units are small “cottages” behind much larger homes and are marketed as homes with an extra unit and as duplexes. Most sell as homes with a small rear unit. Of course, when I got to the property, I found out the rear unit was much larger than the typical rear cottage!! Our market is very, very strong with a shortage of inventory. Many buyers are priced out of the sfr market and are looking at properties with 2 units, but they want a unit with at least 3 bedrooms for owner occupancy. I am still trying to figure out how my subject fits into this market as the front unit lacks a third bedroom, but does have a small room that could be used as a child’s bedroom. I am interviewing lots of agents and going on the weekly open home caravan looking at listings. Fortunately, this is not for a lender so I can take extra time to figure it out!!

http://sacramentoappraisalblog.com/2014/06/17/is-it-a-second-unit-or-an-accessory-dwelling/

Posted in: appraisal, appraisers

Tags: appraisal

Very, very funny appraisal video!!

By Ann O'Rourke on June 8, 2014 / 1 Comment

I just kept smiling and laughing!! Definitely one of the best, if not The Best, and Most Original, humorous appraisal video I have ever seen!!

Videos by Gary F. Kristensen, A Quality Appraisal, www.aqualityappraisal.com

“Thrift Shop” parody called “Portland Appraiser Shop.” Lotsa comments!! What’s your favorite “Scene”? Mine is what he does with his comp printouts!!!!

Check out their other videos at their YouTube Channel

If you have a link you like, send it to me. You may see your name in this email sent to almost 14,000 appraisers!! Just hit the reply button.

This is an excerpt from my FREE appraiser email newsletters. To get the full newsletters, go to www.appraisaltoday.com and enter your email address in the left side of the Big Yellow Box!!

Posted in: appraisers, humor

Tags: appraisal, humor

How to use Google addresses in your appraisals!!

By Ann O'Rourke on June 3, 2014 / 3 Comments

How to use Google addresses in your appraisals!!

Google’s Street View is doing photos all over the world!!

I used to spend a lot of time doing preliminary research on an appraisal by looking up property data on public records. Now, I just google the address!! Google provides a front photo and the search often includes other services such as zillow and trulia that provide public records data.

Someone calls or emails you about an appraisal. Hopefully, you check out the property before you decide whether or not you want to do the appraisal and decide your fee. Just google the address!! You can do it in your car with your smart phone.

Do you ever get back to the office and notice that your comp photo doesn’t match the MLS photo or, more likely, you are not sure you are selecting the correct photo?
You sometimes can also zoom in on google photos to check the address of a property.

Living in a rural area? Keep a lookout for a Google car,motorcyle,bicycle,camel,?? They seem to be everywhere!!! Or, just check out your relatives’-friends’-ex’s-child hood homes. It is endless!!

Click here to see where Google is now, has been, and where it is going?
https://support.google.com/maps/answer/68384?hl=en

Posted in: appraisal, appraisers, Google

Tags: appraisal, Google

The Big Issue for Appraisal Fees – Consumers are paying more for appraisals if AMCs are used

By Ann O'Rourke on May 19, 2014 / 9 Comments

The Big Issue for Appraisal Fees (if you want to get higher fees) – Consumers are paying more for appraisals if AMCs are used

There is only one relevant consumer issue: they are paying more for appraisals since AMCs took over.

They just want to get their loan. Why would they care about the appraiser? Plus, much more complicated issues such as Dodd Frankenstein, AMCs, etc. etc. are very difficult to understand for consumers. Lenders don’t care. They just want to pass their regulatory audits and sell their loans to investors.

I have no idea why appraisers don’t promote this simple message.

You could change the pitch to all consumers in the U.S. : “Why have borrower’s appraisal fees gone up?” Nobody cares about what appraisers are paid, except appraisers and a few others. Everybody, including appraisers, does not want to pay for inflated appraisal costs.

But, for appraisers, AMCs are a much easier target. AMCs work for lenders and do what they want.

I have been hearing that a few direct local lenders have started changing their fees up and down depending on the market. I don’t know why they hardly ever changed their fees before.

FYI, before licensing and mortgage brokers, lenders managed their own appraisal departments but didn’t change fees much and there was no or little bidding (residential) – since the 1930’s, when lender regulators started requiring appraisals and American appraising took off.

———————————————-

What are customary fees?

I don’t know. AMCs have about 80% of the market. What is left for lender fees? VA (doesn’t change fees very often) and direct lenders are dropping fees.

What about non-lender fees? With borrowers paying lots more for appraisals, I keep increasing my fees to well over customary lender appraisal fees. They are still less than what borrowers are paying.

Posted in: appraisal, Appraisal fees, appraisers

Tags: appraisal, appraisal fees

Video – AMCs – fees, blacklists, etc.

By Ann O'Rourke on May 11, 2014 / Leave a comment

http://www.youtube.com/watch?v=QPQjJidp8b0

The topics include:
– Major restructuring of residential lender fees since HVCC
– AMC fees and how to make more money
– Consolidation and what it means for appraisers
– What is an AMC
– AMCs since 1969, when LSI started
Note: the fee discussions start at about 14 minutes

I have been writing about AMCs since 1992 in my paid Appraisal Today newsletter. My speaking style is much more informal than my writing style ;>

Phil Crawford, the host, is a certified general appraiser who has been appraising (residential and commercial) for over 15 years. He is a third generation appraiser. He has been doing interviews on a local Cincinnati real estate radio show for a few years. We are a good match!!

To see other radio shows, go to www.voiceofappraisal.com

———————————————————————–

My first interview was in April, on Fannie Mae’s exclusionary list. To listen to this interview, and listen to the other shows, go to www.voiceofappraisal.com and scroll down the page to the video “E3: The Fannie Mae List!!”

Topics included:
– Why Fannie is using UAD data
– Fannie and Big Data
– How appraisers get on the black list
– Which appraisers are getting on the black list
– The future of Fannie’s Big Data

Posted in: AMCs, Appraisal fees, appraisers, blacklist

Tags: AMC, appraisal, appraisal fees, blacklist

10 reasons why public records and the appraiser’s square footage can differ

By Ann O'Rourke on May 5, 2014 / 2 Comments

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10 reasons why public records and the appraiser’s square footage can differ

My comment: Too many AMCs think that the assessor’s office square footages are correct, and the appraisers don’t know how to measure. Unfortunately, some appraisers just “fudge” the measurements to fit the assessor’s records. Big Mistake!!

From Ryan Lundquist’s Sacramento appraisal blog at www.sacramentoappraisalblog.com

I love this blog!!

Here are 2 of the 10 reasons:

5. Permitted but not updated: Sometimes a homeowner will do an addition with a permit, but the Assessor’s office never updates the property’s profile.

8. Ceiling height: A ceiling has to be at least 7 ft tall, and have at least 50% of the ceiling at a height of 7 ft. Sometimes a converted attic won’t meet these requirements, so the appraiser cannot consider it as square footage. It might still add value, but it won’t be included in the living area.

Click here to go directly to this blog post

How accurate is the reported square footage from the tax records in your primary service area?(Opens in a new browser tab)

Top Ten Reasons Why It Is Great to be an Appraiser Humor(Opens in a new browser tab)

Posted in: appraisers, square footage

Tags: appraisal, square footage