What are the best AMCs for Appraisers?

Newz: AMCs,  Appraisal Institute Is Accused of Cover-ups, Appraisal’s Perfect Storm

May 9, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Can’t Complete Appraisal with Access Denied
  • Choosing the Right Appraisal Management Companies (AMCs): A Guide for Appraisers
  • Staggering $900K Glass Lake House in Oklahoma Surfs to the Top of the Most Popular Homes List
  • Wildly Inappropriate Behavior’: Appraisal Institute Is Accused of Cover-ups
  • 5-minute YouTube video, posted yesterday by Cindy Chance, former AI CEO regarding her lawsuit that was filed May 8
  • Appraisal Institute’s Harassment, Tests, and Dance with AMCs
  • #MeToo And Testing Fraud Applies To Appraisal Industry’s Largest Trade Group
  • Pulte defends his authority as board chairman of Fannie, Freddie
  • Upheaval at mortgage regulators leaves questions for lenders
  • The Appraisal Profession’s Perfect Storm: A Veteran’s Take on a Dying Craft
  • Mortgage applications increased 11.0 percent from one week earlier

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

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

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Choosing the Right Appraisal Management Companies (AMCs): A Guide for Appraisers

Excerpts: Today a large percentage of residential real estate valuations are coordinated by appraisal management companies. For appraisers, working with AMCs is almost a necessity.

Let’s look at how appraisal management companies work, the pros and cons, and—perhaps most importantly — how to choose the right AMCs to partner with.

Additionally, we’re sharing insights from appraisers who answered our survey question, “What’s your best tip for working with AMCs?”

How to choose the right AMCs

To prevent challenges and ensure smooth operations, it’s crucial to select the right AMCs. We recommend taking the time upfront to find a few good AMCs that value your appraisal expertise, then building relationships with that smaller group.

Use the following steps to choose the best AMC partners for your appraisal business.

Step 1: Find AMC candidates

Step 2: Investigate each appraisal management company

Step 3: Narrow your list to select the best AMC partners

Tips from Appraisers

  • Prioritize communication
  • Ensure timely delivery
  • Be friendly and polite
  • Get to know the AMCs and their practices
  • Don’t sell yourself short

To read more, Click Here

My comments: Good article on AMCs. Worth reading. Includes appraiser comments. I wrote about how to evaluate AMCS in the monthly Appraisal Today. The most recent article, including a Client Rating Grid, is in the January 2025 article: “What are your best current and former AMC/lender clients?”

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Staggering $900K Glass Lake House in Oklahoma Surfs to the Top of the Most Popular Homes List

Excerpts: 2 bedrooms, 2.5+ baths, 2,650 sq.ft., 5,227 sq.ft. lot

The three-story, contemporary lake house with a glass-encased first floor is on the market in Oklahoma for $899,900, offering a “one of a kind” opportunity to enjoy unrestricted views of the water—courtesy of its see-through design.

The kitchen is massive & the island is large enough to accommodate 8 barstools-the adjoining living space has a large additional space Upper level is cozy and private to enjoy tranquility of your surroundings and views for days! The upper level boasts the second kitchen with 5′ long workstation sink with Bertazzoni appliances including a 48” gas range. Kitchen opens to a living space with amazing views!

To read more and see photos in the listing, Click Here

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Wildly Inappropriate Behavior: Appraisal Institute Is Accused of Cover-ups

New York Times

By Debra Kamin

Debra Kamin interviewed more than 20 appraisers and former staff members of the Appraisal Institute, and obtained a confidential legal settlement, text messages, emails and internal reports about testing materials.

The Appraisal Institute faces concerns that one of its leaders has a history of harassing women and that it did not disclose that some certification exams were incorrectly scored.

Cindy Chance, left, a former chief executive of the Appraisal Institute, sued the trade group on Thursday, claiming sexual harassment and retaliation. Her suit follows that of Alissa Akins, …, who says she was fired after blowing the whistle on errors in the tests used to train and certify appraisers.

All the harassment accusations inside the Appraisal Institute are against one man — Craig Steinley, 64, a former president and the current vice president of the trade group, who denied the allegations.

“There is a culture of sexual harassment, cronyism and good old boys,” said Sandra Winter, 62, who first joined the board of the Appraisal Institute in 2012.

The Appraisal Institute and Mr. Steinley did not immediately respond to requests for comment on the lawsuit on Thursday.

My comments: I subscribe to the New York Times and read the entire article. I included short excerpts but cannot include a link. The “fair use” rule of copyright law allows me to use brief excerpts. The article below by Jonathan Miller has a “gift” link to the full article.

As I have said many times, I am a member because my MAI designation is very valuable. Also, I have an excellent AI local chapter which is definitely pro-residential.

I don’t have a positive opinion of the AI (Appraisal Institute), which was formed from the merger of the American Institute of Appraisal (AIREA) and the Society of Real Estate Appraisers (SREA). I belonged to both organizations. AIREA was primarily MAIs. In the past, most res appraisers were wives of the MAIs. SREA was primarily residential. After unification, MAIs took over. Less was done for res appraisers and many quit, giving up their SRA residential designations. I am a former President of the East Bay Chapter of SREA. I really liked SREA. This current mess makes it much harder for me to remain a dues paying member. AIREA was and AI is definitely run by the “Good Old Boys”.

I started appraising in 1975. At that time, residential was considered “inferior” to commercial. It continues today at the AI. Cyndi Chance was very pro-residential. She was fired. I got the message. Few women have been AIREA or AI presidents. I got the message. The current AI president is a woman, Paula K. Konikoff.

After AIREA and SREA merged into the AI I was active on a national committee for about 6 months. I did not care for how the organization was run. Quitting the Appraisal Foundation in the past was the first bad move. Firing Cyndi Chance. The Steinley mess above. I am not at all surprised that the issues were not handled well by the AI. As a member, I have not heard any explanations from the Executives or the Board of Directors.

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Link to a short, 5-minute YouTube video, posted yesterday by Cindy Chance, regarding her lawsuit that was filed yesterday against A.I. & Craig Steinley. To watch the video, Click Here

Per the video “This is my statement regarding the influence of REVVA, the AMC lobbying organization, on the Officers of the Appraisal Institute based on their behaviors leading up to my dismissal.”

My opinion: The video is about AI and AMCs. There are many different opinions on all these AI issues. I don’t think any members know about what really happened. The AI Board of Directors has never provided any explanations to members.

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Appraisal Institute’s Harassment, Tests, and Dance with AMCs

April 9, appraisersblogs.com

Excerpts: The Appraisal Institute’s latest chapter is a double dose of harassment woes — harassment allegations rocking its leadership and the systemic harassment of appraisers by AMCs, all under a scandalous spotlight.

AI’s President Paula Konikoff quickly countered with a promise of investigation, claiming the article doesn’t reflect their true colors, while vowing to battle Akins’ lawsuit and shrugging off the testing fiasco — because who needs accountability when a polished PR statement will do? Meanwhile, a petition on Change.org, launched by Alison Arms, demands Steinley’s removal from the executive board, citing the reputational and financial toll of his alleged actions — a clear signal that the rank-and-file have had enough of this unfolding drama.

I did not have time to do more excerpts.

To read the post and the lawsuit, Click Here

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#MeToo And Testing Fraud Applies To Appraisal Industry’s Largest Trade Group

By Jonathan Miller

Note: This article has a “gift” link to the original New York Times article above.

  • Appraisal Institute Is The Perfect Comp For NAR’s Bad Behavior
  • Former Appraisal Institute President Files Lawsuit Over Her Termination
  • Missing Ethics In The Appraisal Industry’s Largest Trade Organization

A while back, I wrote that the Appraisal Institute (AI) was the perfect comp for NAR’s bad behavior. Today’s blockbuster New York Times story Appraisal Trade Group Accused of Covering Up Sexual Harassment and Test Flaws (gift link), shows how right I was about the organization’s lack of ethics.

This was just illustrated by AI leadership in March with litigation over the cover-up of incorrect exam testing scores.

I’ve been writing about AI’s self-dealing for about eight years here on Housing Notes and have been personally threatened and smeared by those in the cult. I have painstakingly documented how AI ignores its residential membership, and how its leadership takes pointless first-class flights to Europe and China on the dime of the hard-working membership.

I should point out I am not a member but deeply care about the damage AI inflicts upon the industry I love. In addition to this new evidence of bad behavior, the industry’s largest trade group has fewer members than they claim (after removing all the non-paying deceased members) and seems to be quickly running out of money. An audit would confirm this, especially a forensic audit, but AI steadfastly refuses to permit anything other than a ‘sure, that’s the ticket!’ review of their financial dealings.

However, regarding the matter at hand, there are many female victims of unchecked behavior in their leadership. What a tragedy for the victims and the entire industry. Expect annual membership dues to rise sharply as membership falls more quickly. No disrespect meant to their hard-working membership, but does having an MAI or SRA designation tangibly mean anything now?

However, regarding the matter at hand, there are many female victims of unchecked behavior in their leadership. What a tragedy for the victims and the entire industry. Expect annual membership dues to rise sharply as membership falls more quickly. No disrespect meant to their hard-working membership, but does having an MAI or SRA designation tangibly mean anything now?

To read more, Click Here

This article has the link to the lawsuit. Search for Lawsuit, down the page.

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ABOVE IS A SAMPLE FROM THE 212 PAGE NEW URAR CLASS HAND OUT OF EXPLANATION OF THE QUESTION ON BROADBAND

Review of Appraiser’s Guide to the New URAR Class

In the May 2025 issue of Appraisal Today

Excerpts: This is my second article on New URAR. The April issue had the first article, New URAR, What It Means for Appraisers. The June issue will compare the new URAR with the current forms.

The 112 page PDF document “Appraiser’s Guide to the New URAR”

handout with 275 slides, provided only to attendees is a “must have” to learn about the New URAR. Mandated use is November 2, 2026.

Using a tablet, such as an ipad, is strongly recommended

Per the instructor only one third of residential appraisers are using a tablet or

other mobile device. I don’t think the New URAR app will work on a smartphone. Way too many fields to fill in.

The instructor recommended hiring a young trainee who can help you learn

it, if needed.

If you are not using a tablet, I recommend practicing now with your forms

vendor’s current app to get used to using a tablet. When your software vendor has the new app ready to be used, you will have practiced on a much smaller app for the current forms.

What will software vendors do?

Instructor said a lot depends on what each software vendor does. They will

have classes to teach you how to use their new Report software. I am not sure when they will have them ready.

Should you prepare for the class?

The 112 page PDF document “Appraiser’s Guide to the New URAR” is a good idea, if only skimming the topics. That is what I did before the class and it helped. The class material is almost overwhelming.

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Pulte defends his authority as board chairman of Fannie, Freddie

May 6, 2025

Excerpts: The FHFA head says the regulator is ‘essentially the board chair, the board itself, the stockholders’.

Bill Pulte, director of the Federal Housing Finance Agency (FHFA), had previously been tight-lipped about his reasoning for ousting 14 board members at Fannie Mae and Freddie Mac and installing himself as chairman of both boards on March 17, shortly after assuming office as chief regulator of the government-sponsored mortgage giants.

But during a Tuesday appearance on Fox Business, Pulte asserted that the FHFA has the authority to dictate board matters at Fannie and Freddie.

“We got rid of a bunch of different board members, and we basically are exerting the authority that the U.S. federal housing (agency) has and has always had,” Pulte said. “It’s always been essentially the board chair, the board itself, the stockholders. And really what we’re trying to do is run these things as businesses.”

To read more, Click Here

My comments: Who knows what will happen and, more important, how appraisers are affected.

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Upheaval at mortgage regulators leaves questions for lenders

Excerpts: A prominent mortgage industry attorney spoke with Scotsman Guide about ongoing turmoil at the CFPB, Fannie Mae, Freddie Mac and other regulators.

In its first months in office, the Trump administration aggressively made changes at all levels of the federal government, including to the mortgage and housing industry regulators. Bill Pulte, new Federal Housing Finance Agency (FHFA) director, fired most members of the Fannie Mae and Freddie Mac boards and then appointed himself as chair of both.

Russell Vought, Consumer Financial Protection Bureau (CFPB) acting director, was accused of trying to reduce the agency to “five men and a phone” amid a spate of firing. The Federal Housing Administration (FHA) jettisoned policies aimed at preventing appraisal bias and the U.S. Department of Housing and Urban Development (HUD) canceled fair housing grants.

To read more, Click Here

My comments: Who knows what will happen and, more important, how appraisers are affected. Of course, we all want to stop the alleged appraisal bias requiring us to take more bias classes, including a long section in the current USPAP class.

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The Appraisal Profession’s Perfect Storm: A Veteran’s Take on a Dying Craft

by Desiree Mehbod

May 2, 2025 Opinion Post.

Excerpts: The new UAD form, the AMC fee gouging, the waivers, the false bias claims – it’s a perfect storm of assaults.

I’ve been an appraiser since 1993, back when fax machines were cutting-edge and the internet was a clunky novelty. Over three decades, I’ve seen this profession weather storms — economic crashes, regulatory overhauls, you name it. But what’s happening now? It’s not a storm; it’s a tsunami. Our industry is hemorrhaging talent, drowning under false accusations, and getting squeezed by corporate greed and bureaucratic overreach.

As someone who’s stubbornly refused to bend the knee to Appraisal Management Companies (AMCs), I’m here to lay it all bare — the numbers, the betrayals, and the sneaky maneuvers threatening to bury us. Buckle up; this is an opinion piece from the front lines, and I’m not holding back.

The last few years have been a masterclass in how to alienate an entire profession. Take the Biden administration’s push, amplified by legacy media, to paint appraisers as racists. The National Fair Housing Alliance (NFHA), flush with millions in federal cash, ran misleading ads that vilified us, sowing mistrust without a shred of courtroom-proof guilt. Not one appraiser has been convicted of bias, yet the accusations flew. Some, like Shane Lanham, are hitting back with defamation lawsuits, but the damage is done.

Then there’s the AMC racket, a parasitic middleman scheme that’s not only bled appraisers dry but also siphoned a staggering $12 billion from homebuyers, as the Appraisal Regulation Compliance Council (ARCC) uncovered. I’ve written about their lack of fee transparency — a polite way of saying they’re skimming our earnings while appraisers scrape by.

I’m still here, though, because I believe in the craft. There’s something noble about walking a property, piecing together its story, and delivering a number you can stand behind. But the powers that be seem hell-bent on making that impossible. The NFHA’s funding may have dried up under Trump, but the scars remain.

The push for automation and deregulation isn’t slowing down. And those AMCs? They’re still laughing all the way to the bank. If we don’t start valuing appraisers — our expertise, our objectivity, our grit — this profession won’t just shrink; it’ll vanish. And when it does, don’t be surprised when the housing market feels the full force of this perfect storm.

To read more plus over 80 appraiser comments so far, Click Here

My comments: Worth reading from a knowledgeable appraiser. The author is the founder of Appraisersblogs.com. I frequently post links to their blog. I like their very creative images also!

I have seen a lot of changes in my 50 years of appraising. When I started my business in 1986 I did commercial and residential appraisals and non-lender appraisals. I did res lender appraisals for 20 years and quit in 2005 (too much volatility in business volume). I had lender clients I liked who paid well. The only time I was questioned was when I forgot to put the value in and other typos. I was very lucky. I missed the chaos of 2008 – AMCs, fees, etc.

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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, Click Here.

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 go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: We are all waiting for rates to drop in 2025.

Mortgage applications increased 11.0 percent from one week earlier

WASHINGTON, D.C. (May 7, 2025) — Mortgage applications increased 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 2, 2025.

The Market Composite Index, a measure of mortgage loan application volume, increased 11.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 12 percent compared with the previous week. The Refinance Index increased 11 percent from the previous week and was 51 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 11 percent from one week earlier. The unadjusted Purchase Index increased 12 percent compared with the previous week and was 13 percent higher than the same week one year ago.

“The economic news last week included a negative reading for first-quarter GDP growth and further signs of contraction in the manufacturing sector, mixed with a solid employment report for April. The net impact on mortgage rates was mostly downward but just back to levels from early April. The 30-year fixed rate declined to 6.84 percent,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Conventional purchase application volume increased 13 percent and was up 9 percent from year-ago levels, a surprisingly strong move given lingering economic uncertainty. Borrowers of conventional loans tend to have larger loan sizes and more apt to be move-up buyers. Government purchase loans were also up 6 percent for the week, led by a 9 percent growth in FHA purchase applications.”

Added Fratantoni, “With rates moving lower, refinance volume increased 11 percent, led by VA refinance applications, which were up 26 percent.”

The refinance share of mortgage activity decreased to 37.1 percent of total applications from 37.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.3 percent of total applications.

The FHA share of total applications decreased to 16.4 percent from 16.7 percent the week prior. The VA share of total applications increased to 13.3 percent from 13.1 percent the week prior. The USDA share of total applications decreased to 0.5 percent from 0.6 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.84 percent from 6.89 percent, with points increasing to 0.68 from0.67 (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 $806,500)decreased to 6.86 percent from 6.88 percent, with points decreasing to 0.46 from 0.60 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.56 percent from 6.61 percent, with points increasing to 0.87 from 0.86 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 6.17 percent, with points decreasing to 0.65 from 0.76 (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 increased to 5.97 percent from 5.89 percent, with points decreasing to 0.31 from 0.63 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.

 

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

Online: www.appraisaltoday.com

Finding Comps with Few Sales for Appraisers

Newz: Pulling Comps in 2025, Appraiser Union? AMCs Overcharging Consumers

March 7, 2025

  • What’s in This Newsletter (In Order, Scroll Down)
  • LIA ad: Problem with An Affidavit
  • The struggle of pulling comps in 2025 By Ryan Lundquist
  • Op-Ed: Why An Appraiser Union Would Never Work By Dustin Harris
  • The Full Measure: February 2025 Housing Market Snapshot for Appraisers By Kevin Hecht
  • The Trump Administration’s Regulatory Overhaul: The Impact on CFPB, FHA, and the Housing Industry By Rob Chrisman
  • Homebuilders Warn of Rising Building Costs as Trump’s Tariffs on Canada and Mexico Take Effect By NAR
  • AMCs Overcharging Consumers? Morgan & Morgan Investigates
  • Mortgage applications decreased 1.2 percent from one week earlier

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

 

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The struggle of pulling comps in 2025

By Ryan Lundquist

Excerpts:

1) SALES TELL US ABOUT THE PAST

Comps aren’t easy today. The problem is there aren’t that many sales, so it’s not so simple to figure out value. Lately, I’ve been getting a ton of questions about this, so I wanted to share some things I’m doing on my end….

2) TWO OPTIONS TODAY

We have two choices for comps. Go back further in time in the immediate neighborhood, or go out further to competitive areas. Why not do both?…

3) HOW FAR AWAY CAN YOU GO FOR COMPS?

It’s not how far you can go, but where you should go. Read that again. This is true in any market. And where would buyers go for comps? That’s also a viable question. No matter where you’re getting comps, be sure they are a good substitution…

To read lots more plus see graphs and read appraiser comments, Click Here

My comments: Read This Article! Few sales are common in many areas. I prefer going back in time. I have been doing time adjustments since 1975, when prices were going up 5% per month in a semi-rural Northern California county. The GSEs seem to be making it way more complicated. I do them on every appraisal. If not needed, I always comment that the market is stable. It is the only adjustment I make on my non-lender appraisals, except for features that are unusual.

I have no idea why the GSEs complain that many appraisers are not doing them when needed. Maybe the appraisers never learned how? Many dollar adjustments are needed on the grid and can be much more difficult than time adjustments.

Read more!!

Appraisers: Advice On Staying Current

Newz: AMCs Fee Skimming Lawsuit, Appraising a Hobbit Hole

February 28, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Disclosing Identity of Complaining Party
  • On Staying Current By Timothy Andersen, MAI
  • Futuristic $177 Million Bel-Air Megamansion With Its Own Private Jazz Club Hits All the Right Notes
  • Appraising a Hobbit Hole: The Property Value of Bag End
  • AMCs Deceptive Fee Skimming Exposed in Lawsuit
  • The 10 Most Expensive Home Listings and Home Sales in the U.S.
  • February 21, 2025
  • Mortgage applications decreased 1.2 percent from one week earlier

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On Staying Current

By Timothy Andersen, MAI

Excerpts: In this monograph, we discuss the absolute necessity of developing more than one skill set as part of becoming a competent and professional real estate appraiser.

Real estate appraising is a complex practice that requires a diverse range of skills and knowledge, from understanding current market conditions to understanding and interpreting complex legal and financial documents. If you want to be your own boss, it also requires business acumen.

At its core, real estate appraising involves the due diligence necessary to form a credible opinion of the market value of a particular property. This requires a deep understanding of the appraiser’s local real estate market, as well as of the physical, legal, and economic factors that influence property values in it. However, becoming a successful real estate appraiser requires more than mere market knowledge.

It also requires a range of other skills, including the ability to conduct thorough research, analyze mountains of data, communicate persuasively and effectively with and to other professionals, and manage complex projects. These are all aspects of being an appraiser they do not teach us in appraisal school.

Most importantly, successful appraisers must adapt to changing market conditions and trends. Currently there are so many of these ongoing, especially as the GSEs are about to inaugurate UAD-2 to replace their archaic appraisal reporting forms. This means continually learning and developing new skills to stay ahead of the curve.

To read more, Click Here

My comments: Good analysis of appraising. I have been appraising for 50 years and I still love it. I am easily bored, but every property is different and market conditions change regularly where I work. I am always learning something new.

If this seems overwhelming to you or other post-licensing appraisers, it is not your fault. Unfortunately, after licensing started many trainees hired other trainees. Almost all had poor training and classes. I was unable to refer wannabes to professional associations as they only wanted classes for members, not for new appraiser. Changing what you learned when you started is very difficult to do. I was very fortunate as I started before licensing and had very active local chapters of AIREA and SREA predecessors of the Appraisal Institute. The appraisers I met had lots of experience. They helped me whenever I had any questions. I learned how to lender appraisals plus many types of non-lender appraisals correctly from them.

Read more!!

The Sales Comparison Approach in Appraisals

Newz: Shadowy AMC Fees, State Board Complaints, Borrower Questions

January 24, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Borrower Wants Answers Appraiser Can’t Give
  • The Sales Comparison Approach: A Cornerstone of Real Estate Appraisal
  • Waterfront Home in Boca Raton, FL $25,000,000
  • Metrics – What Poetry and Data Analysis Have in Common
  • The Shadowy AMC Fees Draining Billions from Homebuyers
  • Why Report a State Board Investigation or Complaint?
  • Trump signs executive order to reduce housing costs, but will it work?
  • Mortgage applications increased 0.1 percent from one week earlier

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The Sales Comparison Approach: A Cornerstone of Real Estate Appraisal

By Kevin Hecht

Excerpts: For experienced real estate appraisers, the sales comparison approach is more than just a method — it is a reflection of their expertise and competency in the marketplace. By mastering this approach and staying informed about industry standards and technological advancements, appraisers can ensure that their work meets the highest standards of professionalism and accuracy.

Challenges and Best Practices

While the sales comparison approach is a powerful tool, it is not without challenges. Appraisers may encounter situations where there is a lack of recent sales data or where the subject property is unique. In such cases, appraisers must exercise judgment and creativity to develop credible results.

Some common challenges include:

Inadequate Market Data: In markets with limited sales activity, finding comparable properties can be difficult. Appraisers may need to expand their search geographically or consider older sales, making appropriate adjustments for time.

Dissimilar Comparables: When the subject property has unique features, it may be challenging to find truly comparable sales. Appraisers must carefully analyze and adjust for these differences.

Unsupported Adjustments: Adjustments must be based on market evidence. Unsupported or arbitrary adjustments can undermine the credibility of the appraisal.

To overcome these challenges, appraisers should:

  • Conduct thorough market research to identify the best available comparables.
  • Use both quantitative and qualitative analysis to support adjustments.
  • Document their reasoning and methodology clearly in the appraisal report.

To read more, Click Here

My comments: Good reminders of the Sales Comparison Approach.

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Waterfront Home in Boca Raton, FL $25,000,000

Excerpts: 12 bedrooms, 11 baths, 12,709 sq.ft., 0.53 Acres, Built in 2016

Direct Intracoastal Point Lot with 256 ft of Waterfrontage and .53 Acres. Built of John Ross/ ROSSCO Const, the beauty of the lot is that it is sited on an expansive Nautical turn of the Intracoastal so it captures the gorgeous long North views.

There are 2 staircases, one with Marble & tile work by a Canadian Artist and banister designed by a metal artist and the owner, the other is a tree staircase The best part is you do not have to climb down the stairs as there is a hand crafted wooden Dragon Slide from the second floor to the foyer. The central slide seen from the front door is artizanally made from oak by local artist. The observation deck (covered) offers stunning views of the Intracoastal, and it includes another outside shower, and solar panels.

In the middle there is a 20 sitting Norse carved table with Helga and Magnus dragons protecting it. There are tile murals, stained glass windows and ceiling paintings all over the house, also thematic. The kitchen is dedicated to the Elements of Air and a story of its power is depicted on its ceiling.

To see the listing and 209 Photos, Click Here

My comments: Thanks to Joe Lynch for this listing with very colorful exterior and interiors!

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Q4 2024 Fannie Appraiser Update

Newz: Q4 Fannie Appraiser Update, 2025 Mortgage Rates Forecasts Are Now Wrong

December 27, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Disclosing Identity of Complaining Party
  • Q4 2024 Fannie Mae Appraiser Update
  • Dramatic Concrete-and-Glass Santa Monica CA Masterpiece Designed by Famed Architect Ray Kappe Lists for $4 Million
  • Is Ethics a Spiritual Principle By George Dell, SRA, MAI, ASA, CRE
  • All those 2025 mortgage rates forecasts are now wrong
  • The New Con: Hybrids, Waivers & AMCs Threaten Public Trust
  • MBA: No data released until January 2, 2025

CHANGE THE YEAR ON YOUR TEMPLATES NOW TO 2025!
DON’T WAIT UNTIL AFTER 1/1/25!

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Mortgage forecast – loans predicted to drop 30% in 2014

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Appraiser Humor

Newz: Appraiser Humor, Data Cancer In Comps,
AMC Panel “Requirements”

December 20, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: AMC Panel “Requirements”
  • 12 Days of Appraiser Christmas
  • Santa’s House returns to Zillow with new ‘Let Santa Know You Moved’ feature
  • The Town Where Santa’s Sleigh Is a Surf Boat in Mooloolaba Australia
  • You Are Not a Business Owner!
  • Data Cancer In Your Comps

  • Mortgage applications decreased 0.7 percent from one week earlier

 

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12 Days of Appraiser Christmas

NOTE on video: Click on image and it opens in Youtube.

Very funny!! 3.5 minute video

Here are two of the days: 8 mega mansions, 5 REOs

Many thanks to Gary F. Kristensen, SRA, ASA, AGA at A Quality Appraisals in Portland, Oregon.

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Market Trends and Market Conditions Adjustments Appraisals

Newz: GSE New Market Conditions Policy, State Board Complaints, Waivers

December 6, 2024

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad – Navigating Value Revisions in Appraisals
  • Market Trends and Market Conditions Adjustments.
  • A Ferrari Inspired Masterpiece With 20K square Feet of Luxury Resort Amenities Listed at 55 Million in Delray Beach FL
  • November 2024 Real Estate Market Update By Kevin Hecht
  • 5 Tips to Handle Appraisal Board Complaints
  • Correcting the Record: Accurate Group’s Commitment to Compliance and Industry Excellence
  • FHFA’s Massive Expansion of Appraisal Waivers: What It Really Means
  • Mortgage applications increased 2.8 percent from one week earlier

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Market Trends and Market Conditions Adjustments

Working through the new Market Conditions policy and advisory from Fannie Mae

By Ken Dicks

Excerpts: Did Fannie Mae just throw a wrench into how residential appraisal reports for mortgage transactions are completed with their recent announcement on Market Conditions?

As an appraiser, it is highly likely at some point you will see the following or a similar request soon after your appraisal is submitted to your client, or even months after your appraisal is accepted by your client: Please provide support for your market conditions adjustment conclusions.

Appraisal Quality Control and Appraisal Quality Assurance create a revision request minefield filled with Lender and Investor tailored appraisal reporting requirements and preferences. Review of the appraisal reports is required by the lender or whoever the lender chooses to delegate this requirement to (i.e. Appraisal Desk, AMC, etc.).

As a practicing appraiser, the announcement and accompanying exhibit prompted a series of questions in my mind.

  • Does Fannie Mae want to see this specific graph in all appraisals?
  • What does USPAP say?
  • What level of data and analysis does an appraiser need to present when providing support for market conditions adjustments?

The following is where I have arrived at developing answers:…

To read more, Click Here

My comments: Worth reading the full article, plus the appraiser comments.

I am so glad I have not done any GSE appraisals since 2008! I don’t care what the GSEs say. I comply with USPAP. Of course, I always make market adjustments on my residential appraisals or explain why no adjustments was needed. It is the only dollar adjustment I make on non-lender forms unless the subject has an unusual feature requiring research and analysis.

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Appraising Kitchens

Newz: FHFA Waiver Expansion, AMC Appraisal Fees, Appraising Kitchens

November 1, 2024

What’s in This Newsletter (In Order, Scroll Down)

  • Construction Progress Inspection Reports: Claims Involving ADUs and Remodels
  • Appraising Kitchens: Understanding Trends, Functionality, and Market Expectations
  • Lake Tahoe Ranch Hits the Market for $188 Million, Making It One of the Priciest Listings in the U.S.
  • FHFA’s Appraisal Waivers Expansion
  • The Great Debate on Appraisal Fees
  • Updated UAD redesign timeline with specific implementation dates
  • Mortgage applications decreased 0.1 percent from one week earlier

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Appraising Kitchens: Understanding Trends, Functionality, and Market Expectations

Excerpts: When it comes to real estate appraising, kitchens often play a pivotal role in determining a home’s value. A well-appointed kitchen can significantly enhance a property’s appeal and marketability. As an appraiser, understanding the nuances of kitchens is essential to providing credible and insightful valuations. Let’s dive into appraising kitchens and how the room impacts market value.

Functional Obsolescence and Price Point

If a back corner kitchen or a galley kitchen does not align with current market preferences for homes of a similar age, it might be considered outdated and impact marketability. However, this does not necessarily rise to the level of functional obsolescence that must be remedied. An outdated but functional kitchen might not be a major concern in lower price ranges.

Conversely, in high-end homes, buyers expect the latest designs, features and finishes; and therefore, an outdated kitchen may be considered as functional obsolescence.

Appeal & Functionality Count when Appraising Kitchens

In conclusion, appraising kitchens requires a thoughtful, balanced analysis of market trends, quality, and functionality. While it’s important to understand current design preferences, the value of a kitchen is ultimately determined by how well it meets the expectations of buyers in a particular market.

A homeowner may have invested heavily in a kitchen renovation, but it is the appraiser’s responsibility to carefully consider factors such as conformity, local market preferences, and house style and price range when valuing the subject property. Remember, ultimately a kitchen’s value lies in its ability to enhance the overall appeal and functionality of the home, not its initial cost or the cost of renovation.

To read more, Click Here

My comments: This is the best analysis I have read on kitchens. Worth reading. Kitchens are a very important factor when buying a home. What is popular changes over time. Of course, appraisers see all types of kitchens.

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Lake Tahoe Ranch Hits the Market for $188 Million, Making It One of the Priciest Listings in the U.S.

Excerpts: sprawling Lake Tahoe estate known as Shakespeare Ranch hit the market on Monday for $188 million.

Not only is that a price tag that makes it the most expensive property on the market in Nevada, it’s also one of the priciest in the entire U.S., bested only by a small handful of homes in Los Angeles and South Florida.

Named after the nearby Shakespeare Rock, a nearby outcropping that is said to resemble the playwright, the property spans 130 acres on the eastern shores of Lake Tahoe and includes a colossal selection of amenities, from multiple properties and a historic barn to its own rodeo ground and private pier.

The ranch dates to the late 1800s, and its multiple properties include a 4,980-square-foot lakefront home with a waterside cabana, an under-construction 7,713-square-foot architect-designed residence and a number of cabins.

he historic barn on the property was built in 1873 and is currently outfitted with a commercial kitchen, a game center and a wine room.

The property also has a pool house with an indoor pool and spa, a gym, lawns, gardens, an office suite, a staging kitchen for catering, two boat lifts, 14 buoys and a boat house.

To read more, Click Here

For video, photos, and more information and to see the listing, Click Here

My comments: I live within driving distance to Lake Tahoe and have been there many times. A beach with a dock and a boat house is a premium feature.

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Appraisers – Protect against Being Sued

Newz: Protect Against Being Sued, DOJ Sues Rocket Mortgage, Solidifi AMC and Appraiser, Scary Places

October 25, 2024

What’s in This Newsletter (In Order, Scroll Down)

  • Dealing with Unhappy Buyers as an Appraiser (LIA ad)
  • Protect Against Any Grounds for Suing an Appraiser with Defensible Reports
  • A Billionaire Built a Cliffside Version of Versailles. Now It’s Asking $108 Million
  • DOJ Sues Rocket Mortgage, Solidifi AMC and appraiser – Bias
  • Halloween: Paranormal/Haunted places where I live and How to find what is near you. You may be surprised!
  • Very funny Halloween appraiser cartoon
  • Ghosts Are Scary, but 95% of Americans Are More Afraid of Home Repairs (2024 Data)
  • How to Avoid Unexpectedly Buying a Haunted House—Because It Could Happen to You
  • 32 of the most haunted places in America
  • White House Ghost Stories
  • Mortgage applications decreased 6.7 percent from one week earlier
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  • Appraisal Business Tips 
    Humor for Appraisers


Protect Against Any Grounds for Suing an Appraiser with Defensible Reports

Excerpts: … appraisers can be sued for several reasons, including negligence, errors and oversight, failure to notice underlying issues, or even fraud. While lawsuits against appraisers can be serious, they are rare when compared to the number of complaints to the state appraisal boards, which are much more commonplace and can also have serious consequences.

Therefore, the best defense for a real estate appraiser against a lawsuit or an appraisal board complaint is an accurate, defensible appraisal report.

Topics include:

1. Why is it important to create a highly defensible appraisal report? Mel Black: Real estate appraisers need to be prepared when the bright spotlight comes shining down on their work. They need to be prepared for issues that arise in a board complaint or civil lawsuit…

2. To ensure their report is defensible, what should real estate appraisers focus on at the beginning of an assignment? MB: There are a number of things to consider at the beginning of an assignment. As an appraiser, you want to look at assignment selection. You want to look at your competency to handle the assignment. You want to make sure you are able to define the problem and create an appropriate scope of work.

3. Once you’ve accepted the assignment, what are some things to focus on when developing the appraisal?

4. While you’re developing the appraisal, how do you find the best comparable sales information to include to ensure it’s highly defensible?

5. How can you prepare your workfile or appraisal report for a question about adjustments for the differences between the comparable and the subject property?

To read lots more about all 8 suggestions, Click Here

My comments: Information in the blog post is from Mel Black, a Certified Residential Appraiser, licensed real estate broker, and a practicing attorney who provides regular counsel on compliance matters and other industry-related law for appraisers and brokerage services, about creating defensible appraisal reports and why they are necessary in fighting legal battles or against appraisal board complaints.

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FHA Appraisal ROV Q&As

Newz: FHA ROVs, Avoiding Court, ADUs and Sq.Ft.

October 18, 2024

What’s in This Newsletter (In Order, Scroll Down)

  • Avoiding Court: A Common Sentiment Among Appraisers By Claudia Gaglione, Esq.,
  • FHA Q&A on ROV Policy
  • One of America’s Biggest Homes Hits the Market for $195 Million
  • UAD/URAR Threat, Opportunity, Confusion, Part 2 By George Dell, MAI, SRA
  • Why didn’t the appraiser add the ADU in the square footage? By Ryan Lundquist
  • Choosing the Right Appraisal Management Companies (AMCs): A Guide for Appraisers
  • Mortgage applications decreased 17.0 percent from one week earlier
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    Appraisal Business Tips 

    Humor for Appraisers

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

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Q’s and A’s Now Available from Appraisal Review and ROV Industry Briefing Webinar

FHA INFO 2024-70

October 10, 2024

FHA Posts Appraisal Review and Reconsideration of Value Policy

Questions and Answers from Industry Briefing Webinar

Today, the Federal Housing Administration (FHA) posted a questions and answers document that addresses inquiries received from stakeholders regarding FHA’s Mortgagee Letter (ML) 2024-07, Appraisal Review and Reconsideration of Value (ROV), announced in FHA INFO 2024-24 on May 1, 2024.

To prepare mortgagees and other stakeholders for the implementation of the ROV policy, FHA hosted a live webinar on August 8, 2024. During this webinar, FHA subject matter experts briefed participants on the ROV policy and processes and addressed questions submitted prior to and during the webinar. Due to time constraints, not all questions were answered during the webinar; therefore, today’s FHA INFO includes a summary of the questions addressed during the webinar as well as those that were not.

Mortgagees are reminded that while the provisions outlined in ML 2024-07 may be implemented immediately, they must be implemented for FHA case numbers assigned on or after October 31, 2024, as announced in ML 2024-16. Additionally, the technology updates announced in FHA INFO 2024-43, will also be available in FHA Connection (FHAC) beginning October 31, 2024.

The questions and answers and recording of the ROV webinar are available for viewing on HUD’s Single Family Housing Archived Webinars web page.

To read the full Q&As (PDF), Click Here

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