11-29-18 Newz// Proposed $400k threshold for appraisals -The American Garage – a very strange room

By on November 29, 2018   /   AMCs, evaluations, FHA, marketing, mortgage loan volume, real estate market, Strange homes, unusual home, weird homes   /   2 Comments
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$400,000 Proposed bank threshold for appraisals to be replaced by evaluations

Below are links to the proposed rule, what others are saying, and where to send your comments on the proposed rule.
OCC Issues Notice of Proposed Rulemaking to Exempt Residential Real Estate Transactions of $400,000 or Less from Appraisal Requirements
Excerpts: Rather than requiring an appraisal, the proposal would require that residential real estate transactions exempted by the threshold obtain an evaluation consistent with safe and sound banking practices.

Read what the OCC says in their announcement – one page www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-123.html

Comments will be accepted for 60 days from publication in the Federal Register.

Instructions in the full Full 69-page proposed rulemaking. Download the above link and search for comments

The word “evaluation” is included many times in the document. Google evaluation to see what it says.

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FDIC, OCC, Fed propose raising appraisal threshold for first time since 1994. Good analysis of how many loans would be affected:

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Push to cut back on home appraisals sparks controversy
By Ken Harney, long time nationally syndicated real estate writer who regularly writes about appraisal issues

Excerpt: The Trump administration wants to eliminate professional appraisals on a large number of home-sale transactions – a move that critics say could push the country back toward the see-no-evil days of mortgage lending that preceded the housing crash.

Includes comments from appraisers Ryan Lundquist and Pat Turner plus Appraisal Institute.
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Link to Appraisal Institute letter
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Get rid of appraisers while nobody’s looking
By Ryan Lundquist

 

Excerpt: I’m guessing these “evaluators” will be real estate agents who do BPOs, employees at banks and data firms, and probably some appraisers who need the work at $75-$100 a pop.

Read it here, plus the appraiser comments, of course.
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My comments:
– FIRREA increased the deminimus from $200,000 (1989) to $250,000 in 1994, but appraisals were still done. Why? Fannie and Freddie’s investors wanted them. FHA, VA, etc did not adopt the deminimus.
– What is an ‘evaluation’ and who does them? Hopefully, someone will tell me what is an evaluation?
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Valuation by Comparison – Very good residential book

By on October 20, 2018   /   adjustments, FHA, forecast, mortgage loan volume, real estate market, unusual home   /   Leave a comment
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Buy This Book!! Valuation by Comparison, Second Edition by Mark Ratterman, MAI, SRA

I reviewed it in the July, 2018 issue of the paid Appraisal Today.

One of the best books I have ever read for residential appraisers. (There are only a few that I recommend.)

More info and how to purchase at:

Appraisal Adjustments Yes, No, Maybe(Opens in a new browser tab)

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

 

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

To read more of this long blog post with many topics, click Read More Below!

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6-7-18 Newz//Square footage. Novelty Architecture. Appraisal Fraud

By on June 7, 2018   /   adjustments, appraisal how to, appraisal waivers, evaluations, Fannie, FHA, Fraud, hybrid appraisals, mortgage loan volume, square footage, weird properties   /   Leave a comment
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It’s not all about square footage in real estate

By Ryan Lundquist

Excerpt:
Myth: Extra square footage is always worth more.
Factors:
1) Single story vs two story
2) 55+ Community
3) Layout
4) Dangerous to always adjust

Worth reading, plus appraiser comments at:

Goofy Buildings: Revisiting the Heyday of California’s ‘Crazy’ Novelty Architecture – Giant hats, portly pigs, and drive-thru donuts.

Just For Fun!!

Excerpts: In the 1930s, a British traveler in Southern California wondered if the local architects had gone a little nuts. It was either that or he had stumbled into a fantasy universe. There was something trippy about the roadside shops he saw along the way…

The unusual businesses he saw weren’t on some Hollywood backlot, but were California’s classic coterie of mimetic architecture-that is, buildings shaped like, well, anything but buildings. According to Cristina Carbone, a professor of art and architectural history at Bellarmine University in Louisville, Kentucky, the practice dates back to at least the Renaissance.

Fascinating!! Lots of photos and interesting comments at:

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4-26-18 Newz//Tristar Waivers Denied. Fannie Update. FHFA Paper on Value of AMCs Questioned

By on April 26, 2018   /   AMCs, appraisal business, Fannie, FHA, forecast, lender appraisals, Mortgage applications, mortgage loan volume, real estate market, weird properties   /   Leave a comment
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Technology or Human Logical Analysis? Who Wins?

By George Dell, MAI, SRA, ASA, CDEI
Excerpt: There is evidence that human judgment WINS – the appraiser opinion beats the AVM and other valuations based on technology. In fact, I have often heard that the qualified appraisal, based on the human logical analysis – is the “gold standard” for the industry. This appears to be true of client groups, and appears to be recognized in administrative law, our federal and state and “quasi-governmental” bodies such as Fannie Mae, Freddie Mac, and the Appraisal Foundation.

Even as we say this, the human model, the appraiser, continues to lose market share to other technologies and other “non-appraiser” value providers.

Worth reading at:

My comment: George Dell’s weekly blog posts are great, but short, as is appropriate for blogs. The May issue of the paid Appraisal Today newsletter will have a much longer article by George, “Will another profession replace appraisers?”

Uredd Rest Area (Ureddplassen)

Norway has built what may be the world’s most beautiful public toilet.

Just For Fun!!

Excerpt: Norway’s newest landmark is a place of absurd beauty. The redesigned rest area, situated along a section of the Norwegian Scenic Route, overlooks stunning views of the fjords and the open sea, and is a popular spot for visitors and locals to watch the northern lights in winter and the midnight sun in summer.

Now this picturesque place is quickly gaining a stranger kind of fame, for being home to what may be the most beautiful public toilet the world over.

Check out the Fantastic Photos and short description at:

My comment: Wow!! What do I use in the field? Fast food, bushes, etc. ;> Sometimes a crummy restroom or smelly portable toilet in a public park… Please hit reply of you know any other great public restrooms…

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12-14-17 Newz, Underground Digs, AirBnB values, FHA loan limits and PACE

By on December 14, 2017   /   adjustments, appraisal how to, FHA, real estate market, weird properties   /   Leave a comment
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Digging into our drive to tunnel, bore, and head underground.
Just For Fun!!
Excerpt: The deepest tunnelers among animals, crocodiles that can burrow 39 feet down, cannot compete with us at all. Humans have traveled, in the deepest mine in the world, almost 2.5 miles underground (to say nothing of our boreholes, which go nearly three times deeper). The longest and deepest traffic tunnel in the world, the Gotthard Base Tunnel, makes it possible to cross the Alps in 40 minutes or less. The world’s major cities are criss-crossed by tunnels carrying water, sewage, wires, and people. Montreal has an entire subterranean city for its residents to navigate in the cold winter.

My comment: Fascinating!! I have not appraised any properties with tunnels, but I have seen many (and traveled through some) over the years. Railroad and mass transit trains, abandoned tunnels to nowhere, underground parts of cities (mostly abandoned), old mining tunnels, etc. I have seen (and appraised) lots of basements though, some way below ground ;>

How much is Airbnb driving up home prices and rents

Excerpt: The researchers looked at rents and home prices in the 100 largest metro areas in the U.S. between 2012 and 2016. They found that a 10% increase in Airbnb listings leads to a 0.39% increase in rents and a 0.64% increase in house prices.

“That may sound minuscule, but between 2012 and 2016, rents rose by about 2.2% annually [on average in the 100 areas], so a 0.39% increase in that context isn’t very small at all,” says Dr. Edward Kung, an assistant professor of economics at the University of California Los Angeles and one of the study’s authors. The same is true for home prices, which rose by an average of about 4.8% annually in the 100 areas, he adds.

My comment:

Seems like Airbnb rentals are all over, such as my small city, not just in popular vacation spots. From an appraisal point of view, Airbnb rentals are tricky. More cities are regulating them. A lot more hassle than renting out an ADU for a year, for example. Tax issues for owners. To me, seems like it is business value rather than real estate value. Very confusing!!

Appraiserville from Jonathan Miller’s Housing Notes

Check out the topics below
– The Appraisal Industry Needs Better PR
No one knows what we do.
No one appreciates what we do.
– More on Tristar Bank in TN (you know, the one that shouldn’t be in the mortgage business)
– Loan origination graph 2006 to 2017
– The Next Appraisal Bombshell: Economic Growth Regulatory Reduction and Consumer Protection Act

Scroll down the page to Appraiserville, and maybe make a few stops along the way ;>

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10-12-17 Newz//FHA-Appraisers responsible for water quality reporting?, Hybrid appraisal survey

By on October 12, 2017   /   Collateral Underwriter, CU, data, evaluations, FHA, lender appraisals, Reviews, state appraiser regulators   /   Leave a comment
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New CU 4.2 makes it easier for lenders to change comp and subject data. MI companies can access CU

Excerpts: During the weekend of Dec. 9, we will implement Collateral Underwriter® (CU™) 4.2, (which includes) the ability to edit the subject and appraiser-provided comparable sales property characteristics. CU 4.2 will also provide mortgage insurers (MIs) with access to CU. Lenders will be able to give their MI risk partners access to appraisal-specific data by providing them the Doc File ID generated at the time of appraisal submission.

Comparable Sales Review Edit Feature
The ability to edit subject and appraiser-provided comparable sales property characteristics (currently available via the pencil icon in classic CU) will be added to the Comp Review page. Clicking on the pencil icon in the Edit column of the comparable sales review table will open the Edit Property Characteristic pop-up. If there are data errors or missing data elements, the edit feature can be used to modify the data elements and rerun the model with the revised data.
Click here to read the full release
My comment: Lenders have been able to change subject and comp data and now it will be easier? I didn’t know that they are able to change the data now. MI companies have access to CU? What about appraisers?

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4-13-17 Newz// Desktop Appraisals .Fannie Appraiser Update .Trump Dump Dodd-Frank Regs

By on April 13, 2017   /   AMCs, appraisal business, appraisal management company, Fannie, fees, FHA, Strange homes, Uncategorized, unusual home, unusual homes, weird homes   /   Leave a comment
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Sign up for Fannie’s new Appraiser Update and other appraisal-related news!

How do appraiser-related policy updates, technology changes, and industry trends affect your business? To stay on top of the latest Fannie Mae appraisal news and policies, check out the new Fannie Mae Appraiser Update, a newsletter providing periodic updates for residential appraisers serving Fannie Mae lender customers.  Sign up today to receive the newsletter and other appraisal-related updates.
My comment: I get all the Fannie announcements and have to scroll through them looking for anything relevant to appraisers for this email newsletter. Hopefully, Fannie’s appraiser info will be send frequently. The first newsletter is available.
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Ecological Plastic Bottle House

One family’s mission to exemplify sustainability took on a whole new life as a surprisingly beautiful home.
Excerpt: Alfredo Santa Cruz and his family built the bottle house out of trash and recyclables they collected. Aluminum cans, glass jars, CDs, cardboard cartons, and of course, plastic bottles were all used as construction materials. The house has multiple rooms, and even furniture constructed from all these items.
Scroll down the page to see bottle houses in Michigan, Canada, and Azerbaijan!!
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1-5-17 Newz .The Two Americas and Real Estate .McMansion Hell

By on January 5, 2017   /   AMCs, FHA, Mortgage applications, mortgage loan volume, weird homes, zillow   /   Leave a comment
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FHA handbook 4000.1 quarterly update

No Changes to policies but it is always best to have the latest version when trying to figure out what FHA wants and underwriter/reviewer hassles.
The Federal Housing Administration (FHA) published the quarterly update to its Single Family Housing Policy Handbook 4000.1 (SF Handbook). This update incorporates previously published Mortgagee Letters into both the online and portable document format (PDF) SF Handbook.
http://www.allregs.com/tpl/public/fha_freesite.aspx  for Single Family Housing Policy Handbook 4000.1 December Update
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McMansion Hell!!
 Lots of interesting stuff. Go to the link below and look at some of the pull down links in the upper left for lots more info!!
This link is for one of the many pages – McMansion in Bentonville County, Arkansas
Cannot be described. Lots of photos with sometimes snarky comments. Just gotta see it  ;>

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

By on December 8, 2016   /   FHA, Freddie, Mortgage applications, mortgage loan volume, unusual home, unusual homes, weird homes, weird properties   /   Leave a comment
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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

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Newz// Accessory Dwelling Units .FHA webinar .Analysis of FHA 4000.1 changes

By on October 13, 2016   /   adjustments, appraisal business, FHA, Mortgage applications, mortgage loan volume, weird properties   /   Leave a comment
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Why It’s Impossible to Know a Coastline’s True Length

Measuring around bodies of water is a mathematically impossible

Excerpt:

Imagine, for a moment, that you and your friend have been given a seemingly straightforward task: to measure the coastline of Puget Sound, in Washington State. Resources are tight, so you’ve got a yardstick, while your friend has a foot-long ruler. You each walk along, laying your measuring stick along the edge of the water, following the the ins and outs of the shore as best you can. When you’re finished, you compare notes-and you’re shocked. While you ended up with a respectable 3,000 miles, your friend and his foot-long got a way higher number, somewhere around 4,500 miles.

You guys aren’t crazy. You’re victims of the coastline paradox, a tricky mathematical principle that messes with cartographers, stymies government bureaus, and makes it impossible to know exactly how big our world truly is.

http://www.atlasobscura.com/articles/why-its-impossible-to-know-a-coastlines-true-length

My comment: Fascinating article!! Looking at the Big Picture. All appraisers take measurements. It seems so easy… most of the time…

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Webinar Title: NEW
FHA Appraisal Essentials – An In-Depth Look
Date/Time:
Pre-recorded: September 14, 2016 / Duration: 115 minutes
Registration Link:
Description:
This pre-recorded webinar provides an in-depth look at a variety of property appraisal topics such as: property acceptability criteria; minimum property requirements; property defects; appraiser responsibilities and requirements; and, much more. The webinar is targeted primarily to FHA roster appraisers, underwriters, processors, and other appropriate mortgagee staff involved with the appraisal review and mortgage approval process.
 
Special Instructions:
This webinar is now available 24/7 for viewing.

NOTE ON LINK: it looks like you are registering for the September live session. Just fill it out and a link to the webinar will appear.

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