Appraisal News and Business Tips

Strange homes

3-16-17 Newz: Appraiser indicted, Public records sqft, 3-D printed house

3D Map Shows America’s Most Expensive Housing Markets

Excerpt: Which U.S. housing market is the most expensive?
 It seems like the question should have a single, straightforward answer. But with varying definitions of what constitutes a housing market and with different ways of measuring home value, the question is not so clear cut.
Using data from Zillow, this 3D map shows the cost of housing by U.S. county. The height of each area represents the average price per square foot of its homes.
My comment: Fascinating graphic. Lots of counties well under $100 per sq.ft. My urban county: $477. Other CA rural counties under $150. Warning: Can Be Addictive ;> I love Microcosm graphics!!
————————————————————————-
Top 10 Affordable Small Towns Where You’d Actually Want to Live, 2017 Edition
Excerpt: But does this (small towns) mean you have to trade excitement for enervation? As the city-dwelling comedian Lenny Bruce once said, “I hate small towns, because once you’ve seen the cannon in the park, that’s it.” So we focused on life beyond the cannons-small towns offering up rich cultures and a surprising amount of fun side diversions.

Read more!!

3-9-17 Newz .Non-lender fees .Mortgage volume since 2013 .AMCs gone wild

Why are barns painted red and the White House white?

Just for fun!! Great short video plus good explanation.
Excerpts: there are some paint choices that never seem to come up for question. Ever wondered why barns are red? Why is the White House white? And is the Golden Gate Bridge supposed to be … gold, instead of a reddish-orange?
My comment:
Also discusses: Why are green rooms green? For musicians, this is where you ‘hang out’ waiting to play. I have never been in a green room painted green ;> Now I know where the name comes from ;>
Click here to watch the short video and read the info below
————————————————————————
Strip-Mall Totems: The Trees of Sprawl
Just for Fun ;>
Excerpt: These forgotten or overlooked trees engage with us on multiple levels, whether we notice or not; they’re full of stories. Many, obviously, were planted – planted to soften a massive hardscape, arrest fresh-bared soil, comply with municipal regulations. A few might be legacy trees from pre-sprawl farmland or prairie copses. Others colonize the sprawl-scape via a bird’s gut or a propitious breeze.
My comment: Strip mall trees will never be the same again for me ;> check out the photos and the comments.
——————————————————————
Valuation Management Group Co-hosts Webinar with Fannie Mae – Collateral Policy & Technology Guidance for Appraisers, March 29 2017
Fannie Mae is presenting a free webinar for residential real estate appraisers on Wednesday, March 29, 2017 at 11 am EST. This webinar will cover collateral policy, technology guidance for appraisers, and the latest information on Fannie Mae’s appraisal policies. Fannie Mae agreed to a second event due to maximum capacity and positive feedback and response to the previous co-hosted event.
Julie Jones, Fannie Mae Credit Risk Analyst will be the presenter, and Jeremy Staudenmaier, also a Fannie Mae Credit Risk Analyst who helped develop the information, will be participating and answering questions. The goal of the webinar is for appraisers to gain a better understanding of Fannie Mae’s mission, to dispel common appraisal myths, and to improve communication with appraisers.

To register,click here:

——————————————————–

What will you do when business really slows down? Start looking for non-lender work when everyone else does?  

It’s a lot easier to get non-lender work when business is strong. There is very little competition. Other appraisers assume/hope/etc. that it will always be busy and do nothing. Lending always goes up and down.
I have been writing about getting non-lender work in my paid newsletter since 1992. For example, I can tell you how to get your business in the top of google search listing at no cost and just a few minutes of time. Half my appraisal business comes from Internet searches.
The two most popular non-lender work for residential appraisers is estate/trust and divorce. Subscribers learn the pluses and minuses of these types of non-lender appraisals and many other types. I have not done any lender work since 2005 and regularly turn down work as I am too busy.
 
If my articles help you get one non-lender appraisal,
it is worth the subscription price!! 
$8.25 per month, $24.75 per quarter, $89 per year (Best Buy)  
or $99 per year or $169 for two years 
Subscribers get, FREE: past 18+ months of past newsletters 
plus 4 Special Reports, plus 2 Appraiser Marketing Books!!
To purchase the paid Appraisal Today newsletter   go to
www.appraisaltoday.com/products  or call 800-839-0227.
—————————————————————————–
How much are you charging for non-lender work?
You should base your non-lender appraisal fees on what local borrowers are paying for their mortgage appraisals. Call around and ask.DO NOT charge what lenders and AMCs pay you. 
I keep hearing about appraisers charging low lender/AMC fees. I have no idea why. If so, they should never complain about low fees again.
My non-lender appraisal fees keep going up and up as borrowers keep paying more and more, due to high demand from lenders. I am still below what they pay, so it seems like a “good deal” to non-lender clients.

I have been writing about non-lender work since 1992 in my paid Appraisal Today newsletter.

====================================
The ugly truth about appraisal fees
By Ryan Lundquist
Excerpt: The Issue: I was asked to appraise something challenging, so I quoted a fee that was higher than a standard fee in Sacramento but still reasonable for the job because the house was funky. Anyway, I was comfortable with the fee and it was accepted by the AMC (Appraisal Management Company) that the lender hired to manage the appraisal ordering process.
But then things got interesting because through the course of the transaction someone showed me an email from the loan officer where I learned the AMC was actually charging the buyer $345 higher than the fee I quoted. What the? That seemed excessive, but the real clincher for me was the email showed a chain of conversation with the AMC where they said I was the one who quoted the much higher fee. Not only was the AMC gouging the buyer in my opinion, but there was a blatant lie that I was the one dictating this fee that was 43% higher than the one I quoted.
Look, I’m not a complainer and I am a total optimist, but this is not okay on so many levels.
My comment: See above for non-lender fees. 
———————————————————————-
Slow Pay AMCs
 by Dave Towne
Excerpt: Through several of the ‘media sources’ I read recently, I’ve learned that “a particular AMC” based on the west coast has a slow pay reputation.
As so often happens with low echelon AMCs with few clients, when business slows down, their payment process becomes a Ponzi scheme. Ultimately they go out of business.
I currently have an outstanding report with that AMC, but the payment due date to me is March 7. So I’m respectfully withholding their name publicly from others, until and unless they don’t pay me on time.
Over past years I’ve written about how appraisers MUST keep close track of their submitted reports and payments due for them. Too many appraisers get busy and neglect to monitor their Accounts Payable for their business.
My comment: A good reminder of AMCs that are in trouble. Read Dave’s suggestions. I am very strict and have loss less than $2,000 in 30 years of fee appraising. It was my fault for poor client screening. I write about this topic regularly in my paid Appraisal Today newsletter, usually when business slows down.
Click here to read plus the many comments.
———————————————————–
AMC Fined for Removing Appraiser from Panel
By Isaac Peck, Editor
Excerpt: Many states also have AMC laws that have stringent requirements that AMCs must notify an appraiser when he or she is removed from an appraisal panel. Unfortunately, the lack of enforcement actions against AMCs for such violations has caused many appraisers to question whether such regulations have any effect at all.
However, in a precedent setting move, the Washington State Department of Licensing has recently become the first regulatory agency to fine an AMC for removing an appraiser from an appraiser panel without proper notification. In September 2015, the American Reporting Company (ARC) was sanctioned for “removing a real estate appraiser from [an] appraiser panel without proper notifications” and failing to “provide [a] real estate appraiser [the] opportunity to respond to removal from panel.”
Click here to read the full article for lots more info, plus the comments from appraisers.
———————————————————
Rules checking software gone wild!!
If the ‘story’ can be told using 3 comps, why are 4 or more really necessary?
By Dave Towne
Excerpt: Interesting report data from review of 1.5 million appraisals. A few of the stats:
– 4.72% of the appraisals Market Value is higher than the adjusted comp values. But real estate is not perfect, and sometimes it does make sense
– 12.10 % of the appraisals use comps from different Cities. And the concern is?
– 6.25% of the reports did not use 5 or more comps. And the concern is??
Be sure to read Dave’s full comments plus the comments at the end from other appraisers:

http://appraisersblogs.com/comps-rules-check-software 

—————————————————————–
Mortgage loan origination volume from 2013 to 2017
This graph has been in every issue of the paid Appraisal Today since 1992. I use the data from the MBA below. Business has been slowing down since the peak in 9/16.
——————————————————————–
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, go to www.mbaa.org 
Note: I publish a graph of this data (see above) every month in my paid Appraisal Today newsletter. For more information or get a FREE sample issue go to https://www.appraisaltoday.com/products.htm or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.
Mortgage applications increased 3.3 percent from one week earlier
WASHINGTON, D.C. (March 8, 2017) – Mortgage applications increased 3.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 3, 2017. The previous week’s results included an adjustment for the President’s Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 16 percent compared with the previous week. The Refinance Index increased 5 percent from the previous week to the highest level since December 2016. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 15 percent compared with the previous week and was 4 percent higher than the same week one year ago.

The refinance share of mortgage activity increased to 45.4 percent of total applications from 45.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.7 percent of total applications to the highest level since October 2014. The average loan size for purchase applications reached a survey high at $313,300.

The FHA share of total applications decreased to 11.8 percent from 12.3 percent the week prior. The VA share of total applications decreased to 11.6 percent from 11.7 percent the week prior. The USDA share of total applications remained unchanged at 0.9 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.36 percent from 4.30 percent, with points increasing to 0.44 from 0.38 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.27 percent from 4.23 percent, with points increasing to 0.26 from 0.25 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.18 percent from 4.07 percent, with points decreasing to 0.32 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.57 percent from 3.51 percent, with points remaining unchanged at 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 3.48 percent from 3.35 percent, with points decreasing to 0.20 from 0.29 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

2-23-17 Newz// Transportation failures, Polluted Cities, Appraisers Age

With Trump changes in the news, guess I need to put something in this email newsletter ;>


Big Banks Could Get Back in the Mortgage Market in a Big Way
Excerpt: For the past six years, there has been a quiet revolution in the mortgage market: Big banks like JPMorgan (NYSE: JPM), Bank of America (NYSE: BAC) and Citibank (NYSE: C) have moved out and nonbank lenders such as Quicken, loanDepot and Caliber Home Loans have moved in – in a big way.
The revolution went largely unchallenged, but that may be about to change if the Trump administration removes regulations on the big banks and stops sending bad loans back to the banks for repayment. Deregulation would open the door for big banks to move back in.
—————————————————————-
The Least Polluted U.S. Cities (and the Dirtiest)
Least polluted
1-Naples FL
2-Salem OR
10 – Salinas CA
Most polluted
1-Philadelphia PA
2-Los Angeles CA
10- Milwaukee WI
My comment: Worth reading. Very interesting results and a well written article!!
————————————————————-
5 Spectacular Transportation Failures

Read more!!

2-16-17 Newz .Land surveys in 1784 .Common appraisal errors

 Land Surveys in 1784 – Alexander Hamilton vs. Thomas Jefferson

Metes and bounds vs. Meridians

Excerpts:
In 1784, Thomas Jefferson and Alexander Hamilton squared off over the best way to divvy up newly American territory.
The two factions also had different ideas about how to divide the land. Jefferson and his allies wanted to use an innovative system of land division, which would use meridians and other abstract geographical reference points to measure out uniform parcels of land. Hamilton and his allies thought that would take too long. As long as settlers had been grabbing up land in America, they’d operated according to a principle of free settlement-essentially, first-come, first-serve. Hamilton wanted to divide up the land using the more traditional “metes and bounds” system, in which landmarks and other features of a piece of land are used to describe its borders.
The Public Land Survey System was created because, in the 1780s, the new United States of America needed money. The Revolutionary War had left the federal government with debts, and its leaders planned to raise funds by selling off land where American colonists had yet to settle.
My comment: Fascinating!! We all study how our country is divided geographically in our basic appraisal classes. George Washington was also a land surveyor. Surveyors were the predecessors to appraisers. RICS (Royal Institute of Chartered Surveyors), the largest international appraisal association was founded in London in 1868.
—————————————————-
Common Appraisal Errors – Part 1
by Joshua Walitt, SRA, MNAA
Excerpts on adjustments: You don’t need to write a book. In fact, most adjustments can be summarized relatively succinctly. Consider the following when summarizing your adjustments:
* What specifically is the difference between the subject and the comp? This is normally apparent for garages and GLA, but may not be as easily discerned for condition or quality. In other words, regarding quality-related components, what specific characteristics make the comp different from the subject?

Read more!!

2-9-17 Newz// Dodd Frank repeal?, Secret Places, CU ratings manipulation

11 Secret Spaces Hiding in Famous Places

Thousands of people pass through these destinations each day unaware there’s a hidden gem tucked inside.
Here are a few:
– Secret Apartments in the New York Public Library
– Secret Compartment in Leonardo da Vinci Statue – Italy
– Vanderbilt Tennis Club at Grand Central Terminal – New York
– Gustave Eiffel’s Secret Apartment – Paris
My comment: Just for Fun. Fascinating!! Good fotos and info. New York seems to have a lot of secret places…
—————————————————————–
FREE ASC/Appraisal Foundation Webinar from Network of State Appraisal Organizations
On January 18th, NSAO sponsored a webinar with Jim Parks with the Appraisal Subcommittee and David Bunton with The Appraisal Foundation. The webinar received glowing reviews by those who attended and is available to those who missed it. The NSAO looks forward to other webinars in the future. These webinars are only possible because of your membership with VaCAP and other State organizations.

Read more!!

1-26-17 Newz: Master baths .Failed appraisals .$220 million home

The Rise of the Luxurious Suburban Master Bathroom
How a utilitarian room turned into a pleasure palace.
Excerpts:
Bathrooms haven’t changed much since indoor plumbing became a standard feature in newly built homes at the turn of the 20th century.  This, coupled with changing societal expectations regarding the frequency of bathing and new technology such as the flush toilet, swiftly ushered in the era of the modern bathroom.
The story of the master bathroom was long in the making. A space we now deem a necessity is only around 36 years old. It’s one of many examples of how a cocktail of social, technological, and economic influences combine to create new standards of living, and change the face of not only architecture, but how we live.
My comment: Fascinating, with lots of historic bathroom photos and excellent commentary! No comment on “master” and fair housing ;>
————————————————-
This Is What a $250 Million House Looks Like
As a glut of mega-homes hits the L.A. market, developers are taking it up a notch.

Read more!!

12-15-16 Newz// Unique Airports, Deregulation and Appraisers, Victorians Under $200k

Beautiful airports and Victorians under $200,000

Unique and Beautiful Airports Around the World

Architecture that redefines what it means to travel in style.

All I can say is WoW!! Take a break for a few minutes and look at these photos…

http://www.atlasobscura.com/articles/photos-of-the-worlds-most-unique-and-beautiful-airports

……………………………..

Affordable homes from all over the country (Hint: No fixers)

Just scroll down the pages.

7 Victorians under $200,000 (No tiny homes)

http://www.realtor.com/news/trends/victorian-homes-under-200k/

8 homes under $100,000 (Hint: no fixers)

http://www.realtor.com/news/trends/black-friday-bargain-homes-under-100k/

My comment: Wow!! Those Victorians in my city would be way over $1,000,000 on lots under 5,000 sq.ft. !!!


Sadly, The Appraisal Institute is now working against its local chapters by Jonathan Miller, posted 12/9/16
Read more!!

10-20-16 Newz// Appraisal oversight, VA wants fee appraisers, Amazing things disguised as Boring

9 Amazing Things Disguised as Boring Things

Look twice-these seemingly mundane objects are hiding something.

Excerpt:

Narnia hid behind a wardrobe. Doctor Who’s Tardis was disguised as a blue police call box. With no signage and no flags, these out of the ordinary things are hidden away disguised as something utterly banal. In some cases, these things are camouflaged on accident; in others, they are secreted away so that only those in the know can find them.

Either way, the world is full of seemingly mundane places that are more than meets the eye. It reminds us to stay curious-one has to always be on the lookout for wonder. Here are nine places in the Atlas that may seem boring at first glance but are actually amazing once you take a closer look.

Here are a few:

1. Brooklyn Townhouse Secret Subway Exit

Brooklyn, NY

3. Mystery Soda Machine – insert 75 cents and see what you get

Seattle, WA

4. The Lonely Parking Meter

The only parking meter in Winters, CA

http://www.atlasobscura.com/articles/9-amazing-things-disguised-as-boring-things

My comment: Just For Fun!! We all work in the field and discover strange things. This article will make me look closer at what I see ;>

——————————-

Disciplinary Process-How It Works, Your Rights & Likely Outcomes

by Robert Weinstock, JD, MBA, CBA, CVA

Excerpts:

While the number of licensed real estate appraisers nationwide has decreased, the number of complaints filed against appraisers has increased. For example, in my home state of California, complaints against appraisers have increased by 40% even though the number of appraisers has declined, according to the California Bureau of Real Estate Appraisers (BREA)….

The following is an actual 2015 disciplinary action against an appraiser in which the appraiser lost his license and was required to reimburse the state for its investigation and prosecution costs in the amount of $125,828. In addition, if the applicant should care to reapply for a new license, he shall be required to pay an additional $115,828.

Read more!!

Newz// Giant turtle home, Revised FHA 4000.1, Bad AMCs

The Most Unusual Homes Available Right Now, for sale or for rent, From A Luxury Cave To A Giant Turtle

Excerpt:

Good investment or not, wacky homes sure are fun to look at and can be rewarding to owners in ways more profound than money (more on that below). So we went in search of some of the most interesting homes available today. We found a house shaped like an onion, an Irish castle and a home meant to look like a fishing reel.

My comment: Just For Fun!! I wanna rent one of the vacation rentals. The Turtle House in Egypt is only $54 to $96 per night!! And you thought some of the weirdo homes you appraised were strange… take a look at these! And, of course, Ace Appraiser Jonathan Miller is mentioned in the first paragraph ;>

http://www.forbes.com/sites/samanthasharf/2016/09/23/from-gold-mines-to-torpedo-testing-plants-the-most-unusual-homes-available-right-now/

—————————

What is your current appraisal turn time (order receipt to submission)?

www.appraisalport.com poll

 

 

My comment: I wonder how many are over 2 weeks? 8 weeks?

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

—————————

Viginia Coalition of Appraiser Professionals (VaCap) Open Letter to AMCs

A few weeks ago, Virginia Coalition of Appraiser Professionals (VaCAP) sent out an open letter to the AMCs. This letter was republished by many coalitions, and appraiser groups across the country; liked and shared on Facebook and broadcast on several industry blogs. VaCAP received an overwhelmingly positive response from the letter. We even heard from several Realtors applauding our efforts! Activity is still ongoing with comments! Click here to read the letter and comments!

We heard you loud and clear…

The letter can now be signed by individual appraiser here on AppraisersBlogs. We will gather signatures and submit the signed letter to the FDIC, CFPB, Comptroller of the Currency and our Federal Reserve Board.

Note: To protect the appraiser identity from retaliation, only the initial of your last name and state will show on line. The copies sent to the FDIC, CFPB, Comptroller of the Currency and our Federal Reserve Board will have your full name.

Excerpt of a few points on the list:

  • – The use of an AMC has decreased the income of the appraiser, thereby harming local economies.
  • – The use of an AMC has increased the turn time for the delivery of the appraisal.
  • – AMCs operate on a fast and cheap model which has deteriorated the quality of appraisals
  • – AMCs have caused undue stress on the appraiser by demanding constant updates
  • – AMCs hire unqualified employees that lack comprehension of the appraisal process.

My comment: I usually don’t put in links to negative blog posts, but this seems to hit all the AMC issues, plus has something you can do. AMCs have been around since the 1960s but were never like this before. It is definitely a Big Mess and bad for the consumer (higher appraisal fees, delays in getting loans, etc.) Of course, they are doing what their lender clients want, but their methods are not good. There are some AMCs that are okay. Some appraisers have found a few they work for. Note: There is an ad in the middle of the post.

http://appraisersblogs.com/appraisers-sign-vacap-amc-letter/

——————————

In the October 2016 issue of Appraisal Today

Fees are going way up!! How to get higher appraisal fees during this boom time!! By Ann O’Rourke, MAI, SRA, PDQ and Doug Smith, SRA, AI-RRS . Lots and lots of practical tips.

Excerpt from the article:

How many appraisers are raising their fees?

I have been telling appraisers to raise their fees since early 2015. Below are two results of

appraisalport weekly polls.

Results from an April 2015 AppraisalPort weekly poll

Question: How long has it been since the last time you actually raised your fees?

  • 1 year 17%
  • 2-3 years 18%
  • 4-6 years 18%
  • 7+ years 26%
  • I can’t remember – I normally just accept the fee my client offers. 21%

Back in April 2015 not many appraisers were raising their fees.

In the past year, have your standard fees for a typical non-complex assignment changed?

Results from Appraisalport September 2016 poll.

  • Decreased 3
  • Stayed about the same 42
  • Increased by less than $50 27%
  • Increased by less than $100 18%
  • Increased by more than $100 11%

More appraisers are raising their fees in 9/16, but 45% have not still raised their fees! A few years ago I raised my non-lender fees to close to what borrowers pay. Why do appraisers keep working for low fees when they are so busy that they can’t take any more work? Or, they are not super busy, but want to get higher fees? Fear of never getting any more work. This is common to almost every business person, including myself. But it is not good when it keeps you from making more money, as it always does.

To read the full article with lots more data and practical tips for getting higher fees, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.

$8.25 per month, $24.75 per quarter, $89 per year (Best Buy)

or $99 per year or $169 for two years

Subscribers get, FREE: past 18+ months of past newsletters

plus 4 Special Reports, plus 2 Appraiser Marketing Books!!

To purchase the paid Appraisal Today newsletter go to

www.appraisaltoday.com/products   or call 800-839-0227.

————————————————–

17 Things Appraisers Should Do Before Hiring an AMC Client

October 4th, 2016 9:54 AM

Here are two of them:

7. Google the AMC’s name and see what comes up. This might seem obvious, but some AMCs have been in the news for lawsuits related to unfavorable treatment of appraisers. You do not want to waste your time vetting an AMC that has a bad reputation. Even if no lawsuits come up, a quick Google search could result in a feel for the company and let you know if this is a company you want to work for. Remember that homeowners might think you work for this AMC when you show up to do the appraisal. Is this a company that you are okay with if homeowners get confused and think you work for them?

17. Check the AMC’s data protection policy and ask what steps have been taken to keep your private information safe. Also ask if the AMC has ever had any data breaches and if so, determine what systems have been put into place to ensure that data breaches do not happen again. Does the AMC have a policy that requires them to alert appraisers if they believe a data breach was possible?

Click here for the full Most Excellent List!!

www.aqualityappraisal.com.blog

——————————————–

AMC Notes from Appraiserville by Jonathan Miller

Excerpts:

There was a CNBC article this week by Diana Olick that caused an uproar in the appraisal industry: ‘Massive’ shortage of appraisers causing home sales delays. Besides the incorrect inference of the title, the article was centered around Brian Coester, CEO of the Maryland-based CoesterVMS, currently one of the most controversial personalities in the appraisal management industry…

So I spoke with Diana Olick about the article this morning. I’ve known her for a long time and read all her stuff. She clearly did not realize what CoesterVMS represents to the appraisal industry but learned this from the outpouring of negative comments on the article by outraged appraisers. She understands now. How great is it that appraisers are getting out there and speaking their mind!

I told her that Coester is a notorious AMC in the middle of a big lawsuit that the entire appraisal industry is following. The shortage of appraisers is a myth being perpetuated by AMCS like Coester since their model only works if they pay appraisers a third to half the market rate for appraisal services.

My comment: I definitely think the current AMC model is broken, from the consumer, lender, appraisal and appraiser sides. I don’t really understand how it got so bad. I started writing in my paid newsletter about AMCs in the early 1990s. AMCs started in the were never like this before. Mostly they just paid lower fees. None had really low fees, scope creep, harassing and demeaning appraisers, etc.

To read more, Scroll down the page to Appraiserville

http://www.millersamuel.com/note/september-30-2016

—————————-

Miller was on a recent Voice of Appraisal radio interview with Phil Crawford.

Miller’s interview starts at -25:09 or 17:20 (download) 43:31 minutes total

http://www.voiceofappraisal.com/podcasts Episode 123

My comment: In last week’s email newsletter I said that the 2016 peak is almost up to the 2013 peak. In 2013 no one was complaining about high fees and turn times. In their discussion Miller said it was different because of CU/Scope Creep. He also said that business had been very slow between 2008 and 2012 and appraisers were glad for work. Appraiser attitudes about working for AMCs is much, much worse now. Good comments…Very few appraiser complaints about direct lenders and non-lender work.

————————————

Revised FHA handbook

Thanks to Dave Towne for this info!

HUD/FHA recently updated and revised the 4000.1 Handbook…..actually on June 30, 2016………..but notice about this was sent out Friday, Sept. 30.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/handbook_4000-1

When the page opens, scroll down the page and you’ll see two entries on the left regarding the Handbook. If you open the PDF link, and let it load…it will actually show you the changes made to the appraisal section (and others).

Note….the handbook is 1000+ pages, but only about 40 or so apply to appraisals.

Note that the revised handbook has ‘moved’ the Appraiser and Property Requirements section to II D, from its former position in B.

Buried in the revision is new info on how to account for specific named ‘appliances’ in a home you are appraising. See II D 3e.

It’s going to take someone with more time (than I have now) and expertise to determine what exactly HUD changed in the reporting requirements about “appliances that remain and contribute to value.” One needs to read the former 4000.1 Handbook and compare that to this revised edition to fully understand the implications of what HUD wants reported.

You will want to compare the attic observation requirement also. Revision 4000.1 has this in II D 3k.

Crawl space observation is in II D 3m.

————————————————-

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, go to https://www.mba.org

Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to www.appraisaltoday.com/productsor send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

WASHINGTON, D.C. (October 5, 2016)

Mortgage applications increased 2.9 percent from one week earlier

according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 30, 2016.

The Market Composite Index, a measure of mortgage loan application volume, increased 2.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared with the previous week. The Refinance Index increased 5 percent from the previous week. The seasonally adjusted Purchase Index decreased 0.1 percent from one week earlier. The unadjusted Purchase Index decreased 0.2 percent compared with the previous week and was 14 percent lower than the same week one year ago.

The refinance share of mortgage activity increased to 63.8 percent of total applications from 62.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.5 percent of total applications.

The FHA share of total applications decreased to 10.0 percent from 10.2 percent the week prior. The VA share of total applications decreased to 11.4 percent from 11.9 percent the week prior. The USDA share of total applications increased to 0.7 percent from 0.6 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.62 percent, the lowest level since July 2016, from 3.66 percent, with points decreasing to 0.32 from 0.33 (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 $417,000) decreased to 3.60 percent from 3.64 percent, with points decreasing to 0.25 from 0.28 (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 3.50 percent from 3.52 percent, with points decreasing to 0.16 from 0.21 (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 decreased to 2.93 percent from 2.95 percent, with points decreasing to 0.32 from 0.38 (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 remained unchanged at 2.92 percent, with points increasing to 0.44 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

9-22-16 Newz: Appraisers in the news, Coester lawsuit, Miniature homes

The Revolutionary Concept of Standard Sizes Only Dates to the 1920s

Nearly everything in your home is a certain size, thanks to German architect Ernst Neufert.

Excerpt: Almost every kitchen counter in the United States is 36 inches tall. And 25 inches deep. Eighteen inches above the counters are the cabinets, which are 16 inches deep.

Where do these sizes and dimensions come from? Have they always been so exact?

Building standards, as these numbers and rules are often known, are everywhere, helping shape everything from your kitchen cabinets and the sidewalk in front of your house to the layout of your favorite restaurant. Despite their prevalence, building standards really only came into being in the last century. A major turning point in their wild proliferation arrived in the 1920s, when the German government made the then-radical decision to standardize the size of office paper.

My comment: Fascinating!! Lots more info and images at the link below.

http://www.atlasobscura.com/articles/the-revolutionary-concept-of-standard-sizes-only-dates-to-the-1920s

———————————————-

What does the CU interface look like to underwriters?
Below are links to see. Here’s a tidbit – 50% of appraisals have no or 1 messages.
Learn More About Collateral Underwriter’s Powerful Features and New Look

Do you have questions about using Collateral Underwriter® (CU™)? Register to attend the upcomingAsk the Expert webinar on September 27, 2 p.m. to 3 p.m. ET. Additional webinars and eLearning courses are available on the CU web page.

Have you heard about CU’s easier-to-use design and layout coming later this year? Check out the preview. You can also view the new CU infographic for an overview of CU’s powerful features. CU gives you the feedback you need, when you need it, with a CU risk score, alerts, and messages provided real-time in the Uniform Collateral Data Portal® (UCDP®). For all the latest news and resources, visit the CU web page.

———————————-

Scheer Motion to Dismiss Coester vs Scheer Lawsuit

Excerpt: More CVMS Fraud and Coester’s Fraudulent Activities Revealed

Robert Scheer, former Coester Senior VP, has filed a motion to dismiss Coester vs. Scheer lawsuit. There are also whispers in the appraisal community that Brian Coester’s motion to dismiss the lawsuit against him was denied. Looks like Scheer vs. Coester lawsuit is going to trial. Scheer continues to reveal more dirt against Coester while appraisers continue to flood social media with comments, and sometimes with humorous reactions…

This article includes the motion to dismiss.

http://appraisersblogs.com/cvms-fraud-coester–scheer

Previous post on this topic: Coester Allegedly Engaged in Fraud Sued by Former Senior VP

http://appraisersblogs.com/Coester-VMS-lawsuit-fraud-forgery

———————————–

Dollhouse Real-Estate: Inside the Elite Market for Miniature Homes

Priced as high as hundreds of thousands of dollars, these elaborate dollhouses count sex therapist Ruth Westheimer and a member of Qatar’s royal family as collectors

Excerpt: This Victorian-style home features four bedrooms, one bathroom and ornate period details like a clawfoot bathtub, crystal chandeliers and mahogany fireplaces. It is currently on the market, fully furnished, for $149,000. Since the home is roughly 18 square feet, the price comes to about $8,278 per square foot.

http://www.mansionglobal.com/articles/39456-dollhouse-real-estate-inside-the-elite-market-for-miniature-homes

My comment: Thanks to Jonathan Miller for this Fun Link!!

Doll houses will never be the same for me ;>

=============================================

Coming in the October 2016 issue of Appraisal Today

How to get higher appraisal fees !!!

 Topics include:

  • Why AMC fees started going up last year.
  • Comparison of AMCs, direct lenders and non-lender fees. Why they are very different.
  • How to find out what AMCs are say they are paying and what appraisers are really getting.
  • Lots of fee negotiating tips

 Not just a lot of ranting. Practical advice on how to successfully make more money during this Boom that will not last forever.

To read the full article, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.

$8.25 per month, $24.75 per quarter, $89 per year (Best Buy)

or $99 per year or $169 for two years

Subscribers get, FREE: past 18+ months of past newsletters plus 4 Special Reports, plus 2 Appraiser Marketing Books!!

To purchase the paid Appraisal Today newsletter go to

www.appraisaltoday.com/productsor call 800-839-0227.

 If you are a paid subscriber and did not get the September 2016 issue, emailed September 1, 2016, please send an email to info@appraisaltoday.com and we will send it to you!! Or, hit the reply button. Be sure to put in a comment requesting it ;>

——————————————–

APPRAISERS IN THE NEWS. THE ARTICLES BELOW ARE ABOUT FEES, TURN TIMES, APPRAISER SHORTAGE, ETC. THEY WERE WRITTEN FOR LENDERS, REAL ESTATE AGENTS, HOME OWNERS, AND THE GENERAL PUBLIC. All allow comments, which can be very interesting!!

5 things to consider about higher appraisal fees and longer turn-times By Ryan Lundquist. Written for real estate agents and home owners

Excerpt: 4) Not Getting All the Money: A loan officer I spoke with was frustrated that his Borrowers were paying $550 for conventional appraisals and $750 for jumbo appraisals – and still experiencing longer turn-times. When he told me the Appraisal Management Company (AMC) he uses though, that’s where the problem comes in. This AMC regularly pays appraisers $350, which means they’re pocketing 40% of the fee the Borrower thinks is going to the appraiser. A few days ago on Facebook there was an appraiser who had an offer from an AMC to appraise a property for $850, but the AMC was charging the Borrower $1,385. Let’s remember appraisers are supposed to be paid “customary and reasonable” fees under Dodd-Frank, but a reasonable fee is what the appraiser gets – NOT what the Borrower pays.

My comments: Well written – for real estate agents and home owners, but has good explanations for everyone. (Ryan’s blog is primarily marketing for his appraisal business.) This article also discusses the decline in the number of appraisers in California, with data, but is relevant for many other states.

http://sacramentoappraisalblog.com/2016/09/20/5-things-to-consider-about-higher-appraisal-fees-and-longer-turn-times

———————————-

Appraiser Shortage? By Greg Stephens, SRA, MetroWest AMC

Reprinted from a June 2016 mortgage magazine. Written for lenders.

Excerpt: A topic very relevant to mortgage professionals has been receiving increasing attention lately-the question whether there is or is not a shortage of appraisers? Regulators, as well as market participants, have been weighing in, and depending upon who you talk to, the answers vary. The problem so far is that most of the discussion has been anecdotal.

What also needs to be included in stakeholder discussions on the topic is the status of future appraisers in the pipeline to replace the aging population of practicing appraisers.

To answer the question-not only whether there is a current shortage, but also if there is the potential for a shortage either in the near future (three to five years) or perhaps even longer, I conducted some in-depth research to glean as much factual information as possible.

My comments: This article has some good data on declines in number of trainees, problems with ASC data,lenders not allowing trainees to sign on their own, etc. Written for mortgage lender publication. Of course, it does not discuss low fees, scope creep, and treating appraisers “poorly” as a reason for the shortage of appraisers willing to work for many, or all, AMCs.

http://www.nationalmortgageprofessional.com/news/60306/appraisal-industry-update

————————————————————–

Need an appraisal right away? It may cost more than you’d expect. By Ken Harney. Written for the general public. Syndicated in national newspapers.

Excerpt: The problem is part work overload, part resentment over fees. In many markets, diminishing numbers of experienced appraisers are available – and willing – to handle requests for their work on tight timetables and at fees sometimes lower than they earned a decade or more ago.

The net result: The system is getting gummed up. …. A recent survey of agents by the National Association of Realtors found that appraisal problems were connected with 27 percent of delayed closings, up from 16 percent earlier this year.

In some cases, panicked lenders and management companies are offering appraisers fat bonuses and “rush fees” to meet deadlines. The extra charges can range from $200 to $1,000 or more, turning $500 appraisals into $1,200 or $1,500 expenses, which typically get paid by home buyers.

My comment: Harney has been a nationally syndicated real estate columnist for a long time.

https://www.washingtonpost.com/realestate/need-an-appraisal-right-away-it-may-cost-more-than-youd-expect/2016/09/12/5ce8fa98-790c-11e6-bd86-b7bbd53d2b5d_story.htm

————————————————-

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, go to https://www.mba.org

Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to www.appraisaltoday.com/productsor send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

WASHINGTON, D.C. (September 21, 2016)

Mortgage applications decreased 7.3 percent from one week earlier,

according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 16, 2016. The prior week’s results included an adjustment for the Labor Day holiday

The Market Composite Index, a measure of mortgage loan application volume, decreased 7.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 15 percent compared with the previous week. The Refinance Index decreased 8 percent from the previous week to the lowest level since June 2016. The seasonally adjusted Purchase Index decreased 7 percent from one week earlier. The unadjusted Purchase Index increased 15 percent compared with the previous week and was 3 percent higher than the same week one year ago.

 

The refinance share of mortgage activity increased to 63.1 percent of total applications from 62.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.4 percent of total applications.

 

The FHA share of total applications increased to 10.2 percent from 9.6 percent the week prior. The VA share of total applications decreased to 11.6 percent from 12.0 percent the week prior. The USDA share of total applications remained unchanged from 0.7 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since June 2016, 3.70 percent, from 3.67 percent, with points increasing to 0.38 from 0.36 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 3.69 percent from 3.64 percent, with points decreasing to 0.29 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.56 percent from 3.50 percent, with points decreasing to 0.23 from 0.27 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week

The average contract interest rate for 15-year fixed-rate mortgages increased to 2.99 percent from 2.97 percent, with points increasing to 0.35 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 2.96 percent from 2.87 percent, with points

decreasing to 0.26 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

Page 1 of 512345