FHA appraisal problems

By on February 28, 2019   /   appraisal business, AVMS, deminimus, hybrid appraisals, mortgage loan volume, Strange homes, unusual home, USPAP   /   Leave a comment
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Common FHA Violations

Excerpt: I’ve been performing FHA appraisals since 2000. Believe it or not, on a regular basis, I have home owners and real estate agents who tell me that some of the things I point out as FHA violations, were never mentioned in other FHA appraisal inspections. So, I thought I would mention some relatively common FHA violations I see when making my FHA inspections.

My comment: Funny Fotos and Videos!! I have seen similar photos around but there are many here in one place. Written for home owners, but good reminders for appraisers.

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Common Appraiser Violations

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Zestimate Obsession and an Appraisal

By on February 21, 2019   /   real estate market, Strange homes, weird properties, zillow   /   Leave a comment
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Obsessively Checking Zestimates

Excerpts: If you own a home, or want to own one, chances are you’ve spent some time with one of the many apps that estimate home values. As real estate prices have risen in recent years, watching one’s equity grow – at least on paper – has become something of a national pastime. Some would call it an obsession.

“I check my Zestimate way more than my 401(k),” said Bradley Reed, a homeowner in Cleveland, referring to Zillow’s proprietary tool.

“On a slow week, I might check it every other day,” said Krista Burns in Doylestown, Ohio.

Listen or read the story and twitter comments, see some fotos, etc. Add your comment at the bottom.

My comment: Zesimates are free, but often not accurate. They work well in newer conforming subdivisions, but not well with older homes.
I listen to the marketplace podcast almost every day, listened to this one last week, and really liked it. Fortunately, with this link you can read the transcript or listen to it plus read some twitter comments. I know that real estate agents have lots of problems with it. I wonder how many appraisers look at Zestimates? You may be surprised!! Some even include it in their appraisal reports and explain why their value is different.

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Traditionalist, advanced, vocational appraisers. What are you?

By on December 21, 2018   /   FHA, mortgage loan volume, Strange homes, unusual home, va, weird homes   /   Leave a comment
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What kind of appraiser are you?

By George Dell
Excerpt: Let’s put aside the ‘art’ versus ‘science’ discussion, where the artists say: “No computer will ever replace the appraiser”, or “No amount of education will ever replace experience”. The other side seems a bit confused.  There are traditionalists.  And there are the “advanced” appraisers.  And there are the “vocational” appraisers, who don’t seem to care much about all of this.  They just want to push through as many reports as possible.  The skeptics tend to doubt some of the old theory, as well as some of the “new theory”. Traditionalist, advanced, vocational appraisers. What are you?

My comment: Worth reading. I am a “traditionalist/skeptic”. What are you?

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

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Appraisal Comp Photos Drive or Not Drive?

By on December 13, 2018   /   adjustments, Fannie, lender appraisals, Mortgage applications, mortgage loan volume, real estate market, Strange homes, threshold, unusual homes, weird homes   /   Leave a comment
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To Drive or Not To Drive, That is the Question!!

Excerpt: The argument of using MLS photos or shooting your own photos has been debated by appraisers for the last few decades. You, as appraisers, want to be sure the comparables you are using are of the correct house and also look as the MLS illustrates. Most importantly, you want to make sure the house is still standing. The listing agent’s job is to sell the house. As the salesperson they will highlight all the positives and leave the negatives up to the imagination. This is one of the main reasons it is extremely important to not solely rely on MLS when utilizing comparables.

Click here to read the full post, plus over 50 comments from appraisers. Add your own comments!!

My comment: this issue has been going on for decades and is still controversial. Especially in rural areas!! Note: the post is a sorta promo for proxpics, a photo taking service, but the appraiser comments are great.

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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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Wearing shoes in a house for appraisal

By on November 1, 2018   /   adjustments, appraisal how to, forecast, Mortgage applications, mortgage loan volume, real estate market, Strange homes, weird homes, weird properties   /   Leave a comment
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The Ugly (and Filthy) Truth About Wearing Shoes in the House

Excerpts: “Shoes off, please.” A reasonable request? Or are those fightin’ words?

Arguably, no other three monosyllabic words have ever led to more irritated house guests, resentful homeowners and thriving sales of shoe racks, slippers, and sing-songy, passive-aggressive signs. (“Since little fingers touch our floor, please remove your shoes at our door!”)… “So many germs and bacteria can be brought in from your shoes, including toxins and E. coli,” Mitzner explains…

“So, if one removes their shoes,” he asks, “what about all the potential bacteria on their socks?” Plus, even if you abide by a strict rule of “no shoes,” you can’t escape the fact that the interior of your home is still covered in germs, Adalja says. How reassuring.

While there are scientific arguments both for and against pulling off footwear the moment you enter the front door, experts do seem to agree on one thing: To minimize the risk of getting sick, go out of your way to keep a clean home.

My comment: I hate taking off my shoes in a house!! I have to put them, or disposable booties, back on when going in and out of the house. But, since reading this article, I am so glad I have hardwood floors with no carpets and no small children ;> Of course, the bottom line: it is their house and they can decide.

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New 1004 appraisal form?

By on August 30, 2018   /   adjustments, appraisal how to, Collateral Underwriter, Fannie, statistics, Strange homes, weird properties   /   Leave a comment
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To Form or Not To Form? What will it be? A new 1004?

By George Dell
Excerpt: What’s the difference between a form and a data entry page? Will “forms software” even be necessary? Will the result require less appraiser expertise – or more? Will it encourage the “form-filler” people, or will it require some real understanding of problem identification, data selection, predictive methods, and communication? Will the transmittal require both an electronic data stream and human actionable views?

Will it require appraisers at all? Or will the “data analysts” simply create the ultimate model.

These are big questions. From my point of view, some of the answers are obvious. But first, let’s outline how we can even ask the right questions . . .

My comment: Fannie Mae has been planning on revising the forms. I have known George for quite a while, heard him speak and taken his class. Looks like people are finally starting to pay attention to what he says about stats, data, etc.!! His blog posts are fine, but sometimes you want more. The September issue of the paid Appraisal Today will have George’s 6 page article, “Why, Why, Why? Why do we put “stats”, “graphs”, “data,” and “science” together?”

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To read more of this 8-30-18 long blog post with many topics, click Read More Below!!

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Appraisal Report certifications

By on August 9, 2018   /   adjustments, appraisal how to, appraisal waivers, Fannie, mortgage loan volume, Strange homes, unusual home   /   Leave a comment
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Certifications: Understanding What You’re Signing

By Tim Andersen, MAI
Excerpt: Next is another declaration to aid in the transparency of the analyses behind the appraisal. “I have performed no (or the specified) services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.” Here, the intent is to prevent the client from perceiving the appraiser is in any way biased for or against the subject property by disclosing any relationship the appraiser may have with the property.

Occasionally appraisers appraise the same property numerous times for different entities. This component of the Certification discloses the appraiser has received knowledge of the property from having provided a past service involving the property. Because of the use of the word services, it is clear if the appraiser has provided any services relating to the property, the appraiser must disclose them.

My comment: When I used to teach USPAP (before the Appraisal Foundation mandated what to teach) I always spent time on the 1004 certifications. I suspect that was the first time that attendees read them. I make my own certifications for my non-lender appraisals.

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

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To read more of this long 8-9-18 blog post with many topics, click Read More Below!!

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6-28-18// Newz .Appraiser Impostor Video, Unusual Motels/Hotels, Switch Off USPAP

By on June 28, 2018   /   AMCs, appraisal management company, appraisal waivers, bad appraisers, mortgage loan volume, Strange homes, unusual home, unusual homes, USPAP, weird properties   /   Leave a comment
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Appraiser Imposter Captured on Video!!!

Click here to see the video of the imposter and the owner’s comments. Note: You may have to wait for the ad to finish. Worth the wait!!

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Imposter posing as appraiser, utility workers target Phoenix neighborhood
Excerpt: Last Wednesday, as construction workers bustled inside Huddleston’s home near 22nd Street and Glendale Avenue, a woman came to her door claiming to be an appraiser for the bank.

Huddleston said the woman told her she was there to take pictures, and had arranged the time with Kacia’s husband, Bryan.
“She knew my husband’s name, and as I was in the midst of texting my husband to see if she was supposed to be here, she walked right in,” said Huddleston.

My comment: Have you inspected the wrong house? I have definitely knocked on the wrong door, but never went inside… so far ;>

Stories of Surprising Roadside Hotels

It’s check-in time for your memories of unforgettable travel lodgings.

Just For Fun!!

Excerpt: Lots of interesting places!! Here are a few:
Red Caboose Motel Ronks, Pennsylvania
The guest rooms are actual train cabooses. Think tiny houses on rails.

The Atomic Inn Beatty, Nevada
“It was alien and bunker-themed, and was decorated with atomic bomb art.”

Wigwam Village #2 Cave City, Kentucky
Stay in a teepee.

Movie Manor
Monte Vista, Colorado
“It’s in a drive-in theater and you can watch movies from your bed.”

Click on the Motel/Hotel name for photo and more info

My comment: Back in the 60s I traveled between California and Oklahoma regularly, using Route 66, before the Interstate was completed. Lotsa strange motels!! Before motels morphed into chains that looked the same. There are still a few of these “old timers” left.

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5-24-18 Newz//UAD and Fannie Form Changes. Floating Island. Refis dropping

By on May 24, 2018   /   adjustments, AMCs, appraisal business, appraisal how to, appraisal management company, data, Fannie, Freddie, lender appraisals, marijuana license, real estate market, state appraiser regulators, Strange homes, weird homes, weird properties   /   Leave a comment
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It’ll never sell that high (but then it did)

Excerpt: There’s no way it’s going to sell that high. Have you ever thought that in real estate? Well, let’s talk about a property that many said would never sell at $4.1M, but then it did. I definitely have some takeaways about this lofty condo in Downtown Sacramento (CA), and I hope non-locals will relate to the commentary. (My note: median home sale price is $367,500)

Details and lots of graphs at:

My comment: The median home sale price is $367,500. This is definitely an outlier for the area.

A floating Pacific island is in the works with its own government, cryptocurrency and 300 houses

Just For Fun!!

Excerpts: The Floating Island Project plans to create off-shore housing that uses its own currency and operates outside of government regulations.
– The project is a pilot program in partnership with the government of French Polynesia.
– A long-term vision for the project is hundreds of new countries floating on the ocean.

As well as offering a home for the displaced, the self-contained islands are designed to function as business centers that are beyond the influence of government regulation.

Check out the video and lots more details at:

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