Will Fintech Transform/Disrupt Appraisals?Bifurcated appraisals is the “tip of the iceberg” in changes coming to lender appraisals
I recently attended Jeff Bradford’s excellent presentation on coming changes in the type of valuation used in the residential mortgage industry. I also attended a webinar “New Valuation Trends Disrupting the Industry” that focused on the lender side, especially loan originations. Both saw significant changes coming in the next 5-10 years, going from legacy to digital lending that will transformational.
Both used the term “Fintech” regularly.
Here are two definitions “computer programs and other technology used to support or enable banking and financial services” and “fintech is one of the fastest-growing areas for venture capitalists”. I have written about several VC funded appraisal companies in this newsletter, both residential and commercial, working on new ways to make appraisals more efficient.
Both presentations talked about many ways, such as using AI, photos and data to evaluate interior condition, estimating square footage without measuring, “real time” google earth, etc.
I will be writing about both presentations in the next month’s issue of the paid Appraisal Today.
For more info, google Fintech and mortgage lending and/or Fintech and mortgage lending appraisals. FYI, I did not know what fintech referred to and had to google it after the presentations;>
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Hobbit Houses in Charlevoix, MichiganJust For Fun!!Excerpts: Growing up in northern Michigan in the early 1900s, Earl Young was obsessed with boulders. Glacial boulders, to be exact-ones moored in fields, forests, and on lake coastlines across the state thanks to the slow march and retreat of glacial ice during the Precambrian age.
The homes he designed will stop you in your tracks, as one did the last time I was there, passing by on a bike. Call them “mushroom houses,” “hobbit houses,” “boulder houses”; everyone has a different name for them. They’re often described concisely, if vaguely, as “organic.” Though some see Frank Lloyd Wright’s influence, they’re distinctly Young.
Fascinating! Lots of fotos and info at:
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SUBSCRIBER NOTICE:
Starting next week this email newsletter will be sent out on Fridays.
Why? After 25 years of sending on Thursdays, time for a change! Also, fewer emails on Fridays, so more time to read this newsletter (and not lose it in your inbox) ;>
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Tips for choosing comps on a unique home (straw-bale house)By Ryan Lundquist
Excerpt: It almost sounds like the big bad wolf story, but there really are homes built from straw. Literally. Today I want to mention a few things about this type of construction, share some photos of a local straw-bale house, and then talk briefly about how I approached appraising this one.
Worth reading to find out what Ryan did!!
My comment: Very good tips on appraising unique homes. No lender issues as the appraisal is pre-listing and not for a lender… Sacramento is a Very Strange place for a straw-bale home!! ——————————————————————– |
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These Locations Were Abandoned Years Ago. Look At Them TodayExcerpt: We’re used to seeing places maintained and kept to a high standard. Usually, we travel to places that are made to look as nice as possible through consistent cleaning and maintenance. But what about the places that are left behind?
Fascinating!! Take a break from appraising and check these out!!
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Woops! Last Wednesday I sent 2 ads at the same time…My apologies! I have been sending out these ads for about 10 years and never sent out two at the same time.
Two weeks ago I came down with a flu that lasts about 3 weeks. It makes me very tired with a “fuzzy brain”. I did not notice that I had two ads scheduled for the same time.
Now, I check the ad scheduling several times the day before they go out, plus my office assistant also checks them.
I rarely get sick. When I do it is usually for a only a few days, so I was not prepared. Why do I seldom get sick? After over 40 years of appraising homes, I try to never shake hands or touch doorknobs. If I do, I wash my hands as soon as possible. I shook hands with a friend while shopping at a grocery store and did not wash my hands!! —————————————————————————- |
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Fannie Mae Appraiser Update March 2019Excerpt: What appraisers need to know about property data collection
Topics:
Also: Learn how to appraise MH Advantage homes
Read the short update:
Link to Fannie’s Appraiser Page – lots of good info
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The Property Valuation Reckoning is ImminentHow Technology is Highlighting Underwriting’s Shortcoming
Excerpt: some high-level aspects that can be used to get conversations started.
1. Increasing the availability of detailed, property-specific information, including both operational (ongoing) activities and transactions (sale, refinance, etc.).
2. The collection and analysis of macroeconomic, microeconomic, and capital markets influences that affect the real estate industry.
3. Using concepts such as systems thinking, systems engineering, and advanced technology such as artificial intelligence, machine learning, and deep learning to design semi-automated models that capture and make sense of both property-specific and larger capital markets factors.
Very interesting ideas and analysis. Long, but worth reading. FYI PropTech is a newish acronym. See the next link.
What is PropTech?
My comment: The article gives commercial examples, but is relevant for residential. I have been watching commercial applications, such as AVMs, attempted since the 1990s. The biggest problem is the lack of data. Costar is the major source of data in many areas and has not allowed its data to be commercially used by AVM developers, as far as I know. For leased commercial properties you must have income and expenses, which is not always available. For some types of non-leased properties, such as owner occupied warehouses, AVMs could work well. |
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AMCs and Respect for Appraisers??By Rachel Massey, SRA
Excerpt: …an example of an AMC that is not paying attention to the comments from the declination. If an appraiser declines due to coverage area, then it should not be reassigned. But also, if appraisers decline because the fee is inadequate, is upping it a paltry $25 going to cut it? In the time between the initial order and the subsequent, ten days passed. Had the AMC picked up the phone and started calling appraisers, they may have had much better success at finding someone who first of all covers the area, and second of all, would tell them how much it would take for them to take on the assignment.
My comments: Worth reading plus the appraiser comments, of course!!
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CHANGE YOUR TEMPLATES!!I am really going to try hard NOT to use 2018 on :
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What Was the Most Popular Home of 2018?Just For Fun!!Excerpts:
10. Cerro Gordo, Lone Pine, CA
Status: Sold for $1.4 million in July
Why it’s here: Seeking a little solitude? Look no further than Cerro Gordo, a bona fide ghost town perched 8,000 feet up in the Inyo Mountains in Southern California.
8. Beckham Creek Cave Rd, Parthenon, AR
Status: Currently off market
Why it’s here: This rustic estate carved into the side of the Ozark Mountains captured attention for its storied history of renovations. What started as a doomsday shelter was transformed into an A-list nightclub
Click here for fotos, more info, and 8 more popular homes!!
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The Most Astonishingly Unique Homes of 2018Great Videos, Just for Fun!!
My comment: Great to look at but don’t ask me to appraise them!! |
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Futuristic Houses With Some Weird Architectural DesignsJust For Fun!!Excerpts: You may have watched Transformers, robots that transforms to a vehicle. Well, that’s exactly how these house designs are made. Futuristic? Sure it is. Considering that we need space to build our homes, now we can just take our homes to wherever it is we like. It transforms from a box to a home. How cool is that?
Some of these sleek, weird houses look like they’ve been ripped out of the twenty-second century and some look like they’re from the next millennium. Get ready to move into the freaky saucer homes of tomorrow.
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Fannie Appraiser Update: Special Edition for Rural AppraisalDecember 2018Excerpt: Get tips for appraising rural properties, learn more about our manufactured housing appraisal policy, read about recent appraisal policy updates, and more in the latest Fannie Mae Appraiser Update.
We love hearing from you! Please continue to use the Contact Us form for appraisers to share what’s on your mind and to submit feedback and questions on appraisal topics.
Topics include:
Adjustments, Comps, Cost Approach, etc. tips relevant for most appraisers.
Click here to download the Update PDF
My comment: Even if you don’t appraise rural homes, there are some good tips in this document for all of us! Who never gets a weird house to appraise?
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