Appraisal News and Business Tips

weird homes

20 worst street names

Excerpt:

I’m sure the folks on Cannibal Road are lovely people, I just won’t be attending any of their dinner parties. These are the streets that you don’t want to find yourself driving down – trust us, no good can come from a stroll on Buckets of Blood Street. Proceed with caution…
Thanks (again) to Jonathan Miller for this great link!!
What are the strangest street names you have seen?
POST YOUR STRANGE STREET NAMES BELOW!!
My comment: Yes, there is an O’Rourke Street in a nearby city!!

Appraisal Today newsletter

Newz: 2-18-16 No amcs – Banks fined – College degree

Toronto’s Half House

Willy Wonka would love this weird half-a-home

Excerpts:

No, this isn’t a trick of Photoshop. Nor is it the world’s nastiest spite house; rather, this bonafide half-home shares more with its nail house brethren after witnessing a history of blight and zoning changes.

The lone row home at 54 1/2 Saint Patrick Street dates back to Toronto’s slums in the late 19th century. Built somewhere between 1890 and 1893, this bay-and-gable relic from a bygone era once was a one of six identical, structurally intertwined homes on what was then known as Dummer Street

This begs the question: how does half a building cleave away so cleanly only to leave the rest of it standing?

Read more at: Be sure to click on photo full screen to see it better

http://www.atlasobscura.com/places/toronto-s-half-house

 More photos and info atClick here Link was too long to post…

Read more!!

NEWZ// 2-4-16 – Adjustments-Unwanted mansions-Why homeowners don’t refi-Loan buybacks

 5 Reasons Homeowners are not Taking Advantage of Refi Opportunities

Excerpts:

Historically low mortgage rates have been circling the housing market for several years now. Low mortgage rates present opportunities for homeowners to refinance their homes, but recent data and analysis shows that they are not taking advantage of billions of dollars in savings.

Although the number of refinancers may appear to be large, it is actually down from over 7 million in April 2015. Black Knight reports that interest rates were under 3.7 percent during this time, and the 20-year rate was 3.96.

Black Knight Data & Analytics SVP Ben Graboske explained, “This population is diminishing, and as mortgage interest rates rise, it will only continue to shrink further.”

Here are the five:

Lower credit scores and income.

Hassle and upfront expense.

Not enough equity.

Inconsistent job history.

Lack of assets.  

Lots more info plus a link to the original study.

http://www.themreport.com/news/data/01-25-2016/5-reasons-homeowners-are-not-taking-advantage-of-refi-opportunities

My comment: interesting analysis plus a link to the nerdwallet full analysis. I have always wondered why so few people are not doing refis with rates still at historic lows.

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 CU Quick Guide Videos Now AvailableNew short videos (~4 min) show how to easily use the Collateral Underwriter® (CU™) web application to research common messages. Watch the Quick Guide Intro to the Comp Selection Message to see how to use CU to review appraisals with a material difference between the appraiser-provided and CU model-selected comparable sale rankings. The Quick Guide to Data Discrepancy Messages shows how to quickly view other appraiser observations when there is a discrepancy in reported data (either from what the appraiser previously reported or from what other appraisers have reported.) Want to learn how other lenders have leveraged CU? Review this new Housing Industry Forum article which details how lenders that maximize the use of CU have been able to make the underwriting process more efficient while improving appraisal quality and reducing appraisal-related loan defects.Additional CU live webinar dates are also now available:

CU User Interface Basic Training: Feb 10, 2016 from 2 – 3:30 p.m. ET

CU User Interface Advanced Training: Feb. 18, 2016 from 2 – 3:30 p.m. ET

Maximize your Appraisal Review Efficiency and Effectiveness with CU: Feb. 24, 2016 from 2 – 3 p.m. ET

For more information on CU visit the CU web page. 

My comment: see how CU works, from the lender side. 

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America’s Most Unwanted: The Neverland Ranch and Other Unsold $100 Million Mega-Mansions

Excerpt:

Michael Jackson’s $100 million Neverland-formally known as Sycamore Valley Ranch-is still stuck on the block.

Listed last May (sans the King of Pop’s amusement park), the 2,698-acre compound in Los Olivos showcases a 12,598-square-foot, French Normandy-style main house with six bedrooms and nine baths. Other structures include three separate guesthouses, a 5,500-square-foot movie theater with a stage, numerous barns, animal shelter facilities, and a maintenance shop.

Check them all out at:

http://www.forbes.com/sites/kristintablang/2016/01/26/100-million-mega-mansions-for-sale-neverland-ranch-jeff-greene-rancho-san-carlos-palazzo-di-amore-le-palais-royal

My comment: if they ever do sell… very, very long exposure times!

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Adjustments – “Support” vs. “Proof, what should you do?

New in the FEBRUARY 2016 issue of the paid Appraisal Today

Adjustments Part 1 – Are you making too many adjustments? Lots of ideas, research, etc.

– Support vs. proof for adjustments by Bob Keith. A very good explanation of Scope Creep on adjustments. He is the former Executive Director 

of the Oregon State Appraisal Board and is a consultant for appraisers with state board complaints

Identifying Residential Architectural Styles by Mark Nadeau,SRA, Book review. Read my review to decide if you want to buy the book.                        

Two good, practical residential books, with very good tips on adjustments  Book reviews. 

The Dictionary of Real Estate Appraisal, 6th Edition – Read my review to decide if you want to buy this book. 

Cancel at any time. For any reason!!

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Fannie, Freddie Unveil New Appeals Process for Loan Repurchases

Excerpt:

Fannie Mae and Freddie Mac unveiled an appeals process Tuesday that will allow an independent arbitrator to resolve disputes between lenders and the government-sponsored enterprises over loan repurchase demands.

The new independent dispute resolution process, which was approved by the Federal Housing Finance Agency and endorsed by the Mortgage Bankers Association, is an effort to provide lenders more certainty that they won’t later face costly repurchase requests if a loan goes bad.

http://www.nationalmortgagenews.com/news/secondary/fannie-freddie-unveil-new-appeals-process-for-loan-repurchases-1071121-1.html

My comment: Maybe lenders will be less paranoid about appraisals causing buybacks and cut back on Excessive Appraisal Requirements.

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One-third of realty transactions are plagued by delays, some of them fatal By Ken Harney

Excerpt:

According to the study, of the 32 percent that experienced delays, 46 percent were triggered by “financing issues,” which is up from 40 percent during the first half of 2015. Appraisal-related problems caused 21 percent of the delays and home-inspection issues in 14 percent. Of the nearly 1 of every 16 (6 percent) of deals that turned into total disasters and fell through, home inspection and financing were the primary culprits. Sixteen percent went south because of the appraisal.

https://www.washingtonpost.com/realestate/one-third-of-realty-transactions-are-plagued-by-delays-some-of-them-fatal/2016/01/19/0d74d684-beb9-11e5-83d4-42e3bceea902_story.html 

My comment: maybe that’s why some AMCs are pressuring/asking for more when you “come in” under the sales price. Their clients, the lenders, don’t like deals falling through…

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Study finds discrepancies between reported and actual home sales prices By Ken Harney

Are some realty agents hyping the pricing information on closed sales they report to their local multiple listing service, or MLS? And if so, should you care?

A first-of-its-kind study by appraisal and real estate experts suggests that maybe they are and maybe you should. Researchers compared closing documents – which are supposed to indicate the final price in sales transactions – with the prices that agents actually reported to their MLS and found that in nearly 1 of every 11 cases (8.75 percent) there were discrepancies. Overstatements of final price exceeded understatements by a ratio of nearly 3 to 1. In one case, the price reported to the MLS was 21.4 percent above the actual closing price.

https://www.washingtonpost.com/realestate/study-finds-discrepancies-between-reported-and-actual-sales-prices/2016/01/26/86d11660-c435-11e5-a4aa-f25866ba0dc6_story.html

My comment: And AMCs worry about discrepancies on public records and appraisers on GLA!! Another reason Big Data (CU) fails and needs appraiser input. 

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, go to www.mbaa.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/products.htm  or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

Mortgage applications decreased 2.6 percent from one week earlier 

WASHINGTON, D.C. (February 3, 2016) – Mortgage applications decreased 2.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 29, 2016.  The previous week’s results included an adjustment for the Martin Luther King holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 11 percent compared with the previous week.  The Refinance Index increased 0.3 percent from the previous week to its highest level since October 2015.  The seasonally adjusted Purchase Index decreased 7 percent from one week earlier. The unadjusted Purchase Index increased 11 percent compared with the previous week and was 17 percent higher than the same week one year ago.

The refinance share of mortgage activity increased to 59.2 percent of total applications from 59.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.9 percent of total applications.

The FHA share of total applications increased to 12.9 percent from 12.7 percent the week prior. The VA share of total applications remained unchanged from 11.1 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) decreased to its lowest level since October 2015, 3.97 percent, from 4.02 percent, with points increasing to 0.41 from  0.40 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  This is the fourth straight weekly decrease for this rate.  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 its lowest level since April 2015,  3.84 percent, from 3.89 percent, with points increasing to 0.26 from 0.25 (including the origination fee) for 80 percent LTV loans.  This is the fourth straight weekly decrease for this rate.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.80 percent from 3.83 percent, with points decreasing to 0.35 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 15-year fixed-rate mortgages decreased to 3.22 percent from 3.28 percent, with points remaining unchanged at 0.37 (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 decreased to 3.00 percent from 3.09 percent, with points remaining unchanged at 0.34 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased 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

 
To purchase the paid Appraisal Today newsletter  go to

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

 

NEWZ// 1-28-16 Not C-R fees-fined/AI twitter hacked/Building permits?/50 castles/adjustments

 

50 castles in 50 states

Excerpt:

The United States of America is not typically thought of as a land of castles, and with good reason-the uniting of the American states coincided, not coincidentally, with the beginning of the end of the era in which kings and queens ruled over everything, holing up in huge fortified houses so that the peasants and/or invading barbarians couldn’t kill them.

But in a way, that’s too bad, because the U.S.A. is a land of excess, and there’s nothing more excessive than a castle. And there are some castles in this country-maybe more than you’d expect-which range from (mostly) vanity projects, to mini golf courses, to even a few places that originally served some military purpose. Not only that, but many of them are currently for sale. If you’ve ever dreamed of owning a castle of your own, you could, for as little as a few hundred thousand dollars, or as much as a over ten million. (If you want to have your wedding in a castle, the options are even more vast.) In fact, we found a castle in every state in the U.S.A

Here are a few:

– This Illinois Castle Costs a Mere $795,000

– Majestic Castle in the Adirondacks Offers Turrets, Knights, and – Secret Passageways for $12.8M

– Ludicrous $4.9M Texas Castle Really Loves Turrets

My comment: Photos and links for more info for all 50 castles!!

Easy to view – scroll down the page, no excessive popup ads.

Check it out at:

http://curbed.com/tags/castle

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Appraisal volume starts to lose momentum

Reverses last week’s rise

Posted January 26, 2016

 

Excerpts:

Appraisal volume erased most of last week’s rise, falling 4.1% for the week of Jan. 17, the most recent report from a la mode, an appraisal forms software company that tracks appraisal volume throughout the country, showed.

A week ago, appraisal volume grew 5%, following a strong surge the week prior.

“While appraisal volume started the year with a strong recovery from the Christmas and New Year slump, it has not seen the energy that mortgage applications have shown. This is perplexing but could be because of lenders still getting used to the new TRID procedures and delaying ordering appraisals or just that the applications are falling out and not turning into mortgages,” he continued.

Click here to read other comments and see the data.

http://www.housingwire.com/articles/36111-appraisal-volume-starts-to-lose-momentum 

My comment: this report is posted every week. Please also see the MBA Weekly Mortgage Loan Origination volume report at the end of every weekly email newsletter, posted on Friday. Appraisal ordering follows originations, so MBA is slightly ahead of the a la mode report.

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POLL: Do you check to see if permits were pulled on remodeling on subject properties?

Source: www.appraisalport.com Vote in their current poll: 

Do you consider appraisal trade groups important to the industry?

My comment: A controversial topic. I’m not surprised at the results. However, if permits are online and free I don’t know why appraisers would not get them. In my city, free online records only go back to about 1970. Most of the homes were built before 1940. It costs $15.25 to get a full permit history and it can take up to a week to get it. The old records are a bit flakey, such as “remodeling” or something else very obscure. Lots and lots of unpermitted work in my city. But, in nearby cities with a lot of tract homes built since 1950, work without permits is not done very often. I was told by a lender’s chief appraiser many years ago not to pull permits so the borrower would “not get into trouble”.For quite awhile, I have been pulling the old permits when needed and run the online permits on all properties. In other cities, if something does not “look right”, such as an addition, I pull the permits. 

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

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Coming in the February 2015 Appraisal Today paid newsletter, available Monday, Feb. 1 

Adjustments, Part 1 – Are you making too many adjustments 

Huge change in supporting adjustments since Fannie’s CU started looking at them. State regulators also want to see adjustment support – don’t get sanctioned. Some reviewers want to see support. Etc. 

Some of the topics: 

– How are appraisers supporting adjustments?

– What are the most frequent adjustments?

– What are state appraisal boards looking for?

– What is CU looking for?

– Do adjustments really make a difference in the final value?

– Qualitative vs. Quantitative adjustments

– The best adjustment sources of information

Part 2 will be on types of adjustments. 

FREE TIP: 

NO ADJUSTMENT SUPPORT METHOD WILL WORK FOR ALL ADJUSTMENTS.  

Cancel at any time. For any reason!! 

To purchase the paid Appraisal Today newsletter  go to

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

$8.25 per month, $24.75 per quarter, $89 per year (credit card only),  

or $99 per year or $169 for two years (no credit card required)  

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If you are a paid subscriber and did not get the January 2016 issue, emailed Jan. 4, 2016, please send an email to info@appraisaltoday.com  requesting it and we will send it to you!! Or, hit the reply button. Be sure to put in a comment requesting it ;>

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Appraisal Institute falls victim to Twitter hack

Posted January 22, 2016, last Thursday

Excerpt:

Instead of tweets about the appraisal industry, tweets emanating from the Appraisal Institute’s account for the last 18 hours or so have more to do with Playboy Magazine, Hooters, David Hasselhoff, links to “sexy” videos, and other inappropriate tweets. 

Among other tweets, the hacked Appraisal Institute account tweeted out “to all staff and employees: because its so warm out today, you have to work an extra 2 hours pretending to do actual work” and “new company policy in effect: at social gatherings and events, having fun during such events is forbidden. Unless authorized.”

 As of last Friday: “It appears that the Appraisal Institute Twitter hacking of 2016 is now over, but we’ll always have the screenshots.”

Very interesting. All the old tweets were lost, except for re-tweets. See lots more, including some of the tweets at:

http://www.housingwire.com/articles/36086

 Comments from the Appraisal Institute: ” The Appraisal Institute’s Twitter account and YouTube channel were compromised last week. Twitter has since been restored, temporarily using the handle: @RealAI_National. We’re in the process of restoring our YouTube channel.” Regarding who did it: “We are investigating the matter and have no further comment at this time.”

 

My comments: I knew I shoulda re-subscribed to the AI twitter feed!! I originally subscribed in 2010 but have not been getting any tweets. I have never had any twitter feed I subscribe to get hacked… I think that the AI will get a lot of new Twitter subscribers, including me!! Subscribe to @RealAI_National. Currently 3,936 followers.  

At the bottom of the article is a comment post by Jason Constantine: “This was the work of one, former disgruntled employee with a shady criminal past. He was jaded because he was replaced with another programmer and wouldn’t take a background check. Can’t prove it but he’s hacked me several times in the past.” Makes sense to me. You don’t get much notoriety from hacking the AI. When you read the tweets in the article, it definitely sounds like an employee. Some are sorta funny ;             

 
To purchase the paid Appraisal Today newsletter  go to

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

 

 

AMC Fined Over C&R Fees

Excerpts:

The Louisiana Real Estate Appraisal Board (LREAB) has again taken action to ensure that Customary and Reasonable (C&R) Fees are being paid by AMCs and lenders in the state.

On December 8, 2015, after a hearing that lasted over 12 hours and was closely watched and attended by appraisers, AMCs, and lenders alike, the Board ruled against iMortgage Services, LLC and issued a Final Order that included a fine of $10,000 and a six-month license suspension. The suspension was stayed, provided that iMortgage provides a C&R compliance plan to the Board no later than March 21, 2016 

In contrast to Louisiana’s previous C&R enforcement action involving Coester VMS, where there was no admission of guilt by Coester, this is the first judgement against an AMC that leaves no question on the determination of guilt. The Board’s final order establishes that iMortgage failed to comply with Louisiana law and violated the C&R fee requirements set in place by the Board.

Demonstrating the glacial speed at which many state board investigations operate, the initial complaint against iMortgage was filed two years ago in January 2014 after iMortgage sent out an appraisal order for a full 1004MC FHA appraisal with a fee of $200. The investigation was not opened until May 2014, with the hearing taking place in December 2015.

My comment: Almost 300 postings at http://appraisersforum.com/ . Search for AMC Fined For Not Paying C&R Fees. Warning: lots of chit chat, etc, typical for AIforum Just wade through them to get to what you want. Comments also posted after the article. 

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Very interesting workingre article. Read more here:

http://www.workingre.com/AMC-fined-over-cr-fees 

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, go to www.mbaa.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/products.htm  or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

Mortgage applications increased 8.8 percent from one week earlier 

WASHINGTON, D.C. (January 27, 2015) – Mortgage applications increased 8.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 22, 2016.  This week’s results include an adjustment to account for the Martin Luther King holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 8.8 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 0.3 percent compared with the previous week.  The Refinance Index increased 11 percent from the previous week.  The seasonally adjusted Purchase Index increased 5 percent from one week earlier. The unadjusted Purchase Index increased 0.4 percent compared with the previous week and was 22 percent higher than the same week one year ago.

 

The refinance share of mortgage activity decreased to 59.0 percent of total applications from 59.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.9 percent of total applications.

The FHA share of total applications decreased to 12.7 percent from 13.7 percent the week prior. The VA share of total applications increased to 11.1 percent from 10.8 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) decreased to its lowest level since October 2015, 4.02 percent, from 4.06 percent, with points decreasing to 0.40 from  0.41 (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 3.89 percent from 3.93 percent, with points decreasing to 0.25 from 0.31 (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 3.83 percent from 3.86 percent, with points increasing to 0.38 from 0.36 (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 3.28 percent from 3.29 percent, with points decreasing to 0.37 from 0.39 (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 decreased to 3.09 percent from 3.20 percent, with points increasing to 0.34 from 0.18 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact mbaresearch@mba.org.

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

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8 weird houses!!!

I have written about some of these in the past. CNN has compiled 8 of them, including some I have never heard of!!

Here’s the list:
Pickle Barrel House Museum in Grand Marais, Michigan
Gold Pyramid House in Wadsworth, Illinois
Shoe House in Hellam, Pennsylvania
Winchester Mystery House in San Jose, California
Mary’s Gone Wild Glass House in New Brunswick, North Carolina
One Log House in Garberville, California
Beer Can House in Houston, Texas
House on the Rock in Spring Green, Wisconsin

Click here to read:
http://us.cnn.com/2014/08/11/travel/weird-houses/index.html?sr=fb081114weirdhouses6pStoryGalLink

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