What are the best AMCs for Appraisers?

Newz: AMCs,  Appraisal Institute Is Accused of Cover-ups, Appraisal’s Perfect Storm

May 9, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Can’t Complete Appraisal with Access Denied
  • Choosing the Right Appraisal Management Companies (AMCs): A Guide for Appraisers
  • Staggering $900K Glass Lake House in Oklahoma Surfs to the Top of the Most Popular Homes List
  • Wildly Inappropriate Behavior’: Appraisal Institute Is Accused of Cover-ups
  • 5-minute YouTube video, posted yesterday by Cindy Chance, former AI CEO regarding her lawsuit that was filed May 8
  • Appraisal Institute’s Harassment, Tests, and Dance with AMCs
  • #MeToo And Testing Fraud Applies To Appraisal Industry’s Largest Trade Group
  • Pulte defends his authority as board chairman of Fannie, Freddie
  • Upheaval at mortgage regulators leaves questions for lenders
  • The Appraisal Profession’s Perfect Storm: A Veteran’s Take on a Dying Craft
  • Mortgage applications increased 11.0 percent from one week earlier

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

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

———————————————————————————

Choosing the Right Appraisal Management Companies (AMCs): A Guide for Appraisers

Excerpts: Today a large percentage of residential real estate valuations are coordinated by appraisal management companies. For appraisers, working with AMCs is almost a necessity.

Let’s look at how appraisal management companies work, the pros and cons, and—perhaps most importantly — how to choose the right AMCs to partner with.

Additionally, we’re sharing insights from appraisers who answered our survey question, “What’s your best tip for working with AMCs?”

How to choose the right AMCs

To prevent challenges and ensure smooth operations, it’s crucial to select the right AMCs. We recommend taking the time upfront to find a few good AMCs that value your appraisal expertise, then building relationships with that smaller group.

Use the following steps to choose the best AMC partners for your appraisal business.

Step 1: Find AMC candidates

Step 2: Investigate each appraisal management company

Step 3: Narrow your list to select the best AMC partners

Tips from Appraisers

  • Prioritize communication
  • Ensure timely delivery
  • Be friendly and polite
  • Get to know the AMCs and their practices
  • Don’t sell yourself short

To read more, Click Here

My comments: Good article on AMCs. Worth reading. Includes appraiser comments. I wrote about how to evaluate AMCS in the monthly Appraisal Today. The most recent article, including a Client Rating Grid, is in the January 2025 article: “What are your best current and former AMC/lender clients?”

————————————————————————–

 

Staggering $900K Glass Lake House in Oklahoma Surfs to the Top of the Most Popular Homes List

Excerpts: 2 bedrooms, 2.5+ baths, 2,650 sq.ft., 5,227 sq.ft. lot

The three-story, contemporary lake house with a glass-encased first floor is on the market in Oklahoma for $899,900, offering a “one of a kind” opportunity to enjoy unrestricted views of the water—courtesy of its see-through design.

The kitchen is massive & the island is large enough to accommodate 8 barstools-the adjoining living space has a large additional space Upper level is cozy and private to enjoy tranquility of your surroundings and views for days! The upper level boasts the second kitchen with 5′ long workstation sink with Bertazzoni appliances including a 48” gas range. Kitchen opens to a living space with amazing views!

To read more and see photos in the listing, Click Here

————————————————————————–

Wildly Inappropriate Behavior: Appraisal Institute Is Accused of Cover-ups

New York Times

By Debra Kamin

Debra Kamin interviewed more than 20 appraisers and former staff members of the Appraisal Institute, and obtained a confidential legal settlement, text messages, emails and internal reports about testing materials.

The Appraisal Institute faces concerns that one of its leaders has a history of harassing women and that it did not disclose that some certification exams were incorrectly scored.

Cindy Chance, left, a former chief executive of the Appraisal Institute, sued the trade group on Thursday, claiming sexual harassment and retaliation. Her suit follows that of Alissa Akins, …, who says she was fired after blowing the whistle on errors in the tests used to train and certify appraisers.

All the harassment accusations inside the Appraisal Institute are against one man — Craig Steinley, 64, a former president and the current vice president of the trade group, who denied the allegations.

“There is a culture of sexual harassment, cronyism and good old boys,” said Sandra Winter, 62, who first joined the board of the Appraisal Institute in 2012.

The Appraisal Institute and Mr. Steinley did not immediately respond to requests for comment on the lawsuit on Thursday.

My comments: I subscribe to the New York Times and read the entire article. I included short excerpts but cannot include a link. The “fair use” rule of copyright law allows me to use brief excerpts. The article below by Jonathan Miller has a “gift” link to the full article.

As I have said many times, I am a member because my MAI designation is very valuable. Also, I have an excellent AI local chapter which is definitely pro-residential.

I don’t have a positive opinion of the AI (Appraisal Institute), which was formed from the merger of the American Institute of Appraisal (AIREA) and the Society of Real Estate Appraisers (SREA). I belonged to both organizations. AIREA was primarily MAIs. In the past, most res appraisers were wives of the MAIs. SREA was primarily residential. After unification, MAIs took over. Less was done for res appraisers and many quit, giving up their SRA residential designations. I am a former President of the East Bay Chapter of SREA. I really liked SREA. This current mess makes it much harder for me to remain a dues paying member. AIREA was and AI is definitely run by the “Good Old Boys”.

I started appraising in 1975. At that time, residential was considered “inferior” to commercial. It continues today at the AI. Cyndi Chance was very pro-residential. She was fired. I got the message. Few women have been AIREA or AI presidents. I got the message. The current AI president is a woman, Paula K. Konikoff.

After AIREA and SREA merged into the AI I was active on a national committee for about 6 months. I did not care for how the organization was run. Quitting the Appraisal Foundation in the past was the first bad move. Firing Cyndi Chance. The Steinley mess above. I am not at all surprised that the issues were not handled well by the AI. As a member, I have not heard any explanations from the Executives or the Board of Directors.

———————————————————————-

Link to a short, 5-minute YouTube video, posted yesterday by Cindy Chance, regarding her lawsuit that was filed yesterday against A.I. & Craig Steinley. To watch the video, Click Here

Per the video “This is my statement regarding the influence of REVVA, the AMC lobbying organization, on the Officers of the Appraisal Institute based on their behaviors leading up to my dismissal.”

My opinion: The video is about AI and AMCs. There are many different opinions on all these AI issues. I don’t think any members know about what really happened. The AI Board of Directors has never provided any explanations to members.

———————————————————————-

Appraisal Institute’s Harassment, Tests, and Dance with AMCs

April 9, appraisersblogs.com

Excerpts: The Appraisal Institute’s latest chapter is a double dose of harassment woes — harassment allegations rocking its leadership and the systemic harassment of appraisers by AMCs, all under a scandalous spotlight.

AI’s President Paula Konikoff quickly countered with a promise of investigation, claiming the article doesn’t reflect their true colors, while vowing to battle Akins’ lawsuit and shrugging off the testing fiasco — because who needs accountability when a polished PR statement will do? Meanwhile, a petition on Change.org, launched by Alison Arms, demands Steinley’s removal from the executive board, citing the reputational and financial toll of his alleged actions — a clear signal that the rank-and-file have had enough of this unfolding drama.

I did not have time to do more excerpts.

To read the post and the lawsuit, Click Here

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

#MeToo And Testing Fraud Applies To Appraisal Industry’s Largest Trade Group

By Jonathan Miller

Note: This article has a “gift” link to the original New York Times article above.

  • Appraisal Institute Is The Perfect Comp For NAR’s Bad Behavior
  • Former Appraisal Institute President Files Lawsuit Over Her Termination
  • Missing Ethics In The Appraisal Industry’s Largest Trade Organization

A while back, I wrote that the Appraisal Institute (AI) was the perfect comp for NAR’s bad behavior. Today’s blockbuster New York Times story Appraisal Trade Group Accused of Covering Up Sexual Harassment and Test Flaws (gift link), shows how right I was about the organization’s lack of ethics.

This was just illustrated by AI leadership in March with litigation over the cover-up of incorrect exam testing scores.

I’ve been writing about AI’s self-dealing for about eight years here on Housing Notes and have been personally threatened and smeared by those in the cult. I have painstakingly documented how AI ignores its residential membership, and how its leadership takes pointless first-class flights to Europe and China on the dime of the hard-working membership.

I should point out I am not a member but deeply care about the damage AI inflicts upon the industry I love. In addition to this new evidence of bad behavior, the industry’s largest trade group has fewer members than they claim (after removing all the non-paying deceased members) and seems to be quickly running out of money. An audit would confirm this, especially a forensic audit, but AI steadfastly refuses to permit anything other than a ‘sure, that’s the ticket!’ review of their financial dealings.

However, regarding the matter at hand, there are many female victims of unchecked behavior in their leadership. What a tragedy for the victims and the entire industry. Expect annual membership dues to rise sharply as membership falls more quickly. No disrespect meant to their hard-working membership, but does having an MAI or SRA designation tangibly mean anything now?

However, regarding the matter at hand, there are many female victims of unchecked behavior in their leadership. What a tragedy for the victims and the entire industry. Expect annual membership dues to rise sharply as membership falls more quickly. No disrespect meant to their hard-working membership, but does having an MAI or SRA designation tangibly mean anything now?

To read more, Click Here

This article has the link to the lawsuit. Search for Lawsuit, down the page.

———————————————————————–

Are you getting too many ad-only emails?

4 ways to get only the FREE email newsletters and NOT the ad-only emails.

1. Twitter: https://twitter.com/appraisaltoday Posted by noon Friday

2. Read on blog www.appraisaltoday.com/blog Posted by noon Friday. You can subscribe to the blog in the upper right of each blog page. NOTE: the popular ads with liability tips are below the first topic on my blog posts.

3. Email Archives: https://appraisaltoday.com/archives

(posted by noon Friday) The link is above and to the left of the big yellow email signup form. Newsletters start with “Newz.” Contains all recent emails sent.

4. Link to the 10 most recent newsletters (no ads) at www.appraisaltoday.com. Scroll down past the big yellow signup block. The newsletters have abbreviated titles, taken from their blog posts.

To read more about the 4 ways, plus information on why I take ads, etc.

Click here

————————————————————————-

ABOVE IS A SAMPLE FROM THE 212 PAGE NEW URAR CLASS HAND OUT OF EXPLANATION OF THE QUESTION ON BROADBAND

Review of Appraiser’s Guide to the New URAR Class

In the May 2025 issue of Appraisal Today

Excerpts: This is my second article on New URAR. The April issue had the first article, New URAR, What It Means for Appraisers. The June issue will compare the new URAR with the current forms.

The 112 page PDF document “Appraiser’s Guide to the New URAR”

handout with 275 slides, provided only to attendees is a “must have” to learn about the New URAR. Mandated use is November 2, 2026.

Using a tablet, such as an ipad, is strongly recommended

Per the instructor only one third of residential appraisers are using a tablet or

other mobile device. I don’t think the New URAR app will work on a smartphone. Way too many fields to fill in.

The instructor recommended hiring a young trainee who can help you learn

it, if needed.

If you are not using a tablet, I recommend practicing now with your forms

vendor’s current app to get used to using a tablet. When your software vendor has the new app ready to be used, you will have practiced on a much smaller app for the current forms.

What will software vendors do?

Instructor said a lot depends on what each software vendor does. They will

have classes to teach you how to use their new Report software. I am not sure when they will have them ready.

Should you prepare for the class?

The 112 page PDF document “Appraiser’s Guide to the New URAR” is a good idea, if only skimming the topics. That is what I did before the class and it helped. The class material is almost overwhelming.

To read the full articles with much more information, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.

Not sure if you want to subscribe?

Sign up for monthly auto renewal for $8.25!

Cancel at any time for any reason! You will receive a prorated refund.

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

or $99 per year or $169 for two years

Subscribers get FREE: past 18+ months of past newsletters

What’s the difference between the Appraisal Today free Weekly email newsletter and the paid Monthly newsletter? Click here for more info.Subscribe to Monthly NewsletterIf you are a paid subscriber and did not receive the May 2025 issue emailed on Thursday May 1 , 2025 please email info@appraisaltoday.com, and we will send it to you. You can also hit the reply button. Be sure to include a comment requesting it.

———————————————————————

Pulte defends his authority as board chairman of Fannie, Freddie

May 6, 2025

Excerpts: The FHFA head says the regulator is ‘essentially the board chair, the board itself, the stockholders’.

Bill Pulte, director of the Federal Housing Finance Agency (FHFA), had previously been tight-lipped about his reasoning for ousting 14 board members at Fannie Mae and Freddie Mac and installing himself as chairman of both boards on March 17, shortly after assuming office as chief regulator of the government-sponsored mortgage giants.

But during a Tuesday appearance on Fox Business, Pulte asserted that the FHFA has the authority to dictate board matters at Fannie and Freddie.

“We got rid of a bunch of different board members, and we basically are exerting the authority that the U.S. federal housing (agency) has and has always had,” Pulte said. “It’s always been essentially the board chair, the board itself, the stockholders. And really what we’re trying to do is run these things as businesses.”

To read more, Click Here

My comments: Who knows what will happen and, more important, how appraisers are affected.

————————————————————————–

Upheaval at mortgage regulators leaves questions for lenders

Excerpts: A prominent mortgage industry attorney spoke with Scotsman Guide about ongoing turmoil at the CFPB, Fannie Mae, Freddie Mac and other regulators.

In its first months in office, the Trump administration aggressively made changes at all levels of the federal government, including to the mortgage and housing industry regulators. Bill Pulte, new Federal Housing Finance Agency (FHFA) director, fired most members of the Fannie Mae and Freddie Mac boards and then appointed himself as chair of both.

Russell Vought, Consumer Financial Protection Bureau (CFPB) acting director, was accused of trying to reduce the agency to “five men and a phone” amid a spate of firing. The Federal Housing Administration (FHA) jettisoned policies aimed at preventing appraisal bias and the U.S. Department of Housing and Urban Development (HUD) canceled fair housing grants.

To read more, Click Here

My comments: Who knows what will happen and, more important, how appraisers are affected. Of course, we all want to stop the alleged appraisal bias requiring us to take more bias classes, including a long section in the current USPAP class.

————————————————————————–

The Appraisal Profession’s Perfect Storm: A Veteran’s Take on a Dying Craft

by Desiree Mehbod

May 2, 2025 Opinion Post.

Excerpts: The new UAD form, the AMC fee gouging, the waivers, the false bias claims – it’s a perfect storm of assaults.

I’ve been an appraiser since 1993, back when fax machines were cutting-edge and the internet was a clunky novelty. Over three decades, I’ve seen this profession weather storms — economic crashes, regulatory overhauls, you name it. But what’s happening now? It’s not a storm; it’s a tsunami. Our industry is hemorrhaging talent, drowning under false accusations, and getting squeezed by corporate greed and bureaucratic overreach.

As someone who’s stubbornly refused to bend the knee to Appraisal Management Companies (AMCs), I’m here to lay it all bare — the numbers, the betrayals, and the sneaky maneuvers threatening to bury us. Buckle up; this is an opinion piece from the front lines, and I’m not holding back.

The last few years have been a masterclass in how to alienate an entire profession. Take the Biden administration’s push, amplified by legacy media, to paint appraisers as racists. The National Fair Housing Alliance (NFHA), flush with millions in federal cash, ran misleading ads that vilified us, sowing mistrust without a shred of courtroom-proof guilt. Not one appraiser has been convicted of bias, yet the accusations flew. Some, like Shane Lanham, are hitting back with defamation lawsuits, but the damage is done.

Then there’s the AMC racket, a parasitic middleman scheme that’s not only bled appraisers dry but also siphoned a staggering $12 billion from homebuyers, as the Appraisal Regulation Compliance Council (ARCC) uncovered. I’ve written about their lack of fee transparency — a polite way of saying they’re skimming our earnings while appraisers scrape by.

I’m still here, though, because I believe in the craft. There’s something noble about walking a property, piecing together its story, and delivering a number you can stand behind. But the powers that be seem hell-bent on making that impossible. The NFHA’s funding may have dried up under Trump, but the scars remain.

The push for automation and deregulation isn’t slowing down. And those AMCs? They’re still laughing all the way to the bank. If we don’t start valuing appraisers — our expertise, our objectivity, our grit — this profession won’t just shrink; it’ll vanish. And when it does, don’t be surprised when the housing market feels the full force of this perfect storm.

To read more plus over 80 appraiser comments so far, Click Here

My comments: Worth reading from a knowledgeable appraiser. The author is the founder of Appraisersblogs.com. I frequently post links to their blog. I like their very creative images also!

I have seen a lot of changes in my 50 years of appraising. When I started my business in 1986 I did commercial and residential appraisals and non-lender appraisals. I did res lender appraisals for 20 years and quit in 2005 (too much volatility in business volume). I had lender clients I liked who paid well. The only time I was questioned was when I forgot to put the value in and other typos. I was very lucky. I missed the chaos of 2008 – AMCs, fees, etc.

————————————————————————–

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, Click Here.

Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: We are all waiting for rates to drop in 2025.

Mortgage applications increased 11.0 percent from one week earlier

WASHINGTON, D.C. (May 7, 2025) — Mortgage applications increased 11.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 2, 2025.

The Market Composite Index, a measure of mortgage loan application volume, increased 11.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 12 percent compared with the previous week. The Refinance Index increased 11 percent from the previous week and was 51 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 11 percent from one week earlier. The unadjusted Purchase Index increased 12 percent compared with the previous week and was 13 percent higher than the same week one year ago.

“The economic news last week included a negative reading for first-quarter GDP growth and further signs of contraction in the manufacturing sector, mixed with a solid employment report for April. The net impact on mortgage rates was mostly downward but just back to levels from early April. The 30-year fixed rate declined to 6.84 percent,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Conventional purchase application volume increased 13 percent and was up 9 percent from year-ago levels, a surprisingly strong move given lingering economic uncertainty. Borrowers of conventional loans tend to have larger loan sizes and more apt to be move-up buyers. Government purchase loans were also up 6 percent for the week, led by a 9 percent growth in FHA purchase applications.”

Added Fratantoni, “With rates moving lower, refinance volume increased 11 percent, led by VA refinance applications, which were up 26 percent.”

The refinance share of mortgage activity decreased to 37.1 percent of total applications from 37.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.3 percent of total applications.

The FHA share of total applications decreased to 16.4 percent from 16.7 percent the week prior. The VA share of total applications increased to 13.3 percent from 13.1 percent the week prior. The USDA share of total applications decreased to 0.5 percent from 0.6 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.84 percent from 6.89 percent, with points increasing to 0.68 from0.67 (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 $806,500)decreased to 6.86 percent from 6.88 percent, with points decreasing to 0.46 from 0.60 (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 6.56 percent from 6.61 percent, with points increasing to 0.87 from 0.86 (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 remained unchanged at 6.17 percent, with points decreasing to 0.65 from 0.76 (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 increased to 5.97 percent from 5.89 percent, with points decreasing to 0.31 from 0.63 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.

 

Ann O’Rourke, MAI, SRA, MBA

Appraiser and Publisher Appraisal Today

1826 Clement Ave. Suite 203 Alameda, CA 94501

Phone: 510-865-8041

Email:  ann@appraisaltoday.com

Online: www.appraisaltoday.com

Time Adjustment Changes for Appraisers

Newz: Time Adjustments, 2025 ASC Appraiser Data Analysis, Fannie Fraud

April 25, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad – Weather Impact
  • I Went Down to the Crossroads – Time Adjustments By Tim Andersen, MAI
  • Occidental Treehouse Named California’s Most Wish-Listed Airbnb
  • Analysis of 2025 ASC Appraisal License Data By Chase Pursley
  • Fannie Mae Fraud and Abuse Exposed By Jeremy Bagott, MAI
  • Appraiser Growth and Profitability: Key Things to Focus On By Isaac Peck, Publisher
  • Mortgage applications decreased 12.7 percent from one week earlier

————————————————————————————————

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


—————————————————————————————-

I Went Down to the Crossroads

Time Adjustments

By Tim Andersen, MAI

Excerpts: Is real estate appraisal, with the issue of more detailed time adjustments, at another cross roads now? In the past, appraisers simply smoothed changes in sales prices over time by measuring prices as of January 1st, then again as of December 31st. If they went up an average of six percent (6%) annually, then the appraiser made a one-half percent adjustment each month.

This protocol inflates prices at six percent (6%) per year, true. But it does not reflect the fact that for the first three quarters of the year prices may have increased at twelve percent (12%) per year, then in the last quarter went flat with a zero percent (0%) price change.

In this example, consider that a comparable sale going under contract at the beginning of the fourth quarter of the year would merit no time adjustment whatsoever. Nevertheless, the appraiser using the smoothing technique will adjust that sale upward at one-half percent per month over a time span when the market is actually flat. That appraiser is merely filling forms, not appraising. How so?

To read more, Click Here

My comments: Very good article on the “new” time adjustment techniques. Interesting music analysis and how it applies to appraising.

—————————————————————————————-

Occidental Treehouse Named California’s Most Wish-Listed Airbnb

Excerpts: Nestled among towering redwoods in western Sonoma County, the Spectacular Spyglass Treehouse in Occidental has earned the title of California’s most wish-listed Airbnb, part of the vacation rental platform’s roundup of top-trending stays in each U.S. state.

Perched high in the forest canopy, the Spyglass Treehouse — designed and built by Artistree Home — offers guests the rare chance to sleep among the redwoods without sacrificing luxury.

The one-bedroom retreat features a king-size bed, high-speed Wi-Fi, floor-to-ceiling windows with panoramic forest views, a cedar hot tub and an indoor infrared sauna.

To read more, Click Here

My comments: A cabin near the redwoods was one of the first places I lived after moving to San Francisco from Oklahoma in 1968. I became fascinated with redwoods. Very close to my cabin was a small redwood grove. I used to go there and lie down to watch the trees. Later I traveled and saw redwoods that were much larger. I am now living about 5 miles from redwood groves to visit

Read more!!

Appraisers and Firearms

Newz: Appraisers and Firearms,Future of Home Finance and GSEs, Q1 2025 Fannie Mae Appraiser Update – New URAR

April 4, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: A Family Feud and Intended Use
  • Experiences with Firearms as an Appraiser: When Tenants Behave Unexpectedly in “Their Area”
  • Billionaire Opendoor Founder’s Three-Winged ‘Propeller Home’ Hits the Market for $40 Million
  • Appraisal Institute Scandal – Widespread Fraud Uncovered
  • Housing Market Shows Early Signs of Spring By Kevin Hecht, SRA
  • Reshaping Home Finance: The Future of Fannie Mae, Freddie Mac, and U.S. Mortgage Policy By Rob Chrisman
  • Originator jobs; Stated income loans; DOGE shifts its attention; Fannie lawsuit; clear path for rates By Rob Chrisman
  • Q1 2025 Fannie Mae Appraiser Update! – New UAD Sample Reports and Ratings, Time Adjustments
  • Mortgage applications decreased 1.6 percent from one week earlier

 

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

——————————————————————————–

————————————-

Experiences with Firearms as an Appraiser: When Tenants Behave Unexpectedly in “Their Area”

Excerpts: Appraisers often find themselves in a wide variety of settings and situations. I mean, we are entering people’s homes, somewhere that most people see as their comfort zones and a place they are not open to having a stranger poke around in. We as professionals understand this and usually try to make it as quick and painless as possible. There are those moments where it turns into a “memorable experience” and homeowners or tenants feel like they must make it known we are not welcome.

I personally am batting .1000 this year on multi-family properties, where tenants have felt it was necessary for me to get the message, by brandishing a firearm. I will share the following two situations, how I personally managed it, explain why I do not personally carry a concealed firearm, and ask you readers to tell me if this is common or for similar memorable experiences.

For more information and to read the appraiser comments, Click Here

My comments: My first appraisal-related job was with the Monterey (California) County Assessor’s office. It was transitioning to computerized valuation. I was a temporary “appraiser assistant” hired to go to properties to see if the county appraisal records needed updating.

In those days (mid-1970s), properties were reappraised regularly to increase the assessments and property taxes were increased.

I knocked on the door and was met with a man carrying a shotgun. He said: Go away assessor! I don’t remember the city, but it was not in a rural area. I left and told my supervisor to find someone else to do the inspection.

I have never owned a firearm and would never carry one. No one I knew owned a firearm except for my husband, who had firearm training when he was teaching horticulture at a state prison. I would not allow a firearm in our house but still keep a baseball bat by my front door “just in case”.

But, recreational firing at a target was on my “bucket list”. An appraiser friend took me to a local firing range. I tried handguns, rifles and shotguns. Some worked like machine guns with many bullets fired at one time. I really liked it the best. Next time I go to Las Vegas I will try out real machine guns. Trying to hit a target did not appeal to me. Ya never know until you try!

Of course, I have had many encounters with dogs. One was when I was appraising the house of an appraiser I knew. I was met with small dogs biting my ankles. When the owner put the dogs away I continued with the appraisal. Another time, in a rural area, 3 large Dobermans broke down the door of a mobile home and ran toward me. I managed to get in my car. I told the lender to get another appraiser.

When markets crashed I did a lot of foreclosure appraisals. I made a lot of noise opening the door and loudly saying I was an appraiser for the lender and needed to come inside. I never had a problem. But some appraisers requested that a police officer accompany them when the home looked “sketchy” to them from the outside.

Read more!!

Appraisal Time Adjustments

Newz: Time Adjustments, Fannie Condo “Blacklist”, Future of GSEs?

March 28, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Navigating Value Revisions
  • On Time Adjustments By Timothy Andersen, MAI
  • 19.5 Million Arizona Airpark Mansion Boasts Private Jet Hangar, Indoor Shooting Range, and 11 Bathrooms — but Only 3 Bedrooms
  • Pulte has no plans to lower conforming loan limits for Fannie and Freddie
  • Fannie Mae’s Condo “Blacklist”
  • FHA rescinds mortgage appraisal policies aimed at countering bias (update on last week’s newsletter topic)
  • Fannie, Freddie face uncertain futures, potential jobs cuts
  • Mortgage applications decreased 2.0 percent from one week earlier

———————————————————————————————

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

——————————————————————————–

—————————————————–

On Time Adjustments

Timothy Andersen, MAI, MSc., CDEI, MNAA

Excerpts: Typically, this time starts when the comparable goes under contract, then ends on the effective date of the appraisal. If the market has measurably changed over that period, that change means the appraiser should market-adjust the comps up- or downward, as the market demands¹.

This analysis reveals yet another dilemma. For example, to conclude prices went up twelve per cent (12%) per year is a simple average increase of one percent per month, or a daily factor of (0.12 ÷ 365 =) 0.000329. This simplistic analysis means that for a sale that went under contract at $400,000 42-days ago, the increase factor would be $400,000 X 0.000329, or an increase of $131.51 times 42-days or $5,523. This rationale is mathematically correct.

But our training must govern here and force us to ask the question, “Does this adjustment protocol reflect current market verities?” If not, then following this protocol is, in effect, to guess at a time adjustment. To guess at the time adjustment is to fail to reflect market trends truly and correctly. To fail to reflect them truly and correctly in the final value opinion is to mislead the client. See the dilemma?

Does USPAP² offer any advice on this issue? No. USPAP does not even use the word adjustment (or any of its derivatives) until AO-13.

To read more, Click Here

My comments: Good analysis of the current time adjustment issues. Using only an annual increase (Like most of us were trained to do) is not very accurate. Tim writes, teaches USPAP and advises appraisers on how to do better reports. He is a USPAP Expert. Tim is a regular contributor to the monthly Appraisal Today.

Read more!!

Finding Comps with Few Sales for Appraisers

Newz: Pulling Comps in 2025, Appraiser Union? AMCs Overcharging Consumers

March 7, 2025

  • What’s in This Newsletter (In Order, Scroll Down)
  • LIA ad: Problem with An Affidavit
  • The struggle of pulling comps in 2025 By Ryan Lundquist
  • Op-Ed: Why An Appraiser Union Would Never Work By Dustin Harris
  • The Full Measure: February 2025 Housing Market Snapshot for Appraisers By Kevin Hecht
  • The Trump Administration’s Regulatory Overhaul: The Impact on CFPB, FHA, and the Housing Industry By Rob Chrisman
  • Homebuilders Warn of Rising Building Costs as Trump’s Tariffs on Canada and Mexico Take Effect By NAR
  • AMCs Overcharging Consumers? Morgan & Morgan Investigates
  • Mortgage applications decreased 1.2 percent from one week earlier

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

 

——————————————————————-

 

———————————————————————————-

The struggle of pulling comps in 2025

By Ryan Lundquist

Excerpts:

1) SALES TELL US ABOUT THE PAST

Comps aren’t easy today. The problem is there aren’t that many sales, so it’s not so simple to figure out value. Lately, I’ve been getting a ton of questions about this, so I wanted to share some things I’m doing on my end….

2) TWO OPTIONS TODAY

We have two choices for comps. Go back further in time in the immediate neighborhood, or go out further to competitive areas. Why not do both?…

3) HOW FAR AWAY CAN YOU GO FOR COMPS?

It’s not how far you can go, but where you should go. Read that again. This is true in any market. And where would buyers go for comps? That’s also a viable question. No matter where you’re getting comps, be sure they are a good substitution…

To read lots more plus see graphs and read appraiser comments, Click Here

My comments: Read This Article! Few sales are common in many areas. I prefer going back in time. I have been doing time adjustments since 1975, when prices were going up 5% per month in a semi-rural Northern California county. The GSEs seem to be making it way more complicated. I do them on every appraisal. If not needed, I always comment that the market is stable. It is the only adjustment I make on my non-lender appraisals, except for features that are unusual.

I have no idea why the GSEs complain that many appraisers are not doing them when needed. Maybe the appraisers never learned how? Many dollar adjustments are needed on the grid and can be much more difficult than time adjustments.

Read more!!

Appraisers: Advice On Staying Current

Newz: AMCs Fee Skimming Lawsuit, Appraising a Hobbit Hole

February 28, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA ad: Disclosing Identity of Complaining Party
  • On Staying Current By Timothy Andersen, MAI
  • Futuristic $177 Million Bel-Air Megamansion With Its Own Private Jazz Club Hits All the Right Notes
  • Appraising a Hobbit Hole: The Property Value of Bag End
  • AMCs Deceptive Fee Skimming Exposed in Lawsuit
  • The 10 Most Expensive Home Listings and Home Sales in the U.S.
  • February 21, 2025
  • Mortgage applications decreased 1.2 percent from one week earlier

———————————————-

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

————————————————

 


On Staying Current

By Timothy Andersen, MAI

Excerpts: In this monograph, we discuss the absolute necessity of developing more than one skill set as part of becoming a competent and professional real estate appraiser.

Real estate appraising is a complex practice that requires a diverse range of skills and knowledge, from understanding current market conditions to understanding and interpreting complex legal and financial documents. If you want to be your own boss, it also requires business acumen.

At its core, real estate appraising involves the due diligence necessary to form a credible opinion of the market value of a particular property. This requires a deep understanding of the appraiser’s local real estate market, as well as of the physical, legal, and economic factors that influence property values in it. However, becoming a successful real estate appraiser requires more than mere market knowledge.

It also requires a range of other skills, including the ability to conduct thorough research, analyze mountains of data, communicate persuasively and effectively with and to other professionals, and manage complex projects. These are all aspects of being an appraiser they do not teach us in appraisal school.

Most importantly, successful appraisers must adapt to changing market conditions and trends. Currently there are so many of these ongoing, especially as the GSEs are about to inaugurate UAD-2 to replace their archaic appraisal reporting forms. This means continually learning and developing new skills to stay ahead of the curve.

To read more, Click Here

My comments: Good analysis of appraising. I have been appraising for 50 years and I still love it. I am easily bored, but every property is different and market conditions change regularly where I work. I am always learning something new.

If this seems overwhelming to you or other post-licensing appraisers, it is not your fault. Unfortunately, after licensing started many trainees hired other trainees. Almost all had poor training and classes. I was unable to refer wannabes to professional associations as they only wanted classes for members, not for new appraiser. Changing what you learned when you started is very difficult to do. I was very fortunate as I started before licensing and had very active local chapters of AIREA and SREA predecessors of the Appraisal Institute. The appraisers I met had lots of experience. They helped me whenever I had any questions. I learned how to lender appraisals plus many types of non-lender appraisals correctly from them.

Read more!!

Appraisals and the Cost Approach

Newz: DEI and Appraisers, New GSE Market Analysis Deadline Feb. 4

January 31, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Weather Impact
  • What is the Cost Approach to Real Estate Appraisal?
  • ‘Unparalleled’ 3-Mansion Compound on Miami’s Exclusive Palm Island Splashes Onto the Market for $150 Million
  • DEI and Appraisers
  • Fannie and Freddie Forecasts

  • Fannie, Freddie: New Market Analysis Requirements February 4th

  • Mortgage applications decreased 2.0 percent from one week earlier

 

———————————————————————————–

What is the Cost Approach to Real Estate Appraisal?

By Kevin Hecht

Excerpts: When to Use the Cost Approach

There are circumstances when it’s necessary to use the cost approach, for example, unique properties and new construction. The cost approach can also be used to support the sales comparison approach.

Fannie Mae only accepts the sales comparison approach as its primary valuation tool. However, that does not preclude an appraiser from also using the cost approach to substantiate their findings. And there are other lenders who may accept the cost approach over other real estate appraisal methods for certain properties or situations…

Some Disadvantages of Using the Cost Approach

There are inherent benefits of using the cost approach, especially when you’re tasked with challenging properties that have little or no comps. But there are also some downsides.

One of the primary disadvantages is the assumption that land is available for purchase to build an identical property. Land is a scarce resource. When comparable land sales are not available, the value must be estimated.

The bigger issue here is undervaluing the land costs based on scarcity. In real estate, location is everything. A small ocean-front cottage has its value because of the land it sits on, not necessarily its four walls…

Other disadvantages include how to depreciate an older property or find costs for similar building materials. This can be particularly tricky when using the reproduction method of the cost approach or appraising a historic home.

Appraisers should consider whether the cost approach is the best tool to use. In many situations, it’s best used in tandem with the sales comparison approach.

Tips for Using the Cost Approach

As part of our monthly survey series, we asked our community of real estate appraisers, “What’s your best tip for using the cost approach to appraise?” They shared many helpful comments, including common pitfalls to avoid as well as general advice and recommendations. Here’s what they said:

“Use and research valuable comps and educate yourself on the surrounding market.”

“Call local developers for better support on cost estimates. Make friends with builders.”…

To read more, Click Here

My comments: When I saw the article topic I thought it would be boring. Not! When I read it I realized it was one of the best on the Cost Approach I have read! If you only do GSE appraisals, you probably don’t use the Cost Approach very often, except for new construction. This article explains when and why. It also includes “basic” info such as reproduction vs. replacement. Keep it as a reference for the future when you may need to use the Cost Approach.

When I first started appraising in a Northern CA assessor’s office in 1975, the Cost Approach was the only approached used for decades for all properties. My supervisor devised a table based on square footage for homes which we used.

In the Oakland CA firestorm in 2021, many of the homes had reproduction replacement in their insurance policies. Many were historic homes with features that were very difficult to reproduce, assuming you could find anyone who still knew how to build them. The home owners with reproduction costs got very large payments from their insurance companies. Many had larger homes built with sometimes very unusual designs. The insurance companies learned their mistake and never offered reproduction again.

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


 

—————————————————————————————-

3-Mansion Compound on Miami’s Exclusive Palm Island Splashes Onto the Market for $150 Million

Excerpts: 3 homes, 92,00 sq.ft. 300 linear ft. of water frontage

The pricey property, which initially debuted in 2023, was relisted in 2024 at the same price. Now, with Florida’s luxury housing market experiencing a major boom, the compound is back on the market with the same sky-high price.

“Potential buyers might include high-profile individuals like celebrities or CEOs, investors, entertainers or hosts, or luxury lifestyle seekers,” he tells Realtor.com®.

“This offering appeals to those who prioritize exclusivity and are willing to invest significantly for a unique, turnkey luxury compound.”

The trio of homes was assembled by owner Jorge Luise Garcia and the Adria, Maria, Adrian Almeida Trust. They were purchased separately over a period of 17 years.

The first of the three mansions was purchased in 2004 for $3.45 million, the second in 2019 for $13.9 million, and the third in 2021 for $17 million, for a total of $34.35 million, according to property records.

To read more, Click Here

Read more!!

Market Condition (Time) Adjustments for Appraisals

Newz: Appraiser Loses License, Fannie Market Conditions Deadline

January 17, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA AD: Your Role as a Judge’s Appraiser
  • Market Condition Adjustments: A Comprehensive Guide for Appraisers By Jim Amorin
  • The Crocker Mansion, New Jersey 50,000 sq ft $ $33,000,000
  • LA: Both Ends Burning By Jonathan Miller, Appraiser
  • How a Chink in Your Armor Can Create an Ugly Outcome by Richard Hagar, SRA
  • Colorado Revokes Appraiser’s License, $97,500 fine
  • Mortgage applications increased 33.3 percent from one week earlier

———————————————————————————————

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

——————————————————————————–

Market Condition Adjustments: A Comprehensive Guide for Appraisers

By Jim Amorin, MAI, SRA, AI-GRS

Excerpts: To effectively support market condition adjustments in line with recent Fannie Mae guidelines, appraisers can use a variety of market analysis techniques. These methods provide a solid foundation for demonstrating how changing market conditions affect property values over time. Below is a detailed explanation of each technique to ensure the adjustments are well-supported and align with market trends.

The goal is to make sure every adjustment is defensible, based on empirical evidence, and can withstand scrutiny from all stakeholders involved in the appraisal process. By applying these methods, appraisers can provide reliable, accurate valuations that reflect current market conditions and ensure the appraisal’s credibility and acceptance.

Author’s note: I may use time adjustments and market conditions adjustments interchangeably. This is shorthand that every experienced appraiser knows and understands – please don’t @ me

Market Condition Adjustments Illustration

Fannie Mae guidelines emphasize that adjustments made to comparable sales are based on market changes between the contract date of the comparable sales and the effective date of the appraisal. Depending on when the comparable sales occurred, adjustments can be positive, negative, or zero within the same appraisal report. Understanding these nuances is crucial for ensuring that time adjustments accurately reflect changing market conditions.

SEE GRAPH BELOW. FANNIE DOES NOT REQUIRE THiS TYPE OF GRAPH.

Additional Topics:

  • Paired Sales Analysis
  • Market Trends and Regression Analysis
  • Indexing Methods
  • CoreLogic’s Home Price Index (HPI)
  • S&P CoreLogic Case-Shiller Index
  • Use of Listings and Pending Sales
  • Subdivision or Neighborhood Analysis
  • And More

To read more, Click Here

My comments: READ THIS ARTICLE! Understandable with excellent illustrations. Goes over many topics. The best article I have read on this topic that is not too complicated and/or long.

—————————————————————

From Fannie: Lenders are encouraged to implement these appraisal policy changes immediately but must do so for appraisals dated on or after March 1, 2025.

Source:

© 2024 Fannie Mae SEL-2024-08 Selling Guide Announcement (SEL-2024-08) Dec. 11, 2024

Fannie Announcement:

Time adjustments in appraisals

“We added clarifying language to remind lenders and appraisers the use of home price indices (HPIs), statistical analysis, modeling, paired sales, or other commonly accepted methods are acceptable for supporting appraisal time adjustments. Fannie Mae encourages the use of these tools to provide supporting evidence for market trends and conditions.“

“Failure to make market-derived time adjustments when indicated by market data is an example of an unacceptable appraisal practice. Appraisal reports must summarize all supporting evidence and should include a description of the data sources, tools, and techniques used to determine the overall valuation. “

To read the Fannie notice: Click Here

Read more!!

Appraising Unique Homes

Newz: GSE Privatization, 2025 Forecasts, Unique Homes

January 10, 2025

What’s in This Newsletter (In Order, Scroll Down)

My comments on topics: This newsletter is long. Almost all the news items I have received are 2025 Forecasts, so I have included some of them in this newsletter.

    • LIA: Disclosing Identity of Complaining Party
    • Why Selling a Unique Home Is Challenging — and Can Leave Some Owners Feeling ‘Stiffed
    • 2025 Housing Market Predictions: Key Insights for Real Estate Appraisers The National View
    • Real estate trends to watch in 2025 – The Local View
    • Appraisal Industry Outlook Under Trump Administration
    • Will Homeowners Finally Sell in 2025? Here’s What the Experts Say, Amid a Glimmer of Hope
    • GSE Privatization A ‘Herculean Task’
    • Mortgage applications decreased 3.7 percent from one week earlier

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

—————————————————————————————


Why Selling a Unique Home Is Challenging — and Can Leave Some Owners Feeling ‘Stiffed’

Excerpts: When Ann Levengood decided to let go of her beloved double-dome home two hours outside of Seattle, she thought she did everything a seller needed to do to get a good price.

“We built a new garage and completely did the heavy work with a $50,000 new roof, new drainage, new retaining walls, landscaping (including removal of alder trees), interior was completely redone, new lighting, new skylights, you name it. We had zero tasks upon inspection,” she tells Realtor.com®

“The inspector had never seen such a clean house.” But when it came time to price the Poulsbo property, Levengood and her agent didn’t see eye to eye. While the proud owner wanted to price the house at $425,000, the cautious agent listed it at $339,000.

The problem? The house, with its double domes, was unusual.

Even so, the home took only two months to close a sale at full price, leaving Levengood with the lingering feeling that she had been stiffed. “I couldn’t even get agents to come out and see it,” she says.

Not only can it be more difficult to find the proper buyer for such a home, but it is also challenging to find comps.

To read more, Click Here

My comments: Worth reading the article. All appraisers appraise unique homes, which are often very challenging, especially for comps and market analysis. This article helps appraisers understand the difficulties in selling unique homes. I have never read about this important topic.

Read more!!

Construction Code Violations and Expertise Appraisals

Newz: Appraiser Humor, Mortgage Rate Changes, New GSE Time Analysis

January 3, 2025

What’s in This Newsletter (In Order, Scroll Down)

  • LIA – Code Violations and Expertise
  • Mortgage Rate History Since 1971 What about 2025?
  • Hurricane-Proof $600K Dome Home on Florida’s Space Coast
  • Lyle Radke of Fannie Mae with George Dell, SRA, MAI, ASA, CRE to discuss upcoming changes by the GSEs on Time Analysis
  • Backers of most U.S. mortgages (GSEs) have done little about climate risks
  • Top Ten Reasons Why It Is Great to be an Appraiser – Humor
  • Mortgage applications decreased 21.9 percent from two weeks earlier

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

—————————————————————–

————————————————————–

Mortgage Rate History Since 1971 What about 2025?

Excerpts: For many homebuyers, the last few years have felt like a perfect storm of challenges—soaring home prices and climbing mortgage rates colliding to limit affordability. It’s left many wondering if 2025 will finally calm the waters. Will rates dip low enough to bring some relief, or is another wave of increases on the horizon? While there’s no magic compass to navigate these market shifts, a look back at mortgage rate history can offer clues—and maybe even some hope for those waiting to make their move.

Despite the Federal Reserve’s 25-basis-point rate cut in November, mortgage rates have remained in the high 6% range, offering limited relief to borrowers. However, optimism persists in the market as many believe rates could continue to ease in the months ahead, potentially sparking renewed interest among buyers and homeowners.

While the history of mortgage rates provides valuable context, it’s important to recognize that average mortgage rates are just a benchmark. Borrowers with healthy credit profiles and strong finances often get mortgage rates well below the industry norm.

Current rates are more than double their all-time low of 2.65% (reached in January 2021). But if we take a step back and look at the history of mortgage rates, they’re still close to the historic average since 1971 of 7.73%

To read more and see the graphs and many links to more info, Click Here

Read more!!