Video – AMCs – fees, blacklists, etc.

By on May 11, 2014   /   AMCs, Appraisal fees, appraisers, blacklist   /   Leave a comment
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http://www.youtube.com/watch?v=QPQjJidp8b0

The topics include:
– Major restructuring of residential lender fees since HVCC
– AMC fees and how to make more money
– Consolidation and what it means for appraisers
– What is an AMC
– AMCs since 1969, when LSI started
Note: the fee discussions start at about 14 minutes

I have been writing about AMCs since 1992 in my paid Appraisal Today newsletter. My speaking style is much more informal than my writing style ;>

Phil Crawford, the host, is a certified general appraiser who has been appraising (residential and commercial) for over 15 years. He is a third generation appraiser. He has been doing interviews on a local Cincinnati real estate radio show for a few years. We are a good match!!

To see other radio shows, go to www.voiceofappraisal.com

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My first interview was in April, on Fannie Mae’s exclusionary list. To listen to this interview, and listen to the other shows, go to www.voiceofappraisal.com and scroll down the page to the video “E3: The Fannie Mae List!!”

Topics included:
– Why Fannie is using UAD data
– Fannie and Big Data
– How appraisers get on the black list
– Which appraisers are getting on the black list
– The future of Fannie’s Big Data

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10 reasons why public records and the appraiser’s square footage can differ

By on May 5, 2014   /   appraisers, square footage   /   2 Comments
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To keep up on what is happening in appraisal businesses, mortgage lending, USPAP, etc. , Plus humor and strange homes, sign up for my FREE weekly appraisal email newsletter, sent since June 1994. Go to Home on the left side of the menu at the top of this page or go to www.appraisaltoday.com
Sign up in the Big Yellow Boxes

I regularly write about hot topics in appraising and appraisal business management issues
in my paid Appraisal Today monthly newsletter.
$99 per year or (credit card only) $8.25 per month, $24.75 per quarter, or $89 per year.
For more info, go to https://www.appraisaltoday.com/products

10 reasons why public records and the appraiser’s square footage can differ

My comment: Too many AMCs think that the assessor’s office square footages are correct, and the appraisers don’t know how to measure. Unfortunately, some appraisers just “fudge” the measurements to fit the assessor’s records. Big Mistake!!

From Ryan Lundquist’s Sacramento appraisal blog at www.sacramentoappraisalblog.com

I love this blog!!

Here are 2 of the 10 reasons:

5. Permitted but not updated: Sometimes a homeowner will do an addition with a permit, but the Assessor’s office never updates the property’s profile.

8. Ceiling height: A ceiling has to be at least 7 ft tall, and have at least 50% of the ceiling at a height of 7 ft. Sometimes a converted attic won’t meet these requirements, so the appraiser cannot consider it as square footage. It might still add value, but it won’t be included in the living area.

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How accurate is the reported square footage from the tax records in your primary service area?(Opens in a new browser tab)

Top Ten Reasons Why It Is Great to be an Appraiser Humor(Opens in a new browser tab)

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Changes to Fannie's Selling Guide dated April 15, 2014

By on April 23, 2014   /   appraisers, Fannie   /   Leave a comment
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Fannie’s Selling Guide, which includes appraisal guidelines has been updated.

Be sure to use the new Selling Guide to find out what Fannie really says vs. what your client thinks Fannie says!!

Summary of appraisal changes

New or Updated Policies
Chapter B4

Some of the new requirements/changes:

Added the requirement that a front photograph of the subject must be taken when completing the Appraisal Update portion of the Appraisal Update and/or Completion Report (Form 1004D) to validate that the appraiser has inspected at least the exterior of the property when he or she performed the
appraisal update.

Unpermitted additions
If the appraiser identifies an addition(s) that does not have
the required permit, the appraiser must comment on the quality and appearance of the work and its impact, if any, on the market value of the subject property.

Older Comparable sales
Revised the policy by removing the requirement that an explanation is required when using a comparable sale that is older than six months

Provided an example to illustrate that in some instances it
may be appropriate to use older sales with proper time
adjustments rather than a dissimilar more recent sale.
An older sale may be more appropriate in situations when
market conditions have impacted the availability of recent
sales as long as the appraisal reflects the changing market
conditions.

Information related to Fannie Mae’s acceptance of unique
property types has been provided.

The definition/characteristics and the eligibility of an
accessory dwelling unit have been provided.

Be sure to use the new Selling Guide to find out what Fannie really says vs. what your client thinks Fannie says!!

Link to summary:
https://www.fanniemae.com/content/announcement/sel1403.pdf

Link to new Web based documents:
https://www.fanniemae.com/content/guide/selling/index.html

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Japan's disposable homes

By on April 8, 2014   /   appraisal, appraisers, unusual home   /   2 Comments
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During my morning walks, I listen to podcasts. One of my favorites is Freakonomics Radio (Yes, the same guys that wrote the book)
I recently listed to a podcast where they analyzed Japan’s very unusual home sale market. They consider many homes to last about 20 years (economic life) and then they are demolished and new homes built.
A few excerpts from the summary of the podcast:
It turns out that half of all homes in Japan are demolished within 38 years – compared to 100 years in the U.S.  There is virtually no market for pre-owned homes in Japan, and 60 percent of all homes were built after 1980. In Yoshida’s estimation, while land continues to hold value, physical homes become worthless within 30 years. Other studies have shown this to happen in as little as 15 years.
In the podcast, we look into several factors that conspire to produce this strange scenario. They include: economics, culture, World War II, and seismic activity.
Richard Koo, chief economist at the Nomura Research Institute, has argued in a paper called “Obstacles to Affluence: Thoughts on Japanese Housing” that whatever the rationale behind the disposable-home situation, the outcome isn’t desirable…
My comment: Fascinating and worth listening to!! Very interesting for appraisers, especially.

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How accurate is the reported square footage from the tax records in your primary service area?

By on April 8, 2014   /   AMCs, appraisal, appraisal management company, appraisers, lender appraisals, square footage   /   20 Comments
Tags: ,

To keep up on what is happening in appraisal businesses, mortgage lending, USPAP, etc. , Plus humor and strange homes, sign up for my FREE weekly appraisal email newsletter, sent since June 1994. Go to Home on the left side of the menu at the top of this page or go to www.appraisaltoday.com
Sign up in the Big Yellow Boxes

I regularly write about hot topics in appraising and appraisal business management issues
in my paid Appraisal Today monthly newsletter.
$99 per year or (credit card only) $8.25 per month, $24.75 per quarter, or $89 per year.
For more info, go to https://www.appraisaltoday.com/products

How accurate is the reported square footage from the tax records in your primary service area?

3/10/14 poll – www.appraisalport.com
Poll Results
– Very accurate for most homes 869 votes – 16%
– Mostly accurate (about 75% of the time) 2495 votes – 55%
– Hit and miss (about 50% of the time). 1470 votes – 27%
– Not reliable (accurate less than 25% of the time). 475 votes – 9%
– The tax records do not usually show the square footage in my area. 127 votes – 2%
Total votes = 5,346
My comment: AMCs seem to be assuming that tax records are more reliable than appraisers’ measurements. WRONG!! I started appraising at an assessor’s office in 1975. We were no more accurate than any other appraisers and never thought that our square footages were exact.
I used to do a lot of relocation appraisals where 2 or 3 appraisers were hired to appraise the same property. Very, very seldom did the appraisers have the same square footage.
A few years ago, a local real estate agent asked me about an appraisal where the sketch did not match the house. Tax records sq.ft. was way off. The appraiser had “fudged” the dimensions to match public records.
Do many appraisers do this to avoid AMC hassles or they were taught to do this by their supervisors?
I have always looked at tax records sq.ft. as a cross-check, but never assumed it was more accurate than my measured sq.ft. In some neighborhoods and cities, they are accurate and are very unreliable in other areas as they often are not correct.
9/20 update. Not much has changed. Still a big problem!!

Appraisal Today newsletter

Generally speaking, how accurate do you find MLS data in your area?(Opens in a new browser tab)

10 reasons why public records and the appraiser’s square footage can differ(Opens in a new browser tab)

12-27-18 Newz:// Change Your Templates!!/Corelogic takeover?/Square footage?(Opens in a new browser tab)

6-7-18 Newz//Square footage, Novelty Architecture, Appraisal Fraud(Opens in a new browser tab)

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Former appraiser gets first pot license in WA

By on March 16, 2014   /   appraisers, marijuana license   /   1 Comment
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Excerpt:
His company’s name celebrates being too stoned to get off the couch, and he hopes to bring an ultra-potent “super joint” to market.

Meet Sean Green, chief executive of Kouchlock Productions and the proud owner of Washington state’s first legal-marijuana business license.

Green said he got involved in the industry after his decade-long career as an independent real-estate appraiser dried up. He took $10,000 and started Pacific Northwest Medical in Shoreline in 2011, later expanding to Spokane.

He plans to begin by growing 1,200 square feet of starter plants to provide to other growers as they become licensed. He expects to expand to growing marijuana buds for retail, with 30 to 50 employees. For now, he said he will also continue running his medical operations, though the Legislature is considering whether to bring medical marijuana into the same system as recreational pot.

My comment: I love the creative diversification!! Yes, I do have a California medical marijuana card…

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How many appraisers are left?

By on March 16, 2014   /   appraisers   /   4 Comments
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I like to use California as it has always included trainees. ASC.gov is ok but includes duplicate licenses.

1994: 16,000 total license appraisers
1999 11,000 total license appraisers
2007 20,000 total license appraisers
2014: 12,232 total licensed appraisers

3,343 certified general appraiser;
6,147 certified residential appraiser;
1,906 appraiser licenses and
836 appraiser trainees.
total 12,232 appraisers

Quite a change up and down. Reflecting the mortgage market, of course!!

Posted by appraiser Roy Villa. Thanks!!

There are still way too many left!!

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Appraisers' forecast for biz in 2014

By on January 31, 2014   /   appraisers, forecast   /   Leave a comment
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AppraisalPort Polls – 2014 biz forecast
www.appraisalport.com

Do you expect appraisal fees to change in 2014? January 6, 2014
Yes, increase substantially – 384 votes – 7%
Yes, increase slightly – 1,030 votes – 18%
Yes, decrease slightly – 420 votes – 8%
Yes, decrease substantially 230 votes – 4%
No, stay about the same – 3,227 votes – 57%
Not sure – 302 votes – 5%

Total Votes: 5,593

My comment: Looks like the majority of appraisers see stable fees. However, only a few weeks later, I am hearing reports of AMCs dropping fees, especially on broadcast orders.

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I think the business environment for appraisers in 2014 is going to be: (December 30, 2013)
Much better than 2013 – 212 votes – 4%
Better than 2013 – 516 votes – 9%
About the same as 2013 – 1,962 votes – 35%
Worse than 2013 – 1,781 votes – 32%
Much worse than 2013 – 621 votes – 11%
Too early to tell – 548 votes – 10%

Total Votes: 5,640

My comment: Looks like appraisers are unsure about 2014.
They left off my choice – I have no idea!!

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Positive Resolution to Chase AppraiserBlacklisting Saga

By on January 31, 2014   /   appraisers, blacklist   /   Leave a comment
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 Source: WorkingRE

Excerpts:
Nearly two years have passed since Working RE first reported the story of John Dingeman, an appraiser who faced the difficult choice of either violating USPAP’s Confidentiality Section or suffering the wrath of JP Morgan Chase by refusing. Finally, this holiday season, there is some good news to share.

In March 2012, Dingeman refused Chase’s initial request to discuss an appraisal with the bank because of the Confidentiality Section of USPAP.  Immediately following his refusal, Dingeman was placed on Chase’s Ineligible Appraiser List. Chase then filed a complaint against Dingeman with the Arizona Board of Appraisal. The complaint was promptly dismissed and found to be without merit.

The good news? After battling for over a year, Dingeman recently learned that he has been removed from Chase’s “Ineligible Appraiser List.”  He’ll be the first to tell you that it didn’t happen without a fight.

http://www.workingre.com/blacklist-positive-resolution-chase-saga/

My comment: I am not a lawyer and don’t play one on TV, so I don’t know what it means legally. But, it is great to see an appraiser winning!! I do know that many appraisers refuse to work for Chase because of this and many other problems.

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