Desktop appraisals okay for some Fannie Loans March 2022

Desktop appraisals okay for some Fannie Loans March 2022

Fannie announcement – About Desktop Appraisals

Beginning in March 2022, desktop appraisals will be an option for some loan transactions. This fact sheet provides high-level information on Fannie Mae’s requirements for desktop appraisals and answers some frequently asked questions. We’ll be adding information to the fact sheet, such as additional FAQs as needed.

Excerpts:

  • Use Form 1004 Desktop
  • Must include floor plan with interior walls.
  • The appraiser must have sufficient information to develop a credible report.

To read the fact sheet, click here

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Desktop Appraisal to Become the New Norm

by Isaac Peck, Editor, WorkingRe

Note: This article was written before the Fannie announcement above. 

Excerpts: A number of questions remain regarding how the GSEs will establish the eligibility criteria for what types of loans, transactions, and loan-to-value (LTV) ratios will qualify for these desktop valuations. For example, Thompson’s comments that such a move will provide relief on rural appraisals runs contrary to most conventional appraisal experience in the industry where appraisal waivers, hybrid appraisals, and other “alternative” valuation products have primarily been used in cookie-cutter, tract home neighborhoods where model-match comps are more readily available.

In fact, over the years many senior executives at the GSEs and at major lending institutions have acknowledged the need for traditional appraisals on rural properties—which are much more likely to have unique features and require more complex analysis.

There is also the question of whether the introduction of desktop appraisals will potentially lead to a broader range of alternative appraisal products into the mix. Given that some senior executives at Fannie Mae were predicting that hybrid appraisals would become mainstream by 2022, it is actually a little surprising that desktop appraisal assignments are the first alternative product to get a permanent place on the GSE’s valuation roster. Appraisers will just have to wait to see what the future holds!

To read more, click here

My comment: Interesting and worth reading about the background of Fannie’s change

Appraisal Completion Certifications – be careful

Appraisal Business Tips 

Humor for Appraisers

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

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

NOTE: Please scroll down to read the other topics in this long blog post on unusual homes, ANSI, Liability, appraisal business, Fannie, How to, mortgage origination stats, etc.

 

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Appraising New Construction: Guidance for Follow-Up Inspections

By: McKissock

Excerpts: Be completely honest.

Appraisers who mean well may classify a project as complete, even when work is still required. Don’t be lenient. If work is in progress or tasks are left undone, state that in your inspection documents. If you say work is complete and the lender releases funds, but the work is not done, you are liable if the builder doesn’t finish the project—and could face a law suit. Always report exactly what you see.

Remember that it’s not your job to tell the lender when to close a loan. It’s your job to report to the lender the progress on the home so that the lender can make an informed decision. Be very detailed in your reporting, include many pictures, describe the incomplete items and assign your estimated cost to complete them. Then let the lender decide what to do next.

The lender relies on you to confirm that the collateral is secure and that construction is complete. Don’t drop the ball when it comes to assessing both the level of completion and the quality of the construction. It’s your job to project the lender and borrower.

If you do new construction appraisals, read this.

To read more, click here

My comments: I quit doing new construction appraisals many years ago because of hassles over inspections and re-inspections and pressure to say it was completed. Also, getting correct sales price information from the subdivision office was sometimes difficult. Of course, the only new construction here is stacked condos or 3-4 story skinny townhomes!! Very little vacant land is available, and the land prices are high.

The January 2022 issue of the monthly Appraisal Today had an article: Construction Progress Reports by Claudia Gaglione, Esq. Liability advice and good examples of appraisers that got into trouble. See the ad below.

====================================================Email from Dave Towne, received at 11:24 PM (PST) last night

Subject: You’d better read this report from the ASC

My comments after the end.

Report title: Identifying Bias and Barriers, Promoting Equity: An Analysis of USPAP Standards and Appraiser Qualification Criteria

Because they were directed to do so, the Appraisal Subcommittee has produced an 80+ page report, which frankly and explicitly lays the blame for low market values of homes in ‘communities of color’ directly at the feet of independent appraisers involved with mortgage lending.

You will start seeing accusatory slanted media reports about this report. ABC news already has distributed it. A TV station in San Francisco has aired a story already.

Yes, the report casually mentions actual facts that GOVERNMENT policies and procedures promulgated segregated and extraordinarily unfair housing issues in the US ….. from the 1930’s into the early 1960’s. The GSE’s, FHA, VA wrote the documents appraisers followed. Banks and other lenders went along with those policies. It was part of the culture at the time. Was it wrong? Yes. Just like the slave trade many COUNTRIES encouraged, which ended, thankfully.

Unfortunately, appraisal associations had to be sued in the early 1970’s to finally eradicate discriminatory advice they continued to promote until then. That appears to be one justification for the piling on this report does.

The report basically says, “you appraisers shouldn’t have done what you were told to do,” “you caused the low values,” and now we’re coming after you …. independent appraisers and the agencies who write policies …. to fix what ‘the GOVERNMENT’ originally caused.

The report also implies that ‘you’ are responsible because so few ‘people of color’ are appraisers. (If parity to equalize racial composition is such a huge concern, why no outcry about National Football League teams which are dominated by ‘people of color’?)

Appraisers need to take a few minutes and peruse this delightful document. If you read nothing else, read pages 1-12 and the Conclusion below.

There are some other interesting passages buried in the bowels. One that caught my eye is a suggestion that using the ‘Sales Comparison Approach’ is “not fair” to ‘communities of color’…. unless the appraiser leaves the immediate neighborhood to seek out higher priced homes elsewhere to artificially increase the appraised value of the subject.

Normally I’d attach the document as a PDF. But this sucker is 40 MEGABYTES in size. So you will have to click this link to see it, and print it:

To read the Report Click Here

This is the conclusion in the report:

G. Conclusion

An appraiser has the unique power to determine the value of a home, which for most Americans, is their single most important financial asset and holds the key to wealth, stability, and opportunity for their family and generations to come.

In addition, home values affect the tax base, school funding, and community investments. Moreover, time and again, our nation’s economy and financial markets have been significantly impacted by home valuations, with communities of color often bearing the brunt of failings in the mortgage market and the home appraisal process.

Given the importance of homeownership to American families, particularly families of color, governmental and private organizations have called for reforms and a comprehensive examination of the structure and governance of the appraisal industry.

In response to these calls for reform, we have assembled the research and recommendations in this report. We urge federal and state governmental entities, The Appraisal Foundation, the GSEs, lenders, appraisers, researchers, and civil rights and consumer advocates to work together to address the concerns raised in the report, including:

• Questions About the Governance of the Appraisal Industry

• Gaps in Fair Housing Requirements and Training

• Barriers to Entry to the Appraisal Profession

• Compliance and Enforcement

We hope that this report will encourage conversations among key stakeholders in the appraisal and housing industries to seek workable, sustainable solutions that benefit the whole of the housing market, including borrowers of color.

This ‘train’ of accusations started down the track about four years ago …. because appraisers are easy targets. It’s been building steam ever since. The ride toward ‘reforms’ is not going to be very scenic or pleasant for appraisers for at least three more years. Appraisers will need to keep very close tabs on the waybill of items being hauled your way.

Even though this report is extraordinarily discouraging, I will say again. If you are a biased appraiser in any way, in how you conduct yourself or in how you analyze data and report values, then you need to excise yourself from appraisal work. On the other hand, if you are doing your work appropriately and professionally according to current policies and procedures, continue being careful and diligent. And hold your head high.

Dave Towne, MNAA, AVAA, AGA, dtowne@fidalgo.net

To be added to Dave’s list, send him an email.

My comments: I have been reading Dave’s emails for a long time. He somehow keeps track of the latest appraisals news and is often the first appraiser to write about them!

I have not had time to read the report, but it includes excerpts from appraisal textbooks as recently as 1973. Of course, few fee appraisers did lender appraisals before licensing. Almost all were staff appraisers at lenders.

Appraisers’ Dirty Little Secret” (my phrase).

There was never any mention of this in any appraisal classes I have taken.

I have been worried about appraisers and redlining for a while but did not have documentation. If I did residential lender appraisals back then I would have switched to commercial appraisals.

When I started appraising in the late 70s, I think it had mostly disappeared from official documents. I know a local female appraiser who started with FHA in the mid-70s, when they increased appraiser diversity: women, blacks, etc. I started at the same time at an assessor’s office as the first female appraiser. Of course, assessors would not want to have lower values. Affirmative action was big back then. Before that time, there were few female appraisers.

I had planned to write about this topic in my March newsletter. This new report has lots of information and links I can use.

The answer: Change how we do appraisals for lenders? Change how appraisals comps are selected? What happens when prices fall?

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Construction Progress Reports

By Claudia Gaglione, Esq.

Excerpts:

Use disclaimers (Note: more disclaimers in the full article)

Many lenders have pre-printed forms that they ask the appraisers to

complete. The forms have a list of specific items and the appraiser must

estimate a percentage of completion for each item. If at all possible,

consider adding some disclaimer language to the prepared form such as:

“This report is prepared for the benefit of the lender to assist in making

loan proceed disbursements. It is not prepared for the benefit of the

borrower.”

NEVER CERTIFY THAT WORK HAS BEEN COMPLETED IF THAT IS NOT THE CASE

It doesn’t matter whether the building materials are on-site and the

work is in progress or not. Promises that the work will be completed must be ignored. You might not want to travel back to the site to perform a second inspection, but it has to be done. Appraisers have been duped too many times only to later find out that promised work was not performed.

Suits against appraisers involving the performance of construction

progress inspections are a troublesome area of appraiser litigation. It may not always be possible to avoid this exposure since assignments are often accepted to please a client or to preserve an existing business relationship. However, by following some simple loss prevention suggestions, you may be able to avoid being cast as the “villain” when the buyer’s dream home becomes a “nightmare”.

To read the full article, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.

If this article gave you one good tip about handling these issues and staying out of trouble, it is worth the subscription price!!

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Skepticism Can Lead to Poor Appraiser Decisions

By Jamie Owen

Excerpt: We must be careful to not let skepticism negatively affect our work. Have you ever heard an appraiser make a statement that is similar to one of the following?

“I don’t see what the big deal is with supporting my adjustments. No one can really prove that their adjustment is exactly correct, so what does it matter?”

“Show me any report, and I will find mistakes in it, so I’m not going to put that much time into my appraisals. They can’t be perfect anyway.”

“What’s the big deal about measuring the home we are appraising? After all, the public records and MLS are probably not accurately reporting the size of the homes I am using as comparable properties, so what does it matter?”

Would you agree that these thoughts might be fueled by skepticism? What is skepticism anyway? Skepticism is having an attitude of doubt…

Some have argued that ANSI measurements don’t always reflect the market. That is true! We may measure to ANSI Standards, but we appraise based upon the market.

If there is a conflict between the two, we must still find a way to credibly appraise a home, accurately reflect the market, even when ANSI Standards may conflict with the view of buyers. And it can be done! It does require more commentary to explain what we did and why we did it. However, as long as we properly explain the situation and what we did, we will not be misleading the intended user of the report. At least in my opinion.

To read more, click here

My comments: Jamie Owen has a unique, very interesting, interpretation of how appraisers think! Plus a fun video and lots of animated gifs! I will write about the ANSI issues above, plus many other issues, in the March issue of the monthly Appraisal Today.

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Triple-Dome Design in North Carolina

Excerpts: Located on a private, 13.1-acre wooded lot, the multilevel, three-bedroom home features a number of modern amenities. Plenty of features are packed into the home’s unique design. A spiral staircase leads up to a loft from the main bedroom, and skylights let in an abundance of natural light. Then there are Bluetooth-paired lights and slate stone flooring.

All three domes are connected, and one serves as a two-car garage.

Lawrence (the agent) explains that the main dome serves as living space, with a sunken section and stairs that go up to a loft. Behind the loft is the kitchen, which lines the back of the second dome. “You go down another hallway that is lined with bookcases, and there is a third dome,” she says.

It has three bedrooms, the primary bedroom and two others.

To read more and see lots of photos, click here

My comment: Conforms to ANSI. One story at grade level! Don’t ask me to measure it!!

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New ANSI Z765-2021 Resources Web Page at www.appraisaltoday.com/ANSI

Every week I have been writing about new classes, Webinars, and videos. I am putting them on this web page now. Plus, removing old information, such as a class that has changed the dates it is offered.

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Fannie Mae Answers your Questions About ANSI

Lyle Radke Senior Director of Collateral Policy at Fannie Mae at FREE youtube webinar. Feb. 28 at 10 am CT It will be recorded so you can watch it later. 

To watch, go to www.youtube.com and search for appraiser elearning. Scroll down the page.

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Do Not Take a Class, Using the 2013 Version of ANSI !! Look for ANSI Z765-2021

Education providers who have been offering the 2013 version are updating their classes to the 2021 version. When I was looking for classes, it was confusing. I kept getting info on the 2013 version of ANSI. The title of one class was not clear, but the class summary said it was about the 2021 version.

Also be careful with written material, Youtube videos, recorded webinars, etc.

The February 1 issue of the monthly Appraisal Today will have lots of info on ANSI Z765-2021

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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 paid monthly newsletter, Appraisal Today. For more information or get a FREE sample issue go to https://www.appraisaltoday.com/products.htm or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 7AM to noon, Pacific time.

Mortgage applications increased 2.3 percent from one week earlier

WASHINGTON, D.C. (January 19, 2022) – Mortgage applications increased 2.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 14, 2022.

The Market Composite Index, a measure of mortgage loan application volume, increased 2.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared with the previous week. The Refinance Index decreased 3 percent from the previous week and was 49 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 8 percent from one week earlier. The unadjusted Purchase Index increased 14 percent compared with the previous week and was 13 percent lower than the same week one year ago.

“Mortgage rates hit their highest levels since March 2020, leading to the slowest pace of refinance activity in over two years. The 30-year fixed rate reached 3.64 percent and has increased more than 30 basis points over the past two weeks. FHA and VA refinance declines drove most of the refinance slowdown,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Despite the increase in rates, purchase applications jumped almost 8 percent, with conventional purchase applications accounting for much of the stronger activity. The average loan size for a purchase application set a record at $418,500. The continued rise in purchase loan application sizes is driven by high home-price appreciation and the lack of housing inventory on the market – especially for entry-level homes. The slower growth in government purchase activity is also contributing to the larger loan balances and suggests that prospective first-time buyers are struggling to find homes to buy in their price range.” 

The refinance share of mortgage activity decreased to 60.3 percent of total applications from 64.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 3.8 percent of total applications.

The FHA share of total applications decreased to 9.3 percent from 9.9 percent the week prior. The VA share of total applications decreased to 10.0 percent from 11.4 percent the week prior. The USDA share of total applications remained unchanged from 0.4 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 3.64 percent from 3.52 percent, with points remaining unchanged at 0.45 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 3.54 percent from 3.42 percent, with points increasing to 0.47 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.64 percent from 3.50 percent, with points decreasing to 0.44 from 0.45 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 2.95 percent from 2.73 percent, with points increasing to 0.43 from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 3.04 percent from 3.03 percent, with points increasing to 0.24 from 0.20 (including the origination fee) for 80 percent LTV loans. The effective rate increased 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.

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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 

www.appraisaltoday.com

Appraisal Obsolete? Now or in the Future?

Is Appraisal Obsolete?

By George Dell

Excerpts: You’d think client/user expectation would follow wise professional leadership. Hah!

Innovation and leadership in knowledge and education has declined. The profession and its key organizations have long lost their default position. Pride in designations are diminished. Replaced by licensing, outdated appraisal processes, echoed education, and octopus-like regulation. These are built upon subjective, belief-based ‘credibility’ standards. Each of these re-reinforce what clients want and expect. Why?

USPAP (Uniform Standards of Professional Appraisal Practice) is edited every two or three years. New updates may simply undo prior updates. Chugga chugga.

Appraisers are required to repeat the same education and repurchase the USPAP book every two years, even when changes take place over a three-year period. And pay fees for the privilege. “Automated valuations,” “evaluations,” and “waivered” ways do not have such taxes and ‘regulatory guidance.’ This creates a market advantage for the lesser-quality product!

To read more, click here

My comment: I agree, unfortunately. I love the use of “octopus”: very descriptive

Appraisal Business Tips 

Humor for Appraisers

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

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

NOTE: Please scroll down to read the other topics in this long blog post on ANSI, Fannie, Appraisal Business, unusual homes, mortgage origination stats, etc.

Read more!!

Three 2022 Residential Appraisal Forecasts

Three 2022 Residential Appraisal Forecasts

The 20 appraisal events that will surface, occur or continue on into 2022
By Tim Andersen, MAI
Excerpt of three of the Events:
6. So far, appraisers have not organized themselves to fight the bogus bias and discrimination charges against them. Despite the need for such pugilistic organization, however, the status quo won’t change.
9. More and more state appraisal and taxing authorities will recognize Fannie Mae’s move to use the ANSI measurement standards by adopting those standards themselves. While this is likely a positive step, it will result in another level of regulation and standards imposed on appraisers.
10. State appraisal boards will continue their migration toward becoming consumer advocacy agencies; thus, their migration away from their original purpose, the credentialing, educating, and disciplining of real estate appraisers.
Warning: some are very controversial!
To read all 20, click here. I posted this on my blog, so you can make comments!

Read more!!

Appraisal Completion Certifications – be careful!

Appraisal Business Tips 

Humor for Appraisers

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

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

NOTE: Please scroll down to read the other topics in this long blog post on unusual homes, Fannie ANSI requirements, mortgage rate forecast, mortgage origination stats, etc.

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ANSI Z765-2021 Information Resources – CLICK LINK BELOW FOR MORE

Read more!!

Fannie requiring ANSI for appraisals starting 4/1/22

ANSI Update

I have been getting questions from appraisers but did not have time to research this Very Hot Topic. Below is a link to purchase the new 2021 Standards.
There are lots of comments online. The first link below by Appraisersblogs allows comments which you can read and make your own comments. The second link is a short blog post by McKissock.
Purchasing the Standards document for $25 is a good idea—link at the end of this section. I purchased a copy, so I knew what it said. Hopefully, most appraisers who do GSE appraisals will get a copy. Disclaimers coming soon regarding ANSI, assessor’s offices, etc. Disclosure of what you use is an excellent idea.
For many years, I did relocation appraisals, where 2-3 appraisers appraised the same house before the sale. Sq.ft. by the appraisers was very seldom the same. We did future values, typically 90-120 days in the future. My most favorite appraisals. Every appraisal was a test of how close I came to the sales price.
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ANSI Measuring Standard Required on April 1, 2022 – Comments allowed
By Appraisersblogs
Excerpts: includes Fannie’s 1-page “Standardized Property Measuring Guidelines” with good information.
Does following ANSI even reflect the market? Perhaps, adopting the ANSI standard will make the description of the subject property more precise. However, how is this going to help if Realtors, assessors, builders, and architects are not measuring by the same standard? Will this create a false sense of accuracy? Will there be a lot more discrepancies once the ANSI measuring standard is used by appraisers for the subject property while different measuring standards measure the comparable sales. And how do we apply the ANSI measuring standard on exterior-only appraisals, desktops, hybrids, and 2055s?
This blog post is a good place to read comments and leave your own. Over 35 comments. Click here to read.
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Fannie Mae to Adopt ANSI Measurement Standard in 2022
Short blog post with good info
By: Dan Bradley (McKissock)
Excerpt: ANSI Z765 is a copyrighted document. A downloadable PDF is available for purchase from Home Innovation Research Labs for $25.00. The website can be accessed here: https://www.homeinnovation.com/z765.
To read more, click here

Read more!!

Appraisal Errors from Reviewers and State Boards

25 Common Errors in Appraisal Reports

Excerpts: As a real estate appraiser, much of your success relies on your reputation as a competent professional. Unfortunately, certain appraisal violations are quite common—including errors in appraisal reports. Make sure you’re aware of these mistakes so that you can avoid them. Here’s a compilation of the most common errors and deficiencies found in appraisal reports by reviewers, regulators, and appraisal boards.
  • Not stating the report option utilized.
  • Not providing enough analysis for the intended user or reader to understand the report properly.
  • Inconsistencies between the description of the subject property in the improvements section and the photographs, sketch, sales comparison grid, and other areas in the report.
  • Inappropriate use of boilerplate commentary in the appraisal report to describe the neighborhood or to explain the reconciliation of the sales comparison approach.
  • Failure to summarize the support and rationale that supports the highest and best use opinion.
  • Not complying with the most current USPAP.
  • Failure to explain the exclusion of the cost and or income approaches.
To read more, click here
My comments: This was originally published by McKissock in 2019 and updated in 2020. We can always use these reminders. We know them, but sometimes forget to do them, update templates, boilerplate, etc.

Read more!!

Appraisals Obsolete Now or Later?

Is Appraisal Obsolete?

By George Dell SRA, MAI, ASA, CRE
Excerpt: Obsolete! Such a harsh word. Can it be?
Is the problem convolution?
Does it mean I will soon be obsolete? Not needed? Not loved? Terrible. What can be done?
Yet all the little signs are pointing that way. “Automated” valuation models have much of the market, and continue to gain. Other valuation methods and appraisal exempted transactions continue to grow. Evaluations, desktops, hybrids, auto-measurements, non-appraiser inspections, broker opinions.
To read more, click here
My comment: Another different perspective from George Dell! Check out “Appraisal startup Aloft closes $20M Series A” above! Not the first, and not the last, appraisal-related company to get millions in funding. Who needs experienced field appraisers when we have AVMs, hybrids, etc.?

Appraisal Business Tips 

Humor for Appraisers

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

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

NOTE: Please scroll down to read the other topics in this long blog post on Zillow, marketing tips, Freddie and Fannie new loan limits, unusual homes, mortgage origination stats, etc.

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6 Appraiser Tips on Increasing Productivity

6 Ways to Streamline Your Appraisal Workflow

Excerpt:
#6. Reduce revision requests
A revision will waste 15 minutes minimum. To reduce revision requests, track your clients’ common questions, and include that information in all reports when applicable. If you work for a lot of different lenders or do a lot of appraisals for lending-related purposes, those clients and intended users are probably asking some of the same questions over and over.
For example, if your clients often ask about septic, go ahead and include a comment about the septic system in your initial report. In other words, answer the question before they ask it.
To read more plus get 5 more tips, click here
My comments: Short and well written, worth reading. I have been writing about time management in my Appraisal Today monthly newsletter since June 1992, the first issue. Saving time is a very hot topic now when everyone is very busy. All of my many articles are available free to paid subscribers. They are much longer than this blog post, of course.

Appraisal Business Tips 

Humor for Appraisers

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

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

NOTE: Please scroll down to read the other topics in this long blog post on Fannie News on Forms and UAD, September Fannie Update, Bias (again), unusual homes, mortgage origination stats, etc.

Read more!!

Wholesale lender has AMC-free appraisals

UWM launches AMC-free appraisal program to coordinate appraisals in-house

Excerpt: The Pontiac, Michigan-based wholesale lender will instead coordinate appraisals in-house, contracting with appraisers directly, offering appraisers and brokers a way to bypass AMCs altogether, which UWM CEO Mat Ishbia characterizes as “middlemen.”
During a Facebook Live address, Ishbia proclaimed that while AMCs add value to the industry, appraisals have been a stumbling block for the mortgage industry.
“It’s going to be cheaper for consumers and more money for appraisers because there’s no longer going to be a middleman with UWM Appraisal Direct,” Ishbia said.
To read more, click here
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Comments from Rob Chrisman’s daily email mortgage newsletter 9-13-21
Critics wonder if appraisers will sign up for UWM’s program, or any program for that matter, given the amount of business licensed appraisers have already. AMCs take about $125-150, maybe as much as $200. If a company like UWM offers $150 more than AMCs to take their orders, does it come with a price, such as an appraiser saying they won’t do business with other AMCs? Stay tuned!
To read lots more, click here Search for appraisals.
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Comments from AppraisedValue (Housing Wire) email with comments. No link available.
The larger question is whether UWM’s direct-to-appraiser approach will be attractive enough to keep appraisers too busy to work with AMCs and whether other lenders will follow suit. As our story notes: Likely the strongest incentive for appraisers is that UWM will pass along the full appraisal fee paid by the borrower. And, while AMCs have been dogged with allegations of late pay, UWM will pay appraisers the next business day after a successful appraisal completion. 
Still, some AMCs, such as Class, have already instituted a process to pay appraisers within 24 hours. And some lenders don’t want the headache of bringing valuation in-house.
My comments: I like what UWM is doing, of course. As we all know, there are much more significant problems with AMCs than money, such as long lists of requirements, including everything from every lender they work for!

Appraisal Business Tips

Humor for Appraisers

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

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

NOTE: Please scroll down to read the other topics in this long blog post on Fannie and Bias, real estate market changing?, appraisal business, unusual homes, mortgage origination stats, etc.

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Fannie and ADUs

Fannie and ADUs

Video/Slides
Excerpt: Accessory dwelling units (ADUs) are becoming more and more common. Want to brush up on your knowledge of Fannie Mae’s ADU policy? Take this short elearning course to explore information about ADUs, including requirements, construction types, and how to report ADUs in an appraisal report.
To watch, click here
Note: use two arrows at the lower right to move between slides.
My comments: I received an email notification of this on 8/24/21. Worth watching. Well done. Of course, ADU requirements vary by location. They are more being built in many areas of the country. I was recently listening to an appraisal online discussion. Appraisers were from all over the country and some had appraised homes with ADUs.
My MLS recently added a section on ADUs. Not many sales there yet, but anything can help!! In my city, most new ADUs are behind a large home. Many of the owners plan on living there when they retire and renting out the much larger home. Over the past few years, the local planning and building departments have become much easier to work with. Some local MLS listings mention “ADU possible”, a relatively new trend.

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