Appraisal News and Business Tips

Posts Tagged mortgage loans

3-16-17 Newz: Appraiser indicted, Public records sqft, 3-D printed house

3D Map Shows America’s Most Expensive Housing Markets

Excerpt: Which U.S. housing market is the most expensive?
 It seems like the question should have a single, straightforward answer. But with varying definitions of what constitutes a housing market and with different ways of measuring home value, the question is not so clear cut.
Using data from Zillow, this 3D map shows the cost of housing by U.S. county. The height of each area represents the average price per square foot of its homes.
My comment: Fascinating graphic. Lots of counties well under $100 per sq.ft. My urban county: $477. Other CA rural counties under $150. Warning: Can Be Addictive ;> I love Microcosm graphics!!
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Top 10 Affordable Small Towns Where You’d Actually Want to Live, 2017 Edition
Excerpt: But does this (small towns) mean you have to trade excitement for enervation? As the city-dwelling comedian Lenny Bruce once said, “I hate small towns, because once you’ve seen the cannon in the park, that’s it.” So we focused on life beyond the cannons-small towns offering up rich cultures and a surprising amount of fun side diversions.

Read more!!

12-8-16 Newz .Beautiful libraries .Roundabouts .Sales contract amendment

Beautiful and unusual places

What are the most popular links in these newsletters? Weird properties, very expensive homes, etc. Plus Appraiser goes to jail (not many of these today), Freddie and Fannie no-appraisal loans. LIA’s Claudia Says ads are also very popular. Sorry, USPAP, ASB, AQB, ASC etc. are not very popular but I put them in just to let you know what is happening, even if you don’t care much ;> Here are two:

10 of the Most Beautiful Libraries on Earth

Take a break and a look at these beautiful and unusual libraries!!

From all over the world, including the Chicago Public Library

Excerpt:

Chicago Public Library, by SOM

Chicago’s new Chinatown library branch has no sharp edges. The pebble-shaped building is wrapped in glass and marked by solar-shading fins that are meant to reduce heat and glare. The library’s curvy, three-sided shape is built around feng shui principles and designed to align with the avenues outside the building. Inside, the two-story structure is centered around a light-filled atrium.

No links for more info, but you can google the names.

https://www.wired.com/2016/09/settle-10-beautiful-libraries-earth

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Carmel, Indiana, America’s King of Roundabouts

Read more!!

11-10-16 Newz// CFPB and Dodd Frank Going Down?, Zillow, Man caves

How Man Caves Took Over America’s Basements

Excerpts:

A man cave usually develops in spare rooms, such as bedrooms, offices, finished basements, or recreation rooms. The garage, another traditionally masculine space, is more often a workshop or place to make repairs. Its connotation with work (often frustrating and unsavory as any viewer of Home Improvement can attest) as well as its thermal issues (it’s rarely cooled or heated like the rest of the house) demarcate it from the man cave, an interior space.

While men have always had their sacred spaces in the home such as the garage or study, the domesticity of the 19th and early 20th century overall implied that the home was, of course, the woman’s place. In the previous centuries, men sought refuge outside the home in establishments such as gentlemen’s clubs (think more country club than strip club), and male-only social clubs and establishments such as the Freemasons.

Very interesting, especially the history!!

http://www.atlasobscura.com/articles/how-the-man-cave-took-over-americas-basements

My comment: I live in California, where there are few basements. I do see garage “man caves”. But, they are not as fixed up as basements, mostly with a tv, beer fridge and some tools. Sometimes I see bedrooms set up as computer rooms.

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Collection and Verification of Residential Data in the Sales Comparison Approach APB Valuation Advisory #8

Voluntary Guidance on Recognized Valuation Methods and Techniques:

My comments: This is advisory and not part of USPAP. Finally the Appraisal Practices Board has 48 pages of practical advice for practicing residential appraisers, the vast majority of appraisers. It discusses what different types of clients want, such as Fannie, VA, Rels, relocation, data, data collection, CU, etc. Scope of work examples are included. The last 17 pages are about verification. Worth reading.

https://www.appraisalfoundation.org/imis/docs/Valuation-Advisory-8-Collection-and-Verification-of-Residential-Sales-101716.pdf

Read more!!

10-20-16 Newz// Appraisal oversight, VA wants fee appraisers, Amazing things disguised as Boring

9 Amazing Things Disguised as Boring Things

Look twice-these seemingly mundane objects are hiding something.

Excerpt:

Narnia hid behind a wardrobe. Doctor Who’s Tardis was disguised as a blue police call box. With no signage and no flags, these out of the ordinary things are hidden away disguised as something utterly banal. In some cases, these things are camouflaged on accident; in others, they are secreted away so that only those in the know can find them.

Either way, the world is full of seemingly mundane places that are more than meets the eye. It reminds us to stay curious-one has to always be on the lookout for wonder. Here are nine places in the Atlas that may seem boring at first glance but are actually amazing once you take a closer look.

Here are a few:

1. Brooklyn Townhouse Secret Subway Exit

Brooklyn, NY

3. Mystery Soda Machine – insert 75 cents and see what you get

Seattle, WA

4. The Lonely Parking Meter

The only parking meter in Winters, CA

http://www.atlasobscura.com/articles/9-amazing-things-disguised-as-boring-things

My comment: Just For Fun!! We all work in the field and discover strange things. This article will make me look closer at what I see ;>

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Disciplinary Process-How It Works, Your Rights & Likely Outcomes

by Robert Weinstock, JD, MBA, CBA, CVA

Excerpts:

While the number of licensed real estate appraisers nationwide has decreased, the number of complaints filed against appraisers has increased. For example, in my home state of California, complaints against appraisers have increased by 40% even though the number of appraisers has declined, according to the California Bureau of Real Estate Appraisers (BREA)….

The following is an actual 2015 disciplinary action against an appraiser in which the appraiser lost his license and was required to reimburse the state for its investigation and prosecution costs in the amount of $125,828. In addition, if the applicant should care to reapply for a new license, he shall be required to pay an additional $115,828.

Read more!!

9-29-16 Newz: UAD absolute vs. relative, Tilting skyscraper, History of screws

Not much interesting newz this week, so I’m sending some interesting links, sorta appraiser-related – use of “they”, cul-de sacs, street grids and the history of screws;>

Debunking the Cul-de-Sac
The design of America’s suburbs has actually made our streets more dangerous

Excerpt: Descend from 40,000 feet into just about any major metropolitan airport in the United States, and patterns of the trajectory of American life over the last century become clearly visible. Old urban cores are etched out in tight grids modeled off a sheet of graph paper. Further out, all those neat lines and right angles begin their curling meander into suburbia. Sparsely populated roads loop through the countryside in an odd geometry designed around the residential real estate dream of post-war America: a cul-de-sac for every family.

This is where it’s most apparent – from an airplane window – that American ideas about how to live and build communities have changed dramatically over time. For decades, families fled the dense urban grid for newer types of neighborhoods that felt safer, more private, even pastoral. Through their research, Garrick and colleague Wesley Marshall are now making the argument that we got it all wrong: We’ve really been designing communities that make us drive more, make us less safe, keep us disconnected from one another, and that may even make us less healthy.

http://www.citylab.com/design/2011/09/street-grids/124/

My comment: younger people are definitely not doing as much driving, and fewer are getting driver’s licenses, as in the past. I got my driver’s license at 15 ½ like everyone else. The baby boomers are getting older. Suburbia requires having a car. What if you don’t want to drive at night, or don’t want to drive much any more? As an appraiser I used to drive a lot. Now I just don’t want to drive for many hours a day. Of course, there is a lot of traffic now that the recession is behind us and everyone is driving again.

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The Linguistic Turf Wars Over the Singular ‘They’

It could be close to mainstream acceptance.

Excerpt: Of all the turf wars that have complicated the landscape of grammar over the past few hundred years, the most complicated and frustrating may be that of the singular they.

It may be the most controversial word use in the English language-because it highlights a hole where a better-fitting word should go.

It creates a conflict between writers and editors who want things to follow the natural symmetry of Latin, and people who find they the only logical option for referring to a single person without a gender attached.

My comment: Almost everyone who writes anything, including emails, comes across this issue. I do. I have started using they more often, but did not know it was a new trend.

http://www.atlasobscura.com/articles/the-linguistic-turf-wars-over-the-singular-they

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The Screw Heads That Tried, But Failed, to Topple Phillips

The history of the screw is long and surprisingly weird.

Excerpt: The screw is the ultimate example of an object that hides under our noses but we never think about.

It’s the most basic of building blocks, something that connects every one of our devices, manufacturing processes, and likely even the chair you’re sitting in right now. (One device that doesn’t tend to have screws? The air mattress.)

And generally, we never give screws a second thought. But I was thinking about them a lot the other night when I tried to screw a nut around a screw and misaligned it so annoyingly that it took a lot of physical might to unscrew that screw.

Where do screws come from? And what did we do in a world before them? As it turns out, screws have a surprisingly diverse and unexpected history, stretching from ancient Greece to what we think of them as today, essential parts of our literal foundations. In ancient Greece, for example, it’s claimed Archytas of Tarentum invented an early version. Leonardo da Vinci also had one, and, later, of course, it was a key part of the Industrial Revolution.

My comment: Very Interesting, as Usual…

http://www.atlasobscura.com/articles/the-screw-heads-that-tried-but-failed-to-topple-phillip

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In the October 2016 issue of Appraisal Today

  • Fees are going way up!! How to get higher appraisal fees during this boom time!! By Ann O’Rourke, MAI, SRA, PDQ and Doug Smith, SRA, AI-RRS . Lots and lots of practical tips. No one knows when the inevitable crash will come. My fees have gone way up.
  • Pro Camera 9 – a great photo app for appraisers – only $4.99!! by Wayne Pugh, MAI, SRA – I want it and Love the price…
  • USPAP 2017-2019 2nd Exposure Draft – what has changed? Comments due by October 14!! Tell the ASB what you think. Draft reports (again). They keep trying…. And extraordinary assumption and sales history plus some less interesting topics (to me)

An excerpt from Advisory Opinion 37, Computer Assisted Valuation Tools:

Q: An appraiser used a regression analysis model that suggests a relationship between the size of a residence and the price per square foot of similar residences in a specific market. This relationship has not been confirmed by the actions of market participants. Can the appraiser use the regression analysis as support for the GLA adjustment in the appraisal?

A: No, because the appraiser does not know how 1the regression analysis model works, has not independently tested the conclusions it provides, and has no reason to believe the database is reliable.

Another Q: An appraiser has purchased a software package that has multiple functions, such as market analysis, deriving adjustments for physical characteristics, automatically inputting information from the local MLS, and more.

He uses the program to develop an adjustment for an in-ground pool.

A. No… (They could have used “they” instead of “him”. See above on linguistics and using “they”.)

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

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To purchase the paid Appraisal Today newsletter go to

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If you are a paid subscriber and did not get the September 2016 issue, emailed September 1, 2016, please send an email to info@appraisaltoday.com and we will send it to you!! Or, hit the reply button. Be sure to put in a comment requesting it ;>

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UAD absolute vs relative

Another good commentary from Washington appraiser Dave Towne!!

Why is it so many appraisers have trouble with UAD and the CU (Collateral Underwriter), and how to apply the Quality and Condition rating between the Subject and Comps?

Not long after the UAD was implemented/mandated by FNMA (in 2011), and then the CU evaluation system came along, FNMA began discovering that many appraisers were improperly Rating the comps Quality and Condition AGAINST the Subject in the grid. And they began telling appraisers what they were finding. FNMA also discovered, and revealed, that many appraisers were using the same Comps over and over again in different reports, but were using DIFFERENT rating ‘numbers’ for those properties – depending on the Quality and Condition they applied to the SUBJECT.

Applying an ‘opinion’ of the difference for the Quality and Condition is not how we are supposed to do appraisals. Although many appraisers were taught to do that years ago by their mentors, who were also doing it wrong. Unfortunately, FNMA never really said much about it then….until the CU process started. So bad habits started, and were transferred from one appraiser to another, and down the line.

Everything on the grid pages is ABSOLUTE to those properties. The Address, the Site size, View, Design, Actual Age, GLA size, Garage & Carport spaces, etc. Everything. As I like to say – “It is what it is, where it is, when it is.”

Yet many appraisers still think the Rating for Quality and Condition for Comps should be applied Relative-to the Subject. Uh….NO! The Comps are rated what they are, based on the Quality and Condition Rating Definitions that apply with UAD. (And so is the Subject.)

Over the years, I’ve read countless laments by appraisers who say the ‘UAD definitions’ are hard to understand, and don’t have ‘steps’ between the numbers so appraisers can try to engineer precise differences in the ratings and resulting adjustments. That line of thinking is basically hogwash. (If you think you need to make more precise adjustments, you can do so on the extra grid lines…such as ‘Add’l Qual Adj.’ or the same for Cond.

Why do I believe this is so? Let me ask you who believe UAD definitions are so difficult: Before UAD came along, did you ever include definitions of the ‘rating words’ we used back in the dark ages – in your reports? That can be answered 100% no (except by some very elite appraisers). Another question: Where did those ‘rating words’ come from, and can you quickly pull out your reference guide to bring up the definitions for those?. Again, probably 100% no. Before you whine, send me your definitions of Average(+) and Excellent(-), for both Quality and Condition – that you used prior to UAD.

So now we have UAD and the basically easy to use and understand definitions. These, by the way, should be included in every appraisal report – all the software vendors have definition pages to add into reports. Not including these in reports means you have produced a report that is NOT CREDIBLE per USPAP because without those, the reader(s) won’t know what the rating numbers and other codes mean.

Be sure to check out the many comments at:

http://appraisersblogs.com/UAD-rating-absolute-vs-relative

My comment: I thought this had been figured out by most appraisers many years ago. But, change can be difficult, especially something you have been doing for many years .Of course, if you don’t do work requiring UAD, you can do what you have always done – relative. I love relative!!

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What Your Street Grid Reveals About Your City

The surprising ways size and shape can impact a place’s economic productivity and walkability.

Excerpts: New York, of course, is not the only city built on a grid. Similar schemes could be found as far back as ancient Greece and Rome. But Manhattan’s design was the exemplar for what became the default pattern of American cities.

Still, not all grids are created equal. Some shape a walking-friendly streetscape. Others, not so much. Over at the Strong Towns blog, Andrew Price, a software developer by day who blogs about urbanism, has been writing about the math of the grid and what it reveals about a city’s economic productivity and walkability.

My comment: Very interesting article on street grids: math, different layouts, what the patterns mean…

http://www.citylab.com/commute/2013/12/what-your-street-grid-reveals-about-your-city/7746/

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Nonbank Lenders’ Market Share is at a Two-Decade High. Here’s Why

Excerpt: Depositories still dominate home lending, but nondepositories’ market share is the highest it has been in at least two decades.

The nonbank share of total mortgage originations was 42% in 2014, according to an analysis of Home Mortgage Disclosure Act data by ComplianceTech and its LendingPatterns.com tool. Just five years before that, in 2010, nonbanks held only a 27% market share.

One reason for this is that banks’ attraction to mortgages tends to be opportunistic.

“Banks have historically been very fickle about the mortgage lending market,” said Maurice Jordain-Earl, managing director and co-founder of ComplianceTech.

http://www.nationalmortgagenews.com/news/origination/nonbank-lenders-market-share-is-at-a-two-decade-high-heres-why-1086192-1.html

My comment: Ever heard of Quicken Loans? My loan is with them. Lots of appraisers work for their AMC. For appraisers, this means fewer lenders that don’t use AMCs. The non-banks use AMCs.

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Another interesting article on non banks: Why Nonbank Lenders Are the Future of Mortgages

http://www.nationalmortgagenews.com/news/voices/why-nonbank-lenders-are-the-future-of-mortgages-1072042-1.html

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In San Francisco, a Tilting Skyscraper and a Deepening Dispute

Excerpts:

SAN FRANCISCO – The developers of the luxurious Millennium Tower laid out the risks and potential defects of the 58-story building in minute detail when its apartments went on sale seven years ago.

The Milennium Tower, which its developers say is the largest reinforced concrete building in the western United States, has now sunk about 16 inches and is leaning six inches toward a neighboring skyscraper.

The color and texture of the marble and granite hallways “may not be completely uniform,” said a disclosure statement given to potential buyers. The streets below the tower could be “congested and noisy,” and the landscaping in the common areas could change, subject to availability of certain species of plants.

But the 21-page disclosure document left out what owners of units in the buildings now say was a crucial detail: that the building had already sunk more than eight inches into the soft soil by the time it was completed in 2009, much more than engineers had anticipated.

http://www.nytimes.com/2016/09/23/us/san-francisco-millennium-tower-dispute.html

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I just finished my mortgage application volume graph from 1/13 to 9/16 for my paid newsletter. For the first time, it was close to the peak in early 2013 a few weeks ago. That’s why appraisers are so busy. But, why are there so many complaints about high fees and long turn times now? Is is just media hype? Or have more appraisers quit working for AMCs???

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 https://www.mba.org

Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to www.appraisaltoday.com/products or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

 

WASHINGTON, D.C. (September 28, 2016) – – Mortgage applications decreased 0.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 23, 2016.

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1 percent compared with the previous week. The Refinance Index decreased 2 percent from the previous week. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index remained unchanged from the previous week and was 10 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to 62.7 percent of total applications from 63.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 4.4 percent of total applications.

The FHA share of total applications remained unchanged at 10.2 percent from the week prior. The VA share of total applications increased to 11.9 percent from 11.6 percent the week prior. The USDA share of total applications decreased to 0.6 percent from 0.7 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.66 percent from 3.70 percent, with points decreasing to 0.33 from 0.38 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.64 percent from 3.69 percent, with points decreasing to 0.28 from 0.29 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.52 percent from 3.56 percent, with points decreasing to 0.21 from 0.23 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.95 percent from 2.99 percent, with points increasing to 0.38 from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.92 percent from 2.96 percent, with points increasing to 0.40 from 0.26 (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.

9-22-16 Newz: Appraisers in the news, Coester lawsuit, Miniature homes

The Revolutionary Concept of Standard Sizes Only Dates to the 1920s

Nearly everything in your home is a certain size, thanks to German architect Ernst Neufert.

Excerpt: Almost every kitchen counter in the United States is 36 inches tall. And 25 inches deep. Eighteen inches above the counters are the cabinets, which are 16 inches deep.

Where do these sizes and dimensions come from? Have they always been so exact?

Building standards, as these numbers and rules are often known, are everywhere, helping shape everything from your kitchen cabinets and the sidewalk in front of your house to the layout of your favorite restaurant. Despite their prevalence, building standards really only came into being in the last century. A major turning point in their wild proliferation arrived in the 1920s, when the German government made the then-radical decision to standardize the size of office paper.

My comment: Fascinating!! Lots more info and images at the link below.

http://www.atlasobscura.com/articles/the-revolutionary-concept-of-standard-sizes-only-dates-to-the-1920s

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What does the CU interface look like to underwriters?
Below are links to see. Here’s a tidbit – 50% of appraisals have no or 1 messages.
Learn More About Collateral Underwriter’s Powerful Features and New Look

Do you have questions about using Collateral Underwriter® (CU™)? Register to attend the upcomingAsk the Expert webinar on September 27, 2 p.m. to 3 p.m. ET. Additional webinars and eLearning courses are available on the CU web page.

Have you heard about CU’s easier-to-use design and layout coming later this year? Check out the preview. You can also view the new CU infographic for an overview of CU’s powerful features. CU gives you the feedback you need, when you need it, with a CU risk score, alerts, and messages provided real-time in the Uniform Collateral Data Portal® (UCDP®). For all the latest news and resources, visit the CU web page.

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Scheer Motion to Dismiss Coester vs Scheer Lawsuit

Excerpt: More CVMS Fraud and Coester’s Fraudulent Activities Revealed

Robert Scheer, former Coester Senior VP, has filed a motion to dismiss Coester vs. Scheer lawsuit. There are also whispers in the appraisal community that Brian Coester’s motion to dismiss the lawsuit against him was denied. Looks like Scheer vs. Coester lawsuit is going to trial. Scheer continues to reveal more dirt against Coester while appraisers continue to flood social media with comments, and sometimes with humorous reactions…

This article includes the motion to dismiss.

http://appraisersblogs.com/cvms-fraud-coester–scheer

Previous post on this topic: Coester Allegedly Engaged in Fraud Sued by Former Senior VP

http://appraisersblogs.com/Coester-VMS-lawsuit-fraud-forgery

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Dollhouse Real-Estate: Inside the Elite Market for Miniature Homes

Priced as high as hundreds of thousands of dollars, these elaborate dollhouses count sex therapist Ruth Westheimer and a member of Qatar’s royal family as collectors

Excerpt: This Victorian-style home features four bedrooms, one bathroom and ornate period details like a clawfoot bathtub, crystal chandeliers and mahogany fireplaces. It is currently on the market, fully furnished, for $149,000. Since the home is roughly 18 square feet, the price comes to about $8,278 per square foot.

http://www.mansionglobal.com/articles/39456-dollhouse-real-estate-inside-the-elite-market-for-miniature-homes

My comment: Thanks to Jonathan Miller for this Fun Link!!

Doll houses will never be the same for me ;>

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Coming in the October 2016 issue of Appraisal Today

How to get higher appraisal fees !!!

 Topics include:

  • Why AMC fees started going up last year.
  • Comparison of AMCs, direct lenders and non-lender fees. Why they are very different.
  • How to find out what AMCs are say they are paying and what appraisers are really getting.
  • Lots of fee negotiating tips

 Not just a lot of ranting. Practical advice on how to successfully make more money during this Boom that will not last forever.

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

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

or $99 per year or $169 for two years

Subscribers get, FREE: past 18+ months of past newsletters plus 4 Special Reports, plus 2 Appraiser Marketing Books!!

To purchase the paid Appraisal Today newsletter go to

www.appraisaltoday.com/productsor call 800-839-0227.

 If you are a paid subscriber and did not get the September 2016 issue, emailed September 1, 2016, please send an email to info@appraisaltoday.com and we will send it to you!! Or, hit the reply button. Be sure to put in a comment requesting it ;>

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APPRAISERS IN THE NEWS. THE ARTICLES BELOW ARE ABOUT FEES, TURN TIMES, APPRAISER SHORTAGE, ETC. THEY WERE WRITTEN FOR LENDERS, REAL ESTATE AGENTS, HOME OWNERS, AND THE GENERAL PUBLIC. All allow comments, which can be very interesting!!

5 things to consider about higher appraisal fees and longer turn-times By Ryan Lundquist. Written for real estate agents and home owners

Excerpt: 4) Not Getting All the Money: A loan officer I spoke with was frustrated that his Borrowers were paying $550 for conventional appraisals and $750 for jumbo appraisals – and still experiencing longer turn-times. When he told me the Appraisal Management Company (AMC) he uses though, that’s where the problem comes in. This AMC regularly pays appraisers $350, which means they’re pocketing 40% of the fee the Borrower thinks is going to the appraiser. A few days ago on Facebook there was an appraiser who had an offer from an AMC to appraise a property for $850, but the AMC was charging the Borrower $1,385. Let’s remember appraisers are supposed to be paid “customary and reasonable” fees under Dodd-Frank, but a reasonable fee is what the appraiser gets – NOT what the Borrower pays.

My comments: Well written – for real estate agents and home owners, but has good explanations for everyone. (Ryan’s blog is primarily marketing for his appraisal business.) This article also discusses the decline in the number of appraisers in California, with data, but is relevant for many other states.

http://sacramentoappraisalblog.com/2016/09/20/5-things-to-consider-about-higher-appraisal-fees-and-longer-turn-times

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Appraiser Shortage? By Greg Stephens, SRA, MetroWest AMC

Reprinted from a June 2016 mortgage magazine. Written for lenders.

Excerpt: A topic very relevant to mortgage professionals has been receiving increasing attention lately-the question whether there is or is not a shortage of appraisers? Regulators, as well as market participants, have been weighing in, and depending upon who you talk to, the answers vary. The problem so far is that most of the discussion has been anecdotal.

What also needs to be included in stakeholder discussions on the topic is the status of future appraisers in the pipeline to replace the aging population of practicing appraisers.

To answer the question-not only whether there is a current shortage, but also if there is the potential for a shortage either in the near future (three to five years) or perhaps even longer, I conducted some in-depth research to glean as much factual information as possible.

My comments: This article has some good data on declines in number of trainees, problems with ASC data,lenders not allowing trainees to sign on their own, etc. Written for mortgage lender publication. Of course, it does not discuss low fees, scope creep, and treating appraisers “poorly” as a reason for the shortage of appraisers willing to work for many, or all, AMCs.

http://www.nationalmortgageprofessional.com/news/60306/appraisal-industry-update

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Need an appraisal right away? It may cost more than you’d expect. By Ken Harney. Written for the general public. Syndicated in national newspapers.

Excerpt: The problem is part work overload, part resentment over fees. In many markets, diminishing numbers of experienced appraisers are available – and willing – to handle requests for their work on tight timetables and at fees sometimes lower than they earned a decade or more ago.

The net result: The system is getting gummed up. …. A recent survey of agents by the National Association of Realtors found that appraisal problems were connected with 27 percent of delayed closings, up from 16 percent earlier this year.

In some cases, panicked lenders and management companies are offering appraisers fat bonuses and “rush fees” to meet deadlines. The extra charges can range from $200 to $1,000 or more, turning $500 appraisals into $1,200 or $1,500 expenses, which typically get paid by home buyers.

My comment: Harney has been a nationally syndicated real estate columnist for a long time.

https://www.washingtonpost.com/realestate/need-an-appraisal-right-away-it-may-cost-more-than-youd-expect/2016/09/12/5ce8fa98-790c-11e6-bd86-b7bbd53d2b5d_story.htm

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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 https://www.mba.org

Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to www.appraisaltoday.com/productsor send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

WASHINGTON, D.C. (September 21, 2016)

Mortgage applications decreased 7.3 percent from one week earlier,

according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 16, 2016. The prior week’s results included an adjustment for the Labor Day holiday

The Market Composite Index, a measure of mortgage loan application volume, decreased 7.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 15 percent compared with the previous week. The Refinance Index decreased 8 percent from the previous week to the lowest level since June 2016. The seasonally adjusted Purchase Index decreased 7 percent from one week earlier. The unadjusted Purchase Index increased 15 percent compared with the previous week and was 3 percent higher than the same week one year ago.

 

The refinance share of mortgage activity increased to 63.1 percent of total applications from 62.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.4 percent of total applications.

 

The FHA share of total applications increased to 10.2 percent from 9.6 percent the week prior. The VA share of total applications decreased to 11.6 percent from 12.0 percent the week prior. The USDA share of total applications remained unchanged from 0.7 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since June 2016, 3.70 percent, from 3.67 percent, with points increasing to 0.38 from 0.36 (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 $417,000) increased to 3.69 percent from 3.64 percent, with points decreasing to 0.29 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 3.56 percent from 3.50 percent, with points decreasing to 0.23 from 0.27 (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 2.99 percent from 2.97 percent, with points increasing to 0.35 from 0.34 (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 2.96 percent from 2.87 percent, with points

decreasing to 0.26 from 0.37 (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.

9-15-16 Newz// Rush fees, Flying saucer homes, $1.1 billion home

A Map of the Last Remaining Flying Saucer Homes

All the 1960s Futuro Houses left in the world.

Just For Fun!! Take a break from writing up those darn appraisal reports ;>

Excerpt: The Futuro House, in all its space age retro splendor, is like a physical manifestation of 1960s optimism. Shaped like the Hollywood idea of a flying saucer, the Futuro is a plastic, prefabricated, portable vacation home built to easily adapt to any climate or terrain, from mountain slopes to the seaside. After enjoying a heyday in the late ’60s and early ’70s, the remaining Futuros are now scattered across all parts of the globe, from the Australian beaches to the mountains of Russia, like secluded relics of midcentury technoutopianism.

Very interesting!!

http://www.atlasobscura.com/articles/a-map-of-the-last-remaining-flying-saucer-homes

My comment: I love atlasobscura.com. The strange homes and buildings I include in these emails are just the tip of the iceberg!!!!

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What is your typical rush fee?

www.appraisalport.com poll.

 

My comment: Rush fees are another way to make more money during this boom time, to save for the downturn when AMC fees will drop.

The most critical appraisals are those for purchases, which can require rush fees to get appraisers to drop their regular refi business and do them.

I am hearing about widely varying AMC fee increases from around the country, depending on the local market supply of appraisers willing to work for AMCs I guess. Savvy AMC appraisers reply to low bids with an increased fee. After a few weeks, sometimes their fee is accepted. Local appraisers I know only work for a very few select AMCs, if any. But, when business slows way down, they take more AMC work. I also hear from appraisers in the same market with widely varying fees that they will accept.

What do I do? Rush fees stress me out too much as I am very backed up. I just put new appraisal requests in my queue, which is typically around 60 days. Sometimes I will do one faster if it is a special circumstance and/or a referral from a local real estate agent, but I don’t require a rush fee. When I used to do appraisals for purchases, I always gave them priority but never charged a rush fee. I am definitely in the minority!!

What do you think? Post your comments at https://wp.me/p7jsxG-Cl !!!

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The Most Expensive House In The World Could Sell For $1.1 Billion

Just For Fun!! Take a break from writing up those darn appraisal reports ;>

Excerpt: What can justify a $1.1 billion price tag for a house?

Before searching for the features behind the number, let’s clarify that in this case, “the house” is rather a large, opulent mansion on the French Côte d’Azur, set in a “small” privileged refuge between Nice and Monaco frequently described as the ‘billionaires’ playground.’

First, there’s the house itself, with the understated name Villa Les Cèdres-The Cedars-at the center of Saint-Jean-Cap-Ferrat, known in French as a “presqu’île,” or “almost island.”

The description of the magnificent property in the French press includes 10 bedrooms, a ballroom, concierge, a chapel, 50-meter swimming pool dug into the rocks, a winter garden and stables for 30 horses.

My comment: I could take a few months (or more) to do an appraisal for a trip to France to appraise this property… Or maybe just an open house tour ;>

Very interesting!!

http://www.forbes.com/sites/ceciliarodriguez/2016/08/20/at-1-1-billion-the-most-expensive-house-in-the-world-in-france-goes-to-market

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Beware of unknown desperate AMCs sending email solicitations

An appraiser I know, who only works for one AMC, received an email request from an AMC he had never heard of. He replied politely that he was not interested. He was added to their approved list and bombarded with requests for appraisals every day. It was a lot of hassle to get his name removed.

I seldom get any AMC appraisal requests by email or phone, or request to join their panel. I must be on a Do Not Call or Email List ;> I have been replying to emails saying I have never worked for an AMC. They are really getting desperate!! Now, I am thinking about not even replying.

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In the June 2016 issue of Appraisal Today

FHA attic inspection requirement 

Excerpt: Inspection Tips – Insulation and attic access by Doug Smith, SRA, AI-RRS

When blown in insulation is added, the installer will often add an extension or dam to the scuttle that makes it difficult to fully observe the full attic.

Formerly, attics had walkways which when blown in insulation is applied, these walkways were covered with insulation. If the scuttle is in a closet and closet shelves make it difficult to fully access the attic, the difficulty with attic must be reported and a photograph taken to demonstrate the difficulty with attic access.

However, if the access is blocked by personal possessions, it may be practical to enlist the help of the homeowner to make the attic or scuttle accessible. In the instant case of the underwriter stating that a full inspection is required, the underwriter is incorrect.

The appraiser must document why a full inspection was not performed when there is not an accessible attic. Suggested language might include: “A full attic inspection was not

performed as the subject property does not have a readily accessible attic and only has scuttle access.” Along with a photo of what can be seen from the scuttle, the appraiser might add that the appraiser completed a head and shoulders inspection of the attic.

Remember to check the block on page one of the form that the attic is accessed by a scuttle. If the property has a full attic, note if a full inspection was performed and comment how access was gained either by stairway or drop stair.

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

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or $99 per year or $169 for two years

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plus 4 Special Reports, plus 2 Appraiser Marketing Books!!

 

To purchase the paid Appraisal Today newsletter go to

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

If you are a paid subscriber and did not get the September 2016 issue, emailed September 1, 2016, please send an email to info@appraisaltoday.com   and we will send it to you!! Or, hit the reply button. Be sure to put in a comment requesting it ;>

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Selling a $5 Million, Seven-Story Basket Is No Picnic

Its size, location, and fundamental basket-ness make it tough to sell, even at a steep discount

Thanks (again) to Jonathan Miller at http://www.millersamuel.com/housing-notes/

Excerpts: “You might see it three or four miles off before you come around the bend, and then you say, ‘That is a basket. That is unquestionably a basket,'” said Tom Rochon.

It is a basket, or rather, a seven-story office building shaped like one-a massive facsimile of the signature picnic basket made by the company once headquartered there. Some 40 miles outside Columbus, Ohio, the basket building, as it’s locally known, is one of the area’s grandest attractions, inviting quirky selfie-seekers, architecture nerds, and, of course, basket enthusiasts.

When the property – slightly larger than another Ohio landmark, Cleveland’s Rock and Roll Hall of Fame-was listed 18 months ago, the asking price was $7.5 million. Now it’s on the market for $5 million, or about $28 a square foot, about half of what traditionally shaped office buildings in the area usually sell for… commercial property in the area typically ranges from $50 to $80 a square foot.

The basket was built for about $32 million and finished in 1997.

http://www.bloomberg.com/news/articles/2016-09-07/selling-a-5-million-seven-story-basket-is-no-picnic

My comment: I regularly write about weird properties in my weekly emails, including the Basket House a few years ago. Finally we find out what it is (not) worth. Definitely an Appraisal Challenge!!

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Status Quo Bias: ‘Linear” Thinking in the Real Estate Industry

by Jonathan Miller

Excerpt: When we look at forecasting, planning, trending or anything that includes a look out over the future, I find the real estate industry (i.e. appraisers, real estate agents & brokers) generally thinks along linear lines.

For example:

When housing prices rise…they will rise forever.

When housing prices fall…they will fall forever.

When sales activity rises…they will rise for ever.

When inventory falls…it will fall forever.

When rental prices rise…they will rise forever.

…and so on.

Where does this status quo bias come from?

Click here for some more interesting comments..

http://www.millersamuel.com/status-quo-bias-linear-thinking-in-the-real-estate-industry/

My comment: Of course, I completely agree. It is very important if you work in a market like mine, where residential prices seem to go from stable to increasing and back overnight. I have no idea why. I go on the broker open house tour every week and see what agents are saying. For example, only 1 or 2 offers vs. 5-6 and longer days on market

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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 https://www.mba.org

Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to www.appraisaltoday.com/products or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

WASHINGTON, D.C. (September 14, 2016

Mortgage applications increased 4.2 percent from one week earlier,

according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 9, 2016. This week’s results included an adjustment for the Labor Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 4.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 17 percent compared with the previous week. The Refinance Index increased 2 percent from the previous week. The seasonally adjusted Purchase Index increased 9 percent from one week earlier. The unadjusted Purchase Index decreased 15 percent compared with the previous week and was 8 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to 62.9 percent of total applications from 64.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.6 percent of total applications.

The FHA share of total applications increased to 9.6 percent from 9.5 percent the week prior. The VA share of total applications increased to 12.0 percent from 11.9 percent the week prior. The USDA share of total applications increased to 0.7 percent from 0.6 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.67 percent from 3.68 percent, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.64 percent from 3.66 percent, with points increasing to 0.36 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.50 percent from 3.52 percent, with points decreasing to 0.27 from 0.35 (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 increased to 2.97 percent from 2.96 percent, with points unchanged at 0.34 (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 remained unchanged at 2.87 percent, with points increasing to 0.37 from 0.30 (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.

9-8-16 Newz// Increasing fees, Flawed FEMA maps, Loan apps way up

How many appraisers are increasing their fees?

Poll: In the past year, have your standard fees for a typical non-complex assignment? www.appraisalport.com

 

 

 

 

My comment: Good news that the majority of responses were for increased fees. But, less than $50 annual increase is low. If you work for AMCs, your fees will drop when business slows down, assuming you are not getting very low fees now. If you don’t ask for higher fees now, or drop AMCs that insist on low fees, you are losing lots of money. I keep increasing my fees by $50 every 3-4 months and am still below other local appraisers’ fees. Remember, there is little or no AMC “loyalty” to appraisers. They will not remember you when business slows down and you really need work.

WHAT DO YOU THINK? POST YOUR COMMENTS AND READ OTHER COMMENTS AT www.appraisaltodayblog.com

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McMansion Hell in Roseville CA

Just for Fun!!

Excerpt: Nothing in this world is a better metaphor for what politicians and marketers like to call “The American Dream” than the Californian tract house. Imagine – you too, could have your own sloppily put together plot of land on a nice street lined with other sloppily put together plots of land.

But you, of course, want your sloppily put together plot of land to be different from the sloppily put together plots of land of your peers. Now, your houses may have been built at the same time with the same plan by the same builder, but damn are you not determined to find a way to stand out from the crowd.

Finally, after the nth hour of HGTV, it dawns on you: the windows.

http://www.mcmansionhell.com/post/149807609446/roseville-ca

My comment: check out other interesting stuff on this web site. I didn’t even know there were any McMansions in Roseville!!

Read more!!

8-25-16 Newz://What are C&R fees when fees are changing?, 8 colorful cities, Flooded appraiser donations

Donation Fundraising for Louisiana Appraisers

Thanks (again) to Dave Towne for this info!!

Excerpt:

The Louisiana Real Estate Appraisers Coalition (LAREAC) has started a fund raising campaign using PayPal, which will be used to equally provide donated funds to affected appraisers who are suffering as a result of the massive flooding last weekend. PayPal is being used because its administrative fee is less than another more-well-known crowd funding web site.

There are approximately 8-10 presently known appraisers who have had their homes nearly destroyed in the flood.

http://appraisersblogs.com/donation-disaster-louisiana-appraisers

My comment: last week I wrote about donations to Bill Cobb, whose house was flooded. It is great that this donation method is done also.

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8 Colorful Cities that Look Like They Were Designed by Crayola

See the world in a whole new light through these vibrant locales.

Just for Fun!!!

Excerpt:

Many cities are known for their distinctive profiles and unique landmarks, but all across the globe there are regions that are landmarks in and of themselves thanks to their insane colorations. From a all-blue town in Spain that is a leftover from a Smurf marketing stunt, to a Venetian island that looks as though it was born of an intense acid trip, some of the most colorful locations in the world aren’t the biggest, just the most eye-popping. Check out eight cities and towns that offer vibrantly colorful views which are just as unforgettable as any big city skyline.

My comment: None are in the U.S. Too conservative I guess…

Great article with lots of photos and comments!!

http://www.atlasobscura.com/articles/8-colorful-cities-that-look-like-they-were-designed-by-crayola

Read more!!

8-11-16 Newz//How to fix the appraiser shortage now, Photo blurring, Gold medal for town planning in 1936 Olympics

America’s First Medal at the Nazi Olympics Was For…Town Planning

Excerpt: Yes, from 1928 until 1948, town planning was an actual Olympic sport.

Town planning fell under an “architectural design” category at the Olympic art competition. The field that year was dominated by German entries. Yet the first U.S. medal of the Olympics went to Lay, a New York architect, for his ambitious blueprint to modernize Marine Park in Brooklyn.

http://www.atlasobscura.com/articles/americas-first-medal-at-the-nazi-olympics-was-fortown-planning

My comment: I love these Obscure Olympic Facts ;>

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Photo blurring gone waay overboard!!

Excerpt: At issue was the ubiquitous “client requirement” involving digital masking of people from images. While lenders and AMCs wave the Fair Housing penalty flag in order to assure compliance; there is NO such law. Never has been.

Lenders need to re-examine the reason for all of these pointless and invasive interior shots. They add nothing meaningful to the file. Nobody is laying out mortgages for Beanie Baby collections and bad drapes. So why are appraisers wasting megapixels on decorating images?

AMCs are on notice to cease demanding and insisting that appraisers do digital staging. That is clearly in violation of Illinois law.

Click here to read the full article plus the comments, of course…

http://appraisersblogs.com/digital-staging-amc-fair-housing-myth

My comment: Blurring interior pictures on walls, personal objects, etc. seems very excessive. Don’t know about rooms with strange devices and chains hanging from walls and ceilings, etc ;> Maybe appraisers will only be able to appraise vacant homes with nothing in them without getting requests for blurring. This applies only to AMCs doing business in Illinois, but maybe the AMCs will quit doing it in other states.

Read more!!