Appraisal News and Business Tips

Posts Tagged mortgage loans

7-28-16 Newz Origin of tiny houses – HUD warning letters – FHA transfers

The Surprising Origins of the Tiny House Phenomenon

Why ancient hermits are the key to understanding our tiny home obsession

Excerpts”

Invariably, someone will remind you that civilization emerged from tiny houses-caves, yurts, tents, wigwams, igloos, grass huts, and so forth.

These early antecedents are beside the point. Sioux, Samoans, and Inuits were not offered more spacious alternatives. But people who opt for tiny houses-meaning the kind that tug at heartstrings and star on cable-generally choose to live small. The reasons aren’t just practical, but also ethical and emotional.

the true parents of tiny-house living are hermits. From the ancient Chinese Taoists in mountain caves to the Desert Fathers of third century Christianity and onward (the word “hermit” derives from the Greek word for “desert”), hermits were the first people to actively downsize to confined, remote, and minimally furnished living spaces.

Read the full story here:

http://www.curbed.com/2016/7/13/12162832/tiny-house-history-hermits

My comment: The most interesting article I have read on tiny houses. Of course, I started sailing sailboats in the early 1970s. Living aboard a sailboat is the Ultimate Tiny House!! Narrow and long but very portable… Another good link from Jonathan Miller…

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FHA Case Transfer, issued July 26, FHA INFO #16-49

Mortgagees should note the following about case transfers relative to appraisal reports in both the EAD (electronic appraisal delivery) portal and FHAC:

Read more!!

7-21-16 Newz//Bracketing-AMC staff appraisers-Appraiserville

8 Spooky New York Places That Should Be in the New Ghostbusters Movie

There’s something strange in these neighborhoods.

Excerpt: Here is one, but you gotta see the photos and the other 7!!

The Morris-Jumel Mansion

On a hill overlooking the Harlem River, the stately Morris-Jumel mansion is not only Manhattan’s oldest home but supposedly one of its most haunted. Its macabre history started after owner Stephen Jumel died in 1832. His wife Eliza was rumored to have had a hand in the death-there was some suspicion afoot that she orchestrated the carriage accident that killed him….

Take a break from typing appraisal reports and check it out!!

http://www.atlasobscura.com/articles/8-spooky-new-york-places-that-should-be-in-the-new-ghostbusters-movie

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The Shrinking of the American Lawn

As houses have gotten bigger, yard sizes have receded. What gives?

Excerpts:

The American house is growing. These days, the average new home encompasses 2,500 square feet, about 50 percent more area than the average house in the late 1970s, according to Census data. Compared to the typical house of 40 years ago, today’s likely has another bathroom and an extra bedroom, making it about the same size as the Brady Bunch house, which famously fit two families.

This expansion has come at a cost: the American lawn.

As homes have grown larger, the lots they’re built on have actually gotten smaller-average area is down 13 percent since 1978, to 0.19 acres. That might not seem like a lot, but after adjusting for houses’ bigger footprints, it appears the median yard has shrunk by more than 26 percent, and now stands at just 0.14 acres. The actual value lies somewhere between those two numbers, since a house’s square footage could include a second (or third) floor. Either way, it’s a substantial reduction.

Read the full story at: Very interesting!!

http://www.citylab.com/navigator/2016/07/the-shrinking-of-the-american-lawn/490157/

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There Go My Brackets

From the Illinois Appraiser June 2016

Excerpt:

Is it a USPAP violation to fail to bracket or end up with a tight bracket?

Read more!!

7-15-16 Newz//CU Crumbles-Refi mania-Urbanization since 3700 BC

The history of urbanization, 3700 BC – 2000 AD

Watch as the world’s cities appear one-by-one over 6,000 years

Fascinating!! Take a break from appraising and check this out!!

By 2030, 75 percent of the world’s population is expected to be living in cities. Today, about 54 percent of us do. In 1960, only 34 percent of the world lived in cities.

Urbanization didn’t begin in the 1960’s. But until recently, tracking its history much further back than that was a challenging task. The most comprehensive collection of urban population data available, U.N. World urbanization prospects, goes back only to 1950. But thanks to a report released last week by a Yale-led team of researchers, it’s now possible to analyze the history of cities over a much longer time frame.

http://metrocosm.com/history-of-cities/

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419.99 Mile Marker

Just For Fun

When zealous marijuana enthusiasts kept stealing the “Mile 420” highway marker, the State of Colorado got creative.

Another obscure factoid from atlasobscura.com ;>

Since the recreational use of marijuana was made legal in Colorado in 2012, the “Mile 420” post became a hot commodity. So hot, it kept disappearing – and the Colorado Department of Transportation got tired of replacing it.

Check out the photos (and try not to click on too many of the other weird stuff) at:

http://www.atlasobscura.com/places/41999-mile-marker

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Refis skyrocketing per Zillow – Brexit

Read more!!

7-7-16 Newz// Comp photos cost -Tech trends in 1776-Data and Scottish Scoundrel

The Scottish Scoundrel Who Changed How We See Data

When he wasn’t blackmailing lords and being sued for libel,

William Playfair invented the pie chart, the bar graph, and the line graph.

Excerpts:

Today, graphs and charts are seen as more efficient than words, letting us gulp information rather than sip it. For a large chunk of European history, though, this was far from the case. As statistician Howard Wainer explains in Graphic Discovery, 18th century academics actually looked down their noses at anything that resembled a picture.

Into this void stepped Playfair, a man with very little regard for tradition. Born in Scotland in 1759, Playfair was a kind of Forrest Gump of the Enlightenment, rubbing shoulders with the era’s many giants, switching careers at the drop of a hat, and throwing himself headlong into history-changing events, from the storming of the Bastille to the settling of the American West.

His graphical inventions, like many of his endeavors, were inspired by a certain disrespect for limits. He wasn’t so much an inventor as an intellectual remixer, taking bits and pieces of different people’s ideas and piecing them together into useful wholes.

http://www.atlasobscura.com/articles/the-scottish-scoundrel-who-changed-how-we-see-data

My comment: Fascinating! Plus a very entertaining writeup. Another good one from www.AtlasObscura.com – one of my favorite web sites!!

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8 Hottest Tech Trends in 1776

1. Underwater Warfare

4. Indoor Plumbing

5. High Tech Major Appliances

Read more!!

6-30-16 Newz // Most dangerous roads-Fees going up-Brexit and mortgages

The most dangerous places to drive in the world

Take a break and check out these places…

Excerpt:

Driving can be dangerous, and every one of us who attempt to control those speeding steel boxes of ours will, at some time or another, experience a dangerous or life-threatening situation. But the truth is, despite the occasional error of judgement or climate, driving in the US is largely safe, and you will most likely get to your destination calm and in one piece (or just in one piece, because traffic, right?). The world, however, is not the US, or even western Europe. And as you will see, driving styles, laws, and road conditions vary so much, that what might be an everyday commute for a native of Afghanistan would be a death-defying (or outright death-inviting) thrill ride for a driver in the Land of the Free.

http://www.grunge.com/15503/dangerous-places-drive-world/

My comment: Guess I won’t complain (as much) about getting stuck between 2 giant big rigs on the freeway ;>

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Complaints about high appraisal fees and long turn times

RAISE YOUR FEES!!!

Appraisers Remain Under Siege – Jonathan Miller

(Scroll down the page past the second graph)

Excerpt:

Here is a series of feedback from Rob Chrisman in his must read newsletter on the mortgage industry. It is a heavily read source of in-the-trenches mortgage insights that I subscribe to. He gave me permission to share his recent content on the appraisal industry and will share more of it in the coming weeks. I inserted my thoughts following each quote:

“And appraisals are always a hot topic. I received this note from an originator. “Our appraisal environment is out of control. Appraisals we used to get in 1-2 weeks have quickly gone to 3-4 weeks. Appraisals that were just $400 are now $550 and sometimes up to $1,100 for FHA and conventional appraisals. With the rules regulating appraisers on how to become an appraiser and how appraisers have to monitor everything an apprentice appraiser does, it is causing our homebuyers hardship. With the appraiser’s current workloads and the amount of appraisers we have lost in recent years, there is no motivation to bring apprentices on (due to those regulations), leaving the current appraisers working night and day to keep up with their workloads. That is also causing them to keep moving up the appraisal fees (basically rush fees to keep pushing who can pay the most up the line).”

Miller’s comments

It’s called “market forces” and because the AMC movement has gutted the industry, there are much fewer competent appraisers left. And please lay off the “hardship” angle. It’s tired and worn out. Mortgage rates are at historic lows and with the Brexit they will likely stay that way for a while. As I have said before, there is not a shortage of appraisers, there is a shortage of appraisers willing to work for half the market rate.

Worth reading, especially for Jonathon’s comments. http://www.millersamuel.com/note/june-24-2016/?goal=0_69c077008e-ca10724b99-116855313

Link to Chrisman article – scroll down the page to “And appraisals are always a hot topic”

http://www.robchrisman.com/2016/06/11/june-11-letters-notes-on-password-protection-mechanics-liens-and-the-current-state-of-the-appraisal-business/

My comments

Why are complaints about appraiser fees and turn times increasing so much? Supply and Demand. AMCs and lenders not allowing trainees to sign on their own – no new appraisers. AMCs trained their appraisers to bid against each other. Now, they are getting payback.

The Appraisal Foundation is frantically trying to reduce requirements for appraiser licensing in response to the current appraiser shortage. But, the problem is that lenders will not allow trainees to sign on their own. There was no shortage in the last boom prior to 2008.

In all the previous boom periods, since lenders started using appraisers in the 1930s, the increase in volume was handled by hiring armies of trainees who left the profession when business slowed down. Prior to licensing, lenders did this. After licensing, fee appraisers did it. But, soon after 2008 lenders would not allow trainees to sign on their own, so there was no one to handle the increase in business.

When AMCs took over appraisal ordering, many experienced appraisers left the profession due to low fees, increasing lender requirements, hassles, etc. Some stayed, who had direct lender clients or were willing to work for AMCs.

The AMC fee model is a bidding system, with AMCs often looking for the lowest bid. Now, sometimes they spend days looking for an appraiser who will work for low fees. Some of us have finally adapted by significantly increasing our fees.

AMCs have trained us to bid against each other. Even when business is very strong, AMCs continue to try to get low fees. Finally, after 8 years of this, appraisers have realized that when there is a shortage of appraisers we can increase our fees. We finally learned about Supply and Demand. This never occurred before.

Many appraisers (and other business owners) have great difficulty turning down work, even with low fees. After years of telling appraisers to raise their fees, finally some appraisers are listening.

Read more!!

6-23-16 Newz:: San Francisco under water – Funny owner DIYs – C/R complaints

 In 100 Years, $77 Billion Worth Of San Francisco Property Could Be Underwater

Excerpts:

Around the city, more than 200,000 commercial and residential buildings-along with major infrastructure like the airport-are at risk from either temporary flooding or permanent loss due to sea level rise if the city does nothing to prepare. Even more dangerously, the risk extends well inland, and isn’t limited to property directly on the coast.

Armed with the new maps, San Francisco is currently creating a strategy to try to save as much property as possible. “It’s almost inevitable that, in the end, the plan will be a combination of multiple approaches,” says VanderMarck. “One approach in some areas will be to surrender to the fact that seas are rising-it’s impractical, either economically or for other reasons, to try to defend against that in certain areas.” In other places, the city may build higher walls or other defenses.

In the Ocean Beach neighborhood, for example, it’s likely that the city will reroute portions of the road that’s currently along the water, replacing some areas with open space, while also building up dunes and protecting some infrastructure like a wastewater tunnel. On Treasure Island, where the city is planning to build a new sustainable community, any new housing will be set back from the water, with parks along the edges-parks that very likely will be reclaimed by the bay.

My comment: FEMA is rezoning all the coastal properties in the U.S., including my small island city in San Francisco Bay. Of course, the big complaint was having to buy flood insurance for those who have mortgages….

Check out the full article and the very interesting graphics:

http://www.fastcoexist.com/3060770/in-100-years-77-billion-of-san-francisco-property-could-be-underwater

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Not C/R fees? File a complaint with the FDIC!!

Excerpt:

Here is what VaCAP received from an appraiser who reached out to the FDIC:

I just had a call from an extremely pleasant lady named Susan Welch from the FDIC Consumer Response Center (1-800-378-9581). I had sent a note over regarding an AMC attempting to get me to sign a “Base Fee Letter” agreeing to a drop of my base fee for full appraisals to $325 from $400-500. She said the FDIC is VERY interested in hearing from appraisers regarding AMCs paying low fees. As you know FDIC regulates the banks, who are responsible for third party oversight with AMCs they engage. FDIC wants Regulation Z to be followed and will enforce it for appraisers.

Incidentally I opted to have them proceed while keeping me anonymous, a la whistle blower status. Susan said she would be surprised if they had not investigated this within 90 days.

FDIC bank examiners will contact the bank involved and look at their procedures for engaging appraisers, look at fees appraisers are actually paid versus what is considered C&R based on things like the VA sheet and go from there.

Click here for more info plus read the comments:

http://appraisersblogs.com/low-amc-fees-fdic-appraisers-regulationz

Read more!!

5-12-16 Newz .Geographic competency .Killing home values .Fair housing

The Most Insane Property Description Ever

Short descriptions, click here for some humor!! Reminds me of the times I am driving to the subject, hoping the house ahead is not the one I am appraising… Probably not the Most Insane, but definitely reality-based!!

http://www.thebrokeagent.com/blog-1/2016/4/the-most-insane-property-description-ever

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These Neighborhood Amenities Can Kill Your Property Value

Excerpt: In real estate, the phrase “cash is king” is oft overused. However, if you’re struggling to sell a house in a bad ‘hood, then you already know that in reality, location is king. Purchasing a home in a great area, or an area that is up-and-coming, can help maximize the value of your home investment.

So what can tear your property value down faster than a tree through the roof? The following infographic from Realtor.com offers insight-and some will surprise you!

Link to original article:

http://blog.rismedia.com/2016/these-neighborhood-amenities-can-kill-your-property-value

My comment: Of course, the effect on value varies by location – cemeteries for example.

Read more!!

4-7-16 Newz .Verifying sales .Big data .Weird bathrooms

8 Bizarre Bathrooms from Around the World

“From pop-up toilets in city streets to a bathroom surrounded entirely by an aquarium, these public and private bathrooms are beyond bizarre-and you need to see them!”

Take a break from appraising and check these out. Definitely Weird!!

http://blog.rismedia.com/2016/keepin-it-weird-8-bizarre-bathrooms

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Recent acquisitions of appraisal and title companies

Another great commentary from Dave Towne. Thanks again, Dave!!

From the article in Housingwire.com:

First American Mortgage Solutions, a subsidiary of First American Financial Corporation, acquired Forsythe Appraisals, supplementing its existing valuation capabilities.

Forsythe Appraisals is one of the largest independent residential appraisal company in the United States and offers real estate valuation solutions with nationwide coverage.

Under the acquisition, Forsythe’s management team, including President and CEO John Forsythe, Senior Director of Customer Development Tim Forsythe and Chief Appraiser Alan Hummel, will continue to lead those operations.

http://www.housingwire.com/articles/36672-first-american-mortgage-snaps-up-valuation-veteran-forsythe-appraisals

Read more!!

3-17-16 Newz .Pulling permits .Fannie FAQs .Refi revival

Appraisal and Property Related Frequently Asked Questions (FAQs)

February 12, 2016

This FAQ document provides responses to common questions related to Fannie Mae’s property eligibility and appraisal policies. Following the FAQs, the Attachment on page 10 provides Guidelines for Using Market Conditions Addendum to the Appraisal Report (Form 1004MC).

https://www.fanniemae.com/content/faq/appraisal-property-report-faqs.pdf   

My comments: This document does not have a lot of new material, but it is always good to read this so you can cut and paste some of Fannie’s comments into your reports as an explanation. In this month’s paid Appraisal Today I had two articles on the 1004mc form:

1004MC – the good, the bad, and what Fannie says

Statistical errors in the 1004MC by George Dell, MAI, SRA – He has been fighting with Fannie since the form was first required in April 2009

 More articles are coming soon in the paid Appraisal Today on how to handle the issues.

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Tiny ‘Harry Potter-looking’ homes under construction in North Texas

Excerpt:

Builder Rudy Rivas’ newest house would fit inside the master bedroom of the custom homes he constructs in North Texas.

The average new home being built in America is more than 2,700 square feet – the biggest ever.

So why’s a Dallas custom builder starting a 180-square-foot house?

Read more!!

Newz 3-3-15 Abandoned places, Late appraisal, Cost vs value, Fees

Spam blockers are going wild!!! I have made some changes in subject line and some changes in newsletter content so more subscribers will get this newsletter. I can’t even mention some of the changes as using the words may send this email to spam!!!
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17 abandoned places around the world
Take a break from your appraisals with these Interesting Links!!
 
Here are a few:
1.  House of the Bulgarian Communist Party – Mount Buzludzha, Bulgaria
9. Michigan Central Station – Detroit, Michigan, United States
10. Sarajevo Olympic Bobsleigh and Luge Track – Sarajevo, Bosnia and Herzegovina
Good for taking an appraisal break!!
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Read more!!