The Power of Praise for Appraisers and Clients 3-24-23

The Power of Praise

By Rachel Massey, SRA, AI-RRS, CDEI

Excerpts: …I received a really nice compliment from a reviewer with the Farm Credit Bureau. I had completed a complex appraisal assignment and was expecting multiple revision requests, but instead, got a note saying how thorough my appraisal report was and thanking me for the work. A couple days later, I got a call from a relocation company reviewer on another mind-boggling relocation assignment. Again, I was expecting multiple questions about the report since it was complex and atypical for the area. Instead this reviewer proceeded to tell me that it was one of the most detailed and well-developed reports he had seen in all his years reviewing relocation work. Boy I wish I had that one in writing!

Granted, I tend to be a bit verbose because I like to write, and I believe that it is important that my work be understandable, and not just now but in the future. I tend to put a similar amount of effort into the communication side for all clients, and like to think that my work product is solid. This begs the question of why two reviewers went out of their way to compliment my work, when it seems that almost every mortgage assignment that I complete for a production group, comes back with stipulations.

Stipulations that I forgot to add a listing which was a requirement of the engagement agreement (yes, I missed that) or that I didn’t put a sketch of an unfinished basement in the report (yes, I missed that as well). No words of thank you for an otherwise job well done. I missed something, fix it.

To read more, click here

My comments: Rachel is one of my favorite appraisal authors. She has seen all sides of the residential appraisal profession. Rachel has shifted between lender staff appraiser and reviewer and fee appraisals. Currently, she is a reviewer for a large lender. You could send a link to this article to a Very Picky or Very Supportive reviewer.>

Why Appraisers Love Appraising!

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 non-lender appraisals and liability, sharing comps, Fannie Update, unusual homes, mortgage origination stats, etc.

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

Sculptural Home in Venice, CA, Hits the Market for $5.8M

 

Excerpts: The gated compound has four bedrooms and 3.5 baths, in 2,522 square feet of living space. Lot size is 2,701 sq.ft.

The unique, asymmetrical exterior is described as having “raw drama,” and that appraisal certainly fits. The home is built of concrete, glass, wood, and structural steel.

J. Stewart Burns, a TV writer and producer whose projects include “The Simpsons” and “Futurama,” purchased the wildly original Venice landmark in 2014 for $2,300,000, property records show. He recently listed the home for $5,800,000.

An outdoor bridge connects one wing of the home to another, allowing access to the spectacular rooftop deck. A bar, comfortable seating area, and expansive views make the deck one of the home’s many highlights.

The primary suite features remarkable wood built-ins, a closet, and a bath, where the windows and skylights are discreetly frosted.

To read more click here 

My comments: Fascinating interior photos!

To see the listing, click here

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

Dos and Don’ts of Sharing Comparable Sales

By: McKissock

Excerpts: When real estate agents provide relevant comparable sales to appraisers, it certainly benefits both parties. Agents can ensure that appraisers are reviewing comparables that match their properties and, hopefully, meet the seller’s desired price. Additionally, while appraisers still must verify the information, it can save them time. Here are some dos and don’ts to follow as agents and appraisers work together on establishing comps for appraisal properties.

Don’t use comps based on price

If the agent has a predetermined value in mind, they will find comparable sales to support that biased opinion.

Do consider neighborhood attributes

To read more, click here

My comments: Some good tips when dealing with agent-supplied comps.

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

Estate/trust appraisal liability advice from Peter Christensen

Here are some general pointers:

1. Never use a lending form (such as a 1004) for estate work. Yes, appraisers do this. While most of the time, appraisers get away with it (unless it’s an appraisal that goes to the IRS), it sometimes wreaks havoc for appraisers in discipline and claims.

2. Get the relevant date of value from the client or the client’s attorney. The date of value can be a legal issue, and the appraiser should not be the one accepting responsibility for whether the date of value is correct for whatever the use is (such as an estate tax return).

3. Keep the definition of intended users as narrow as possible. If an executor of an estate is hiring you, for example, just say the executor is your client and only intended user (add the IRS if it’s relevant). Do not say the intended users are all the beneficiaries of an estate or trust. Doing so potentially expands your liability to all those parties.

4. Keep your definition of intended use as narrow as possible to describe how your appraisal will be used by your client. For example, you don’t want your appraisal for the executor being used by a beneficiary down the road to sell the property to someone. So, don’t say something open ended like: “the intended use is to provide a fair market value of the property.” Say, instead, “the intended use of this appraisal is for the executor’s use in administrating the estate of . . . The appraisal should not be used for any other purpose.”

5. For non-lending work like estate work, you can use a good, protective engagement agreement. Be sure to get it signed. An unsigned agreement is basically worthless. In the agreement consider including limitations of liability and time limitations on claims.

To read lots more about this topic, plus 2+ years of previous issues, subscribe to the paid Appraisal Today.

If this article helped you understand what is needed to decrease liability risks for estate/trust appraisals, it is worth the subscription price!

—————————————————————-

Cancel at any time for any reason!

You will receive a prorated refund.

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

or $99 per year or $169 for two years

Subscribers get FREE: past 18+ months of past newsletters

To purchase the Monthly Appraisal Today newsletter:

www.appraisaltoday.com/order or call 510-865-8041

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

Things to Love (and Hate) About Appraising

By David Hyman

Excerpts: Is there a career with more inherent paradoxes than real estate appraising? It’s a highly social profession – and yet it’s solitary. Every appraisal decision we come to requires lots of verified data – but also our intuition and opinions. Our calendar fills up with orders when the real estate market heats up. But when the market nosedives, lenders need to reassess their portfolios – so, again, our calendar fills up with orders.

To be a real estate appraiser is to live with these strange contradictions every day. And here’s another one: There are things you’ll love – and absolutely despise – about this profession. Here are a few examples of both, at least from my standpoint, starting with things I love.

Meeting new people

This is my favorite thing about being an appraiser. I love talking to people, learning about their homes, but also about their jobs and lives. I’ve appraised properties for a professional surfer, a jeweler, a mortgage executive, a famous rapper, single people living alone, married couples with five kids in the house—you name it. And most of these people are eager to chat.

How many other professions let you spend quality time with such a wide cross-section of humanity?

Changing rules

A few years ago, appraisers could work directly for mortgage companies without any issue. Then… well, you know what happened… and now we can’t. A few years ago, the standard 1004 residential appraisal form was a handful of pages. Now, if my math is correct, it’s about 10,780 pages (front and back).

The rules governing the appraisal industry can swing wildly and often. And that can be frustrating…

To read more, click here

My comments: Short. Worth reading. What do you like and dislike about appraising? Does it change over time? I have been appraising for over 45 years and still love it! Every appraisal is a challenge. I really like being in the field, out of my office. Of course, I gave up residential lender appraising in 2005, before AMCs took over but I liked lender appraising except for the huge ups and downs in business. I have always loved non-lender appraising.

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

25 Animal-Shaped Buildings from Around the World 0k 3-23

Just For Fun. We need it!!

A kindergarten shaped like a cat, a skyscraper shaped like an elephant, a hotel shaped like a crocodile — these are just a few of the forms that animal-shaped architecture has taken. Whether to reflect the role of the building, like a fisheries department shaped like a fish, or just for the sheer whimsy of it, like roadside attractions shaped like dinosaurs and whales, this “zoomorphic” style appears all over.

Here are a few:

Cat Kindergarden (Photo above)

Lucy the Elephant

Blue Whale

To read more, click here

My comments: Take a break and scroll through. Funny, strange, and sorta practical. And More. One of my favorite links!

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

Fannie Mae March 2023 Update

Email dated 3-21-23

Email excerpts: Welcome to our March 2023 Fannie Mae Appraiser Update. Our focus in this edition is on recent changes to Fannie Mae policies and programs, and how they may impact you.

In March we announced a new collateral option called value acceptance + property data. Here we share ideas on how property data collection (PDC) may be a business opportunity for you.

In some cases, PDC may lead to a hybrid appraisal assignment, so we also share baseline requirements for completing hybrid appraisals.

Keep reading for an update on three new types of Appraiser Quality Monitoring letters and learn what you can do to avoid those deficiencies in your reports.

We also cover recent changes to the MH Advantage® program, other manufactured home reminders, and tips on what must happen to decommission an accessory dwelling unit (ADU).

To read the full report (PDF), Click here

My comments: Mostly discussion on hybrids, but good appraiser information on Appraiser Quality Monitoring (AQM) new letters. Worth reading. Fannie has not said much about AQMs for appraisers. Fannie keeps trying to “sell” hybrids to appraisers. I would probably not do them as Iike field appraising, but it may work for some appraisers, especially since business is slow now for lender appraisals.

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

HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, click here.Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.

My comments: Rates are going up and down. Some appraisers are very busy, and others have little work. Varies widely around the country.

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

Mortgage applications increased 3.0 percent from one week earlier

Mortgage applications increased 3.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 17, 2023.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.0 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 increased 5 percent from the previous week and was 68 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 3 percent compared with the previous week and was 36 percent lower than the same week one year ago.

“Treasury yields declined last week, driven by uncertainty over the health of the banking sector and worries about the broader impact on the economy. Mortgage rates declined for the second week in a row, with the 30-year fixed rate dropping to 6.48 percent, the lowest level in a month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “However, mortgage rates have not dropped as much as Treasury rates due to increased MBS market volatility. The spread between the 30-year fixed and 10-year Treasury remained wide at around 300 basis points, compared to a more typical spread of 180 basis points.”

Added Kan, “Both purchase and refinance applications increased for the third week in a row as borrowers took the opportunity to act, even though overall application volume remains at relatively low levels.”

The refinance share of mortgage activity increased to 28.6 percent of total applications from 28.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.6 percent of total applications.

The FHA share of total applications decreased to 12.3 percent from 12.9 percent the week prior. The VA share of total applications decreased to 11.7 percent from 11.9 percent the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.48 percent from 6.71 percent, with points decreasing to 0.66 from0.79 (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 $726,200)decreased to 6.30 percent from 6.39 percent, with points decreasing to 0.55 from 0.61 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.32 percent from 6.58 percent, with points decreasing to 1.07 from 1.20 (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 6.02 percent from 6.14 percent, with points decreasing to 0.60 from 0.77 (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 5.58 percent from 5.69 percent, with points decreasing to 0.75 from 0.87 (including the origination fee) for 80 percent LTV loans. The effective rate decreased 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.

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

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

Appraiser Gets Subpoena – What to Do 3-17-23

Appraiser Gets Subpoena – What to Do

Excerpts: As an appraiser, you don’t have to be sued or be facing a lawsuit to find yourself on the receiving end of a subpoena—staring down a lawyer who is peppering you with questions.

Appraisers are often subpoenaed in legal disputes involving third parties, usually being tied to the dispute for no other reason than having appraised a property involved in the dispute. If the appraiser is not a party to the lawsuit, then typically they are being subpoenaed for documents and/or being called as an expert witness, sometimes without pay, to testify regarding a past appraisal.

First, subpoenas are court orders and you must not ignore the subpoena or you will find yourself in contempt of court. Tim Andersen, MAI, MSc, USPAP instructor and CEO of TheAppraisersAdvocate.com, says that if an appraiser doesn’t want to comply with a subpoena they can try to fight it, but that requires hiring a lawyer, which can be costly and has its own challenges. “One approach is to protest the subpoena to the judge indicating that your records are private, and requesting that your records be treated as confidential and not be made part of the public record. The judge, however, will do whatever s/he chooses to do,” reports Andersen.

To read more, click here

My comments: This is an excellent article on this topic. Read it to find out the issues. If you lost this link later, when you need help, Google “Dealing with a Subpoena Workingre”. This is specifically for appraisers. If you find other links online, they are not as useful.

I have never been served with a subpoena, but this is a regular topic among appraisers. I get calls occasionally from appraisers about this.

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 non-lender appraisals, real estate market, regression and AVMs, unusual homes, mortgage origination stats, etc.

Read more!!

Fannie Mae: No Appraisals Required? 3-10-23

Fannie Mae: Appraisals are no longer the default option: Value Acceptance replaces Appraisal Waiver

Fannie Mae updated its Selling Guide on March 1 to include more options for property valuations, saying that they are “moving away from implying that an appraisal is a default requirement.”  Those options include value acceptance (formerly appraisal waivers), value acceptance plus property data and hybrid appraisals.

———————————————

Fannie Mae – No Appraisals Required – The End of Appraisers?

Hamp Thomas 12 minute video – my favorite commentary on this issue!

Fannie Mae took a direct shot at appraisers today with the announcement of changes in their Selling Guide. Two options for the future, both of which do great harm to the appraisal industry.

First, “third party” inspections. Appraisal trainees aren’t good enough, so now we will have unlicensed inspectors going through the homes of unsuspecting homeowners. And, with this inspection a traditional appraisal is no longer a requirement for the mortgage loan.

Secondly, the 3rd party inspection is sent to a licensed appraiser. FNMA wants an appraiser’s signature so the appraiser can be held responsible if there’s any problem in the future. Both options say they are good for consumers and both options are filled with fabrications and misinformation. At the end of it all, it’s about control and profits. Why trainees can’t provide the data is simply because big banking and AMC’s don’t make profit from the inspection part of the process.

If appraisers don’t stand up and say no, right now, the running joke of the appraisal industry could be gone in five years; well, it just very well may come true. Ok appraisers, it’s time to speak out and stand together.

The only reason for these changes are about a piece of the 11 TRILLION dollar mortgage market. And that’s the way it is – March 1, 2023.

To watch the video, click here

My comments: Worth watching the video. Call to Action. Hamp is an excellent speaker and teacher.

————————————————-

Fannie Statement: “Value acceptance + property data has arrived”

“This new option reduces cycle times and may reduce borrower costs, promotes safety and soundness by obtaining a current observation of the subject property, and provides operational simplicity and certainty at time of loan application.“

To read what Fannie says, click here

————————–

Link to Fannie SEL-2023-02: Selling Guide Updates PDF

To read more, click here

My comments: Lenders Are Happeeee! Those darn appraisers and appraisals have always taken too much time. Fannie sells their loans to investors. The more loans, the more money Fannie makes. I did not include links to what the happy lenders say. You already know.Clear the Tracks!

Fannie Wants Desktop Appraisals

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 Non-lender appraisals, AMCs, unusual homes, mortgage origination stats, etc.

Read more!!

AMC Alleged Violations of Appraiser Independence Requirements

Fastapp AMC Alleged Violations of AIR (Appraiser Independence Requirements)

Excerpts: The following court documents in the case Naftali Horowitz v. xxx, Fastapp AMC founder v. Fastapp AMC president, confirm what appraisers have been saying all along, that if you want high-volume AMC work, you have to lower your fees to 1980’s level, have 24 hour turn times, and, above all, be a number hitter.

Horowitz claimed that Andrews engaged in conduct constituting potential violations of the Appraiser Independence Requirements under the Dodd-Frank Act of 2010 (“Dodd-Frank Act”), including unlawfully seeking to influence an appraiser to encourage a targeted value to facilitate the making or pricing of the transaction in violation of 15 U.S.C. § 1639e(b)(3).

… it began to become apparent to Andrews that Horowitz was not complying with appraisal independence standards. Instead, Horowitz would personally select one of a small number of his preferred appraisers for any given appraisal request… It thus became apparent to Andrews that Horowitz was engaged in a widespread scheme in violation of federal law by assigning appraisals to appraisers who would appraise values at requested values in exchange for order flow.

To read more plus over 50 appraiser comments, click here

My comment: Copies of the emails tell the story of “cooperative” appraisers getting most of the assignments. Very similar to the old mortgage broker days. A primary reason for Dodd-Frank.

AMC Fined for Appraisal Order Blast Violation

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 estate/trust appraisals and Fannie changesunusual homes, mortgage origination stats, etc.

Read more!!

Appraisal Profession Dying?

Bringing More People Into a Dying Profession?

By Dave Towne, Jan. 23, 2023

My comment: This only applies to residential lending appraisals, of course. My non-lender appraisals have changed very little with few, if any new “requirements”. I determine the Scope of Work.

Excerpts: Some people want to bring more people (primarily of color, which is great) into a dying profession. But the profession is being killed off by (mostly white!) people who think technology is the golden spoon to accurate valuations.

PAREA is being touted as the savior and the best appropriate way to get new people into this profession, especially people of color. Really? Let’s see. The education providers currently writing the PAREA courses have been indicating that the course cost will be up to 5 figures, roughly $10,000 or possibly more. That’s an outlay of significant cash BEFORE actually connecting with an appraiser who will put the PAREA-educated appraiser to work.

To read more, plus over 60 appraiser comments, click here

My comments: This only applies to residential lending appraisals, of course. My non-lender appraisals have changed very little with few, if any new “requirements”. I determine the Scope of Work.

I definitely prefer “profession” to “business”. I have always been a professional appraiser. I quit doing residential lender appraisals in 2005. I had good clients but did not like the dramatic volume changes. It has gotten very bad since AMCs took over.

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 Costar and residential, non-lender appraisals., Humor, Zillow, unusual homes, mortgage origination stats, etc.

Read more!!

FHA Handbook 4000.1 Appraisal Changes

FHA Handbook 4000.1 Appraisal Changes

By Dan Bradley

Excerpts: On January 18, 2023, HUD issued an announcement regarding revisions made to Handbook 4000.1. According to the announcement, the revisions included “enhancements and revisions to existing guidelines and various technical edits.”

The most significant of these revisions was the elimination of the requirement to include the 1004MC form as an attachment to the appraisal report.

Changes to the Handbook also include several other minor, but nevertheless meaningful, edits and clarifications to FHA appraisal requirements, including:

Under “Attic Observation Requirements,” a clarification was made regarding the appraiser’s obligation to “safely” access the attic. The language requiring a minimum “head and shoulders” access into the attic was deleted.

Under “Crawl Space Observation Requirements,” significant revisions were made, including removal of a bullet point list of MPR/MPS criteria for the crawl space. Also, language requiring a minimum “head and shoulders” access into the crawl space was deleted.

The changes outlined in the Handbook may be implemented immediately but must be implemented for FHA cases assigned on or after April 18, 2023.

To read more, click here

My comments: Many thanks to McKissock for telling us what we need to know. Includes a link to the “redline” version of 4000.1 so you can skip over most of it. Scroll down to “Updates, Revisions, Notifications” to get the redline versions.

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

Revised FHA Handbook 4000.1 effective 9/14/15. Are you ready for the changes? Get the facts!!

Appraisal Business Tips 

Humor for Appraisers

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, mortgage origination stats, etc.

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

Read more!!

Appraiser Scam – Be Careful!

Appraiser Scam – Be Careful!

Posted Jan 5 on National Appraisers Forum. This was also posted in the 100% Appraisers group on FaceBook as happening to others.

“Last week, I received a text from “Master Chief Robert Roy” requesting an appraisal for a cash purchase. I thought it was odd that he was addressing himself by his rank as I do work for the VA and no service member has ever done that in my experience. Also my daughter’s boyfriend, a West Point graduate, was visiting at the time and he also thought it was odd too. I looked him up on line and saw that he was a Navy Seal and a public speaker. I addressed him as Sir in our texts out of respect.“

“He requested that I inspect the property 1/5/2023 as the inspector would be there at the same time. My fee was $775 however sent me a $1950 cashier’s check via Fed Ex the next day. He stated that his assistant mistakenly included the inspector’s fee and would I please pay the inspector the $1175 balance. (That seemed high for an inspector….) “

One of the responses:

“Sorry this happened to you. I posted about this about a month ago. Same guy. Because it seemed so odd, I didn’t respond to him and instead called the listing agent directly. He said I was the 4th female appraiser to call him about this in 24 hours. He had reported it all to the police. I never responded to the dude, as it is obviously a scam or worse. When I researched the name he was using, I found that person to be deceased. “

My comments: When appraisers are very slow, it is very hard to turn down an appraisal. Savvy scammers may know about this. Beware!!

1-12-17 Newz .New scam: owners pose as renters, 21 day turn times

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 all cash sales, bad bank, FHFA/Fannie, speaking at real estate agent meetings, unusual homes, mortgage origination stats, etc.

Read more!!

Appraiser Professional Goals

1-6-23 NEWSLETTER

Appraisers Share Their Top Professional Goals for 2023

By: McKissock (Survey)

Excerpts:

  • Maintain my current business (26%)
  • Earn a designation or certification (16%)
  • Grow my business (15%)
  • Prepare for retirement (12%)

“I would like to turn over my appraisal business to my daughter, who is certified.”

Should have retired last year but put it off due to the high amount of requests!”

After 23 years in appraising, which was very beneficial for me and my customers, I’m preparing for retirement.”

  • Achieve a better work-life balance (10%)
  • Other (6%)

To read more, including personal comments from appraisers, click here.

My comments: The post has links to some topics above with many tips. I have recently been writing about many of these topics since the market changed.

I write about non-lender work, staying up when business is down, retirement planning, and more in my monthly newsletter. I will be writing soon about upgrading to Certified General. I have always done both commercial and residential. My business has been much more stable as I can shift between them when the appraisal markets change, especially fees.

What are you planning to do in 2023? Now is the time to learn all the features in your MLS and forms software, upgrade your skills by taking seminars and classes, and more.

The future of residential appraising

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 USPAP and non-traditional appraisals, Non-lender appraisals, reos, tear downs, unusual homes, mortgage origination stats, etc.

Read more!!

VA Required to Encourage Hybrid Appraisals

  • VA Required to Encourage Hybrids – Senate Passes HR 7735

    By Dave Towne December 21, 2022

    Excerpts: The U.S. Senate has announced the passage of HR 7735, the Improving Access to the VA Home Loan Benefit Act of 2022.

    Under the terms of HR 7735, sponsored by Sen. Dan Sullivan and Rep. Mike Bost, the VA will be required to:

    • Issue certification requirements for appraisers;
    • Execute minimum property requirements;
    • Review the process for selecting and reviewing comparable sales;
    • Implement quality control processes;
    • Establish the Assisted Appraisal Processing Program; and
    • Establish the use of waivers or other alternatives to existing appraisal processes.

    This is not yet ‘law,’ but likely will be in the not too distant future. Has passed House and Senate. Needs Biden’s signature.

    To read more, click here

    My comments: Read the appraisers’ comments. The law is not surprising. The mortgage industry has been wanting this for a long time. I still recommend VA to appraisers as they are the only mortgage organization that wants to help the borrower instead of making as much money as possible

Where VA loans are soaring. Are you doing VA appraisals?

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 Bad appraisers, 2023 forecast, unusual homes, mortgage origination stats, etc.

Read more!!

Unacceptable Appraisal Practices from Freddie Mac

12 Unacceptable Appraisal Practices from Freddie Mac

10-5-22

 

 

Here are 5:

  • Reliance in any appraisal analysis on inappropriate comparable sales, or the failure to use comparable sales that are more similar to or nearer to the subject property without adequate explanation
  • Use of unsupported or subjective terms to assess or rate, such as, but not limited to, “high,” “low,” “good,” “bad,” “fair,” “poor,” “strong,” “weak,” “rapid,” “slow,” “fast” or “average” without providing a foundation for analysis and contextual information
  • Use of comparable sales data provided by interested parties to the transaction without verification by a disinterested party
  • The use of inordinate adjustments for differences between the subject property and the comparable sales that do not reflect the market’s reaction to such differences, or the failure to make proper adjustments when they are clearly necessary
  • Development of value and/or marketability conclusions that are not supported by available market data

To read more, click here

My comments: From Freddie Mac’s Selling Guide with links to more information. Nothing new, but good reminders.

Review appraiser liability

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 barndominiums, liability, declining prices, non-lender marketing, Freddie bad appraisal practices, unusual homes, mortgage origination stats, etc.

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

Read more!!