Appraisal News and Business Tips

Posts Tagged state appraiser regulators

10-11-18 Newz://Dome Homes – Tandem Bedrooms – Competency

8 Dome Homes Ideal for Well-Rounded Buyers

Excerpt: Geodesic dome homes always strike a chord with buyers looking for a different type of house.

They’re also in favor these days thanks to their cosmic, forward-looking designs. Futurist and architect Buckminster Fuller conceived the geodesic dome in the belief that the shape of these rounded dwellings was the most efficient use of resources possible, and that the homes were ideal for mind, body, and spirit.

Here are a few:
– 37849 W Johnson Lake Ln, Marcell, MN Price: $129,000
– 35685 Lake Summit Dr, Temecula, CA Price: $775,000 – Two connected domes
– 5825 E Saguaro Rd, Cave Creek, AZPrice: $469,000 – Price includes a large maze

Check out the fotos and info at:

My comment: They all kinda look the same to me ;> I have never appraised one, but don’t miss it. Very few here. Just use other odd ball properties as comps I guess. There is one in a nearby city that I drive by regularly as a reminder of what I don’t want to appraise ;>

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Is the market tanking or softening?

Video by Ryan Lundquist
About the Sacramento CA market, but applies to all markets
21 minute video. Worth watching.
More articles by Ryan at http://sacramentoappraisalblog.com
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Read more!!

8-2-18 Newz .1004MC dropped, Treasury Proposes Appraisal Downsizing, Rural Appraisals

No more 1004MC for Fannie appraisals

Date: 7/30/18 1:46
My note: This was posted in an appraiser yahoo email discussion group I have subscribed to since it started awhile ago. The person who sent it is very reliable. I have known him personally for many years. Below is the email. When I used to travel a lot to appraisal conferences, sometimes Fannie would make comments on significant changes. This was one of those comments. When I speak I am a lot more candid than when I write for unknown reasons. Maybe Fannie speakers do the same sometimes.
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Posted discussion group message:
“I’m in Nashville at the National Appraisal Institute Conference. I just left a presentation given by the collateral policy managers at Fannie Mae and Freddie Mac.”

The Fannie spokesperson said that Fannie Mae has decided not to make the 1004MC a required from anymore; the change will be effective as of the new Selling Guide update, which is expected to come out next week.

I asked Freddie if they planned to drop the requirement as well? They said they had considered dropping it when the new reporting formats were finalized, but also said in light of Fannie’s announcement, they may not wait until the form-changes and adopt that decision sooner.

The Fannie spokesperson said that just because Fannie won’t requirement doesn’t mean a lender might not still want it. So, she warned not to expect all lenders to adopt the change instantly.

In my opinion, I think most lenders will opt out of the 1004mc form, but will require something else (data/analysis) in the report to support the market condition identification and adjustments (if warranted). So I don’t anticipate the need for market condition analyses to go away (and it shouldn’t, in my opinion) but I do anticipate more flexibility in the manner we (individual appraisers) want to present that data.”

What I think about 1004MC: The 1004MC forced appraisers to make market conditions adjustments, which lenders had to accept. When I started my appraisal business in 1986, I was told by local, well respected appraisers that lenders “did not want any time adjustments.” Apparently this had been going on for many years. During price declines in the 1990s, I personally knew appraisers who went out of business because they refused to not make time adjustments. All my lender clients allowed them or they were off my approved client list.

I started appraising in the 1970s at assessor’s offices. We were making 2% per month time adjustments. Guess I just got “bad training” for lender appraisals ;>

Appraiser comments: Of course, there were lots of appraiser comments. Dave Towne’s are below:
~1 Lenders and AMC’s (and the other gov’t agencies) won’t back down on requiring the 1004MC form in reports. So you will have to do it, regardless of what the GSE’s do.

~2 Some report users may design their own market conditions reporting form, and demand its inclusion in reports per their own assignment conditions.(One no-longer-in business-by that-name AMC did this in 2008, and demanded their form be included even after the MC form became mandated – until appraisers loudly complained.) These may not be acceptable to other lenders/users. So we could have a situation where multiple users have different forms required, which will greatly complicate completion of reports in a timely manner.

~3 The several report software providers may design something to replace the MC form, which you could then be used in reports. But if 4 (or more) different ones exist, the same situation as in #3 will occur.

~4 The GSE’s may have another form already prepared to replace the MC Form and will demand it be used instead. (By the way….”new appraisal report forms” to replace the current ones are nowhere ready to be released, at least from what the GSE’s have said in the past couple of months.)

~5 Smart, and well versed, appraisers will continue to provide supportable documents and analysis to show market trend activity – which they’ve already been including in reports as a substitute to the MC form. Appraisers who have not been doing this should take steps to learn how to document subject/comparable market trends that are specific to each assignment, and not just a regurgitation of ‘regional’ or ‘national’ trends data reported by others that may not directly apply to the appraisal assignment.

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6-14-18 Newz//New Fannie Selling Guide, AMC Changes, Crazy Restrooms

Dodd-Frank rollback weakens appraisal standards

Excerpts: Under the new law… smaller banks and credit unions will now be free to waive an appraisal for rural properties valued under $400,000, when they can’t find an appraiser in a timely manner.

Most loans are sold into the secondary market. It is a fairly narrow provision. They are basically looking at rural areas where banks are holding the loans in their portfolio.

…continuing concerns with what has been a pendulum swinging back to regulatory relief and loosening risk-management requirements. This is part of that wave.

Read more here:
My comment: good analysis by Bill Garber of the Appraisal Institute. Worth reading.

13 of the Craziest/Coolest Public Bathrooms

Just For Fun!!

Excerpt: We know, there is a lot to hate about public restrooms, but we’ve found they can actually be a very unexpected but very potent source of inspiration. We’ve never seen tile layouts like the ones in public facilities-and that’s why we like them. Overlapping squares with zigzag edges? A woven look with a whopping five different colors and two different tile sizes?

My comment: Wow! Vibrant colors and tiles….

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5-3-18 Newz//Federal Enforcement of USPAP?, Public Restroom App, Unusual Houses & Buildings

How Lenders and Appraisers Can Work Better Together Through Increased Transparency

By Wes Costello
Excerpts: The relationship between lenders and appraisers has never been quite right. The association was scared by improprieties of the few that led to a fallout of the many, with each party retreating behind walls of mistrust and perceived regulatory requirement. Recently, communication is civil but has been described as resembling two parties of a legal arrangement who speak to each other on an as-needed basis….

Anyone who has directed appraisal management knows that they are only as good as the appraisers they partner with. This makes it vital to value each member of your appraisal panel as an integral partner in your company’s business.

My comment: Well written and worth reading, plus the comments, of course. The author is a Senior Vice President of Quality Management & Collateral Risk at AnnieMac Home Mortgage… He is a Pennsylvania Certified Real Estate Appraiser.

Public Restroom App by Charmin: Find Clean Bathrooms!

Excerpt: A clean nearby public bathroom can be hard to find. But not all restrooms are created equal.

With SitOrSquat we put clean public toilets on the map. Literally. Clean locations have a green “Sit” rating. Less desirable ones have a red “Squat.”

So, the next time nature calls and you need to find a nearby restroom, SitORSquat will help you know where to go.

My comment: Thanks to appraiser Jerry Walsh for this great tip. He has used it for years. I am downloading it today!! I coulda used this 40 years ago when I started appraising in rural areas….. Better than The Bushes or Behind A Tree ;>

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2 GREAT ways to get into appraisal trouble. Tales From Barry Bates

If you really WANT to get in trouble here are 2 ways to do it, (eventually) guaranteed to succeed

Advertise your uniqueness!
More important than earning a living, providing support for your family or
serving the general public is to let the world know who you really are!
When meeting a homeowner or commercial building owner for the first time,
take a few minutes to explain your facial tattoos, your exotic mode of medieval
dress and your political positions as shown by the 188 bumper stickers on your car. Some straights are freaked out by creativity, so it’s worth taking the time to
calm them down.

When I was Chief Appraiser for The Money Store, I got a call from a
prospective borrower in one of the northern rural counties of California. I had just
added another appraiser to the panel in an effort to improve coverage. The borrower reported that although the appraiser was pleasant of demeanor and appeared to be knowledgeable, there was no question that she was living in her car.

When I called her, I had to cite that stuff in USPAP that talks about inspiring trust of appraisers among members of the public, and told her to reapply to the panel when she would be able to present a more conventional appearance. I didn’t hear from her afterwards, but, sure enough, she was a duly certified California appraiser.

Pump that value!
It’s a “win win” for everyone! I mean, you’d think so, right? What refi borrower
complains about a high appraisal? The lender sure won’t complain. Even in
appraising for a loan to purchase, it will flatter the owner and facilitate the
borrower’s deal, right?

Actually, wrongamundo, Buckwheat. By far, the most frequent complaint I
saw while at BREA (California Bureau of Real Estate Appraisers) was inflation of value, tendered by the lender, the buyer, the seller, etc.

I recall one respondent, who appraised exclusively for VA lenders, assuring
me that he considered it his duty to make sure that if the veteran really wanted the property and his valuation could make it happen, he would find legitimate
comparable sales to support that sale price.

What was unclear was his understanding of the word “legitimate”. I guess it’s tough when another couple of grand is added to the price just for the VA guarantee, but doable, certainly, for someone with such a holy mandate.

As an 11-year Army veteran myself, I let him know that I appreciated his
devotion to cause, but I had to tell him that he was a crook. And that he should
reexamine his assumption of duty during his license suspension, during which he
had to find 25 hours of courses on ethics.

Editor’s notes: this is a very brief excerpt from Barry’s article in the December 2017 issue of the paid Appraisal Today newsletter. Click the graphic below for more info on the newsletter. Barry has had a wide variety of appraisal jobs over the past 40+ years, including a state regulator investigator. He is now retired from appraising but still giving his opinions!! Contact him at barrettbates@gmail.com

10-12-17 Newz//FHA-Appraisers responsible for water quality reporting?, Hybrid appraisal survey

New CU 4.2 makes it easier for lenders to change comp and subject data. MI companies can access CU

Excerpts: During the weekend of Dec. 9, we will implement Collateral Underwriter® (CU™) 4.2, (which includes) the ability to edit the subject and appraiser-provided comparable sales property characteristics. CU 4.2 will also provide mortgage insurers (MIs) with access to CU. Lenders will be able to give their MI risk partners access to appraisal-specific data by providing them the Doc File ID generated at the time of appraisal submission.

Comparable Sales Review Edit Feature
The ability to edit subject and appraiser-provided comparable sales property characteristics (currently available via the pencil icon in classic CU) will be added to the Comp Review page. Clicking on the pencil icon in the Edit column of the comparable sales review table will open the Edit Property Characteristic pop-up. If there are data errors or missing data elements, the edit feature can be used to modify the data elements and rerun the model with the revised data.
Click here to read the full release
My comment: Lenders have been able to change subject and comp data and now it will be easier? I didn’t know that they are able to change the data now. MI companies have access to CU? What about appraisers?

Read more!!

9-28-17 Newz//Fees up or down?, Credit easing, San Francisco Castle

Albion Castle – A 140 year old castle with underground caves hidden in San Francisco.

Just For Fun!!

Excerpt: When Bill Gilbert was growing up near Candlestick Park, all the kids said that Albion Castle was haunted. Gilbert himself wasn’t sure, but every time his parents took him to eat at the at the old Dago Mary’s restaurant across the street, he would look at the gates that front the 145-year-old stone structure and wonder. Little did he know that as an adult, he would own the keys to the castle (literally).
My comment: It was listed in 2009 for $2,950,000 (a very bad market). The six-story square tower has four bedrooms, two bathrooms and 1,436 sq.ft. It sold for 11/2011 for $890,000 and has been rehabbed. It needed a lot of work!!
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Info on the history and historic photos

My comment: It was listed in 2009 for $2,950,000 (a very bad market). The six-story square tower has four bedrooms, two bathrooms and 1,436 sq.ft. It sold for 11/2011 for $890,000 and has been rehabbed. It needed a lot of work!!

Read more!!

8-3-17 Newz// Forest Guitar, Wells Fargo-no AMCs, Creepy Scope

Forest Guitar made of trees, dedicated to a man’s lost love.

Excerpt: Breaking up the flat agricultural areas of Argentina’s Pampas is a guitar formed entirely out of trees. Stretching for 2/3 of a mile, the multi-colored instrument was created by one Argentine farmer to memorialize his wife who tragically died at the age of 25.
My comment: Just for Fun ;> Fascinating photo and brief writeup.

Scope Creep Causes Creepy Scope

By George Dell, MAI, SRA

Excerpt: …scope creep has turned into scope running. I’m sure many appraisers, particularly residential people will agree. He (David Braun) points out that as the reviewers ask for more, appraisers are finding ways to not be specific. This has turned into a self-perpetuating loop:  “As the providers, users, and enforcement bodies have differing opinions on the proper level of the scope required . . .”

My comment: Interesting blog post. Short. Worth reading.

Read more!!

7-20-17 Newz// Fannie data, USPS gyrocopters, Costar data

When the U.S. Postal Service Used Gyrocopters to Deliver the Mail The flying machines hopped from roof to roof of post offices.

Excerpt: Sensing opportunity, the United States Postal Service-then the U.S. Post Office Department-decided to invest in the new technology. In 1937, Congress appropriated money to fund a series of experiments on autogyro mail delivery, and within a year the first flight-from Bethesda, Maryland to Washington, D.C.-was made.

My comment: Check out the photos (no videos in 1937). Very interesting!!

Why Fannie Mae Shouldn’t Keep Data Secret

Excerpt: Today’s lenders have access to massive amounts of data. According to (Richard) Hagar, government lenders have access to every recorded sale in most every county across the U.S. via information providers like CoreLogic. He believes appraisal adjustments should be cross-checked against sales metrics of the five million home sales that occur each year.
However, appraisers typically use Multiple Listing Service (MLS) for residential appraising. Data provided by MLS may vary from information shown by providers like CoreLogic. MLS has more detailed information that county records don’t contain. Oftentimes, though, MLS contains errors or missing data. In other words, both types of systems have errors, but not necessarily the same errors.
My comment: Controversial topic!! Fannie says that they want appraisers to be objective, not using Fannie’s data. For example, appraisers changing their building sketches to match public records sq.ft. to avoid underwriter/review hassles. I remember CMDC books (in california) back in the 1980s where appraisers submitted the first pages of their appraisals to go into a shared appraiser database. Before appraisers could get MLS access. Seems like that was okay…

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7-13-17 Newz// FTC vs. NC Fees, Zillow misestimates,Turbo-Charged Appraiser

FTC targets North Carolina Fee Survey

North Carolina currently considering establishing set fees for appraisals
 
Excerpt: According to the FTC, North Carolina’s proposed legislation carries many of the same issues as the laws in Louisiana.
In its comment, the FTC states that the bill’s method for establishing appraisal fees “is not mandated by – and, in fact, may be inconsistent with – federal law.”
The FTC also suggests that the bill “may have the effect of displacing competition for the setting of appraisal fees and ultimately harming consumers in the form of higher prices.”
More info here, including text of the bill, etc. and where to file a complaint.
Louisiana’s reply to previous FTC hassles here:
My comment:I have no idea why the FTC is going after states setting AMC fees. Seems like there are a lot of much bigger problems…

The Next Job Humans Lose to Robots: Real Estate Appraiser

Advances in big data at Zillow and elsewhere are helping automation creep into knowledge-based professions.

 

Excerpt: Twenty-five years ago, Brian Weaver was told at a seminar that the real estate appraisal profession would be killed off by technology in five years. It didn’t happen. But he now thinks the forecast wasn’t exactly wrong-just early.

https://www.bloomberg.com/news/articles/2017-07-11/the-next-job-humans-lose-to-robots-real-estate-appraiser 

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The Turbo Charged Appraiser – “Progress Slow on Robot Takeover” – A Blast From the Past by George Dell

Except: This is the headline from an article in the San Diego Union Tribune this morning.  The article went on to say, “Data complexities, trust issues, and the persistent need for human input restrain scaled-up automation.”
As a brand-new appraiser trainee, I was in awe of the office and the people.  And in particular, the backroom.  The backroom was the library and data room.  As large as some small homes.  It contained data.  Lots of data…
Read more at:
My comment: I love these two very different topics!! One is maybe the future and the other looks at data way back in the past from George Dell, stats and data guru!!

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