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

By on August 25, 2016   /   adjustments, appraisal classes, Appraisal fees, Collateral Underwriter, Fannie, forecast, Mortgage applications, mortgage loan volume, weird homes, weird properties   /   Leave a comment
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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

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8-4-16 Newz// Data verification, AMCs-percent of work, Drones

By on August 4, 2016   /   Appraisal Standards Board, forecast, lender appraisals, Mortgage applications, mortgage loan volume, unusual home, unusual homes, USPAP, weird homes   /   Leave a comment
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Collection and Verification of Residential Data in the Sales Comparison Approach

Appraisal Practices Board, Issued June 30, 2016, First Exposure Draft

Deadline for comments is August 12, 2016

The document includes examples for lender and non-lender work plus references to lender requirements. Extensive discussions on scope of work for different types of assignments, such as relocation, individuals, effect of zoning, estates, etc. as well as verification sources, etc. etc.

Excerpt:

Example 2 – Client: Conventional Lender Effective Date: January 20, 2015

After the four siblings receive a market value range of $139,000 to $155,000 from the appraiser, they compare this range to a $140,000 cash offer they received from a buyer who was willing to close in one week. The siblings accepted the offer because they were motivated to sell. This new buyer purchases the residence on January 15, 2015, for $140,000 cash and then decides to finance the residence with a conventional loan. In this instance, the client is the lender.

For this assignment, the lender has specific requirements regarding what data points to verify and with whom the appraiser should verity those data points. The lender also has guidelines such as the minimal number of comparable sales the appraisal will report, and a time frame within which those comparables sold. The appraiser accepted the lender’s specific requirements and produced credible assignment results within these parameters. The final opinion of market value was $150,000, with an estimated exposure time of six months.

Every client and assignment condition will have different requirements for how much sales data is collected and how that data is verified. This can include using different sources, using different levels of verification, and concentrating on the verification of different data points. The overall goal for verification is to verify data to a level that is necessary for credible assignment results, not to necessarily verify all data and certainly not to verify all data to the same level. Different levels of verification are acceptable based on assignment conditions, availability of data, and the relevance of each data point.

https://appraisalfoundation.sharefile.com/share?cmd=d&id=s58e5be211d044a79#/view/s58e5be211d044a79

My comment: Finally the APB has something useful and practical for residential appraisers!! Be sure to read and comment on this 52-page draft. Worthwhile reading. Very comprehensive on this important topic. Discusses lender issues, including CU. I have not read the entire document but plan on reading it very soon.

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How Dirt Houses Became Beloved By The Tiny House Movement

Meet the wondrous cob.

Excerpts: It’s likely that earthen homes were among the oldest structures ever built by humanity. There are a few different techniques and many names for a building made mostly of, well, dirt, but the one that’s caught on in this recent revival of the material comes from England: Cob.

See the photo of: Ancient cob high-rise buildings in Shibam, Yemen.

Very interesting and detailed with photos:

http://www.atlasobscura.com/articles/how-dirt-houses-became-beloved-by-the-tiny-house-movement

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

By on July 21, 2016   /   adjustments, AMCs, appraisal business, appraisal management company, Mortgage applications, mortgage loan volume, USPAP, weird properties   /   1 Comment
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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?

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Bracketing and USPAP

By on July 21, 2016   /   adjustments, lender appraisals, USPAP   /   16 Comments
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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?
USPAP is silent on bracketing. For that matter, so is Illinois law. Here’s what Fannie Mae says;
“When there are no truly comparable sales for a particular property because of the uniqueness of the property or other conditions, the appraiser must select sales that represent the best indicators of value for the subject property and make adjustments to reflect the actions of typical purchasers in that market.”
Not a word about bracketing.
While comforting for an underwriter to see the collateral fall snugly into place, bracketing is still a guideline. This hasn’t stopped AMCs and lenders from complaining to the Board about missed brackets or huge ranges. There just isn’t a law against having a sloppy bracket, nor should there be.
Something else from Fannie Mae;
“It should be noted that the indicated value in the Sales Comparison Approach must be within the range of the adjusted sales price of the comparables that are reported in the appraisal report form.”
Read here for the full article:

Check out the other very interesting articles such as AMC fair housing Myths and Evaluations. Link to the original newsletter.

My comment: I have never “bracketed” anything except the value when I used to do appraisals for Fannie Mae loans. I have no idea why lenders are requiring bracketing for everything with an adjustment. Just another Stupid Scope Creep I guess. Works ok in conforming tracts with lots of sales and minimal adjustments, but goes downhill quickly after that. Of course, the entire appraisal review-by-computer assumes that all houses are in conforming tracts. As do the Fannie forms, of course.
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6-9-16 Newz:: Expandable Space Station, Turn times, FHA news  

By on June 9, 2016   /   AMCs, appraisers, FHA, forecast, future, lender appraisals, Mortgage applications, mortgage loan volume, state appraiser regulators, Strange homes, unusual home   /   Leave a comment
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Time-lapse video of the International Space Station expandable habitat

Excerpt: On Saturday, May 14, NASA successfully completed the deployment of the first expandable habitat on the International Space Station. With help from the ground, NASA astronaut Jeff Williams began inflating the Bigelow Expandable Activity Module (BEAM) at 9:04AM ET.

He opened the valve 25 times to inject air into the module in short bursts, according to NASA. Time in between allowed the BEAM to expand and stabilize, as the NASA and Bigelow Aerospace teams monitored the module’s internal pressure. The BEAM was expanded to its full size seven hours later, at 4:10PM ET.

http://www.theverge.com/2016/5/30/11812844/this-time-lapse-video-of-the-beam-inflating-on-the-international-space-station-is-awesome

My comment: WoW!!!

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United States Spy Town Auction

It’s not the first time that an entire American town has gone on the auction block, but it might be the most unusual. Sugar Grove Station, West Virginia was originally a United States Navy military base to support part of the National Security Agency’s surveillance operation. Though the array of giant parabolic dishes that continue to track location and content of international telecommunications activity is still in operation and not part of the sale, they are completely obscured from view behind thick forest on their ridgetop one mile distant. When it became unnecessary to house related analytical staff at the base, it was retired in the fall of 2015 and put up for auction to the highest bidder over $1 million.

Built between 1960 and 2014, the fenced and gated rural town has private full-service utilities to support as many as 500 people on over 120 acres. Included are 80 homes on tree-lined residential streets in like-new condition, a swimming pool, bowling alley, youth daycare center, community center with fireplace which was designed to function as a restaurant with bar, a gym, full-sized indoor basketball court, tennis and racquetball courts, a football field, large playground with kiddie pool, and twelve guest cabins for visitors. There are also several large buildings for multiple use as well as a four-section hobby building for working on cars, woodworking shop and other creative pursuits. For community safety, a police station and fire station are already in place.

https://www.toptenrealestatedeals.com/homes/weekly-ten-best-home-deals/2016/06-06-2016/1/ 

https://en.wikipedia.org/wiki/Sugar_Grove_Station

Read more!! →

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4-21-16 Newz .Levitating houses .Murders in house .Unhappy appraisers

By on April 21, 2016   /   AMCs, appraisal business, Appraisal fees, Appraisal Foundation, appraisal management company, appraisers, Fannie, FHA, forecast, lender appraisals, Mortgage applications, mortgage loan volume, Podcasts, Strange homes, unusual homes, USPAP, weird homes   /   Leave a comment
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Levitating houses?

Excerpts:

… One architect’s proposed solution for low-lying cities that have trouble with flooding. Inspired by amphibious houses, Lira Luis’ concept asks: what if buildings could avoid flooding simply by not touching the ground at all?

As sea levels rise, some low-lying cities have started experimenting with floating buildings and amphibious houses. But one architect has another unlikely sounding suggestion: What if buildings could avoid flooding simply by not touching the ground at all?

Architect Lira Luis thought of the concept as she was working on another installation that happened to be on water and required invisible, easily removable attachments. She started using magnets for the attachments, and when she accidentally held the magnets the wrong way, she noticed that they repelled each other even through a layer of water.

Click here to read. A bit “techie” but fascinating.

http://www.fastcoexist.com/3058400/this-architect-is-trying-to-build-houses-that-can-levitate

Thanks to Matt Cook for posting this Most Interesting Link!!

My comment: This is very relevant for predicted increases in sea levels. I live in a low-lying coastal city in San Francisco Bay. Recently, part of the city’s flood maps were revised to 100 year flood levels, requiring flood insurance if you have a federally insured loan. As usual, all the complaints from owners were about having to buy flood insurance. My house is about 5-6 feet above typical high tide now. When there are very high “King” tides (high tide plus heavy rains), it is closer to high tides. Flood maps for all coastal areas in the country are being revised.

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

By on April 7, 2016   /   adjustments, AMCs, appraisal, appraisal business, Appraisal fees, appraisal management company, data, forecast, future, Mortgage applications, mortgage loan volume, Podcasts, rental market, Strange homes, Uncategorized, unusual home, unusual homes, USPAP, weird homes   /   Leave a comment
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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

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

By on March 3, 2016   /   AMCs, appraisal, appraisal business, Appraisal fees, appraisal management company, Fannie, fees, lender appraisals, Mortgage applications, mortgage loan volume, state appraiser regulators, Strange homes, unusual home, weird homes   /   Leave a comment
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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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USPAP Nazi

By on July 8, 2015   /   lender appraisals, USPAP   /   Leave a comment
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I was interviewed on the Appraiser Coach/Dustin Harris Podcast, published July 3.

The topics were: Trainees inspecting, C&R fees, and Celebrity homes.

We  debated on a Facebook discussion of whether or not an appraiser can disclose the owner’s name when appraising celebrity homes. Unfortunately, I did not read the Facebook discussion since it seemed sorta lame (big mistake) and it was removed. The issue is USPAP confidentiality requirements. Dustin said you could not reveal the name and address and I said it was ok and referenced an appraiser’s web page that had the names of all the celebrities whose homes he had appraised in Southern CA.

While discussing it, I mentioned one of my favorite terms, “USPAP Nazi”. I’m sure you know what I mean. USPAP is very gray but some appraisers have very strict interpretations that they make. Do something they don’t agree with and lose your license and/or Go To Jail. No big deal, except when they are teaching USPAP classes and you disagree. But, Very, Very important when they are on state boards.

I taught USPAP for many years, until the Appraisal Foundation mandated what materials and topics had to be used. I loved teaching USPAP and related it to practical, day to day, issues that appraisers have. Not “Do what USPAP says (how I interpret it) or you will lose your license and/or go to jail!

I am sooo glad we have never had a state board in California!! When licensing started, Governor Schwarteneger did not want any additional expenses, including state appraisal boards. Licensed appraisers, that are employees of the state of California, are used for investigations in California. Appraising can be a very small world, particularly in smaller states. Who wants a competitor or personality conflicts affecting decisions on your appraisal license?

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Where to listen to the Podcast #27 – Trainees inspecting, C&R fees, Celebrity Homes with Ann O’Rourke

– Android – http://www.stitcher.com/podcast/the-appraiser-coach
– iTunes – Subscribe to the podcast so you don’t miss any! I am a subscriber.
https://itunes.apple.com/us/podcast/the-appraiser-coach-podcast/id966765322
– Website – http://theappraisercoach.libsyn.com/

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Voluntary Appraiser Disciplinary Action Matrix Based on 2014-15 edition of USPAP

By on December 10, 2013   /   appraisal, Appraisal Foundation, appraisers, USPAP   /   Leave a comment
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A very interesting document provided by the Appraisal Foundation to state boards. Not mandatory, just information for them. State boards vary dramatically in how they handle discipline. Fortunately, I am in California, which has never had a state board (Governor of CA at that time did not want to increase any expenses, including advisory boards). Investigators are all state employees.

3 examples:

An appraiser states in his certification on an appraisal that he inspected the interior and exterior of the subject property, when in fact he only drove by the property.
As a result, he stated that the subject property was in average condition when it was actually in poor condition and essentially uninhabitable. He did not use any extraordinary assumptions or hypothetical conditions in the assignment. He knew that the lender required an interior inspection.

An appraiser accepted an appraisal assignment in an area where he is not geographically competent, failed to notify the client that he was not geographically competent and failed to take the necessary steps to become competent. As a result, he produced an appraisal that was not supported by market data.

In the sales comparison approach, an appraiser simply adds the adjusted value of the three comparable sales used and divides by three for an indicated value, even though some sales were far better indicators of value than others.

Note: These are the simple examples. There are more commercial appraisal examples and more complicated residential examples.

Click here to download from the Oklahoma state regulator web site.

My comment: Well worth reading. What does your state board do?

Thanks to Long Time Reader and author Doug Smith in Montana for this great link!!

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