Author: Dave Towne

CONSUMER involvement with refi property value estimate ~copyright AppraisersBlogs.com 8

Consumer Involvement with Property Value

“Help” the consumer determine a value Appraisers, There is a little known provision in the new TRID mortgage loan application process that may become a future issue for appraisers, especially when the loan is for a Refinance. This is what the Loan Estimate, provided by the lender, requires the CONSUMER to do: You (the lender) must provide a Loan Estimate to the consumer, either by delivering by hand or placing in the mail, no later than three business days of the receipt of an application. An application is considered received when the consumer provides the following information: Consumer’s name, Consumer’s...

Incorrect 1004MC Form Trend Reporting 22

Incorrect 1004MC Form Trend Reporting

Appraisers, I have ‘come in contact with’ an appraisal report, produced by a Certified appraiser and its Licensed Trainee – working in the area near my office. It’s clear to me that these two appraisers do not understand trend reporting that this form indicates. By the way, I’m no great fan of the MC form. However, since we are required to use it, we better darn well learn to use it properly. Report what the trends on it show and not something obtained from elsewhere, sometimes called “PFA.” If we don’t, or choose to ignore what the form shows, then the ENTIRE...

Executive Summary in Appraisal Reports 11

Executive Summary in Appraisal Reports

Executive Summary Appraisers, I spent two days last week at the Appraisal Summit and Expo in Las Vegas – which was extremely well planned and presented – co-sponsored by the Columbia Institute and the National Association of Appraisers. Over those two days, in just about every topic presentation seminar, we appraisers were cajoled and implored to improve info we provide in reports to back up our stated value.  We were told that most reports reviewed by lenders are deficient in this aspect.  I admit that my reports need improvement in that kind of presentation – although over the years many...

MC Form and Incorrect Reporting of DATA 3

MC Form & Incorrect Reporting of DATA

Appraisers, Wednesday last week (11/18/15) WorkingRE published, via their e-Newsletter, an article I submitted to them as an ‘exclusive.’  I was in a jet to Las Vegas to attend the Appraisal Summit & Expo that day.  In case you did not see the article, I’m letting you know about it here. You can access the WorkingRE version of the article here. I want to thank those appraisers who left comments on the WorkingRE site, included below the article, and to those appraisers who wrote me directly. Getting feedback is critical, and appreciated. And kudos to Isaac Peck, Editor and David Brauner, Publisher,...

Valuing the Contribution of Solar Panels 11

Valuing the Contribution of Solar Panels

How to value the appraised property with solar panels Appraisers, Valuing the contribution of solar panels on homes has become one of the trickiest aspects of our work over the past decade. Attached is a very well written 45 page report that will help all appraisers better understand this issue, and perhaps lead you in the right direction when you encounter homes with solar panels. I strongly recommend that you print a copy for your library. Oh, and actually read it! The basis of the report is how to value the appraised property with solar panels, when no comps have...

VA & UAD compliance 4

FHA Appraisal Report & Prior Sales

FHA appraisers, When the new 4000.1 Handbook and associated Data Delivery Guide were released not long ago, astute readers noticed that FHA showed that they wanted the Comparable’s prior transactions to be reported back in time THREE YEARS, not just 1 year as per the form. Well, guess what? That apparently was an error, because the REVISED Data Delivery Guide, Effective Nov. 5, 2015, has that corrected back to ONE YEAR, which ‘sort of’ corresponds with the info on the GSE forms. Eagle eye readers will note there may still be an error with this! The form says …the year prior to...

Adjustment Values, Frequency & Dollar Amount 17

Adjustment Values, Frequency & Dollar Amount

Ever wondered what other appraisers are doing with adjustment values? Appraisers, Have you ever wondered what other appraisers are doing with adjustments in their reports? CoreLogic has done research over the past 3 years, using 1.3 MILLION+ reports, and has produced the graph attached here.  You may want to print this for reference. This graph shows the percentage of time a certain feature is adjusted, and the average dollar amount of the adjustment for each of those. It’s rather interesting. The highest amount of adjustment, approximately $14,000, is for the Quality Rating. Not really surprising as to the amount, but the percentage...

FHA 4000.1 HUD Handbook FAQ - Q&A - Imagecredit Flickr - opensource.com 8

FHA 4000.1 Handbook FAQ

FAQ PDF Document In June 2015, the Denver HOC conducted a webinar (or perhaps live class) training on the ‘then upcoming’ new FHA 4000.1 Handbook. Questions were submitted, and the answers were compiled into a FAQ PDF document (posted at the end of this article). Many of the questions were submitted by underwriters or other non-appraisers, but some were from appraisers. You will have to read through the 8.5 page FAQ PDF attachment to find appraisal related info. However, the one question and answer below may help alleviate the fears of some appraisers: Q. Does the appraiser have to note...

USDA FHA Confusion Getting it Right - Imagecredit Flickr - Brad Montgomery 4

USDA FHA Let’s Get it Right

USDA has it right! FHA appraisers, Thanks to TJ McCarthy, a Chicago based appraiser and current web master for the Illinois state appraiser association ICAP, for providing this interesting bit of news. What this document says is that USDA expects the Home PURCHASER (the loan applicant) to obtain a “whole house inspection” in advance of submitting their loan application. This will be effective Oct. 1, 2015. Inspection can be paid by the seller. This ‘whole house inspection’ is NOT DONE BY AN APPRAISER. It is to be done by someone licensed or certified as a home inspector, who then provides a written report...

FHA Appraisers - Important Reporting Items 27

FHA Appraisers – Important Reporting Items

Important FHA Reporting Items FHA Appraisers, The new HUD/FHA 4000.1 manual, in reality a very large BOOK, is said (by FHA) to have everything in it we need to know, and comply with when doing FHA appraisal reports. We’ve all been amped up about the FHA 4000.1 Handbook changes.  It DOES NOT have everything you need to comply with. FHA has a second BOOK – The Single Family Housing Appraisal Report and Delivery Guide. On page 117, it details how FHA wants prior sales reported for the subject and for COMPARABLES. It is a change to their current procedure –...

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