Author: Dave Towne

TRID Impact on Appraisal Fees 7

TRID Impact on Appraisal Fees

Appraisers, The Consumer Finance Protection Bureau (CFPB) has mandated new residential mortgage application and disclosure procedures, which take effect Oct. 3, 2015. Here’s a link to a brief article about this. When a consumer applies to a mortgage lender, the lender requests certain information from the consumer before the clock starts ticking in terms of ‘timing requirements’ on the consumer’s application. When the application is considered “complete”, the lender has 3 business days to provide the consumer with the Loan Estimate document. What’s of concern among lenders and appraisers is the speculated inability to change appraisal fees, which is disclosed...

Enhancements to Collateral Underwriter (CU) Are Coming - Imagecredit Flickr - Alan Levine 4

CU “Enhancements” Are Coming

CU risk score, flags and messages Appraisers, In about 6 weeks, Fannie Mae will make available to LENDERS only, and probably by default indirectly, to their AMC agents, enhancements or improvements (in their opinion) to the Collateral Underwriter electronic review process. None of the Collateral Underwriter background info,  especially about Fannie Mae’s ‘additional comps’ selection process, is shared directly with appraisers.  But when these are returned to appraisers in the form of a Quality Assurance request from the lender or AMC, appraisers are expected to drop everything and immediately review those for applicability in the appraisal report. Pay attention to the...

Report an Opinion of Value as a RANGE - Yes or No - Imagecredit Flick - brandbook.de 3

Report an Opinion of Value as a RANGE – Yes or No?

Can appraisers report an opinion of value as a range? Can that be done? The answer is both YES and NO, or as some like to say, “It Depends!” Here’s an interesting example of YES, involving two commercial properties in Miami Beach (yeah, I know, resi’s, but hang with me here!): Appraisals: Town-owned lots in West Palm Beach worth millions You will notice in the article that the value reported in the appraisals is stated as a RANGE by the appraisers. That is entirely acceptable when appraisals are done under the guidance of USPAP Standard 2. It makes sense to do it...

Calling on Licensed & Certified Residential Appraisers - Be the Change - Imagecredit Flickr - Simon Greening 0

Calling on Residential Appraisers

Calling on Licensed & Certified Residential Appraisers Appraisers, The Appraisal Foundation seeks candidates for its Boards. We need a diversity of ‘license types’ to serve on these Boards. Your service time and travel expenses are covered. I just completed an analysis for the current members on the Appraiser Qualifications Board. Individually, they are all nice and very qualified people, but they are ALL Certified General appraisers. In the US there are fewer CG’s than there are License or Certified Residential appraisers. The composition of the AQB has been largely dominated by CG’s for years. These are the folks who have mandated...

The "Property Prices Reach All Time High" Hype - Imagecredit Flickr - FaceMePLS 2

The “Property Prices Reach All Time High” Hype

“Property Prices Reach an All-Time High” Oh really? The subject line is a press release headline put out by a national sales organization. Do you buy into the hype, or do you actually do local comparable property market research to verify trends? I just completed an appraisal on a property I appraised 2 years ago. I did a 5 year market study on comparables then, and found the market for that type of property had been DECLINING at that time. I did another 5 year market study on this same property this time around. And guess what? The property values for this type...

AQB Changing Course on Appraiser Qualifications? 60

AQB Changing Course on Appraiser Qualifications?

Is AQB Potentially Changing Course on Appraiser Qualifications? Appraisers & others, The Appraisal Qualifications Board (AQB) is one of the voluntary Boards under The Appraisal Foundation. Their role is to analyze, debate, review, and decide the minimum qualifications necessary for a person to become an appraiser. While all who currently or in the past have served on this Board, are individually good and experienced people, collectively by Board action they have nearly caused residential appraising to grind to a halt due to their highly restrictive policy decisions. Yes, this a strong statement, and ‘halting’ won’t happen until the majority of current...

Do you laser - laser distance measuring tool 3

Do You Laser? Watching the Red Dot

Laser Measuring Tool One of the fastest and reliable ways to measure properties is with a laser distance measurer.  These devices are accurate to 1/8th inch over long distances, not that we ever need that preciseness. I started in this business like most other appraisers using a 100′ tape and a 25-30′ tape. I still carry those in my ‘tool pouch’ when measuring, but a majority of the time I use my laser. There are times when I find the tapes better for a particular situation. There are several manufacturers of laser distance measurers, with probably the best known having...

What is Gross Living Area and What Does it Include 6

What is Gross Living Area (GLA)?

What is Gross Living Area and What Does it Include? Appraisers, There are certain properties where aspects of Gross Living Area (GLA) might not be obvious. It’s more confusing when the selling real estate agents lump all “living space” together, because that’s what they are selling, or when the county assessor includes basements with upper level areas. These include homes with a detached ADU, additional rec room or sleeping space above a garage, additional living space with roof attached to the primary dwelling via covered breezeway, basement living spaces with separate entry, etc. Fannie Mae has a giant book called...

AMC Regulation Rule Finally Published in the Federal Register - Imagecredit Flickr - Steven Lilley 1

Federal Register: AMC Final Rule

AMC Regulation Rule Finally Published in the Federal Register Appraisers and others, On June 9, 2015, the Federal Register published the new AMC Registration and Regulation Final Rule: The OCC, Board, FDIC, NCUA, Bureau, and FHFA (collectively, the Agencies) are adopting a final rule to implement the minimum requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) to be applied by participating States in the registration and supervision of appraisal management companies (AMCs). Thanks to Bill Garber, Appraisal Institute Director of Governmental Affairs, for sending me this info today. I first wrote & sent info...

Truth-in-Lending Act - RESPA Ingetraged Disclosure - TRID Coming Soon Imagecredit Flickr - Dennis Skley 1

TRID Coming Soon Your Way

Appraisers and others, TRID is coming to mortgage lending on Aug. 1, 2015. In case you have not been paying attention to new aspects surrounding your typical measuring buildings and writing reports on a daily basis, TRID is set to become a major change in the mortgage lending process. TRID is the acronym for the ‘Truth-in-Lending Act/RESPA Integrated Disclosure’ process that applies to every mortgage loan as of 8/01/15.  It was part of the Dodd-Frank Law, with power given to the CFPB agency to devise the rules, forms and process. The intent is to consolidate and simplify processes that have...

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