Category: Snippets

Snippets of recommended and/or thought-provoking articles, columns, podcasts, etc. broadcasted by Real Estate Appraisers from around the web

COVID-19 Disclaimers in Appraisal Reports - Appraisers Blogs 12

COVID-19 Disclaimers in Appraisal Reports

Let’s focus on the big rocks, not the small rocks in this time of crisis I shared my firm’s disclaimer for the Coronavirus to a group of appraiser colleagues of mine: Extraordinary Assumption – COVID-19 was identified in China in December 2019 and quickly spread across the globe, including the U.S., evolving into a pandemic. As a result, the Federal Reserve cut the federal funds rate on March 3, 2020, by 0.5%, making the threat of the virus tangible to most housing market consumers. The Fed cut the federal funds rate by another 1% on March 15, 2020, to offset...

USPAP Misleading Definition Inviting Problems, Not Protecting Public Trust 11

New “Misleading” Definition Inviting Problems

I perused the latest copy of USPAP and saw a new definition on the list: Misleading. While I appreciate the attempt by TAF to create clarity and their hard work, and appraisers need standards to operate by and USPAP should be that standard, the addition of this word to the list is symbolic of over-regulation. “Misleading” as a word is a qualitative term and the courts will determine whether something is “intentional” or “unintentional.” In Webster’s dictionary, the word “mislead” already has a negative connotation. “to lead in a wrong direction or into a mistaken action or belief often by...

Crack in the Foundation? Deep Dive Into the Appraisal Regulatory System 1

Crack in the Foundation?

Phil Crawford with Voice of Appraisal has a great new podcast! Phil interviews author Jeremy Bagott about his eye-opening book titled “Dispatches from the Cosmic Cobra Breeding Farm!” The book breaks down The Appraisal Foundation and provides a rare “behind the scenes” glimpse into the world of appraisal regulation! The author did his homework and takes a deep dive into the appraisal regulatory system structure. The book outlines the shape of “Incorporation by Reference” into regulation and how it disproportionately harms small businesses. The Appraisal Foundation held the “Golden Ticket” for the past 30 years… Who will be next? Enjoy...

Some Cobras Might Want To Look In The Mirror 6

Cobra’s Favorite Target is TAF Dave Bunton

In 2016 I began to wage a battle with the Appraisal Institute to bring to light how they were working against the residential appraisers’ interests by going to state legislatures (largely, Scott DeBiasio). What triggered my outrage was their attempt to take control over the local finances of each chapter and I’m not even a member. Their lack of residential representation continues today but the difference is, the appraisal industry’s deeper understanding of AI’s past behavior, linkage with AMCs including past senior officers who run them and lack of effectiveness in moving residential forward. One of my thought processes during...

You Should Be Insulted if That’s All You Think You’re Worth 17

You Should Be Insulted…

A good friend and appraiser colleague of mine in the midwest sent me this appraisal order request from Better Mortgage in New York [redacted]: My friend and I and most of my peers marvel at order requests like this. They are paying half the market rate to the actual person analyzing the asset to be used as collateral for the mortgage, but most importantly that seems to enable them to provide free lunches and snacks to their employees who process the loans. See the review in Glassdoor. Companies like this can often find a few appraisers willing to work for...

Number of CA Appraisers Drop 50% & Renewal Fees Up 76% 38

CA Appraisers 50% Decline & Fees Up 76%

The Number of CA appraisers drops from 20,120 to 9,987. Renewal fees up 76% for 2020. Excerpt: It’s time to assess and reflect on the numbers as the decade ends. It’s noteworthy that the total population of Bureau of Real Estate Appraisers (BREA) licensees has now fallen below 10,000 for the first time since the Bureau began keeping records. The numbers reflect some interesting trends. Licensee population counts vary daily as licenses are granted and others expire, so this data is a recent snapshot in time. Also, approximately 7% of licensees are trainees, 8% report out-of-state addresses, and some percent...

Sign of GSE Compression Into One Entity 15

GSE Compression Into One Entity

Here’s one little thought before you sip that New Year’s champagne… Because we appraisers sweat the details to provide credible valuations, we might miss the macro right in front of us. A few months ago I suggested that the current pilot programs for wide-scale bifurcation assignments were “dead man walking” per suggestions and insider tips related to actions by the new head of FHFA. He has consistently mentioned his aversion to the additional risk taken on by the GSEs in public speaking. Yes there is already bifurcation out there, but nothing near the scale should bifurcation go mainstream (under false...

Luxury Real Estate Appraising Designation? - Appraisers Blogs 22

Luxury Real Estate Appraiser Designation?

Back in the late 1970s, when comedian Steve Martin was at his standup peak, he appeared on Saturday Night Live in a routine whose theme was “How to have A Million Dollars And Never Pay Taxes.” Steve got right to the heart of the matter: “First, get a million dollars…” Appraisalbuzz provided a press release type piece on luxury real estate appraising, and I did a double-take wondering whether this was a parody. McKissock, a well respected online education company, now offers a designation for luxury real estate appraising, which I find quite silly. Here are the steps they shared...

NAR Bifurcation Position Is a Good Thing 16

NAR Bifurcation Position Is a Good Thing

I reread last week’s post in Appraiserville: “NAR Real Property Valuation Committee Issues Position On Bifurcation” and felt I left the reader hanging with this incomplete thought: But I don’t want our industry to think: There, we’ve addressed and resolved the threat to appraisers and more importantly, the public trust. After marinating in this topic, I believe the more accurate way to think of this new NAR policy position is this: One of the largest residential real estate trade groups (NAR) developed an appraisal policy on a controversial appraisal topic: bifurcations. Appraisers have been battling the implementation of bifurcation for...

The Costly, Less Accurate & Less Timely GSE Pilot Programs Are Dead! 18

GSE Pilot Programs Dead

The Only Good Pilot Is A Dead Pilot? Like my father always told me about having a business partner (see title above). But I digress. I have yet another independent confirmation that all GSE pilot programs are now dead under the new FHFA director. Fortunately for appraisers, his biggest concern is risk management and this action seems to confirm this. The GSE pilot programs designed to “improve” efficiencies, such as bifurcation (a spurious solution that is more costly, less timely and less accurate), are dead. Not everyone in the chain of command may be aware yet. Real Estate Appraising Is...

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