Appraisal News and Appraisal Tips For Real Estate Appraisers - Your source for appraisal industry news, appraisers' opinions, and discussions of appraisal issues

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A Mind Blowing Trend

Harmful trend implemented by Collateral Underwriter and AMCs… There is a new trend starting in our industry! Phil Crawford with Voice of the Appraisal exposes it. The trend is being implemented by Collateral Underwriter and AMCs. It is extremely harmful to the consumer and local communities. VaCAP recommends each appraiser, residential and commercial listen to his show. His show is 42 minutes long and worth every second. Listen to the Voice of Appraisal E138 Manipulating Chucky and Alexis Craig!!! 1/28/2017 Great Webinar from Network of State Appraisal Organizations! On January 18th, NSAO sponsored a webinar with Jim Parks with the...

APB Operations Suspended by The Appraisal Foundation (TAF) 5

TAF Suspends Most APB Operations

APB was based on the housing crisis of 2008… Appraisers, The news release below was issued on Jan. 26, 2017. I for one, appreciate what’s been done so far by the Appraisal Practices Board to help define and explain certain aspects of our work, and make those items available to anyone who wanted to download their advisories. I am also of the opinion that the initiation of the APB was one of the elements that lead to the Appraisal Institute resigning from The Appraisal Foundation, an action that was not entirely positive for AI members, or the ‘image’ of AI...

Appraisal Regulations - Life After Dodd-Frank ~ copyright AppraisersBlogs 5

Life After Dodd-Frank

Do the agencies’ appraisal regulations apply to FHA, VA… Republican control of Washington DC will mean one of two things: A scaling back of Dodd-Frank, or The elimination of Dodd-Frank Like it or not, one of these two scenarios will play itself out in 2017 or 2018. What about AMCs? The AMC Final Rule was deemed that…the registration and supervision of AMCs is voluntary, and that a State may elect not to establish such a program for any reason, including if its resources do not support such a program. Will the states walk away from AMC regulation? Perhaps not all, but definitely some states will either bypass the...

Contract Price vs Failed Appraisal...The Blame Game Just Won't Quit 34

Shame on Us – Appraisal FAILS Replace LOW Appraisal

Appraisal under contract price… Appraisers, The blame game just won’t quit. Now instead of dealing with a ‘low appraisal’, it’s now a “FAILED appraisal.” It’s always “our” fault properties don’t sell – when the contract sale price is higher than the appraised value. It’s never the fact that the home may have been over-priced, the buyer was desperate or over-emotionally involved, or the seller super greedy. The latest example highlighting “our” deficiencies: Excerpts from the Mortgage News Daily article: “…collateral problems are consistently the third most frequent cause of loan denials.” “…appraisals coming in below the contract selling price is...

The Site Value… A Walk in the Park or USPAP Nightmare? 10

The Site Value… A Walk in the Park or USPAP Nightmare?

Recognized methods to determine the site value… We have all been there, the subject is located in an established neighborhood, no vacant land sales in many years and the lender has requested the site value. USPAP Standard 1-1 states “be aware of, understand and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal.” The other key standard to keep in mind is Standard 2-2a (viii) – “Summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analysis, opinions and conclusions: exclusion of the sales comparison approach, cost approach...

AMC Non Grata 12

AMC Non Grata

I’m coining the phrase AMC non grata… Appraisers, There’s an old, accepted diplomatic term being used by US government folks these days: “persona non grata‘. It refers to a diplomat or other approved foreign nation person being involuntarily removed from the host country, on very short notice. In the most recent case it applies to Russians being expelled from the US due to the alleged actions of their government in the last election. ‘Persona non grata’ got me to thinking. We have instances in our profession where AMC’s become expelled from our businesses. So I’m coining the phrase AMC non...

Residential Appraisers Being Phased Out 20

Appraisal Alternatives

Computers eliminating “boots on the ground” residential appraisers. An historian once quipped, “I cannot predict the future, but give me six months and I’ll tell you why it was inevitable.” Residential appraisers who work in the mortgage arena began to experience the sea change when UAD arrived amongst much fanfare in September of 2011. Years of portals, hard-stops, and overrides have settled into an uneasy routine. We’ve already seen changes to closing docs as a result of TRID (TILA RESPA Integrated Disclosures). That adventure began in November 2013. Washington DC, never content to maintain any level of consistency has already...

2017, A Time for Change. Change for the Good! 3

2017, A Time for Change. Change for the Good!

Real Change is on the Horizon! It is always the same; out with the old, in with the new. New Year resolutions typically last a few weeks and then we are back to the same routine. Sound familiar? Well, 2016 saw some improvements in the appraisal profession, but real change is on the horizon. VaCAP’s new year resolution is all about change. Change for the good! 2017 will be a year in which Virginia appraisers continue to move forward in a positive direction. Over the next few months, pay attention to our communications. Some exciting opportunities are in the works...

Amateur AMCs Misguided Requests 12

Amateur AMCs

Amateur AMCs Misguided Requests & Unecessary Demands… Folks, I’ve written consistently over many years about the misguided request many lenders and AMCs have about “requiring” appraisers to include a copy of their license and E&O binder page in reports. I have consistently suggested appraisers PUSH BACK whenever you encounter this demand when it is in the list of items to be included, shown in the AMC assignment engagement documents. I’m not the only one doing this. It is absolutely essential that you review these docs prior to accepting and doing any assignment for anyone, especially the multiple new amateur AMCs...

Higher Value Bids - Appraiser Versus Machine 24

Appraiser Versus Machine?

Loan officer, the bank, homeowner… want a higher value… Automated Valuation Models: Are they any good? Appraiser vs Machine? AVMs were run on a few properties that were recently appraised. The results are well, ….. they are what they are. The questions are: Are they good? Are they good enough? Will the consumer accept them? Will the banks and lenders accept them? Below are the samples. We have to be careful as we are appraisers and don’t want to be sitting in front of the VREAB explaining why we shared assignment results in violation of the confidentiality requirements of the...

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