Tagged: Fannie Mae

NAIHP Promotes New Appraisal Rules on Capitol Hill 4

NAIHP Promotes New Appraisal Rules on Capitol Hill

NAIHP acknowledges neither HVCC nor Appraiser Independence rules require the use of AMC’s. The conflict of interest rules contained in the “Interim Final Rule on Appraiser Independence,” were designed to establish a firewall between a loan production department ordering valuations of residential real estate and appraisers, who perform valuations. The Federal Reserve Board (FRB), who established the Interim Final Rule to replace the Home Valuation Code of Conduct (HVCC) in October of 2010, recognized it was not always practical to separate these functions in small financial institutions, which is why the FRB created two sets of firewall requirements: one for...

Rental Block - Fannie Mae Form 1025 4

Rental Block

Simply dumping rents into rental grid… The Fannie Mae Form 1025 is a lame document. There. I said it. You appraisers out there all know exactly what I’m talking about. Part of what makes it lame is the goofy layout of the form and what passes for education for appraisers in how to complete it properly. Too many appraisers haven’t a clue how to compare rents in a two to four unit apartment building. In many cases they simply dump rents into rental grid and magically opine that the subject rents are supported in the  market. What market is that? Actual...

Appraisal Institute Releases Enhanced ‘Green’ Addendum 2

AI Releases Enhanced ‘Green’ Addendum

The Appraisal Institute released on March 7 an updated version of its Residential Green and Energy Efficient Addendum. The form is designed to assist in the valuation of energy-efficient home features, and it remains the first of its kind specifically intended for appraisers’ use. AI originally issued its green addendum in September 2011 as an optional form to Fannie Mae Form 1004, which is the valuation profession’s most widely used form for mortgage lending purposes. The addendum allows appraisers to identify and describe a home’s green features, from solar panels to energy-saving appliances. Form 1004 devotes limited attention to energy-efficient features,...

URAR pandoras box 0

URAR Form Ambiguities and Liabilities

Revisiting The Fannie Mae/Freddie Mac 2005 URAR Form Ambiguities and Liabilities It has been eight years since the URAR form was revised. From 2005 to mid-2008, the real estate market experienced a boom and a bust the likes of which we have never seen before, and we are finally seeing a slow recovery. Also during this period, the economic recession and poor lending practices lead to new regulations in both the appraisal and banking industries. Based on the new regulations, Fannie Mae/Freddie Mac mandated appraisers to add more information to the URAR form. As of March 2009, the Market Conditions...

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Fannie Mae Issues “Hard Stops” on Appraisal Messaging

As of January 28, 2013, Fannie Mae started placing greater restriction on the data they collect to ensure uniformity. You will now begin seeing a “hard stop” issued by Fannie Mae on messaging. This change affects Appraisers working with AMCs or other lenders who submit data to Fannie Mae. What has changed? As appraisers know, the Uniform Collateral Data Portal (UCDP) is an electronic tool that Fannie Mae uses to ensure uniformity in the data that Appraisers collect and submit. The theory is that being able to track trends and information through data collected on appraisals will ensure more informed...

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BPC Report: Eliminate GSEs, Rethink Appraisal Processes

A Bipartisan Policy Center report released Feb. 25 primarily focused on reducing the government’s role in the nation’s housing finance system, but it also proposed changes to current appraisal policy. Appraisal-specific recommendations contained within the 136-page report, titled “Housing America’s Future: New Directions for National Policy,” focused on banning the use of distressed home sales as comparables by appraisers, a practice the BPC said was helping to depress local home values and impacting buyers’ ability to secure financing. The report suggested that Fannie Mae, Freddie Mac and the Federal Housing Administration should refuse to accept distressed sales as valid comps,...

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The FHA is Broke – Bailout Broke

Chairman Hensarling Announces Series of Committee Hearings Focused on Looming Financial Crisis at FHA Washington, Jan 30 – Chairman Jeb Hensarling announced today that the Financial Services Committee will hold a series of hearings throughout the year that focus on the financially troubled Federal Housing Administration, the FHA’s outsized role in the nation’s housing finance system, and the need to create a sustainable mortgage finance system. The FHA’s single-family insurance fund, which insures more than $1 trillion worth of home mortgages, has a negative economic value of $16.3 billion, according to an actuarial report released by the Department of Housing...

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Fannie Mae and Freddie Mac UAD Update

January 29, 2013 – Uniform Appraisal Dataset Update and Uniform Collateral Data Portal Release Notification As communicated in the September UAD Update, Fannie Mae and Freddie Mac (the GSEs) will convert several of the current Uniform Appraisal Dataset (UAD) compliance warning edits to fatal UAD edits in the Uniform Collateral Data Portal® (UCDP®) during 2013. The first phase, targeted for implementation in June 2013, will include warning edits for the following data fields converting to fatal UAD edits: Appraisal effective date Subject contract price and comparable sale price Above grade Gross Living Area (GLA) (subject and comparables) Sale type (subject...

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New York Attorney General v. eAppraiseIT: Settlement

The New York Attorney General’s Office announced yesterday that it has reached a settlement with CoreLogic, as successor to eAppraiseIT, over the 2007 lawsuit filed against eAppraiseIT by then-Attorney General Cuomo. This was the case, of course, that led to the HVCC with Fannie Mae and Freddie Mac. It also put the AMC liability train in motion, which has kept rolling since — resulting in significant lawsuits filed by both government agencies and private parties against a majority of the 10 largest AMCs. The NY AG noted that the lawsuit concerned approximately 10,000 appraisals in New York for WaMu in...

Non-permitted Additions 4

Non-permitted Additions

“What is the big #$%^&*@! deal with non-permitted additions?” The last few weeks I have noted a common theme in my conversations with appraisers across the nation. This topic seems relatively simple and yet since I have encountered endless questions I thought this post may add something to overall community. The question boils down to “What is the big #$%^&*@! deal with non-permitted additions?”, for residential lending purposes. Of course this stems from the fact that many residential lenders are pushing back appraisals that have given value consideration to an addition which was non-permitted at the time of construction. This...

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