Author: AppraisersBlogs

FastApp AMC Alleged Violations of Appraiser Independence Requirements 48

Fastapp AMC Alleged Violations of AIR

The following court documents in the case Naftali Horowitz v. Nicole Andrews, Fastapp AMC founder v. Fastapp AMC president, confirm what appraisers have been saying all along, that if you want high-volume AMC work, you have to lower your fees to 1980’s level, have 24 hour turn times, and, above all, be a number hitter. Horowitz, Fastapp founder, filed a lawsuit in New York court on January 31, 2022 against defendant Andrews to, among other things, remove Andrews as an officer and director of the Company because, when he brought her on as shareholder in 2020, he claimed that she...

HUD ROV Process to Address Appraisal Bias 37

HUD ROV Process to Address ‘Appraisal Bias’

At a recent event at the Brookings Institute, HUD Secretary Marcia L. Fudge announced that HUD is creating a ROV process for people seeking FHA financing to request a review of their appraisal if they believe the results may have been skewed by racial bias. For example, a homeowner who is in the process of refinancing their home with an FHA-insured mortgage can take steps to ensure that their appraisal is fair. HUD 20.23-011 “HUD is committed to making the appraisal process fair nationwide. We must eliminate bias in home valuations so that everyone can equally reap the benefit of...

NAR Appraisal Survey... Impact of Appraisals on the Current Market 6

NAR Appraisal Survey

The results of the NAR appraisal survey show more than half of appraisers reported AMCs to be the greatest challenge in their business with 40% reporting not being compensated fairly. Only 3% of members witnessed or experienced discrimination in an appraisal… NAR Research conducted a survey of all 9,700 appraiser members and 50,000 randomly-selected non-appraiser members to determine the level of impact of appraisals on the current market and member business in terms of cost, turn-around times, and other challenges and to measure member experiences with bias and discrimination in the appraisal process. Highlights of the NAR Appraisal Survey The...

Slow VA Appraisal Turnaround Times Is Overblown 21

Slow VA Appraisal Turnaround Times Is Overblown

Concerns about slow VA appraisal turnaround times is overblown… On September 14, 2022, US House passed HR 7735, “the Improving Access to the VA Home Loan Benefit Act of 2022“, legislation that proposes to overhaul the Department of Veterans Affairs’ appraisal requirements, including when an appraisal is required, how an appraisal is to be conducted, and who is eligible to conduct an appraisal. The Mortgage Bankers Association (MBA) has long been vocal about its support for the bill. “The bill will encourage important reforms to the agency’s requirements regarding when an appraisal is necessary, how appraisals are conducted, and who...

Appraiser Miller Wins Claim in Racial Discrimination Lawsuit 27

Appraiser Miller Wins

Appraiser Miller wins important claim in racial discrimination lawsuit. Judge ruled Plaintiffs did not rely on Miller’s appraisal. The other claims continue but this was an important claim. It also shows the Plaintiffs lied to the Court. ORDER GRANTING MILLER DEFENDANTS’ MOTION TO DISMISS FIRST AMENDED COMPLAINT; DISMISSING PLAINTIFFS’ SEVENTH CLAIM FOR RELIEF AS ASSERTED AGAINST MILLER DEFENDANTS; VACATING HEARING. In their Seventh Claim for Relief, 2 plaintiffs allege the Miller Defendants negligently misrepresented “that they were providing an unbiased appraisal of [the Austins’ house],” and that the Austins “reasonably relied” on such representations “in attempting to secure a mortgage...

VA Procedures for Alternative Valuation Methods 22

VA Alternative Valuation Methods

On August 1, 2022, the Veterans Affairs released Circular 26-22-13 announcing new procedures for alternative valuation methods, effective immediately. The takeaway: “Desktop Appraisal means a valuation where neither the VA fee panel appraiser nor the appraiser’s designee under the AAPP has physically viewed the exterior or interior of the property and the VA fee panel appraiser has determined an opinion of value based on information obtained from public records, the Veteran, homeowner, realtor, and other appropriate data sources (as determined by the appraiser).” “The use of a Desktop Appraisal may allow an appraiser from outside the market area, but with...

FHA Extends Appraisal Validity Period 9

FHA Extends Appraisal Validity Period

On July 12, 2022, the FHA announced that it is extending the initial appraisal validity period from 120 days to 180 days and the appraisal update validity period from 240 days to one year. This applies to case numbers assigned on or after June 1, 2022. This just seems like a bad idea at a time where many markets are seeing price declines. FHA INFO 2022-71 — July 12, 2022 In this Announcement: FHA Implements Revised Appraisal Validity Period Guidance Appraisal Logging Changes in FHA Connection See below for details. FHA Implements Revised Appraisal Validity Period Guidance Today, the Federal...

Protect Yourself, Ins & Out of Bias & Discrimination Webinar & Forum 5

Protect Yourself Against Racial Bias Claims

Free webinar on how to protect yourself against discrimination claims on 6/30/22, and today there will be a forum on “Racial Bias in the Home Appraisal Process”… OREP is sponsoring a free webinar on how to protect yourself and your business against discrimination claims. Leading trial attorney Craig Capilla has handled nearly 1,000 appraiser cases in his career and has been on the frontlines defending appraisers from lawsuits, state board complaints, and now, HUD Fair Housing (Discrimination) complaints. Capilla began his legal career working for Illinois’ professional regulation agency as a real estate prosecutor and since then has become one...

Only Blacks Need Apply... in the Spirit of Equity 39

Only Blacks Need Apply… In the Spirit of Equity

Fannie makes its subsidies for blacks explicit, but they don’t appear to extend to other racial groups such as Hispanics and Asians. Low-income white borrowers are also excluded. Last week, Fannie Mae & Freddie Mac announced actions that aim to make it easier to buy a home and close the racial homeownership gap. Their Equitable Housing Finance Plan for 2022-2024 outlines a range of pilot programs that remove barriers blacks face when buying or renting, and keeping homeowners and renters at home: Valuation Modernization aims to support an equitable appraisal process for Black households and communities of color Expand Appraiser...

Proposal to Eliminate the VA Fee Panel 26

Proposal to Eliminate the VA Fee Panel

VA Fee Panel – The Appraisal Institute does not believe that a move to a lender select program, such as those found in the conventional or FHA mortgage markets, would  improve timeliness, nor would it be in the best interests of veterans. On May 18, the Subcommittee on Economic Opportunity held a legislative hearing on the Discussion Draft of H.R. 7735, Improving Access to the VA Home Loan Act of 2022. The bill is sponsored by Representative Mike Bost, R-Illinois, the ranking member of the House Veterans Affairs Committee, and Senator Dan Sullivan, R-Alaska, a member of the Senate Veterans...

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