Author: AppraisersBlogs

Garbage Data In Means Garbage Results Out Every Time! 24

AVMs… Garbage In, Garbage Out

Garbage data in means garbage results out every time!  It’s no secret that AVMs have been a thorn in the side of real estate appraisers since they first came out. Despite all their bells and whistles, these automated valuation models still rely on inaccurate public records and often come up with wildly inaccurate home values. Unfortunately, some consumers don’t realize this until it’s too late – when reality comes crashing down from a local real estate professional after they’ve already gotten their hopes up about their home value thanks to an AVM. Yesterday, a Virginia assessor emailed us with an...

Appraisal / Appraisal News / Appraisers News / Automated Valuation Models / AVM / Fannie Mae - Freddie Mac

Slew of Negative Reviews for Appraiser Miller 45

Slew of Negative Reviews for Appraiser Miller

Her Google & Yelp business pages have received a slew of negative reviews from people living as far away as New Zealand! As real estate appraisers, we understand the importance of accuracy and fairness in our work. We are expected to perform valuation services competently and in a manner that is independent, impartial and objective. We also know how important it is to uphold ethical standards in order to protect ourselves and our clients from potential legal action. The recent case of Austin v Miller serves as a reminder that even when we do our best, things can still go...

Appraisal / Appraisal News / Appraisers News / Trending

Under-Valuations Unrelated to Racial Bias 11

Under-Valuations Unrelated to Racial Bias

Under-valuations that more accurately reflect the homes’ “true” value as opposed to the contract price will also alert the buyer, not just the lender, that he or she may be over-paying, which often triggers a renegotiation… when the seller and buyer settle on a new price after the appraisal, the new lower price reduces credit risk, costs to the borrower, and ultimately results in greater wealth for the buyer. The AEI Housing Center recently released an analysis revealing that reports by the Federal Housing Finance Agency (FHFA) and by Brookings, attributing the greater prevalence of under-valuations in home purchase appraisals...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Federal Housing Finance Agency / FHFA

ASC Data Breach Involving Social Security Numbers 8

ASC Data Breach Involving Social Security Numbers

On October 13, 2022, the Appraisal Subcommittee discovered a data breach that occurred on the new ASC.gov website. The incident involved Social Security Numbers. They made an announcement on January 24, 2023 and have contacted all State Appraiser Regulatory Agencies concerning the data breach. They are also notifying all individuals whose Personal Identifiable Information had potential for exposure. Those appraisers who could have had their data exposed will be offered credit monitoring to prevent identity theft. The Appraisal Subcommittee (ASC) is contacting all State Appraiser Regulatory Agencies concerning a data breach that occurred on the ASC.gov website. Please note: This...

Appraisal / Appraisal News / Appraisal Organizations / Appraisal Subcommittee / Appraisers News / ASC

FastApp AMC Alleged Violations of Appraiser Independence Requirements 52

Fastapp AMC Alleged Violations of AIR

The following court documents in the case Naftali Horowitz v. [xxx], 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 to, among other things, remove the defendant as an officer and director of the Company because, when he brought her on as shareholder in 2020, he claimed that she made...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Dodd-Frank Act / C&R Fees

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...

Appraisal / Appraisal News / Appraisers News / Federal Housing Administration / FHA / HUD

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...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / NAR

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...

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisal Organizations / Appraisers News

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...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

VA Procedures for Alternative Valuation Methods 23

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...

Appraisal / Appraisal News / Appraisers News / The US Department of Veterans Affairs / Trending / VA

xml sitemap
blank