Author: Dave Towne

Future Changes in USPAP 2022-23 - Time to Quit the Constant Changes 11

Pending Future Changes in USPAP 2022-23

The Appraisal Foundation / Appraisal Standards Board have released the 4th Exposure Draft to the FUTURE version (2022-23) of USPAP. I, like so many other ‘stakeholders’ and appraisers, have grown weary of the incessant Exposure Drafts and updates to our mandated PROTOCOL MANUAL, which for many years has been massaged and modified in various ways every 2 years. Largely because new members cycle onto the ASB every year or two. The constant updates has resulted into a continuing cash cow for the Appraisal Foundation / Appraisal Standards Board. But in actual use, that should not happen because USPAP is codified...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / ASB / The Appraisal Foundation

Building Codes: Need for Railings or Handrails? Is this a Legal Bedroom?... 6

Building Codes

Appraisers should have a basic understanding of residential electrical, plumbing and building codes. Or at least have a way to research them… While reading the National Appraisers Forum on Friday December 4, 2020, I found a post contributed by California appraiser Craig Gilbert, who provided this link to building codes in each state. Over the years, I’ve seen numerous appraiser comments in various places stating that I don’t need to know anything about building, electrical or plumbing codes. Well, I hate to be the Grinch who stole Christmas, but I disagree with that perspective. Appraisers should have a basic understanding...

Appraisal / Appraisal News / Appraisers News

Appraiser Judy Dowdy Needs Our Help! - Appraisers Blogs 4

Appraiser Judy Dowdy Needs Our Help!

Our friend & retired appraiser Judy Dowdy was nearly killed by a distracted driver in mid-October while riding her bike in Oregon. Sustained very serious injuries and spent time in a trauma hospital in Oregon. Now she and partner Ben are temporarily living in his late mother’s home in CA while she recovers. Joe Lynch posted the message below from Judy Dowdy: “After the follow up doctors appointment in two more days of driving we made it to the central valley of California in the town of Hanford. I was able to very carefully get in and out of our...

Appraisal / Appraisal News / Appraisers News

Biden Calls Out Racial Bias Among Appraisers 56

Biden Calls Out Racial Bias Among Appraisers

To counteract low appraisals in minority neighborhoods, Biden says he’ll push for training to address racial bias among appraisers… Appraisers, you might want to “take a gander” at this article in the link below, because it indicates possible/probable changes coming. I especially like the ‘extra training for appraisers’ to avoid discrimination/racial bias. Not. In other words, appraisers are at fault for lower values in certain neighborhoods which are not as highly valued as others, and so we must be indoctrinated to be more sensitive. Buckle up folks, as it’s going to be an interesting ride. Excerpt from Biden Admin and...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / NAR / National Association of Realtors

Radian Ending & Replacing Traditional Appraisals with Artificial Intelligence 14

Radian Ending Traditional Appraisals

In the news release, Radian, an AMC licensed in most US States says they will help their clients ‘transition’ away from traditional appraisals… This news release was circulated yesterday, October 29, 2020, by the Radian Group Inc. Radian Group (NYSE:RDN) will wind down its traditional appraisal business, which offers residential real estate appraisal services through a panel of independent contractor appraisers, to focus on core mortgage and real estate businesses driven by digital products and services. This news is so fresh that their very attractively designed web site and associated pages still glowingly highlight how wonderful their ‘traditional appraisals’ are… at least...

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

Verifying Property Sales Data Is Key Element in Doing Appraisals Correctly 10

Verifying MLS Shown Sales Price

Verifying property sales data is a key element and requirement in doing appraisals correctly… Verifying property sales data is a key element and requirement in doing appraisals correctly. We cannot just assume the MLS reports sale prices correctly. One aid to help do this is by using one of the ‘data download’ software providers which prefill many property data items in the report comparable grids. These companies have direct interties with the local MLS (most, not all across the US), and public data from either your jurisdiction recording or assessor office, or an amalgamation company such as Realist. Two ‘data...

Appraisal / Appraisal News / Appraisal Software / Appraisal Technology / Appraisers News / DataMaster

Appraisal Forms Redesign - What's Coming Down the Track? 3

Appraisal Forms Redesign

In 2018, the GSEs began working on ‘mortgage lending appraisal forms redesign’, a process they said would take approximately 3 years to accomplish. The effort is currently underway, however they have not announced exactly when the process will be completed, or when the new forms will take effect. Attached is a PDF of their FAQs through June 2020 which you may want to peruse, just so you become more aware of “what’s coming down the track” not too long from now. From my quick read of this FAQ document, key items include: GSE forms are not to be used for...

1004MC / Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / UAD

Highest and Best Use - Dead in the Water - Appraisers Blogs 4

Highest and Best Use

Appraisers, I had a recent discussion with a review appraiser, who discussed a ‘situation’ with me. It involved Highest and Best Use (H&BU), and the appraiser’s reluctance to re-do a report so that a loan could be made. The appraiser had checked the H&BU question box on page 1 of the 1004 form as “NO”, which immediately stops the lending process. This H&BU topic is sometimes difficult for appraisers due to many variables which need to be analyzed. The twisted part of this situation (which influenced the appraiser’s H&BU reporting) is the property is in an area where some, not all,...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

FNMA Accessory Dwelling Units (ADU) Policy Updated 10

Fannie Mae’s ADU Policy Updated

On September 2, 2020, FNMA updated their policy allowing for Accessory Dwelling Units (ADU) on Single Family Residential (SFR) properties to be a Manufactured Home. This is in their Selling Guide Announcement SEL-2020-05, linked below. Key points: An accessory dwelling unit (ADU) is an additional living area that is independent of the primary property and has basic bathroom, cooking, and sleeping facilities. With this update, we clarified ADU property eligibility and comparable sales requirements in the appraisal as follows: expanded the current definition of an ADU to improve proper classification of ADUs; expanded property eligibility by allowing multi-width manufactured homes...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Carlson Family Fire Relief Fundraiser 0

Carlson Family Fire Relief Fundraiser

Folks, California Certified General appraiser John Carlson (Napa area) just experienced a total devastating loss of his home, three others, outbuildings, etc., on the family ranch, Thursday 8/20/20, due to the major wildfire in the Napa valley wine country. Fortunately, John’s office is off-site and was not torched. A family friend has set up a GoFundMe account for John and family. If you see it in your heart, please donate! On that page, there is a photo of one of the horses that survived, surrounded by the burned area. As of about 8 pm on Friday 8/21/20, about 40% of...

Appraisal / Appraisal News / Appraisers News

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