Author: Jonathan Miller

Here is my take on the new ruling since I just happen to be an appraiser with 34 years of experience: Lenders have seen their mortgage volume drop because of liquidity issues (namely job loss and uncertainty about future income). Lenders are also reluctant to issue low rate loans in this situation given concerns about liquidity and lack of processing capacity, so mortgage rates are not falling in aggregate. In essence, they are slightly higher than a month ago. There is also the likelihood of declining property values going forward, so an 80% LTV could be a 100% LTV tomorrow....

As real estate appraisers, we are the best source of market insights to the consumer because we aren’t paid on commission. One of the things that appraisers should not do, is pretend to know what will happen in the aftermath of the Coronavirus. No one knows at this point because the Coronavirus itself hasn’t reached its Apex so there is no light at the end of the tunnel. Sure we can speculate about the future, but there are no specific numbers to back that up. That’s why a recently shared report by the AMC known as Veros is so irresponsible....

I perused the latest copy of USPAP and saw a new definition on the list: Misleading. While I appreciate the attempt by TAF to create clarity and their hard work, and appraisers need standards to operate by and USPAP should be that standard, the addition of this word to the list is symbolic of over-regulation. “Misleading” as a word is a qualitative term and the courts will determine whether something is “intentional” or “unintentional.” In Webster’s dictionary, the word “mislead” already has a negative connotation. “to lead in a wrong direction or into a mistaken action or belief often by...

In 2016 I began to wage a battle with the Appraisal Institute to bring to light how they were working against the residential appraisers’ interests by going to state legislatures (largely, Scott DeBiasio). What triggered my outrage was their attempt to take control over the local finances of each chapter and I’m not even a member. Their lack of residential representation continues today but the difference is, the appraisal industry’s deeper understanding of AI’s past behavior, linkage with AMCs including past senior officers who run them and lack of effectiveness in moving residential forward. One of my thought processes during...

A good friend and appraiser colleague of mine in the midwest sent me this appraisal order request from Better Mortgage in New York [redacted]: My friend and I and most of my peers marvel at order requests like this. They are paying half the market rate to the actual person analyzing the asset to be used as collateral for the mortgage, but most importantly that seems to enable them to provide free lunches and snacks to their employees who process the loans. See the review in Glassdoor. Companies like this can often find a few appraisers willing to work for...

Here’s one little thought before you sip that New Year’s champagne… Because we appraisers sweat the details to provide credible valuations, we might miss the macro right in front of us. A few months ago I suggested that the current pilot programs for wide-scale bifurcation assignments were “dead man walking” per suggestions and insider tips related to actions by the new head of FHFA. He has consistently mentioned his aversion to the additional risk taken on by the GSEs in public speaking. Yes there is already bifurcation out there, but nothing near the scale should bifurcation go mainstream (under false...

I reread last week’s post in Appraiserville: “NAR Real Property Valuation Committee Issues Position On Bifurcation” and felt I left the reader hanging with this incomplete thought: But I don’t want our industry to think: There, we’ve addressed and resolved the threat to appraisers and more importantly, the public trust. After marinating in this topic, I believe the more accurate way to think of this new NAR policy position is this: One of the largest residential real estate trade groups (NAR) developed an appraisal policy on a controversial appraisal topic: bifurcations. Appraisers have been battling the implementation of bifurcation for...