Author: Jonathan Miller

Potential Tsunami of Mortgage Fraud - Deferring Appraisals for 120 Days 11

Potential Tsunami of Mortgage Fraud

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....

Veros Suspect Forecast Displays their Lack of Understanding of the Crisis 16

Veros AMC Suspect Forecast

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....

XOME Letter in Case Appraisers Get Arrested 30

XOME Letter in Case Appraisers Get Arrested

Insiders tell me they are publishing a Dick Tracy Decoder Ring next week. Good grief. This suggests they are so desperate for appraisers to place themselves in harm’s way that a printer and a logo is all you need for protection. Do they have a legal department? To Whom it May Concern: This letter acknowledges that ____________ is an authorized vendor of Xome. Xome is an Essential Business (or its equivalent, in accordance applicable state or local order) that provides support and services on behalf of exempt financial services companies that originate mortgage loans and service mortgage loans nationwide. Xome...

COVID-19 Disclaimers in Appraisal Reports - Appraisers Blogs 17

COVID-19 Disclaimers in Appraisal Reports

Let’s focus on the big rocks, not the small rocks in this time of crisis I shared my firm’s disclaimer for the Coronavirus to a group of appraiser colleagues of mine: Extraordinary Assumption – COVID-19 was identified in China in December 2019 and quickly spread across the globe, including the U.S., evolving into a pandemic. As a result, the Federal Reserve cut the federal funds rate on March 3, 2020, by 0.5%, making the threat of the virus tangible to most housing market consumers. The Fed cut the federal funds rate by another 1% on March 15, 2020, to offset...

USPAP Misleading Definition Inviting Problems, Not Protecting Public Trust 11

New “Misleading” Definition Inviting Problems

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...

Some Cobras Might Want To Look In The Mirror 7

Cobra’s Favorite Target is TAF Dave Bunton

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...

You Should Be Insulted if That’s All You Think You’re Worth 18

You Should Be Insulted…

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...

Sign of GSE Compression Into One Entity 15

GSE Compression Into One Entity

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...

Luxury Real Estate Appraising Designation? - Appraisers Blogs 22

Luxury Real Estate Appraiser Designation?

Back in the late 1970s, when comedian Steve Martin was at his standup peak, he appeared on Saturday Night Live in a routine whose theme was “How to have A Million Dollars And Never Pay Taxes.” Steve got right to the heart of the matter: “First, get a million dollars…” Appraisalbuzz provided a press release type piece on luxury real estate appraising, and I did a double-take wondering whether this was a parody. McKissock, a well respected online education company, now offers a designation for luxury real estate appraising, which I find quite silly. Here are the steps they shared...

NAR Bifurcation Position Is a Good Thing 16

NAR Bifurcation Position Is a Good Thing

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...

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