What is the goal of the Focus Group? Appraisers, Please read the memo below from a member of the Appraisal Practices Board. The Board is meeting FEBRUARY 23, 2017 in Torrance, California. They are sincerely interested in appraisers written input. It doesn’t have to be a formal letter. Jot down some thoughts and views in your email and either send it to the APB, Mrs. Desmarais, Vice Chair of APB (lap…@comcast.net), or if you prefer send to me (m…@mfford.com) with subject line “Forward to TAF/APB” or something similar. Please try to get comments in by 02/22/2017. The original agenda has...
Appraisers harassed to use sales not comparable to lower CU risk score… Readers that have followed my past Collateral Underwriter (CU) articles already know my opinion of it. It was flawed system design starting with its underlying database. Designed by seven people that did not have a valid appraisal license between them! Setting aside the basic database flaw in CU, it was and is a system that’s highly susceptible to manipulation. The CU scoring parameters can be modified at the lender-user end. Even if that were not possible, it is still subject to manipulation. As Phil Crawford points out, FNMA first...
Harmful trend implemented by Collateral Underwriter and AMCs… There is a new trend starting in our industry! Phil Crawford with Voice of the Appraisal exposes it. The trend is being implemented by Collateral Underwriter and AMCs. It is extremely harmful to the consumer and local communities. VaCAP recommends each appraiser, residential and commercial listen to his show. His show is 42 minutes long and worth every second. Listen to the Voice of Appraisal E138 Manipulating Chucky and Alexis Craig!!! 1/28/2017 Great Webinar from Network of State Appraisal Organizations! On January 18th, NSAO sponsored a webinar with Jim Parks with the...
APB was based on the housing crisis of 2008… Appraisers, The news release below was issued on Jan. 26, 2017. I for one, appreciate what’s been done so far by the Appraisal Practices Board to help define and explain certain aspects of our work, and make those items available to anyone who wanted to download their advisories. I am also of the opinion that the initiation of the APB was one of the elements that lead to the Appraisal Institute resigning from The Appraisal Foundation, an action that was not entirely positive for AI members, or the ‘image’ of AI...
Do the agencies’ appraisal regulations apply to FHA, VA… Republican control of Washington DC will mean one of two things: A scaling back of Dodd-Frank, or The elimination of Dodd-Frank Like it or not, one of these two scenarios will play itself out in 2017 or 2018. What about AMCs? The AMC Final Rule was deemed that…the registration and supervision of AMCs is voluntary, and that a State may elect not to establish such a program for any reason, including if its resources do not support such a program. Will the states walk away from AMC regulation? Perhaps not all, but definitely some states will either bypass the...
Recognized methods to determine the site value… We have all been there, the subject is located in an established neighborhood, no vacant land sales in many years and the lender has requested the site value. USPAP Standard 1-1 states “be aware of, understand and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal.” The other key standard to keep in mind is Standard 2-2a (viii) – “Summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analysis, opinions and conclusions: exclusion of the sales comparison approach, cost approach...
Computers eliminating “boots on the ground” residential appraisers. An historian once quipped, “I cannot predict the future, but give me six months and I’ll tell you why it was inevitable.” Residential appraisers who work in the mortgage arena began to experience the sea change when UAD arrived amongst much fanfare in September of 2011. Years of portals, hard-stops, and overrides have settled into an uneasy routine. We’ve already seen changes to closing docs as a result of TRID (TILA RESPA Integrated Disclosures). That adventure began in November 2013. Washington DC, never content to maintain any level of consistency has already...
Real Change is on the Horizon! It is always the same; out with the old, in with the new. New Year resolutions typically last a few weeks and then we are back to the same routine. Sound familiar? Well, 2016 saw some improvements in the appraisal profession, but real change is on the horizon. VaCAP’s new year resolution is all about change. Change for the good! 2017 will be a year in which Virginia appraisers continue to move forward in a positive direction. Over the next few months, pay attention to our communications. Some exciting opportunities are in the works...
Loan officer, the bank, homeowner… want a higher value… Automated Valuation Models: Are they any good? Appraiser vs Machine? AVMs were run on a few properties that were recently appraised. The results are well, ….. they are what they are. The questions are: Are they good? Are they good enough? Will the consumer accept them? Will the banks and lenders accept them? Below are the samples. We have to be careful as we are appraisers and don’t want to be sitting in front of the VREAB explaining why we shared assignment results in violation of the confidentiality requirements of the...
Time for the AI to cooperate with real estate appraisal state coalitions…? Is it finally time for the AI to cooperate with other respected professional peer organizations and state coalitions? Please read the following article by Jonathan Miller, titled “Sadly, The Appraisal Institute is now working against its local chapters“, to see what AI insiders views are about the relevance of the AI’s current path. While my intent is not to take cheap potshots at the AI, I do find it odd that the same organization that repeatedly testifies in public that it represents the interests of all appraisers in...
