An AMC for a lender contacted a residential appraiser with the request that the appraiser “appraise only the second floor residence” in a two story Live-Work building within a commercial district, where SFR’s are allowed by zoning. Ground floor area of this Live-Work building is an ice cream & gift shop. The second floor is a fully finished & functional residence. Entire property is being sold. There are numerous legitimate Live-Work buildings in Seattle (and likely elsewhere also). They are properly zoned as such, are listed that way, appraised by using similar type sales – and mortgaged. Typically these are 2-3...
The consumer is being fed yet another lie! Remember when we heard an appraisal waiver will save the borrower money? Do you recall all those videos from loan officers and mortgage companies encouraging borrowers to obtain an appraisal waiver to save them money? News flash – they lied! But you already knew that. Well, fellow appraiser and blogger Krystal Schware of Paragon Appraisal Services has a story for you: “The Danger of Saying Yes to an Appraisal Waiver”. “For only $599, we will grant you an appraisal waiver to help you avoid having an appraisal that ‘comes in short’.” **...
Appraisers, the discussion of subject photos occurred recently on a forum I read. How many of you know the street scene “view” policy of FHA and FNMA? How many of you were trained to just take ONE photo from the very front of the subject, looking down the street in one direction or the other (without having the subject in the photo)? Is that ‘good enough’ for a lender to know the context of where the subject is on the street? If a ‘street view policy’ between agencies is more strict for one, would it be appropriate to adopt that policy for...
Recent Cyber Attacks on CoreLogic and a Large Appraisal Firm Expose a Real Business Risk to Valuation Firms and Companies. As two recent attacks show, cyber crimes pose a real risk – legally and economically – to appraisal firms, management companies and other businesses involved in property analytics. If an operation like CoreLogic can be victimized by criminal hackers seeking property information, as it was in an attack earlier this month, any valuation firm or property analytics company is at risk. And, more seriously, the losses suffered by an appraisal firm in the separate cyber attack discussed below demonstrate how...
Folks, a colleague named Barry Cleverdon was in a car accident three weeks ago and he has been in a coma ever since. With his wife’s permission here is a GoFundMe to help support him. Barry Cleverdon has over 35 years of appraisal experience in California and he’s been teaching appraisal classes since 1991. On February 5th while on his way to the Real Estate Appraisers Association (REAA) appraiser meeting in Sacramento he got into an accident with a large truck. After the incident he actually walked to a Walmart, called a cab, and was driven home. But he fell...
Here are some thoughts on something I know nothing about, but want to get some answers. How does the ADA (Americans with Disabilities Act) affect real estate appraisers? This act exists to help those with disabilities to have the same advantages of those who do not (at least as much as possible). At the time it first past, there was grumbling from those who had to spend the money to retrofit their buildings into compliance. There were cheers from those who before could not access buildings, elevators, stairwells who now could. My opinion is that the benefits outweighed the costs...
I’ve read a number of posts where appraisers are disappointed at federal banking agencies declining to hold public hearings on the topic of raising the appraisal minimum threshold for residential real estate transactions from $250,000 to $400,000. The request for a public hearing on the issue was ‘worth a shot’ but was never a realistic expectation. We knew that when we joined with others in signing the letter. Federal rulemaking agencies already have policies and procedures in place for mandatory public input. It’s unrealistic to expect them to make special exceptions. Especially when existing lobbyists that promoted the short-sighted policy...
The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have denied the request for a public hearing on raising the appraisal minimum threshold for residential real estate transactions from $250,000 to $400,000. See the “agencies” rejection letter here. …we do not believe that holding a public hearing would elicit relevant information that could be conveyed through the comment process described above. While the agencies are, therefore, declining your request for a public hearing, we will carefully consider your written comments… The American Society of Appraisers, The Appraisal...
An appraiser shared the following with us. Vintage Mortgage Firm is offering faster cheaper appraisals. New Faster Cheaper Appraisals! Three points: One: We run automated approvals with both DU (Fannie) and LP (Freddie) with the click of one button. This gives us the best chance for appraisal waivers. Have you done a purchase transaction recently with NO appraisal needed? We do them all the time. Two: As of Feb 1st, we will have access to a completely different kind of appraisal if one is needed. First step is a much cheaper $145.00 abbreviated appraisal. This information is put into our...
…are they behind this modern day redlining?… The broad definition of an algorithm according to Merriam Webster’s Dictionary is “a step-by-step procedure for solving a problem or accomplishing some end.” It is pretty basic and fully understood, right? Now think back to those dreaded English classes. When did you learn about acronyms? Grade School, High School, College? Regardless, let’s just say it was a while back, so I will refresh your memory. According to Merriam Webster’s Dictionary, an acronym is” a word formed from the initial letter of words of each of the successive parts or major parts of a compound...
