Category: Fannie Mae – Freddie Mac

Sketch or Floor Plan? 13

Sketch or Floor Plan?

The FLOOR PLAN has all the elements of a SKETCH… Appraisers, I was given some ‘inside info’ about DESKTOP assignment reports being submitted to the GSE’s – incorrectly. The FLOOR PLAN exhibit in these DESKTOP reports, in some cases, is not being done correctly. Let’s examine what is actually required as a diagram showing the dwelling: First, when the appraiser certified that they, or their trainee, have/has made an on-site personal visit to the property and has measured the dwelling, only a SKETCH is required – unless interior design problems are noted, in which case the SKETCH must be upgraded to...

American National Standards Institute / ANSI / Appraisal / Appraisal News / Appraisal Software / Appraisers News

Dear ASC: Details... Why They Matter. 14

Dear ASC: Details… Why They Matter

DETAILS… NO MATTER HOW SMALL OR BIG NEED TO BE PRESENTED. If not, you failed. ASC, today you failed us all. Over the past several days, the Real Estate Appraisal Industry has been the subject of scrutiny with the release of the PAVE Report that the Interagency Task Force developed on Property Appraisal And Valuation Equity set forth by the Biden Administration. On March 23, 2022, there was a public meeting to unveil the Pave Task Force report on Racial Bias in the Real Estate Appraisal Profession. You can watch the press conference below as well as read the entire...

AGA / AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations

VA Unofficially Says NOPE to ANSI Measuring Protocol 16

VA Unofficially Says NOPE to ANSI

The other agencies, Freddie Mac, HUD/FHA, USDA, ONAP, VA have NOT (yet) adopted this ANSI measuring protocol. Appraisers, an appraiser I know sent an email to the VA asking if VA was going to require appraisers to adhere to the ANSI Z765-2021 Measuring Standard as of April 1, 2022. The appraiser received an ‘unofficial’ response back from a person within the VA connected to processing appraisals, which said: “The short answer is, no.” I say this is ‘unofficial’ because to-date, I have seen nothing “official” from VA about this topic. Only officials from within VA know whether or not they...

American National Standards Institute / ANSI / Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Promoting the False Racist Appraiser Narrative 8

Promoting False “Racist Appraiser” Narrative

Some Lenders promoting false “racist appraiser” narrative to optimize profits via AVMs Like most businesses lenders want to optimize their profits. One way to make more money besides charging more is to pay less in costs and fees. One way for the lender to do that is to pay the appraiser less or just get rid of them and use a free or very inexpensive Automated Valuation Method (AVM). I personally don’t care if a lender or borrower wants to use an AVM. There is enough business out there for appraisers because not all appraisals are for loans and not...

American National Standards Institute / ANSI / Appraisal News / Appraisers News / Automated Valuation Models / AVM

Proposed Design of the URAR 25

Proposed Design of the URAR

Here’s the link to the ‘slide show’ the GSE’s have produced showing proposed design of the future, revised, URAR appraisal form. In my initial very quick observation of the proposed changes, there is FAR MORE INFO REQUESTED about the subject and comparable sales than the ‘current’ 2005 URAR form has on it. If this is what the final version will be like, the appraiser’s time to ‘complete the form report’ may increase exponentially. It may mean that the cost of the appraisal will increase. I hope people involved with this will be more sensitive to this aspect, unlike what was...

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

ANSI & Floor Plans Goofiness 35

ANSI & Floor Plans Goofiness

“…if you the appraiser are not required to inspect the property yourself, don’t you want to have a more detailed diagram of the home, i.e., a Floor Plan?” There’s been lots of discussion on various forums, classes, Facebook, blogs, podcasts, surveys, articles, etc., about the upcoming ‘demands’ by ONE of the GSE’s to measure using ANSI Standard Z765-2021, and by both GSE’s to provide a Floor Plan for certain assignments. Uniformity is the stated goal. ANSI is not consistent in how they want the perimeter of homes to be measured. Here’s why: for new construction, when the plans (blueprints) are...

American National Standards Institute / ANSI / Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Maxine Waters wants appraisers investigated 119

Maxine Waters Wants Appraisers Investigated

On February 22, 2022, Maxine Waters sent a letter to HUD Secretary Marcia Fudge, TAF, ASC and AI regarding ongoing appraisal bias and discrimination. She is calling on the federal regulators and AI to investigate appraisers’ misconduct and potential illegal discrimination. She will also be introducing legislation to address ongoing discrimination. Maxine Waters’ letter “highlights longstanding racial inequities plaguing America’s home valuation system”. The letter highlights longstanding racial inequities plaguing America’s home valuation system, particularly in Black-majority communities and other communities of color. To illuminate the severity of this issue, Chairwoman Waters references an email recently sent by an appraiser...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Political Action / Trending

Flavors of Appraisal Reports 7

“Flavors” of Appraisal Reports

SEE the differences between the THREE versions of the 1004 reports, what I euphemistically call “flavors.” Appraisers, recent watercooler discussions by appraisers focus on the new ‘desktop’ appraisals many will be requested to do. Now that the GSE’s have “formally” approved non-appraiser-inspected reports for first mortgage lending (or will very soon – not sure of the exact effective date), you may want to actually SEE the differences between the THREE versions of the 1004 reports, what I euphemistically call “flavors.” I spent a number of hours at the end of January reviewing our current ‘full’ 1004 form, and the new...

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

Catch-22 Fraud Facilitating Misleading GSE Products 16

Fraud Facilitating Misleading GSE Products

I can and will decline to do any of these Catch-22 Fraud facilitating misleading products promoted by a GSE… There are many legitimate times and reasons a desktop appraisal may be performed. In every single one of them, it is assignment specific based on the assignment specific needs of the client with a mutually agreed upon scope of work between the client and the appraiser. They also include a scope of work decided upon and explained in the appraiser’s own words. Any relevant extraordinary assumptions and limiting conditions dictated by the nature and use of the assignment are able to...

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

Let's Call Them Desktops with Third Party Inspectors 18

No to Desktops with Third Party Inspectors

Hybrid Appraisals were tested and failed. So what does Fannie Mae do? Let’s call them Desktops with third party inspectors. Fannie Mae has announced they will soon start accepting Desktop Appraisals. The appraiser does not inspect the property; however an interior floor plan including walls is required. This in itself is over and above what most appraisers typically provide. We understand Fannie Mae’s decision is based on risk; however, risk is not part of an Appraiser’s analysis under USPAP. Will State Appraisal Boards look the other way for USPAP compliance? How will an Appraiser who does not inspect the property...

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

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