Category: Appraisal

April 4, 2024

Obscure Federal Official Has Hatched ‘Sick Chicken’ in Housing Sector

The case eventually found its way to the U.S. Supreme Court, where it came to be known to the public as the “Sick Chicken Case” It was the Great Depression’s bleakest year – 1933. At President Roosevelt’s urging, Congress passed the National Industrial Recovery Act, a New Deal bill that partially ceded lawmaking authority to private organizations and industry boards to develop codes of conduct that would then be enforced on citizens as binding law. The owners of poultry producer Schechter Poultry Corp. were indicted for violating the new private business code for the poultry industry. The chicken men lawyered...

Appraisal / Appraisal News / Appraisal Organizations / Appraisal Subcommittee / Appraisers News / ASC

April 1, 2024

ChatGPT Appraisal Error Sparks Ethics Debate

A recent post by an appraiser trainee on an online forum described a troubling situation involving the use of ChatGPT to generate content for an appraisal report. The trainee admitted to using ChatGPT to write a market summary section without properly reviewing it first. This resulted in factual inaccuracies making it into the final report delivered to the client. Upon discovering this, the client, a local bank, threatened to file a complaint against the trainee. The trainee is now considering falsely claiming to have personally written the problematic section in an attempt to avoid consequences. “Hey everyone, I recently used...

Appraisal / Appraisal News / Appraisers News / Trending / Uniform Standards of Professional Appraisal Practice / USPAP

Ken Mullinix Has Become a Figure From a Kafka Novel

March 29, 2024

At Federal Agency, The Mayhem Is the Message

Mullinix has become a student of the “Title VIII Complaint Intake, Investigation, and Conciliation Handbook (8024.1).” The handbook is designed to protect citizens from overzealous federal workers. He found section after section had been violated in his own investigation by the HUD contractor. Czech-German author Franz Kafka wrote “The Trial” in 1915. The novel is a reflection on bureaucracy, power and absurdity. Its protagonist, Josef, is arrested and prosecuted by a mysterious and inaccessible authority for a crime that is never revealed to him or the reader. It’s a man’s journey through an incomprehensible and dehumanizing landscape. Ken Mullinix has...

Appraisal / Appraisal News / Appraisers News / HUD / The US Department of Housing and Urban Development

March 28, 2024

LoanDepot Appraisal Discrimination Settlement

Connolly and Mott v. Lanham, 20/20 Valuations, and loanDepot.com, U.S. District Court, Maryland. This is one of the appraisal discrimination cases that has received significant attention – among appraisers, the media and government agencies. A Black couple in Baltimore – Dr. Connolly and Dr. Mott, both university professors – filed suit in August 2022 alleging racial discrimination against loanDepot.com and the appraiser it engaged to appraise their home for a refinance. They alleged that the appraiser had taken into account their race in his valuation of their home in violation of the federal Fair Housing Act and other laws prohibiting...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

March 12, 2024

Marcia Fudge leaving HUD!

Marcia Fudge is also the current co-chairperson of the PAVE Task Force Committee, so that group’s philosophy may also be modified with her resignation. I read a number of web provided publications oriented to our appraisal work, and lending. This popped into my email yesterday from Inside Mortgage Finance Publications: “As IMFnews went to press Monday, Marcia Fudge announced that she will step down as secretary of the Department of Housing and Urban Development, effective March 22. A Biden appointee, Fudge, 71, did not provide a specific reason…” USA Today: “Fudge vows not to run again “Don’t look for me...

Appraisal / Appraisal News / Appraisers News / HUD / The US Department of Housing and Urban Development / Trending

March 7, 2024

Is the GSE’s “Appraisal Modernization” Really Just Mass Appraisal?

Mass Appraisal tend to exhibit a regressive nature… In the intricate landscape of real estate mortgage financing, the notion of appraisal waivers recently dubbed “Value Acceptance”, by the Government Sponsored Enterprises (GSEs), has stirred considerable debate. The most recent statistics show Value Acceptance accounts for up to 40% of all mortgage approvals. It is presented as part of the GSEs “Appraisal Modernization” initiative, which aims to streamline the mortgage appraisal process. However, a closer examination reveals potential drawbacks, raising questions about its efficacy and impact on the housing market. Despite its roots in a methodology designed to support appraisers, Value...

Appraisal / Appraisal News / Appraisers News / Automated Valuation Models / AVM / Collateral Underwriter

March 6, 2024

The Lack of Transparency in Appraiser Compensation

The current system of bundling appraiser compensation with third-party fees can lead to confusion and frustration for both appraisers and consumers. In their letter to the ASC, NAR highlighted the importance of appropriate compensation for appraisers. They stated that fair and reasonable compensation is critical to attracting and retaining high-quality appraisers, as well as allowing them to invest in their skills and education. However, the current system lacks transparency when it comes to reporting appraiser compensation. The issue lies in the TILA-RESPA Integrated Disclosures (TRID) form, which requires an aggregate appraisal fee to be reported. This means that the fee...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Subcommittee / Appraisers News

February 28, 2024

Recap of the 4th ASC Appraisal Bias Hearing

On February 13th, 2024, the fourth ASC appraisal bias hearing took place. For those who were unable to attend, the video of the hearing has been included below. The hearing was a crucial event for the appraisal industry, and it is important for all appraisers to be aware of the discussions and topics addressed. The panel of witnesses included: David Bunton, President, The Appraisal Foundation E.C. Neelly IV, Executive Director, Mississippi Real Estate Appraisal Board Maureen Sweeney, Principal, Maureen Sweeney, Real Estate Appraiser Ltd. Melissa Tran, Director, Texas Appraiser Licensing and Certification Board Jillian White, Chief Executive Officer, Appraisal Insights...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisal Subcommittee

February 21, 2024

It’s Just Responsible Journalism!

Not reporting complete and accurate information is nothing more than irresponsible journalism! The local television station WWBT, NBC 12 in the Richmond market is airing a story on Thursday February 22 during the 6 pm News Broadcast, about racial bias in real estate appraisals. We know this is not a new topic and previous stories that have aired have been extremely one sided and not from the appraiser’s perspective. VaCAP was not contacted for information, nor were any appraisers that we know. We have seen the negative impact this type of story has on our profession and we need your...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / Trending / Uniform Standards of Professional Appraisal Practice