Tagged: AIR

Borrowers With Good Credit Scores to Foot the Bill for Higher Risk Borrowers 24

Borrowers With Good Credit Scores to Foot the Bill for Higher Risk Borrowers

It is disheartening to think that those of us who have worked hard to maintain good credit scores will now be penalized with higher mortgage rates and fees, just so the government can subsidize people with riskier credit ratings. It’s no surprise that the Federal Housing Finance Agency’s (FHFA) new rule forcing homebuyers with good credit scores to pay higher mortgage rates and fees is causing a stir. The Federal Housing Finance Agency’s push for affordable housing is admirable, but it should not come at the expense of those with good credit scores who are trying to buy or refinance...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Federal Housing Finance Agency / FHFA

Sale Price versus Appraised Value Disconnect 8

Sale Price vs Appraised Value Disconnect

How can it be said that valuing a property lower than its eventual sale price based on current market evidence is tantamount to BIAS?  The article titled “FHFA Data Fueling Looks into Appraisal Bias” was in the Inside Mortgage Finance Publications e-newsletter on 4/06/23. The Federal Housing Finance Agency is a is a critical provider of the data necessary for oversight, enforcement and research, FHFA Director Sandra Thompson noted during a discussion in late March. According to aggregate statistics from the Uniform Appraisal Dataset released by the FHFA, roughly 57% of appraisals were above the contract price in 2021. Just...

Appraisal / Appraisal News / Appraisers News / CFPB / Consumer Financial Protection Bureau / Federal Housing Finance Agency

HUD Hands $54 Million to Nonprofits in Quest to Cow Appraisers 17

HUD’s Private Inquisitors Will Chill Protected Speech of Appraisers

HUD awarded $54 million to 182 nonprofits to serve as posses in a a Spanish Inquisition-style drive. The deep pockets of the federal government will be used to help the nonprofits chill the protected First Amendment rights of appraisers to develop disinterested opinions of value of the properties they appraise.  In the early 1990s, the Texas Legislature established an unusual nonprofit known as the Boll Weevil Eradication Foundation. The times were dire. A near-biblical plague of weevils had descended on the state’s cotton crop. So, state lawmakers granted the private organization the powers of government to combat the malevolent creatures....

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

Dear Representative, FNMA Has Gone Rogue! 87

Dear Representative, FNMA Has Gone Rogue!

Dear representative, waiving/eliminating property appraisal for lending purposes is wanton recklessness. Fannie Mae’s decision to waive/eliminate property appraisal for lending purposes is nothing more than wanton recklessness that could have serious repercussions in the future. The truth of the matter is that appraisals are an essential part of any mortgage transaction and should not be taken lightly or eliminated without due consideration. Without them, there can be no assurance as to whether a homebuyer will get what they pay for or if lenders will make bad investments with their money. In short, waiving/eliminating property appraisal requirements puts everyone at risk...

Appraisal / Appraisal News / Appraisers News / Dodd-Frank Act / C&R Fees / Fannie Mae - Freddie Mac / Political Action

AQB Initial Fair Housing Course 11

AQB Initial Fair Housing Course

Mandatory completion of an initial fair housing course lasting 7 hours by January 1st 2025, as well as 4 additional hours every renewal cycle thereafter.  Recently, the Appraiser Qualifications Board (AQB) has proposed new requirements for those looking to become an appraiser or renew their certification/license. These include mandatory completion of an initial fair housing course lasting seven hours by January 1st 2025, as well as four additional hours every renewal cycle thereafter if this becomes standard practice. The following is taken right out of the new exposure draft on real property appraiser qualifications criteria. “The core goal is to...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / AQB / The Appraiser Qualifications Board

How U.S. Home Valuations Are Being Subverted 21

How U.S. Home Valuations Are Being Subverted

At the crossroads of it all is a campaign to weaken or eliminate valuations… The nonprofit is now exploring ways it can set standards for automated valuations… Expect greater distortions from Freddie and Fannie’s plodding and committee-driven foray into automated valuations.  Sometimes when the hair on the back of your neck stands up, there’s a reason for it. The nation’s $11 trillion mortgage market has been nationalized. This coup occurred in broad daylight and gradually. With Freddie and Fannie now in their second decade in federal conservatorship, the prospect that they will ever again be subjected to the watchful eye...

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

Slew of Negative Reviews for Appraiser Miller 45

Slew of Negative Reviews for Appraiser Miller

Her Google & Yelp business pages have received a slew of negative reviews from people living as far away as New Zealand! As real estate appraisers, we understand the importance of accuracy and fairness in our work. We are expected to perform valuation services competently and in a manner that is independent, impartial and objective. We also know how important it is to uphold ethical standards in order to protect ourselves and our clients from potential legal action. The recent case of Austin v Miller serves as a reminder that even when we do our best, things can still go...

Appraisal / Appraisal News / Appraisers News / Trending

Marin City Discrimination Case Settled 30

Marin City Discrimination Case Settled

It’s unfortunate that this case was SETTLED in the way it was, because in reality, nothing about racial discrimination and disparate treatment was actually proven at a full trial…  The first case that’s been adjudicated claiming appraiser discrimination has been SETTLED by the defendant appraiser and the plaintiffs, with the judge “dismissing all claims with prejudice”, meaning it cannot be re-opened by the plaintiffs, but it can be appealed to a higher court by the defendant. From what I know, this case never went to a full trial. Motions were only presented to the presiding judge, who made this ruling....

Appraisal / Appraisal News / Appraisers News / Trending

Poke-and-Sniff: How U.S. Regulators Became Disease Vectors 6

Poke-and-Sniff: How U.S. Regulators Became Disease Vectors

  Poke-and-Sniff… Once federal bureaucrats embrace a destructive practice, it can take a lifetime to correct it. When government tries to fix a problem, it often makes the problem worse or creates a new one. The German economist Horst Siebert called this phenomenon the “Cobra Effect.” Occupational licensees and those in heavily regulated industries will recognize the pattern immediately. American high schools routinely teach Upton Sinclair’s novel “The Jungle.” Its publication more than a century ago led to the quintessential success story for federal regulation. But once regulators began doing something to fix the problem portrayed in Sinclair’s fictional work,...

Appraisal / Appraisal News / Appraisers News

Exactly How Are Property Data Collectors Professionally Trained? 17

Exactly How Are Property Data Collectors Professionally Trained?

Somebody explain to me exactly how Property Data Collectors are “professionally trained” per Fannie Mae directives. The fact is, Fannie Mae is explicitly working toward the elimination of appraisers for real property valuations. This is in their latest Selling Guide Announcement SEL-2023-02 to the Fannie Mae Selling Guide: Value acceptance + property data is a new option that utilizes property data collection by a third party who conducts interior and exterior data collection on the subject property. To ensure consumer protections, the lender must verify and be able to demonstrate that data collectors are vetted through an annual background check,...

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

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