American Society of Appraisers - Appraisers Blogs

The Great Debate on Appraisal Fees

Isaac Peck — Mon, 28 Oct 2024 12:30:09 +0000

She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee paid by the borrower, which prompted her to stop working with AMCs because of the lack of transparency. The appraisal industry is abuzz with a discussion about appraisal fees. The Consumer Financial Protection Bureau (CFPB) recently issued a Request for Information Regarding Fees Imposed in Residential Mortgage Transactions [Docket No. CFPB-2024-0021] in which it solicited feedback from the public and industry stakeholders on the fees charged to consumers by mortgage providers and related settlement services. The CFPB framed it as...

Appraisal Regulation Compliance Council Exposes… The Appraisal Regulation Compliance Council published a detailed breakdown to the CFPB, which showed the median average AMC fee being…
AMCs Billing Scheme, Hidden Profits & Deceptive Practices Appraisers who do not agree to their hidden billing methods are excluded from the majority of the GSE lending marketplace…
Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…

The post The Great Debate on Appraisal Fees appeared on Appraisers Blogs.

Insights from CFPB’s Public Comment Period

AppraisersBlogs — Tue, 13 Aug 2024 12:30:20 +0000

The comment period on the Consumer Financial Protection Bureau’s (CFPB) “Request for Information Regarding Fees Imposed in Residential Mortgage Transactions” concluded on August 2, 2024, with a total of 959 comments received. Upon reviewing some of these submissions, several noteworthy perspectives emerged regarding appraisal fees and the role of Appraisal Management Companies (AMCs). The National Association of REALTORS® (NAR) highlighted the lack of transparency surrounding AMC fees, which are often bundled together with the actual appraisal fee on the Closing Disclosure (CD). This opaque structure prevents consumers from understanding the true cost of the appraisal service and hinders their ability...

Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…
The Illogical Reality of Mortgage Appraisal Reviews Reforming the appraisal review process is essential to maintaining the integrity of the real estate market and protecting consumers and…
First the Borrower Fee. Now the Appraiser… Two lawsuits place Class Valuation’s fee transparency and staff-appraiser compensation practices under federal scrutiny. Most appraisal disputes examine only one…

The post Insights from CFPB’s Public Comment Period appeared on Appraisers Blogs.

The New & Improved Fannie Mae “FRAUDULATOR 2.0”

Michael Ford — Mon, 15 May 2023 12:30:53 +0000

Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie Mae is increasingly being referred to by some, if not many American Appraisers as The Fraudulator / Underwriter 2.0 (FU-2). To be clear it is not limited to the Collateral Underwriter (CU & CU-2) software. The new Fraudulator (FU-2) combines the CU products with their numerous improper uses. The end result of which includes OUTRIGHT FRAUD being perpetrated against banks via the repurchase letters Fannie Mae now issues on a quota based system rather than because of legitimate appraisal defects....

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…
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…
AVMs... Garbage In, Garbage Out Garbage data in means garbage results out every time! It's no secret that AVMs have been a thorn in the…

The post The New & Improved Fannie Mae “FRAUDULATOR 2.0” appeared on Appraisers Blogs.

ASA Concerned About the Expansion of FNMA Appraisal Waiver Program

AppraisersBlogs — Thu, 06 Apr 2023 12:30:48 +0000

In response to the Federal Housing Finance Agency’s (FHFA) decision to allow Fannie Mae to expand its appraisal waiver program, the American Society of Appraisers (ASA) has released an op-ed by ASA’s Strategic Partnership Officer, John D. Russell, JD, criticizing this move. ASA believes that by expanding the appraisal waiver program and relying on data and models for mortgage lending instead of human interaction, Fannie Mae is leaving behind two very important aspects: safety and soundness as well as consumer protection. The fear is that overvaluation may occur due to a reliance on models which always try to chase value...

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…
No Appraisals Required. The End of Appraisers? No appraisal may be required in the future! Fannie Mae took a direct shot at appraisers with the announcement of…
Eroding Consumer Protection Waiving appraisal requirements on residential homes could erode consumer protection, stall attempts to create diversity in the profession... The recent…

The post ASA Concerned About the Expansion of FNMA Appraisal Waiver Program appeared on Appraisers Blogs.

How to Destroy the Appraisal Profession

Mark Skapinetz — Mon, 16 May 2022 12:30:42 +0000

Anytime the government gets involved in an issue, it tends to have more adverse effects than positive ones. It makes things worse when they only have their plan in mind and NOT the FACTS from the people they are about to hurt. This is especially true in the Real Estate Appraisal profession and the newly introduced H.R. Bill entitled: Fair Appraisal and Inequity Reform Act of 2022. It’s essential to bring some information that not one person in the government or the people they are getting information from is talking about. First let’s step into my time machine and go...

The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…
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…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

The post How to Destroy the Appraisal Profession appeared on Appraisers Blogs.

Secret HUD Meeting on ‘Appraiser Bias’

Dave Towne — Tue, 03 Aug 2021 12:30:53 +0000

The exclusion of the appraisal profession from events looking at valuation bias sends the message – intentional or not – that the input of appraisers is unwanted by those seeking to address issues relating to valuation bias… This was in a news release put out on Aug. 2, 2021 by the American Society of Appraisers which reveals the ‘secrecy’ behind the government’s efforts to attempt to continually help smear real estate appraisers: “RESTON, Va., Aug. 2, 2021 /PRNewswire/ –The Department of Housing and Urban Development (HUD) held a virtual event today looking at bias issues surrounding the home valuation process....

How to Destroy the Appraisal Profession Anytime the government gets involved in an issue, it tends to have more adverse effects than positive ones. It makes…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…

The post Secret HUD Meeting on ‘Appraiser Bias’ appeared on Appraisers Blogs.

COVID-19 Temporary Appraisal Guidelines

VaCAP Board — Sun, 29 Mar 2020 12:30:03 +0000

Fannie and Freddie are giving preference to desktop appraisals over exterior appraisals, which quite frankly, is completely backwards from what most appraisers believe to be a more reliable appraisal. HUD and the Veterans Administration, on the other hand prefer exterior appraisals…

Occupational Licensing Used to Intimidate It provides no better illustration of how occupational licensing promotes groupthink and intolerance to differing viewpoints... CALIFORNIA: WHERE RIGOROUS INQUIRY…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Don Machholz Passing Folks, yesterday, August 11, I received the following notice about Don Machholz from a California appraiser, who requested this be…

The post COVID-19 Temporary Appraisal Guidelines appeared on Appraisers Blogs.

Let Appraisers Train Their Own Inspectors

Guest Author — Mon, 25 Mar 2019 12:30:15 +0000

If we are to make a third party inspector liable for the data they provide… FNMA’s recent newsletter states that a third party inspector should be hired to deliver photos, sketches, etc about a property to them. After their review, if they believe an appraisal is needed then they can forward that information to the appraiser and a desktop can be performed with ease and accuracy. In their words, this is no different than an appraiser relying upon other forms of data in the report such as public records, MLS, etc. I really do appreciate the perspective of some who...

AMC Asking Appraisers to Violate State Law ...inducing another to violate... Appraisers Beware! VaCAP has been informed an email has been sent to Virginia Appraisers from Xome…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

The post Let Appraisers Train Their Own Inspectors appeared on Appraisers Blogs.

Appraisers Disappointed at Federal Agencies

Michael Ford — Tue, 26 Feb 2019 13:30:22 +0000

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...

AGA Objects De Minimis Increase Proposal We object to the proposal to increase the de minimis threshold at which no appraisal is required... Sirs: The American…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

The post Appraisers Disappointed at Federal Agencies appeared on Appraisers Blogs.

Feds Deny Public Hearing

VaCAP Board — Mon, 25 Feb 2019 13:30:13 +0000

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...

Let's Get Rid of Appraisers. What Could Go Wrong? Why would regulators fundamentally weaken bank underwriting standards? Appraisers Warned The World In The Late 1990s And No One Listened.…
AGA Objects De Minimis Increase Proposal We object to the proposal to increase the de minimis threshold at which no appraisal is required... Sirs: The American…
Standing With Us Protecting Consumers! ...average costs and appraisal turnaround times are minimal... VaCAP joins 29 State Appraisal Organizations in opposing an increase in the…

The post Feds Deny Public Hearing appeared on Appraisers Blogs.

Standing With Us Protecting Consumers!

VaCAP Board — Fri, 15 Feb 2019 13:30:57 +0000

…average costs and appraisal turnaround times are minimal… VaCAP joins 29 State Appraisal Organizations in opposing an increase in the appraisal threshold. Behind the scenes, VaCAP and the Network have been working with Constantine Cannon LLP on drafting a formal comment on the proposed appraisal threshold increase from $250,000 to $400,000. The result is very thorough and factual. Each state organization contributed facts, figures and scenarios and Constantine Cannon compiled it all referencing current law and prior attempts of increasing the threshold. VaCAP is proud of the work that has been accomplished and proud to be part of a Network...

AGA Objects De Minimis Increase Proposal We object to the proposal to increase the de minimis threshold at which no appraisal is required... Sirs: The American…
How to Destroy the Appraisal Profession Anytime the government gets involved in an issue, it tends to have more adverse effects than positive ones. It makes…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…

The post Standing With Us Protecting Consumers! appeared on Appraisers Blogs.

Road to Perdition

Michael Ford — Thu, 30 Aug 2018 12:30:01 +0000

It looks like USPAP and IVS are finally going to teach the world to sing in perfect harmony. Didn’t Coca Cola already do that? It’s been awhile since I’ve harped about the International Valuation Standards (IVS) and the International Valuation Standards Council, or their inappropriate influence on USPAP. Perdition Road paving compliments of The Appraisal Foundation under sub contract to MISMO. Unnecessary Bridging from USPAP to IVS provided by TAF. For those unfamiliar with what (IVS) or who (IVSC) they are, the following link may help. Scroll down to the corporate sponsors section. THIS is who the ‘international sponsors’ are....

Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

The post Road to Perdition appeared on Appraisers Blogs.

The Public Trust – A Failed Goal?

George Dell — Fri, 24 Aug 2018 12:30:07 +0000

Presumably, "public trust" is the foundational test. Have our institutions, rules, regulations, standards, and social expectations failed us? The purpose of the Uniform Standards of Professional Appraisal Practice (USPAP) is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. Preamble 2018-2019 Our mission is to foster the public trust of our members and the appraisal profession through compliance with the highest levels of ethical and professional standards. The American Society of Appraisers Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. The Appraisal Institute Some ten years ago, financial...

Financial Ecosystem Changes Treasury report calling for a more digitalized mortgage process, including the use of AVMs, hybrid appraisals & appraisal waivers... A…
Round and Round! Round and Round, what comes around goes around & 10 years later it’s happening again. I’m a 43-year-old guy and…
Just Because You're Paranoid Doesn't Mean They… It appears the government sees the future of appraising as one driven largely by Automated Valuation Models, Hybrids, and outright…

The post The Public Trust – A Failed Goal? appeared on Appraisers Blogs.

Financial Ecosystem Changes

VaCAP Board — Sat, 04 Aug 2018 12:30:46 +0000

Treasury report calling for a more digitalized mortgage process, including the use of AVMs, hybrid appraisals & appraisal waivers… A few days ago, HousingWire reported the Trump Administration calling for sweeping changes to the financial ecosystem. In short, the article references a report by the Department of the Treasury calling for a more digitalized mortgage process, including the use of AVMs, hybrid appraisals and appraisal waivers. The HousingWire article has a link to the Treasury Report, which is 222 pages or you can click here to read the report. VaCAP has received a copy of the ASA’s response to the Treasury Report....

Just Because You're Paranoid Doesn't Mean They… It appears the government sees the future of appraising as one driven largely by Automated Valuation Models, Hybrids, and outright…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

The post Financial Ecosystem Changes appeared on Appraisers Blogs.

Fix It Before Replacing It!

VaCAP Board — Thu, 17 May 2018 12:30:17 +0000

Fix what is broken before replacing the product. Appraisers are talented professionals that know how to take mass amounts of data, filter through it, analyze & make sense of it all. Utilize the talents of the 70,000 plus experienced, licensed professionals & don’t short change the consumer… Yesterday was the National Association of Realtors Real Property Valuation Forum: Rethinking Real Estate Valuations: Alternatives to Traditional Appraisals. First, VaCAP was well represented with 8 members present from all over the state. There were many of our Network colleagues there as well from all over the country. Thank you for taking the...

Garbage Replacing Appraisers? If appraisers were to embrace such garbage, would the demise of this technology be sooner? ...14.53 million dollar loss in…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

The post Fix It Before Replacing It! appeared on Appraisers Blogs.

Watering Down FRT Definition

John Russel — Mon, 02 Apr 2018 12:30:40 +0000

Definition of FRT simply does not reflect the majority of the mortgage lending environment… So what exactly is a “federally related transaction”, or FRT for short? Wait, that’s not the right question. Let’s start here: What is NOT an FRT? It’s not a mortgage loan insured by the Federal Housing Administration. It’s not lending underpinned by the Department of Veterans’ Affairs home loan program. It certainly isn’t a loan that’s sold to a Government Sponsored Enterprise (or GSE), like Fannie Mae or Freddie Mac. Just considering a loan for sale to those two entities is enough to fall outside the...

Appraisal Waivers TriStar Bank’s request for appraisal waivers: The Appraisal Subcommittee has reached out to the Network Coalitions and has requested appraisers…
Another Appraisal Waiver Request Another Appraisal Waiver request has been sent to the ASC. This time from City Bank and Trust in Oklahoma. The…
Another Threat Looming Senate Bill raising de minimus value to $400,000 will also waive appraisals in certain situations in rural areas Folks, while the…

The post Watering Down FRT Definition appeared on Appraisers Blogs.

TAF Has Lost Its Way

Michael Ford — Thu, 22 Mar 2018 12:30:21 +0000

How can TAF claim to be any kind of authority, let alone "THE foremost authority" for any of the other disciplines? I personally like and respect the individuals I’ve met from TAF. My strenuous disagreement with TAF are the policies and actions. Not the individuals. The opening or introductory remarks on The Appraisal Foundation’s web page state: The Appraisal Foundation (Foundation) is the nation’s foremost authority on the valuation profession [emphasis added]. The organization sets the Congressionally-authorized standards and qualifications for real estate appraisers and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals. This work advances...

It’s Time to STOP the Foolishness STOP the constant parsing changes in all areas of USPAP I encourage ALL appraisers in the DC Metro area to…
Appraisal Standards Should Age Like Fine Wine Changes in Appraisal Standards?We have barely got into the "New" 2016-2017 copy of USPAP and the ASB is meeting on…
TAF / ASB Challenge USPAP 30 days after implementation of the last changes, ASB/TAF is already admitting they think the current USPAP is inadequate and…

The post TAF Has Lost Its Way appeared on Appraisers Blogs.

Virginia is NOT Playing Around!

VaCAP Board — Wed, 17 May 2017 12:30:53 +0000

Two AMCs Disciplined by VREAB… At the May 16, 2017, Virginia Real Estate Appraisers Board Meeting two AMC’s were disciplined by the Board. SettlementOne Valuation Corporation was disciplined in Mississippi, Illinois and Pennsylvania, all for unlicensed activity within those states. SettlementOne was required to report the disciplinary action to Virginia within 30 days, which they did not. The Virginia Real Estate Appraisers Board imposed a $2,500 monetary penalty for these violations of the Boards Regulations. Dart Appraisal was disciplined in Minnesota for providing an estimate of value on the engagement letter to the appraiser. Dart Appraisal was required to report...

The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…

The post Virginia is NOT Playing Around! appeared on Appraisers Blogs.

Appraisers’ Voice Just Got Louder

VaCAP Board — Fri, 21 Apr 2017 12:30:47 +0000

ASA and NAIFA Agree to Move Forward with Merger Consideration The American Society of Appraisers (ASA), the original multidisciplinary valuation society, and the National Association of Independent Fee Appraisers (NAIFA), the leading voice for independent professional real estate appraisers, announced on April 18, 2017, they have reached an agreement to move forward with a Memorandum of Understanding leading to the merger of NAIFA with ASA. Boards for both organizations will provide details to their memberships in upcoming weeks for final consideration and approval. The merger will add to ASA’s nearly 5,000 multidiscipline credentialed valuation professionals in over 75 countries and...

Appraisal Alternatives Computers eliminating “boots on the ground” residential appraisers. An historian once quipped, “I cannot predict the future, but give me…
You Are Not Alone - AGA How many appraisers do you know that are enthusiastic about the future of our profession? How many appraisers believe that…
Details of the New AMC Law No paid lobbyist, just appraisers talking with the Senators and Delegates about the abuses of some AMCs... Governor McAuliffe signed…

The post Appraisers’ Voice Just Got Louder appeared on Appraisers Blogs.

Clear Capital’s Push For Hybrid VA Appraisals

AppraisersBlogs — Mon, 10 Apr 2017 12:30:41 +0000

Clear Capital suggests that the VA consider the use of a desktop appraisal On April 4, 2017, the House Committee on Veterans Affairs held a hearing on “Assessing VA Approved Appraisers And How To Improve The Program For The 21st Century.” The hearing was designed to “assess VA’s current appraisal process, as well as specific difficulties for timely appraisals in highly rural areas”, as well as to investigate possible technological solutions to mitigate timeliness issues. Much of the hearing focused on two areas: The requirements for becoming a member of the VA appraiser panel, and the baseline requirements for comparable...

Hybrid Appraisal Products & Public Trust Are busy appraisers doing Hybrid Appraisal products? Appraisers, The article titled First American launches new appraisal solutions technology popped in…
Appraisers Are NOT Invited! "No room” for any additional expert witnesses representing appraisers' interests... Who are the Valuation Professionals? Appraisers are unbiased and impartial…
Modernizing Appraisals & Being Stuck in 1989 Modernizing Appraisals: It seems we're stuck in 1989... On November 16, 2016, the Housing and Insurance Subcommitte held a hearing…

The post Clear Capital’s Push For Hybrid VA Appraisals appeared on Appraisers Blogs.

American Society of Appraisers - Appraisers Blogs

The Great Debate on Appraisal Fees

Related Posts:

Insights from CFPB’s Public Comment Period

Related Posts:

The New & Improved Fannie Mae “FRAUDULATOR 2.0”

Related Posts:

ASA Concerned About the Expansion of FNMA Appraisal Waiver Program

Related Posts:

How to Destroy the Appraisal Profession

Related Posts:

Secret HUD Meeting on ‘Appraiser Bias’

Related Posts:

COVID-19 Temporary Appraisal Guidelines

Related Posts:

Let Appraisers Train Their Own Inspectors

Related Posts:

Appraisers Disappointed at Federal Agencies

Related Posts:

Feds Deny Public Hearing

Related Posts:

Standing With Us Protecting Consumers!

Related Posts:

Road to Perdition

Related Posts:

The Public Trust – A Failed Goal?

Related Posts:

Financial Ecosystem Changes

Related Posts:

Fix It Before Replacing It!

Related Posts:

Watering Down FRT Definition

Related Posts:

TAF Has Lost Its Way

Related Posts:

Virginia is NOT Playing Around!

Related Posts:

Appraisers’ Voice Just Got Louder

Related Posts:

Clear Capital’s Push For Hybrid VA Appraisals

Related Posts: