by VaCAP Board · Published March 29, 2020 · Last modified March 23, 2021
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…
by Guest Author · Published March 28, 2020 · Last modified August 9, 2024
Property appraising can be a treacherous minefield of disinformation if you happen across the wrong type of seller. In most instances, the role we play should be straightforward. We’re a link in the chain, a functional part of the house buying process which is essential and relatively straightforward. We enter a property, value that property and facilitate lending based on our valuation. However, an issue can arise when the property seller wants to mask certain problems or prevent a lower, but accurate, valuation of their house. They can look to deceive and cover-up issues that may arise, meaning we must...
by Dave Towne · Published March 24, 2020 · Last modified June 13, 2024
Temporary Guidance From Fannie Mae… FNMA has issued temporary guidance on appraisal requirements, including allowing desktop & exterior-only appraisals… Folks, due to the ongoing COVID-19 national emergency, the GSE regulator FHFA and both GSE’s have issued new (temporary) guidance on Monday, March 23, 2020. These remain in effect through May 17, 2020, but could be extended due to the on-going situation. NOTE: I have seen nothing yet from FHA or VA. Appraisers (and AMCs) CANNOT modify assignments or reports without specific authorization from the lender client. Appraisers CAN choose to do, or not do, assignments under the inspection guidelines, and per directives...
by ICAP Board · Published March 22, 2020 · Last modified July 8, 2021
Under the order, “essential businesses” cover a wide variety of workers…Appraisers are considered an essential business… Illinois Governor Issues Stay-at-Home Order. Illinois Gov. J.B. Pritzker today issued a “stay at home” order for the entire state starting Saturday March 21, 2020, at 5 p.m. through April 7. The order encourages all “essential businesses and operations” to remain open. Appraisers are considered an essential business The order encourages all “essential businesses and operations” to remain open, but directs them to enforce six-foot social distancing for both employees and customers. Under the order, “essential businesses” cover a wide variety of workers, including...
by VaCAP Board · Published March 17, 2020 · Last modified July 8, 2021
Everyone, not just appraisers is getting bombarded with information on COVID-19. So much of the information differs, it is hard to know what is real, hype or hysteria. So much has been shared within the appraisal groups on social media that there are more conversations about COVID-19 then appraisals. VaCAP is a volunteer organization of appraiser professionals. We are not medical professionals and are just as confused as most of you. Each and every one of us is different. We have different levels of health and different people living in our homes; some may have compromised immune systems, some maybe...
by Dave Towne · Published March 13, 2020
…the ‘flipper’ realized that the list and contract price was way too high… I just saw an article titled “Realor.com now providing third-party home valuations” about Realtor.com now using a ‘new’ service to provide a home value. Just for grins, I thought I’d do this essay using one of my recent assignments for the case study, which was in Bellingham, WA. The home was undergoing renovations by a ‘flipper’, and it had a signed contract for a high $$ amount. The report was written ‘subject to’ completion of the repairs/renovations. During the initial inspection, the ‘flipper’ was present and doing...
by Frederick E Rossiter · Published March 9, 2020 · Last modified July 8, 2021
The industry needs to discuss the coronavirus issue and how to conduct inspections. I set up an inspection a few days ago using the Procedures & Protocols form below and this is how I handled it. I called the listing agent and tactfully told him that we had to discuss this Coronavirus issue … that I had a family member with a compromised health situation and that we had to presume the virus was already within our community. Then I explained to him that I inspect a lot of homes every week and that normally involves touching a lot of...
by Frederick E Rossiter · Published March 4, 2020 · Last modified April 28, 2023
A Black Swan has Appeared – Coronavirus will cause Our Next Recession In a previous post entitled The Black Swan published in August, 2019, I wrote, “though more common now, especially in Australia, Europe, and Asia, black swans (Cygnus atratus) were once thought to be almost extinct… so rare that a sighting of one was considered to be an unexpected, improbable event. Today, The Black Swan is a metaphor for an unpredictable, unforeseen, random event, typically one with extreme consequences. Today’s best technology cannot predict their cause or emergence. The only thing we know for certain is that someday, somewhere,...
by Peter Christensen · Published March 2, 2020 · Last modified March 4, 2020
Sharestates operates a crowdfunding platform that provides alternative mortgage lending secured by both residential and commercial real estate. Over the last 10 years, it has reported average annual returns for loan investors ranging from 9.24% to 11.02%. With returns like these, there is likely some loan risk – and Sharestates reports a current foreclosure rate of 2.44%. Following several of its foreclosures, Sharestates has filed professional negligence cases against about a dozen defendant appraisers, appraisal firms and appraisal management companies, blaming the loan losses on inflated appraisals. Last year, it lost one of those cases in a Nassau County, New...
by Guest Author · Published March 1, 2020 · Last modified February 7, 2022
If you watched the 2020 college football national championship contest, you probably weren’t thinking about investment properties as LSU handed Clemson a 42-25 whipping. But maybe you will during next year’s title game… Universities with big time college football programs also have valuable student housing. That was the finding of a recent report issued by CBRE. The commercial real estate giant discovered schools with high-profile football teams have experienced boosted enrollment in recent years. The influx causes student housing demand to increase, and along with it, property values. Newer student housing builds resemble traditional multifamily in terms of function and...
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