Tagged: appraisers

2

Cost Approach Required for USDA Condo Appraisals

Appraisers, New written instructions published by USDA ‘require’ a COST APPROACH for the condo being appraised. Interestingly, the pre-printed 1073 Form has NO PLACE on it to complete a Cost Approach – for good reason! While not impossible, it would be extraordinarily difficult to calculate a CA for a typical condo in a multi-unit building, without supporting documentation and a gigantic pile of cost info for the various components. And in fact, appraiser’s certification #4 on the 1073 form says that neither a Cost Approach nor an Income Approach are included unless the appraiser considers them necessary to arrive at a...

Appraisal / Appraisal News / Appraisers News / The US Department of Agriculture / USDA

3

If I Cannot Support a Small Adjustment, I Just do not Make it

I am more circumspect about the adjustments I make. The most feared date in the appraisal industry has come. January 26, 2015 arrived with much trepidation and trembling amongst myself and my appraiser colleagues. The day of the Collateral Underwriter (CU) had finally arrived. Yet, it turned out to be a pretty typical day for most. We are now over a week removed from the CU and I have yet to receive even one CU-related revision request. I guess that means one of two things; either I am an incredibly talented appraiser who uses all the best comps and supports every one...

Appraisal / Appraisal News / Appraisal Quality Monitoring / Appraisers News / AQM / Collateral Underwriter

5

Fannie Mae ‘Lender Letter’ About the CU process

Lender Letter explains CU process Appraisers, The latest FNMA Lender Letter was released on February 2, 2015 (see PDF below). You really should print and read this new Lender Letter. It attempts to smooth over lots of ruffled feathers among appraisers, AMC’s, Lenders, Underwriters, etc. To be honest, I find a bunch of ‘pipe dream’ info in this document. Items such as: CU is a Fannie Mae–only risk management tool. ==> Freddie Mac is said to be working to implement this or a similar process very soon CU does not accept or reject appraisal reports or characterize an appraisal as “good” or “bad.”...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Quality Monitoring / Appraisers News

Appraisers join and fight back 5

Appraisers, Pull Together and Fight Back!

Dear Real Estate Appraisers of America, To date, each of you have invested years of your life and tens of thousands of dollars to create your real estate appraisal career. No small feat. You have sacrificed greatly to get to where you are. And, now you are feeling as if everything you have worked so hard for is being stolen away from you. Tragically, over the last 5 years there has been a whirlwind of events that has resulted in a very frustrating situation for appraisers. AMCs who have been permitted to increase profits by driving down appraiser fees and...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Customary & Reasonable Fees

7

Other Appraisers Peer Reports

Now Appraisers Must Conform to the Opinions of Other Appraisers/Unknown Persons of Unknown Competence! Appraisers, Many of you know I scan various sources for appraiser/appraisal related info, and send out items I think are important. Well, today Collateral Underwriter (the extraordinarily SECRET process developed by FNMA and given ONLY to LENDERS for report review) started. As predicted by many appraisers, it already generated responses appraisers are forced to deal with, primarily because the reporting appraiser’s data (in the report) is different from “peer” reports. As a poster to one of the forums said:

Appraisal / Appraisal News / Appraisal Quality Monitoring / Appraisers News / AQM / Collateral Underwriter

3

Dave Biggers, You Owe Me an Apology

Normally, I like Dave Biggers. I think a la mode — like other appraisal software companies — has always been (and will likely always be) an advocate for appraisers. I am not saying any of that has changed, but I feel like Mr. Biggers owes me, and all appraisers, an apology. Ever since I first heard of Collateral Underwriting (CU), I have been a bit — and at times, much — overwhelmed at what it might mean to me and my peers. Frankly, there have been times that I have been downright scared of what CU might do to my thriving appraisal...

a la mode / Appraisal / Appraisal News / Appraisal Quality Monitoring / Appraisal Software / Appraisers News

USCRAP destruction of appraising 9

USCRAP – Systematic Destruction of Residential Appraising

We Studied USCRAP… Not so long ago I had multiple clients. They would call me if they needed my professional services and trusted me to perform a satisfactory service. I’m a streetwalker. I drive and walk the streets looking at houses and photographing them from the street (outcalls) and sometimes going inside to determine condition (in calls). This worked well for many years until the Federal Government got involved in the late 1980s. The Feds discovered that a few streetwalkers had exaggerated their claims of professionalism and service and declared in the 1989 DIARRHEA that all streetwalkers must be licensed...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Home Valuation Code of Conduct

1

Mortgage Applications up by 49%

Appraisers, The Mortgage Bankers Association tracks applications and publishes info weekly.  There has been an incredible jump in applications by +49%!  Huge! Means we’ll start getting busy in about a week or so. Click here for more info. For appraisers who do FHA assignments, it’s likely that those assignments will be fewer now through January 25. On the 26th, the Mortgage Insurance Premium cost applying to FHA backed loans will drop significantly. This will allow more borrowers to qualify for FHA loans. With this change, FHA has allowed lenders to ‘drop’ a previously accepted Case Number from the current loan doc, and are...

Appraisal / Appraisal News / Appraisers News / Federal Housing Administration / FHA

Census Tract as Neighborhood Boundaries in Appraising 3

Census Tracts & Appraising

CENSUS TRACTS are based primarily on POPULATION density… The latest ‘buzz word’ in our profession is an indication from Fannie Mae that as of Jan. 26, 2015, their Collateral Underwriter electronic review software (made available only to Lenders/AMC’s for 1004 and 1073 reports)  will be able to compare your report info to other property reports and data narrowed down to a local CENSUS TRACT. In my previous messages, I’ve asked a basic question: When’s the last time you actually researched comparable sales or other property info based around local CENSUS TRACTS? I would guess for the vast majority of (residential)...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Quality Monitoring / Appraisers News

Fannie Mae Claims the CU Process Will Improve Appraisals 5

CU Process Will Improve Appraisals? A Pipedream or Reality?

Fannie Mae Claims the CU Process Will “Improve Appraisals.” A Pipedream or Reality? Appraisers, A few days ago, I watched the FNMA eLearning webinar “Introduction to CU” video showing how their new Collateral Underwriter will be implemented, starting on Jan. 26, 2015, applying to 1004 and 1073 Reports (initially). You really should watch this also!  CU applies to FANNIE MAE only; FreddieMac, VA, FHA, USDA are not involved at this time. Click this link, and you’ll find the link to the video ½ way down on the left. I captured a few screen shots of their presentation to help explain...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Quality Monitoring / Appraisers News

xml sitemap
blank