contract price - Appraisers Blogs

Objectionable Valuations Become Hate Speech, Inflating Home Prices

Jeremy Bagott — Wed, 21 Aug 2024 12:30:33 +0000

The censorship, scapegoating and sidelining of appraisers has done real damage to borrowers and the purchasers of bonds… Attacks on free speech are on the rise in the English-speaking world. A bill introduced in Canada to thwart online “anarchy and lawlessness” would create a Canadian Ministry of Truth empowered to punish authors Ottawa politicians find problematic. In response to the worst rioting in Britain in years, about 4,000 people have reportedly been jailed for online thought crimes. U.K. Prime Minister Keir Starmer has vowed to prosecute anyone his government believes is whipping up people’s emotions on the Internet. There’s even...

HUD's Private Inquisitors Will Chill Protected… HUD awarded $54 million to 182 nonprofits to serve as posses in a a Spanish Inquisition-style drive. The deep pockets…
Biden's Remark on Home Values Sparks Backlash President Biden's recent comment about the discrepancy in home values between Black and white families has sparked backlash on social…
The Censorship of Appraisers Thirty-seven hours after President Biden took the oath of office, White House officials met with executives at social media companies.…

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The New Appraisal Profession – Why bother!

Guest Author — Thu, 04 Jan 2024 13:30:22 +0000

As long as the new normal is reporting the appraiser when you don’t like the value continues, why bother? In today’s new and unimproved appraisal atmosphere, any appraiser that does not “hit the number” is open to detrimental consequences. Buyers, Sellers, & Refinancers – The U.S. Government from the top down have provided the media and the public in general with so much toxic misinformation and encouragement that any appraiser doing their job, a job that can lead to lower values than expected, can now be turned to HUD itself, or a state appraisal board for racial bias. So, why...

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…
Promoting False "Racist Appraiser" Narrative Some Lenders promoting false "racist appraiser" narrative to optimize profits via AVMs Like most businesses lenders want to optimize their…
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…

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Reality of Today’s Appraisal Environment

Dave Towne — Fri, 27 Oct 2023 12:30:27 +0000

Proving discriminatory activity is hard, which is probably one reason HUD is dragging their collective feet in resolving the filed complaints. The real scourge of what’s been happening to appraisers for the past 5 years (yes, it started prior to the last election) has been revealed by Mr. Isaac Peck, in this article. You really need to read it, perhaps again, if you saw it come through your email on Wednesday October 25. Isaac has allowed me to “re-broadcast” his article. Yes, it’s a ‘sales promotion’ but it contains critical information appraisers need to know about. The first paragraph, contained...

Appraisers Pressured to Inflate Values Based on Race The real estate appraisal industry has long been subject to pressure from various sources, such as lenders, borrowers, and agents.…
HUD's Private Inquisitors Will Chill Protected… HUD awarded $54 million to 182 nonprofits to serve as posses in a a Spanish Inquisition-style drive. The deep pockets…
Racial Bias in Real Estate: Is it the Appraisers’ Fault? In the past year, the appraisal industry has been under attack from various academics who claim “racial bias” on the…

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Fannie Mae Filed a Complaint Against Me

AppraisersBlogs — Wed, 18 Oct 2023 12:30:39 +0000

An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a complaint against me with my state appraisal board. Here’s what happened. The Report In June of 2021, I completed an appraisal for a conventional purchase. The appraisal was ordered by an AMC on behalf of a lender. At that time, the real estate market was still being wildly affected by the COVID pandemic. Remote work was in full swing, and consumers were desperately seeking to get out of the cities. Prices for all types of residential properties were rising rapidly,...

Fannie's Loan Buyback Sophistry Relies on Modifying… “Many of the repurchase letters make no sense,” said the insider. If analysts don’t write enough defects on those files,…
FNMA Continued Effort to Get Rid of Appraisers Fannie Mae Continues Their Effort To Get Rid Of Appraisers: Sends “Tips” For the past year, Fannie Mae has sent…
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…

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NAR Concerns & Survey on Property Data Collectors

AppraisersBlogs — Mon, 05 Jun 2023 12:30:58 +0000

NAR is conducting a survey and wants to know if you have any concerns regarding property data collectors, if the appraisal fees are higher since the involvement of data collectors, if borrowers are made aware of a fee for the appraisal and a separate AMC fee or were the fees bundled, if the property data collector gave the impression that they were the appraiser, whether you have any safety and privacy concerns with the data collection process, quality of data collected and whether they need to be licensed… In a letter to the Federal Housing Finance Agency (FHFA) regarding appraisal...

Should Property Data Collectors Be Licensed? Should "property data collectors" who inspect properties and provide information to real estate appraisers be licensed by state appraiser boards?…
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…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…

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The Scam of Racial Discrimination by Appraisers

Michael Ford — Wed, 10 May 2023 12:30:40 +0000

More and more appraisers are retiring every day. Aside from that more and more are changing to lower liability careers. Eventually, the opportunists who have been promoting the scam of racial discrimination by appraisers such as career politicians, and ‘anti-discrimination’ software hucksters like Black Knight will be shown to be what they truly are. Recently, a highly respected appraiser who is also a senior designated member of a well-known national professional peer association, wrote an article about a new proposed law in New York ostensibly targeting New York appraisers. Mr. Bagott’s article had an unusual amount of hyperbole within it...

Why is Only One Side of This Story Being Told? There are always two sides to every story; however, understanding is a three-edged sword: your side, their side, and the…
HUD Dismisses Claims Alleging Racism ...white America (government) keeps trying to 'fix' Black People who are not broken in the first place! We’ve all heard…
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…

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Woke ‘Bounty’ Bill Will Chill Speech of New York Appraisers

Jeremy Bagott — Wed, 10 May 2023 11:45:10 +0000

A bill being crafted by the New York state Senate’s Finance Committee would, in effect, place a $2,000 bounty on the head of any heretical real estate appraiser in the Empire State who dares conclude a value that fails to satisfy a seller, serial refinancer or commissioned broker in a deal. Vulnerable buyers, who could be paying off inflated loans based on coerced values, would simply have to live with it. If enacted, the bill would authorize fines to be levied on appraisers for a new category of thoughtcrime – something called “appraisal discrimination.” Half the proceeds from the fines...

HUD's Private Inquisitors Will Chill Protected… HUD awarded $54 million to 182 nonprofits to serve as posses in a a Spanish Inquisition-style drive. The deep pockets…
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…
Low Appraised Value = Racial Bias? When the appraised value didn’t meet the sale price, the first assumption was that the appraiser conspired to lower the…

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Sale Price vs Appraised Value Disconnect

Dave Towne — Mon, 10 Apr 2023 12:30:15 +0000

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...

A Low Appraisal is Now a Bad Appraisal A low appraisal is now a bad appraisal. Well, that's according to the headline. The article does not stress ‘bad.’…
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…

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Under-Valuations Unrelated to Racial Bias

AppraisersBlogs — Tue, 21 Feb 2023 13:30:52 +0000

Under-valuations that more accurately reflect the homes’ “true” value as opposed to the contract price will also alert the buyer, not just the lender, that he or she may be over-paying, which often triggers a renegotiation… when the seller and buyer settle on a new price after the appraisal, the new lower price reduces credit risk, costs to the borrower, and ultimately results in greater wealth for the buyer. The AEI Housing Center recently released an analysis revealing that reports by the Federal Housing Finance Agency (FHFA) and by Brookings, attributing the greater prevalence of under-valuations in home purchase appraisals...

AEI Research Critique of Freddie Mac's Misleading… More great research from AEI. This is an analysis of Freddie Mac's misleading and basically defamatory paper on Appraisal Gap.…
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…
Census Data Used as Evidence for Bias I’ve previously written about how the various spear throwers at appraisers have used ‘census tract data’ in their assertions that…

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The Real Cause of the Home Value Gap Is the Income Gap

Mary Cummins — Mon, 13 Feb 2023 13:30:46 +0000

Blaming appraisers for the income gap will never solve the real underlying problem… Blaming appraisers for the income gap is as ridiculous as blaming appraisers for gun violence and gas prices. I watched the January 24, 2023 ASC Appraisal Bias hearing. Comments were requested after the hearing. This letter is my comment. I’ve been a real estate appraiser in Los Angeles, California for 40 years. I’ve been a licensed California Certified Residential Appraiser since licenses were first offered in 1993/1994. I’m a Latino woman who speaks English and Spanish. I appraise property in the diverse county of Los Angeles and...

HUD Secretary's Comments Evoke Folly of 1919 Sex Scandal Secretary Fudge launched into what sounded remarkably like discriminatory rhetoric: "The problem is who is in the appraisal industry. When…
ASC Blaming Appraisers The Appraisal Subcommittee, because they were directed to do so, has produced a report, which frankly and explicitly lays the…
HUD Dismisses Claims Alleging Racism ...white America (government) keeps trying to 'fix' Black People who are not broken in the first place! We’ve all heard…

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House Measurement by Property Data Collector Gone Wrong

Guest Author — Tue, 24 Jan 2023 13:30:12 +0000

The lender allowed an unlicensed property data collector give bad data to the appraiser… I work for this lender and they will not let my trainee inspect. The owners are now underwater by more than $100,000… I’m sad and I’m mad! I recently took on a measure job for a client who was questioning the square footage of their home. The couple bought the house at the height of the market last year. They paid 12% over list price to get the house. They put an appraisal waiver in the contract which meant they could not walk away if the...

Train Us and Trust Us The most weighted technique in most automated valuation programs comes down to one over-simplified formula, based on a guesstimation from…
Desktop Appraisals: Has The Devil Infiltrated The… Are desktop appraisals with third-party inspectors protecting the public, or are these products about to destroy the very profession I…
Appraisers Liable for Third Parties Data Ultimately the appraiser is responsible and liable for data collected by third parties. There has been a lot of discussion…

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Diatribes Against Appraisers

Dave Towne — Mon, 31 Oct 2022 12:30:39 +0000

What’s even more frustrating to me is none of the well-known appraiser organizations have offered any public rebuttal to any of these hit pieces, or explained how the appraisal process works as a way to defend appraisers… Census Tract data delineating RACE of the population is the only ammunition the people doing these hit pieces can use to attack appraisers. Appraisers, this is a long article but it’s important, as it reveals how you are being discredited in the work you do. Yet, ‘we’ must begin doing some introspection of what we are or have been doing, and make necessary...

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…
Census Tract Info Used Against Appraisers "Census tract boundaries do not necessarily define the subject's market..." Appraisers, of all the issues I’ve written about or questioned…
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…

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Violating Appraisal Independence Through Harassment, Intimidation & Coercion

Dave Towne — Wed, 15 Jun 2022 12:30:59 +0000

It shall be unlawful… to engage in any act or practice that violates appraisal independence… Appraisers, I have written the info below, which you may use if you desire to send to your clients and local real estate offices. It’s time for all appraisers to stand up to this kind of very adverse behavior, done by and promoted by many real estate brokers/agents across the US. I have been chastised multiple times by brokers, and in one instance that I know of, was excluded (by the lender who told me) from doing another assignment when I didn’t appraise a prior...

Low Appraised Value = Racial Bias? When the appraised value didn’t meet the sale price, the first assumption was that the appraiser conspired to lower the…
A Low Appraisal is Now a Bad Appraisal A low appraisal is now a bad appraisal. Well, that's according to the headline. The article does not stress ‘bad.’…
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…

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A Push to Artificially Raise Property Values

Dave Towne — Thu, 26 May 2022 12:30:21 +0000

Now the effort is AGAIN to have ‘us’ artificially raise property values. But the push this times seems to be “only for certain people. A new press release from Class Valuation, one of the largest US based AMCs, scampered across my office threshold on 5/17/22. You can read it here in this link: Class Valuation Appoints EVP Of Valuation Modernization – NMP But if you don’t want to muddle your brain cells very much, here are the highlights: A new CV Executive Vice President has been hired to “focus on removing bias from the “equation” in appraisals.” I added the...

PAVE May Pave Over Appraisers The blame game against appraisers is continuing the fast and furious start, evidenced by the PAVE report. A synopsis is…
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…
Sales Comparison Approach is Racist "...the modern appraisal industry perpetuates racial inequality through its continued use of the “sales comparison approach”... the sales comparison approach…

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A New ‘Standard’ for ROV Requests

Dave Towne — Tue, 21 Dec 2021 13:30:55 +0000

Since beginning using this Standard, I have had ZERO ROV requests. Appraisers, the latest ‘buzzword’ around appraising is Standard. We’ve got to have a Standard for measuring a subject dwelling, even though the comparable GLA reported figure may have been measured far differently from the new soon-to-be mandated Standard. Appraisers have no way of controlling the apples to oranges dissimilarities. But I digress… According to the Dodd-Frank law, and the HVCC before it, clients are allowed to challenge the appraiser’s value opinion by submitting what is termed in the law “appropriate” sales to be further reviewed, with the expectation that...

ANSI & Floor Plans Goofiness "...if you the appraiser are not required to inspect the property yourself, don’t you want to have a more detailed…
Is ANSI for Appraisers Really the Answer? The real estate industry has a square footage credibility problem. ANSI has been out since 1996 with no new pages…
Smartphone Measuring Technology This new measuring technology claims the software to be ANSI compliant. Appraisers, over the past couple of years, there have…

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HUD Dismisses Claims Alleging Racism

Michael Ford — Thu, 02 Dec 2021 13:30:59 +0000

…white America (government) keeps trying to ‘fix’ Black People who are not broken in the first place! We’ve all heard of redlining. No one doubts it existed and MAY still exist, among private lenders. It’s hard to accept major national banking corps would risk it but it IS possible. Having said that, there is ZERO percentage or benefit for any appraiser to engage in it. None. Another appraiser in Los Angeles, who is a great researcher, posted addresses of the properties involved in half a dozen complaints alleging racism by appraisers and so-called ‘white washing’ of the houses producing subsequent...

Racial Bias: Redlining in the Modern Era ...are they behind this modern day redlining?... The broad definition of an algorithm according to Merriam Webster’s Dictionary is “a…
Security Bars Removal Law Debunks Alleged Racial… Complainant stated appraiser told them they should remove security bars from windows. Complainant stated this is evidence of "racist discrimination"...…
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…

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What If the Appraisal Comes in too Low?

Guest Author — Fri, 19 Mar 2021 12:30:45 +0000

…how to prevent a low appraisal in the first place… As real estate brokers in New York City, many buyers ask us what options exist if the appraised value comes below the contract’s purchase price. We explain how the appraisal rebuttal process works and how to prevent a low appraisal in the first place. Here are the most frequent questions buyers ask us. For this reason, we will draft this article like a Q&A. What happens when the appraisal is below the purchase price? What to do when the appraisal comes too low? How to contest a low appraisal? Can...

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 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 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…

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The Power of No!

Guest Author — Mon, 29 Jun 2020 12:30:37 +0000

Appraisers always had the power to end the appraisal management pyramid scheme. All we had to do is say no. Low fees, headaches, and idiotic reviewers have reached maximum capacity. The imploding of appraisal management companies is forthcoming. Over the past few months, appraisers have been simply saying no to low paying, time wasting, headache giving appraisal management companies; problematic portals too. I even read recently an appraisal was unable to be uploaded to a portal because the opinion of value was below the contract price. This type of influence rises to a whole new level, not to mention the...

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 Appraisal Fee Lawsuit AMCs Can't Outrun The class action lawsuit filed against CrossCountry Mortgage and Class Valuation arrives at a moment when many in the appraisal…
Exposing Predatory AMCs Exposing the inner workings of these predatory AMCs and their corrosive influence on the housing market. Cindy Chance's recent comments…

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Appraisal vs AVMs

Dave Towne — Fri, 13 Mar 2020 12:30:01 +0000

…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...

From Data to Value: How Mass Appraisal Delivers Fair… Behind every annual notice of assessments is a complex valuation system most property owners never realize exists. The Appraisal Foundation…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
Fannie Mae to Maryland: DROP DEAD Mortgage giant Fannie Mae and her twin, Freddie Mac, have a message for the State of Maryland: Kindly disintegrate. A…

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Is That an Arm’s-Length Transaction?

Dustin Harris — Mon, 23 Dec 2019 13:30:16 +0000

USPAP does not define the term arm’s-length transaction. Fannie Mae also lacks such a definition. Yet, both of them call for the appraiser to use only arm’s-length transactions as comparable sales… How often do we appraisers get into the mode where we think we know it all? Occasionally, do we need to step back and look at the way we do things, just to make sure we are not missing something? Is what we know to be true and correct really true and correct? I raise this issue relative to the concept of what an arm’s-length transaction is. Are we...

Data and Verification Sources Are Critical The genesis for this essay began when I heard from another appraiser that a VA report reviewer rejected the comparables…
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…
Fannie Wants to Script Conclusions of Outside… Government-sponsored mortgage giant Fannie Mae is essentially forcing banks to repurchase any loan it wants if [the appraiser] refuses to…

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contract price - Appraisers Blogs

Objectionable Valuations Become Hate Speech, Inflating Home Prices

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The New Appraisal Profession – Why bother!

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Reality of Today’s Appraisal Environment

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Fannie Mae Filed a Complaint Against Me

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NAR Concerns & Survey on Property Data Collectors

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The Scam of Racial Discrimination by Appraisers

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Woke ‘Bounty’ Bill Will Chill Speech of New York Appraisers

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Sale Price vs Appraised Value Disconnect

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Under-Valuations Unrelated to Racial Bias

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The Real Cause of the Home Value Gap Is the Income Gap

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House Measurement by Property Data Collector Gone Wrong

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A Push to Artificially Raise Property Values

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What If the Appraisal Comes in too Low?

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