Tagged: data

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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 unsigned complaints to state appraisal boards; when they see something they don’t like, they write it up and send it to the state. In their recent newsletter, this effort is called “Tips.” They emphasize they are not automated: LQC reviews are not automated. Our expert analysts validate the appraisal results by asking questions like “Do the comparable sale selections make sense?”, “Is the data accurate?”, “Did the appraiser make appropriate adjustments?” and “Are we getting the most probable value?” in...

Snippets / Trending

Mortgage Application Volume Nearing Historic Low 32

Mortgage Application Volume Nearing Historic Low

Appraisers, I’m almost reluctant to distribute this article, but the reality is what it is. Per the Mortgage Bankers Association (MBA), the loan application volume is at another low point in our history. The article in Mortgage News Daily titled “Mortgage Application Volume at Lowest Levels Since 1996” in this link provides context. For a related perspective, the article contains a graph, which can be expanded to show mortgage rates and application volume for decades. The brown line in the graph shows 30 year mortgage rates – since early 1971. The light blue indicates the loan application volume, which corresponds...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

The Unbiased Reality of Census Tract Data Dump... Open Letter to FHFA 11

The Unbiased Reality of Census Tract Data Dump… Open Letter to FHFA

Folks, the following letter was sent to FHFA by an appraiser I know. It was sent in response to the ‘first’ data dump FHFA made which uses CENSUS TRACT data to try to convince others that appraisers are biased by using ‘people demographics’ contained in Census Bureau info. You can find that ‘dump’ here. The writer of that first FHFA dump was identified by name, and included an email address. So the appraiser wrote a respectful email to Mr. Russell. It turns out, shortly after this FHFA document was released, Mr. Russell left FHFA. So this nice letter sent several...

Appraisal / Appraisal News / Appraisers News / Automated Valuation Models / AVM / Fannie Mae - Freddie Mac

Finding of Bias in Home Valuations Fails by Own Measure 39

Finding of Bias in Home Valuations Fails by Own Measure

To the surprise of no one, their redacted study found that what Perry et al. had characterized as race-based differences in home valuations were almost entirely due to socio-economic status, not racial bias by real estate appraisers. In an updated refutation of the findings of Brookings Institution researcher Andre Perry, Edward Pinto and Tobias Peter of the AEI Housing Center demonstrated just how broken the Brookings research was. Perry’s 2018 research, titled “The Devaluation of Assets in Black Neighborhoods,” pinned the nation’s racial wealth gap on 80,000 state-licensed real property appraisers. Unfortunately, these now-discredited findings have been levered by housing-industry...

Appraisal / Appraisal News / Appraisers News / Trending

Appraisal Bias - A Counterpoint 14

Appraisal Bias – A Counterpoint

It is a fact that 85% of appraisers are white with the majority of them being middle-age white men, although that is rapidly changing. The bias argument presupposes they are inherently more biased than women, Hispanic, African American, Asian, Pacific-islander, etc. We simply don’t have enough data to verify whether this is true or not. Therefore, as the argument goes, white appraisers must be biased. Just as there are more black NFL players in professional football it follows that the majority of touchdowns will be scored and fumbles made by a black player. We can, and should, encourage more diversity...

Appraisal / Appraisal News / Appraisers News

Isn't that Just PAVEY! PAVE Response and Marcia Fudge 16

Isn’t that Just PAVEY! PAVE Response and Marcia Fudge

Folks, the American Enterprise Institute Housing Center has been, to date, the only major voice in the wilderness I’ve seen publicly defending appraisers and the appraisal process. They have refuted most of the highly touted ‘studies’ promoted by Dr. Andre Perry and others, which the current administration has considered the gospels of appraiser intolerable performance. The Biden-created ‘black oriented’ 13 agency PAVE Taskforce, co-chaired by HUD Secretary Marcia L. Fudge, who is a black lady, issued another report recently. AEI’s response to that is in the PDF below. Please read it. Meanwhile, Ms. Fudge recently appeared at the 75th Annual...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Federal Housing Administration / FHA

PAREA Program & Its Negative Impact on Diversity 16

PAREA Program & Its Negative Impact on Diversity

The study also found that the PAREA program is not as effective in providing a more accessible pathway to licensure as the traditional apprenticeship model.  Practical Applications of Real Estate Appraisal (PAREA) is a program that aims to revolutionize the real estate industry by increasing the number of appraisers. However, after listening to the Appraisal Institute speaker at yesterdays board meeting it quickly became evident that this initiative is a complete failure. You cannot start PAREA until you have received all your real estate appraisal education. 94 hours = $1,700 per McKissock Appraisal Institute speaker said that most AMC’s/banks won’t...

AI / AMC / Appraisal / Appraisal Institute / Appraisal Management Companies / Appraisal News

Those Pesky Words... Words Considered Biased 24

‘Pesky’ Words. Keeping Appraisers out of Language Purgatory

Appraisers, on July 17, 2023, a document from Freddie Mac was circulated to numerous appraisers around the US which identified certain words and other info that can be considered to be ‘BIASED’ in appraisal reports. Here is the Link to the Bulletin. We need to step back for a moment and carefully analyze and consider why that was done, and what it means to appraisers. In many ways, appraisers forget the purpose of the appraisal assignment – which is to value real estate. In other words, the physical structures tied to the land. But too often, elements of personal or...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Federal Housing Administration / FHA

Fighting for Consumer Protection and the Appraisal Industry 34

Fighting for Consumer Protection & the Appraisal Industry

I’m just an Average Joe, surrounded by some really smart people, and we are fighting back. I often wonder if Certified General, MAI or SRA appraisers sitting in their ivory towers often chuckle to themselves and say HA, data collectors will never impact commercial. Who cares about the residential appraiser. Well, it looks like it’s time for you all to care. Copied from a Real Estate Forum Post: “Good morning, My name is Kevin Graham, and I am with Beacon Property Data Collection Services. You had recently signed up to become a panel member and we have an assignment for...

Appraisal / Appraisal News / Appraisers News / Trending

Has Fannie Mae Gotten Too Big to Control? 28

Has FNMA Gotten Too Big to Control?

Has Fannie Mae gotten too big to control? That was one of the many questions asked to Senators & Congressman while in Washington DC. The agreement on whether Fannie Mae has gotten too big to control was unanimous. Most believe that the company is too large and complex to be effectively managed by the government. They argue that Fannie Mae is too big to fail, and that if it were to collapse, it would have a devastating impact on the housing market. Others believe that Fannie Mae is sorta manageable, and that the government has taken steps to reduce the...

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

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