Tagged: Fannie Mae

Price of this Fiasco May be the Downfall of the US Real Estate Market 16

The Price of Big Data Valuation Fiasco

"Price" of this Fiasco may be the Downfall of the American Real Estate Market… I Choose Not to Be Part of the Big Data Valuation Revolution The big data and automated valuation explosion will ultimately destroy the real estate industry and it will take decades for it to recover. The facts are, we live and work in a price-per-square-foot industry. The square footage data used in the so-called “official record” in local tax records is in error enough to alter home values and it’s an equal opportunity offender – values can be too low or too high. And, it’s wrong...

Appraisal / Appraisal News / Appraisers News / Customary & Reasonable Fees / Fannie Mae - Freddie Mac / Home Valuation Code of Conduct

Appraisal Management Companies AMCs Have Failed 63

AMCs Have Failed

…it will be the appraisal management companies that are going to be held to the fire, not the appraiser… In the spring of 2002 my wife and I bought our third house; an older cape cod in a great school system where our son would start kindergarten in the fall and his sister the year after. This house literally was 1970 inside. It had deep red shag carpet in the family room and sculptured avocado green carpet upstairs. Not to worry, it blended well with the sunshine yellow stove, bright orange counter top and turquoise and pink bathrooms. After 3...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Appraisers Knew Fannie Mae Would Need Another Bailout 46

Kudos to Rep Hensarling!

Kudos to Congressman Member Jeb Hensarling! House Financial Services Committee Chairman Jeb Hensarling (R-TX) is one of the few federal watchdogs that ‘gets it’ on Fannie Mae’s & all GSE’s operations. All appraisers that have watched Fannie Mae’s changes in policies over the past 3+ years knew it was only a matter of time before they would need another taxpayer bailout. What we didn’t know was that it would be this soon. Most of us assumed it would be after the next crash that their reckless policies trigger. Reading the recent press release from the House Financial Services Committee, my...

AGA / Appraisal / Appraisal News / Appraisal Organizations / Appraisal Subcommittee / Appraisers News

BPO Outsourced to India Replacing Appraisals 27

BPOs ‘Made in India’

$10 a pop ‘Made in India’ BPO… When saying you’re 'sari' just won’t do. The Blackstone Group is nothing short of legendary. To say it is a 'Big Deal' is an understatement squared. A little background from their website. “Who We Are Our investments are designed to preserve and grow our limited partners’ capital, provide financial security for millions of retirees, sovereign wealth funds, and other institutional and individual investors, and contribute to overall economic growth.” An honorable & worthy objective by any measure. Helping retirees on fixed income, little old ladies, grandmothers and mothers, albeit wealthy ones I’d guess. Sovereign...

AGA / Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / Fannie Mae - Freddie Mac

Suburban Inside Urban City Limits 26

Suburban Inside Urban City Limits – Really?

Pre-filled template with ‘Suburban’ already checked… Appraisers, Another appraisal report was delivered by a homing pigeon to my windowsill the other day. After leaving a ‘deposit’ on the sill that kind of matches the goop I observed in the report, off it went. The subject property is within a built-up neighborhood area within the largest city in this particular area; it is within city limits. The neighborhood was developed in the 1950’s and 60’s. It is fully built out (i.e., all subdivided lots are developed) and has a couple of neighborhood parks. Population density is similar to other areas within...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Tutorials

Reform America's Broken Housing Finance System 12

Reform Our Broken Housing Finance System

Hensarling Lays Out Principles for Housing Finance Reform, Expresses Support for Bipartisan Approach “I stand ready to negotiate….with any other stakeholder that shares my belief that America deserves a sustainable housing finance system, and deserves one now.” WASHINGTON – House Financial Services Committee Chairman Jeb Hensarling (R-TX) today outlined reforms to fix America’s broken housing finance system. During a speech at a conference on the future of the U.S. housing market, Chairman Hensarling said he would work on a bipartisan basis to come up with a reform package provided it included certain key principles. He also pointed to a proposal authored...

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

Hacked! Are We to Rely on FNMA to Keep Our Private Tax Info Protected? 12

Is Your Private Tax Info Protected?

Even the Pentagon gets hacked! Do Consumers really KNOW how their loan application data is being handled? Having worked for IRS, I know it is against the law for any government employee to divulge specific (identifiable) taxpayer information without exceptional effort to get advance approval. There is no legal way for that personally identifiable taxpayer information to get into the public domain without the taxpayers specific written permission for it. Even inside IRS, we were required to protect the identification of the taxpayer in any case related situational discussions where we sought each others advice. We could talk about the...

AGA / Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / Fannie Mae - Freddie Mac

Markets & Big Data Fool Proved Forecasting 10

I Got It Wrong…

“…after forty years of studying markets, I got it wrong…” As time goes on, the one thing that appears to be both a societal and financial markets constant, is our inability to learn from our past mistakes. Late, a couple of nights ago (10/23/17), while channel surfing, I happened on an economics program intended to explain the financial crisis of 2008. My apologies for referring to a programming without its name or network. Instead, I had to consider the person who was the primary focal point of the program: Hyman Minsky (see link to The Economist here). Before reading the...

a la mode / AGA / Appraisal / Appraisal News / Appraisal Organizations / Appraisal Software

Properties Editing Tool of Collateral Underwriter 4.2 Misinterpreted 17

Misinterpreted CU Update Message

Where the EDITs are used, they are within the "model properties"… Folks, This is the message many appraisers have seen over the past week or so, which came from FNMA: “During the weekend of Dec. 9, we will implement Collateral Underwriter® (CU™) 4.2, (which includes) the ability to edit the subject and appraiser-provided comparable sales property characteristics. CU 4.2 will also provide mortgage insurers (MIs) with access to CU. Lenders will be able to give their MI risk partners access to appraisal-specific data by providing them the Doc File ID generated at the time of appraisal submission.” As so often happens...

Appraisal / Appraisal News / Appraisers News / Collateral Underwriter / CU / Fannie Mae - Freddie Mac

Housing Finance Reform Must Be Tackled by Congress 5

Congress Must Act

The “Sustainable Housing Finance” hearing took place yesterday morning. Please take a minute to read and / or listen to what is being said. Hensarling: Congress Must Tackle Housing Finance Reform WASHINGTON – House Financial Services Committee Chairman Jeb Hensarling (R-TX) delivered the following opening remarks at today’s hearing on sustainable housing finance reform: Today we welcome back our former colleague and committee member Mel Watt, the Director of the Federal Housing Finance Agency. Director Watt served with distinction on this committee for many, many years and was respected on both sides of the aisle. Sir, it is good to...

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

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