by AppraisersBlogs · Published March 31, 2014 · Last modified January 26, 2019
A common misconception of Fannie Mae’s Appraiser Independence Requirements (AIR) is that lenders are required to use third-party vendors or appraisal management companies (AMCs) to ensure compliance. In fact, lenders are not required to use an AMC or any other third-party vendor to order appraisals…
by Brian L. Trotrier · Published March 28, 2014 · Last modified March 6, 2017
Blacklist of Appraisers – the End Is/Must Be Near: Advancements in the Art of Blacklisting If you are a real estate professional, please read this, especially if you fear your own business is being damaged by all of the new regulations designed to “help” the real estate industry recover. Imagine you, a hardworking, law abiding taxpayer, are sitting at home one evening watching television when there is a knock at your door. Somewhat surprised by the late hour of the visit, you get up and open the door and three IRS agents barge into your home and declare, “We are...
by Brian L. Trotrier · Published March 10, 2014 · Last modified March 6, 2017
Both Fannie and Freddie will now have their own blacklists and if you think getting off a bank’s blacklist is tough, you have no idea what you will have to do to get off one of their lists.
As one industry expert observed, “if you get on the do not use list for either Fannie Mae or Freddie Mac, you’d better find another job because your days of being an appraiser just ended.”
by Brian L. Trotrier · Published February 26, 2014 · Last modified March 6, 2017
There is a high cost of being blacklisted. When a lending institution loses confidence in an appraiser’s work, the bank or AMC will put them on a “do not use” list, also known as a blacklist. In some cases, this means an appraiser has made a costly mistake. However, some banks are taking blacklisting to an extreme by treating appraisers as guilty until proven innocent without cause or reason why. If unchallenged, this practice can be devastating because being blacklisted even once can have permanent detrimental effects on an appraiser’s career, income, and reputation. By engaging in blacklisting lenders are...
by Dustin Harris · Published February 18, 2014 · Last modified March 6, 2017
1004s are for sissies I remember the first time I ever saw a real appraisal report. No, I am not talking about a 1004, 2055, or even a 1025. I am not referring to a Fannie or Freddie form at all. I mean a real, living, breathing, monster of a report; the narrative!!! (insert collective gasp here) Early in my career, one of my insightful instructors brought one of his narrative reports to class. As I perused that 76 page beast full of words (not boxes), descriptions (not canned comments), graphs (not pre-filled MC Addendums), and pictures (oh, how there were...
by AppraisersBlogs · Published February 13, 2014 · Last modified May 22, 2022
Increasing FHFA oversight of UCDP use… Fannie Mae and Freddie Mac failed to fully analyze data from the Uniform Collateral Data Portal and continue to take unnecessary risks when purchasing and guaranteeing single-family residential mortgages, according to a report from the Federal Housing Finance Agency’s Office of the Inspector General, Mortgage Daily reported Feb. 6. The report indicated that the two government-sponsored enterprises are not taking full advantage of appraisal data collected through the UCDP that the Federal Housing Finance Agency directed the GSEs to use in 2010 in an effort to improve loan quality and risk management. Mortgage Daily...
by VaCAP Board · Published January 24, 2014 · Last modified August 18, 2020
New Fannie Mae Lender Letter I get it, appraising, especially residential-mortgage-use appraising, can be a thankless job. If you understand all that goes into properly developed reporting, it is hard to compete with the appraisers that perform poor due diligence and in turn, charge much less than the rest of us. They are great at checking boxes and making minimal commentary. They are rewarded for cutting corners, and appraisers that do the quality work are left at the margins. The new Fannie Mae Lender Letter may be a step in changing this. Our costs to keep our licenses with the continuing education, the...
by AppraisersBlogs · Published January 15, 2014 · Last modified May 22, 2022
Appraisal Institute Issues Guidance on Valuing Green Buildings When valuing green buildings, real estate appraisers’ analysis must be supported by market data on the subject property that helps explain why it stands out from its conventional peers, according to guidance issued today by the Appraisal Institute and the Institute for Market Transformation. Seeking to assist owners who retrofit an existing building or build a new one with energy-efficient features, the two organizations issued “Green Building and Property Value A Primer For Building Owners and Developers.” “As owners and developers enhance buildings with energy-efficient features, appraisers can help make the case...
by AppraisersBlogs · Published January 13, 2014 · Last modified August 18, 2020
Appraiser Quality Monitoring Information Fannie Mae has published a new web page with information about the recently implemented Appraiser Quality Monitoring (AQM) process. The new AQM web page includes FAQs and a link to the AQM list identifying appraisers whose appraisals will be subject to 100% review by Fannie Mae or whose appraisals are no longer accepted by Fannie Mae. The AQM list is protected content, and approved Fannie Mae sellers/servicers may set up access through Technology Manager. Appraiser Quality Monitoring (AQM) FAQs Fannie Mae began collecting appraisal data in 2011 through the Uniform Collateral Data Portal® (UCDP®). Millions of...
by Dustin Harris · Published January 9, 2014 · Last modified June 5, 2018
I have been giving a value range…for many years… By making the choice to do lender work, we also make the choice to accept some pretty ridiculous stipulations. “When you pick up one end of the stick, you also pick up the other,” my dad used to teach me. One of those requirements that have been around as long as I can remember is that an appraisal value must be reported as a single dollar amount. This, I believe, is a mistake. By definition, market value is “The most probable price which a property should bring in a competitive and...
Sign the Open Letter to AMCs. The goal is to raise much needed awareness and support to change the broken AMC model within our industry.
More
