Tagged: FHA

Failure to Inspect & Photograph Comps Backfires on Appraisers 52

Appraisers, did you Shoot yourself in the Foot?

When I explain the rules many of the appraisers start complaining: “An MLS photograph depicts the house at the time it sold so it’s more accurate than my photograph would be”… There’s a lot of yelling and screaming about bifurcated appraisals. Unfortunately, appraisers may have shot themselves in the foot when it comes to this issue. Allow me to provide an analogy to help explain the issue. I’m not sure if this happens in other areas of the country but in Seattle there is a strange “left leaning” way they do things: State and Federal governments perform numerous traffic studies, to...

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

USRES AMC incompetence 20

AMC Incompetence in Appraisal Management

I’m told USRES routinely sends orders to out of state appraisers for orders in areas they don’t work in. Is this indicative of the Home Point Financial “We care” motto? ATTN: Executive Leadership Gentlemen, see attached copy of an Alabama appraisal order placed by your AMC, USRES. Among our many other efforts on behalf of appraisers and promoting appraisal quality, we periodically communicate directly with lenders that use AMCs. We do this to make sure they are aware of any substandard practices or services that may be offered in their name. This particular issue is not an isolated instance. Though...

AGA / AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations

Forward and Reverse FHA Condo Mortgages - Zoning and Solar Photovoltaic 2

FHA Forward & Reverse Mortgages

FHA appraisers, you may begin seeing more appraisal assignments for both FHA ‘Forward’ and ‘Reverse’ mortgages on condos, starting in October 2019. “Forward” is the slang term for a standard mortgage with a set term, paid off during that term. HUD/FHA has changed the eligibility requirements for condo properties to allow senior (seasoned) citizens to apply for a reverse mortgage if that is their primary residence. The change takes effect in October. The change also affects standard ‘forward’ mortgages on condos, making it easier for condo projects to quality for FHA guaranteed mortgages. FHA clamped down on these in 2008,...

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

The Raising of the De Minimus and Its Impact on the Appraisal Industry 11

De Minimus Impact on the Appraisal Industry

THREE changes to the de minimus have been experienced, with very little negative impact to appraising as a whole… Folks, anytime there is a major change proposed or activated within the appraisal profession, many appraisers go into hyperventilation mode. The action taken on August 20, 2019, by the FDIC to raise the de minimus LOAN VALUE from $250,000 to $400,000 has had such an effect among many, but it may not be as dire as anticipated. An appraiser sent this 2018 HousingWire article to me earlier today: Within the body of the article, this is stated, which is taken from...

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

Language Barrier... What We Got Here is … Failure to Communicate 9

Failure to Communicate

Realtor’s language is “local” whereas an appraiser’s language is universal… What we got here is … failure to communicate. It’s a line from Cool Hand Luke … a great old movie with Paul Newman. Newman played a prisoner in a jail in the Deep South. The story was all about Luke Jackson, played by Newman, who was sentenced to two years in a Florida prison farm. Well, Luke was a free spirit who didn’t play by the rules and this angered the prison’s sadistic warden. In one memorable scene, the warden said, “What we’ve got here is … failure to communicate“. That line was...

Appraisal / Appraisal News / Appraisers News

What Makes a Next Generation Home? - Appraisers Blogs 5

What is a Next Generation Home?

What makes a Next Generation home? Appraisers, both FNMA and FrMAC, in concert with manufactured housing builders and the Appraisal Institute, are promoting a new type of MANUFACTURED home, and CE classes to teach appraisers about them (and typical MFH). If your appraisal service area has manufactured homes, and you appraise them, you may want to peruse this essay. The name generically applied to these new manufactured homes is Next Generation (NG). Each GSE has a different name for their LENDING program, see below. Why is this happening? Up until relatively recently, the two GSE’s didn’t purchase manufactured home loans from...

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

Beware of Appraisers Point Solicitations 65

Beware of Appraisers Point Solicitations

Appraisers, a new ‘company’ with “Appraisers Point” in their name has been marketing their services via emails across the fruited plain lately, encouraging appraisers to sign up on their web site and pay an annual fee so that ‘you’ can get on a list to be presented to, or accessed by, unnamed lenders, who might, or might not, want your service. They have a very slick looking web site that makes them look legit. Appraisers Point has no location shown on their website, so in reality, it could be anywhere in the world. The email messages show a location in...

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

Do You Tell Borrowers About Repairs in an Appraisal Inspection? 34

What to Tell Borrowers in an Inspection

It can be hard to know exactly what to tell a borrower sometimes in an inspection when it comes to repairs. For example, if you see chipping and peeling paint in an older home, and it is an FHA inspection, do you let the homeowner know that there is a good chance that their lender will ask them to repair it? While it is probably not a big deal either way, I see both pros and cons to both sides of this issue. If the borrowers seem kind and agreeable, I typically will tell them about the repairs. It gives...

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

Subject Street Scene Photos' Policy - Appraisers Blogs 13

Street Scene Photos of the Subject Property

Appraisers, the discussion of subject photos occurred recently on a forum I read. How many of you know the street scene “view” policy of FHA and FNMA? How many of you were trained to just take ONE photo from the very front of the subject, looking down the street in one direction or the other (without having the subject in the photo)? Is that ‘good enough’ for a lender to know the context of where the subject is on the street? If a ‘street view policy’ between agencies is more strict for one, would it be appropriate to adopt that policy for...

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

COD at The Door? - Can Appraisers Collect at the Door? 28

COD at The Door?

Can Appraisers Collect at the Door (COD)? In the past, it was common for appraisers to collect their fees directly from the borrower at the time of the property visit (i.e., at the door). I would take credit cards, checks, or cash while at the door. Many years ago, this was common. Now, however, that rarely happens and we usually have to wait 30- to 60-days for payment from the AMC client. So recently, when I got a COD order from HUD, I was really surprised. In fact, I thought something was bogus. I needed to check this out since...

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

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