Tagged: hybrid appraisal

Pushback to Fannie Mae: Certified Appraisers vs. Unlicensed Data Collectors 7

Certified Appraisers vs. Unlicensed Data Collectors

Here’s a great take on the difference between Certified Appraisers vs. Unlicensed Data Collectors by Leigh Brown, President of the NC Association of REALTORS. Fannie Mae has been working hard to get rid of appraisers for years. Their latest twist is to re-categorize many appraisers as “Unlicensed Data Collectors.” Fannie Mae will end up creating more instability for the trillions in the bond market – investors will have to process millions of valuations with the physical attributes of the home collected by unlicensed, uninsured, and unprepared individuals getting paid $10-$25 per inspection.   AI meets with Fannie Mae regulators to...

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisers News / Snippets

New URAR Redesign Spec Released 58

New URAR Redesign Spec Released

The Appraisal Forms & UAD Redesign Spec has been released and the current forms are being retired. This means that appraisers will no longer be using individual forms for each property type, but instead will have to use a single dataset with output varying based on property characteristics. If you want to get an idea of what this looks like, take a look at Appendix D-1 of the spec document. The new URAR form is going to be used for all types of properties as well as hybrid & traditional appraisals. It is important to note that this redesign requires...

1004MC / Appraisal / Appraisal News / Appraisal Software / Appraisers News / Automated Valuation Models

Fannie Mae Eroding Consumer Protection 18

Eroding Consumer Protection

Waiving appraisal requirements on residential homes could erode consumer protection, stall attempts to create diversity in the profession… The recent announcement from Fannie Mae that they will waive the requirement for residential home appraisals has caused quite a stir in the industry. Fannie Mae’s decision to waive appraisals during this time of soon to come recession and bank liquidity issues is both surprising and concerning, and could have serious implications for both consumers and financial institutions alike. With falling values across many markets combined with rising mortgage rates putting even more pressure on borrowers’ wallets, this decision could potentially put...

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisal Organizations / Appraisers News

No Appraisals Required in the Future! The End of Appraisers? 43

No Appraisals Required. The End of Appraisers?

No appraisal may be required in the future! Fannie Mae took a direct shot at appraisers with the announcement of changes in their Selling Guide. Two options for the future, both of which do great harm to the appraisal industry. First, “third party” inspections. Appraisal trainees aren’t good enough, so now we will have unlicensed inspectors going through the homes of unsuspecting homeowners. And, with this inspection a traditional appraisal is no longer a requirement for the mortgage loan. Secondly, the 3rd party inspection is sent to a licensed appraiser. Fannie Mae wants an appraiser’s signature so the appraiser can...

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

Exactly How Are Property Data Collectors Professionally Trained? 17

Exactly How Are Property Data Collectors Professionally Trained?

Somebody explain to me exactly how Property Data Collectors are “professionally trained” per Fannie Mae directives. The fact is, Fannie Mae is explicitly working toward the elimination of appraisers for real property valuations. This is in their latest Selling Guide Announcement SEL-2023-02 to the Fannie Mae Selling Guide: Value acceptance + property data is a new option that utilizes property data collection by a third party who conducts interior and exterior data collection on the subject property. To ensure consumer protections, the lender must verify and be able to demonstrate that data collectors are vetted through an annual background check,...

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

Opportunity to Work for Free is Not a Plan 73

‘Opportunity’ to Work for Free is Not a Plan

I gave this ‘opportunity’ further critical analysis in terms of time spent versus the fee income potential.  Appraisers, I’d like to disclose a personal ‘opportunity’ that was presented to me last fall, early winter. A company with AMC roots was, or is, recruiting people to become “property inspectors” with the resulting reports potentially fed to other appraisers who do HYBRID, or maybe even DESKTOP reports. The GSEs never intended the DESKTOP report to incorporate separate ‘property inspections’ from a hired third party, but that’s been the evolution because they just look the other way. Last fall, due to the slowdown...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Customary & Reasonable Fees

House Measurement by Property Data Collector Gone Wrong 142

House Measurement by Property Data Collector Gone Wrong

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...

American National Standards Institute / ANSI / Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Why Are Fannie, Freddie Peddling Exotic Junk-Rated Risk Swaps? 5

Why Are Fannie, Freddie Peddling Exotic Junk-Rated Risk Swaps?

Meanwhile, cratering home prices are eroding demand for the junk-rated credit transfers.  As mortgage giants Fannie and Freddie bend the knee to their political overlords, they securitize ever riskier loans. It’s a sign of the times. But while no one was looking, the twins – who wield the full faith and credit of the U.S. government – began quietly offloading this surplus risk in the form of so-called “credit-risk transfers.” The U.S. taxpayer should be worried. As the public learned in 2008 with AIG’s credit-default swaps, hidden risk injected into the financial system doesn’t stay hidden for long. The twins,...

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

The VA Required to Encourage Hybrids - Senate Passes HR 7735 18

The VA Required to Encourage Hybrids – Senate Passes HR 7735

The VA will now be required to encourage hybrid appraisals.  If you are a VA Appraiser, here’s a bit of news you need to keep tabs on. Senate Passes VA Appraisal Modernization Measure – theMReport.com The U.S. Senate has announced the passage of HR 7735, the Improving Access to the VA Home Loan Benefit Act of 2022. Under the terms of HR 7735, sponsored by Sen. Dan Sullivan and Rep. Mike Bost, the VA will be required to: Issue certification requirements for appraisers; Execute minimum property requirements; Review the process for selecting and reviewing comparable sales; Implement quality control processes; Establish...

Appraisal / Appraisal News / Appraisers News / Political Action / The US Department of Veterans Affairs / Trending

Smartphone Measuring Technology 15

Smartphone Measuring Technology

This new measuring technology claims the software to be ANSI compliant.  Appraisers, over the past couple of years, there have been lively discussions on forums, Facebook groups, at conferences, etc., about a ‘new’ technology which allows a ‘phone holder’ to measure a structure, with that technology providing a “Sketch” or “Floor Plan” of that structure. Some of you may have heard about one of the originating companies, Matterport, which some real estate agents/brokers use to generate virtual 3D interior diagrams and videos used in property marketing. Smartphone measuring technology evolved from that. Until recently, I and others did not understand...

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

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