Tagged: NAR

April 7, 2016

Real, Real Estate Reform Needed

What a crazy system we have grown into since Dodd-Frank. All this talk about “Big Data” and “Standardization” makes me want to scream! Enough is enough. Before we get to the appraisal process discussion, let’s talk about how real estate is priced all across this country. Realtors® price homes, period. No Big Data, no thoughts of mortgage risk, accuracy, consistency, transparency, and no one is looking over their shoulders asking “why” on every choice they make. No regression analysis, no quality or condition ratings, not too much of anything that resembles an appraisal these days. Yet, they are quick to...

American Measurement Standard / American National Standards Institute / AMS / ANSI / Appraisal / Appraisal News

April 5, 2016

An AMC Takeover is Coming!

AMCs completing appraisal reports in direct competition with the independent appraiser As an appraiser, you have probably seen or heard that AMCs are hiring staff appraisers to complete appraisal assignments in local markets. What does this mean for independent fee appraisers? Here is some background information to consider. 54.1-2020 of the Code of Virginia states: An Appraisal Management Company is “a person or entity that (i) administers a network of independent contract appraisers, receives requests for appraisals from clients, and receives a fee paid by the client for the appraisals and (ii) enters into an agreement with one or more...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisers News

October 21, 2015

Stop the Housing Tax for Transportation

Hidden tax on homeowners The California Association of Realtors® in conjunction with the National Association of Realtors® has published a widespread “Call to Action”, Stop Congress From Taking Money From Future Homeowners. I have already contacted my Congress Member and received a reply. In a nutshell, the bill being discussed is a hidden tax on homeowners. Whether on a refinance or on a new purchase, anyone with a mortgage of about $400,000 could expect to pay an additional $8,000 for federal transportation infrastructure funding through an add on mortgage tax included in their monthly payment! For decades the Federal Highway...

Appraisal / Appraisal News / Appraisers News / NAR / National Association of Realtors / Political Action

September 10, 2015

An Open Letter to the Valuation Profession

An Open Letter to the Valuation Profession from the Appraisal Foundation regarding the rift with the Appraisal Institute Value. Appraisers grapple with this concept daily as they analyze data and information to arrive at an opinion that is credible. Some information found is valid, some is tainted, and appraisers work diligently to separate the good from the bad to arrive at their conclusions – opinions that can withstand future tests. Likewise, The Appraisal Foundation (TAF; the Foundation) remains constantly attuned to what is going on in the valuation realm, conscientiously analyzing information and working to uphold the appraisal profession so its actions...

AARO / AI / American Society of Appraisers / Appraisal / Appraisal Institute / Appraisal News

May 22, 2014

PADS – Appraisers Running for Exits

We urge appraisers to review the PADS Model Current economic trends suggest your appraisal practice will not survive beyond 2015. Appraisers are running for the exits, with many moving into Ad Valorem, and some into cost estimating. Client accounts you thought were safe have been converted to ether and dispersed among a dark refinancing void. You’ve gone from completing six appraisals per week to camping by your email, in hopes of an AMC broadcast assignment appearing. Where you once had time to think about accepting the assignment, you now have less than 2 seconds to accept, because like you, ninety...

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

May 12, 2014

Basement Homes and Appraised Values Gone Wrong

95% of Appraisals on Homes with Basement or Lower Levels Have Errors, Errors that Affect the Home’s Value… In the majority of markets all across the country, it is virtually impossible to get an accurate appraisal on homes that have a basement or lower levels. That’s a pretty big claim. Can it possibly be true? Absolutely it can! And, it happens every day. No one in the real estate industry wants to bring this topic out in the open for fear the public would be outraged. Well, it’s time somebody gets mad. And for all the Realtor’s® big talk about...

Appraisal / Appraisal News / Appraisers News / NAR / National Association of Realtors

January 17, 2014

John Dingeman Reinstated from Chase “Black List”

American Guild of Appraisers Member John Dingeman Reinstated from Chase “Black List” NEW YORK, Jan. 15, 2014 /PRNewswire-USNewswire/ — After a fight that lasted more than fifteen months, involving Chase Manhattan Bank, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC), American Guild of Appraisers (AGA) member John Dingeman was vindicated when Chase agreed to reinstate him to be eligible for appraisal assignments. AGA is an affiliate of the Office and Professional Employees International Union (OPEIU), AFL-CIO. Dingeman was placed on Chase’s “Black List” in May 2012 after he refused to release information...

AGA / Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / CFPB

July 10, 2013

Valuing Energy Efficiency in Appraisal and Underwriting

We thought there would be some association between energy efficiency and mortgage risk… In March, a joint study by the University of North Carolina at Chapel Hill Center for Community Capital and the Institute for Market Transformation (IMT) found that owners of ENERGY STAR-rated homes are one-third less likely to default on a mortgage than the average borrower. Home Energy Efficiency and Mortgage Risks used a sample of 71,000 home loans from 38 states and the District of Columbia, all derived from CoreLogic’s mortgage database. The sample was restricted to single-family, owner-occupied houses whose loans originated during 2002–2012 and were used...

Appraisal / Appraisal News / Appraisers News / NAR / National Association of Realtors

May 28, 2013

NAHB & NAR Tactic – If They Said It, It Must Be True

New tactic by the NAR and NAHB to get appraisers to “play ball” CNN Money recently published a piece (located here) titled “Home appraisals no longer derailing sales”, a quote generically attributed to members of the National Association of Realtors (NAR). What struck me as a bit odd was the fact that just about a year ago, the NAR in conjunction with the National Association of Home Builders (NAHB) stated in another article on home sales and appraisals that roughly 1/3 of the deals placed into contract by its realtor members were failing to close due to problems getting appraisers...

Appraisal / Appraisal News / Appraisers News / E&O / Errors & Omissions / NAHB

Appraisal Institute Releases Enhanced ‘Green’ Addendum

March 22, 2013

AI Releases Enhanced ‘Green’ Addendum

The Appraisal Institute released on March 7 an updated version of its Residential Green and Energy Efficient Addendum. The form is designed to assist in the valuation of energy-efficient home features, and it remains the first of its kind specifically intended for appraisers’ use. AI originally issued its green addendum in September 2011 as an optional form to Fannie Mae Form 1004, which is the valuation profession’s most widely used form for mortgage lending purposes. The addendum allows appraisers to identify and describe a home’s green features, from solar panels to energy-saving appliances. Form 1004 devotes limited attention to energy-efficient features,...

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