valuation methods - Appraisers Blogs

NFHA’s False Narrative Undermines the Appraisal Industry

AppraisersBlogs — Fri, 18 Oct 2024 12:30:59 +0000

A barrage of billboards, magazine ads, and TV/radio public service announcements is being used to amplify and spread this false narrative. The latest attack on the appraisal industry is being spearheaded by the National Fair Housing Alliance (NFHA) and the Department of Housing and Urban Development (HUD), who are aggressively pushing a false narrative of widespread appraisal bias against Black and Latino homeowners. Through a relentless media campaign employing emotive messaging, vivid anecdotes, and dubious statistics, these entities are painting a picture of widespread, systemic bias among appraisers against Black and Latino homeowners. However, the reality is that not a...

Lack of Evidence, Appraiser Challenges Discrimination Claims The next morning I went to my trusted AI program and asked if there was any evidence of bias. "Where…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…
Misleading Ads Sow Mistrust These misleading ads are sowing seeds of mistrust in a time-tested profession. The National Fair Housing Alliance (NFHA) has recently…

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County Assessors’ Standards | AVM Final Rule Guidance

Dallas T. Kiedrowski, MNAA — Fri, 23 Aug 2024 12:30:47 +0000

County Assessors have the advantage of being able to calibrate their models specifically for one market, allowing for a more tailored and precise approach. The OCC, FDIC, NCUA, CFPB, and FHFA (collectively, the Agencies) are adopting a final rule to implement AVM quality control standards mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The quality control standards apply to mortgage originators and secondary market investors in determining the value of a dwelling that is the collateral for mortgage financing. Under the final rule, institutions involved in specific credit decisions or securitization activities are required to...

Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
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…
AVMs... Garbage In, Garbage Out Garbage data in means garbage results out every time! It's no secret that AVMs have been a thorn in the…

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Fannie Mae to Maryland: DROP DEAD

Jeremy Bagott — Fri, 19 Apr 2024 12:30:45 +0000

Mortgage giant Fannie Mae and her twin, Freddie Mac, have a message for the State of Maryland: Kindly disintegrate. A snubbed Maryland task force is close to filing its report to the governor. It attempted, in vain, to obtain detailed information about the government-sponsored twins’ valuation algorithms – tools that have replaced many home appraisals in the Old-Line State and resulted, some contend, in a feedback loop and run-up in home prices. The task force was formed on the reasonable premise that the state has an interest in the twins’ activities, since Marylanders will be left with the clean-up costs,...

Dear Representative, FNMA Has Gone Rogue! Dear representative, waiving/eliminating property appraisal for lending purposes is wanton recklessness. Fannie Mae’s decision to waive/eliminate property appraisal for lending…
Fannie Mae Fraud and Abuse Exposed History of waste, fraud & abuse at this rogue organization... Fannie Mae reported this week it had fired more than…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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HUD’s Use of Convicted Felons to Ramp Up ‘Discrimination Testing’

Jeremy Bagott — Wed, 17 Jan 2024 13:30:50 +0000

It wants to bootstrap released felons by allowing them to work as so-called “fair-housing testers” for the many nonprofits HUD provides grants to… If the rule is changed, the HUD-subsidized nonprofits could hire felons to ramp up sting operations against real estate brokers, leasing agents, mortgage loan officers, escrow officers, title officers, appraisers, property managers and others. Few would argue that society doesn’t benefit when convicted felons are rehabilitated and re-integrated. But according to a frequently cited study by the Bureau of Justice Statistics, about two-thirds of released prisoners are arrested for a new crime within 3 years, and three-quarters...

AMC Hires a Convicted Felon as Property Data Collector The recent case of Paschal Uchendu, a convicted felon awaiting sentencing for orchestrating a $1.2 million armed robbery of a…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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Foregoing Contingencies! But What About Fiduciary Duty?

AppraisersBlogs — Tue, 27 Jun 2023 12:30:21 +0000

By foregoing contingencies such as home inspections and appraisals altogether, mortgage lenders risk violating their fiduciary duty – which is supposed to prioritize the interests of the borrower above all else. It is no surprise that some loan officers are salivating over the prospect of not having to wait for a full appraisal or a home inspection. After all, who doesn’t want to close more deals in less time? While this may be beneficial from a broker’s perspective, it could result in borrowers making decisions without being fully informed about their investment. Kim Nichols, senior managing director of Pennymac TPO,...

FNMA Property Data Collectors Program Violates WV Law The Fannie Mae Property Data Collectors program seems to have run afoul of West Virginia law. This program allows for…
AMC Hires a Convicted Felon as Property Data Collector The recent case of Paschal Uchendu, a convicted felon awaiting sentencing for orchestrating a $1.2 million armed robbery of a…
'Clean-Slate' Laws, Bad Policy Could Dispatch More… The idea of unlicensed individuals being hired off the streets and paid a pittance to video and photograph the interiors…

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The Real Cause of the Home Value Gap Is the Income Gap

Mary Cummins — Mon, 13 Feb 2023 13:30:46 +0000

Blaming appraisers for the income gap will never solve the real underlying problem… Blaming appraisers for the income gap is as ridiculous as blaming appraisers for gun violence and gas prices. I watched the January 24, 2023 ASC Appraisal Bias hearing. Comments were requested after the hearing. This letter is my comment. I’ve been a real estate appraiser in Los Angeles, California for 40 years. I’ve been a licensed California Certified Residential Appraiser since licenses were first offered in 1993/1994. I’m a Latino woman who speaks English and Spanish. I appraise property in the diverse county of Los Angeles and...

HUD Secretary's Comments Evoke Folly of 1919 Sex Scandal Secretary Fudge launched into what sounded remarkably like discriminatory rhetoric: "The problem is who is in the appraisal industry. When…
ASC Blaming Appraisers The Appraisal Subcommittee, because they were directed to do so, has produced a report, which frankly and explicitly lays the…
HUD Dismisses Claims Alleging Racism ...white America (government) keeps trying to 'fix' Black People who are not broken in the first place! We’ve all heard…

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VA Alternative Valuation Methods

AppraisersBlogs — Tue, 02 Aug 2022 12:30:24 +0000

On August 1, 2022, the Veterans Affairs released Circular 26-22-13 announcing new procedures for alternative valuation methods, effective immediately. The takeaway: “Desktop Appraisal means a valuation where neither the VA fee panel appraiser nor the appraiser’s designee under the AAPP has physically viewed the exterior or interior of the property and the VA fee panel appraiser has determined an opinion of value based on information obtained from public records, the Veteran, homeowner, realtor, and other appropriate data sources (as determined by the appraiser).” “The use of a Desktop Appraisal may allow an appraiser from outside the market area, but with...

Proposal to Eliminate the VA Fee Panel VA Fee Panel - The Appraisal Institute does not believe that a move to a lender select program, such as…
VA Unofficially Says NOPE to ANSI The other agencies, Freddie Mac, HUD/FHA, USDA, ONAP, VA have NOT (yet) adopted this ANSI measuring protocol. Appraisers, an appraiser…
Visualizing Market Activity Using Graphs & Trendlines Spreadsheets and graphs are powerful tools for appraisers. With proper data, and incorporated into reports, they can enhance your professionalism…

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PAVE May Pave Over Appraisers

Dave Towne — Fri, 01 Apr 2022 12:30:36 +0000

The blame game against appraisers is continuing the fast and furious start, evidenced by the PAVE report. A synopsis is in the link: PAVE task force delivers plan on appraisal bias – Lexology Key info from the PAVE report. “Relevant agencies have also committed to addressing potential bias in the use of technology-based valuation tools through a rulemaking related to automated valuation models (AVMs), including the addition of a nondiscrimination quality control standard in the proposed rule.” And, “In the coming months, the Task Force will assess: (i) the “expanded use of alternatives to traditional appraisals as a means of reducing...

County Assessors' Standards | AVM Final Rule Guidance County Assessors have the advantage of being able to calibrate their models specifically for one market, allowing for a more…
Dazzled by Wizardry, Federal Mortgage Regulators… This rulemaking is one more sign that federal bureaucrats are all in on a whacky plan to use technical wizardry…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

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Alternatives to Traditional Appraisals

VaCAP Board — Mon, 14 May 2018 12:30:42 +0000

…increasing usage of alternatives to traditional in-person appraisals for valuations in real estate transactions… A California Judge has ruled Wells Fargo must pay $97 million to mortgage employees for not paying employees for the state mandated breaks. From the article, the Judge sided with the employees and ruled compensation for breaks should include commissions, not just an hourly rate. Just think, this is one state. Don’t most states have similar laws? $97,000,000 x 50 = $4,850,000,000 See the article here. Reminder: The National Association of Realtors, Real Property Valuation Forum presents: Rethinking Real Estate Valuation: Alternatives to Traditional Appraisals The...

Clear Capital's Push For Hybrid VA Appraisals Clear Capital suggests that the VA consider the use of a desktop appraisal On April 4, 2017, the House Committee…
Garbage Replacing Appraisers? If appraisers were to embrace such garbage, would the demise of this technology be sooner? ...14.53 million dollar loss in…
Alternative Evaluations... Good or Bad All of these "alternative evaluations" are an attempt to reduce the fee of the appraiser... All this talk about alternatives…

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TAF Has Lost Its Way

Michael Ford — Thu, 22 Mar 2018 12:30:21 +0000

How can TAF claim to be any kind of authority, let alone "THE foremost authority" for any of the other disciplines? I personally like and respect the individuals I’ve met from TAF. My strenuous disagreement with TAF are the policies and actions. Not the individuals. The opening or introductory remarks on The Appraisal Foundation’s web page state: The Appraisal Foundation (Foundation) is the nation’s foremost authority on the valuation profession [emphasis added]. The organization sets the Congressionally-authorized standards and qualifications for real estate appraisers and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals. This work advances...

TAF / ASB Challenge USPAP 30 days after implementation of the last changes, ASB/TAF is already admitting they think the current USPAP is inadequate and…
Appraisal Standards Should Age Like Fine Wine Changes in Appraisal Standards?We have barely got into the "New" 2016-2017 copy of USPAP and the ASB is meeting on…
It’s Time to STOP the Foolishness STOP the constant parsing changes in all areas of USPAP I encourage ALL appraisers in the DC Metro area to…

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Baby or Bath Water? And Is it Time to Take Back USPAP?

Michael Ford — Fri, 24 Feb 2017 13:30:02 +0000

About half of AICPA members don’t believe in USPAP… When I first heard that “they” were trying to do away with the Appraisal Practices Board (APB) of the Appraisal Foundation (TAF), I tried to keep an open mind. I also wondered who “they” are. Did the Appraisal Institute (AI) finally get a sympathetic ear in Congress? Was it preemptive action by the Board of Trustees in anticipation of budget cuts by the new administration? By the way, what does the APB do? I certainly had it wrong. I thought they helped develop the Advisory Opinions (AOs)! To be candid the...

AI's Effort to Eliminate the ASC! Refocused effort to eliminate the ASC... Why? It’s now much more than rumor. There is a concerted effort to eliminate…
TAF Suspends Most APB Operations APB was based on the housing crisis of 2008... Appraisers, The news release below was issued on Jan. 26, 2017.…
The Partisan Battle to Eliminate Dodd Frank Dodd Frank created the illusion... I had a different “take away” from the Housing and Insurance Subcommittee "Modernizing Appraisals" hearing.…

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TAF Suspends Most APB Operations

Dave Towne — Fri, 27 Jan 2017 13:30:42 +0000

APB was based on the housing crisis of 2008… Appraisers, The news release below was issued on Jan. 26, 2017. I for one, appreciate what’s been done so far by the Appraisal Practices Board to help define and explain certain aspects of our work, and make those items available to anyone who wanted to download their advisories. I am also of the opinion that the initiation of the APB was one of the elements that lead to the Appraisal Institute resigning from The Appraisal Foundation, an action that was not entirely positive for AI members, or the ‘image’ of AI...

Residential Appraising in a Declining Market APB Valuation Advisory #3: Residential Appraising in a Declining Market The Appraisal Foundation is pleased to announce that the Appraisal…
The Partisan Battle to Eliminate Dodd Frank Dodd Frank created the illusion... I had a different “take away” from the Housing and Insurance Subcommittee "Modernizing Appraisals" hearing.…
AI Current Path is a Serious Issue for ALL Appraisers Time for the AI to cooperate with real estate appraisal state coalitions...? Is it finally time for the AI to…

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Fannie Re-Evaluating Your Adjustments & VA Hiring Appraisers

Guest Author — Mon, 18 Aug 2014 12:30:54 +0000

Fannie Mae’s Murphy stated that over the past year, the GSE had been focusing on “quality” and “condition” ratings of comps used in multiple appraisals by the same appraiser and found many cases where the appraiser has changed the quality and/or condition ratings on the same comparable from appraisal to appraisal. Now, based on the examination of the Uniform Appraisal Dataset (UAD) data, Fannie Mae’s focus for the next 12 months will be on adjustments. The data indicates that many appraisers are not using...

The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
Two Cheers for an 'Evolved' Beltway Entrepreneur...… We come not to bury David Bunton, the public figure, but to praise David Bunton, the evolved Beltway organism. Who…

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FHA Issues Draft of New Appraisal Requirements

AppraisersBlogs — Tue, 12 Aug 2014 12:30:41 +0000

The Federal Housing Administration on July 31 issued drafts of four new appraiser policy documents that it plans to add to its Single-Family Housing Policy Handbook. The FHA is seeking feedback before the documents are finalized. The draft documents relate to FHA appraiser eligibility requirements and the application process, as well appraiser responsibilities and compliance actions, eligibility guidelines for appraisers performing appraisals and reporting results, data delivery requirements related to the FHA Uniform Appraisal Dataset and instructions to help appraisers accurately complete FHA appraiser forms. FHA developed the documents in an effort to provide appraisers a more consistent approach to...

County Assessors' Standards | AVM Final Rule Guidance County Assessors have the advantage of being able to calibrate their models specifically for one market, allowing for a more…
Systemic Failures in FHA Appraisal and Loan Review This case exposed the cracks in an FHA system where failures by the lender, the AMC, and the review process…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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The Imminent Extinction of the Appraisal Industry?

Guest Author — Tue, 27 Aug 2013 12:30:13 +0000

Late yesterday afternoon a bill was introduced in the House of Representatives that would alter the mortgage process and ultimately the way millions of Americans receive a mortgage. HR 1108 would eliminate the need for an appraiser to appraise a home prior to the funds being disbursed to the

It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…
First the Borrower Fee. Now the Appraiser… Two lawsuits place Class Valuation’s fee transparency and staff-appraiser compensation practices under federal scrutiny. Most appraisal disputes examine only one…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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My Main USPAP Issue – Letter to ASB

ICAP Board — Tue, 23 Jul 2013 12:30:56 +0000

My Main USPAP Issue – Statement Letter to the ASB The purpose of USPAP is to promote and maintain a high level of public trust in establishing requirements for appraisals and “reliable” valuations. The problems is, however, that it is subjective. Assuming one can support the conclusion or opinion; beauty is in the eye of the beholder, or in this case, the appraiser. Likewise, evaluation and selection is in the eye of the appraiser – which is why two different and reasonable and competent appraisers can reach two different, but equally credible opinions, on the same property. And that is...

The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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Appraisal Practices Board: A Free Resource for Appraisers

AppraisersBlogs — Tue, 24 Jul 2012 12:30:29 +0000

The genesis of the Appraisal Practices Board was the collapse of the housing market in 2008… Congressional Hearing Provides Opportunity to Clarify Purpose – FOR IMMEDIATE RELEASE June 29, 2012. Washington, DC – The Appraisal Foundation (TAF), a non-profit education organization dedicated to professional valuation, testified yesterday before the U.S. House of Representatives, Committee on Financial Services, Subcommittee on Insurance, Housing and Community Opportunity. The hearing, entitled Appraisal Oversight: The Regulatory Impact on Consumers and Businesses, focused on the Appraiser Regulatory System in place today and whether there is need for modifications or improvement of this system. One issue discussed...

How U.S. Home Valuations Are Being Subverted At the crossroads of it all is a campaign to weaken or eliminate valuations... The nonprofit is now exploring ways…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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Appraisal Strategy Altered in Unstable Canadian Market

AppraisersBlogs — Mon, 25 Jun 2012 12:30:23 +0000

Several Canadian banks have reconsidered their appraisal strategies due to increased concern about the accuracy of property values in a market with the potential to overheat, the Globe and Mail reported June 13. Canadian lenders currently use such valuation methods as full appraisals, drive-by appraisals and databases to determine market value. Banks are emphasizing on-site visits, particularly for properties over a certain price threshold or in rural areas, the Globe and Mail reported. They also are more carefully evaluating who performs appraisals. The banks hope that increased diligence will result in more accurate values in light of concerns about an...

Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
The One-Mile Rule: Prudent Policy or Modern Day Redlining? ...whether through redlined maps or implicit "one-mile rule," the result can be undervalued properties in historically marginalized neighborhoods. Throughout the…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…

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Residential Appraising in a Declining Market

AppraisersBlogs — Wed, 16 May 2012 12:30:24 +0000

APB Valuation Advisory #3: Residential Appraising in a Declining Market The Appraisal Foundation is pleased to announce that the Appraisal Practices Board (APB) has adopted “APB Valuation Advisory #3: Residential Appraising in a Declining Market.” The APB is an independent Board of The Appraisal Foundation, which is responsible for developing voluntary guidance on recognized valuation methods and techniques. APB Valuation Advisory #3: Residential Appraising in a Declining Market, includes guidance on: How Should an Appraiser Define a Declining Market? What Databases are Available to Support a Market Trend Conclusion? What are Some Alternative Value Definitions? Defining a Market vs. a...

Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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valuation methods - Appraisers Blogs

NFHA’s False Narrative Undermines the Appraisal Industry

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County Assessors’ Standards | AVM Final Rule Guidance

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Fannie Mae to Maryland: DROP DEAD

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HUD’s Use of Convicted Felons to Ramp Up ‘Discrimination Testing’

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Foregoing Contingencies! But What About Fiduciary Duty?

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The Real Cause of the Home Value Gap Is the Income Gap

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VA Alternative Valuation Methods

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PAVE May Pave Over Appraisers

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Alternatives to Traditional Appraisals

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TAF Has Lost Its Way

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Baby or Bath Water? And Is it Time to Take Back USPAP?

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TAF Suspends Most APB Operations

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Fannie Re-Evaluating Your Adjustments & VA Hiring Appraisers

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FHA Issues Draft of New Appraisal Requirements

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The Imminent Extinction of the Appraisal Industry?

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My Main USPAP Issue – Letter to ASB

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Appraisal Practices Board: A Free Resource for Appraisers

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Appraisal Strategy Altered in Unstable Canadian Market

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