Veterans Affairs - Appraisers Blogs

The Town With No Bank: How Rural America Lost Its Mortgage Lifeline

Dallas T. Kiedrowski, MNAA — Fri, 29 Aug 2025 12:30:24 +0000

For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore. That lending dried up because the buyers disappeared. That it’s just the market working as it should. But what if we’ve been telling the wrong story? Because when you look closely, when you actually follow the data, the decisions, and the people left behind, it turns out rural America didn’t walk away from mortgage credit. Mortgage credit walked away from rural America. The Collapse of Local Lending Up until the 1980s, a family in a small farming town could walk...

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TEAPOTS Exposed: The PAVE Initiative’s Illusion of Justice

Guest Author — Thu, 22 May 2025 12:30:03 +0000

The PAVE Initiative’s lack of TEAPOTS case entries reveals a fraudulent scheme that betrayed homeowners, vilified appraisers, and hid the truth from Congress. The Biden administration’s PAVE Task Force initiative was never a legally engineered program to uncover racial bias in the appraisal industry. It was, as I have now uncovered, a systemic administrative illusion: a complex, bureaucratic apparatus designed to justify federal grant funding, inflate internal performance metrics, and maintain political optics — not to administer justice. This wasn’t enforcement. This was theft of government funds dressed in legal theater. Homeowners were deceived. Appraisers were targeted. The law was...

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A Cry from the Appraisal Trenches: The Fall of GSE Oversight

Guest Author — Fri, 25 Apr 2025 12:30:13 +0000

That could bring our best and brightest back to GSE lending, leveling the playing field with fairer work distribution. Picture this: a system built to protect homeowners, backed by taxpayer dollars, now teetering on the edge of betrayal. The regulatory framework governing Government-Sponsored Enterprises (GSEs) was once a fortress of consumer protection, transparency, and fairness. As an appraiser, I’ve watched this fortress crumble. The rules imposed on GSEs and their partners—our trade-off for their congressional charter—have been chipped away through years of cunning maneuvers by trade groups and stakeholder interests. What’s left is a hollow shell, far removed from the...

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Is a Horde of Deadbeat Borrowers Again Walking Among Us?

Jeremy Bagott — Mon, 04 Nov 2024 13:30:44 +0000

There are signs of a new horde of deadbeat borrowers, but the foreclosure filings are being delayed and masked by the government itself. Some of the current deadbeat borrowers will learn to expertly work the system… In 2022, a San Ramon, California, couple who hadn’t made a mortgage payment since 2009 was finally evicted. Anita and Mahesh Khurana had put on a masterclass in the use of the courts to keep foreclosure at bay. The holdouts had lived in their home payment-free for 13 years. A state court finally ruled they had exhausted all appeals, and they were ejected. In...

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Is the GSE’s “Appraisal Modernization” Really Just Mass Appraisal?

Dallas T. Kiedrowski, MNAA — Thu, 07 Mar 2024 13:30:04 +0000

Mass Appraisal tend to exhibit a regressive nature… In the intricate landscape of real estate mortgage financing, the notion of appraisal waivers recently dubbed “Value Acceptance”, by the Government Sponsored Enterprises (GSEs), has stirred considerable debate. The most recent statistics show Value Acceptance accounts for up to 40% of all mortgage approvals. It is presented as part of the GSEs “Appraisal Modernization” initiative, which aims to streamline the mortgage appraisal process. However, a closer examination reveals potential drawbacks, raising questions about its efficacy and impact on the housing market. Despite its roots in a methodology designed to support appraisers, Value...

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VA Appraisal Request Form at Heart of AIR Violation Class Action

Peter Christensen — Tue, 23 May 2023 12:30:52 +0000

While the statute doesn’t explicitly mention that providing a loan amount is an AIR violation… When a mortgage lender seeks to make a Veterans Administration-backed home loan, the lender requests an appraisal from the VA’s appraiser panel by using a form entitled Request for Determination of Reasonable Value. For many years, until it was revised in July 2022, this form had a box labelled “Refinancing-Amount of Proposed Loan.” This box asked the lender to fill in the proposed loan amount for refinances. Once submitted, the form begins the appraisal process and is provided to the appraiser assigned by the VA...

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Slow VA Appraisal Turnaround Times Is Overblown

AppraisersBlogs — Mon, 26 Sep 2022 12:30:19 +0000

Concerns about slow VA appraisal turnaround times is overblown… On September 14, 2022, US House passed HR 7735, “the Improving Access to the VA Home Loan Benefit Act of 2022“, legislation that proposes to overhaul the Department of Veterans Affairs’ appraisal requirements, including when an appraisal is required, how an appraisal is to be conducted, and who is eligible to conduct an appraisal. The Mortgage Bankers Association (MBA) has long been vocal about its support for the bill. “The bill will encourage important reforms to the agency’s requirements regarding when an appraisal is necessary, how appraisals are conducted, and who...

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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...

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Proposal to Eliminate the VA Fee Panel

AppraisersBlogs — Fri, 20 May 2022 12:30:18 +0000

VA Fee Panel – The Appraisal Institute does not believe that a move to a lender select program, such as those found in the conventional or FHA mortgage markets, would improve timeliness, nor would it be in the best interests of veterans. On May 18, the Subcommittee on Economic Opportunity held a legislative hearing on the Discussion Draft of H.R. 7735, Improving Access to the VA Home Loan Act of 2022. The bill is sponsored by Representative Mike Bost, R-Illinois, the ranking member of the House Veterans Affairs Committee, and Senator Dan Sullivan, R-Alaska, a member of the Senate Veterans...

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ASC Blaming Appraisers

Dave Towne — Tue, 25 Jan 2022 13:30:52 +0000

The Appraisal Subcommittee, because they were directed to do so, has produced a report, which frankly and explicitly lays the blame for low market values of homes in ‘communities of color’ directly at the feet of independent appraisers involved with mortgage lending. You will start seeing accusatory slanted media reports about this report. ABC news already has distributed it. A TV station in San Francisco has aired a story already. Yes, the report casually mentions actual facts that GOVERNMENT policies and procedures promulgated segregated and extraordinarily unfair housing issues in the US, from the 1930’s into the early 1960’s. The...

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TAF Is About To Get PAVEd

Jonathan Miller — Thu, 12 Aug 2021 12:30:33 +0000

The current administration is addressing the lack of diversity in housing valuation head-on with the formation of an interagency task force on Property Appraisal and Valuation Equity (PAVE). Here are the details of the PAVE Task Force. They just had their first meeting and this is a serious effort unlike the silliness of TAF’s bureaucratic actions of the past year that were nothing more than window dressing to the lack of diversity problem within the appraisal industry. Incidentally, The Appraisal Foundation is not part of PAVE Task Force. Keep that in mind when you read their bat-shit crazy letter again and think about the fact that...

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Call to Comment; AMC Disciplinary Action

VaCAP Board — Fri, 09 Jul 2021 12:30:33 +0000

1. A Call to Comment has been issued. 2. VA is looking for Appraisers. 3. AMC Disciplinary Action Snowballs into Multiple States… A Call to Comment has been issued. The FTC is asking for public comments on the consent decree by the Louisiana Real Estate Appraisal Board. The time line to comment is short and ends on July 22, 2021. VaCAP asks each of you to take a few minutes and read the consent decree as well as the analysis provided by the FTC before commenting. The link for the Federal Register that contains all the information can be found...

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The Greatest Recession

Frederick E Rossiter — Fri, 10 Apr 2020 12:30:25 +0000

The Greatest Recession is now spreading across the US. The investor’s hesitance to accept modified appraisals without interior inspections will prevent the real estate market from leading this country out of “The Greatest Recession” now spreading across the US… Appraisers provide an essential financial service according to the verbiage I’ve read from The Department of Homeland Security and various sources. We are exempt from “stay at home” orders. The State of Colorado has defined appraisal services and appraisers as providing an essential financial and professional service. Colorado says that appraisers are exempt from stay at home orders. An abundance of...

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COVID-19 Temporary Appraisal Guidelines

VaCAP Board — Sun, 29 Mar 2020 12:30:03 +0000

Fannie and Freddie are giving preference to desktop appraisals over exterior appraisals, which quite frankly, is completely backwards from what most appraisers believe to be a more reliable appraisal. HUD and the Veterans Administration, on the other hand prefer exterior appraisals…

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Veterans Administration on Hybrid Appraisals

VaCAP Board — Fri, 22 Nov 2019 13:30:29 +0000

See the announcement by the Veterans Administration basically telling lenders and appraisal management companies we are going to protect our Veterans with sound appraisal practice. …the person providing property information to the appraiser must have entered into an agreement with the appraiser to do so. …the person who provides to the VA fee panel appraiser information must sign the appraisal report in the “Appraiser” section of the left side of the appraisal report. Assisted Appraisal Processing Program (AAPP) This section authorizes the Department of Veterans Affairs’ (VA) Secretary to issue guidance explaining the conditions under which VA permits VA fee...

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Data and Verification Sources Are Critical

Dave Towne — Fri, 15 Nov 2019 13:30:13 +0000

The genesis for this essay began when I heard from another appraiser that a VA report reviewer rejected the comparables “DOC Number” on the Verification Source(s) line. The reviewer said the “DOC Number” was not acceptable as a Verification Source. In fact, VA has said in a newsletter to appraisers that “… Assessor’s File Number may never be used as a Verification Source.” I disagree with that position, and this essay explains why. It also explains what appraisers should do to provide credible Data and Verification Source(s) in reports. Caveat: I don’t do VA assignments. I decided that a deeper dive...

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Appraisal Fee Transparency Bill Falls Short

Michael Ford — Thu, 24 Oct 2019 12:30:33 +0000

No system that continues to allow (or limit) defining appraisal complexity to the lender or AMC will ever achieve reasonable, or fair compensation for the appraiser…. We need to do much better than “half a loaf” in our appraisal legislative efforts. Especially when that half loaf does no more than enshrine continued price-fixing by lenders; with the support & blessing of REVAA… WorkingRE published news of recent House of Representatives action. The Bill addresses consumer disclosure of AMC fees among other issues. While the American Guild of Appraisers applauds the efforts of those that worked in good faith on this,...

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Loans Affected by the De Minimus Increase

Dave Towne — Fri, 11 Oct 2019 12:30:57 +0000

NCUA is advocating for an increase in the de minimus to $400K for loans provided by Credit Unions… The $400,000 de minimus is now ‘official’ but it doesn’t apply to most appraisals. Here’s an article from HousingWire, published on 10/8/2019, which correctly states when this change took effect, which you should read. From the article: Now, it’s important to note that the new rules do not apply to loans wholly or partially insured or guaranteed by, or eligible for sale to, a government agency or government-sponsored agency. What that means is that loans sold to or guaranteed by the Federal...

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De Minimus Impact on the Appraisal Industry

Dave Towne — Thu, 22 Aug 2019 12:30:53 +0000

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...

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Done Deal

Dave Towne — Thu, 20 Dec 2018 13:30:05 +0000

AMC Consolidaton – Class Valuation (formerly Class Appraisal) of Troy, MI is acquiring Landmark Network, of Van Nuys, CA. This document does not say ‘when’ it will occur, or if the transaction has concluded, but the way it is written, the implication is that it’s a “dun deel.” Anybody have any scuttlebutt on which of the hundreds of the remaining AMC’s might be next to be consolidated with another one? Landmark Network’s email: Hello! Eleven years ago, I set out to create a different kind of appraisal management company. One that truly valued our appraiser partners while embracing the efforts...

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