Appraisal Today

FEBRUARY 24, 2023

AMCs had taken over the mortgage-lending work. Under-Valuations Unrelated to Racial Bias Exploring Alternative Explanations for Appraisal Under-Valuation A critique of FHFA, Brookings, and Freddie Mac reports on Racial Bias. They also fail to note the size of these under-valuations. Or hit the reply button.

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Appraisal Today

NOVEMBER 4, 2022

Mortgage Lending You decide. It ruled that the lender did not owe the borrower a legal duty to assure that the independent appraiser’s valuation was correct. Excerpts: Accurate appraisals are essential to the integrity of mortgage lending. Do not use lender forms. Type of report. Use of appraisal. percent from 7.16

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Appraisal Today

MAY 19, 2023

My first appraisal job was updating data records for an assessor’s office, converting to computerized valuation in the mid-1970s. The reality is you don’t know what you don’t know, especially if you’ve never done non-lending appraisals. The average contract interest rate for 15-year fixed-rate mortgages increased to 5.96

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Appraisal Today

OCTOBER 28, 2022

Excerpts: …the United States Department of Veteran Affairs (VA), is known throughout the valuation community for respecting the work of appraisers and maintaining reasonable fee schedules. The questions: Fannie Mae and Freddie Mac are making desktop appraisals a permanent fixture in their valuation offerings. To read more, click here.

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Appraisal Today

FEBRUARY 23, 2024

Take Note of GSE Requirements To read more, Click Here My comment: If you do residential lending appraisals, read this article! The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.06 The average contract interest rate for 5/1 ARMs increased to 6.37

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Appraisal Today

FEBRUARY 3, 2023

23, 2023 My comment: This only applies to residential lending appraisals, of course. people who think technology is the golden spoon to accurate valuations. To read more, plus over 60 appraiser comments, click here My comments: This only applies to residential lending appraisals, of course. By Dave Towne, Jan. percent from 6.20

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Appraisal Today

MARCH 31, 2023

Fannie Mae: Appraisals are no longer the default option: Value Acceptance replaces Appraisal Waiver Fannie Mae updated its Selling Guide on March 1 to include more options for property valuations, saying that they are “moving away from implying that an appraisal is a default requirement.” To read more, click here My comments: Worth reading.

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Appraisal Today

JUNE 10, 2022

Here we consider how these “frictions” will behave as appraisal demand has dropped, just as each of the five forces have found ways to reduce or “eliminate” the need for valuation expertise. The Inevitable Cyclicality of Mortgage Lending. The average contract interest rate for 15-year fixed-rate mortgages increased to 4.62

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Appraisal Today

OCTOBER 7, 2022

The eight percent who cite other valuation methods most often explained that they use a hybrid approach or mostly an exterior appraisal. Excerpts: Lakeland engaged in a pattern or practice of lending discrimination by “redlining” in the Newark metropolitan area. The agreement with N.J. percent from 6.52 percent from 6.01

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Appraisal Today

NOVEMBER 10, 2022

The only appraisers who get sued are those performing appraisals for mortgage lending. Truth: The origin of this myth most likely correlates with the significant amount of valuation work performed for lending purposes – the more lending work, the greater the liability risk, the thinking goes. percent from 7.06

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Appraisal Today

APRIL 12, 2024

Retrospective appraisals, drive-by (exterior inspection) appraisals, and valuations from plans and specifications, are all valuation assignments where an appraiser develops an appraisal opinion without personally inspecting the property. But if for lending, it might be rejected on review by GSE computers or humans.

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Appraisal Today

SEPTEMBER 15, 2023

This typically happens when an appraiser turns in an appraisal with an appraised value opinion lower than the sale contract price. Richard Hagar, SRA, has a good book on Dave Towne’s comments (and many other client issues): For more info click here == Private money lending – no UAD, computer “reviews”, low fees, etc.

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Appraisal Today

FEBRUARY 16, 2024

Historical Properties and Their Unique Appraisal Approaches Excerpts: Appraising historical properties involves a complex interplay of factors, making it a specialized field within real estate valuation. Many downtown mixed-use buildings (retail and apartments) are in my city. Never use a lending form (such as a 1004) for estate work.

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Appraisal Today

AUGUST 25, 2023

And to ensure data procured through RPR can be used in the appraisal process, NAR and RPR have been actively engaged with lending agencies Fannie Mae, Freddie Mac, VA, and FHA to make them aware of this bridge solution for the appraiser community. Never be dependent on the ups and downs of lending again! What does your MLS have?

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Appraisal Today

MAY 26, 2023

Some appraisers feel that lenders should not provide them with the purchase and sale contract. Then that contract does not serve to color, cloud, or otherwise bias a value opinion. Appraisers analyze the purchase and sale contract to amass and verify data to have detailed data to use in the analytics of future assignments.

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Appraisal Today

MAY 12, 2023

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. Mortgage lending is very, very cyclical.

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Cleveland Appraisal Blog

MARCH 18, 2021

As a teenager, my friends would describe to me experiences they had in retail stores, in which they were watched uncomfortably closely by store clerks. Therefore, my opinion of value was in the mid-sixties, which was far below the contract price. We’ve all heard of predatory lending. WHAT SHOULD AN APPRAISER DO?

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Appraisal Today

OCTOBER 6, 2023

As this property data collector thing moves along, there continues to be no legitimate reason for Fannie Mae’s motivation to push this so hard other than they want the valuation process fully automated and can pay $25 for an untrained inspector to view a home. Valuation By Comparison by Mark Ratterman, MAI Book Review. percent from 7.41

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Appraisal Today

FEBRUARY 9, 2024

His law practice is dedicated to valuation issues. Back in the day, this protected the lender from lending more than the home/property is worth. MORTGAGE LENDING IS VERY, VERY CYCLICAL. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 6.80

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Appraisal Today

SEPTEMBER 29, 2023

Some appraisers, a true minority, have been able to transition to private, non-mortgage-lending appraisal work, but that’s not as easy as some advocate. And many appraisers who only know how to do mortgage lending assignments are reluctant to market themselves outside that confined space. The GSEs started keeping track in 71.

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Appraisal Today

NOVEMBER 10, 2023

They are working closely with FHFA on how to handle the risk associated with that—things like accuracy, condition, default risk, fair lending, and city vs rural. To read more, click here My comment: The valuation/appraisal part of the article is near the end. The average contract interest rate for 5/1 ARMs decreased to 6.76

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Appraisal Today

DECEMBER 15, 2023

fair lending laws has been on regulators’ radar in recent years. In terms of the total valuations (including waivers) the GSEs have processed in the last 12 months, PDCs have made up between 0.17 The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 7.07

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Appraisal Today

DECEMBER 16, 2022

Bill Rayburn gave a rousing and lively explanation of exactly what quality means in valuation at a recent meeting. Joe Minnich, a condo risk consultant, spoke on how loans secured by an individual unit in a condominium project have greater risk than found in typical SFR lending. To read more, click here. percent from 6.41

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Appraisal Today

OCTOBER 14, 2022

While that number may seem high to some, in the context of lending and property complexities, that is a 54% improvement in performance cited earlier in this article (from 35% 10 years ago). Inventory levels have an impact on property valuation, at least in the short term. The average contract interest rate for 5/1 ARMs increased to 5.56

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Appraisal Today

FEBRUARY 2, 2024

Appraisers must tread carefully when utilizing 2023 comparable sale data in valuation modeling and consider localized market trends. Impact on Appraising As I explained, the lending system has issues with properties capable of being used for five or more units. The average contract interest rate for 5/1 ARMs increased to 6.23

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