|
News By Edition
|
Valuation Review Edition
April 28, 2014
|
|
Building a defendable appraisal report — Part One
Posted Date: Monday, April 21, 2014
An appraisal report is often boiled down to a single number: the appraised value.
That number is the crux of the report, of course, but it is far from the only thing of importance in assessing a report’s credibility.
Being able to defend one’s conclusions in an airtight manner, in other words, being able to produce a credible report, is what clients are looking for from the appraisers they work with.
Essentially, a defendable report is the calling card of a quality appraiser.
Appraisers who can complete assignments in a timely manner and who have a diverse skillset are sought-after commodities, but if an appraiser’s report cannot hold up under scrutiny, the appraisal report isn’t worth the paper it is printed on.
Valuation Review talked with Scott Robinson, vice president of the Appraisal Institute, about the four steps that appraisers need to take to ensure they are producing credible reports that can be easily defended.
|
|
|
Industry leader forecasts impact of AMC supervision rule
Posted Date: Monday, April 21, 2014
Six federal agencies have issued a proposed rule that would mandate minimum requirements for the state registration and supervision of appraisal management companies (AMCs).
The proposed rule, authorized under section 1473 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, would grant those state agencies that certify and license individual appraisers the same authority to oversee appraisal management companies.
Valuation Review reached out to Keith Guenther, chief executive officer of USRES, a nationwide AMC, to get insight on how the proposed rule might impact the appraisal industry.
|
|
|
Review appraisers at greater risk from lawsuits, attorney says
Posted Date: Monday, April 14, 2014
The onus of responsibility for inaccurate appraisals has shifted in the post-bubble world of residential evaluations.
Negligence claims against appraisers are becoming less focused on the appraisers who make the actual valuations, and more centered on the review appraisers who check them over, according to a new piece in the Appraisal Institute’s Valuation magazine.
“One explanation for more lawsuits about reviews is the sheer volume of work being performed — more reviews are being performed now than ever before,” wrote Peter Christensen, general counsel for LIA Administrators & Insurance Services, a company that offers insurance and loss prevention information to appraisal professionals. “Another is that some review appraisers lack the necessary competency to perform the work and fail to understand their risk when performing reviews.”
|
|
|
Silence of FHFA head leaving industry in the dark
Posted Date: Wednesday, April 16, 2014
All has been quiet on the housing finance reform front — at least at the top of the Federal Housing Finance Agency (FHFA).
It seems that hardly a week goes by before someone new from Congress comes out with an updated proposal to rework the U.S. housing finance system and disband Fannie Mae and Freddie Mac. However, Mel Watt, the person in charge of the government sponsored enterprises, has been conspicuously absent from the conversation since he took over the FHFA in January.
"We have yet to see or hear Watt's vision for housing finance," Clifford Rossi, a former banker and risk executive at Freddie Mac, told Reuters. "He is still getting up to speed."
|
|
|
Wells Fargo applauded for accepting e-signatures
Posted Date: Monday, April 21, 2014
A leading provider of legally compliant electronic and digital signature processes recently applauded Wells Fargo Funding on its significant expansion in its acceptance of electronic signatures on mortgage-related documents. Following the Federal Housing Administration’s announcement in January that it would accept lender-generated loan documents electronically, the move by Wells Fargo Funding demonstrates continued momentum of electronic signature acceptance among financial service providers. Keep reading to see the details.
|
|
|
New book provides comprehensive guidance for valuing green homes
Posted Date: Wednesday, April 9, 2014
A new book published this week by the Appraisal Institute, “Residential Green Valuation Tools,” provides a comprehensive overview of the valuation of green and energy efficient homes. The book describes the main elements of green homes — site, water and energy efficiency, indoor air quality, materials and operations and maintenance — and presents case studies to illustrate common scenarios and problems that arise in valuing high-performance homes. Keep reading to see how the book can get you get up to speed on the latest energy efficient home features.
|
|
|
Fannie, Freddie affordable housing programs miss target
Posted Date: Monday, April 14, 2014
Government sponsored enterprises Fannie Mae and Freddie Mac have been on record with their intention to offer owner-occupants first crack at the foreclosed upon homes that their loans back. However, data shows that investors are increasingly taking a bigger cut of the GSE-owned housing pie because of pricing practices that undermine potential buyers.
Bill German, spokesman for Freddie Mac, told Bloomberg that its goal is to sell two-thirds of its repossessed homes to owner-occupants.
“A strong emphasis on selling to owner-occupants is consistent with Freddie Mac’s mission to foster homeownership opportunities and will help stabilize communities and local home prices,” German said.
Fannie Mae also aims to do “a few things to try to market properties to owner-occupants, and the goal is to sell to them as often as we can,” Andrew Wilson, spokesman for Fannie, told Bloomberg.
|
|
|
Home equity enjoying resurgence across the country
Posted Date: Monday, April 21, 2014
RealtyTrac’s newly released U.S. Home Equity & Underwater Report for the first quarter of 2014 shows there is both good and bad news for homeowners across the country. The report’s data, which provides counts of residential properties based on several categories of equity — or loan to value (LTV) — at the state, metro and county level, indicates that while millions of homeowners are still seriously underwater, the equity trend is moving in a positive direction for most of the country.
The bad news is that there were 9.1 million U.S. properties seriously underwater — where the combined loan amount secured by the property was at least 25 percent higher than the property’s estimated market value —in the first quarter of this year. This demographic made up 17 percent of all residences.
|
|
|
Homeowners want green features — depending on the price
Posted Date: Wednesday, April 9, 2014
While going green might be the wave of the future, a new survey shows that homebuyers are currently not willing to put their money where their mouth is unless they can see direct returns.
As part of the National Association of Home Builders’ study, “What Home Buyers Really Want: Ethnic Preferences,” homebuyers of different ethnic backgrounds were asked a series of questions regarding how important green and energy efficient home features were to them to see how preferences shift among demographics.
The analysis differentiated participants into four groups: white (non-Hispanic), African-American (non-Hispanic), Hispanic and Asian. All groups admitted that environmental-friendly features were important, but were ambivalent about which green features were worth the investment.
|
|
|
Arizona appraisers had no liability for aborted home sales
Posted Date: Wednesday, April 16, 2014
Three appraisers whose appraisals of for-sale properties were appreciably lower than the properties’ contracted sale prices were not liable to the seller whose deals fell through when lenders refused to loan the buyers’ requested amount, an Arizona appellate court has ruled.
Each of the three appraisers cited the Restatement (Second) of Torts in denying liability for any negligence.
The three cases were consolidated on Southwest’s motion because of their similarities.
|
|
|
Appraiser may be liable to third party for inflated valuation
Posted Date: Monday, April 7, 2014
The Idaho Supreme Court concluded that an appraiser could be responsible for an inflated property appraisal for a home loan that ended in default, even though the lender who made the loan was not the original client who commissioned the appraisal.
The case, CUMIS Insurance Society Inc. v. Massey (No. 40002), was based on an appraisal of Steven and Valerie Hruza’s real property performed by Wade Massey, owner of Capitol West Appraisals. The couple was seeking a loan from Clearwater Mortgage, a lender who commissioned Massey to appraise the property.
In June 2007, Massey’s Summary Appraisal Report showed the Hruzas’ property to have a market value of $1.15 million. However, Clearwater decided to decline the Hruzas’ loan before even considering the appraisal. After Clearwater declined the loan, both Massey and Clearwater jointly agreed that the Summary Appraisal Report contained errors, that the errors would not be fixed and that Massey would not be paid for the appraisal.
|
|
|
Accurate’s software integration opens door to valuation solutions
Posted Date: Monday, April 14, 2014
Accurate Group Holdings Inc. announced that it has integrated its proprietary vendor management and compliance software platform with a leading provider of automation solutions for the mortgage industry to give users access to its closing and valuation solutions. Keep reading to see who will benefit from the integration.
|
|
|
Bank names new AMC to family of vendors
Posted Date: Monday, April 21, 2014
A nationwide valuation solutions provider has been named an approved appraisal management company by one of the top mortgage originators in the country. The AMC is an industry authority on appraisal compliance who works closely with industry organizations to train and educate appraisers and mortgage bankers on regulatory compliance. Keep reading to learn about the new partnership.
|
|
|
Projecting 2014 housing market is a tough call, report shows
Posted Date: Monday, April 21, 2014
Freddie Mac has released its U.S. Economic and Housing Market Outlook for April, showing that recent data on the housing market continues to be noisy with mixed signals heading into the spring home-buying season. Keep reading to see why the market is showing conflicting signals.
|
|
|
NBA record-holder to share journey from auto mechanic to All-Star
Posted Date: Monday, April 21, 2014
At an age when most NBA All-Stars’ time in a garage is spent weighing what Lamborghini or Ferrari to add to their fleet, Mark Eaton was an auto mechanic talking to customers about whether they wanted regular or high-performance motor oil in their Fords and Chevys. However, the 7-foot-4-inch Eaton would go from a mechanic to a 12-year career with the Utah Jazz where he was named the NBA’s Two-Time Defensive Player of the Year and selected to play in the 1989 All-Star Game. Continue reading to see how Mark is bringing his lessons for personal and professional success to the 2014 National Settlement Services Summit (NS3) in June.
|
|
|
Tight credit dampens builder optimism
Posted Date: Wednesday, April 16, 2014
Builder optimism in the U.S. market remains tempered, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for April. The index gauges builder perceptions of current single-family home sales and sales expectations for the forthcoming six months as “good,” “fair” or “poor.” Keep reading to see the things that are restraining builder confidence.
|
|
|
Economists dissect housing market
Posted Date: Wednesday, April 16, 2014
CoreLogic released its April MarketPulse report on April 15. The global provider of property information and analytics issues the report as a comprehensive look at the prevailing trends impacting the housing industry every month. In the April report, CoreLogic economists analyzed the rise in U.S. construction employment, discussed the possibility of a housing short-sale cliff and debated whether rising rates and regained equity will incent home equity loan demand. Keep reading to see what the experts have to say.
|
|
|
Mortgage insurer goes national
Posted Date: Wednesday, April 16, 2014
A mortgage insurance company has announced that with the approval of its insurance license in the state of Wyoming, it is now licensed to write mortgage guaranty insurance in all 50 states and the District of Columbia — enabling low downpayment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower’s default. Keep reading to see which company is branching out.
|
|
|
|
USPAP’s top five misunderstood guidelines explained – Part Two
Posted Date: Monday, April 14, 2014
The Appraisal Foundation’s revisions to the Uniform Standards of Professional Appraisal Practice (USPAP) for 2014-15 took effect Jan. 1. John Brenan, the director of appraisal issues at The Appraisal Foundation, said that hardly a day goes by when the foundation doesn’t field a question about how particular USPAP guidelines apply.
In Part One of our story, Brenan talked to Valuation Review about two of the top five frequently misunderstood areas of USPAP. Here are the remaining three things appraisers need to know:
Developing a proper scope of work
Brenan noted that, while it is incumbent on the appraiser to cater to their specific client’s needs for each individual assignment, many appraisal professionals begin working on an assignment without developing a proper scope of work.
|
|
|
Banks turn attention to homes in foreclosure limbo
Posted Date: Monday, April 14, 2014
RealtyTrac released its U.S. Foreclosure Market Report for March and the first quarter. The report shows that banks are just now turning their attention to homes stuck in the foreclosure pipeline. Keep reading to see the details on foreclosure activity in the country.
|
|
|
Appraisal Subcommittee regulatory board gets new member
Posted Date: Monday, April 14, 2014
The Appraisal Subcommittee Advisory Committee for Development of Regulations has a new member tasked with expressing the views of appraisal management companies on proposed ASC regulations. Keep reading to see which industry veteran will be helping shape the committee’s regulations for the next two years.
|
|
|
Homebuyers entering market find rude welcome
Posted Date: Wednesday, April 9, 2014
Many potential homebuyers looking to enter the market this spring are being met by a stark reality: Affordable housing is out of reach.
The main issue is that steadily rising home prices are outpacing income growth in many areas of the country.
According to CoreLogic’s recently released February Home Price Index, home prices nationally increased 10.7 percent in February compared to February 2013 and 0.9 percent month over month compared to January. Also, all 50 states and the District of Columbia showed year-over-year home price appreciation when distressed sales were excluded.
|
|
|
Homeowner attitudes could signify more home sales this spring
Posted Date: Wednesday, April 9, 2014
Fannie Mae has released the results of its March National Housing Survey. The survey, which shows respondents’ attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances and overall consumer confidence may portend a pickup in home buying and selling this spring. Keep reading to see why.
|
|
|
New index shows cities with strongest post-recession recovery
Posted Date: Wednesday, April 9, 2014
The National Association of Home Builders released the National Association of Home Builders/First American Leading Markets Index April 7. The monthly index, which uses data to assess the overall economic and housing market health of a given area, shows which markets are recovering from the recession and which are still falling behind. Keep reading to see which markets are enjoying the strongest rebounds.
|
|
|
|