14th May 2017

Mortgage Fraud Risk Increases Nationwide

Mortgage fraud risk is up across the country, according to the CoreLogic National Mortgage Application Fraud Risk Index (FRI) for Q1 2017. The FRI is a measure of loan-application level fraud risk in the mortgage industry, based on residential mortgage loan applications processed by CoreLogic Loan Safe Fraud Manager.

The index jumped 8 percent in Q1, up to 132 from 113 a year ago and 122 last quarter. CoreLogic notes that although this is the highest level for the Index since Q3 2010, at that time post-crisis controls against mortgage application fraud were tight. The CoreLogic Mortgage Fraud Consortium grew from 50 percent to 60 percent of application s between Q4 2016 and Q1 2017. …continue reading the rest of this post: Mortgage Fraud Risk Increases Nationwide

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10th May 2017

Tennessee Governor Signs Law Protecting Appraisers

Tennessee Governor Signs Law Protecting Appraisers

On April 28, Tennessee Gov. Bill Haslam signed into law HB 376 that will establish a new statute of limitations regarding civil lawsuits and disciplinary actions against real estate appraisers.

As enacted, any action to recover damages against a real estate appraiser must be brought within one year from the discovery of the act of omission giving rise to the action. However, in no event can an action be brought more than five years after the date the appraisal was performed.

Additionally, the Tennessee Real Estate Appraiser Commission cannot consider a complaint for a disciplinary acting that relates to an appraisal that was completed more than three years before the complaint was submitted. The new law will take effect July 1, and will apply to appraisals performed after that date. …continue reading the rest of this post: Tennessee Governor Signs Law Protecting Appraisers

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3rd May 2017

AI Lobbies to Modernize Appraisal Regulatory Process

AI Lobbies to Modernize Appraisal Regulatory Process

More than 100 Appraisal Institute professionals will go to Capitol Hill May 4 to urge congressional support for the modernization of the appraisal regulatory process.

Attendees of AI’s annual Leadership Development and Advisory Council conference, held May 3-5 in Washington, will lobby lawmakers to take legislative action to address appraisal modernization and the regulatory burdens that appraisers face. A hearing on the issue was held in November 2016, but so far no legislation has been introduced.

The Appraisal Institute believes that legislation is vital because the ranks of real estate appraisers have significantly declined in recent years, and AI research projects a further decline in the appraiser population over the next five to 10 years.

Key issues the Appraisal Institute wants to see addressed: …continue reading the rest of this post: AI Lobbies to Modernize Appraisal Regulatory Process

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25th April 2017

Recent Appraiser Jobs Posted for Hiring

Residential Real Estate Appraiser

Allyson Appraisal Service, IncWestfield, NJ
Looking for state certified residential appraisers to work on a split fee basis in New Jersey or in the counties of Westchester, Rockland, Manhattan, Brooklyn,…

 

Residential Real Estate Appraiser

The Property Sciences Group, Inc.Elk Grove, CA
Certified Residential Appraiser. Top appraisers earning over $\*150K/year. Dedicated internal associates assist our appraisers with document collection,…

 

Real Estate Appraiser

REAL ESTATE VALUATION, INCAtlanta, GA 30318
Appraiser must have experience and willing to complete a number of appraisal reports per month. We are currently looking for a Certified or Licensed Real Estate…

 

…continue reading the rest of this post: Recent Appraiser Jobs Posted for Hiring

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19th April 2017

HUD Issues Fraud Alert for Appraiser Identity Theft

The U.S. Department of Housing and Urban Development’s Office of Inspector General issued a Fraud Alert on Feb. 22 after uncovering a series of appraiser identity theft cases.

The schemes varied but resulted from someone using a state certification number of a Federal Housing Administration roster appraiser, HUD’s alert said, noting that the FHA roster appraiser was unaware of the misuse until it came to light, usually by accident. HUD said that most of the schemes happened when an FHA roster appraiser provided his or her personal identification number for the desktop appraisal software to a colleague or supervisor.

“We applaud the HUD Office of Inspector General for raising awareness about appraisal related identity theft,” Appraisal Institute President Jim Amorin, MAI, SRA, AI-GRS, said. “Given the range of interests in appraisal results, and the advent of electronic documentation and signatures, identity theft presents a significant risk to lenders and consumers, and it’s an issue that the Appraisal Institute has provided education and guidance to the industry for many years.”

The Fraud Alert said that over the last couple of years, HUD has received more than a dozen reports of identity theft by colleagues or supervisors. Examples were cited in Washington, Illinois and California.

HUD’s two-page Fraud Alert, which includes do’s and don’ts for appraisers, can be found on the HUD website.

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17th January 2017

Hearing entitled “Modernizing Appraisals: A Regulatory Review and the Future of the Industry”

Witness List

Archived Webcast

 

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6th October 2016

HUD Grants Appraisers a Reprieve

HUD Grants Appraisers a Reprieve

Home appraisers received a reprieve in the form of a clarification of a requirement issued earlier this year in HUD’s recentupdates to FHA’s Single-Family Housing Policy Handbook.

When published earlier this year, the handbook contained a new requirement for appraisers to physically observe and operate appliances in a home while an appraisal was being conducted. Subsequently, realtors and appraisers expressed concerns that this requirement effectively turned appraisers into inspectors and exceeded the previously understood appraiser duties—and that it would ultimately hurt the consumer, resulting in longer and more costly appraisals.

The new guidelines clarify the requirement; appraisers are now only required to make sure that certain appliances that contribute to a property’s market value are physically present, and appraisers are not required to operate those appliances.

“Appraisers have a lot on their plate, and their work is important to ensuring buyers, sellers, lenders and everyone else involved in a transaction has a credible source to turn to when determining the value of a property,” National Association of Realtors President Tom Salomone said. “Requiring appraisers to perform duties that are better left to a home inspector only slows the process while potentially adding unnecessary costs. FHA did appraisers and consumers a big favor by clarifying appraiser duties and specifically listing the appliances to which this new guidance applies. While there are still improvements to be made, FHA’s announcement provides our realtor members with additional certainty as they continue playing a critical role in the home buying and selling process.”

The update to the requirements alleviates other problems as well. In some cases, appraisers were being blamed when homeowners reported after the appraisals that appliances were either broken or malfunctioning.

“The greatest impact of the revision to the HUD Protocol requirements relating to operational verification of appliances and fixtures is the relief for FHA panel appraisers from concerns of testing a malfunctioning appliance or fixture or being blamed for having broken an appliance or fixture as a result of testing during the inspection of the property,” said Greg Stephens, Chief Appraiser/Compliance with Metro-West Appraisal Co. “To ensure compliance with the previous guideline, some lenders were actually requiring the FHA panel appraisers to provide photographs of the actual operation of each fixture and appliance within the property being appraised.”

…continue reading the rest of this post: HUD Grants Appraisers a Reprieve

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18th July 2016

Anyone need an appraiser trainee in Los Angeles?

Elena Ulitskaya made a post recently on Facebook.  She got a little flamed only for utilizing an additional tool to reach appraisers through the ‘I am an appraiser’ facebook group.  She also received a lot of positive feedback as well and I thought I would see if I could help her out by making a post for her.

If you are seeking an appraiser trainee in Los Angeles, you should interview her.  Thanks everyone!

Here is her post from facebook:

Hello!
I am a licensed as an appraisal trainee in the county of Los Angeles, CA. I am a motivated and intelligent individual with an ability to learn quickly, seeking a career as a Real Estate Appraiser Trainee, where my recent education and personal qualities can be utilized best. If you are a supervisor looking for a hardworking and competent trainee, you have found your match.
If given the opportunity, I would work the best of my abilities to use all of my knowledge and prove my full dedication to the profession. I’m sure that disappointment would not be an issue because I have strong personality, I’m focused, can handle work pressure and I can guarantee that I will do whatever it takes to become valuable and successful team member. I could work with minimal or even no compensation until supervisor would feel more confident in me and my abilities.

I truly appreciate your time and effort to help me out!

Elena Ulitskaya

Please contact me by email: elenul@gmail.com

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18th July 2016

Minnesota, Louisiana and Illinois See Action on AMC Legislation

Minnesota, Louisiana and Illinois all took action in late May on legislation concerning appraisal management companies, the Appraisal Institute reported June 8. The governors in two states signed AMC legislation into law while a third governor is reviewing the legislation proposed in his state.

Minnesota Gov. Mark Dayton on May 23 signed into law SF 2665, legislation that makes several changes to the state’s existing appraiser licensing and appraisal management company registration law, which originally was enacted in 2010.

The new law changes definitions to clarify that entities utilizing employee appraisers to complete appraisal assignments are not AMCs. The law also clarifies that entities with more than 15 independent contractor appraisers in Minnesota or more than 25 contractor appraisers in two or more states are AMCs and therefore subject to the state’s AMC registration and oversight law.

The new law also will require AMCs operating in Minnesota to compensate appraisers at a rate that is reasonable and customary or otherwise face disciplinary action by the state’s Department of Commerce. The legislation outlines how AMCs can satisfy the payment requirements. AMCs also will be required to pay appraisers within 30 days from the date that the appraiser provided their report to the AMC or 30 days from the date the AMC transmitted the report to their client, whichever comes first.

Additionally, the Minnesota law eliminates a provision in the state’s appraiser licensing and certification law that had permitted the Minnesota Department of Commerce to charge appraisers the costs of an investigation even if the investigation found no violations on the part of the appraiser.

In Louisiana, Gov. John Bel Edwards on May 26 signed into law HB 804, legislation that clarifies that AMCs are required to compensate appraisers in accordance with the reasonable and customary fee provisions contained in federal law. The law also gives the Louisiana Real Estate Appraisal Board the authority to collect from AMCs the required National Registry Fees.

The Illinois General Assembly on May 31 completed action on HB 3333, a bill that would create an Appraisal Management Recovery Fund to be used in lieu of the existing surety bond. This Fund will be used to provide restitution to Illinois state-credentialed appraisers when they have not been paid by a failed AMC but have obtained a final judgment from a court. The fund will be subsidized by a fee (up to $500) that each AMC operating in Illinois has to pay until such time as the fund reaches $500,000. Once that amount is reached, the fee will no longer be imposed unless claims are paid.

HB 3333 currently awaits consideration by Illinois Gov. Bruce Rauner.

Review Minnesota SF 2665.

Review Louisiana HB 804.

Review Illinois HB 3333.

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23rd June 2016

Sam Heskel: Appraisers Are Badly In Need Of A Raise

PERSON OF THE WEEK: Sam Heskel is CEO of Nadlan Valuation, a Brooklyn, N.Y.-based appraisal management company (AMC). MortgageOrb recently interviewed Heskel to discuss the most pressing issues and challenges facing the appraisal industry today.

Q: There’s been a lot written about an appraiser shortage. Does it really exist, and how serious is it?

Heskel: It’s definitely real. The vast majority of appraisers are nearing retirement age, and there aren’t enough new people coming into the industry to replace them. According to the Appraisal Institute, nearly two-thirds of appraisers are age 51 or older, 24% are between 36 and 50, and only 13% are 35 or younger. In addition, a lot of those who are working are simply getting burned out. Increased regulations are part of the problem.

Then there’s the problem of compensation. Regulations and guidelines enacted since the mortgage meltdown have added many additional requirements for appraisers, yet their fees have not gone up accordingly. So some experienced appraisers are fed up with the situation – they’re getting out or retiring. For the same reasons, it’s not an attractive field to get into for younger people. Becoming an appraiser today is a lot harder than it used to be. There’s more education and licensing required. As more appraisers retire or leave the business, not enough new people are coming in to replace them. Also, nowadays lenders won’t accept work from appraisal apprentices. If you want to become an appraiser, you need to put in two years as an apprentice. It has become more difficult to find a company willing to take on and train an apprentice for 24 months, especially when the appraisal reports cannot be submitted to a lender.

Q: What places are impacted most by the shortage?

Heskel: Rural areas seem to be affected more than the big cities. We’re already seeing a shortage in some areas. There are just not enough appraisers to go around, and they have a big area to cover. This will have a real impact on the mortgage and home buying industries. Closings will be delayed, maybe by several weeks, depending on the area. This problem is exacerbated during the spring and summer months because housing sales go up, so appraisers are busier.

Q: Why are appraisal fees increasing?

Heskel: Part of the reason is the appraiser shortage. Already, we’re seeing appraisers in some rural areas charging $800 for an appraisal, which is about double what lenders are usually willing to pay.

Secondly, appraisers are badly in need of a raise. It’s long overdue – and fully justified. Many haven’t gotten a raise in about 15 years, even though their workload, responsibilities and liabilities have grown. There’s a lot more regulation, too, and its resultant liability. The Dodd-Frank law and the Consumer Financial Protection Bureau are certainly beneficial, but ensuring compliance with them adds to appraisers’ costs because it takes longer to complete a compliant, quality report.

Let’s not forget that another party has been added to the process – namely AMCs – to manage the entire appraisal process. Appraisers do the actual, on-site property inspection and valuation, while AMCs, such as Nadlan, protect all parties to the deal – the lender, the buyer and the seller – by vetting each appraiser to ensure the appraisal is performed by the best-equipped professional for the particular property. We then review the quality and accuracy of the appraiser’s work, track and manage the data on the properties they appraise, and make sure they’re in compliance with all national and state regulations.

Because of our work, appraisal reports can be turned around faster and with more accuracy, which benefits both home buyers and lenders. We recognize the hard work that appraisers do, so we are considering a new payment policy for our appraisers. Appraisers who complete their appraisal reports within the agreed-upon time will be paid by Nadlan within seven to 10 days, following revisions and reviews.

Q: What are the biggest challenges you face with the mortgage lenders that hire you, and how do you resolve them?

Heskel: Lenders and borrowers hate surprises. The consumer is willing to pay $300,000 to buy a home, but the appraisal comes in at only $280,000. The buyer is naturally upset because he thinks it will cost him the deal, and of course the lender, our client, is also upset. This is where our approach makes a difference. If the property appraises short of the contract price, we communicate with all of the parties involved.

The same goes for refinances, which can often have even a bigger disconnect between home owner estimates and the actual appraised value because there isn’t a real estate agent involved. The borrower estimates his home is worth $700,000, and the appraisal comes in at $450,000. Borrowers can be unrealistic when it comes to estimating their homes’ value. They blame it on the appraiser and the lender.

I advise people to do some research to make sure they’re realistic. We try to educate lender clients on the rules of appraisals and the things we look for so the lender better understands them. We provide a checklist to lenders and mortgage brokers to share with their sales teams, real estate agents and borrowers. Ultimately, it results in less disappointment and aggravation on everyone’s part.

Q: What sets Nadlan apart from other AMCs and appraiser companies?

Heskel: It’s the simple human touch and our superior service. Clients can reach me at almost any time of the day.

Nadlan started out mainly working with small- to medium-size banks so we would be able to deliver personalized service. Today, we’ve expanded, and we’ve carried over with that same approach to the larger lenders. We provide the same personalized service, no matter what size the lender is.

Our appraisal reports are accurate. Everything starts with getting the right appraiser to look at the property, and we feel that we have the best appraisers in the industry. Each of our appraisers is pre-screened and certified in his or her region. Reports are then sent through the most up-to-date software to ensure they are compliant with all national and regional regulations. We then go one step farther and review the final report manually to make sure everything is completely accurate. Underwriters appreciate the time they save, knowing that an expert has already reviewed the report for accuracy and validity.

Lenders also appreciate that we turn around appraisal reports faster and with more scrutiny than most other AMCs. They like anything that will help expedite the transaction for their borrowers, and Nadlan does that. Ultimately, with our approach, our lender clients know that we care.

Q: What is your forecast for the housing market, especially in the New York tri-state area where you are located?

Heskel: In New York City, the housing market is strong. There’s only so much available real estate, and that keeps prices high. In Manhattan and the other four boroughs, real estate will continue to be strong. The high-end luxury condo market in Manhattan has flattened slightly, but that market overall still remains very strong.

There’s an interesting story unfolding in the borough of Brooklyn, where some of the northern neighborhoods, including Williamsburg and Bushwick, have become very hot with rising rents and home prices. But that could change. The Metropolitan Transit Authority announced a few months ago that it is planning an 18-month to 24-month renovation on the L Train, the subway that transports Bushwick and Williamsburg residents into Manhattan and back home again. It may have a big impact on rental prices and, ultimately, home prices in that area.

Although work isn’t expected to begin until late 2018 or 2019, some real estate experts are even now bracing for the impact such a move would have on commercial, multifamily and residential housing, especially in hot spots such as Williamsburg and Bushwick. We’ll be watching the developments carefully.

 

repost from: http://www.mortgageorb.com/sam-heskel-appraisers-are-badly-in-need-of-a-raise

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