19th December 2014

Watch out for this advice from the The Wall St Journal

Now we have another thing to watch out fore.  Informing the appraiser…


Bad Advice from The Wall St Journal

Low appraisals are rare for Bank of America ’s jumbo mortgages compared with two years ago, says John Schleck, senior vice president, centralized sales executive for Bank of America. “With rates this low and values pretty stable, it may be a good time for a borrower to step in before values go higher,” he adds.

If an appraisal does come in lower than expected, here are a few tactics a borrower can try:

Higher LTV jumbos. More lenders, including Bank of America and Wells Fargo , are offering jumbo mortgages at 85% loan-to-value ratio.

• Inform the appraiser. While federal regulations forbid lenders from interacting directly with an appraiser, a refinancing homeowner can drop the needed loan amount into conversation during an appraiser visit, Mr. Carson says. Real-estate agents also can provide information about a property to the appraiser.

Rebuttal. A last recourse is for the lender to file a rebuttal to the appraisal- management company, pointing out errors and suggesting alternate comparables. However, these rarely result in an amended appraisal, Mr. Carson says.

posted in Appraiser News | 0 Comments

18th December 2014

Report: Housing Market Improving, But Slowly

While a 2015 housing industry forecast released Dec. 3 by real estate site Trulia noted that the Great Recession is still casting a shadow over the housing market, it also revealed that three of five major measures for tracking housing health are getting back to normal.
1. Home price gains will slow but affordability will worsen
Price gains slowed in 2014 and Trulia predicted more of the same in 2015. The slowdown has been especially sharp in metros that had a severe housing bust followed by a big rebound. Now, prices nationwide are just 3 percent undervalued relative to fundamentals, which leaves fewer bargains and little room for prices to rise without becoming overvalued. Also, with consumers expecting 2015 to be a good year to sell a home, more properties could be foisted on the market and further cool prices. Despite slowing home price gains, affordability could worsen in 2015 because even small price increases could outpace income growth and because the strengthening economy could increase mortgage rates.
2. The rental market will stay strong
Rental supply will increase in 2015, and demand will stay strong, driven by young people moving out of their parents’ homes; recent job gains for 25-34 year-olds should lead to this rise in household formation. The 2014 apartment construction boom will mean more supply in 2015 as multifamily properties are completed. The expected surge of renters probably will cause the homeownership rate to fall.
3. Single-family starts and new home sales could disappoint
While apartment construction is breaking records, single-family housing starts and new home sales are still only half of normal levels — although they’re expected to improve in 2015. The vacancy rate for single-family homes is still near its recession high, which discourages new construction, but as the apartment construction boom has shown, when there’s demand, builders will build. The bottom line is that buyer demand for single-family homes hasn’t recovered enough to support near-normal levels of single-family starts or new home sales.


posted in Appraiser News | 0 Comments

8th December 2014

Appraisal hypocrisy hits home

By Jeff Lazerson, Special to USA TODAY

repost from: http://www.usatoday.com/story/money/personalfinance/2014/12/06/appraisal-real-estate/19906355/

Before the mortgage meltdown and the resulting Great Recession, you paid a reasonable price for an appraisal, and your loan officer typically received a reasonable opinion of value that led to your purchase or refinance getting funded.

Not so much anymore. Swift and furious post-crisis reaction from regulators gave birth to the 2009 Home Valuation Code of Conduct or HVCC, and the federal Dodd-Frank Law, passed in 2010, (which made HVCC statutorily mute) making things far worse for you in terms of appraisal cost and resulting valuations.

Appraisal charges have gone up roughly 33%. “Appraisals were $375 before, and since HVCC the prices went up to $500,” said Yorba Linda, Calif., appraiser Myles Lawson.

The Federal Housing Finance Agency, the Consumer Financial Protection Bureau and the Appraisal Subcommittee – a federal agency that reviews state regulators of appraisers -could not point to any post-crisis publicly available data on appraisal accuracy when contacted for this column.

Ask any veteran loan originator. The No. 1 reason that transactions fall apart is low-ball appraisals, not tight credit standards. …continue reading the rest of this post: Appraisal hypocrisy hits home

posted in Appraiser News | 0 Comments

4th December 2014

TSI Appraisal is Hiring Appraisers

TSI Appraisal Management Company

I totally stand behind TSI appraisal and would recommend any appraiser looking to become an employee of one of the good AMCs out there to find out more about TSI Appraisal.

TSI Appraisal is expanding its appraisal network across the United States. We’re seeking highly skilled candidates to fill numerous open staff appraiser positions in these areas:

  • Austin, TX
  • Brownsville, TX
  • Dallas, TX
  • Detroit, MI
  • El Paso, TX
  • Fort Worth, TX
  • Houston, TX
  • McAllen, TX
  • San Antonio, TX

Check out the amazing benefits that you’ll get as a TSI Appraisal staff appraiser:

  • An award-winning benefits package including healthcare, vision and dental coverage
  • Opportunity to work with a team of appraisers dedicated to your success
  • A program built for appraisers by appraisers
  • A consistent work volume with first choice of assignments in your coverage area

TSI Appraisal, a division of Title Source, is a leading Appraisal Management Company (AMC) that provides a variety of valuation products and services nationwide. TSI Appraisal facilitates over 500,000 appraisals annually. We utilize industry best practices, advanced data analytic tools and employ and unparalleled commitment to customer service. The company was named as a Detroit Free Press Top Workplace for the last six consecutive years.

Find out more and complete our short appraisal evaluation at:

posted in Appraisal Management Companies | 0 Comments

5th November 2014

Appraisers helping Appraisers Destroy the Profession

 Local low-cost home appraisal company now in 23 states

Appraisers working for peanuts

AppraisalSave began in September 2013 with financial help from Start Garden.

October 24, 2014
| By Pete Daly |

An Internet-based home appraisal business launched a little over a year ago in Grand Rapids has expanded into 23 states over the past six months.

Founder Scott Packer and co-founder/partner Jason DeVries of AppraisalSave help real estate agents and homeowners get non-loan appraisals costing $175, which Packer and DeVries say is about half the cost of appraisals required by banks and appraisal management companies as part of the home loan process.

AppraisalSave is an online network of independent licensed appraisers, but it is not an appraisal management company, which are subject …continue reading the rest of this post: Appraisers helping Appraisers Destroy the Profession

posted in Appraiser News | 0 Comments

5th November 2014

Case Closed: Appeal Dropped in ESA/Chase Bankruptcy

With the appeal dropped and the Bar Order in full effect, it is unlikely that any further claims against Chase will be pursued for the over five million dollars in unpaid appraisal and BPO fees.

Editor’s Note: The take away of this decision sheds doubt on how many interpret federal law when it comes to lenders and AMCs; the court held there was no agency relationship between Chase and its AMC, Evaluation Solutions/ES Appraisal Services (ESA)- leaving many appraisers with unpaid fees.

Case Closed: Appeal Dropped in ESA/Chase Bankruptcy
By Isaac Peck, Associate Editor

Many appraisers will remember the bankruptcy case of Evaluation Solutions/ES Appraisal Services (ESA), an AMC whose primary client was JPMorgan Chase. After ESA declared bankruptcy in January 2013 with $11 million in unpaid debts, a number of real estate appraisers, agents, and brokers tried to file lawsuits against …continue reading the rest of this post: Case Closed: Appeal Dropped in ESA/Chase Bankruptcy

posted in Appraiser News | 0 Comments

22nd October 2014

Webinar on handling appraiser complaints

Aside from defending yourself against USPAP violations, there is a lot that appraisers and their attorneys often don’t understand about the regulatory/enforcement process and how to achieve the most favorable result.

Editor’s Note: Despite the many challenges appraisers face, there is always help available. See the free webinar offer below.

Complaints: What You Don’t Know Can Hurt You
By Bob Keith, MAA, IFA

Republished from WorkingRe.com

If you’re like me, you’ve probably never chosen to sky dive out of an airplane or bungee jump off a bridge. But if you had to jump out of an airplane or off a bridge, you’d probably choose to be with an expert right? Sometimes we don’t get a choice.

Sometimes we are forced into unfamiliar and dangerous territory. In these instances, what you don’t know can hurt you and that’s when it’s good to have an expert along.

Imagine you are forced to participate in defending yourself against a complaint that is being investigated by your state appraiser licensing board. You didn’t choose to participate in the process; you don’t really know anything about it and refusing to participate is not an option! In this event, what you don’t know can and probably will hurt you!

Aside from defending yourself against USPAP violations, there is a lot that appraisers and their attorneys often don’t understand about the regulatory/enforcement process and how to achieve the most favorable result.

I was a practicing appraiser for over two decades before becoming an AQB-Certified USPAP Instructor and subsequently the Executive Director of the Oregon Certification and Licensure Board. I served in that position for more than a dozen years and in that capacity I had Board-delegated authority to investigate complaints, determine USPAP violations, negotiate settlement terms with appraisers or their attorneys, and if necessary, pursue disciplinary actions through administrative hearings. I have been involved with hundreds of cases that were brought against appraisers.

Since my departure from the Oregon Board’s staff, I have counseled many appraisers across the country who were responding to complaints from their state appraiser licensing boards. My advice to them often involves not only USPAP compliance, but many times I am able to give advice of a different nature. …continue reading the rest of this post: Webinar on handling appraiser complaints

posted in Appraiser News | 0 Comments

24th September 2014

Review appraisers increasingly are being named as defendants in lawsuits

Editor’s Note: Real estate attorney Todd Stevens sees a trend in real estate law: attorneys are waking up to the potential liability of review appraisers. Couple this with the common misunderstanding among review appraisers that their risk is less than the author of the original report, and you get a burgeoning new area of litigation.

review appraisalReview Appraisal Liability
By Todd Stevens

In my practice, review appraisers increasingly are being named as defendants in lawsuits. In the typical transaction, the review appraiser has a contractual relationship with the lender while the original appraiser, retained by the mortgage broker or Appraisal Management Company (AMC) to perform the original report, does not. Lenders usually include language shifting some of the risk of loss to the reviewer. Lender/reviewer contracts often contain provisions permitting the party prevailing in a lawsuit to recover court costs as well as the fees paid to lawyers. Carefully read any contract you are asked to sign by a lender who is hiring you for review work. You may be able to negotiate out some of the more onerous provisions.

…continue reading the rest of this post: Review appraisers increasingly are being named as defendants in lawsuits

posted in Appraiser News | 0 Comments

16th September 2014

Free FHA Appraisal Webinar from HUD 09/18/2014

Webinar Title: FHA Appraisals
Date/Time: Thursday, September 18, 2014 1:00 PM – 3:00 PM
Event Location: Webinar – No Fee
Registration Link: http://www.visualwebcaster.com/event.asp?id=100315
Description: This session will provide an update and overview of FHA Single Family mortgage insurance appraisal requirements. It will address the most common appraisal questions and appraisal deficiencies. Property inspection requirements, appraisal validity period, case numbers, REO, manufactured homes, well and septic, attic and crawl spaces, lead-based paint, termite infestation, and the FHA Appraiser Roster will be addressed. FHA appraisers, underwriters and lender management personnel with all levels of experience may benefit from this session.
Special Instructions: On-line registration is required.

posted in Appraiser News | 1 Comment

11th September 2014

Appraisal Management Company Fined For Late Payments

Editor’s Note: Getting paid- more evidence that meaningful AMC legislation at the state level is an appraiser’s best friend.

Appraisal Board Sanctions AMC for Late Payments
By Isaac Peck, Associate Editor – WorkingRE.com

Getting paid by appraisal management companies (AMCs) in a timely fashion has long been a challenge for appraisers, who, in many cases, have been forced to wait months for their money. While several state boards have adopted “prompt pay” provisions into their appraisal regulations, it is rare for AMCs to face formal sanctions over late payments. In what many will view as a win for rank and file appraisers, the North Carolina Appraisal Board (NCAB) recently assessed a civil penalty against an AMC, Residential RealEstate Review, Inc., for its failure to comply with North Carolina regulations which require AMCs to pay appraisers within 30 days of the submission of the appraisal (N.C.G.S. 93E-2-4[d]).

The Investigation
The civil penalty originated from a complaint filed in December 2013 by an appraiser who claimed the AMC failed to pay within 30 days. After receiving the complaint, NCAB requested an audit of the AMC’s payments to North Carolina appraisers for the calendar year 2013. After examining the payment schedules of the AMC, Residential RealEstate Review, NCAB discovered that out of 1,277 appraisal assignments in North Carolina that year, 74 of those payments were late- received later than the 30 day deadline.

On August 12, 2014, Residential RealEstate Review signed a Consent Order admitting to violating the North Carolina Appraiser’s Act by its failure to pay appraisers within 30 days and agreeing to pay a $1,000 fine. The penalty for subsequent violations can be as much as $25,000.

…continue reading the rest of this post: Appraisal Management Company Fined For Late Payments

posted in Appraisal Management Companies | 0 Comments

3 Steps to get
More AMC Orders
We hate spam just as much as you do. If not more!