11th January 2019

Shutdown Affects Appraisal Orders and Borrowers

The partial federal government shutdown is complicating the already complicated process of getting and managing a mortgage. For one thing, the political storm is like severe weather at a major airport: You can expect minor delays or worse. Also, it could mean financial hardship for some federal government employees facing mortgage payments without their regular paychecks.

Here’s how the shutdown is affecting appraisers and home buyers.

If you’re getting a Federal Housing Administration or Department of Veterans Affairs loan, it’s likely you can expect delays in the underwriting process, and it’s possible your closing date will be pushed back as well.

There’s good news for most FHA-qualified home buyers: Single-family FHA loans are being funded, even during the shutdown. FHA home equity conversion mortgages (known as reverse mortgages) and FHA Title I loans (financing for permanent property improvements and renovations) are the exception — and won’t be processed during the shutdown. The processing of VA loans will continue, according to the Mortgage Bankers Association, but you may have to wait.

…continue reading the rest of this post: Shutdown Affects Appraisal Orders and Borrowers

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1st January 2019

NEW: Third Exposure Draft & Live Webinar

The Appraisal Standards Board has published the Third Exposure Draft of proposed changes for the 2020-21 edition of the Uniform Standards of Professional Appraisal Practice(USPAP). The draft proposes a reporting model that reduces specificity without diminishing USPAP reporting requirements.Do you have a comment? Please send your opinion!
UPCOMING WEBINAR:Learn more about the proposed changes in the Third Exposure Draft in this live webinar with Wayne Miller, 2019 Chair of ASB, and John Brenan, Director of Appraisal Issues.January 10, 20191:00 PM ET
Register
PUBLIC MEETING:Listen to discussions about the exposure draft proposals, and updates from The Appraisal Foundation, Appraiser Qualifications Board, and the Appraisal Subcommittee.
February 8, 20199:00 AM ET

The Saguarro HotelScottsdale AZ
Live Stream
In Person

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27th December 2018

NEW Non-Lender Marketing Guide

No More Middlemen

Have you noticed a significant decline of lender work over the past few months? Do you want to learn how to get more appraisal orders and finally get off the Appraisal Management Company roller coaster ride for good?

Like many appraisers I have seen a very significant decline in AMC orders over the past few months. I have been kicking myself in the butt for not getting started on my marketing to Attorneys, bail bond companies and credit unions prior to the interest rates going up.

Luckily I have a steady stream of attorney work that keeps me busy due to having a good contact management system in place and a steady client base of bail bond companies that refer their customers to me.

In this book I have detailed the steps that I take to create an inexpensive mailer to get more work from credit unions, attorneys and bail bond companies as well as the systems I use to continually get more referral work from all my past clients.

This is an incredible resource to those appraisers that are really looking to learn how do market your appraisal company and build up your client base so you don’t have to deal with seasonal and economic slow downs. This kind of work never goes away!

Possibly one of the most valuable aspects of this book is the spreadsheets that include:


9500+ Credit Unions
650+ Bail Bond Companies
350+ Direct Lenders

Click Here To Order

Chapters Include:

  • Appraiser Marketing Plan
  • 2019 Industry Outlook
  • How To Use the Spreadsheets Included With This Book
  • Will Rising Interest Rates Affect Your Appraisal Business?
  • Getting Off The Appraisal Management Company Roller Coaster Ride for Good
  • How to Market to Attorneys, Bail Bond Companies, Direct Lenders and Credit Unions
  • Step-by-Step Instructions to Make a Postcard Mailer From Card Design to Mailing
  • How To Get Low Cost Mailing Lists Made Targeting Local Divorce and Bankruptcy Attorneys
  • Tested Methods on How To Get More Referral Work From Past and Existing Clients
  • How to get a FREE Local Listing in Google and Optimize it for Best Results

You are going to especially love the Bail Bond marketing information. These orders are amazing and I have been focusing a lot of my efforts to getting more of their referrals. Why?

When I am referred a customer, I quote 3 fees. I base my first fee off of complexity of the appraisal. Lets say it is a standard tract home in San Diego. I quote them $400 and will inspect within 2 working days and have the appraisal report back to them within 2 days. The second fee is to inspect within 24 hours and have back within 24 hours for $800, and finally a same day inspection and deliver of the appraisal is $1200.

Which one do you think the client wants when they are trying to get a loved one out of jail? 75% of the time it is the $1200 fee for a simple tract home appraisal.

But you do have to follow up to keep these clients, and I have listed all the techniques I use to stay in contact with these clients so the work doesn’t go away.

This resource is jammed packed with information and the spreadsheets are 100% sortable by state to make it easy to create your postcard and do your mailing as noted in Chapter 5: Step-by-Step Instructions to Make a Postcard Mailer From Card Design to Mailing

The next chapter lays out the steps I use to get a massive list of Attorneys in my market area by an inexpensive virtual assistant.

Take the time today to order my New Book & Directory – No More Middlemen – Full Fee & Appraisal Managment Free : 2019 Appraiser Marketing Guide and List of 11000+ Direct Lenders, Credit Unions and Bail Bond Companies and finally get off the crappy appraisal management company roller coaster ride for good!

Click Here To Order

Bryan Knowlton
Appraiser Income
http://www.appraiserincome.com

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26th December 2018

Trulia predicts top 5 housing markets for 2019

(Credit: iStock)

Housing markets in coastal cities have been the hottest in recent years, but Trulia predicts that the top markets in 2019 will be inland cities where homes are more affordable.

San Francisco-based Trulia, a provider of online guides for home buyers and renters, predicts that these will be the five best housing markets next year:

…continue reading the rest of this post: Trulia predicts top 5 housing markets for 2019

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21st December 2018

FHA to Increase Loan Limits in 2019

HUD No. 18-145
HUD Public Affairs
(202) 708-0685
FOR RELEASE
Friday
December 14, 2018

HUD ANNOUNCES NEW FHA LOAN LIMITS FOR 2019
Loan limits to increase in more than 3,000 counties

WASHINGTON – The Federal Housing Administration (FHA) today announced the agency’s new schedule of loan limits for 2019, with most areas in the country to experience an increase in loan limits in the coming year. These loan limits are effective for FHA case numbers assigned on or after January 1, 2019.

…continue reading the rest of this post: FHA to Increase Loan Limits in 2019

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19th December 2018

VA no longer requires 1004MC

Department of Veterans Affairs

Washington, D.C. 20420

Circular 26-18-29

December 11, 2018

Market Conditions Addendum to VA Appraisal

  1. Purpose. The purpose of this Circular is to announce that the Department of Veterans Affairs (VA) no longer requires appraisers to include Fannie Mae Form 1004MC, in all VA appraisal reports.
  2. Background. Due to current conditions in the real estate market, Fannie Mae eliminated additional appraisal requirements to supplement the minimum standards set forth in the Uniform Standards of Professional Appraisal Practice. Specifically, Fannie Mae no longer requires appraisers to document an overview of neighborhood market conditions and trends in using Fannie Mae Form 1004MC. Reporting market trend activity will remain an important undertaking for appraisers and they will continue to do so even without the requirement to complete Form 1004MC.
  3. Action. Effective immediately, VA no longer requires appraisers to include this form in all VA appraisal reports. However, the market trend information is still required within the appraisal reports.
  4. Questions. All inquiries should be sent to colenders@vba.va.gov.
  5. Rescission. This Circular is rescinded January 1, 2020. By Direction of the Under Secretary for Benefits

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11th December 2018

Appraisal Institute Joins 17 Groups Opposing Credit Union Administration’s Proposed Action

CHICAGO (Dec. 4, 2018) – The nation’s largest professional association of real estate appraisers joined 17 other organizations Monday in saying it “strongly opposed” the National Credit Union Administration’s plan to reduce the number of non-residential real estate loans requiring appraisals.

The Appraisal Institute said it opposed the NCUA’s proposal to quadruple – from $250,000 to $1 million – the appraisal threshold for non-residential real estate loans. The appraisal threshold is the loan amount below which appraisals are not required. Increasing the threshold would drastically increase the number of non-residential real estate loans that would not require an appraisal.

Saying it was “deeply concerned,” the Appraisal Institute’s letter cautioned the NCUA that its proposal could recreate conditions that led to the housing market meltdown of the late 2000s. “The proposed rule is written purely through the lens of regulatory relief – not safety and soundness. It ignores the fact that the United States suffered through a financial crisis less than a decade ago,” the letter said. “If anything, the current market conditions beg for heightened due diligence by regulated institutions today – not a loosening of a fundamental risk management activity. “

The Appraisal Institute’s letter noted that the federal banking regulatory agencies – the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Federal Reserve Board – earlier this year approved increasing the commercial appraisal threshold from $250,000 to $500,000.

“We are deeply concerned the NCUA proposal, if finalized at $1 million for commercial real estate transactions, will result in a regulatory ‘arms race’ between the Agencies and the NCUA,” the letter said. “This would result in the NCUA – the agency with the least direct experience in overseeing business and commercial real estate lending – effectively driving the appraisal policies for the entire financial regulatory system.”

The Appraisal Institute and the other groups also noted that legislation adopted this year by the U.S. House (and awaiting action by the Senate) would link commercial appraisal threshold levels for two of the U.S. Small Administration’s most popular loan programs to those established by the federal banking regulatory agencies. “This (NCUA) proposal will likely impact not just credit unions and banks, but SBA lenders and risks associated with SBA loans,” the letter said.

The NCUA did not propose changes to the appraisal threshold for residential loans. “We support the NCUA’s proposal to maintain the $250,000 threshold level for residential real estate transactions,” the letter said.

Also signing the Appraisal Institute’s letter to the NCUA were:

  • Appraisers’ Coalition of Washington
  • Coalition of Appraisers of Nevada
  • Coalition of Pennsylvania Real Estate Appraisers
  • Collateral Risk Network
  • Illinois Coalition of Appraisal Professionals
  • Louisiana Real Estate Appraisers Coalition
  • Mississippi Coalition of Appraisers
  • National Association of Appraisers
  • New York Coalition of Appraiser Professionals
  • North Dakota Appraisers Association
  • Professional Appraisers Association of South Dakota
  • Real Estate Appraisers Association
  • Real Estate Appraisers of Southern Arizona
  • Rhode Island Real Estate Appraiser Association
  • South Carolina Professional Appraisers Coalition
  • Tennessee Appraiser Coalition
  • Utah Coalition of Appraisal Professionals.

Read the letter.

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7th December 2018

AI Strongly Rejects Proposed Residential Appraisal Threshold Increase

The Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve on Nov. 20 released a proposal to increase the threshold at which residential home loans require an appraisal to $400,000 from $250,000.
The rule would not apply to loans wholly or partially insured or guaranteed by, or eligible for sale to, a government agency or government-sponsored enterprise.
“The Appraisal Institute strongly objects to the FDIC’s proposal to raise residential appraisal thresholds,” said 2018 AI President James L. Murrett, MAI, SRA. “Congress just considered establishing a residential appraisal exemption and instead chose to enact a vastly different allowance involving appraisers in rural areas. This proposed rulemaking flies in the face of this action, and recreates the same type of environment that led to the housing crisis.
“By increasing the residential appraisal threshold from $250,000 to $400,000, FDIC would threaten the vital role that appraisers play in real estate transactions” said Murrett. “This action would undermine the crucial risk mitigation services that appraisers provide clients and users of appraisal services.
Murrett noted, “Raising the threshold means more evaluations will be allowed in place of appraisals. “The Appraisal Institute anticipates that will result in a return to the loan production-driven environment seen during the leadup to the financial crisis, where appraisal and risk management were thrust aside to make more – not better – loans. Apparently, the FDIC has learned nothing from that experience.
“Reducing regulations may seem to make sense initially, but the FDIC’s announcement raises significant safety and soundness concerns that the Appraisal Institute finds deeply disturbing,” Murrett said.

~ Note from Bryan @ Appraiser Income, we need to get involved, please send emails!!!!! I have included the emails below:

Please send comments:
ADDRESSES: Interested parties are encouraged to submit written comments jointly to all of the agencies. Commenters should use the title “Real Estate Appraisals” to facilitate the organization and distribution of comments among the agencies. Interested parties are invited to
submit written comments to:
Office of the Comptroller of the Currency: You may submit comments to the OCC by any of the methods set forth below. Commenters are encouraged to submit comments through the Federal eRulemaking Portal or e-mail, if possible. Please use the title “Real Estate Appraisals” to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods:
  • E-mail: regs.comments@occ.treas.gov.  Include in subject line: “Docket ID OCC-2018-0038 and RIN 3064-AE87 – Real Estate Appraisals”
  • E-mail: regs.comments@federalreserve.gov. Include in subject line: “Docket ID OCC-2018-0038 and RIN 3064-AE87 – Real Estate Appraisals”
  • E-mail: Comments@FDIC.gov. Include in subject line: “Docket ID OCC-2018-0038 and RIN 3064-AE87 – Real Estate Appraisals”
you can cut and paste all of them below:
regs.comments@occ.treas.gov,regs.comments@federalreserve.gov,Comments@FDIC.gov
I urge you to send in comments to the government agencies that are considering lowering the appraisal threshold. This will get rid of 90% of current appraisal needs.  Talk about an industry killer.

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5th December 2018

FDIC Issues Notice of Proposed Rulemaking to Exempt Residential Real Estate Transactions of $400,000 or Less from Appraisal Requirements

The Federal Deposit Insurance Corporation (FDIC) today issued a notice of proposed rulemaking to raise the threshold for residential real estate transactions requiring an appraisal to $400,000. This proposal is in response to concerns raised about the time and cost associated with completing residential real estate transactions.

The FDIC believes raising this threshold for residential real estate transactions from the current level of $250,000, last increased in 1994, could provide meaningful burden relief from the appraisal requirements, without posing a threat to the safety and soundness of financial institutions.

Rather than requiring an appraisal, the proposal would require that residential real estate transactions exempted by the threshold obtain an evaluation consistent with safe and sound banking practices. Evaluations provide an estimate of the market value of real estate but could be less burdensome than appraisals because the FDIC’s appraisal regulations do not require evaluations to be prepared by state licensed or certified appraisers. In addition, evaluations are typically less detailed and costly than appraisals. Evaluations have been required for transactions exempted from the appraisal requirement by the current residential threshold since the 1990s.

This proposal responds, in part, to comments that the current exemption level for residential transactions had not kept pace with price appreciation in the residential real estate market. These comments were received during the recent Economic Growth and Regulatory Paperwork Reduction Act review process and during the rulemaking process that led to a final rule, issued in April 2018, which raised the appraisal threshold for commercial real estate transactions from $250,000 to $500,000.

The proposal also would incorporate the rural residential appraisal exemption in the Economic Growth, Regulatory Relief and Consumer Protection Act to the list of exempt transactions and require evaluations for these exempt transactions. In addition, the proposal would require institutions to appropriately review appraisals for compliance with the Uniform Standards of Professional Appraisal Practice, as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Comments will be accepted for 60 days from publication in the Federal Register.

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3rd December 2018

New Industry Killer – 90% of residential transactions will no longer need an appraisal

You may have heard that the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, and Federal Deposit Insurance Corporation recently announced a proposal to increase the threshold above which an appraisal is not required from the current $250,000 to $400,000 for residential mortgage transactions. Since Congress enacted Title XI of FIRREA in 1989 the Federal Financial Institution Regulatory Agencies have systematically carved out exemptions for the requirement of appraisals to the point that, with the current proposal, over 90 percent of residential mortgage transactions will not need an appraisal.  This is a major concern to all of us in the appraisal profession.
    Trunion is part of the Industry Advisory Council for the Appraisal Foundation. David Bunton, the President of the Appraisal Foundation has asked us to share these documents with all interested parties. Click the links below.

~ Note from Bryan @ Appraiser Income, we need to get involved, please send emails!!!!! I have included the emails below:

Please send comments:

ADDRESSES: Interested parties are encouraged to submit written comments jointly to all of the agencies. Commenters should use the title “Real Estate Appraisals” to facilitate the organization and distribution of comments among the agencies. Interested parties are invited to
submit written comments to the emails below.
Please use the subject title “Docket ID OCC-2018-0038 and RIN 3064-AE87 – Real Estate Appraisals” to facilitate the organization and distribution of the comments.
  • E-mail: regs.comments@occ.treas.gov .  Include in subject line: “Docket ID OCC-2018-0038 and RIN 3064-AE87 – Real Estate Appraisals”
  • E-mail: regs.comments@federalreserve.gov . Include in subject line: “Docket ID OCC-2018-0038 and RIN 3064-AE87 – Real Estate Appraisals”
  • E-mail: Comments@FDIC.gov . Include in subject line: “Docket ID OCC-2018-0038 and RIN 3064-AE87 – Real Estate Appraisals”

 

you can cut and paste all of them below:
regs.comments@occ.treas.gov,regs.comments@federalreserve.gov,Comments@FDIC.gov

 

subject line: Docket ID OCC-2018-0038 and RIN 3064-AE87 – Real Estate Appraisals

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