4th August 2019

Appraisal Standards Board Considering Creating Standards for Evaluations – ASB to Issue Concept Paper and Hold Public Hearing

(Washington, DC) August 1, 2019 – The Appraisal Standards Board (ASB), an independent board of The Appraisal Foundation, announced today that it intends to examine the concept of creating standards for evaluations, which are alternatives to appraisals used by financial institutions.

Currently, there are no uniform standards for appraisers to follow when conducting an evaluation, which leads to greater risk to the safety and soundness of the real estate transaction and diminished protection for consumers. The ASB intends to issue a concept paper around Labor Day, and will follow up with a public hearing with panels of constituents on October 18, 2019 in Washington, DC. As with all public meetings of the ASB, the public hearing will be broadcast via livestream.

…continue reading the rest of this post: Appraisal Standards Board Considering Creating Standards for Evaluations – ASB to Issue Concept Paper and Hold Public Hearing

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2nd August 2019

U.S. Median Home Prices Reach A New Peak In Q2 2019

IRVINE, Calif. – July 18, 2019 — ATTOM Data Solutions, curator of the nation’s premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Q2 2019 U.S. Home Sales Report, which shows that U.S. single family homes and condos sold for a median price of $266,000 in the second quarter, up 10.8 percent from the previous quarter and up 6.4 percent from a year ago — reaching a new median home price peak.

Meanwhile, the report also shows that homeowners who sold in the second quarter had owned an average of 8.09 years, reaching a new peak, up 3 percent from last quarter and up 4 percent from Q2 2018. Homeownership tenure averaged 4.21 years nationwide between Q1 2000 and Q3 2007, prior to the Great Recession.

…continue reading the rest of this post: U.S. Median Home Prices Reach A New Peak In Q2 2019

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31st July 2019

Appraisal Institute Condemns NCUA’s Action, Calls for Congressional Oversight

CHICAGO, July 18, 2019 /PRNewswire/ — The nation’s largest professional association of real estate appraisers vigorously condemned today’s action by the National Credit Union Administration, calling the NCUA’s decision to effectively reduce the number of appraisals required for commercial real estate loans irresponsible, radical and dangerous.

AI Logo. (PRNewsFoto/Appraisal Institute)
AI Logo. (PRNewsFoto/Appraisal Institute)

“This is an outlandish scenario for anyone who cares about the safety and soundness of the nation’s commercial real estate lending system, and it could recreate conditions that led to the financial crisis of the late 2000s,” said Appraisal Institute President Stephen S. Wagner, MAI, SRA, AI-GRS. “The NCUA’s ill-conceived, damaging decision shows overwhelmingly the need for immediate, rigorous congressional oversight.”

The NCUA Board of Directors today quadrupled – from $250,000 to $1 million – the appraisal threshold for nonresidential 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 nonresidential real estate loans that would not require an appraisal.

“This decision – based entirely on providing regulatory relief – completely ignores the fact that the United States suffered through a financial crisis less than a decade ago,” Wagner said. “If anything, current market conditions beg for heightened due diligence by regulated institutions — not a loosening of a fundamental risk management activity.”

The federal banking regulatory agencies – the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Federal Reserve Board – last year approved increasing the commercial appraisal threshold from $250,000 to $500,000. The NCUA’s decision could create a regulatory arms race between the agencies and the NCUA.

The NCUA – the agency with the least direct experience in overseeing business and commercial real estate lending – effectively could be driving the appraisal policies for the entire financial regulatory system. The bank regulatory agencies – despite already determining otherwise – will face pressure to establish a corresponding threshold level to the NCUA’s level.

Additionally, federal legislation signed into law last December links commercial appraisal threshold levels for two of the Small Business Administration’s most popular loan programs to those established by the federal banking regulatory agencies.

“The potential domino effect is chilling,” Wagner said. “Everyone involved in this country’s commercial real estate industry should be incensed at the NCUA’s reckless decision, which potentially places the nation’s economy at significant risk.”

The NCUA’s action would significantly increase the number of credit union loans not requiring an appraisal – with the proportion exempted rising from 27% to 66%. Last year credit unions made $67 billion in commercial loans in this country.

“It’s clear that the solution is not only increased congressional oversight, but also improvements to the appraisal regulatory structure,” Wagner said. “The Appraisal Institute is working with members of Congress and their staffs to bring about meaningful change that will help prevent this type of outrageously heedless public policy making in the future.”

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27th July 2019

Raising Commercial Appraisal Threshold Puts U.S. Economy at Greater Risk

Statement: Raising Commercial Appraisal Threshold Puts U.S. Economy at Greater Risk
(WASHINGTON) July 19, 2019 – The Appraisal Foundation President David Bunton today raised concerns about the action taken by the National Credit Union Administration, which quadrupled the threshold for commercial transactions requiring an appraisal from $250,000 to $1,000,000.

“The Appraisal Foundation is deeply concerned that the action taken yesterday by the National Credit Union Administration is yet another needless attempt to dilute the federal financial and public policy protections of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, which requires real estate appraisals to be used in federally related transactions.

Yesterday’s action and the proposed rule by federal banking regulators to raise the threshold amount for residential real estate, combined with the years of accumulated carve outs, waivers, and exemptions, has jeopardized the U.S. economy by putting it at greater risk.?

The protections originally envisioned by Title XI are facing a death by a thousand cuts, and unfortunately, the 1000th may be too close for comfort.

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25th July 2019

U.S. Home Flipping Rate Reaches a Nine-Year High in Q1 2019

Post featured image

Total Dollar Volume of Homes Flipped With Financing Reaches 6.4 Billion – A 12-Year High

Average Flipping ROI Continues to Decline to An Almost Eight-Year Low

While Gross Flipping Profits Drop 12 Percent From Last Year

IRVINE, Calif. – June 6, 2019 — ATTOM Data Solutions, curator of the nation’s premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Q1 2019 U.S. Home Flipping Report, which shows that 49,059 U.S. single family homes and condos were flipped in the first quarter of 2019, down 2 percent from the previous quarter and down 8 percent from a year ago to a three-year low.

The 49,059 homes flipped in the first quarter represented 7.2 percent of all home sales during the quarter, up from 5.9 percent in the previous quarter and up from 6.7 percent a year ago — the highest home flipping rate since Q1 2010.

Homes flipped in Q1 2019 sold at an average gross profit of $60,000, down from an average gross flipping profit of $62,000 in the previous quarter and down from $68,000 in Q1 2018 to the lowest average gross flipping profit since Q1 2016.

…continue reading the rest of this post: U.S. Home Flipping Rate Reaches a Nine-Year High in Q1 2019

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23rd July 2019

Appraisal Institute’s Wagner Maintains “Positive Thoughts” on FHA-Appraiser Bills

Following his appearance yesterday before the House Subcommittee on Housing, Community Development and Insurance to advocate passage of HR 2852, which would allow licensed appraisers to perform appraisals for Federal Housing Administration (FHA) loans, Appraisal Institute President Stephen S. Wagner is expressing optimism that the legislation will find its way through a Congress which seems to become increasingly divided along party lines. 

“We have positive thoughts on that,” said Wagner in an interview with National Mortgage Professional. “I don’t see where there’s much criticism with this, as it seems to be reasonably well accepted. We’ve not heard any resistance to it.” 

…continue reading the rest of this post: Appraisal Institute’s Wagner Maintains “Positive Thoughts” on FHA-Appraiser Bills

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19th July 2019

Meet the Real Estate Appraiser of the World’s Most Gruesome Murder Sites

Thought I would include a link to this article in Rolling Stone. Creepy but interesting.

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16th July 2019

ZONDA / METROSTUDY SEES MUCH OF THE SAME IN HOUSING FOR 2019, 2020

The Zonda / Metrostudy teams recently gazed into their crystal balls to provide financial analysis for the homebuilding industry, which includes bad news for the end of year 2021. “We’re predicting a fairly healthy year for the remainder of 2019 with about 2.575 million jobs being created this year,” said chief economist Mark Boud of Metrostudy. “This forecast was done before the recent news on tariffs so this may be revised downward. As time goes on we do predict a recession and predict job losses to begin at the latter part of 2021 and going into 2022.”

The good news is Boud and his team don’t believe the recession will be nearly as bad as what happened during the housing crises. The timing of the recession prediction is based on the 2-10 treasury yield spread, a key economic metric that measures the difference of yields on short term (2-year) treasury bonds versus long term (10-year) treasury bonds. When the short term bonds are worth more than the long terms the yield curve is “inverted” and a recession typically follows about 18 months later.

The current 2-10 yield spread has been dropping since 2014 and was very close to inversion the last time it was measured which was in the fourth quarter of 2018. “We expect it to go inverted sometime this year and that corresponds with a recession in the later part of 2021,” said Boud.

…continue reading the rest of this post: ZONDA / METROSTUDY SEES MUCH OF THE SAME IN HOUSING FOR 2019, 2020

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12th July 2019

Voice of Appraisal Podcast

If you are like me, you spend a lot of time driving around doing your appraisal work. This is a good show! Especially their coverage on advocacy!

http://www.voiceofappraisal.com/

“Voice of Appraisal” is a show designed to deliver the most up to date news and information for the working real estate valuation professional. The show provides top analysis of real estate trends and issues that affect appraisers nationwide.  Our no-nonsense approach to appraisal, real estate, banking and politics creates a cutting edge program that provides an insight into the appraisal profession that is seldom heard.

The past 25 years of appraisal organizations, affiliations, and designations have left our industry splintered and broken.  We have become a group too caught up in our own egos and titles to see how our profession is now crumbling before us.

We have divided ourselves, and our house will not stand!

We don’t need any more regulations to hinder us, or unions to protect us, or dwindling organizations to speak for us, or financial institutions to threaten us.

What we need is a voice, a movement, to take back our industry, and control our own destiny.

This show exists to offer such a voice to this lone wolf profession, that real estate appraisal has now become.  Welcome to the movement!

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11th July 2019

ASA and RICS join efforts to simplify valuation landscape

Working together for positive change in valuation
ASA and RICS have signed an exploratory Letter of Intent to develop collaborative work streams on a variety of potential joint projects and activities, applying synergies from combining the respective strengths of each organization for the benefit of the public and ASA and RICS members. This includes building a partnership to support all disciplines, from real estate and personal property, to machinery, business valuation, and gems and jewelry. The projects and activities are intended to bring awareness of issues of importance to the profession.
 
“ASA and RICS are dedicated to elevating the quality of valuation services worldwide. This is an important step for the valuation profession as we continue to work more closely, even with competitor VPOs, to ensure that the needs of all who rely on valuation services, and those who perform them, are met with best-of-class solutions,” said Robert Morrison, ASA International President. “Together, ASA and RICS firmly believe we can work collaboratively to improve not only how valuation is seen globally, but the way valuation professionals see themselves. I am excited to see this effort grow and wish to thank Lee Hackett and John Russell for helping to craft a vision of the future of valuation that focuses on the end benefits to the public, thereby promoting the ASA brand and our credentialed members”
 
In developing the work streams, ASA staff, discipline committees, and standing committees will work jointly with peers at RICS to identify opportunities, establish priorities, and develop required content in order to achieve the collaborative goals of both organizations. Once this process is complete, leaders from both ASA and RICS will decide whether and how to proceed on a Definitive Agreement.
 
Collaboration with RICS is not without precedent. ASA and RICS, in partnership with AICPA, successfully put aside their competitive instincts to jointly create the widely-recognized CEIV credential and the Mandatory Performance Framework, the recognized framework of best practices for the performance of valuations for financial reporting purposes. Further, ASA and RICS are active participants in the International Valuation Standards Council and the Appraisal Foundation, and are committed to protecting the public interest through ethical practices and the confluence of standards. 
 
If you have any questions regarding this initiative, please contact your Regional Governor or John Russell, ASA’s Senior Director of Government Relations and Business Development.
For more information visit ASA Online or call (800) 272-8258.
National Courses | Chapter Courses | eLearning | Conferences | Webinar Recordings | Education Grants

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