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The government says that customary and reasonable fees are anti competitive and the Louisiana state appraiser board are gangsters.

I thought I would send out this latest news on customary and reasonable fees. So far I only have one response about lunch and that is that it be on a Tuesday or Wednesday. I know school will be getting out soon and graduations will begin, vacations will start. Work is steady and we will be seeing a bubble form in our market, but there is time for lunch this month. Can I get a show of hands of anyone who wants to meet?

The thing that we are not allowed to talk about and nobody wanted to do anything about is being challenged because someone did something about it. Louisiana is being charged with racketeering for doing what the Dodd Frank act told them to do. And to think I was just getting used to nothing bad happening in the appraisal industry.

https://www.ftc.gov/news-events/press-releases/2017/05/ftc-challenges-louisiana-real-estate-appraisal-board-regulations

The push is on to eliminate the need for an appraiser.

Things are busy, but not crazy due to a lack of inventory. Is anyone interested in getting together for lunch? Send me your thoughts.

I haven’t put out many emails in the last year in part due to some computer issues messing up my email list and the fact that there have not been too many bad things happening in the appraisal industry lately. That is amazing. If you know someone that is no longer getting my emails, let me know. I had to piece things back together and I am getting some kicked back as spam. When I have time I will try to get things figured out to get the emails going the way that they should.

The shortage of inventory is doing a number on buyers out there. Folks are starting to get a bit crazy in their attempt to get a house. We now have a new phenomenon of the weekend listing. Listings fell 11% from last month. You may see things in the MLS notes of “no showings until Saturday. Offers being presented on Sunday”. That is how crazy it is. Sellers in the first time home buyer market can go away for the weekend and come back to a pile of offers to choose from. The competing offers are hitting $10,000 or $20,000 over asking price and the buyers feel justified because that is the only way that they can win the bidding war. The question is this going to relate to market value? Is there some duress in the auction setting? Home owners seeing the feeding frenzy may become motivated to put their homes on the market to take advantage of demand. What happens when rates go up? Will they go up? The Fed says yes, but they seem to have gone down. Lenders have tightened requirements but are pushing to eliminate the need for appraisals so they can do more loans faster. Appraisers keep slowing things down and coming in under contract price.

One question is how will this affect risk for the lenders and what is this shortage of supply going to do to borrowers 5 year down the road when demand is down and rates are up. Will the lenders come back on the appraisers questioning why the homes were appraised so high 5 years ago like they did in 2008 and later. If the market is paying higher prices that would relate to market value. How will this year compare to next year?

There is an appraiser shortage, so let’s eliminate the need for the appraiser and make things better.

That is what I have been hearing from the GSE’s and AMC’s. I keep seeing and hearing about all of these moves by the major players to change the appraisal industry (Modernization they call it). Fannie and Freddie both changed their requirements for licensed appraisers to do inspections of properties for certain loans. There is a push to put out property reports where they send a person out to take pictures of the subject and then an appraiser uses the AMC’s AVM to analyze the market and choose some comps and give a value. There is a video below about a Value Net appraisal. It shows all the reasons not to use a real appraisal. There is also a link to an example of one.

They always seem to miss the elephant in the room. What about paying reasonable fees? What about eliminating AMC’s continual bombardment of revision requests? What about eliminating excessive AMC fees? What about eliminating AMC’s? There answer always seems to be to eliminate the appraiser.

https://www.fanniemae.com/singlefamily/property-inspection-waiver

http://www.freddiemac.com/learn/pdfs/uw/hve_fun_guide.pdf

The VA had a hearing speaking to appraisal related representatives about how to make the industry better. It is good that those in charge are asking questions finally about why appraisers are getting out of the business. You can listen to Phil’s comments on the Voice of appraisal broadcast. The speakers include Mr. Jeffrey London Director Loan Guaranty Service Veterans Benefits Administration U.S. Department of Veterans Affairs, Mr. Gerald Kifer Supervisory Appraiser Loan Guaranty Service Veterans Benefits Administration U.S. Department of Veterans Affairs, Ms. Michelle Bradley 2016 Real Property Valuation Committee Chair National Association of Realtors, Mr. Stephen S. Wagner, MAI, SRA, AI-GRS Vice President Appraisal Institute, Mr. Russell Johnson Chief Revenue Officer Clear Capital – See more at: http://veterans.house.gov/calendar/eventsingle.aspx?EventID=1666#sthash.hCy2I8zK.dpuf

Clear Capital was pushing the desktop appraisal at the hearing with a professional photographer doing the inspection.

The complaints include:

It takes too long to get an appraisal done.

It cost too much.

There aren’t enough appraisers.

The number of appraisers is declining.

Rising revision rates.

Appraisers are killing deals.

Delayed Profitability.

Frustrated borrowers.

Poor Quality.

Fast forward to about half way through because the video doesn’t start until then.

http://veterans.house.gov/calendar/eventsingle.aspx?EventID=1666

November Congressional hearing on Modernizing Appraisals.

https://www.youtube.com/watch?v=_XwhTQsguYI

Sample Value Net Appraisal

http://www.valuenet.com/

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April 11, 2017
 
The new Fannie Mae Appraiser Update keeps you on top of the latest appraisal news

How do appraiser-related policy updates, technology changes, and industry trends affect your business? To stay on top of the latest Fannie Mae appraisal news and policies, check out the new Fannie Mae Appraiser Update, a newsletter providing periodic updates for residential appraisers serving Fannie Mae lender customers.

Our first issue covers Day 1 Certainty™, including Property Inspection Waivers (PIWs) and certainty on appraised value, Collateral Underwriter® (CU™) stats, and Selling Guide updates relevant to appraisers. Whether you’re a field appraiser or work for an appraisal management company or lender, we have the information to help you effectively serve your clients.

Read the March 2017 issue and sign up to continue to receive the Fannie Mae Appraiser Update and other appraisal-related news.
https://www.fanniemae.com/content/news/current-appraiser-newsletter.pdf

 

Einstein Quotes

“Two things are infinite: the universe and human stupidity; and I’m not sure about the universe.”

There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.”

“If you can’t explain it to a six year old, you don’t understand it yourself.”

“Anyone who has never made a mistake has never tried anything new.”

“Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.”

“Coincidence is God’s way of remaining anonymous.”

“A clever person solves a problem. A wise person avoids it.”

“Science without religion is lame, religion without science is blind.”

“Reality is merely an illusion, albeit a very persistent one.”

“A human being is a part of the whole called by us universe, a part limited in time and space. He experiences himself, his thoughts and feeling as something separated from the rest, a kind of optical delusion of his consciousness. This delusion is a kind of prison for us, restricting us to our personal desires and to affection for a few persons nearest to us. Our task must be to free ourselves from this prison by widening our circle of compassion to embrace all living creatures and the whole of nature in its beauty.”

“You never fail until you stop trying.”

“Men marry women with the hope they will never change. Women marry men with the hope they will change. Invariably they are both disappointed.”

“I must be willing to give up what I am in order to become what I will be.”

“Time is an illusion.”

“We all know that light travels faster than sound. That’s why certain people appear bright until you hear them speak.”

“Nothing happens until something moves.”

“God does not play dice with the universe.”

“If you want to live a happy life, tie it to a goal, not to people or things.”

“The hardest thing in the world to understand is the income tax.”

“Wisdom is not a product of schooling but of the lifelong attempt to acquire it.”

“Life is a preparation for the future; and the best preparation for the future is to live as if there were none.”

“Energy cannot be created or destroyed, it can only be changed from one form to another.”

“In theory, theory and practice are the same. In practice, they are not.”

Listen and Learn

Ear

Ear (Photo credit: Menage a Moi)

Abstract Colorful Universe Wallpaper - TTdesign

Abstract Colorful Universe Wallpaper – TTdesign (Photo credit: tomt6788)

Universe

Universe (Photo credit: Loulair Harton)

Here are some quotes on becoming an expert from Wisdom Quotes.com

The Living Universe by Soulblind, the Onion Peel, and the God Partical

Single cover for "Big Bang Theory Theme&q...

Single cover for “Big Bang Theory Theme” by Barenaked Ladies (2007) (Photo credit: Wikipedia)

Soulblind has peeled back a layer of the onion in search of the center. I find it amazing that we are not even solid, we are made of electrically charged particles circling around each other held together by magical forces. Just think of how much energy is in each atom in us if we were to split them and release the energy we could blow up the world.

http://soulblindministry.com/2012/07/31/the-living-universe/

CMS Higgs-event.jpg

They said they saw the “God Particle” for a moment in CERN in Geneva

Scientists think they saw the evidence that the “Big Bang” could have actually happened. Even though the Big Bang Theory has been taught as fact, it has always just been a theory, an atheistic dogma.  They saw a subatomic particle increase in mass.

Higgs boson: scientists 99.999% sure ‘God Particle’ has been found

It does not make sense that first there was nothing. Then nothing blew up and made everything. I think it takes blind faith to believe that. It is ironic that scientist, who believe that the universe is controlled by physical laws that do not change to the tiniest degrees still think we are an accident. What are the odds that we are here? Doesn’t everything work to well to be an accident? How does all this create living souls?

http://en.wikipedia.org/wiki/Higgs_boson

Link

Steps When the Appraisal Comes in Too Low

 

English: Diagram of appraisal process for forg...

Image via Wikipedia

Steps When the Appraisal Comes in Too Low

What happens when an appraisal comes in low? Here is some input from people who have had some experience with low appraisals

What glassess are you wearing?

The glassess we look through determine what we see or how well we see.
(Our judgements are based on our beliefs and what filters our thoughts.)

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