Industry News Blog

Last Updated: 03/08/2010

Tony Pistilli, a Certified Residential Appraiser and Vice-Chair, Minnesota Department of Commerce,
questions the unearned fees AMCs are collecting and how this remains acceptable under RESPA guidelines. And why isn’t the bank paying for the third-party to be hired by the bank, instead of the borrower and subsequently the appraiser?

I think we are all asking the same question, Mr. Pistilli.

Automated Valuation Model Web Site Warning

Last Updated: 03/02/2010

An Appraisal Institute member warned consumers that an automated valuation model (AVM) Web site, Zillow.com, may be offering value assessments that are not reflective of true value. Mark Hepner warned consumers about discrepancies between Zillow.com’s home values and those determined by a qualified appraiser. He said the estimates often contained faulty information and/or neglect to account for home improvement.

Appraiser Selection: How does it work?

Last Updated: 02/27/2010

Does HVCC policies require a certain selection method? AIMSdashboard President Chris Williams answers this question for a concerned lender.

He asked:

How are appraisers assigned? As part of HVCC, does the lender and/or AMC assign appraisals based on the company itself (ex: 1 company = 1 assignment) or individual appraisers (ex: 5 appraisers = 5 assignments). I would just like to know how assignments are typically sent out and is it per HVCC regulation?

Answer...

Average Appraisal Fees

Last Updated: 02/22/2010

The average appraisal fee nationwide is $351, according to a la mode, Inc.'s latest edition of The Appraisal Fee Reference. What I find interesting is that it is unclear exactly what the data they garnished represents. They say the fee data is taken from verified and validated appraisals, but is that the borrower fee and NOT actually what the appraiser is putting in his pocket?

What do you think?

Finance Leadership Vacancies

Last Updated: 02/19/2010

Apparently, no one is clamoring for any of the three finance leadership positions due to be vacant this August – at least not publicly. And if they are, the Appraisal Institute has yet to comment on any candidates.

For more details on the soon-to-be available positions and the Appr, go here.

What position would you like to run for???

FHA Policy and Appraiser Assignment

Last Updated: 02/15/2010

Everyone is wondering how these new FHA changes are going to be handled. Appraisers are concerned with the timing of when appraisers are assigned.

Here’s a comment from a recent forum discussion from an appraiser who has this concern. AIMSdashboard President Chris Williams offers some solid advice and a solution regarding this topic.

FHA and ePortal Submissions

Last Updated: 02/14/2010

The accommodations made by FHA to enable the logging of an FHA case # by the originating broker has some trickle over to the LO world. As with HVCC, FHA is explicitly supporting ePortal submissions from originating agents (LOs, Brokers, others in "loan production staff") and activated by the lender. So the same mechanisms available for the TPO agent, the broker, will be usable by the LOs in theory. Lenders will stipulate their own policies; but it will be allowable to have LOs use...

Analysis of Fannie and Freddie's Latest Move

Last Updated: 02/12/2010

Fannie Mae and Freddie Mac are buying back $200 million in mortgages. What does this mean to investors? Even investment executives are admitting no one knows what to do.

What do you think?

Al Yoon takes a good look at the predicament in a Reuters article. For more details on this issue, go here.

Updated Reference Book for Appraisal Industry

Last Updated: 02/10/2010

In case you haven’t heard yet, the Appraisal Institute announced the release of its updated reference work, The Dictionary of Real Estate Appraisal, fifth edition, which includes an online version for the first time. Users can access the 404-page book online.

For more information, go here.

Compliance Complications

Last Updated: 02/08/2010

There could be a huge fallout due to the new regulations designed to protect consumers from predatory lenders. Moody's Investors Service predicted that changes in the TILA and RESPA could cause turmoil for the recovery value for mortgage pools.

Under the new guidelines, borrowers could assert rescission rights or defend a foreclosure for as little as a $35 under-disclosure discrepancy.

For more information on this or other compliance news, go...