Changes in 2014 make it a pivotal year in appraising. Lender compliance emanating from the Dodd Frank Act will impact appraisal function considerably. How appraisals will be assigned, how they will be delivered and how they will be reviewed is changing both for lenders and appraisers. The answers to these "how" questions are emerging through technology innovation and the collaborative efforts of leaders in both the financial institution and appraiser communities who are seeking effective solutions.
Post No. 37 – Back in November, I posted my letter to the North Carolina Chapter of The Appraisal Institute asking them to work on getting a law passed to allow their appraisers to perform non-USPAP Evaluations. As a follow up, I was able to obtain a letter from the North Carolina Appraisal Board to an out-of-state Evaluator. The main excerpt is as follows:
Competition, in a free market, is a fierce catalyst: one that can effectively sort out the bad apples from the bunch. Capitalism works, it is simple when left unfettered and when all parties are ethical in their approach to business. It works until politicians, however well meaning they try to be, step in with a”solution”. Through the Dodd-Frank reform and the Andrew Cuomo created Home Valuation Code of Conduct that predates Dodd-Frank, congress effectively went anti-small business again.
Editors Note: Last Month's FHA Watch was the final FHA watch in last year's series by Ed Pinto. You can read the full issue HERE and keep up to date with all of his latest articles HERE. Starting in this January, the FHA Watch will become Housing Risk Watch, with FHA Watch becoming a quarterly feature.
Too many times we appraisers, especially the single person shops, get "tunnel vision" because we have no contact with our peers in the appraisal profession. We just keep plodding along in our everyday life doing the same thing, but even worse, thinking the same way. We get no external input to help us in our everyday appraiser life. What this does is makes us stagnant and our abilities to do our jobs as appraisers can become severely diminished. I learned this the hard way with my single man shop.
In today’s, post mortgage apocalypse, market one would assume that the most important part of an appraisal is the accuracy of the estimate of value. By virtue of the data being utilized, its uniformity in how it is presented, the crackdown on form-filling number pushing appraisers, and all the tools we have at our disposal, estimates of value should be more and more accurate every day.
We work in an interesting industry where, unless you do a majority of non-lender work, most of our human interactions do not occur with our actual clients. Instead, we communicate with the AMC and lenders through email and web-portals. Most appraisers spend a majority of their work time either in front of a computer, traveling, or inspecting homes. Typically, the only portion of that formula which includes human connection is with the home owner(s).
Post No. 36 – Welcome to (a frigid) 2014. Hopefully, everyone had a great Holiday Season.
I am starting off this year with an easy post for myself - basically, a reprint of a press announcement by the American Enterprise Institute (AEI). Joan Trice and myself are part of this new Center that has been launched.
My personal hope is that the indices provided will be useful in letting us know when prices have disconnected from value. Please visit HousingRisk.Org and make it a Favorite.
It's the beginning of a new year, and with that it's time for the Annual National Appraiser Survey. We hear from appraisers throughout the year in comments to articles and interviews in Appraisal Buzz, on our blog and also in discussions on the Buzz Forum. We just want to affirm that we are indeed listening. So take a load off and let us know what are the most important issues to you.
We will share results of the survey on the Appraisal Buzz website as soon as the results are compiled. Thank you in advance for a being a loyal Appraisal Buzz subscriber.
2013 Year End Wrap Up
I love this time of year. Of course what is not to like about the holidays? But it is nice to take a look back over the past year and reflect on accomplishments while simultaneously keeping an eye towards the future. I suppose if you aren’t careful, that means you would have each eye going in a different direction.