I have delayed my usual beginning of the year prognostication for a number of reasons. I spend a lot of time speaking to individual appraisers as well as clients of appraisers -- both lenders and AMCs. There are indeed some common threads and of course there are the looming regulatory hairballs that affect us all. I also wanted to review the responses to the Appraisal Buzz National Appraiser Survey to which, by the way, it isn't too late to respond.
I remember a time in the world, pre HVCC, when I would drive around to mortgage offices. I would stop in, introduce myself to every loan officer and staff member, hand out my business cards, and ask them to give me a try. I would repeat this pattern every week after that until they decided to give me a try. That was then and this is now...
On February 26th, Allterra Group is hosting a special webinar on alternative valuation and its usefulness in the appraisal industry. The Webinar will be moderated by John McIntyre and presented by Tony Pistilli of Axios Valuation Solutions and Greg Stephens of Metro-West Appraisal Co., LLC. This will be a great opportunity for appraisers to learn more about how alternative valuation affects their appraisal business. We were lucky enough to be able to ask the presenters a few questions about the upcoming webinar here's what they had to say.
Editors Note: Starting with this issue, FHA Watch has been renamed Housing Risk Watch. Housing Risk Watch will cover all facets of housing risk, with a primary focus on government-sponsored risk, including the FHA. You can read the full issue HERE and keep up to date with all of his latest articles HERE.
Remember the good old days? Like me, you probably worked for multiple banks and local lenders. You had a steady volume of appraisal work coming in and got paid well for what you did. A typical appraisal consisted of three or four comparables, there was no MC Addendum, and revision requests were few and actually pertinent to the assignment. Ahhh, that was the life!
Some time ago, while teaching in Knoxville, Tenn. and having another sleepless night, I fired up the laptop and was surprised to see an email from a former student with a subject line reflecting an urgent need for help. I have included the message below but have changed the names.
From: Jane Doe
Subject: Need help please!
It has been almost three years since the Uniform Appraisal Dataset (UAD) was formally announced by Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. The first version of Appendix D outlining field-specific standardization requirements was dated February 11, 2011. This guide detailed specific formats and responses for certain fields of the four major residential appraisal report forms.
It is with a good deal of lament that I am writing this post. I opened my email this morning to see an announcement from Appraisal Advisor (AA) stating that they that would be ceasing operation as of February 1, 2014. For those that did not know about them, they were, to my knowledge, the only source for appraisers to post reviews about working with Appraisal Management Companies (AMCs). AA also developed credit ratings based on appraiser reviews of working with each rated AMC.
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.
As I talk with appraisers across the country, I’ve heard there is a slow-down in some areas now (although others report they are as busy as ever). We can choose to think negatively about a slow time, or we can see the slow time as an opportunity to market, market, market.