Appraisal Scoop

Land Valuation: Extraction Has No Traction

ARTICLE SOURCE: Vol. 4, Issue 1, January 2012 of the Illinois Appraiser newsletter from the Illinois Department of Financial and Professional Regulation.

“Land values were based upon the extraction method.” Look familiar?

If I had a nickel for every phoned‐in Cost Approach that had this sentence or one like it, I’d be Warren Buffet

The Dictionary of Real Estate Appraisal defines [the Extraction Method] as:

A method of estimating land value in which the depreciated cost of the improvements on the improved property is estimated and deducted from the total sale price to arrive at an estimated sale price for the land; most effective when the improvements contribute little to the total sale price of the property.

The underscored portion says it all. Usually this technique is used in rural settings. Perhaps when appraising some hunting shack on a couple of hundred acres of scrub.

But no, we see it in the middle of suburban Hinsdale, Belleville, Taylorville, and other places where the residence is easily a significant portion of the total value.

By definition, extraction doesn’t really work in cities and suburbs where improvements tend to drive value.

Also, some Cost Approaches are so poorly cobbled together that we seriously doubt the appraiser’s ability to extract anything.

Don’t just toss extraction into a report.

If you cannot demonstrate an ability to depreciate reasonably, then you certainly won’t be able to support an extraction application.

The board strongly suggests that you find a course that teaches a more reliable technique.

ARTICLE SOURCE: Vol. 4, Issue 1, January 2012 of the Illinois Appraiser newsletter from the Illinois Department of Financial and Professional Regulation.

 

Geek's Corner: Magic Plan App Can Create Floor Plans By Photographing Corners of a Room

I learned of of the MagicPlan App from the Photography For Real Estate (PFRE) blog.

According to PFRE:

"The app is free for download. The final floor plan is free for non-commercial use (includes a watermark) and $1.10 USD for commercial use (with the watermark removed)."

"Running this app takes some practice. It took me several rooms to get the hang of selecting the corners of the room even though you can’t see the exact corner of the room because of furniture or drapes etc. But once you get the hang of it, you can put together floor plans very quickly. This app makes it very easy to add floor plans as a product to your real estate photography services if you are inclined to do that."

"Factoring" Accounts Receivable, or . . . .Where's My Money?!

GUEST AUTHOR: Ramir Rodriguez is a business development officer for Treasure Valley Factors. He helps real estate appraisers understand what factoring is and how it can help grow their business. He has a B.S. in Business Administration with an emphasis in Management from Eastern Oregon University. For more questions about factoring accounts receivables, please email him at rrodriguez@treasurevalleyfactors.com or visit our blog www.factoringhelps.wordpress.com or our website www.treasurevalleyfactors.com

Appraisers have shared a common concern with me when I visit with them and learn more about their businesses – “When am I going to get paid?” Many tell me that on average they do not collect their fees for 45 to 60 days. You have financial obligations to meet: payroll, taxes, travel expenses, etc. Cash flow delays can cause great stress for you and your appraisal business.

You must understand and be aware of the importance of cash. Cash is the lifeblood of any business and without it your business will fail. One of the main challenges that appraisers face is how to maintain a consistent cash flow in order to survive and grow.

Factoring is the solution!

What is Factoring?

This effective financial tool is selling your accounts receivables or invoices to get paid sooner for the work that has been done. Factoring accounts receivables is an effective way of improving and increasing the cash flow of a business. Factoring allows an appraiser to collect their fees easily and quickly. A factoring company can fund an appraiser 95% of the value of the invoices or accounts receivables submitted and such transactions are typically approved and funded to the appraiser within 24 hours (rather than waiting past 30, 60 or even 90 days).

Factoring Allows You to Do Much More

Receiving your fees much sooner allows you to meet your financial obligations. Most creditors require you to pay within 30 days and some charge interest. Having the ability to pay expenses and bills on time reduces or eliminates interest fees and improves the financial condition of your business. You can take advantage of early payment discounts in some cases also.

Factoring also helps you grow your appraisal business. Instead of spending time on the phone, email, or face-to-face to ask your client when you can expect payment, getting your fees paid quicker allows you to focus on what you do best, gives you more time market and sell yourself, and make more money!

Selling your invoices to a factoring company and receiving your fees within a day or two rather than an average of 45 to 60 days can reduce or eliminate stress of running a business. No more worrying about how you will pay your bills or how you will meet payroll if you have a staff.

Finding a Factoring Company

Not all factoring companies are the same. It is important to find the right factoring company that will customize a factoring program that fits your appraisal business. Good and experienced factoring companies can fund your business typically within 24 hours. There are factoring companies that do not require you to be in a long-term contract – meaning you are not locked in a contract where you have to factor your invoices for 6 months, 1 year, or longer. In addition, find a factoring company that has “no minimum volume” which means you are not required to submit all of your invoices… just those that historically pays slow. And finally, ask a factoring company if they offer “non-recourse” factoring. This means that once an invoice has been verified and approved the factoring company takes 100% of the collection risk. You can wash your hands of that invoice completely and move on to the next order.

GUEST AUTHOR: Ramir Rodriguez is a business development officer for Treasure Valley Factors. He helps real estate appraisers understand what factoring is and how it can help grow their business. He has a B.S. in Business Administration with an emphasis in Management from Eastern Oregon University. For more questions about factoring accounts receivables, please email him at rrodriguez@treasurevalleyfactors.com or visit our blog www.factoringhelps.wordpress.com or our website www.treasurevalleyfactors.com

Taking Stock of the 2055 "Exterior Only" Appraisal Form

Guest Author:  Ken Shure, Certified Residential Appraiser in the Los Angeles, California area.  Contact: kbshure@Yahoo.com

The 2055 form issued by Fannie Mae is a common vehicle for the reporting of an appraisal. The form includes a pre-printed scope of work indicated as the minimum needed to properly complete the assignment. This scope of work sets the minimum required inspection of the subject as a viewing of the exterior from the street. This minimum inspection requirement has provided some appraisers that complete reports utilizing the 2055 with a false sense of security as to their liability and overall responsibilities, particularly since the edits to this form that occurred in 2005.

Readers will note that the 2055 is designed to report appraisals of one unit properties or one unit properties with accessory units while the 1075 form is designed to report appraisals of a unit in a condominium project or a condominium unit in a planned unit development. While the focus is on the 2055 form the following discussion pertains to both forms, each of which are labeled as "Exterior Only Inspection" reports and have the intended use of evaluating a property for a mortgage finance transaction.

The scope of work section of the form includes the following paragraph:

The appraiser must be able to obtain adequate information about the physical characteristics (including, but not limited to, condition, room count, gross living area, etc.) of the subject property from the exterior-only inspection and reliable public and/or private sources to perform this appraisal. The appraiser should use the same type of data sources that he or she uses for comparable sales such as, but not limited to, multiple listing services, tax and assessment records, prior inspections, appraisal files, information provided by the property owner, etc.

Based on this paragraph the appraiser is expected to obtain proper levels of information that allow for a credible comparison of the subject to the comparable sales and per certification #10 due so without relying on unverified information provided by parties with a financial interest in the subject such as the property owner.

The data available to the appraiser for establishing the physical characteristics of comparable sales typically includes information as to the condition and quality of the interiors of these properties. The appraiser that is unable to verify the interior condition of the subject property while remaining true to certification #10 is therefore often in the position of having far better documentation for the interior condition of the comparables than for that of the subject. If interior condition and/or quality are factors with an effect on value for the particular assignment of interest, the information available regarding the interior of the comparable sales mandates an exercise of comparison for this parameter between the subject and these properties in order to provide a credible result.

Per USPAP, a properly incorporated extraordinary assumption with regard to the condition and quality of the interior of the subject property would be a compliant manner in which to proceed when one has highly relevant information regarding the interior of the comparable sales. However, the language within the 2055 form does not provide for making an extraordinary assumption while the "as is" box (CB1) is checked within the reconciliation section. This presents some level of difficulty for the appraiser attempting to properly make use of an extraordinary assumption regarding the interior condition and/or quality of the subject property when using this form.

"While appraisers utilizing the 2055 form are certainly satisfying the specified minimum level of work by only completing an exterior inspection from the street, this does not remove them from any subsequent due diligence regarding the interior of the subject property."

Many appraisers have concluded that they have the ability to incorporate an extraordinary assumption into the report regarding the interior condition and submit the report with CB1 checked.  Per the form language, that cannot be altered in cases where the report is to be utilized in transactions heading to Fannie Mae or Freddie Mac, additional assumptions cannot be made beyond those already accounted for within the form's format. An extraordinary assumption can only be incorporated via the proper mechanism located within the reconciliation section.

The proper route for doing so on the 2055 and certain other Fannie Mae forms such as the 1004 and 1025 involves checking the fourth box in the reconciliation section (CB4) and requiring a subsequent inspection for confirmation. By checking CB1 and incorporating an extraordinary assumption into the narrative of the report one could be accused of producing a misleading report. This is due to the fact that the presence of an extraordinary assumption within the narrative is in direct contradiction to what is present in the reconciliation section when CB1 is checked rather than CB4. Contradictions such as this are not to be considered beneficial elements within an appraisal report and could be used as a means to discredit the appraiser that allows them to be present in their work product. This issue is discussed further in a prior article: You Can Write an Appraisal on a Napkin..... But you probably just didn't

Click HERE to continue reading this article

Appraisal Issues Learned in 2011 - David Towne

GUEST AUTHOR: Dave Towne, Certified Real Estate Appraiser - Towne Appraisals. 16422 Britt Rd., Mount Vernon, WA Phone: 360.708.1196 eMail: dtowne@fidalgo.net Web: http://www.TowneAppraisals.com

Appraisers….

Some things I’ve learned this past year:

a- AMC’s lie. And appraisers often let them get away with it. Some AMC’s ‘require’ you to add certain reporting items that they claim are “lender” requirements. In fact, some or most are not. They are additional scope creep items that they alone have inserted into the appraisal completion process that have nothing to do with the lender loan underwriting policies. Items like all kinds of additional photos, certain sale dates for subject and comps that exceed the Fannie/Freddie form requirements, certain words, etc. One AMC based in NW WA demands that previous sale dates for the subject and comps be reported, even if beyond the 3 year and 1 year period that Fannie/Freddie mandate. No other lender or AMC has this ‘lender requirement’ – I checked. I successfully called their bluff on this item, and will refuse to do it on future reports (if they still send me orders! J ).

b- QA Notices generated by an AMC can be challenged by how your reply is written. Sometimes all it takes is just a simple reply to clear the order in the system. In cases like (a), structure a reply to challenge what is being asked of you, and then don’t provide what the AMC wants. Often the QA Notice reply addendum to the report will just sail through their processing system without being reviewed or challenged. But…when you rebut a QA Notice this way, you’d better have an iron clad response as to why you are correct. You, not the AMC, are responsible for report content.

c- AMC’s and some lenders may be braking the law in how they ask you to modify a submitted report. The Dodd-Frank law is the appraisers’ friend. There are specifics in that law (Appraisal Independence Requirements) that give you the ability to challenge and rebut a QA Notice that DIRECTS you to submit additional comps, remove comps, or to change anything affecting the reported value or your conclusions, either in advance, or after report submittal. Google “Dodd-Frank law” and when you find it, save the PDF to your computer. Then go to page 2210 to read the AIR section.

d- Including full size copies of your license and E&O in reports is dangerous. These items can be forged and used by fraudsters and identity thieves. Again, too many appraisers just roll over and do it because it’s the path of least resistance. If appraisers would JUST SAY NO we would not be asked for these non-essential items. Your license info is on the signature page, and no AMC or lender needs to have a copy of your E&O in a report for loan underwriting purposes except as a way to more easily sue you. However, just to play the game, I have a reduced-size image of my license in the report (if enlarged will be fuzzy) but it’s with a statement saying why a full size copy is not included. Even when a QA Notice arrives with this ‘demand’ I tell them to go pound sand … politely of course! See (b).

e- Some AMC’s are scared, and fees appear to be increasing. I track all orders in an Excel spreadsheet and have seen fees creep up this past year. Again, just say ‘NO’ when you are offered an assignment for less than you consider reasonable – and reply with ‘your’ fee for service. AMC’s rake in millions from appraisers – that’s your income they are stealing. So steal some, if not most, of it back. Believe me, you will be much happier working for a fairer income than slaving away for peanuts. Appraisers who continue working for peanuts will ultimately find out it’s not worth the hassle. I talked with an appraiser today who did an assignment for about $10 per hour GROSS. Net income will probably be negative when overhead is factored in. So why do that? Push back when the ‘offered’ fee is too low.

f- Some AMC’s are actually nice to work with and treat appraisers fairly. Cultivate those relationships, and fire the other idiots. Let supply and demand work in your favor.

g- Relative to (e), don’t ‘work overtime’ for FREE. When the 15 pages of assignment conditions arrive with the order and you see items that are additional to what you consider ‘reasonable and typical’ (or Fannie/Freddie requirements), speak up and raise your fee accordingly – or decline the assignment. Some AMC’s ‘require’ a minimum of 4 or more sold comps in reports. See (a). If they require you to provide extra comps, that translates into additional time necessary for report completion. You should be paid appropriately. This happened to me yesterday and I told the AMC that I charge “X” more for their additional requirement. They agreed to the fee increase. Again, use the word ‘overtime’ when you discuss this with your client because that’s a term they understand. They are paid extra when working ‘overtime’ for their employer; why shouldn’t you be compensated in a similar way?

h- The number of Mortgage Brokers and Loan Officers has declined approximately 20% (WA State). This from DOL’s info about renewal license applications for them.

i- Strive to do good quality, well documented, USPAP compliant reports,. People in the industry know what a good report looks like. You will enhance your reputation and ability to receive assignments from current and referral clients. I am amazed that there are some appraisers who believe that a USPAP compliant report can be done in minutes just by checking the form boxes - when most quality appraisers recognize that it’s hours per report to add additional info to get it right. The Fannie/Freddie forms ARE NOT 100% USPAP compliant, and never have been. I have an approved 3 hr CE class (WA & ID states) about this in case you are interested.

j- Shed your bathrobe & bunny slippers and get out of your basement and meet your peers. Meet for lunch, coffee or a toddy once in awhile. We do this successfully in NW WA. Appraisers are really super people when you get to know them. With a peer group you then have a resource to use when you get stuck on an assignment. And you don’t have to reveal your client secrets. Attend live classes when you can … it’s a far better way to be a quality appraiser than always being sequestered in your basement in your bathrobe and bunny slippers.

k- Many appraisers say 2011 is finishing strong. It’s anybody’s guess what 2012 will bring. But some pundits are saying that things should start to improve overall for our industry, although commercial assignments appear to be slower than past activity.

Best wishes everyone for 2012!

Dave Towne, MAA

Certified Residential RE Appraiser

FHA Approved

10+ years experience

Member: Appraisers' Coalition of Washington

Member: National Association of Appraisers

Associate Member: Appraisal Institute

Towne Appraisals & Appraiser Education Service

Mount Vernon, WA

360-708-1196

FreddieMac Single-Family Updates to Appraisal Related Forms and Reconciling Multiple Opinions of Value

Single-Family Seller/Servicer Guide (Guide) Bulletin 2011-25 announces updates to our requirements for appraisal-related forms and reconciling multiple opinions of market value.

Review Freddie's Guide Bulletin to get complete details on the Guide changes outlined below.

Effective April 1, 2012, the following revised property eligibility and appraisal requirements will apply:

• Specific Guide forms are required for appraisal field review reports and appraisal updates. Sellers are required to use Guide Form 1032, One-Unit Residential Appraisal Field Review Report, or Form 1072, Two- to Four-Unit Residential Appraisal Field Review Report, when obtaining an appraisal field review report as a part of the mortgage file. We are also requiring Form 442, Appraisal Update and/or Completion Report, to be used when obtaining an appraisal update.
• Guidance on reconciling multiple opinions of market value. New Guide Section 44.16, Reviewing Appraisal Reports, Obtaining Subsequent Appraisal Reports and Appraisal Field Review Reports, and Reconciling Multiple Opinions of Market Value, has been added, outlining the requirements for reviewing the appraisal reports and determining which market value to use when several opinions of market value are obtained.
• Updated requirements for appraisers. To be consistent with the Uniform Standards of Professional Appraisal Practice (USPAP), we are specifying that Sellers must select appraisers with knowledge and experience in appraising the property type in the market area and access to applicable data sources.

Source: Freddie Mac

Appraisal Foundation's Response to NAHB's "Flawed Appraisals" Article

We are contacting you in reference to the attached NAHB press release dated Thursday, December 8, 2011, entitled, Flawed Appraisals Killing Home Sales, Hampering Housing Recovery.

As the Congressionally-authorized organization that establishes appraisal standards and appraiser qualifications in the United States, we feel compelled to address aspects of the press release we feel need clarification.

The press release quotes NAHB Chairman Bob Nielsen as stating, “The inappropriate use of distressed and foreclosed sales as comparables in determining new home values is needlessly driving down home prices, killing home sales, causing more workers to lose their jobs and delaying a housing and economic recovery.” Mr. Nielsen is also quoted as stating, “This is not only unfair and unreasonable, but it perpetuates the cycle of declining home values, drives more home owners underwater, harms local economic activity and acts as an obstacle to the recovery of the housing market.”

It is critical to understand that appraisers do not determine property values; they simply reflect the actions of buyers and sellers in the marketplace. An appraiser’s role is to “mirror the market” by analyzing the actions of buyers and sellers in the marketplace to produce a credible opinion of value.

The press release also refers to “faulty appraisal practices,” where “brand new homes with sparkling appliances and interior upgrades get compared to a distressed property that has been sitting vacant and in disrepair.” All things being equal, it is certainly true that the more similar a competing property is to the subject property, the better a comparable it is likely to be. However, there are often reasons why an appraiser may have to consider comparables that are not as physically similar to the subject property as may be desired.

One key component in appraisal theory is the Principle of Substitution, which essentially states that knowledgeable and typically motivated buyers would not pay more for a property if a similar property could be built (or if competing properties are available in that marketplace at a lower price). The press release claims that 53 percent of builders surveyed reported appraised values that came in lower than the cost to construct. A concept many builders often fail to recognize is that cost does not equal value. In “depressed” markets, it may be common for buyers to be unwilling to pay the full cost to construct a home; in appraisal, this is known as external obsolescence, which is a loss in value due to factors outside the subject property. In these cases, that loss is attributed to a market where buyers have set a “limit” on the amount they are willing to pay, regardless of the cost to build.

While few would argue that a new home is not physically similar to a home that is in “disrepair,” the effect of such properties on new home sales must be analyzed by the appraiser. For example, in marketplaces where many of the properties being bought are distress sales (e.g., foreclosures, bank-owned properties, short sales, etc.), it is not only permissible for appraisers to consider and potentially use these sales as comparables (or “comps”) but appraisers are required to determine the impact this activity is having in the marketplace. This is due to the fact that distress sales may very well impact the value of more “conventional” sales, because in several markets buyers may be reluctant to pay more for any property than the price level set by the distress sales (note the reference to the Principle of Substitution made previously). Further, if the number of distress sales (or distress properties available for sale) becomes so significant in a marketplace that it represents virtually the only activity occurring, the distress activity may actually become the marketplace.

The press release also states, “These appraisal practices are a major contributing factor to the current acquisition, development and construction (AD&C) lending crisis that has choked off credit for home builders and threatens to prolong the current housing downturn. Falling appraised values for land and subdivisions under development have led some financial institutions to stop lending to developers and builders, to demand additional equity and even to call performing loans.”

It is important to recognize that all state licensed and certified real estate appraisers in the U.S. are required by the Uniform Standards of Professional Appraisal Practice (USPAP)1 to be independent, impartial, and objective, and to perform assignments without bias. Furthermore, the Dodd-Frank Act passed by Congress and enacted in 2010 mandates appraiser independence, and establishes penalties for lenders and other parties who attempt to unduly influence an appraiser. To even suggest that appraisers are subjective in the performance of their appraisals is contrary to an appraiser’s most basic ethical obligations under USPAP.

Lastly, the press release states, “Since Sept. 2009, NAHB has held four appraisal summits in Washington with representatives of federal banking regulators, the appraisal industry, the housing finance industry, the real estate and housing sectors and others to find solutions that will allow appraisers to develop realistic valuations based on sales that are truly comparable.” The press release also adds, “The need to give top priority to addressing the complexity of property valuations in distressed markets and impediments to the flow of appropriate information on homes between appraisers and interested parties was discussed during the most recent summit, which occurred on Oct. 19.”

We wish to emphasize that, in response to your invitations, The Appraisal Foundation has participated in each of the four appraisal summits referenced in the press release. In addition, The Appraisal Foundation stands ready to continue to work with NAHB to assist in understanding and resolving any appraisal-related issues. Sincerely,

Source:  Appraisal Foundation

New Sponsor - Automated Valuation Technologies (AVT)

Welcome Appraisal Scoop's newest sponsor . . . Automated Valuation Technologies (AVT).

AVT operates under the belief that there is no substitute for the “Neighborhood Appraiser.” Their knowledge of the local market is unique and cannot be duplicated by remote computer analysis. These local appraisers are hardworking and dependable. Without question, these gritty individuals will carry out their duties as long as they have the knowledge and tools to do so.

Appraisal Institute Applauds NAHB "Guidelines to a Stronger and More Productive Relationship with Appraisers"

The Appraisal Institute commends the National Association of Homebuilders for creating guidelines to foster increased cooperation and information sharing among professionals that play a key role in the home buying process.

NAHB recently announced guidelines to enhance builder communication with appraisers and lenders to help ensure reliable, credible valuation of newly built homes.

The guidelines suggest that builders meet with the appraiser at the home site and provide direct support for the asking price with whatever relevant information is available. Builders are asked to provide the appraiser with all appropriate comparable sales, market and absorption data, property specifications, materials used within the property and why they were chosen, buyers’ reaction to products selected and sales information.

The NAHB warned builders that not providing enough data to an appraiser is one of the most significant errors they could make.

The guidelines advocate that homebuilders insist that their lenders use qualified, designated appraisers who are experienced in their local area and who understand new construction and green building values. Appraisal Institute members can earn MAI and/or SRA designations, which are considered to be the gold standard in the valuation profession.

While many lenders have relied on appraisal management companies in recent times, the NAHB guidelines reinforce that it is in the best interest of consumers and industry professionals to have a local appraiser with the necessary knowledge and experience assigned to provide a reliable opinion of
value for homes in their area.

View the guidelines

Source: Appraisal Institute

NAHB says "Flawed Appraisals Killing Home Sales, Hampering Housing Recovery"

December 8, 2011 - One out of three builders are reporting losing signed sales contracts during the preceding six months because appraisals on their homes are less than the contract sales price, according to a recent nationwide survey conducted by the National Association of Home Builders (NAHB).  

“The inappropriate use of distressed and foreclosed sales as comparables in determining new home values is needlessly driving down home prices, killing home sales, causing more workers to lose their jobs and delaying a housing and economic recovery,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. 

Too often, due to faulty appraisal practices, brand new homes with sparkling appliances and interior upgrades get compared to a distressed property that has been sitting vacant and in disrepair. The result, in many cases has been that the new house winds up getting appraised at less than the cost of construction. 

That is precisely what is occurring in today’s marketplace, according to the NAHB survey, where a full 60 percent of respondents reported they were experiencing appraisals coming in below their contract sales price. 

"Of those reporting that they had encountered this problem, 53 percent said the appraisal amount was actually less than the cost of building the home."

“This is not only unfair and unreasonable, but it perpetuates the cycle of declining home values, drives more home owners underwater, harms local economic activity and acts as an obstacle to the recovery of the housing market,” said Nielsen. 

These appraisal practices are a major contributing factor to the current acquisition, development and construction (AD&C) lending crisis that has choked off credit for home builders and threatens to prolong the current housing downturn. 

Falling appraised values for land and subdivisions under development have led some financial institutions to stop lending to developers and builders, to demand additional equity and even to call performing loans. 

Since Sept. 2009, NAHB has held four appraisal summits in Washington with representatives of federal banking regulators, the appraisal industry, the housing finance industry, the real estate and housing sectors and others to find solutions that will allow appraisers to develop realistic valuations based on sales that are truly comparable. 

The need to give top priority to addressing the complexity of property valuations in distressed markets and impediments to the flow of appropriate information on homes between appraisers and interested parties was discussed during the most recent summit, which occurred on Oct. 19. 

“Major reforms in appraisal practices and oversight are needed to ensure that appraisals accurately reflect true market values and don’t contribute to price volatility or harm aspiring home owners and move-up buyers,” said Nielsen. “We will continue to work with all stakeholders in this debate to find solutions.” 

With the decline in home prices appearing to have ended or be coming to an end in most parts of the country, resolving the appraisal and credit crunch issues remain a top priority for the association. 

NAHB’s latest Improving Markets Index has shown modest signs of improvement in scattered housing markets where employment is gaining and distressed properties are not as numerous. 

New-home construction stands ready to serve as an engine for economic recovery. Building 100 single-family homes creates more than 300 full-time jobs and provides $8.9 million in federal, state and local tax revenues. 

“Resolving inappropriate appraisal practices and restoring the flow of credit to home builders will not only help to put America back to work, it will provide badly needed tax revenues that is essential for local governments to support schools, police and firefighters in communities across the land,” said Nielsen. 

Source: NAHB