Appraisal Scoop

Nightline from ABC News: Secrets of a 48-Hour Home Appraisal Makeover

This family purchased their home six years ago for $325,000 and are currently asking $225,000.  They recently had the home appraised for $190,000.  ABC called in Barbara Corcoran, real estate expert (and on the panel of TV's "Shark Tank") for her advice.    ABC then called in an "Appraisal Expert" to help this family raise their $190,000 appraised value by $24,000 in just 48-hours!

New UAD Resource Available and Upcoming UCDP Release - Freddie Mac

September 18, 2012

The GSEs (Freddie Mac and Fannie Mae) appreciate the industry’s continued successful compliance with the Uniform Appraisal Dataset (UAD) standards and to provide the required data for successful submissions to the Uniform Collateral Data Portal® (UCDP®). Today, we are providing you with a September UAD update and notification of changes in the UCDP on October 7, 2012.

New UAD Resource

We closely monitor the use of the UAD, and will provide you with UAD updates to support the successful submission of the UAD appraisal reports in the UCDP.

In support of your continued use of the UAD and successful submissions to the UCDP, we are
providing additional guidance for using the UAD in the September Uniform Appraisal Dataset Update
resource document. The latest resource document provides you with:

• Upcoming fatal UAD edits
• Reminders about PDF Extraction
• Updates on Financing Concessions for Comparables

The September UAD Update and other UAD business resources are available on the FreddieMac.com
Web site. The GSEs will provide future updates as needed.

Upcoming UCDP Release

On October 7, 2012, Freddie Mac and Fannie Mae will update the UCDP to implement enhancements for appraisal submissions to both GSEs. The enhancements include an update to error messaging for Hard Stop 9001, an update to the View/Edit screen, and a change related to appraiser trainee license numbers.

For more information, refer to the UCDP October Release Notification.

This communication relates to the Uniform Mortgage Data Program^®, an effort undertaken jointly by Fannie Mae and Freddie Mac at the direction of their regulator, the Federal Housing Finance Agency.

New UAD Resource Available and Upcoming UCDP Release - Freddie Mac

September 18, 2012

The GSEs (Freddie Mac and Fannie Mae) appreciate the industry’s continued successful compliance with the Uniform Appraisal Dataset (UAD) standards and to provide the required data for successful submissions to the Uniform Collateral Data Portal® (UCDP®). Today, we are providing you with a September UAD update and notification of changes in the UCDP on October 7, 2012.

New UAD Resource

We closely monitor the use of the UAD, and will provide you with UAD updates to support the successful submission of the UAD appraisal reports in the UCDP.

In support of your continued use of the UAD and successful submissions to the UCDP, we are
providing additional guidance for using the UAD in the September Uniform Appraisal Dataset Update
resource document. The latest resource document provides you with:

• Upcoming fatal UAD edits
• Reminders about PDF Extraction
• Updates on Financing Concessions for Comparables

The September UAD Update and other UAD business resources are available on the FreddieMac.com
Web site. The GSEs will provide future updates as needed.

Upcoming UCDP Release

On October 7, 2012, Freddie Mac and Fannie Mae will update the UCDP to implement enhancements for appraisal submissions to both GSEs. The enhancements include an update to error messaging for Hard Stop 9001, an update to the View/Edit screen, and a change related to appraiser trainee license numbers.

For more information, refer to the UCDP October Release Notification.

This communication relates to the Uniform Mortgage Data Program^®, an effort undertaken jointly by Fannie Mae and Freddie Mac at the direction of their regulator, the Federal Housing Finance Agency.

Senators Reintroduce Bill to Expand HARP to Homeowners with Equity - Eliminate appraisal costs for all borrowers

Two U.S. Senators have reintroduced a bill which aimed at giving Freddie Mac and Fannie Mae (the GSEs) financed homeowners with equity the some opportunity to refinance as currently enjoyed by homeowners who are underwater.  The Responsible Homeowner Refinancing Act would extend the guidelines and reduced fees available under the Home Affordable Refinance Program (HARP) to homeowners regardless of the loan-to-value (LTV) ratio of their current GSE owned or guaranteed loan.

According to the THOMAS Library of Congress website, the bill was originally introduced on May 10, 2012 and referred to the Senate Banking Committee where it apparently died.  The new version is sponsored by Robert Menendez (D-NJ) and Barbara Boxer (D-CA).

According to its sponsors, the bill would be available to borrowers who are current on their existing GSE owned or guaranteed loans.  It would:

• Remove barriers to competition.
  The lender currently servicing a loan has an advantage over a new lender which faces stricter underwriting criteria and greater risks from the GSEs' reps and warranties should the borrower default.  These different standards have hindered competition, resulting in higher prices and less favorable terms for borrowers.  The proposed legislation would direct the GSEs to require equalize the underwriting and associated reps and warranties between new lenders and current servicers. 
• Guarantee equal access to streamlined refinancing for all GSE borrowers. 
  The revised HARP guidelines continued to distinguish between borrowers with LTVs above 80 percent and those below, leaving higher equity borrowers with greater costs and administrative burdens and effectively locking them out of the program.  The bill will allow all lenders to offer a single, streamlined program to all GSE borrowers who have been paying their loans on time.
• Eliminate up-front fees completely on refinances. 
  Under enhancements to HARP earlier this year, some fees for HARP loans were lowered and others were eliminated completely, creating what the sponsors call an economically indefensible situation in which borrowers with significant equity face steeper costs for refinancing than borrowers with no equity and hence presenting considerably greater risk.  These additional fees can be as high as two percent of the loan amount.  The bill prohibits the GSEs from charging up-front fees to refinance any loan they already guarantee, which is also in the best financial interests of the GSE's and taxpayers.
• Eliminate appraisal costs for all borrowers. 
  Borrowers who live in communities without a significant number of recent home sales are often precluded from the Automated Valuation Models widely used by the GSEs and must pay hundreds of dollars for a manual appraisal to refinance.  The proposed bill will require the GSEs to develop additional streamlined alternatives to manual appraisals, eliminating a significant barrier and reducing cost and time for borrowers and lenders alike, especially in rural areas
• Further streamline the refinancing application process.
  Since participation in HARP requires that borrowers be current on their loans and with a demonstrated commitment to timely payments, there is no reason to require proof of employment or income for these loans.  The GSEs already own the risk which will only decrease with lower interest rates and payments.  The bill eliminates employment and income verification requirements, further streamlining the refinancing process and removing unnecessary costs and hassle for lenders and borrowers alike.
• Save taxpayers money. 
  The sponsors cite the Congressional Budget Office which says the bill will pay for itself through reduced default rates of existing GSE loans.

Menendez said, "Passing this bill will get rid of the red tape that leaves millions of borrowers trapped in higher interest loans, puts money back into the pockets of middle class families, and strengthens our economy. I'm asking Republicans to join us in putting families first."

Boxer said, "This bill is a win-win-win: homeowners will have more money in their pockets, Fannie and Freddie will see fewer foreclosures, and the housing market and economy will be strengthened. That's why the Menendez-Boxer bill has such broad support from industry and consumer groups."

The legislation has received support from the Mortgage Bankers Association, National Association of Realtors, National Association of Home Builders and the Center for Responsible Lending.

  View Article: http://www.mortgagenewsdaily.com/09112012_refinancing_harp.asp

In Search Of One Brave Appraiser - TBWS Daily Show Video

Source:  TBWS Daily Show Video - Already over 100 comments on their site!   

Should an appraiser really have to be "Brave" just to do their job?  No!  But that's sort of what it comes down to when any misstep high or low can result in retaliation by an AMC, Lender, or Regulator. 

The way "appreciating" markets have always worked in my market is that values "creep up" in small increments.  A few thousand dollars or a 1% or 2% percent increase in new home values per month or quarter.  As soon as sales AND listings started creeping up . . .appraisals would reflect that trend. 

However, when builders JUMP prices up tens of thousands of $$$$$ or 10% -15% without any support or change in existing stock, is it any wonder that appraisers and underwriters flinch?  

The big question is my mind is WHY we continue to expect appraisers to reconcile to a "Point Value" instead of a "Range of Value" like appraisers in any other field?