Appraisal Scoop

CoreLogic® Introduces New Platform That Integrates MLS and Public Record Data for Appraisers

PR: November 09, 2011, Santa Ana, Calif. -

-AppraiserSuite Will Help Appraisers Find "Fresher" More Relevant Comps-

CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, today announced the release of AppraiserSuite, a platform that combines multiple listing service (MLS) and public record data in a single online workspace for appraisers, review appraisers, underwriters and quality control personnel. The new subscription-based platform enables appraisers to quickly research and compile property and market information from multiple sources. AppraiserSuite also streamlines the comparable selection process and offers the ability to export data into standard appraisal reports through form population tools.

Download a Sample Report - Click Here

AppraiserSuite provides direct access to the MLS data in many of the top U.S. markets gathered through the CoreLogic Partner InfoNet™ program in which more than 66 MLSs participate. By incorporating MLS and public record data into a single workspace, AppraiserSuite provides details on the subject property, comparable properties, historical transaction information, tax data, and other property and market area characteristics. AppraiserSuite is also able to highlight inconsistencies between the two data sources, and offer the opportunity for Appraisers to contribute their own information that may help reconcile these differences.

AppraiserSuite includes leading mapping technology that provides a view of neighborhood factors that impact a property's value like parks and active railroad lines. AppraiserSuite also allows appraisers using ACI2010™ to import their property and comparable research data directly into industry standard appraisal report forms such as a Uniform Residential Appraisal Report (Form 1004) without manually rekeying the information.

Ben Graboske, CEO of CoreLogic MarketLinx, said, "Real estate professionals contribute local market insights directly into their MLS systems. AppraiserSuite makes it easier for appraisers to gather the information they need when determining the value of a property. By incorporating MLS information into AppraiserSuite, we are providing appraisers with a broader view of the market and with the tools to make the entire appraisal process more efficient."

In addition to helping appraisers generate reports for real estate financing purposes, AppraiserSuite can generate an alternative valuation report such as a desktop appraisal, APO or an addendum to other standard appraisal forms. The report follows USPAP compliance standards and is available as a PDF or a MISMO XML Output.

AppraiserSuite is also available for Appraisal Management Companies (AMCs) and can be integrated into an AMC's current order management system, creating a seamless user experience for appraisers and quality review teams.

CoreLogic has been featuring AppraiserSuite during the Valuation Expo in Las Vegas, Nev. on November 7-9, 2011. New AppraiserSuite users will be offered a $150 discount on a one-year subscription if they sign up by November 30, 2011.

Homeowner’s Lawsuit Against Major Banks Progresses Slowly, Alleges Predatory Lending and Unfair and Deceptive Trade Practices by Wells Fargo and Others

Pelayo Duran Faces “David and Goliath” Battle In Potentially Precedent-Setting Case In Florida Court

Miami, FL (PRWEB) December 7, 2010  - Coral Gables, Fla. homeowner Pelayo Duran claims in his lawsuit that what he wanted was the attractive loan he saw advertised in the Miami Herald to refinance a home for his growing family. Instead, he ended up in the middle of an endless and costly legal fight with the nation’s largest banks accusing them of illegal predatory lending and unfair and deceptive trade practices.

According to the lawsuit, Duran saw an ad in the Miami Herald published by Wells Fargo Home Mortgage. The ad was offering an Adjustable Rate Mortgage (ARM) at a rate of 5.75%, with 10 years interest only payments, a fixed interest rate for 10 years, and a 5.1 annual percentage rate. Duran’s plan was to buy down the loan rate at closing 1 to 2 point and pay off the home in about 10 to 15 years.

The lawsuit states Duran contacted Wells Fargo because he had a longtime business relationship with the bank and the terms in the ad were the most favorable. Attorneys claims when Duran called Cindy Sierra who he thought was a bank representative, she first told him that the advertised rates were not available. She then told him that she would get him an even a better deal. Duran believes that he, just like millions of other Americans, was baited into applying for an attractive loan that never existed, only to be switched to a high-risk subprime loan.

According to the lawsuit, Sierra told Duran to leave the income section on the application blank until such time as she could conduct a “pencil search,” a prohibited but common practice used by mortgage brokers and lenders in order to maximize the loan amount in which a mortgage broker would shop for an appraiser to support the highest value that the lender could hit in originating the loan.

Initially, Sierra informed Duran that his home was worth $1.5 Million. The appraiser, Lee Rosenthal who worked for and was hired by Rels Valuation, (also Wells Fargo company), ultimately determined and represented to Duran that his home, which was purchased for $984,000 four months earlier, was now worth $1.2 million.

“Unbeknownst to me, she created my loan by adjusting the value of my home to my debt-to-income ratio,” said Duran. “They never considered my ability to repay the loan. All they cared about was the appraised value and my good credit score. What I also discovered was that a Wells Fargo representative was actually originating a loan for Greenpoint Mortgage Funding and that immediately upon the closing of my loan, Greenpoint would turn around and sell my loan right back to Wells Fargo as trust administrator for a pool of loan. In addition, Fred Schlang, SRA, an appraisal expert, later alleges that the bank’s appraisal was inappropriately inflated."

 According to the lawsuit, after haggling over the terms for several weeks, Duran and his wife were disheartened at the closing when the final Greenpoint loan agreement reflected a financed amount of $920,000 with an APR of 5.622% fixed during a five year period, with rate adjustments up to twice per year, a pre-payment penalty, and a rate cap of 10.5%, (not the 5% he had been previously offered in writing) and they would not be able to buy down the rate 1 to 2 percentage points at closing, as he had been previously promised.

Continue reading the FULL article

First American Introduces Appraiser-Validated Price Opinions - Identify "High Risk" BPOs

First American Valuation and Property Solutions, a member of The First American Corporation family of companies, has announced a new valuation service, the Appraiser-Validated Price Opinion.

Appraiser-Validated Price Opinions, the company says, are expert opinions that provide a second level of review for broker price opinion (BPO) users, without the need to build in-house review functions. While this is not an appraisal, a licensed appraiser confirms the specific set of values determined by a local Realtor by looking at comparable sales and verifying accuracy. If discrepancies are found, the appraiser provides a new set of values, complete with an explanation of how they were determined.

Available as a complete outsourced option or as a supplement to in-house review teams, Appraiser-Validated Price Opinions help clients identify high-risk BPOs, the company says.

“This year servicers and investors will order millions of BPOs as they work through loss mitigation scenarios and attempt to value portfolios and distressed assets,” says Joni Pierce, division senior vice president for First American Valuation and Property Solutions. “With this level of activity, it is even more important to verify accuracy while increasing throughput and reducing processing costs.”

Appraiser-Validated Price Opinions are available as exterior-only or exterior and interior reports. Reports can be made available to the customer in seven to 10 days.

SOURCE: The First American Corporation and MortgageOrb.com

"Old School Appraising" - Are you STILL searching for the BEST comps?!

Re-blogged ActiveRain article "Great News For Appraisers", with permission from Mike Lay

I am very excited today because I found out that we NO LONGER NEED TO FIND AND USE THE "BEST" COMPS IN OUR REPORTS! Nope, it looks like that old, outdated method of choosing the most comparable sales is going the way of the woolly mammoth. From now on, the only important attribute of a comparable is that it MUST HAVE SOLD IN THE PAST THREE MONTHS.

Think of how much easier our life is going to be now! We don't have to worry about stupid little things like proximity, or similarity of quality, age, condition, lot size, age, or even size. So feel free to go off the charts with your adjustments, because that is okay now! As long as they sold in the past three months, they are automatically now your best comps.

  Of course you are thinking, "Mike, you're losing it. The most recent sales are not automatically the best sales. That's crazy talk! Often sales that are older are much more similar and much better indicators of value. Who would think that a 3,000sf house built last year is the best comp for a 60 year old 1,900sf home just because it was a recent sale? You just need to make sure that the area has not experienced a decline in values, or is experiencing extended marketing times which may adversely affect the Subject as compared to those older sales."

That, unfortunately, is 2008 thinking. You need to bring yourselves up to date! There is a new paradigm now! At least according to the underwriters I have been dealing with lately, who refuse to accept an appraisal with 2 recent sales and three over 6 months (but less than 9 months) that were the EXACT SAME FLOOR PLAN, and after I had provided extensive data that sales were increasing, sale prices were stable, average cost/sf was stable, etc. (I've now had this discussion about 4 different appraisal reports with 3 different lenders.)

There I was, stuck in my old ways of picking the most similar comps and providing statistical analysis to show why they should be given most consideration. All I had to do was stick in 2 more sales that sold in the past 3 months, regardless of size and age differences, and everything was fine and the file was through underwriting!

Fortunately, I am now enlightened to the new ways, and am looking forward to just searching an ever-expanding search area without regard to similarity until I can capture 3 or 4 sales that occurred within the past 3 months. It will be so much easier, I now look forward to each new day with such enthusiasm I can hardly stay in bed! No more dreary old research and analysis for me! Join the wave!!!!

PS - For those of you unable to recognize rampant sarcasm when you read it, I am just kidding. There is no new method, no new paradigm, just me venting a little. Sorry to have gotten your hopes up...

AUTHOR: Mike Lay, Appraisal House - Austin Office: Serving Austin, San Antonio, Houston, and Dallas/Ft. Worth.  (800) 497-2660 X-3  Cell - (512) 785-5149

Comp Searches are for Suckers * - Appraiser "Lollipop Guild"

Re-blogged from Sara Goodwin's ActiveRain blog:

Regardless of if and when the HVCC will be placed into existence (in January 2009, March 2009, July 2009? Ever?), many appraisal management companies have done their due diligence of marketing to lenders that they will have to go through a middle-man such as themselves in order to conduct business in 2009.

‘And why not start today?' they will say to their potential new clients. And their potential new clients will say ‘Why not?'.

Once the lenders start their contracts with these management companies they will discover that what they are used to might be a thing of the past. ‘No comp searches? Really?' the lenders will say.

This is when these lenders will search out you and me.

We are the potential* suckers that will give them the ranges of values that they seek... that bit of confidence that will push them forward with the appraisal process. But will you and I receive the order for our troubles? Heck no. They now have a contract with this appraisal management company who will dole out the appraisal request that should have been ours to one of their desperate minions.

Will we turn into these desperate minions? Perhaps (let's face it, these are tough times). But in the meantime why give away the milk for free?

‘And what if this is a lender that has not signed on with an AMC... a potential new client?' you say. Just require an appraisal order prior to any work on a property is done. Many of us have made that our practice for years.   Source: click here

* I am not accusing any of us of doing free comp searches or being suckers in general.

Author: Sara Goodwin - Ashcroft & Associates - Portland, OR - Profile

Appraisal Standards Board's July Q&A incorporates new "Comp Check Assignment" terminology

T.J. McCarthy, of T.J. McCarthy & Associates, Tinley Park, IL has the following assessment of the ASB's most recent Q&A.  The following is being reprinted from an Illinois Coalition of Appraisal Professionals (ICAP) alert. 

The Appraisal Standards Board (ASB) has just issued their July 2008 USPAP Q&A - Download July_2008_QA.pdf with the following questions/topics:

• Electronic Report Delivery
• Can Appraisers Perform "Comp Check" Assignments?
• Can Appraisers Perform "Comp Check" Assignments for Free?
• Is Disclosure of a Free "Comp Check" Assignment Required?

This is the most controversial Q & A I have ever read. (click here)  You can be assured that ICAP, the Illinois Appraisal Board and DPR will be reviewing the wording in this Q & A carefully.

Of special concern is the ASB's incorporation of new terminology found no where in USPAP;

“Comp Check Assignment”

“Full and Traditional assignments”

The Illinois Appraisal Board has made its position on comp checks very clear at past ICAP seminars.  They MUST COMPLY with USPAP.  The word comparable means a thought process must be implemented by someone to determine what compares.  If it’s the appraiser, that's filtering folks! 

A comp check is not the same as providing raw market data.  An appraiser should be able to provide data to a client based on specific parameters provided by the client.  In that case the word comparable could even apply, but it must be clear that it is comparable based on the client's parameters, not the appraiser's.  If there is a value conclusion, whether it’s verbal or written, then you have just made an appraisal.

The second question in the July Q & A reads as follows:

I’m a residential appraiser and have been asked to perform a "comp check" (or "pre-comp") assignment, where a client wants to get an idea of the value of a home prior to proceeding with a mortgage financing transaction. Does USPAP allow me to perform this type of assignment?

How is the highlighted part of this question not a predetermined value issue?  I feel the correct answer to this question should have been, “No, that’s not a comp check, that’s an appraisal”.  I have no problem with the ASB providing direction to appraisers regarding services to clients, but the way this answer is worded will only add fuel to the COMP CHECK fire, not suppress it. 

I have spoken with Brian Weaver, Director of the Appraisal Division of DPR, Bob Gorman, MAI, Chair of the Illinois Appraisal Board and Mike Maglocci, MAI, President of ICAP regarding the July Q & A.  They also expressed their concerns regarding the wording in this document.

I would like to make it clear that the opinions in this alert are those of TJ McCarthy, SRA only and not ICAP, the Illinois Appraisal Board or the Department of Professional Regulation.  Call it editorial privilege as webmaster.

Click on the following link to read  the July Q & A - Download July_2008_QA.pdf 

ICAP would like to hear from our members regarding these questions.  You can send your opinions and comments to [email protected] and they will be forwarded to the ICAP Board and the Illinois Appraisal Board.

TJ McCARTHY AND ASSOCIATES, LTD.
Real Estate Appraisers and Consultants
7903 West 159th Street, Suite B
Tinley Park, Illinois 60477

Email: [email protected]
Phone:          (708) 614.7200      
Fax: (708) 614.7228

Appraisal Standards Board Issues Comp Check Q&A's - You are now entering the ASB Zone. . . Where questions are answers and answers are questions

The Appraisal Standards Board (ASB) has just issued their July 2008 USPAP Q&A - Download July_2008_QA.pdf with the following questions/topics:

• Electronic Report Delivery
• Can Appraisers Perform "Comp Check" Assignments?
• Can Appraisers Perform "Comp Check" Assignments for Free?
• Is Disclosure of a Free "Comp Check" Assignment Required?

The following is a lighthearted, but serious, review of the "Comp Check" Q&A's provided by George Dodd, SRA and originally appeared on the WinTOTAL Users Group forum:

It is "a dimension not only of sight and sound but of mind", "a place of things and ideas", "between the pit of Man's fears, and the summit of his knowledge". (Rod Serling).

You are now entering the ASB Zone. . . Where questions are answers and answers are questions.

1. You cannot do a comp check with the purpose of receiving an order for appraisal on the same property. However you can do comp checks for the purpose of maintaining a business relationship with a client in the attempt of getting business. (see the difference?)

2. You can do a comp check and get an appraisal order for an appraisal on the same property as long as you didn’t do a comp check for the purpose of getting the order. And you can continue to do comp checks as long as you are not doing comp checks to get specific appraisal requests. (see the difference?)

3. If you did a comp check and then received an appraisal request for a property you did a comp check for, but you didn’t do the comp check in order to get the appraisal assignment, then you don’t need to disclose that you did a comp check because the comp check was not done for the purpose of getting the appraisal request. However, if you did the comp check for the purpose of getting the appraisal request than you cannot do the appraisal because it was conditioned on doing the comp check. However, if you did the comp check for the purpose of getting the appraisal report and then received the appraisal report as a result of doing the comp check then you need to disclose you did the comp check in the appraisal you can’t do.

Of course this does not answer the question: If I do comp checks for a client on a regular basis in the course of receiving work, or the client otherwise expects comp checks to be done in order to receive appraisal requests, does that evade the specific property comp check and appraisal request dilemma?

One must concede the ultimate humor with these Q&A from the ASB. Who else could answer a question so directly and specifically and provide guidance for us grunts. In the end it is up to each of us individually to do right and maintain our own ethics.

It is unfortunate that others will subvert the USPAP rules to their own ends. But the USPAP is not created to protect appraisers, its purpose and function is to protect the users of appraisal services and provide them the maximum amount of latitude in demanding appraisers do what they want.

AUTHOR: George Dodd, SRA.  Mr. Dodd can be reached by email at:  [email protected] or by phone at          (804) 746-2270       .

Runt Rants - AMC "Additional Comp" Request - Pressure or Good Business?

AUTHOR: Ken Verrett is the owner of Acorn Appraisal Associates, a 22 year old firm offering a wide range of quality appraisal services to the Financial and Business Communities in the greater Houston SMSA.  Read all Runt Rants on Appraisal Scoop.

I had an interesting discussion with an appraiser in last week regarding AMCs. I thought we'd all benefit from his situation his view of the market, and his business decisions. Robert D. Mims IV owns 30-A Appraisal group, Inc. in Florida. He sent me the following email.

Ken -

I've read your articles and actually submitted to you an email last year from a broker that was pretty nasty. I subsequently passed it along to New York District Attorney. I was mentored by an MAI, I do commercial with an MAI, and take my SRA designation class in September.

Below is an email I received from an XXX rep when I asked for an additional $50 to consider two additional sales - after gridding 3 sales, 1 pending, and 2 actives for a total of 6 comps.

What alarms me is not that XXX is willing to pay additional $$$ for the additional scope of work, but that she said SSS will pretty much request additional consideration of sales whenever the purchase price is not met. So regardless of the quality, the number of comparables, Certification #7, etc. there will be an automatic request to consider additional sales to try and meet the purchase price?

Before I respond to XXX, I want your take. Am I overreacting here by interpreting this email as pressure to influence value? And a subtle threat that if I don't they'll will simply assign the work to other appraisers?

Here's XXX's response to the fee increase request I sent. What say you?

Click here for the REST of the story . . .

Promises . . .Promises: If you'll just do this ONE "Comp Check"!

Everyday appraisers across the country are called by potential clients with offers of work IF they'll just to this one FAVOR!

Yesterday I blogged about my call from a mortgage broker in Chicago.  She asked,

"What's your fee for an appraisal in Danvers, IL?"  I told her.  Then she asked, "How you you feel about charging an extra $100 so that I could make a little something-something on the deal?" 

Today I've got a great example of how one broker went Fishing For Appraisers.  As you read the letter below, ask yourself: Is the mortgage broker looking for a free appraisal or is he really just shopping for the appraiser with the highest Comp Check value?

After-all, he knows the appraiser ". . .can't hit every one" but if the value "looks good" the appraiser will qualify for their list.   Read on!

Dear Sir:

I am a mortgage banker with XYZ Home Loans and need QUALIFIED APPRAISERS ASAP.

We are a mid-sized lender performing just shy of 1 billion annually in loan volume and have just recently entered your state. We originate mortgages in half the country with over 150 mortgage bankers centrally located in Any-town, USA.

In addition we have just started a sister company XYZ Home Settlement Services that provides title and appraisal services for our company and a list of others.

We have just begun to market in your area, which means at present we do not have any appraisers in your area. We drop over a million pieces of mail on a monthly basis and to test your region we dropped 50K mailers last week with overwhelming response.

For any new area we break into, we must find competent appraisers. Since we do not have any appraisers in your area, you could be the first approved appraiser in XYZ APPRAISAL NETWORK, which could mean anywhere between 10 to 25 appraisals per month.

However, let us go one-step at a time. Let us start by running a comp check.  If it looks good, we will go forward.

I also need a copy of your current E&O, appraiser's license, W-9 tax information, area of coverage, and contact information.

If you can legitimately get some values and of course, we know you cannot hit every one but if it looks good, we can get you in as an approved member of XYZ APPRAISAL NETWORK.

Once that happens then all 150 Mortgage Bankers that have workups will call you first because you will be the only one approved in your area.

So let me give you the name and address of the property in "ANYWHERE" County where I already have a deal:

123 Your Street

Any Town, USA

I look forward to doing more business with you in the future.

Have a great day,

John Doe

Author: Brian J. Davis, RAA - Brian Davis & Associates - Brian has over 23 years of appraisal experience in Central, IL and hosts the Appraisal Scoop blog and the WinTOTAL Users Group an email forum for appraisers.

Comp Checks - Appraisal investigation changes the way ONE firm does business

According to the story Mitchell Maxwell Revises Appraisal Rules Amid Probe (Update1) by Sharon L. Crenson,

"Mitchell, Maxwell & Jackson Inc., the real estate appraiser subpoenaed in a state mortgage industry probe, said it won't provide preliminary values on homes it hasn't seen or allow customers to include their own estimates on orders."

"The appraiser, which valued about 9,000 Manhattan properties last year, won't do quick valuations based on comparable homes nearby, the New York-based company said in a note to clients on its Web site. It also won't accept orders from mortgage brokers or lenders that include estimated values. Such practices have come under scrutiny in several state investigations."

``Value, comp checks, or pre-comps of any kind (written or verbal) will not be performed prior to us being engaged for that assignment,'' Mitchell Maxwell said in its client note. ``Although most are used for legitimate purposes, some individuals use them to `fish' for the appraiser with the highest value estimate.''

Mitchell Maxwell wanted to address the issue to set an example for the industry, said Y. David Scharf, the company's attorney.

`Bad Business'   ``We decided, if that's an industry problem, we should address it,'' Scharf said. ``We didn't do it for other reasons, for other business reasons. We thought it was bad business to do that.''

Click here for the complete article

Related Appraisal Scoop Stories:

• Comp Checks: Shifting Liability to Appraisers?
• Runt Rants - Comp Checks -- A legal opportunity -- Update
• Runt Rants - Comp Checks -- A "Legal" Opportunity?
• Fishing For Appraisers - The Comp Check "Bait & Switch" Technique
• Comp Checks - Value Opinions Put Appraisers "On The Hook"
• Value Checks, Comp Checks, Compouts: An Understandable Desire, But a Bad Idea
• "Can you check comps for me? I want to know if I should order an appraisal"