What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Increasing lending and servicing capacity – regardless of rates

Business process outsourcing and digital transformation are proven solutions that more companies in the mortgage industry are turning to. Download this white paper for more.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.

Politics & MoneyInvestmentsMortgageReal Estate

Appraisers accuse federal regulators of recreating housing crisis conditions

Appraisal Institute blasts proposal to eliminate appraisal requirement on certain home sales

As one might expect, appraisers are none too pleased about the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve proposing to eliminate the appraisal requirement on certain home sales of $400,000 and below.

Earlier this week, the FDIC, OCC, and Fed proposed increasing the appraisal threshold from $250,000 to $400,000, meaning that some home sales of $400,000 and below would no longer require an appraisal.

According to FDIC data, increasing the appraisal threshold from $250,000 to $400,000 would have exempted an additional 214,000 mortgages from the agencies’ appraisal requirement in 2017.

And while that would mean that there would be 214,000 fewer appraisals, and therefore 214,000 fewer appraisal fees for appraisers, that is not the appraisal industry’s chief concern.

According to Appraisal Institute President James Murrett, the newly proposed rules would add significantly more danger to the lending environment and harken back to the way things were just before the financial crisis.

“The Appraisal Institute strongly objects to the FDIC’s proposal to raise residential appraisal thresholds,” Murrett said in a statement provided to HousingWire.

“Congress just considered establishing a residential appraisal exemption and instead chose to enact a vastly different allowance involving appraisers in rural areas,” Murrett continued. “This proposed rulemaking flies in the face of this action, and recreates the same type of environment that led to the housing crisis.”

Murrett said that increasing the appraisal threshold will “threaten the vital role” that appraisers have in real estate deals.

“This action would undermine the crucial risk mitigation services that appraisers provide clients and users of appraisal services,” Murrett said.

“Raising the threshold means more evaluations will be allowed in place of appraisals. The Appraisal Institute anticipates that will result in a return to the loan production-driven environment seen during the lead-up to the financial crisis, where appraisal and risk management were thrust aside to make more – not better – loans,” Murrett continued. “Apparently, the FDIC has learned nothing from that experience.”

According to Murrett, reducing regulations may make some sense early on, but “the FDIC’s announcement raises significant safety and soundness concerns that the Appraisal Institute finds deeply disturbing.”

Most Popular Articles

Do higher mortgage rates mark the end of the refi wave?

As mortgage rates rose over the last week, refi activity fell. But millions of borrowers are still eligible if lenders can get them through the pipeline.

Feb 23, 2021 By

Latest Articles

Finicity launches verification service approved by GSEs

Finicity, an open-banking solutions provider that was acquired by Mastercard in October, announced that it is dipping further into the mortgage space.

Feb 25, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please