Items Tagged with 'Appraising'

ARTICLES

  • Feature: The Appraisal Problem

    In the appraisal world, it’s no secret that the industry is facing a drastic decline in its workforce, and as the number of certified residential appraisers continues to dwindle, HECM lenders are feeling the pressure. Already lenders are seeing higher fees and longer turnaround times, and some are complaining about a lack of quality as stressed appraisers struggle to meet increasing demand.A closer look at the issues currently facing the appraisal sector reveals a slew of deep-seated problems that are seriously stressing its workforce. For reverse mortgage lenders that rely on quality appraisals to close their loans, these issues are
    Read More
  • Appraising: Confused and Misunderstood

    As the quality control manager for a national appraisal management company, I am directly involved with a large volume of escalated appraisal matters that are placed upon my desk for mediation and resolution. In most cases, these matters involve either a loan officer who is dissatisfied with the results of an appraisal report, or an appraiser who is confused or upset about a request for specific underwriting revisions. I have noticed that the root of many of these disputes is a misunderstanding or a lack of knowledge in relation to specific HUD requirements with regard to the appraiser, the appraisal
    Read More
  • Appraising: Reliable Valuations

    Determining property conditions and current market value quickly and economically with innovative and compliant valuation solutions is critical for reverse mortgage lenders. With more than 20 million eligible reverse mortgage customers who own their homes outright, lenders have great opportunities today to grow and diversify their reverse mortgage portfolios. To manage risks, and to ensure that both accurate and timely valuations are obtained, lenders must work with a reliable appraisal partner. When considering a relationship with an AMC, be sure you have access to the following: Traditional FHA 1004 Valuations More than 90 percent of today’s reverse mortgage originations are
    Read More
  • Appraising: Perspective

    I once had a compliance inspection that had to be completed while my parents were visiting. Wanting to get the inspection out of the way, I scheduled the appointment for as early as possible. To take advantage of the time my parents were in town, I asked my father to accompany me on the inspection. When we arrived at the property it was too dark to take photos, so we parked at the end of a long driveway and waited for the sun to come up. Several years earlier my dad had a heart valve replaced. Now, I don’t know
    Read More
  • Appraising: Competency: More Than Just Geographic

    Competency under Uniform Standards of Professional Appraisal Practice (USPAP) is very clear. It says an appraiser must: (1) be competent to perform the assignment; (2) acquire the necessary competency to perform the assignment; or (3) decline or withdraw from the assignment. Instead of making this determination the appraiser’s responsibility as USPAP intended, some AMCs are taking it upon themselves to decide whether or not an appraiser is geographically competent to complete a report based on his proximity to the I long than sildenafil generic for making I blue pill allergies off claim year canadian viagra hair discontinued - long cheap
    Read More
  • Appraising: Appealing an Appraisal

    You know the situation: You have your application ready to go to the lender. The only thing you need is the appraisal report and your file can be submitted. The appraisal report comes back, you go through it and the value isn’t even close to what you expected. Now you have to break the bad news to your borrowers. Plus, you’re sure that the appraiser didn’t give this evaluation a fair shake. After all, your borrowers have done so many improvements to their property, and you even had a real estate agent run listings and comps and found the value
    Read More
  • Appraising: Including Bank-Owned Sales Comps

    Should an appraisal include or exclude bank-owned sales comps? This is a great question and one that has become more relevant over the past several years. Not long ago, foreclosures and short sales were few and far between and the need to consider these transactions in the market approach was unnecessary. Most “distressed” properties were rough around the edges and the typical buyer didn’t consider them reasonable alternatives. These properties were typically purchased by investors with the intent of cleaning them up, making a few renovations, then listing and selling the property at a higher price for entrepreneurial profit. However, today’s
    Read More
  • Appraising: Reconciling Comparable Sales

    When an appraisal comes in below the majority of adjusted comparables, how does the appraiser determine the value? Should he take an average of the comparable values? Averaging comparable sales may appear to be a way to arrive at an appraised value, but averaging comparables is not a good appraisal practice or approach to value. When comparables are plentiful (in a new housing tract, for instance), it will appear as though the appraiser is averaging the comparables, but the sales comparison approach to value’s purpose is to determine the most similar sales to the subject, reconcile the differences and arrive
    Read More
  • Appraising: Determining the Value of the Subject Property

    Once all the comp values have been adjusted, is the average of those values used to determine the value of the subject property?On the surface, this seems like a reasonable approach. Like properties are selected and then adjustments are applied to make them as similar to the subject as possible. It only stands to reason, if the adjustments make the comparable properties like the subject, an average of the adjusted sales prices should reflect a supportable final value. Although everyone easily understands this highly mechanical method, it’s not the procedure appraisers are taught to elect their final value by the
    Read More
  • Appraising: Meeting the FHA/HUD Minimum Property Requirements

    While most homeowners may think a reverse FHA mortgage is a cinch, you can often be denied the loan if your home does not meet the FHA/HUD Minimum Property Requirements (MPRs). Loan officers, underwriters and homeowners can ask several quick questions to ascertain whether or not a home meets the MPRs during the appraisal walk-through.We spend time measuring, taking photos and checking to make sure the home is indeed FHA compliant. The appraiser’s visit to the property usually takes about 30 to 40 minutes, depending on the size and condition of the home. Below are some of the most common
    Read More