http://www.valuationreview.com/ME2/Console/XmlSyndication/Display/RSS.asp?xsid=8C12B77804C84E4989BCC1CC676051EB Valuation Review - Daily News Headlines http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=231A165FBE694F88847C40FBF32C63D8 In this article: FHA HUD Federal Register Credit Score The Department of Housing and Urban Development introduced policy changes intended to reduce the risk of loans insured by the Federal Housing Administration (FHA) and is soliciting public comment through Aug. 15, according to HUD’s July15 notice in the Federal Register. The FHA is proposing policy alternations that would update credit and down-payment requirements for new borrowers as well as limit seller concessions and tighten underwriting standards for manually underwritten mortgage loans, Under the FHA policy proposal, borrowers with credit scores of less than 580 will be required to make a minimum 10 percent down-payment on a loan, while those with scores of less than 500 will no longer qualify for an FHA-insured mortgage. Borrowers with scores over 580 will continue to qualify for the FHA’s signature 3.5 percent down-payment program. As for seller concessions, the FHA is looking to reduce the maximum percentage of concessions it allows a seller to contribute from 6 percent down to 3 percent – with the idea that this will bring the agency’s policy more in line with industry standards, according to HUD’s notice in the Federal Register. In addition, the FHA also wants to ensure it mitigates risk in regard to manually underwritten loans. Under the FHA’s proposed policy changes, when using compensating factors in the underwriting process, lenders will be required to consider a borrower's credit history, loan-to-value percentage, debt-to-income ratio and cash reserves as a tool to gauge future loan performance for any such mortgages. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Mon, 26 Jul 2010 00:00:00 EST 231A165FBE694F88847C40FBF32C63D8 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=2DFD98417A7B4E4AA79D4149619A0264 Existing-home sales slowed in June but remained at relatively elevated levels, according to the National Association of Realtors (NAR). Existing-home including single-family, townhomes, condominiums and co-ops, fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8 percent higher than the 4.89 million-unit pace in June 2009.   Lawrence Yun , NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said.   “Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”   According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.74 percent in June from 4.89 percent in May; the rate was 5.42 percent in June 2009.   The national median existing-home price for all housing types was $183,700 in June, which is 1.0 percent higher than a year ago. Distressed homes were at 32 percent of sales last month, compared with 31 percent in May; it was also 31 percent in June 2009.   NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson , Ariz. , said softer home sales expected this summer don’t tell the whole story. “Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,” she said. “Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value Realtors bring to buyers and sellers in this market.”   A parallel NAR practitioner survey shows first-time buyers purchased 43 percent of homes in June, down from 46 percent in May. Investors accounted for 13 percent of sales in June, little changed from 14 percent in May; the remaining purchases were by repeat buyers. All-cash sales were at 24 percent in June compared with 25 percent in May.   Total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May.   “The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” Yun said. Raw unsold inventory remains 12.7 percent below the record of 4.58 million in July 2008.   Single-family home sales fell 5.6 percent to a seasonally adjusted annual rate of 4.70 million in June from a level of 4.98 million in May, but are 8.5 percent above the 4.33 million pace in June 2009. The median existing single-family home price was $184,200 in June, up 1.3 percent from a year ago.   Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 960,000 in June and are 17.1 percent above June 2009. The median price in the Northeast was $244,300, down 1.2 percent from a year ago. In this article: National Association of Realtors Lawrence Yun Vicki Cox Golder Freddie Mac   Existing-home sales in the Midwest dropped 7.5 percent in June to a pace of 1.23 million but are 11.8 percent higher than a year ago. The median price in the Midwest was $155,900, down 0.1 percent from June 2009.   Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Mon, 26 Jul 2010 00:00:00 EST 2DFD98417A7B4E4AA79D4149619A0264 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=C48345AA746841BC946402A598A638D9 In this article: October Research Corp. Tim Conley Phil Schulman LPS SoftPro October Research Corp. on July 22 announced the launch of an online video initiative designed to inform and educate visitors within its suite of industry Websites. Each of the company’s media products, The Title Report , The Legal Description , Valuation Review and RESPA News , will soon feature video interviews with industry experts, innovators, and thought leaders in the settlement services industry. “We are pleased to expand into video in order to enhance the market presence of our media products and better meet the information needs of our readers, subscribers and advertisers,” said company COO Chris Casa . “Online video offers immediate access to cutting edge information and opinions, with a deeper level of engagement. We believe our video initiative will deliver an enriched relationship with our audience.” The Title Report , the leading publication for the title insurance industry, will be the first to offer an industry video-cast, which will feature October Research Editor Kelly McCarel interviewing well-known RESPA legal authority Phil Schulman of K&L Gates. The video will launch Aug. 2, and will be sponsored by LPS SoftPro. “LPS SoftPro is excited to be the founding sponsor of this video series and proudly supports October Research's Corporation's efforts to provide informative and educational content to the industry,” said Tim Conley , LPS SoftPro’s vice president of sales and marketing. “We anticipate this new delivery medium will be very well received.” October Research Corporation, www.octoberresearch.com , is the nation’s leading provider of market intelligence, news and regulatory information in the title insurance, property appraisal, mortgage and real estate industries. For more information, contact Chris Casa, COO, at 330-659-6101, ext. 6715. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Mon, 26 Jul 2010 00:00:00 EST C48345AA746841BC946402A598A638D9 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=1BE6B7EDA115467DAF859536C37C5CA9 In this article: Integra Realty Resources John Ellis Beth Finestone David Williams Integra Realty Resources Inc. moved its Los Angeles office into a new 4,100-square-foot building in the San Fernando Valley of California to accommodate its expansion plans. “This relocation is significant, as it reflects the success our firm is experiencing in providing meaningful analyses in this challenging economic climate,” said John Ellis , MAI, CRE, FRICS, managing director of the Integra Realty Resources – Los Angeles office. The firm continues to service public agencies, the legal community, and institutional lenders.  It is also expanding in the areas of tax appeal and estate planning, and recently became a certified provider of continuing education for California attorneys. The move corresponds with Beth Finestone , MAI, FRICS, becoming a principal in the firm; David Williams joining the firm as a senior analyst; and Adam Dembowitz coming on board as an analyst. Williams joins Integra Realty Resources from CB Richard Ellis and specializes in the valuation of investment-grade commercial properties, specifically Class A trophy office, industrial and retail developments. Dembowitz is a recent transfer from Philadelphia, where his real estate career included property development and the appraisal of a wide variety of major commercial holdings. Ellis praised the addition of Finestone to the management team. “I am delighted that Beth joins me as a partner here,” he said. “Her leadership really expands our capabilities in a wide variety of complex appraisal assignments. The additions of David Williams and Adam Dembowitz are also strategic as our practice continues to thrive and grow.” New York City, Integra Realty Resources Inc. is one of North America’s largest independent commercial real estate valuation and consulting firms. Integra Realty Resources operates 60 offices with 850 credentialed consultants and staff located throughout the United States and in Mexico. Founded in 1999, the firm specializes in real estate appraisals, feasibility studies, market studies, expert testimony, and related property consulting services. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 20 Jul 2010 00:00:00 EST 1BE6B7EDA115467DAF859536C37C5CA9 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=F88EBF3E8ED44DA3893E9EF579798414 If the June statistics from the Commerce Department are any indication, appraisers will have fewer homes to appraise up the road. After a 15 percent drop in May on the heels of the expiration of the federal homebuyer tax credit, housing starts fell another 5 percent in June to a seasonally adjusted annual rate of 549,000, the lowest level in eight months.   In this article: Commerce Department Housing starts Bob Jones NAHB Builder confidence in the market for newly built, single-family homes declined for a second consecutive month in July to its lowest level since April of 2009, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI fell two points from a downwardly revised number in the previous month to 14 for July.   "We continue to see a lull in home-buying activity following the expiration of the federal homebuyer tax credit program, as many of the sales that would have occurred this summer were likely pulled forward to meet that program's deadline," noted NAHB Chairman Bob Jones , a home builder from Bloomfield Hills, Mich. "In addition, builders are reporting continuing consumer hesitancy regarding home purchases due to uncertainty in the overall economy and job markets."   The forecast is not all bleak. Privately-owned housing completions in June were at a seasonally adjusted annual rate of 886,000. This is 26.2 percent above the revised May estimate of 702,000 and is 11 percent above the June 2009 rate of 798,000. Single-family housing completions in June were at a rate of 676,000, 31.3 percent above the revised May rate of 515,000, reflecting homes rushed to the finish line ahead of the tax credit expiration.   The June report also showed that building permits increased a slight 2.1 percent to an annual rate of 586,000. Economists and real estate market analysts expected the increase to be much smaller. May permits had dipped 5.9 percent, reaching an annual rate of 574,000. An increase in building permits are a positive sign for future home-construction activity.   Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 20 Jul 2010 00:00:00 EST F88EBF3E8ED44DA3893E9EF579798414 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=70C4BB4254EA49B8B51D9618646BEA07 In this article: David Stevens HUD Mutual Mortgage Insurance Fund FHA Federal Housing Administration (FHA) Commissioner David Stevens unveiled three specific policy changes to strengthen the FHA's capital reserves while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The U.S. Department of Housing and Urban Development published a notice , seeking public comment on three specific measures to reduce financial risk and preserve affordable mortgage financing for responsible consumers. In addition to earlier steps taken to manage its risks and to boost reserves, FHA is proposing to update the combination of credit and down payment requirements for new borrowers; reduce seller concessions from 6 to 3 percent; and tighten underwriting standards for manually underwritten mortgage loans. "These are the latest in a series of changes to allow the FHA to manage its risk better while continuing to support the nation's housing recovery," Stevens said. "By protecting FHA's capital reserves, we can continue providing affordable, responsible mortgage products and will remain the nation's largest source of home-purchase financing for underserved communities." For the next 30 days, HUD is seeking public comment on the following policy changes, each of which are designed to mitigate risk to the Mutual Mortgage Insurance Fund while promoting sustainable homeownership for FHA borrowers: 1. Update the combination of credit and down payment requirements for new borrowers. New borrowers seeking FHA-insured financing will be required to have a minimum FICO score of 580 to qualify for FHA's flagship 3.5 percent down-payment program. New borrowers with credit scores of less than a 580 will be required to make a cash investment of at least 10 percent. Borrowers with credit scores of less than 500 will no longer qualify for an FHA-insured mortgage. 2. Reduce allowable seller concessions from 6 to 3 percent. Allowing sellers to contribute up to 6 percent of the home's sales price to offset a buyer's costs exposes the FHA to excess risk by potentially driving up the cost of the home beyond its appraised value. Reducing seller concessions to 3 percent will bring FHA into conformity with industry standards. 3. Tighten underwriting standards for manually underwritten loans. When using compensating factors in the underwriting process, lenders will be required to consider those factors which are the best predictive indicators of loan performance, such as the borrower's credit history, loan-to-value (LTV) percentage, debt-to-income ratio and cash reserves. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 20 Jul 2010 00:00:00 EST 70C4BB4254EA49B8B51D9618646BEA07 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=D018BC65913A4F799D4B431FE34DADE3 StreetLinks, the Indianapolis-based national appraisal management company, adjusted its appraisal warranty to include the recent policy changes from Fannie Mae, announced on June 30 in SEL-2010-09. In this article: StreetLinks Fannie Mae Tony Ebeyer Steve Haslam Fannie Mae now specifies lender responsibility and liability regarding appraiser selection criteria, regardless if the selection is performed by a third-party appraisal management company. StreetLinks National Appraisal Services (StreetLinks) has always provided, on every appraisal, an exclusive “Warranty of Appraisal Quality,” which provides indemnification to lenders in the event of a verified appraisal related repurchase demand. StreetLinks’ revised “Warranty of Appraisal Quality & Appraiser Competency” provides comprehensive indemnification to lenders inclusive of Fannie Mae's appraiser selection criteria mandates. “Now that Fannie has clarified that the liability for appraiser selection and competency rests solely on the lender’s shoulders, all lenders should give careful consideration to AMC models that prioritize transactional profit over geographic proximity and report quality,” explained Tony Ebeyer , StreetLinks COO. “Appraiser proximity, geo-competency and historical quality have always been the keystones to StreetLinks’ proprietary assignment methodology, IQ-Select – regardless of the impact on our margin.” StreetLinks has long been the industry leader in appraiser proximity, geo-competency and appraisal quality as evidenced by its approach to appraisers. StreetLinks has never mandated fees to its appraiser partners – appraisers set their own market fees. In addition, all assignments are processed through IQ -Select, which ranks appraisers on proximity, historical quality, historical service metrics and capacity, and not fee. “Everything in the new Fannie Mae regulations has always been at the core of our business model which provides the highest quality appraisal reports in the industry. Lenders can be assured that our appraiser selection and assignment methodology, backed by our warranty, is compliant with Fannie’s requirements,” said Steve Haslam , StreetLinks CEO. “Fannie has officially placed the burden on the lender for compliance with best-practice appraisal assignment. As such, lenders should carefully scrutinize the appraiser selection and assignment methodology used by their AMC or in-house appraisal management solution.” StreetLinks provides appraisals nationwide that are fully compliant with FHA, HVCC, Fannie, Freddie and all other current regulations.  An innovator in the appraisal management marketplace with its industry-first Certificate of Compliance and TILA-Trigger technology, StreetLinks manually pre-underwrites every appraisal for compliance with lender guidelines. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Thu, 15 Jul 2010 00:00:00 EST D018BC65913A4F799D4B431FE34DADE3 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=57361C7610E048F1BFAC70EB32EE6BA8 Coester Appraisal Group, a nationwide appraisal management company (AMC) based in Gaithersburg, Md., announced that CEO Brian Coester has been commissioned by AllRegs, an information provider for the mortgage lending industry, to create instruction manuals, video tutorials and classroom training programs for lenders. In this article: Brian Coester AllRegs Repurchase requests These educational materials will serve to educate lenders on how to protect themselves against repurchase requests based on erroneous assessments of the loan file’s appraisal. Repurchase requests, also known as “buyback letters,” are given to lenders, correspondents, brokers or other loan originators by purchasers like lenders, GSEs or investors, when a loan is found to be faulty, noncompliant or otherwise substandard. According to Coester, discrepancies in appraisals account for roughly 15 percent of all repurchase requests. Once a buyback letter is received, the recipient is under obligation to repurchase the loan in question – often hundreds of thousands of dollars, if not more – unless it can prove that it is not responsible for the discrepancy. Coester, who is experienced in rebutting repurchase requests that are erroneously based on appraisal discrepancies, will be addressing the specific steps that the recipient of a buyback letter can take to determine the validity of the claims, and successfully refute them if inaccurate. “Repurchase requests that are based on faulty or erroneous appraisals are often built on misunderstandings,” says Coester. “But because many lenders don’t know how to appropriately respond to the request, they end up repurchasing the loan, even though they’re not at fault. As with any process, there are certain processes and procedures that greatly enhance a lender’s chance of successfully refuting the request. I’m happy to share my expertise and help lenders to protect themselves from unnecessary penalties.” The manuals, video tutorials and classes will be available at a future date to be determined. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 15 Jul 2010 00:00:00 EST 57361C7610E048F1BFAC70EB32EE6BA8 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=39B2DEFB870148D7969657371915BA1F The May Mortgage Monitor report released by Lender Processing Services Inc., a provider of mortgage performance data and analytics, shows a 2.3 percent month-over-month increase in the nation's home loan delinquency rate to 9.2 percent in May and that early-stage delinquencies are increasing as normal seasonal improvements taper off. This report includes data as of May 31. According to the Mortgage Monitor report, the percentage of mortgage loans in default beyond 90 days increased slightly, while both delinquency and foreclosure rates continue to remain relatively stable at historically high levels. There are currently more than 7.3 million loans currently in some stage of delinquency or REO.  In this article: Mortgage Monitor report Shadow inventory Lender Processing Services Inc. The report also shows that the average number of days for a loan to move from 30-days delinquent to foreclosure sale continues to increase and is now at an all-time high of 449 days, resulting in an increase in “shadow” foreclosure inventory. After a two-month decline, deterioration ratios increased, with two and a half loans rolling to a “worse” status for every one that has improved. The number of delinquent loans that “cured” to a current status declined for every stage of delinquency, except in the “greater than six months delinquent” category. This improvement was likely the result of trial modifications made through the Home Affordable Modification Program (HAMP) that transitioned into permanent status.   Other key results from LPS’s latest Mortgage Monitor report include: Total U.S. loan delinquency rate: 9.20 percent Total U.S. foreclosure inventory rate: 3.18 percent Total U.S. non-current* loan rate: 12.38 percent States with most non-current* loans:  Florida, Nevada, Mississippi, Georgia, Arizona, California, Illinois, New Jersey, Ohio and Indiana States with the fewest non-current* loans: North Dakota, South Dakota, Wyoming, Alaska, Montana, Nebraska, Vermont, Colorado, Iowa and Minnesota *Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. Note: Totals based on LPS Applied Analytics’ loan-level database of mortgage assets. To review the full report, listen to a presentation of the report and access an executive summary of the report, go here .   Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 15 Jul 2010 00:00:00 EST 39B2DEFB870148D7969657371915BA1F http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=216054936513415493C54428A1597455 Following a surge driven by federal homebuyer tax credit, pending home sales fell with the expiration of the deadline for qualified buyers to sign a purchase contract, according to the National Association of Realtors. In this article: The Pending Home Sales Index National Association of Realtors Lawrence Yun The Pending Home Sales Index, a forward-looking indicator, dropped 30 percent to 77.6 based on contracts signed in May from a reading of 110.9 in April, and is 15.9 percent below May 2009, when it was 92.3. The falloff comes on the heels of three strong monthly gains as homebuyers rushed to take advantage of the tax credit The data reflects contracts and not closings, which normally occur with a lag time of one or two months. However, many closings have been delayed recently from a rush of buyers into the system and slow processing of short sales, in addition to the heavy volume and a more thorough loan underwriting process. As many as 180,000 buyers who signed contracts by April 30 may have missed the June 30 closing deadline for the tax credit. However, Congress passed legislation to extend the deadline for delayed contracts. NAR Chief Economist Lawrence Yun  said, “Consumers are rational and they rushed to meet the tax credit eligibility deadline in April. The sharp decline in contract signings in May is a natural result with similar low levels of sales activity anticipated in June,” he said. “Surprisingly, though, some local markets such as Portland , Maine , and Jacksonville , Fla. , actually experienced an increase in contract signings from a year ago without the tax credit. Existing-home sales that close in June will remain elevated, but we’ll then see a notable decline for July and August.” Congress also reauthorized the National Flood Insurance Program. Many lenders were hesitant to approve mortgages on homes needing flood insurance without congressional action and numerous sales have been on hold. The action is retroactive to a temporary authorization that expired May 31. Yun noted the tax credit has broadly stabilized home prices. “Without the tax credit, there will be more aggressive price negotiations between buyers and sellers. The key test on whether the housing market can stand on its own without stimulus medicine will depend critically on private sector job creation in the second half of the year. We’ll also keep a close eye on market conditions on the Gulf Coast .” Through May of this year, 495,000 net private sector jobs have been created; NAR’s forecast for employment growth is about 1 million additional net new jobs over the balance of the year and another 2 million in 2011. “If jobs come back as expected, the pace of home sales should pick up later this year and reach a sustainable level of activity given very favorable affordability conditions,” Yun said. “In most areas of the country there will be no sharp snap back in home prices in the upcoming years, although some local markets have experienced double-digit gains this year,” Yun said. NAR forecasts the national median home price to rise only 4 percent cumulatively over the next two years. “One factor that could lead to price acceleration in upcoming years for some markets is if the very low levels of new home construction were to persist for another year or two,” he added. The PHSI in the Northeast fell 31.6 percent to 67.0 in May and is 14.8 percent lower than May 2009. In the Midwest the index dropped 32.1 percent to 70.8 and is 20.2 percent below a year ago. Pending home sales in the South fell 33.3 percent to an index of 82.5, and are 14.4 percent lower than May 2009. In the West the index declined 20.9 percent to 85.3 and is 15.1 percent below a year ago. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 13 Jul 2010 00:00:00 EST 216054936513415493C54428A1597455 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=7D954CBFCEEA4D3F9A4564185D83532A Portage, Mich.-based Manatron Inc. announced the acquisition of Grapevine, Texas-based Beyond Appraisal on July 7 for an undisclosed amount. In this article: Manatron Inc. Beyond Appraisal Bill McKinzie Kurt Myers Manatron specializes in integrated property tax and records management software for state and local governments. The company is expanding into the Texas market, with the acquisition increasing the company’s total number of Texas clients to 34. It also effectively doubles the number of Texas parcels Manatron’s software manages to nearly four million. Beyond Appraisal was formed 12 years ago to develop, sell, and support computer-aided mass appraisal (CAMA) technologies and other related products and services to government property tax assessment organizations, state and local government agencies, commercial property appraisal companies and lending institutions. Beyond Appraisal has built a strong presence in the Texas market, with 10 Texas county appraisal districts operating the company's CAMA software, including the Dallas Central and Tarrant Appraisal Districts. With its Government Revenue Management (GRM) software suite, Portage, Mich. -based Manatron is the national leader in property tax, assessment, appraisal and recording software. Manatron’s GRM software is used by more than 1,400 jurisdictions in 40 US states, Canada , South Africa and the Caribbean to collect more than $100 billion in tax revenues each year.   “We are extremely pleased to add a company of Beyond Appraisal’s depth and reputation,” said Bill McKinzie , Manatron president and CEO. “We look forward to leveraging the collective strengths of both companies in bringing powerful technologies, responsive support and products to our Texas customers.”   McKinzie added, “During the past five years, Manatron has grown its Texas footprint and earned a solid reputation for our technology and support. This acquisition represents an important next step in Manatron’s continued commitment to serving the unique needs of this market.” Manatron noted Beyond Appraisal’s office will remain based in Grapevine , and will retain its current staff, with Kurt Myers continuing to lead the company as director of operations for Texas .   “We are excited to become a part of an industry leading company that is Manatron,” said Myers. “It will be business-as-usual for all Beyond Appraisal clients and they will continue to enjoy the same one-on-one responsiveness that they have come to expect, with the added technologies and resources only Manatron can provide.”   Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 13 Jul 2010 00:00:00 EST 7D954CBFCEEA4D3F9A4564185D83532A http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=1C2489643C1B442A8409F4C70733D889 More than 300 real estate settlement services professionals traveled to Cleveland June 14-16 to attend the 6th annual National Settlement Services Summit and 4th annual National Compliance Summit. The events — held at the Key Center Marriott Hotel — featured 15 powerful educational sessions, more than 40 speakers and over 30 sponsors. In this article: October Research Corp. National Settlement Services Summit Barb Casa Joe Casa Awards for Leadership, Innovation and Philanthropy “We are extremely pleased with the attendance at this year’s conference, as well as the unique balance of underwriters and title agents,” said Barb Casa , publisher and CEO of October Research Corp., producer of the conferences. “We played host to title agents, company presidents, appraisers, technology providers and attorneys from 38 states.” October Research is publisher of Valuation Review, The Title Report, The Legal Description , and RESPA News . During this year’s event, the company announced the establishment of the Joe Casa Awards for Leadership, Innovation and Philanthropy, named after its late founder. The first awards will be presented at next year’s conference. Highlights of the conference included keynote addresses by Joe Murin , chairman of Washington, D.C.-based The Collingwood Group LLC and former head of Ginnie Mae, and Phil Schulman , nationally recognized RESPA attorney and a partner at Washington, D.C.-based K&L Gates. Murin spoke about liquidity in the market, prospects for economic recovery and the role of settlement services providers in the changing landscape. “This time around, things will be very different,” he said. “That means each and every one of us who wants to truly be in the business of supporting the mortgage industry is going to have to be serious about the way in which we conduct business. We need to understand that transparency will hold us all accountable for the integrity of our work, the quality of our products and the efficiencies of our process. Without that commitment and dedication, I might suggest to you another line of work,” he said. On the second day of the conference — The National Compliance Summit — Schulman spoke about the shifting focus in Washington from laissez-faire governing of the real estate and settlement services industry to one of risk management. He gave several examples, pointing out how current efforts in Washington , such as RESPA reform, proposed TILA reform and the Consumer Financial Protection Agency will affect the settlement services industry. For more coverage of the conference sessions, visit www.thetitlereport.com , www.thelegaldescription.com , www.respanews.com or www.valuationreview.com . October Research Corporation is the nation’s leading provider of market information, business news and regulatory information for professionals in the real estate settlement services industry. For more information, contact Chris Casa , COO, at (330) 659-6101, ext. 6715, or chriscasa@octoberresearch.com. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 13 Jul 2010 00:00:00 EST 1C2489643C1B442A8409F4C70733D889 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=85D9699F1B164CA3BB214D457D072580 Property Sciences, a Pleasant Hill, Calif.-based appraisal and real estate consulting firm, announced it has entered into a strategic alliance with Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm. During the initial launch, Property Sciences will work with a network of Marcus & Millichap’s offices to provide lenders with a range of portfolio valuation services. In this article: Property Sciences Marcus & Millichap Real Estate Investment Services Andrew Mekjavich Stephen Stein “Property Sciences assists lenders with the valuation of commercial real estate portfolios on a national scale,” stated Andrew Mekjavich , VP at Property Sciences’ corporate headquarters in Pleasant Hill . “The recent alliance gives lenders the opportunity to analyze and evaluate their commercial real estate portfolios using a new suite of hybrid valuation tools.” Property Sciences Asset Watch Suite of commercial valuation products brings the dual professional perspectives of a real estate broker and a licensed appraiser, combined into one unique report. “We’ve listened to the needs of our lender clientele and responded with products to address regulatory concerns related to examination compliance, impairment calculations, risk monitoring, asset and loan restructuring, and asset disposition,” explained Mekjavich. Marcus & Millichap’s reputation as the leader in investment sales nationally and its unique platform align with Property Sciences’ successful lender-consulting business model and history of technological innovation. “Marcus & Millichap has steadily increased its menu of services for banks, appraisers and borrowers,” explained Stephen Stein , regional manager of the firm’s Los Angeles office. “In 2006, the firm expanded its Special Assets Services division, and began offering more tools for lending institutions and investors facing loan delinquencies, REOs and other distressed situations.” “We review portfolios of properties by geographic market and asset type. Our products and services allow lenders to pinpoint under-performing properties and analyze risk associated with these assets,” Mekjavich explained. “Using local, regional and national asset performance statistics, portfolio-level stress tests are used to quantify the impact of changing economic conditions on commercial real estate portfolios.”   With more than 1,200 investment professionals in offices nationwide, Marcus & Millichap Real Estate Investment Services is the largest firm specializing in commercial real estate investment services in the nation. Founded in 1984 by Paul Chandler , Property Sciences is a nationwide full-service appraisal and consulting firm providing residential and commercial appraisals, reviews, portfolio valuation services, and HVCC-compliant appraisal management platform technology solutions for residential mortgage lenders and investors. Corporate headquarters are located in the greater San Francisco bay area with offices in Los Angeles , New York , Chicago , Atlanta , Portland , and Dallas . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 08 Jul 2010 00:00:00 EST 85D9699F1B164CA3BB214D457D072580 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=0C4B2950A3A441629C8D8DFFE2B1C4B6 Four appraisers were indicted in Western Pennsylvania as part of the national crackdown on mortgage fraud called Operation Stolen Dreams, the largest collective enforcement effort ever brought to bear in confronting mortgage fraud. Representatives of the Western Pennsylvania Mortgage Fraud Task Force in Pittsburgh , including Acting U.S. Attorney Robert S. Cessar , announced the regional results of the nationwide takedown. In this article: mortgage fraud Operation Stolen Dreams Robert S. Cessar First Capital Home Equity According to Cessar, 13 individuals were charged through indictment/information; seven pleaded guilty; and six were sentenced as part of Operation Stolen Dreams in Western Pennsylvania . This included four appraisers caught up in separate schemes. The total amount of fraudulent loans associated with these individuals exceeds $233 million. The first appraiser was Jeanette Gray of Yeadon , Penn. On April 1, Gray, a licensed appraiser, pleaded guilty to a charge of wire fraud conspiracy in connection with a mortgage fraud scheme which saw her receive money in exchange for agreeing to her name being used for appraisals she never performed. Gray conspired with an individual associated with the mortgage broker company First Capital Home Equity. The scheme involved First Capital Home Equity submitting appraisals to lending institutions representing that Gray had actually done the appraisals, when, in fact, she neither prepared nor reviewed the appraisals. In exchange, First Capital Home Equity paid Gray $4,000 per month. Sentencing is scheduled for July 23. Gray faces a potential sentence of 20 years in prison, a fine of $250,000, or both. Anthony Pearson , of Ben Avon, Penn. , was charged with one count of wire fraud conspiracy by a grand jury. From May 2006 to February 2007 Pearson prepared appraisals that overstated that overstated the actual true market values of properties. He then provided these fraudulent appraisals to an unnamed individual who was previously convicted of mortgage fraud. He further caused wire transfers from the accounts of lending institutions outside Pennsylvania to accounts of closing agents inside the state. Like Gray, Pearson faces up to 20 years in prison, a fine of $250,000, or both. The next appraiser was Richard Lawrence Veazey , also known as Larry Veazey , and a resident of Pittsburgh . A grand jury returned a 14-count indictment charging Veazey with two counts of wire fraud conspiracy and 12 counts of wire fraud. According to the indictment, Veazey, a licensed appraiser, participated in two different mortgage fraud conspiracies. Both conspiracies involved Veazey preparing fraudulent appraisals that were submitted to lenders and that overstated the true market values of properties serving as collateral for loans. He faces a possible 280 years in prison, a fine of $3.5 million, or both. Finally, Jamie Moreno , also of Pittsburgh pleaded not guilty to a one-count indictment of wire fraud conspiracy from a grand jury. The indictment filed against Moreno alleges that his role in a mortgage fraud conspiracy was to prepare appraisals for properties that were to serve as collateral for loans that materially overstated the actual true market value of the properties. If convicted, Moreno could receive up to 20 years in prison, a fine of $250,000, or both. The scheme involved Pittsburgh Home Loans, a mortgage broker company that assisted borrowers in obtaining financial collateralized by real estate. Robert Arakelian , who operated Pittsburgh Home Loans, pleaded guilty to wire fraud conspiracy in connection with more than a hundred fraudulent deals.  The typical fraud deal involved an overstated appraisal, a fake down payment, and a fake verification from Citizens Bank that the borrower had sufficient income in his or her account to qualify for the loan and make the down payment required by the lender. The Pennsylvania Department of Banking received several complaints related to Arakelian, and they deposed him. During the course of the deposition, he admitted that he had used fraudulent Verifications of Deposit from Citizens Bank that falsely indicated that the borrowers had sufficient money in their accounts to make the down payments and qualify for the loans. Crystal Spreng , another indicted in the conspiracy, was the representative of Citizens Bank that provided the fraudulent verifications of deposit. On June 15, she pleaded guilty to a charge of wire fraud. Her sentencing is scheduled for November 5. Daniel Sporrer and Karen Atkison also pleaded guilty in connection with this conspiracy.  Sporrer participated in a mortgage fraud scheme with Arakelian and Atkison, who was a closing agent who worked with Sporrer, and others. The closing documents in connection with these fraudulent loans, which were prepared and executed by Sporrer and Atkison, falsely reported to the lenders that the borrowers made down payments from their own funds at the closings, when, in fact, they did not make any payments at the closings. In addition, Sporrer advanced money to Arakelian before the closings so that Arakelian could purchase certified checks, copies of which were made to present to the lenders to falsely verify that the borrowers had made the down payments.  “Mortgage fraud creates so much harm to individuals, businesses and our economy by burdening lenders with bad loans and often times neighborhoods with abandoned or deteriorating properties,” said Timothy Marsh , the special agent in charge of the Pittsburgh office of the Internal Revenue Service Criminal Investigative Division. “Here in Pittsburgh , and in cities across the country, mortgage fraud crimes have reached crisis proportions. But we are fighting back,” added Cessar. “Through the Mortgage Fraud Task Force that we created in February 2008, we’re tackling the challenges and consequences of mortgage fraud in innovative, coordinated and highly effective ways.” Locally, the Western Pennsylvania Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the United States Secret Service; FBI; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; and the U.S. Postal Inspection Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff’s Office; the Pennsylvania Attorney General’s Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee’s Office. Starting on March 1, to date Operation Stolen Dreams has involved 1,215 criminal defendants nationwide, including 485 arrests, who are allegedly responsible for more than $2.3 billion in losses. Additionally, to date the operation has resulted in 191 civil enforcement actions which have resulted in the recovery of more than $147 million. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Thu, 08 Jul 2010 00:00:00 EST 0C4B2950A3A441629C8D8DFFE2B1C4B6 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=AA288DFE255548738C470F9876175D6B Veros Real Estate Solutions, the Santa Ana, Calif.-based enterprise risk management and collateral valuation services provider, released its most recent update to its U.S. real estate market forecast. The company’s VeroFORECAST product is utilized by economists, statisticians and business leaders all along the mortgage industry value chain as a resource for forecasting and strategic planning. The quarterly forecast update for June 2010 through June 2011 indicates new findings amid the consistent gains in some markets. In this article: Veros Real Estate Solutions VeroFORECAST Eric Fox “More coastal California markets are showing signs of improvement,” said Eric Fox , Veros’ vice president of statistical and economic modeling. “ California ’s Inland Empire area, including Riverside , San Bernardino and Ontario , is showing signs of modest appreciation, joining the state’s strongest metro region, San Diego . Colorado is beginning to look good again to buyers, with three cities among the top 10. “A new entry among the top five positive trending areas is Louisiana ’s Shreveport and Bossier City area, which is well-removed from the Gulf Coast on the Red River ,” Fox continued. “The Houston metro area is also demonstrating modest improvement, and at this point we can only speculate on the effects, if any, that will result in the residential real estate market from the catastrophic BP oil spill in the Gulf. None of our zip code level models which are on the coast of the impacted coastal areas are yet showing significant forecast differences from those zip code models that are further inland and less impacted.” Projected Five Strongest Markets* Shreveport/Bossier City, La. +4.2 percent; San Diego/Carlsbad/San Marcos, Calif. + 3.4 percent; Riverside/San Bernardino/Ontario, Calif. +3.2 percent; Amarillo , Texas +3.2 percent; and Houston/Sugar Land/Baytown, Texas +3.1 percent * Markets demonstrated are for residential real estate in major metro areas (typically greater than 500,000 residents) among single-family homes in the median price tier. In general, Fox explained, the Central Plains areas are continuing to hold values in the next year. Texas , Oklahoma , Kansas , Nebraska and east to parts of Louisiana and Arkansas are holding steady, underscoring a weak but consistent mild recovery. Adding an additional note of optimism, Fox noted VeroFORECAST’s 24-month projections show many markets are indicating stronger recoveries two years from now. ”Although there aren’t any overwhelmingly strong appreciating forecasts in the near term, the depreciating ones are milder than they were a year ago,” he said. Chico , California leads the list of weakening markets, but Florida continues its depreciation trend in many areas along its east coast. Nevada ’s second largest market, Reno/Sparks, stays on the list of weakest markets while Las Vegas avoided inclusion. Utah did not, however; the Salt Lake City and nearby Provo/Orem areas occupy the last two slots in Veros’ bottom ten, according to Fox. Projected Five Weakest Markets Chico , Calif. -8.9 percent; Deltona/Daytona Beach/Ormond Beach, Fla. -8.3 percent; Reno/Sparks, Nev. -7.8 percent; Vero Beach , Fla. -7.8 percent; and Palm Bay/Melbourne/Titusville, Fla. -7.7 percent VeroFORECAST provides 12-, 18- and 24-month price forecasts on the national real estate market and applies more than 50 critical decisioning factors in its forecast analytics to develop reliable market trend predictions covering more than 900 counties, nearly 300 metro areas and almost 14,000 zip codes that account for 78 percent of the U.S. population.   Key factors range from interest, unemployment and inflation rates, to housing inventory levels and an array of economic and geographic trends.   Fox said that emphasizing the local level is critical to keeping predictions accurate. “We find it more useful to segment by property types, by three distinct pricing tiers – upper, middle and entry-level – and by metro area, county and zip code. We have a track record of more than seven years of very high accuracy using these methods and we have learned that this specific combination of forecast attributes makes reports more comprehensive and accurate. It’s an unforgiving market,” he said. “There is simply no substitute for accurate market intelligence derived from granular precision and solid analytics.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 08 Jul 2010 00:00:00 EST AA288DFE255548738C470F9876175D6B http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=15B86890DF634E1FAB512418C195EB94 In a move designed to build confidence in mortgage lending and reinvigorate private investment, DartAppraisal.com, the Troy, Mich.-based national provider of residential real estate appraisals, is to start offering a custom appraisal warranty called the DartAssurance. The warranty insures mortgage lenders, investors, banks and credit unions against potential loss from home loan default and foreclosure. In this article: DartAppraisal.com Darton Case DartAssurance “Our strength is in our experience and expertise,” said Darton Case , president of DartAppraisal.com. “For nearly two decades, we have been the poster child for transparency, accuracy and quality control in the mortgage industry. We also understand the need for all types of risk mitigation amongst our clients. Our custom warranty is designed to help lenders underwrite collateral with confidence. We believe that our product will help stimulate the much needed private investors back into the mortgage market.” DartAppraisal.com has partnered with an insurance company that is rated “A” for excellent by A.M. Best. The DartAssurance warranty is fully insured to provide up to $100,000 in coverage for loss tied to a valuation inaccuracy. For eligible loans, which include first and second mortgages, the appraisal is warranted for 60 months from the date of service and is fully transferable. DartAssurance warranty specifications include a maximum loan amount of $750,000 , an LTV/CLTV that doesn’t exceed 100 percent, and a minimum credit score of 620 for the borrowers on the loan. The warranty works in tandem with the company’s industry leading $5 million errors and omissions insurance coverage. The custom warranty fees range from $20 to $30 per appraisal, covering errors in the property appraisal that result in a loss to a financial institution or transferee, through loan default or foreclosure. With a network of more than 8,000 certified appraisers covering the nation, DartAppraisal.com offers a full range of HVCC and FHA–compliant appraisal services, including REO, wholesale valuations and post funding audits. Online appraisal ordering provides clients with streamlined technology, from DartLink appraisal integration connections and DartExpress complete broker HVCC/FHA solution to DartTracker and DartTracker Plus, appraisal pipeline status tools.   Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 06 Jul 2010 00:00:00 EST 15B86890DF634E1FAB512418C195EB94 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=36D1760741B64C3A9639FEECC6681866 Donald J. Sherwood , managing director of the Fort Worth office of Integra Realty Resources, the largest real estate valuation and counseling firm in the country, was selected the 2009 international winner of the prestigious Balfour Award by the International Right of Way Association (IRWA). He previously was a finalist in 2005, 2007 and 2008. In this article: Integra Realty Resources, Inc. Donald J. Sherwood The International Right of Way Association The Frank C. Balfour Professional of the Year Award The Frank C. Balfour Professional of the Year Award, named after the Association’s founder, is the highest honor bestowed upon an IRWA member. The award honors those members who have demonstrated exemplary support to the association.   “This is the pinnacle of my career in IRWA,” Sherwood said. “This is indeed very humbling. The other four finalists were very qualified and to be selected by one's peers is an awesome experience. “My partners allow me the time and opportunity to serve IRWA and our world. Without their support, I would not have received this honor. I accept this honor on behalf of each of them.” The International Nominations and Elections Committee selects finalists from the United States, Canada, Japan and South Africa whose outstanding contributions have included leadership positions in the chapter, regional and international levels; fulfillment of educational courses and activities; participation in association regional and international activities; and achievement of IRWA professional designations. The nominations committee considers activities over a minimum of a five-year period. Finalists are evaluated and ranked on a points system. Sherwood will receive a plaque and a $1,000 contribution is sent to the University of Santa Clara scholarship fund in memory of Frank C. Balfour . Sherwood said he helped write the appraisal section for the new Uniform Act Certification last year and has written several courses, taught classes, been on numerous committees and promoted IRWA for many years. “I’m passionate about IRWA and the right of way industry and, when one is passionate about something, you tend to go way beyond what’s required,” he said.   Ben Loughry , managing partner for Integra’s Fort Worth office, said: “This honor only says what many people know. We’re blessed to know Donnie as a friend and partner.” Sherwood has been an appraiser of all types of real property and been actively engaged in real estate valuation and consulting since 1978. He received his MAI designation in 1983 and his SR/WA designation in 2004. He has a Master’s in Land Economics and Real Estate from Texas A&M University and is a member of the national faculty for the Appraisal Institute and the International Right of Way Association. Integra Realty Resources, Inc. is the largest real estate valuation and counseling firm in the United States , offering the country’s most extensive market coverage with 59 independent offices in more than 30 states. With specialties including commercial appraisals, feasibility studies, expert testimony and related property consulting services, Integra provides independent analysis across a wide range of real estate markets.   Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 06 Jul 2010 00:00:00 EST 36D1760741B64C3A9639FEECC6681866 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=845D036F2CFB49BFAB8203778E57DAFD An appraisal company owner in Arizona was indicted for his role in a mortgage fraud scheme against Mesa Bank. Michael S. Mason , who is from Mesa, was indicted for five counts of providing false statements to a financial institution and 19 counts of wire fraud, as well as aiding and abetting the ringleader Thomas Alexander , who directed him to willfully overvalue several parcels of land. In this article: Michael Mason Thomas Alexander Paul Alexander Mesa Bank Also indicted were Paul Alexander and Bobbie Jo Johnson , from Scottsdale, Arizona, Kara Elizabeth Shumway , also from Mesa, Sandra Stevens from Chandler, and Michael Harris from   Phoenix, on charges including conspiracy, wire fraud, money laundering and false statements. Mason was the owner and operator of Mason Appraisal Services, formed in 2004, but also did business as Mason Appraisal, LLC, which he formed in October 2007. According to the indictment, Thomas Alexander worked as a loan originator for American Mortgage Specialists and owned and operated a company called Sea Rock , L.L.C.   The indictment claims Thomas Alexander devised a loan origination scheme where he assisted third party borrowers to qualify for loans from Mesa Bank by creating loan documents that misrepresented the borrower’s income, assets, credit score, and down payment amount. The indictment alleges that Thomas Alexander would direct Mason to create real estate appraisals which in most cases overvalued the real estate purchased by the borrowers. He also directed Harris, a real estate agent, to purchase several lots that he owned. The indictment also alleges that Alexander would use either Stevens or Johnson , Capital Title Agency escrow agents, to handle loans he originated by creating and submitting to the bank, an escrow receipt which reflected that the borrowers’ down payment had been deposited into escrow and applied to the purchase. In most cases the borrowers’ down payment had never been deposited into escrow. The indictment also states Thomas Alexander would use Shumway and Paul Alexander who worked for American Mortgage Funding as loan processors and were supervised by Thomas Alexander, to assist him in creating documents which misrepresented or overstated the income earned by the borrowers. Each conviction for wire fraud or conspiracy carries a maximum penalty of 30 years in prison, a $1 million fine or both. The investigation preceding the indictment was conducted by Special Agents of the Internal Revenue Service, Criminal Investigation. The prosecution is being handled by Kevin Rapp , Assistant U.S. Attorney, District of Arizona, Phoenix . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 06 Jul 2010 00:00:00 EST 845D036F2CFB49BFAB8203778E57DAFD http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=3F805EFA49E44BF8B751604194FFB016 The appraisal management company Valuation Partners, a subsidiary of the William Fall Group, hired two industry veterans for key executive positions. Read on to find out the identity of the new appointments. Valuation Partners, a Sugarland, Texas-based national appraisal management company, named John Golletti vice president, national account executive, and Dan Kennard vice president of operations on June 28. Both Golletti and Kennard join Valuation Partners as veterans of the mortgage industry, with senior management experience from loan origination, processing and operations to appraisal and settlement services product sales among other responsibilities. Golletti was hired to broaden the company’s sales reach, and will focus his initiatives in the Eastern U.S. Kennard has been brought on to utilize his operational expertise to increase customer service. “Both John and Dan are seasoned, service-oriented experts with strong roots in the mortgage and valuation businesses,” Valuation Partners CEO Bill Fall said. “They'll both be an important part of taking our company to the next level.” Golletti brings to Valuation Partners experience in sales of mortgage-related products including valuations, appraisals, automated valuation models (AVM), loan analysis and title products. Most recently Golletti served as national sales manager for SingleSource Property Solutions where he directed the sales of products for default servicing, origination and loan acquisition among others. National sales for the firm more than doubled in two years under his leadership. Prior to this position Golletti was senior account executive for the Northeast region at Landsafe, a subsidiary of Countrywide Home Loans, managing product sales including appraisals and AVMs. “Valuation Partners is a company with a solid foundation which is well positioned for growth,” Golletti said. “I’m particularly excited about this opportunity to expand sales for a firm that is owned and managed by appraisers.” Kennard has more than 30 years of experience in the mortgage industry, primarily managing mortgage operations, processing and business development. He has a diverse background as a senior manager with regional and national lenders, including directing the start up, development and growth of a mega-mortgage processing center responsible for the underwriting, processing and closing of conventional and government loans. Previously to joining Valuation Partners, Kennard was vice president, director of lending and retail branches for Great Lakes Credit Union in Toledo , Ohio , where he managed the day-to-day loan and branch activities of the credit union. Before this, Kennard served as first vice president, regional operations manager at Bank of America/Countrywide Home Loans, directing a three-state, 21 office sales and support staff whose annual production exceeded $3 billion. “I am very attracted to the culture of quality at Valuation Partners that is mirrored by the top appraiser talent they work with around the country,” Kennard said. “Valuation Partners has put together a solid team with a reputation for integrity. I look forward to helping take the exceptional operations of the company to new heights of productivity.” Valuation Partners provides vendor management, appraisal reviews, collateral assessment, broker price opinions, and appraiser-assisted products to the mortgage industry. A subsidiary of the William Fall Group, the company has access to 10,000 independent fee appraisers in all 50 states as well as 175 staff appraisers at WFG, the William Fall Group’s staff appraiser division. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 01 Jul 2010 00:00:00 EST 3F805EFA49E44BF8B751604194FFB016 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=0331D7F07C894F60956BB365064EF552 Trulia.com reported that 22 percent of listings currently on the market as of June 1 experienced at least one price reduction, which is a slight decrease from 23.6 percent in June 2009. The total dollar amount slashed from home prices was $26.7 billion and the average discount for price-reduced homes continued to hold at 10 percent off of the original listing price. “Sellers are optimistic heading into the summer season because of the strong sales figures from the spring. The spring sales were fueled by the expiration of the tax credit and my concern is that this heavy activity is providing sellers with a false state of optimism,” said Pete Flint , co-founder and CEO of Trulia. “We are already starting to see rising inventory levels and I believe this will be the story of the summer. For the unforeseen future, buyers will continue to have the negotiating power, and I expect we will see sellers get aggressive via price cuts throughout the summer.” Biggest winners and losers Cities in the Western U.S. experienced the largest decreases in price reductions compared to the previous year. Las Vegas led the way with a 67 percent decrease and six California cities saw a decrease in price reductions of 24 percent or more, including Oakland , San Jose , Los Angeles , Sacramento , San Francisco and San Diego . A class of its own For the second month in a row, Minneapolis saw 40 percent of its listings reduced in price. No other city has reached this mark since Trulia started tracking home price reductions in April 2009. With an average discount for price-reduced homes at eight percent, the city’s total dollar amount slashed from home prices was $26.4 million. Luxury market holds steady post-tax credit incentive Price reduction levels for luxury homes (those listed at $2 million and above) continued to hold steady with 21 percent of homes seeing a price reduction and with an average reduction of 14 percent. Homes in this category account for the less than 2 percent of total inventory but account for almost 25 percent of total dollars slashed off all the homes for sale. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 01 Jul 2010 00:00:00 EST 0331D7F07C894F60956BB365064EF552 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=91018BA6D55642AD8019775E8B10E528 October Research Corporation, the publisher of Valuation Review , is committed to providing its customers with the highest level of service and the best media products available in the markets we serve. As part of an ongoing improvement process, and with your help, we would like you to take three minutes of your time to assist us by taking an important industry survey. Your input is critical to us, and as we understand that your time is valuable, we would like to give you two special reports completely FREE — a value of $90. The offerings are the 2010 State of the Industry Report and FHA Appraising 101 . Please follow this link to get started: http://www.surveymonkey.com/s/C98W783 Thu, 01 Jul 2010 00:00:00 EST 91018BA6D55642AD8019775E8B10E528 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=02643748A3BE46F2A03D2648327CF901 A licensed appraiser based in Washington , D.C. , was indicted by a grand jury for leading a mortgage fraud flipping scheme with his partner, a licensed real estate agent and independent loan processor. Find out the details here. Washington, D.C.-based licensed appraiser Renaldo D. Gillis and his partner Afolasade Orekoya were indicted by a grand jury for their leadership in “an extensive mortgage fraud flipping scheme,” following a joint investigation with federal law enforcement. “The indictment of these two men sends a clear message that we will use every tool at our disposal to fight against mortgage fraud and any other fraudulent acts against our hardworking District residents,” said Commissioner Gennet Purcell of the D.C. Department of Insurance, Securities and Banking (DISB). “We will not tolerate mortgage fraud in the District of Columbia as it ruins lives, destroys families and devastates communities.” The indictment of these two individuals was part of a nationwide takedown that targeted mortgage fraud throughout the country. Operation Stolen Dreams was organized by President Obama’s interagency Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring a powerful array of criminal and civil enforcement resources. Starting March 1, Operation Stolen Dreams has involved 1,215 criminal defendants nationwide, including 485 arrests, who are allegedly responsible for more than $2.3 billion in losses. Additionally, the operation has resulted in 191 civil enforcement actions, which have resulted in the recovery of more than $147 million. However, before the task force was formed, DISB had already initiated an investigation into the mortgage flipping scheme more than four years ago. A federal grand jury returned a 14-count indictment charging Gillis, a licensed real estate appraiser and alleged real estate investor in the District of Columbia; and Orekoya, a licensed real estate agent and independent loan processor for mortgage brokers, with conspiracy and multiple counts of bank, mail, and wire fraud for their leadership roles in an elaborate, years-long mortgage fraud scheme. According to the indictment, from 2003 to 2009, the defendants and their co-conspirators targeted many District of Columbia-area homes for quick re-sales (called “flips”) at fraudulently inflated prices. Gillis recruited others to act as straw buyers of the properties. The straw buyers submitted loan applications to Orekoya, who inputted false information on the loan applications (typically inflating the straw buyers’ assets and income) and submitted them to mortgage lenders, including banks. Meanwhile, Gillis also generated fraudulent appraisals which falsely inflated the value of the properties. In reality, the properties were often in poor condition. The properties were then quickly resold, or flipped, to new straw buyers at increasing prices supported by the inflated appraisals. The mortgage fraud scheme netted Gillis, Orekoya, and their co-conspirators more than $1 million in illegal proceeds and caused the lending institutions to lose over $2.3 million. If convicted, the defendants face decades of imprisonment and fines in excess of $1 million. In addition, through criminal forfeiture, the defendants could face a money judgment of over $1 million, as well as a house owned by Gillis in Georgia . Besides DISB, others involved in the task force investigation included US Attorney Ronald C. Machen Jr. ; Inspector in Charge, Washington Division Daniel S. Cortez of the US Postal Inspection Service; and Inspector General Kenneth M. Donohue of the US Department of Housing & Urban Development. The charges contained in the indictment are merely allegations. The defendants are presumed innocent until and unless found guilty in a court of law. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 01 Jul 2010 00:00:00 EST 02643748A3BE46F2A03D2648327CF901 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=C669DEC7F1B04642B5443FB68228976B TriNovus, LLC, a Birmingham, Ala.-based company that provides financial technology solutions, launched a new automated valuation model (AVM) called TriVALU. The company is marketing the AVM to banks and other financial institutions to use in valuing loan collateral at a lower cost than a full appraisal. In this article: TriNovus TriVALU automated valuation models Financial institutions who sign up for the service can access the AVM system online at www.trinovus.com . According to a press release from the company, TriVALU produces a hit rate of greater than 85 percent. After entering a street address into the Web-based system, a full report is returned in less than one minute. TriVALU analyzes results on potential factors that “often include geography, price tier, property type, subject property factors and other variables.” According to the company, it also pre-screens for, and removes, fraudulent and REO transactions, drawing from a property and transaction database. Under TriNovus’ pricing model, subscribers pay only when search results produce a hit and there are no monthly minimums to meet, allowing users to search as often or as seldom as is necessary. In accordance with the Proposed Interagency Appraisal and Evaluation guidelines published by the regulatory agencies, an AVM can be substituted for a full appraisal if the transaction has a value of $250,000 or less; or if it is a business loan of $1 million or less. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 29 Jun 2010 00:00:00 EST C669DEC7F1B04642B5443FB68228976B http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=A9BEFD66056449D0AE25383643F3B510 Sales of newly built, single-family homes plummeted in May following the expiration of the federal homebuyer tax credits in April, according to the U.S. Commerce Department. The data show that sales fell 32.7 percent to a seasonally adjusted annual rate of 300,000 units, the lowest number on record since the government started keeping track in 1963. In this article: U.S. Commerce Department Bob Jones David Crowe National Association of Home Builders “While today’s numbers are sobering, they were to be expected at the conclusion of the tax credit program and are in keeping with the results of our latest home builder surveys,” said Bob Jones , chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “Clearly the tax credits were very successful in drawing potential buyers back to the market. Now we are seeing the lull in activity you’d expect following the program’s expiration.” “The big drop-off in new-home sales this May emphasizes how effective the tax credit program was in bringing homebuyers back to the market while it was in existence,” agreed NAHB Chief Economist David Crowe . “Because many buyers moved quickly to take advantage of the tax credits, sales that would have taken place in May or June were likely pulled forward to meet the program’s deadline — which is why we have been projecting softer sales numbers for the second quarter. But once this ‘hangover’ subsides, we do believe that the improving economy, rising employment, excellent mortgage rates and stabilizing home values will be strong incentives that will encourage homebuyers to return to the market.” Sales of new homes declined across every region in May. The Northeast registered a 33.3 percent decline, the Midwest a 23.9 percent decline, the South a 25.4 percent decline, and the West a 53.2 percent decline. The nationwide inventory of new homes on the market declined by half a percent to just 213,000 units in May; this was the lowest level in nearly four decades. However, because of the slower sales pace, the months’ supply of homes rose from 5.8 in April to 8.5 in May. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 29 Jun 2010 00:00:00 EST A9BEFD66056449D0AE25383643F3B510 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=40753703C72F471EA244CB115341D5FB The Herndon, Va.-based American Society of Appraisers (ASA), the international organization of appraisal professionals and others interested in the appraisal profession, announced the results of the 2010 elections for the 2010-2011 international officers, 2010-2014 discipline governors, and 2010-2013 committee members. In this article: American Society of Appraisers Robert C. Schlegel Michael Evans Jack Washbourn The elected officials will take office on July 24, 2010, at the ASA International Appraisal Conference in Las Vegas . The new International President is Robert C. Schlegel , a managing director at Chicago-based Houlihan Smith & Co. Inc. Jack Washbourn is now the international senior vice president and Daniel R. Van Vleet is the new international secretary-treasurer. The discipline governors for 2010-2014 are Terry J. Allen , Daniel L. Lagace , Sheryl Gillett , and Paul D. Roberts . The new Real Property Committee members are Timothy A. Griffith , Kathleen Bowen Ha , Michael T. Orman and Charles E. Tholen . Michael Evans , the current International President of the ASA, said, " These elected members are a prestigious group of professionals that have consistently demonstrated their support and dedication to the mission of ASA and its members. We commend these individuals and appreciate their service. We wish them all the best in their new positions.” In addition to these election results, the 2010 business valuation, gems and jewelry, machinery and technical specialties, and personal property committee members have been elected. For a complete list of the 2010 ASA election results, visit the following website, http://www.appraisersnewsroom.org/?p=155 . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 29 Jun 2010 00:00:00 EST 40753703C72F471EA244CB115341D5FB http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=8740F25315934B019D3863C213E08BF2 Since there has been a great deal of buzz in the industry surrounding the decision in the Wells Fargo/Rels Valuation v. appraisers lawsuit, Valuation Review is giving you the unique opportunity to sample of the premium content that our subscribers receive every week. Wells Fargo and its appraisal management subsidiary Rels Valuation won an important lawsuit this month when a district judge granted the company's motion to dismiss. The lawsuit was filed by two residential appraisals who claimed that Rels Valuation had pressurized them into reaching inflated values on appraisal reports and then subsequently blacklisted them when they did not comply with demands. Don Pearsall , from Puyallup, Wash., and Timothy Savage of Vail, Colo., both claimed that Wells Fargo and Rels tried to strong-arm them into inflating appraisal values and then blacklisted them when they refused to hit the desired numbers. They were represented by Hagens Berman Sobol Shapiro (HBSS), the Seattle-based law firm that has filed similar lawsuits against several lenders. The case is Sound Appraisal and Savage Appraisal Services, Inc., on behalf of themselves and all others similarly situated, v. Wells Fargo Bank, N.A. and Valuation Information Technology, LLC, d/b/a Rels Valuation, No. C 09-01630 CW . It was filed in U.S. District Court in San Francisco in April 2009. Although Wells Fargo was the primary defendant in the case, Rels is technically a joint venture between First American Solutions, a subsidiary of First American Corp. and Wells Fargo Foothill, a subsidiary of Wells Fargo & Co. The plaintiffs alleged that, in an effort to increase market share in the home mortgage business, Wells Fargo has engaged in a pattern and practice of pressuring appraisers to write appraisals designed to justify the loan even if the appraisal violates USPAP. The plaintiffs also alleged “If an appraiser does not 'play ball' and produce a report affirming the property value or the parameters that Wells Fargo expects or wants, Wells Fargo, through Rels Valuation, suspends the appraiser or removes the appraiser from the list of preferred appraisers and, in essence, 'blacklists' the appraiser.” The plaintiffs also claimed that Wells “utilized a host of indirect methods to communicate to the appraiser the value needed to fund the loan, and the value the appraiser is expected to 'hit.' As an example, they claimed that Rels' appraisal order form, which indicates the Borrower Estimated Value, reflects the value that the appraiser is expected to meet or exceed in the appraisal. What is your reaction to this story? Have you had a similar experience working with an AMC? We want to hear from you! Send your story to dnapuk@octoberresearch.com According to court documents, Pearsall completed an URAR appraisal for Wells Fargo and Rels in June 2007 in Enumclaw, Wash. After submitting his report, an officer of Rels requested that he alter it to reflect the company's desired views on the property. Specifically, Rels' area manager, Randall Pierzina , asked Pearsall to remove all indications that the home in question was currently being remodeled. Pearsall refused to alter the report, noting that doing so would be a violation of his ethical duty under USPAP. In response, Pierzina yelled, “[Y]ou appraisers take USPAP too seriously.” Pierzina then threatened to remove Pearsall from his list of “eligible” appraisers if he “did not receive the requested, altered report immediately.” After refusing, Rels blacklisted Pearsall, which meant a loss of approximately 21-36 percent of Pearsell's business. When Pearsall inquired about the loss of work, he was told by Pierzina that he had been suspended for refusing to comply “with an OPUS issue.” However, Pierzina did not explain what an “OPUS issue” was and never provided any further explanation for the suspension or notified Pearsall of any procedure by which he could challenge his suspension. Pearsall confirmed his existence on the blacklist when he received an offer of an assignment from Rels on April 8, 2009. He told the employee over the phone, “I would love to take the job, but aren't I on your blacklist?” The employee put him on hold to check, then came back and said “I'm sorry, I wasn't supposed to contact you.” Savage had been doing appraisals for Rels for 12 years. In Jan. 2009, Savage performed two such appraisal assignments for Rels. After Savage provided these appraisals, a “Collateral Compliance Reviewer” for Rels emailed Savage with information “to support an increased value” of the appraised property. Savage reviewed the appraisal and determined that no such increased valuation was appropriate. The next month, he received a letter from Rels stating that he had been removed from its approved panel of appraisers. The letter did not provide an explanation for the removal. Before being blacklisted Savage estimated he received 11-17 percent of his income from Rels. The complaint also contained nine statements by appraisers in Arizona, Nevada, Washington, Pennsylvania, Illinois, Virginia, Indiana and Oregon who alleged that Rels also stopped hiring them because they refused to alter appraisals upon Rels' request. The original lawsuit had three causes of action, but two of these were dismissed with the only complaint remaining a violation of the common law duty to provide fair procedures. Granting Wells' motion to dismiss, District Judge Claudia Wilken opined that the case centered on the percentage of work that was lost as a result of the blacklisting, and on whether the fair process doctrine should apply to a private organization. “Certain private entities possess substantial power either to thwart an individual's pursuit of a lawful trade or profession, or to control the terms and conditions under which it is practiced,” she wrote, but “certain institutions and enterprises are viewed by the courts as quasi-public in nature: The important products or services which these enterprises provide, their express or implied representations to the public concerning their products or services, their superior bargaining power, legislative recognition of their public aspect, or a combination of these factors, lead courts to impose on these enterprises obligations to the public." But to be held liable for violating the right to fair procedures, Wilken opined, a private entity must have the power to “significantly impair” the individuals' ability to work in a particular field. “In essence,” she wrote, “the law concerns exclusion or expulsion from membership by a gatekeeper organization, like a union or an insurance company,” which she determined did not apply to Wells Fargo. “Wells Fargo's extensive national involvement in originating and servicing mortgages does not necessarily mean that it wields significant power over the appraising profession in the geographic areas in which plaintiffs work,” wrote Wilken. “It is especially important to note that, while loss of income after exclusion by a private entity is relevant, it is not 'conclusive proof' that the exclusion impaired the plaintiff's ability to continue in the profession,” she continued. In the judgment of the court, the percentage of business lost by Pearsall and Savage following their blacklisting was not enough to establish a duty to provide fair procedures. In addition, the blacklisting didn't affect Pearsall or Savage's ability to receive work from other mortgage companies. “No authority requires the imposition of the fair procedure doctrine simply because removal from a single company's list of appraisers it chooses to retain substantially affects the economic interest of a removed appraiser. Defendants simply made a choice not to do business with plaintiffs; they did not exercise power as a gatekeeper of a profession nor did they prevent plaintiffs from pursuing employment by others,” said Wilken. On this reasoning, she dismissed the claim against Wells Fargo with prejudice, saying that any further amendment would be “futile.” At press time, neither Wells Fargo nor HBSS were able to return requests for comment to Valuation Review . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 24 Jun 2010 00:00:00 EST 8740F25315934B019D3863C213E08BF2 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=EA6C3E92AF0840FC87C3232D057698E0 Banks are failing this year at more than double the rate of the same time last year, according to the latest figures from the Federal Deposit Insurance Corp. (FDIC), the government entity charged with taking over failed financial institutions. In this article: Federal Deposit Insurance Corp. Sheila Bair Nevada Security Bank So far in 2010, a total of 83 banks have been shut down and taken over by the FDIC. For the whole of last year, 140 banks failed at a cost of more than $30 billion to the FDIC. Not since the height of the savings and loans crisis have so many banks collapsed. In 2008, only 25 banks failed, compared with just three in 2007. Most of the more recent bank failures are due to losses sustained in the commercial property and development sector, which has suffered deep cuts over the last year. The most recent bank to fail is Nevada Security Bank, based in Reno . On June 18, the FDIC took over the bank with $480.3 million in assets and $479.8 million in deposits. The failure is expected to cost the FDIC $80.9 million. Meanwhile, the FDIC announced that current assessment rates are projected to return the deposit insurance fund to a positive balance in 2012. The fund fell into the red in 2009, and its deficit stood at $20.7 billion as of March 31, with the cost of resolving failed banks expected to increase to about $100 billion over the next four years. However, the FDIC collected $46 billion in prepaid assessments at the end of last year, which it says is “more than sufficient to fund resolution activities.” However, the FDIC also announced that the reserve ratio won’t be restored to the statutory minimum target of 1.15 percent until the first quarter of 2017. That is, if current economic conditions are maintained and potentially catastrophic events such as the Gulf oil spill crisis, don’t worsen or have wide-ranging effects.   Chairman Sheila Bair said, “I’m pleased to see that events thus far have unfolded much as we anticipated when we adopted this restoration plan — but we have a long way to go, and many uncertainties remain about the speed of economic recovery and our ultimate resolution costs. I’m hopeful about the prospects for the industry, and expect that we’ll see far fewer failures in 2011 than what we’re experiencing this year.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 24 Jun 2010 00:00:00 EST EA6C3E92AF0840FC87C3232D057698E0 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=2BC1FFB88A0D4B6B9E638B9AC7B21F64 October Research Corporation, the publisher of Valuation Review , is committed to providing its customers with the highest level of service and the best media products available in the markets we serve. As part of an ongoing improvement process, and with your help, we would like you to take three minutes of your time to assist us by taking an important industry survey. Your input is critical to us, and as we understand that your time is valuable, we would like to give you two special reports completely free — a value of $90. The offerings are the 2010 State of the Industry Report and FHA Appraising 101 . Please follow this link to get started: http://www.surveymonkey.com/s/C98W783 Thu, 24 Jun 2010 00:00:00 EST 2BC1FFB88A0D4B6B9E638B9AC7B21F64 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=36DF79661F204596A5D90E2944E40A27 Equi-Trax Asset Solutions LP, the Santa Barbara, Calif.-based national collateral valuation provider, announced that its ValuePlus Enhanced BPO qualifies as an enhanced broker price opinion (BPO) as defined by Fannie Mae. Fannie Mae has agreed to accept BPOs as an indication of collateral value under certain circumstances relating to its Home Affordable Foreclosure Alternatives (HAFA) program. In this article: Equi-Trax Broker price opinions Fannie Mae Guy Taylor “We think that the GSE recognized that demand for hybrid BPO collateral valuation products continued to increase among lenders over the past several months,” said Guy Taylor , CEO of Equi-Trax. “In addition, Fannie Mae recognized that BPOs offer good value and they provide a cost-effective method for obtaining an estimate of a property’s value. To be sure, when the work is reconciled by a licensed, certified appraiser the product can be very accurate. In addition, with default servicing active, and origination volumes down, more servicers have ordered valuation products, and they often rely on BPOs during the default process.” Prior to the downturn, Equi-Trax began to develop the ValuePlus Enhanced BPO and other hybrid valuation products, because the company anticipated that lenders would have an appetite for affordable products that could deliver precise results. For their part, mortgage servicers demand more accuracy while simultaneously facing increased pressure to cut costs. Products like the ValuePlus Enhanced BPO are a hybrid of broker price opinion data combined with reconciliation provided by a licensed or certified appraiser, “to provide servicers with the benefit of two experts for the price of one,” according to the company. The ValuePlus Enhanced BPO offers property photos of the side yard, back yard, back of house, all rooms, any damage as well as an area map, MLS photos and data from three comparable sales   and three listing comps, CMA and a reconciliation by a certified appraiser with additional data points. Also included is an opinion as to the appropriateness of the valuation methods and techniques used, development and reporting of any reasons for disagreement, and a final value reconciliation. At le ast one additional comp is provided to support the analysis. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 24 Jun 2010 00:00:00 EST 36DF79661F204596A5D90E2944E40A27 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=16B4961FB0D34F1C94A90771C3C7415B The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending June 11, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 17.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 29.7 percent compared with the previous week, which was a shortened week due to the Memorial Day holiday. In this article: Mortgage Bankers Association Weekly Mortgage Applications Survey Refinance Index Michael Fratantoni The Refinance Index increased 21.1 percent from the previous week. This is the highest Refinance Index recorded in the survey since May 2009. The seasonally adjusted Purchase Index increased 7.3 percent from one week earlier, which is the first increase in six weeks. The unadjusted Purchase Index increased 17.4 percent compared with the previous week and was 31.3 percent lower than the same week one year ago. “Mortgage applications for home purchases increased last week, the first increase in over a month. Refinance applications also picked up significantly over the week,” said Michael Fratantoni , MBA’s vice president of research and economics. “While it is clear that purchase applications in May dropped sharply as a result of the tax credit induced increase in applications in April, it is unclear whether we are seeing the beginnings of a rebound now.”   The four-week moving average for the seasonally adjusted Market Index is up 3.8 percent. The four-week moving average is down 1.7 percent for the seasonally adjusted Purchase Index, while this average is up 5.5 percent for the Refinance Index. The refinance share of mortgage activity increased to 74.8 percent of total applications from 72.2 percent the previous week, which is the highest refinance share observed in the survey since the week ending December 18, 2009. The adjustable-rate mortgage (ARM) share of activity increased to 5.2 percent from 5.1 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages increased to 4.82 percent from 4.81 percent, with points decreasing to 0.89 from 1.02 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.  However, due to the decrease in points, the effective rate decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.23 percent from 4.26 percent, with points decreasing to 0.83 from 0.95 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased from last week. The average contract interest rate for one-year ARMs increased to 7.07 percent from 6.94 percent, with points decreasing to 0.27 from 0.30 (including the origination fee) for 80 percent LTV loans. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 22 Jun 2010 00:00:00 EST 16B4961FB0D34F1C94A90771C3C7415B http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=C9F0803A33854DF99AC472623018FD97 October Research Corporation, the publisher of Valuation Review , is committed to providing its customers with the highest level of service and the best media products available in the markets we serve. As part of an ongoing improvement process, and with your help, we would like you to take three minutes of your time to assist us by taking an important industry survey. Your input is critical to us, and as we understand that your time is valuable, we would like to give you two special reports completely free — a value of $90. The offerings are the 2010 State of the Industry Report and FHA Appraising 101 . Please follow this link to get started: http://www.surveymonkey.com/s/C98W783 Tue, 22 Jun 2010 00:00:00 EST C9F0803A33854DF99AC472623018FD97 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=C6AD1829C4474BEBB0F9C283C3709B69 Integra Realty Resources, Inc., the largest independent commercial real estate valuation and consulting firm in the country, announced that its Miami office merged with Stuart, Fla.-based SMP Group and opened a new Integra satellite office. This new office will add seven real estate professionals to the Integra Realty Resources-Miami/Palm Beach office, for which an additional location will be opened in Stuart. In this article: Integra Realty Resources, Inc. SMP Group Jeffrey Rogers Scott Powell “The opening of this office is an especially important milestone for Integra Realty Resources as it marks our 60th office in North America ,” said Jeffrey Rogers , COO and president of Integra Realty Resources. “We are extremely successful in southern Florida and this strategic merger with SMP Group and recruiting its top talent will further expand our real estate consulting and appraisal expertise and position ourselves as one of the top valuation firms in both the Southeast and the country as a whole.” SMP Group is a full-service residential and commercial real estate appraisal and consulting firm focusing on most of south and central Florida . They r outinely appraise such real estate as office buildings, commercial condominiums, multifamily properties, retail shopping centers, hotels, vacant land, industrial, and cell tower sites, among others. Former SMP Group President Scott Powell , MAI will become managing director of the Stuart office, while Michael Cannon and Chris Librizzi will remain executive director and associate managing director at the Miami office. Integra Realty Resources-Miami will also welcome appraisers Bill Rezendez , and Walter Kokonski , as well as four other senior analysts, John Irwin , Chris Samson , Mike Shanahan , and Warren Adams . Supporting these merger efforts, the Integra Miami office continues to work closely with Managing Director Charlie Lentz and Principal Stephen Matonis of Integra Realty Resources-Orlando in expanding Integra’s coverage in South Florida and the Treasure Coast . “This office will address the region’s growing need for independent, reliable real estate advisory, due diligence, and litigation services, as South Florida is still experiencing a volatile economic climate,” said Matonis. “Our firm was growing rapidly, but Integra offered our team the ability to provide a higher level of service and information to our growing list of clients, who demand better real estate information in today’s challenging environment,” explained Powell . “The Integra systems and technology platform is an ideal launching point for where we want to take the company.” Powell is an 18-year real estate veteran and an involved participant in the Florida real estate community. He has extensive practical knowledge in market analyses/feasibility studies, consulting, and market value appraisal reports for lending, litigation (including expert witness testimony), tax appeals, and condemnation. He is a member of the Appraisal Institute and its National Experience Review panels, and is current Chairman of the Appraisal Institute South Florida Chapter’s Candidate Guidance and University Relations Committees. In the past he has served as the President of the Appraisal Institute’s Northwestern Pennsylvania Chapter and served on its General Comprehensive Examination Subcommittee for five years. Anthony Sanna , managing partner of Integra-Miami/Palm Beach, added, “The addition of a full-service commercial and residential real estate appraisal and consulting office in Stuart expands our ability to serve our existing markets, while affording us additional capacity for larger assignments throughout Florida. Scott and his senior team have already begun significant assignments in conjunction with Integra Miami and Integra Orlando.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 22 Jun 2010 00:00:00 EST C6AD1829C4474BEBB0F9C283C3709B69 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=F6D5DB36EB6A4C74BE5CD1B57FCF9095 Mortgage brokers and Realtors have united in a last-ditch effort to get the controversial Home Valuation Code of Conduct (HVCC) killed off as part of the larger financial regulatory reform legislation that is currently being debated by lawmakers in Congress. In this article: Financial regulatory reform legislation SB 3217 HR 4173 Home Valuation Code of Conduct A joint House-Senate committee chaired by Rep. Barney Frank , D-Mass., was tasked with reconciling the two versions of the legislation, SB 3217 and HR 4173 . The House version called for the termination of the HVCC and contained provisions that would overhaul the regulatory process for appraisals, including requiring the registration of appraisal management companies (AMCs) and giving more funding for federal and state appraiser regulators accountable for oversight and enforcement of existing appraisal rules. SB 3217, however, contained no such provisions. It is hoped that the final reconciled version of the two bills, due on President Obama’s desk by the July 4 holiday, will contain the original appraisal provisions. Reports indicated that mortgage provisions would be debated on June 22 and that Realtors and mortgage brokers are especially interested in seeing the HVCC killed off. Realtors and mortgage brokers have argued against the code ever since its introduction in May 2009, saying it has led to lower quality appraisals and the use of inexperienced and unqualified appraisers. National Association of Mortgage Brokers CEO Roy DeLoach told the newspaper that the HVCC is causing more harm than good. “It’s basically hollowing out the equity in communities whether you intend to sell or not,” he said. Independent appraisers have also been opposed to the code, which resulted in the significant uptake in use of AMCs and what they see as massive downward pressure on appraisal fees as companies seek to compete with low price points. However, mortgage lenders, many of which fully own or have significant stakes in AMCs, oppose the effort to alter the rules. John Courson , the Mortgage Bankers Association’s president and chief executive officer, is quoted as saying “We’re going to try all we can to keep it out.” Most groups on both sides of the debate are in favor of retaining some kind of appraiser independence, including possibly retaining the ‘blind’ ordering of appraisals. Valuation Review will be keeping you informed on the latest developments to the financial reform legislation. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 22 Jun 2010 00:00:00 EST F6D5DB36EB6A4C74BE5CD1B57FCF9095 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=D174C34B45E0447EADDAE6F99633F8EB Nationwide housing starts and issuance of building permits stalled in May following the expiration of the federal homebuyer tax credit program, according to data released by the U.S. Commerce Department. In this article: U.S. Commerce Department National Association of Home Builders David Crowe Bob Jones New-home production declined 10 percent to a seasonally adjusted annual rate of 593,000 units, the slowest pace since December 2009, while permit issuance slowed 5.9 percent to a rate of 574,000 units, its slowest pace since May 2009. “Not surprisingly, builders tapped the breaks on new-home production and pulled fewer permits for new homes in May in response to an expected lull in buyer demand following expiration of the tax credits at the end of April,” said Bob Jones , chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “Today’s numbers show an anticipated pull-back on single-family building following the tax credit deadline,” said NAHB Chief Economist David Crowe . “No doubt, a certain amount of building and buying activity that would have taken place in May was pulled forward to accommodate the program’s end date, which is why we have projected some softening of the numbers in the second quarter. That said, in the coming months, an improving economy, rising employment, low mortgage rates and stabilizing home values should play their part to keep the housing market moving forward.”  Crowe noted, however, that the ongoing difficulties builders are having in obtaining financing for viable new projects and accurate appraisals of new homes are complicating factors that are slowing the industry’s recovery. The decline in housing starts in May was entirely on the single-family side, where the government's tax credits for first-time and repeat buyers had the greatest impact in the previous months. In that segment, starts fell 17.2 percent to a seasonally adjusted annual rate of 468,000 units, their slowest pace since May of 2009. Meanwhile, multifamily starts, which can be more erratic on a monthly basis, showed a dramatic 33 percent gain in May to a rate of 125,000 units. Permit issuance, which can be an indicator of future building activity, fell 9.9 percent on the single-family side to a rate of 438,000 units in May, which was also the slowest pace since May 2009. Multifamily permit issuance rose 9.7 percent to 136,000 units in May. Regionally, housing starts were mixed in May, with the Northeast posting a 6.3 percent decline, the Midwest a 4.9 percent increase, the South a 21.3 percent decline, and the West a 10.8 percent increase. Permits fell in every region, with a 1.5 percent decline in the Northeast, a 9.6 percent decline in the Midwest , a 5.2 percent decline in the South and a 6.8 percent decline in the West. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 22 Jun 2010 00:00:00 EST D174C34B45E0447EADDAE6F99633F8EB http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=6302272ACC2D492EA6B5CE4B483314ED The Mortgage Bankers Association released its Weekly Mortgage Applications Survey for the week ending June 11, in which the Market Composite Index, a measure of mortgage loan application volume, increased 17.7 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the index increased 29.7 percent compared with the previous week, which was a shortened week due to the Memorial Day holiday. The Refinance Index increased 21.1 percent from the previous week. This is the highest Refinance Index recorded in the survey since May 2009. The seasonally adjusted Purchase Index increased 7.3 percent from one week earlier, which is the first increase in six weeks. The unadjusted Purchase Index increased 17.4 percent compared with the previous week and was 31.3 percent lower than the same week one year ago. “Mortgage applications for home purchases increased last week, the first increase in over a month. Refinance applications also picked up significantly over the week,” said Michael Fratantoni , MBA’s vice president of research and economics. “While it is clear that purchase applications in May dropped sharply as a result of the tax credit induced increase in applications in April, it is unclear whether we are seeing the beginnings of a rebound now.”   The four-week moving average for the seasonally adjusted Market Index is up 3.8 percent. The four-week moving average is down 1.7 percent for the seasonally adjusted Purchase Index, while this average is up 5.5 percent for the Refinance Index. The refinance share of mortgage activity increased to 74.8 percent of total applications from 72.2 percent the previous week, which is the highest refinance share observed in the survey since the week ending Dec. 18, 2009. The adjustable-rate mortgage (ARM) share of activity increased to 5.2 percent from 5.1 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages increased to 4.82 percent from 4.81 percent, with points decreasing to 0.89 from 1.02 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. However, due to the decrease in points, the effective rate decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.23 percent from 4.26 percent, with points decreasing to 0.83 from 0.95 for 80 percent LTV loans. The effective rate also decreased from last week. The average contract interest rate for one-year ARMs increased to 7.07 percent from 6.94 percent, with points decreasing to 0.27 from 0.30 for 80 percent LTV loans. Wed, 16 Jun 2010 00:00:00 EST 6302272ACC2D492EA6B5CE4B483314ED http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=1936E24618024DFD8D25930D2EF5E717 Veros Real Estate Solutions, the Santa Ana, Calif.-based provider of collateral valuation technology, enterprise risk management and predictive analytics, announced the readiness of its platform systems to deliver appraisals to investors in MISMO 2.6 format to meet new industry requirements for electronic appraisal data delivery.   The VeroSELECT 3.0 platform is designed to route and return appraisals and all other forms of valuation products, including broker price opinions (BPOs), automated valuation models (AVMs), automated risk, fraud, and data products. With its connectivity into investor portals, it provides the ability to assist lenders in meeting investor compliance requirements and identify potential valuation concerns. The flexibility to dynamically route valuation orders across multiple service sources provides HVCC compliance, while tracking all transactions and data elements in a real-time, fully auditable reporting module.   VeroSELECT also maintains all data points from the valuation source, including a PDF of the entire report.   Veros’ Valuation Risk Management (VRM) system enhances the VeroSELECT technology by offering the same industry-leading collateral focused features and adding a robust and scalable valuation review module and enhanced quality control functionality.   VRM is ideal for high volume, enterprise-level collateral needs and manages all property valuations from origination through servicing.   “VeroSELECT 3.0 and VRM provide a direct path to investor electronic appraisal portals,” said David Rasmussen , senior vice president of sales for Veros.   “Over the years, Veros systems have focused on innovating and improving collateral valuation and risk procedures.   Our customers now have the ability to seamlessly submit the completed appraisal to their investor partners with immediate and significant cost savings.” Like most of Veros’ offerings, the Veros systems are delivered on a software-as-a-service (SaaS) basis, so users access the platform online and through direct system-to-system integrations. Veros takes care of hosting and maintaining the technology. “SaaS delivery lets mid-market and smaller lenders enjoy the same levels of sophistication as their largest competitors. Time and technical support resources are precious.” Rasmussen stated. “Veros is prepared to do the heavy lifting, freeing important IT resources for other tasks.” Wed, 16 Jun 2010 00:00:00 EST 1936E24618024DFD8D25930D2EF5E717 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=5FFB9BCE2D0643EC96A2E12FB3F74EDD Tyler Technologies, the provider of appraisal management solutions and services for local government, reached an agreement with Olmsted County in Minnesota to provide its property assessment and taxation software solution. Tyler Technologies Inc., the Dallas-based provider of appraisal management solutions and services for local government /quotes/comstock/13*!tyl /quotes/nls/tyl has reached an agreement with Olmsted County , Minnesota to provide Tyler ’s iasWorld, a property assessment and taxation software solution. Olmsted County , located in southeastern Minnesota , chose Tyler ’s iasWorld for its property and tax management capabilities. “ Olmsted County chose Tyler ’s iasWorld because it directly fits our need for an integrated, interoperable system, which I haven’t seen offered anywhere else,” said Mark Krupski , director of Property Records and Licensing. “By utilizing iasWorld’s Web based system for property assessment and taxation, we can reduce inefficiencies and increase the validity of data. Additionally, the mobility features are important to us going forward because it allows appraisers to do more in the field while eliminating the use of paper.” Tyler ’s iasWorld is an enterprise-oriented system that provides integrated statistical and spatial analysis tools, field operations management, customer service management, and document management. By investing in iasWorld, the county acquires a range of functions to administer and manage property valuation data, including assessment administration, CAMA (computer-assisted mass appraisal), personal property management, inquiry & appeal tracking, tax billing & collections, and delinquent tax processing. In addition, the county has added the analysis capabilities provided by spatialest and will use Tyler ’s Field and Respond modules for in-field appraisal and managing taxpayer communication. “ Tyler really took the time to listen to our wants and needs and provided very thorough responses, which we really appreciate,” said Krupski. “They absolutely instilled in us the confidence that Tyler is the appraisal and tax market leader and we’ll be partners for years to come.” “Olmsted County can take confidence in iasWorld’s layered architecture and our active R&D commitment, both of which provide for continuous product enhancement to extend the functionality and life of Olmsted’s investment in this system on an on-going basis,” said Andrew D. Teed, president of Tyler’s Appraisal & Tax Division. “We are proud of the quality of the relationships we’ve developed together with our clients in the state of Minnesota , and we look forward to building a similar relationship with Olmsted County and to expanding further in the state.” Wed, 16 Jun 2010 00:00:00 EST 5FFB9BCE2D0643EC96A2E12FB3F74EDD http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=03749EFF0A484E1C8A2C63EA8D870307 Hondros Learning, the online provider of educational tools for the mortgage industry, released several new or updated appraisal products over the past few months. In this article: Hondros Learning Appraisal CompuCram The Appraisal Review Crammer Dave Evangelisti The first product is a program designed to help appraisers prepare for exams. The Appraisal CompuCram exam prep software is a self-paced appraisal exam question-and-answer software application designed specifically for the National Uniform Licensed and Certified Residential Appraisal exams. It has recently been updated and expanded and now contains over 1,200 questions. The next product is the third edition of The Appraisal Review Crammer, an exam prep course that contains a textbook and instructor materials. It focuses on the topics and concepts that appraisers need to know for the National Uniform Licensed and Certified Residential Appraisal exam. The course includes a highly focused review, as well as numerous study aids and exam simulations. Hondros also released a new product — Appraising 2-4 Family & Multi Family Properties, an Appraiser Qualifications Board (AQB) approved classroom continuing education textbook. It deals with the various physical and legal concerns of appraising a residential income property while providing the reader with “insightful knowledge of reporting the conclusions of a residential income property including regulations, guidelines and prescribed reporting forms of major mortgage lending entities,” according to the company.   The final product is Foreclosures & Short Sales: Dilemmas and Solutions, an AQB-approved classroom continuing education textbook. It aims to provide appraisers (and other real estate professionals) insight into how foreclosures and short sales affect the appraisal process. “We pride ourselves in consistently offering the highest quality and most up-to-date learning products for the appraisal industry,” said Dave Evangelisti , vice president of Hondros Learning. “Because of constantly changing policies, best practices, and license and certification requirements, we work hard to ensure that students and practitioners alike are well-educated.” Hondros Learning develops educational tools for the real estate, appraisal, home inspection, and mortgage lending industries. Providers of education for licensure and continuing education credits like Hondros College , Holloway’s Real Estate Institute, New York Real Estate Institute, and Arizona School of Real Estate and Business, offer Hondros Learning online courses to their students. For a complete list of learning solutions or more information, visit www.hondroslearning.com . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 15 Jun 2010 00:00:00 EST 03749EFF0A484E1C8A2C63EA8D870307 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=EE08A3F8E1644414B544A5C71E7F1803 On June 8, the U.S. House of Representatives passed the FHA Reform Act, HR 5072 , in a near unanimous vote of 406-4. The bill enables the Federal Housing Administration (FHA) to reform its current mortgage insurance premium structure by shifting some of the upfront cost to the annual premium — a move that is expected to increase FHA’s capital reserves and reduce risks to the FHA insurance fund while cushioning the impact on the consumer. In this article: FHA Reform Act Shaun Donovan Barney Frank Maxine Waters The bill would allow an increase of the maximum annual premium payments for FHA mortgage insurance and would require certain lenders to indemnify the U.S. Department of Housing and Urban Development (HUD) for payment of a mortgage insurance claim if the mortgage was not originated or underwritten in accordance to HUD requirements. The legislation would also authorize HUD to require a lender to indemnify HUD for loss regardless of when an insurance claim is paid if fraud or misrepresentation was involved with the mortgage origination or underwriting. HUD would also be able to terminate approval of a lender to originate or underwrite single-family mortgages if the lender’s rate of early defaults and claims is determined excessive. Overall, the bill includes a number of provisions expected to improve FHA loan performance and capital reserves while continuing to support the broader housing market and recovery and preserving FHA’s role in providing homeownership opportunities to responsible underserved borrowers. “We are pleased that the U.S. House of Representatives passed the FHA Reform Act of 2010 today by an overwhelming margin,” said HUD Secretary Shaun Donovan . “The FHA is playing a vital role in the current housing market. We must remain mindful that qualified, responsible families need continued access to affordable homeownership options. The changes that we are implementing coupled with this bill will ensure that FHA can continue to serve as a bridge to economic recovery and that mortgage financing remains available until private capital returns. “I am grateful to the members of Congress who worked diligently on this bill — specifically, Housing and Community Opportunity Subcommittee Chair Maxine Waters , Financial Services Committee Chair Barney Frank and Subcommittee Ranking Member Shelley Moore Capito . We look forward to quick action by the Senate on this proposal to encourage responsible homeownership while further reducing risk to the American taxpayer,” Donovan added. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 15 Jun 2010 00:00:00 EST EE08A3F8E1644414B544A5C71E7F1803 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=B9F78B59170A4055BA8A8D8CA81D76D8 Veros Real Estate Solutions, the Santa Ana, Calif.-based enterprise risk management and collateral valuation services provider, was selected by Freddie Mac and Fannie Mae as the technology provider for the Uniform Collateral Data Portal (UCDP). The portal will support electronic appraisal data delivery to the government-sponsored enterprises (GSEs) as part of the Uniform Mortgage Data Program (UMDP) announced on May 24. In this article: Veros Real Estate Solutions Uniform Collateral Data Portal Uniform Mortgage Data Program Darius Bozorgi The GSEs announced that, to enhance their collateral risk management, they will require seller-servicers to submit full appraisal reports in electronic data format prior to loan delivery to either Fannie Mae or Freddie Mac, effective April 1, 2011. UCDP will serve as a centralized portal for these submissions. Veros was also selected in 2009 as the technology provider for Fannie Mae’s Collateral Data Delivery (CDD) portal for submission of electronic appraisal data, and will assist with the transition of CDD users to the new UCDP. Working with both Fannie Mae and Freddie Mac, Veros will be responsible for building, maintaining and supporting the UCDP system, as well as managing all lender connectivity to UCDP. In support of the appraisal data submission requirement, Veros is working with the GSEs to provide lenders with flexible alternatives to connect to UCDP via either direct system-to-system XML integrations or a web-based portal through which appraisals can be submitted individually or in bulk. Lender integrations to UCDP are scheduled to begin in the fall of 2010.   “Veros is honored to be an integral part of the project that takes the first step toward enhancing appraisal quality across the mortgage industry ,” said Darius Bozorgi , president and CEO of Veros. “UCDP will have long-lasting positive effects for stakeholders from investors to lenders, appraisers and appraisal service providers with the ultimate beneficiary being the consumer.” At the same time, Fannie Mae and Freddie Mac jointly completed the first key milestone of their Uniform Mortgage Data Program by making available the Uniform Loan Delivery Data Specification. The delivery specification, developed by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency, defines the loan delivery dataset and the technical framework for developing the loan delivery file that will be required for all loans delivered to either GSE on or after Sept. 1, 2011. “The delivery specification marks a major step forward in our work to improve data accuracy throughout the loan manufacturing process and fully supports our commitment to responsible lending standards,” a release from Freddie Mac stated, adding that accurate data is the foundation for generating mortgages with long-term sustainability and, when implemented, the new loan delivery requirements will offer greater confidence that the loans delivered to Freddie Mac provide complete and accurate data. By the end of June, Freddie Mac and Fannie Mae will each publish an Implementation Guide to Loan Delivery Data, which will provide specific implementation requirements that are based on each GSE’s unique business policies and process requirements. For more information, go here . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 15 Jun 2010 00:00:00 EST B9F78B59170A4055BA8A8D8CA81D76D8 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=B2AAAA8CF1DD403ABE4E58A27F2A4AF2 Multiple factors, including poor data, incomplete performance metrics and short-term focus and unrealistic optimism, among senior business managers at lending institutions contributed to the collapse in the U.S. housing and mortgage markets, according to a study released by the Mortgage Bankers Association (MBA). The study titled “ Anatomy of Risk Management Practices in the Mortgage Industry ,” which was conducted by professor Cliff Rossi of the University of Maryland and sponsored by MBA’s Research Institute for Housing America (RIHA), analyzes the risk management processes employed by mortgage lenders leading up to the housing crisis and discusses lessons learned for future risk managers.  In this article: Risk management Mortgage Bankers Association Cliff Rossi Michael Fratantoni “As home prices increased, lenders were pressured to offer innovative products that could help borrowers afford a home. The resulting increase and expansion of risk layering and change in borrower behavior left risk managers unable to offer reliable risk estimates,” Rossi said. “According to some empirical analysis, when market conditions changed, mortgage performance models proved unstable, with loans originated in 2006 defaulting at four times the rate of what a model prior to 2004 would have predicted. Moving forward, it will be essential for the industry to develop early warning measures of the level of risk in new originations and less reliance on imprecise historical performance of new loan products.” Key findings from the study include: • Subprime loan underwriting criteria along several risk attributes expanded between 1999 and 2006. In particular, combined loan-to-value ratios increased over time as the percentage of loans with silent second liens attached to the property also increased. At the same time, the percentage of loans with full documentation declined. The resulting increase in risk layering created a gap in understanding the long-term risk profile of these new product combinations and greatly altered the standard products. • The relative lack of geographic and product diversification by a number of the largest mortgage lenders was rationalized by investment opportunity costs and relative value. For risk managers, building a strong empirical case for concentration risk limits was challenged by limited and changing information. • A false sense of security with new products originated prior to 2007 occurred as a result of better-than-average economic conditions coupled with a lack of information regarding subtle but real changes in borrower and counterparty behavior. Models using such macroeconomic conditions as key inputs to explain mortgage default and prepayment were biased toward lower loss estimates as a result. • Cognitive bias toward risk management may have combined with management views on loss-taking to view risk managers as overly conservative and inefficient, which would explain senior management’s actions that ultimately placed their firms at risk. Limiting both the size and stature of the risk management organization would have made sense to senior management based on a lower aversion to losses. Facilitating such views among business managers about risk management are differences in the type of information used and analyzed by both groups. Where business managers could point to tangible, immediate losses in revenues from tighter standards, risk managers could only appeal to probabilistic risks from estimated loss distributions subject to significant uncertainties. “In addition to the limits in information available to risk managers, corporate culture and cognitive biases also strongly influenced decision-making during the boom. Of particular influence was the decline in senior business management's loss aversion due to the lengthy period of strong home prices and low defaults, which led to relaxed underwriting and high levels of risk layering,” Rossi said. “The combination of informational limitations on risk managers and a governance structure and culture that may have tipped decisions in favor of business-driven strategies is central to explaining the increase in risk-taking that took place throughout the industry,” Rossi continued. “As the industry is now compensating for the resulting losses through tighter underwriting standards and a lower appetite for risk, it will be vital for executive management to instill a culture where all employees are on guard for risks that exceed the risk appetite of the company,” he continued. Rossi is the Tyser Teaching Fellow and managing director of the Center for Financial Policy at the University of Maryland . In addition to his academic credentials, he has more than 20 years of experience within the industry and at the regulatory agencies. Michael Fratantoni , MBA’s vice president of research and economics added, “Today's mortgage industry is operating under vastly different guidelines than just a few years ago and the survivors in the industry today are clearly the companies that did things right. However, it is imperative that we look back and examine the factors that led to the problems that fed the financial crisis. There are a range of views regarding the causes of the crisis. We asked Professor Rossi, given his extensive academic and industry experience, to offer us his views on what happened, and what the industry can do going forward to prevent such misjudgments in the future. There is room for debate on how best to proceed, but certainly building a stronger risk management framework around the mortgage industry will be critical.” To obtain a copy of the report, please visit the RIHA website at www.housingamerica.org Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 15 Jun 2010 00:00:00 EST B2AAAA8CF1DD403ABE4E58A27F2A4AF2 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=D691F14B972A470F980D5CDA656AAC18 The Mortgage Bankers Association released its Weekly Mortgage Applications Survey for the week ending June 4, showing the Market Composite Index, a measure of mortgage loan application volume, decreased 12.2 percent on a seasonally adjusted basis from one week earlier. In this article: Weekly Mortgage Applications Survey Mortgage Bankers Association Refinance Index Michael Fratantoni This week's results include an adjustment to account for the Memorial Day holiday. On an unadjusted basis, the index decreased 21.1 percent compared with the previous week. The Refinance Index decreased 14.3 percent from the previous week and the seasonally adjusted Purchase Index decreased 5.7 percent from one week earlier. The unadjusted Purchase Index decreased 16.3 percent compared with the previous week and was 30.4 percent lower than Memorial Day week last year.   The four-week moving average for the seasonally adjusted Market Index was down 0.7 percent. The four-week moving average was down 11.7 percent for the seasonally adjusted Purchase Index, while this average was up 3.6 percent for the Refinance Index. “Purchase and refinance applications dropped this week, even after an adjustment for the Memorial Day holiday. Purchase applications are now 35 percent below their level of four weeks ago, as homebuyers have not yet returned to the market following the expiration of the homebuyer tax credit at the end of April,” said Michael Fratantoni , MBA’s Vice President of Research and Economics. “Although rates remained essentially flat, refinance applications dropped this past week for the first time in a month. Despite the historically low rates, many homeowners have already refinanced recently, remain underwater on their mortgages, have uncertain job situations or have damaged credit following this downturn, and therefore may not qualify to refinance.” The refinance share of mortgage activity decreased to 72.2 percent of total applications from 73.8 percent the previous week. This is the first decline in the refinance share in five weeks. The adjustable-rate mortgage (ARM) share of activity decreased to 5.1 percent from 5.2 percent of total applications from the previous week, which is the third consecutive weekly decrease. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.81 percent from 4.83 percent, with points decreasing to 1.02 from 1.05 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.  The effective rate also decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages increased to 4.26 percent from 4.24 percent, with points decreasing to 0.95 from 1.11 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. The average contract interest rate for one-year ARMs decreased to 6.94 percent from 6.96 percent, with points increasing to 0.30 from 0.27 (including the origination fee) for 80 percent LTV loans. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 10 Jun 2010 00:00:00 EST D691F14B972A470F980D5CDA656AAC18 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=A0E353584F3C4DB9999A9ADC8A4AE248 A nonprofit green building resource and education group will work with local appraisers to educate professionals about the city’s new Energy Performance Score (EPS) home energy audits and retrofit program. The Earth Advantage Institute will work with the Seattle city officials to educate real estate brokers and appraisers about the city’s Energy Performance Score (EPS) home energy audits and retrofit program. In this article: The Earth Advantage Institute Energy Performance Score (EPS) Taylor Watkins The EPS is a points-based home energy scoring system and audit that can include energy upgrade recommendations. The city’s objective is to boost the number of residential energy upgrades and is helping appraisers understand how it applies to the valuation of properties. Earth Advantage Institute will commence training for more than 100 area appraisers starting July 30 using its S.T.A.R. (Sustainability Training for Accredited Real Estate Professionals) curriculum to teach them about green building techniques, green home certification programs, and the value of energy audits and energy upgrades.  According to a press release, the group believes that appraisers are critical in helping to provide accurate valuation and successful financing of green and energy saving homes, which offer benefits ranging from reduced energy costs to healthier indoor air. Appraisers will learn how to apply recent cost data for green homes, apply energy efficiency adjustments, and assess quality of construction. The organization will also train more than 350 real estate brokers and salespeople who work in the Seattle area. “Energy efficient and green homes are gaining a larger market share in many parts of the country, expanding what was once a niche market,” said Taylor Watkins , principal, Watkins & Associates, and developer of Earth Advantage Institute’s appraisal class.  “There are also various legislative movements afoot to directly affect the appraisal of these homes. It is clearly in appraisers’ interests to familiarize themselves with these homes and how they perform in the market in order to appraise them appropriately.” While there is normally a fee associated with these two-day courses, the Seattle trainings are being underwritten by the city of Seattle . Spaces are limited and will be offered on a first-come first-serve basis to licensed professionals from the Seattle area. Continuing education hours are available upon successful completion of coursework. For more information or to register for one of the courses, contact the Earth Advantage Institute at (503) 968-7160. For more on green appraising, check out the most recent cover story from Valuation Review , “It’s good to be Green.” Thu, 10 Jun 2010 00:00:00 EST A0E353584F3C4DB9999A9ADC8A4AE248 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=A1FF4176FB4441A5B6360758F65F59F2 Rep. Barney Frank , D-Mass., indicated that any proposals drafted behind closed doors regarding the financial regulatory reform legislation will be presented and debated publicly. Frank is the chair of the joint House-Senate committee tasked with drafting a final bill that will overhaul the nation’s financial regulatory structure. He told reporters on June 3 that he intends to have a bill ready for the president’s signature by June 24. In this article: Restoring American Financial Stability Act of 2010 Rep. Barney Frank Rep. Paul Kanjorski The committee was formed following the Senate’s passing of SB 3217 , the Restoring American Financial Stability Act of 2010, on May 20. The bill is to be reconciled with its House companion, HR 4173 , which passed on Dec. 11, 2009. Veteran real estate reporter Ken Harney , writing for The Washington Post , said that a “bipartisan push is underway to persuade conferees to adopt the House version.” HR 4173 contained provisions introduced by Rep. Paul Kanjorski , D-Pa., which, in addition to giving more funding and accountability for federal and state appraiser regulators accountable for oversight and enforcement, would also regulate and register appraisal management companies and promote the use of highly qualified and competency real estate appraisers. HR 4173 also called for the termination of the controversial Home Valuation Code of Conduct. “The code has been criticized by consumers, realty agents, builders and appraisers for encouraging lowball appraisals and the use of inexperienced appraisers willing to work for low fees,” wrote Harney. A last-minute amendment to SB 3217, by Sen. Robert Casey , D-Pa., which failed to make the final version, contained much of the same language.     Republican members on the joint House-Senate committee have expressed concern about conversations taking place behind closed doors and are calling for a fair and open process, according to a report by Reuters , which indicated that one senator said he had “no idea whether they will be part of backroom discussions on the most sensitive issues.” Frank countered this statement, noting that “any conversation about what the bill should look like will be presented publicly in conference, debated and voted on” by the joint committee members. Lawmakers are now working to reconcile the bills’ differences, as well as discuss items that some feel should be included in the bill. One concern for Republicans is that the bills do not include reforms for Fannie Mae and Freddie Mac. The two have been blamed for being the root cause of the recent economic crisis. Lawmakers opposed to addressing Fannie and Freddie at this time indicate that reform should take place only after the house market recovers. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Thu, 10 Jun 2010 00:00:00 EST A1FF4176FB4441A5B6360758F65F59F2 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=36C144894E914732A87C4AD6B655E158 U.S. Bank, the nation’s fifth largest bank, will incorporate the Collateral Valuation Report (CVR) as its preferred valuation product. Forsythe Appraisals, LLC, the largest independent appraisal firm in the country and Valocity, LLC, its appraisal management company arm, were selected by U.S. Bank to provide the new CVR appraisal report on a nationwide basis. Both Forsythe Appraisals and U.S. Bank are headquartered in Minneapolis . In this article: U.S. Bank Forsythe Appraisals Valocity Collateral Valuation Report The CVR is a USPAP-compliant appraisal product that incorporates regression analysis performed by the appraiser to support the value conclusion. The valuation report and software was developed by Bradford Technologies, Inc., headquartered in Silicon Valley , as part of their suite of AppraisalWorld Services for appraisers, appraisal management companies and lenders. Forsythe Appraisals, Valocity and Bradford Technologies partnered to provide the CVR as a cost-effective alternative to broker price opinions (BPOs) and Automated Valuation Models (AVMs) which typically require little or no appraiser interaction. Tony Pistilli , U.S. Bank’s chief retail appraiser for consumer banking risk management explained that U.S. Bank was attracted to the CVR by its accuracy and reliability. “We believe the CVR will provide a more accurate and more reliable valuation with additional analytical features compared to anything else currently in the marketplace,” he said. “The value of the CVR is seen as a better way to ensure objectivity and to deliver a valuation with a minimum of valuation bias”. Tim Forsythe , CEO of Forsythe Appraisals, was enthusiastic about broadening his firm’s existing relationship with U.S. Bank. “Obviously we’re thrilled to be working with U.S. Bank to provide products and services that meet a broad range of lending needs. We anticipate it being a real help to them and hope that we can provide the CVR solution for other needs in the future. Valuations based on regression analysis performed by appraisers who are the local market valuation experts is the way all appraisals in the future will be performed. We are enthusiastic about leading the industry alongside U.S. Bank,” he said. Mark Linné , EVP of education and analytics at Bradford Technologies, echoed Forsythe’s sentiments when he said, “Transparent statistics will be a part of all appraisals in the future. We are adding science to the art of appraising and we are very pleased that U.S. Bank recognizes the value that statistically supported valuations will bring to their risk analysis and decision making process.” “We’re making every effort to educate the marketplace on the CVR and the great value it offers. We are making a difference one lender at a time. We are also currently training and certifying hundreds of appraisers on the use of regression analytics to meet the coming demand,” he continued. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 10 Jun 2010 00:00:00 EST 36C144894E914732A87C4AD6B655E158 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=77B22836B556421D9DA7CA26AD595279 Erin Toll formally resigned her position as the director of the Colorado Division of Real Estate on May 31. She had been suspended pending an investigation into her conduct when she told reporters that her division was looking into allegations of false advertising at a mortgage company owned by an influential state senator. In this article: Erin Toll R. Don Larrance Barbara Kelley Ted Harvey However, Toll didn’t remain unemployed for long. On June 4, it was announced she had accepted a position as a broker associate at real estate firm Perry & Co. Real Estate Professionals. “ Erin ’s reputation as a consumer watchdog perfectly fits our company mission of providing extraordinary customer service to our clients,” said R. Don Larrance , president of Perry & Co. Despite spending the majority of her career on the regulatory side of real estate, Toll revealed that she had always wanted to work in the private sector. " I’ve loved the real estate business, working on the regulatory and advocacy side. It’s always been a dream of mine to put those skills to work, helping clients buy and sell properties ,” Toll said. Her knowledge of real estate law and her experience working with a variety of businesses involved with real estate transactions makes the step into real estate sales a natural next move, Larrance said. Barbara Kelley , executive director of DORA, accepted Toll’s resignation and expressed her appreciation for the years of service that Toll provided to the state as a “passionate consumer advocate.” In a joint letter of resignation, Toll expressed her gratitude to the exceptional staff at the Division of Real Estate, representatives of the Attorney General’s office that have provided counseling on legal matters and to industry representatives serving on boards and task forces. The letter stated that in her new position as a broker, Toll will “represent clients with the same type of energy and zeal that was shown in her public sector work.” Toll had built up a reputation as a passionate and zealous enforcer of regulations in her time as the top cop for the mortgage industry in Colorado . Since 2006, she headed up the state’s real estate regulatory arm and in addition to overseeing investigations, licensing and discipline of all areas of real estate, she gained national and local recognition for her enforcement efforts at cleaning up the mortgage loan industry. She became well-known in the appraisal community when she tackled allegations of artificial price inflations in the state’s conservation easement program. Several appraisers were fined and lost their licenses as a result of the investigation. Prior to her work at the Colorado Division of Real Estate, Toll had worked as the deputy commissioner of the Colorado Division of Insurance where she was recognized nationally after testifying before the U.S. Congress regarding real estate transactions. She also represented this division in all its legal matters as their assistant attorney general. Toll was suspended from the Colorado Division of Real Estate for telling the press that a company called American Home Funding was under investigation by the division for allegations of false advertising. The mortgage company was owned by state Sen. Ted Harvey , R-Douglas County , who was a vocal opponent of Toll’s effort to enact legislation that would have put her division in control of the regulation and registration of appraisal management companies and other mortgage companies. Toll and Harvey had sparred during several committee meetings, with Harvey labeling Toll’s processes as “dictatorial”, while Toll called Harvey “vicious.” However, Toll’s statements concerning Harvey ’s company were premature. The investigation into American Home Funding did not begin until the day after Toll revealed the information to the press. Toll’s attorney said that a subordinate erred by not opening the investigation when earlier instructed by Toll to do so. Within days, Toll had been suspended from her position and an investigation was launched into her conduct to decide if it was a retaliatory attack against Harvey . Her resignation means that her whistleblower complaint against the Colorado Department of Regulatory Agencies (DORA) was settled. She had filed the complaint against Kelly, saying that her suspension was unfair. Marcia Waters has been appointed as the acting director of the Division of Real Estate. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 08 Jun 2010 00:00:00 EST 77B22836B556421D9DA7CA26AD595279 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=7C2409D6A5B44A3BA04D64AE2B61FAC9 Lincoln Appraisal & Settlement Services, the Providence, R.I.-based vendor management company, signed up a new lender client, the Hauppauge, N.Y.-based United Mortgage Corp. In this article: Lincoln Appraisal & Settlement Services United Mortgage Corp. George Panichas Established in 1991, United Mortgage Corp. is an approved Fannie Mae and Freddie Mac lender. The company offers products for all types of homes, credit and income situations.  Lincoln Appraisal & Settlement Services will be providing its full suite of residential, specialized appraisal, title, and closing services and products to United Mortgage Corp., which will have access to Lincoln’s Nationwide Corporate Appraisal Network (NCAN) and an 3 Level Corporate Appraisal Quality Control Management Process. George Panichas , chairman and CEO of Lincoln Appraisal & Settlement Services said, “United Mortgage Corp. is a great addition to our client roster and we look forward to working with them. Like our goal with all our clients, we will work to establish a successful long-term business partnership.” Lincoln Appraisal & Settlement Services, founded in 1998, has a roster of clients including lending institutions, mortgage brokers, investment banks, law firms, mortgage insurance, and mortgage servicing companies. Some of these companies are TD Bank , Sovereign Bank, Genworth Financial, Mortgage Guaranty Insurance Corporation (MGIC), Crescent Mortgage, Ryland Homes , and JMAC Lending. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 08 Jun 2010 00:00:00 EST 7C2409D6A5B44A3BA04D64AE2B61FAC9 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=892375AB26CE40E58C6D8E982AA546E7 NetMore America, Inc., an expanding next-generation mortgage banker, recently selected Valuation Partners, a national real estate valuations provider, as its preferred appraisal provider following “mixed results” with its original appraisal provider. In this article: NetMore America, Inc. Valuation Partners Lisa Schreiber Bill Fall NetMore America is a next-generation mortgage leader founded in 2006. It has expanding retail and wholesale mortgage originations channels. NetMore’s product mix is currently 40 percent Federal Housing Administration and 60 percent agency loans. The company employs 215 people and is based in Walla Walla , Wash. , with its operations center located in Clackamas , Ore. NetMore, which recently surpassed $1 billion in annual loan volume, had experienced “mixed results” from its original appraisal providers, a group of unnamed appraisal management companies. Instead, based on the recommendations of clients and partners, the company turned towards Sugarland, Texas-based, Valuation Partners for its appraisal needs.   “Based on what we were hearing about Valuation Partners, we decided to try them out.   Since then, we have been very impressed with the company’s ability to customize its web solutions for originators, as well as its appraiser proximity certifications,” said Lisa Schreiber , chief strategy officer of NetMore America . Launched last month, Valuation Partners’ appraiser proximity certification incorporates geo-coding technology to indicate the distance between a subject property and the appraiser’s place of business, in an effort to ensure the appraiser has local area expertise. “We are pleased to be working with a quality organization like Valuation Partners,” Schreiber continued. “They have a personal touch alongside the ability to listen to and understand our needs and those of our clients. Whenever we have a question or concern, we always get a quick response. Since our relationship began, they have continued to improve their quality of performance, which affords a better process for our origination partners.” A subsidiary of the William Fall Group, Valuation Partners provides vendor management, appraisal reviews, and collateral assessments and other services. “Delivering the highest quality appraisals is the cornerstone of our business,” said Bill Fall , CEO of Valuation Partners. “We are delighted to partner with NetMore America , a company that shares our commitment to integrity and excellent customer service. We look forward to a long and successful relationship.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 08 Jun 2010 00:00:00 EST 892375AB26CE40E58C6D8E982AA546E7 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=DB1F233C016A4A8DBE5CF0B5A215BFB7 Trulia.com and RealtyTrac released the latest results of an ongoing survey tracking home buyers’ attitudes towards foreclosures. In this article: Trulia.com RealtyTrac Harris Interactive Pete Flint The online survey conducted on their behalf from May 10-12 by Harris Interactive showed a notable decrease in consumers’ willingness to buy foreclosed properties compared to one year ago. Currently, 45 percent of U.S. adults age 18 and above are at least somewhat likely to consider purchasing a foreclosed home in the future, compared to the 55 percent of U.S. adults age 18 and above surveyed online by Harris Interactive on May 1-5, 2009. Underwater and walking away Only 1 percent of homeowners with a mortgage say walking away from their home would be their first choice if they were unable to pay their mortgage. If their mortgage were to go “underwater,” 41 percent would at least consider walking away, while 59 percent would not consider walking away no matter how much their mortgage was underwater, the results state.   “For every borrower who avoided foreclosure through the Home Affordable Modification Program (HAMP) last year, another 10 families lost their homes. It now seems clear that government programs will not reach the overwhelming majority of homeowners in trouble,” said Trulia’s co-founder and CEO Pete Flint . “Combined with decreased consumer interest around purchasing a foreclosure, it may take even longer than anticipated to see true health return to the real estate market.” The bank-owned discount Reportedly, 18 percent of U.S. adults expect bank-owned homes to offer a realistic price discount of less than 25 percent off the value of a similar home that was not in foreclosure. However, not all consumers have realistic expectations, with 36 percent saying that they expect to receive a discount of 50 percent or more when purchasing a bank-owned property.  Most consumers (95 percent) would expect to pay less for a foreclosed home than for a similar home for sale that is not in foreclosure. Negative stigma to buying a foreclosure The current survey found lower levels of negative sentiment towards purchasing foreclosed properties than one year ago, with 78 percent of U.S. adults believing there are downsides to buying foreclosed properties compared to 85 percent in May 2009. Among those who think there are negative aspects to purchasing a foreclosed home, the top concerns about purchasing a foreclosed property between May 2010 and May 2009 include: Negative Sentiment     May 2010         May 2009 Hidden Costs               68 percent        71 percent Process is risky             49 percent        46 percent Home will lose value    35 percent        31 percent “Although fewer consumers expressed interest in buying a foreclosed home than a year ago, the actual sales of bank-owned properties (REOs), along with sales of properties in the foreclosure process, continue to increase — accounting for more than 30 percent of total sales in the first quarter of 2010 according to our data,” said Rick Sharga , senior vice president for RealtyTrac. “We anticipate that there will be an increased number of both REO purchases and short sales throughout the rest of the year as the most active buying segments — first-time home buyers and investors — continue to look for bargains.” “It appears that potential homebuyers are taking a more realistic view of foreclosure purchasing,” Sharga continued. “Buying a foreclosure property still provides an opportunity for dramatic savings on a home, but the time and effort involved in executing a short sale, bidding against other buyers for an REO or the need to do renovations may be issues for buyers not as focused on getting the best price.” Renovations and remodeling                                                       The majority of U.S. adults (92 percent) said they would be willing to invest in improvements such as renovations and remodeling if they purchased a foreclosed home.  Of those consumers who would be willing to invest in improvements, 65 percent would be willing to invest 20 percent or less of the purchase price to upgrade the property and make it their own.      Renters Renters are showing strong interest in buying foreclosed properties, with 57 percent at least somewhat likely to purchase a foreclosed home in the future. In comparison, only 40 percent of current homeowners would consider buying a foreclosure in the future.  Additionally, the likelihood to consider purchasing a foreclosure decreases with age: 65 percent of renters ages 18-34, 63 percent of renters between the ages of 35-44, and 54 percent of renters ages 45-54 are at least somewhat likely to consider purchasing a foreclosure, compared to only 31 percent of renters 55 years and older. Uses for foreclosure purchase Among U.S. adults at least somewhat likely to purchase a foreclosed home, 62 percent said they would use the property for their personal primary residence, 19 percent said they would use it as a rental investment, 8 percent said they would use it as a second home or vacation home, and 6 percent said they would buy and quickly resell (or flip). Renters were more likely to say they would purchase a foreclosed property as a primary personal residence (83 percent), while more than half of homeowners (51 percent) said they would purchase a foreclosed property for a use other than a personal primary residence. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Tue, 08 Jun 2010 00:00:00 EST DB1F233C016A4A8DBE5CF0B5A215BFB7 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=1A4201DE9ABD4BDAA6783CE0EB6BFE6E The Appraisal Foundation joined forces with the Association of Appraiser Regulatory Officials (AARO) to offer free training to state investigators. The foundation will offer two Level 1 (beginner) courses and two Level 2 (advanced) courses in 2010. In this article: The Appraisal Foundation The Association of Appraiser Regulatory Officials David Bunton Bruce Fitzsimons Each training session, which will accommodate up to 40 state investigators, will be offered at no cost to the states, as a result of a grant to The Appraisal Foundation from the Appraisal Subcommittee (ASC). In addition, transportation to the sessions as well as lodging and meals will be reimbursed by the Foundation. The goal of these sessions is to promote greater consistency in the evaluation and investigation of complaints filed against appraisers nationwide.   Each training session will be presented over a two-and-a-half-day period. The Level 1 session will focus on the Uniform Standards of Professional Appraisal Practice (USPAP) from a state regulator perspective, as well as offer recommended investigative and interview techniques. Greater uniformity in the reporting of investigators findings will also be a component of the sessions. The Level 2 session will include additional information that is built upon the tools and information that was provided in the first offering.  “This is a perfect example of how, when working together, we can address a key component of effective enforcement,” said David Bunton , president of The Appraisal Foundation. “We applaud AARO for developing the concept of the investigator training sessions and the Appraisal Subcommittee for providing the funding to make this worthwhile program possible. The fact that last year’s attendees requested a second, more advanced course underscores just how well this program has been received.” “AARO is excited to again participate in the joint venture of Investigator training for state appraiser enforcement agencies,” stated Bruce Fitzsimons , current president of AARO. “The 2009 course offerings proved most beneficial by providing, among other things, an expanded understanding of how USPAP is viewed and used by regulatory agencies. Both course offerings will provide a variety of opportunities and tools that will afford state appraiser regulatory agencies and their staffs the ability to provide consistency in the investigation and techniques that will assist in closing appraiser complaints in a fair and timely manner.” State appraiser regulatory boards should look for an email invitation from The Appraisal Foundation for the Level 1 course which will be offered on Aug. 5-7, in Chicago and Oct. 28-30, in Dallas . State investigators who attended the Investigator Training Course (Level 1) in 2009 will be sent an email invitation to attend the Level 2 course on Sept, 9-11, 2010, in Washington , D.C. and Nov. 11-13, 2010, in Scottsdale , Ariz. Each state may send one state investigator. Additional spaces will be available after everyone has had an opportunity to register. Any questions on this program can be directed to Adam Turek at adam@appraisalfoundation.org . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 03 Jun 2010 00:00:00 EST 1A4201DE9ABD4BDAA6783CE0EB6BFE6E http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=D95868C646BD4209BFA19A13CD01DB02 Bradford Technologies, valuation services portal and technology provider, partnered with Roseville, Calif.-based C&D Real Estate Appraisal & Review. Chris Willsher, CEO and chief appraiser of C&D, has run the company for more than 23 years. The partnership is to offer C&D clients and team members the Collateral Valuation Report (CVR) product. In this article: Bradford Technologies C&D Real Estate Appraisal & Review Chris Willsher Karen Finn The CVR delivers market analysis by using statistical data and market regression together with the local knowledge from licensed and certified appraisers. Karen Finn , review team leader for Bradford , claimed that the CVR is industry changing. “Production of an accurate valuation report, but delivered by a local, experienced appraiser is the key,” she said.   The CVR can be completed in less than half the time of a traditional URAR report and for a lower fee. C&D’s Director of National Sales, Fallon Vaughan , was excited by the new product and believed it could help his company. “I’ve personally seen asset companies spend tens of thousands of dollars monthly on BPO and field reviews. The Collateral Valuation Report will be able to save each company time, money, and most of all increase credibility to our markets.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 03 Jun 2010 00:00:00 EST D95868C646BD4209BFA19A13CD01DB02 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=8B27B46D9013406DA862390B048338A7 After years of anticipation and lengthy preparation, The First American Corp. of old is no more. In its place come the new faces of First American Financial Corp. and CoreLogic Inc., as June 1 brought the successful spin-off of the two separate publicly traded companies. First American Financial will house First American’s title insurance and settlement services business, while CoreLogic is the umbrella for First American’s data arm, including consumer, financial and property information and business services.   In this article: The First American Corp. First American Financial Corp. CoreLogic Inc. Parker S. Kennedy “Today is the culmination of the many months of hard work necessary to accomplish the launch of these two exciting companies,” said Parker S. Kennedy , executive chairman of both First American Financial and CoreLogic. “On behalf of the boards of directors of both companies, I thank the dedicated employees that made this transaction possible and I congratulate Dennis Gilmore , the chief executive officer of First American Financial, and Anand Nallathambi , the chief executive officer of CoreLogic, as they formally assume the leadership of these two public companies and begin the effort to capitalize on the many opportunities that the separation presents.” The separation was accomplished through the spin-off of the common stock of First American Financial to the shareholders of The First American Corp. In the transaction, The First American Corp., which will reincorporate in Delaware and assume the name CoreLogic Inc., distributed one share of First American Financial common stock for each common share of The First American Corp. outstanding as of the close of business on May 26. The distribution will be issued in book entry form only, so no physical share certificates will be issued. Cash will be issued in lieu of any fractional shares. On June 2, First American Financial common stock will begin trading on the New York Stock Exchange (NYSE) under the FAF ticker symbol utilized by its former parent, and CoreLogic common stock will begin trading on the NYSE under its new ticker symbol, CLGX. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 03 Jun 2010 00:00:00 EST 8B27B46D9013406DA862390B048338A7 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=952C19C297C449A592848C1A04F3899A The national real estate services and investment firm Grubb & Ellis Company is launching a new commercial appraisal company using its Landauer brand. The Santa Ana, Calif.-based company announced June 2 that the new commercial appraisal and valuation business will be run by Douglas Haney , president, and Eduardo Alegre , executive managing director. The new company will be known as Grubb & Ellis Landauer Appraisal & Valuation and is focused on having a presence in every key market by the end of the year. In this article: Grubb & Ellis Company Grubb & Ellis Landauer Appraisal & Valuation Douglas Haney Eduardo Alegre “The Landauer brand is highly regarded in the commercial real estate industry so we are incredibly excited to reintroduce it with the launch of our new national appraisal and valuation business,” said Thomas P. D’Arcy , president and chief executive officer of Grubb & Ellis Company. “We are intensely focused on growth. This initiative is a tremendous addition to our platform and one that we believe will add significant earnings and value to Grubb & Ellis.” Grubb & Ellis acquired Landauer & Associates in 1999 and historically has offered appraisal services in limited markets. The establishment of Grubb & Ellis Landauer Appraisal & Valuation as a national business is part of the company’s strategy of expanding into complementary businesses. “We believe that the need for appraisal services will increase significantly, especially as the commercial real estate markets begin to recover,” said Jack Van Berkel , chief operating officer and president, real estate services. “With Doug and Ed at the helm of Grubb & Ellis Landauer there’s no question we’ll rise to an industry leader in a very short time.” “Over the past 18 months, Grubb & Ellis has been making the right moves to position itself for a recovering market,” Haney said. “This is an opportunity for us to use our expertise to build a business that will greatly enhance the full-service platform the company is prepared to deliver.” Haney joins Grubb & Ellis from IDS Real Estate, where he advised the firm’s investment committee on feasibility, equity, debt and strategic valuation assignments. He spent the previous 34 years as a member of CB Richard Ellis’ appraisal business, where he served as president of the firm’s valuation & advisory services division and member of CBRE’s North America operations’ management board. Under his leadership, CBRE’s appraisal operations became the largest in the country in terms of revenue and profitability. Haney holds the MAI designation from the Appraisal Institute. Alegre brings to Grubb & Ellis more than 25 years of successful experience in the commercial real estate industry, including appraisal, consulting and brokerage. He started his professional career with CB Commercial in 1984, and became that firm’s top appraisal producer nationwide. Most recently, he was a principal at Playa Capistrano Enterprises, where he provided specialized consultation services to corporations and other real estate organizations in the U.S. and abroad. He is the co-author of books such as the Commercial Real Estate Sales Guide and A Tenant’s Guide to Leasing Commercial Real Estate . Alegre also holds the MAI designation from the Appraisal Institute. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 03 Jun 2010 00:00:00 EST 952C19C297C449A592848C1A04F3899A http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=A350C48CEF8641D0B70EE274A427BC84 Valligent, the Roseville, Calif-based provider of collateral valuation and risk management solutions, launched a new appraisal review certification called V-Cert, designed to give the assurance that the company’s desk reviews are completed in accordance with secondary market investor and rating agency requirements and adhere to the most stringent, thorough, and consistent quality standards.   In this article: Valligent AppraisalUnderwriter Jeremy McCarty V-Cert is available for free through AppraisalUnderwriter, Valligent’s proprietary solution for mortgage quality control professionals that combines a USPAP-compliant desk review, fraud/foreclosure risk analysis, and value determination. “With a V-Cert in the loan package, secondary market investors can be confident in the collateral value of the loans they purchase,” announced the company. V-Cert is also designed to eliminate the need for so-called “back-end” valuation investigations by shifting the due diligence to the pre-funding stage of the loan process. “The extent of today’s mortgage crisis would not have been nearly as great if there were confidence in the underlying collateral of the mortgages held,”   argued Jeremy McCarty , CEO and chief valuation strategist of Valligent. “At the end of the day, if a loan goes into foreclosure, you are left with the collateral. It is imperative the appraised value is thoroughly supported and accurate at the time of funding.” The release of V-Cert is another example of a growing trend among AMCs and appraisal firms to offer insurance or guarantees with the appraisals, in part to assuage the concerns of lenders and investors who are afraid of sustaining any more losses, following the continued turmoil in the secondary market. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 01 Jun 2010 00:00:00 EST A350C48CEF8641D0B70EE274A427BC84 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=4751FB0DBCAC494C91D4245301398309 The driving force behind the controversial Home Valuation Code of Conduct (HVCC), New York Attorney General Andrew Cuomo , formally announced he was entering the race to be the next governor of New York State May 22, replacing current incumbent David Paterson . He moved a step closer last week when he accepted the Democratic nomination for governor at the party convention.    In this article: Andrew Cuomo Home Valuation Code of Conduct Fannie Mae Freddie Mac Cuomo, whose father served as governor of New York from 1983-1994, has been widely tipped to run for the governor’s post for many months now. In February, it was revealed that he had been receiving donations from various industries towards any future campaigns. Interestingly, the industry that contributed the most to his war chest — 17 percent — was real estate, including developers, construction executives and real estate lobbyists. The race for governor comes after a few testing years for Cuomo, including going through a difficult divorce. “Sure it’s hard to come back,” he told reporters. “I saw it in my own life. A few years ago, I ran for governor and I lost. And I then went through a very difficult time in my personal life. It was a public humiliation. People said it was over for me; they said my public service career was finished — there was no way I could come back. Some days even I thought they were right.” Cuomo was the architect of the controversial HVCC, the result of a joint agreement between his office and the Federal Housing and Finance Agency, Fannie Mae and Freddie Mac. While some have welcomed the HVCC as a step in the right direction, particularly for easing the documented pressure for residential real estate appraisers to help close a loan, many independent appraisers blame Cuomo for instigating the process in which incomes were slashed, a direct result of the creation of a firewall between loan originators and appraisers. In some cases, this anger was taken too far. In December, an appraiser was arrested after allegedly making death threats against Cuomo in retaliation for the HVCC. The ill-feeling towards Cuomo was evident in the online postings on appraisal forums. One appraiser offered their condolences to the state of New York . Another simply said, “Whoever he runs against, I’m sending a check. “ But any appraisers who are hoping that Cuomo loses the race may be in for disappointment: as well as being the heavy favorite, a poll conducted at the beginning of May showed 64 percent of voters believing that Cuomo was doing either an excellent or a good job. For one appraiser though, the nomination should be seen as a good thing. “Look on the bright side,” they wrote, “He won’t be meddling in the appraisal business anymore.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 01 Jun 2010 00:00:00 EST 4751FB0DBCAC494C91D4245301398309 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=42FC55648AF24132B23B8673ED97F727 The first lineup of the newest board at The Appraisal Foundation was announced May 28. The board member of the newly-created Appraisal Practices Board (APB) will commence work on July 1. The APB was created to give guidance to appraisers, appraiser regulators and educators, on timely and emerging issues in the world of valuation. It will cover all valuation disciplines. In this article: Appraisal Practices Board The Appraisal Foundation David Bunton Alan Hummel The new board will compose of the following: Jay Fishman, a business valuation expert, from Bala Cynwyd , Pa. , for a 30-month term; Guy Griscom , a tax assessment appraiser, from Houston , for a 30-month term; Alan Hummel , senior vice president of Forsythe Appraisals, from North Oaks, Minn. , for a 30-month term; Mark Linne , executive vice president of AppraisalWorld, from Bailey , Colo. ,  for an 18-month term; Alok Mahajan , a business valuation expert , from Mountain View , Calif. , for an 18-month term; Gary Taylor , of Rogers and Taylor Appraisers, from Brooksville , Fla. , for a 30-month term; and Jim Vernor, the retired chairman of the Department of Real Estate at Georgia State University, from Atlanta , for an 18-month term. Taylor will serve as chair of the APB for the next 18 months, with Fishman serving as vice chair for the same duration.   The Appraisal Foundation revealed that more than 125 qualified candidates applied for these positions, representing all valuation disciplines. “We were pleased with the quality and caliber of the applicants and from this pool we were able to compose this team of experts that will lead the APB as it commences its work,” stated David S. Bunton , president of The Appraisal Foundation. In 2009, the Foundation Board of Trustees established a task force to study the issue of how to best address a void in the marketplace related to guidance on appraisal methods and techniques that would be available to all appraisers practicing in the United States . This guidance will cover all valuation disciplines, with a focus on emerging issues. With the unanimous consent of The Appraisal Foundation Board of Trustees, it was agreed that a new board be established, similar in structure and composition to the already existing independent boards, the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB).  The purpose of the ABP is to issue voluntary timely guidance to appraisers on emerging valuation issues that are occurring in the marketplace. This guidance will be of assistance to appraisers, appraiser regulators and educators. The new board will enlist the help of market surveys to identify issues that need to be addressed and will empanel small groups of volunteer subject matter experts to draft the guidance for review and approval by the board.   Any questions relating to the new board can be directed to Staci Steward , APB Administrator. Her e-mail address is staci@appraisalfoundation.org . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 01 Jun 2010 00:00:00 EST 42FC55648AF24132B23B8673ED97F727 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=E40F720D8999496DB2F1A339E8B02E2B The month of April saw a surge in sales of newly built, single-family homes, according to data released by the U.S. Commerce Department’s U.S. Census Bureau. In this article: Home sales Commerce Department Rebecca Blank Bob Jones Sales increased 14.8 percent to a seasonally adjusted annual rate of 504,000 units in April, as consumers rushed to beat the April 31 deadline the federal homebuyer tax credits. This was the strongest level of new-home-buying activity since May 2008. “The rise in new home sales is good news for this important sector of the economy,” said Commerce Department Under-Secretary for Economic Affairs Rebecca Blank . “The growth in sales partially reflects the impact of the homebuyer tax credit. But low mortgage rates, affordable prices and strong job gains have also contributed to the firming of new home sales and should support sales in the coming months.” The Census’s April sales data came in well above the expectations of 425,000 units and a 3.4 percent monthly increase previously reported. New home sales rose 47.8 percent above their April 2008 level. “Clearly the homebuyer tax credit program, which concluded at the end of April, was successful in getting the housing market moving again by helping many families achieve the dream of homeownership,” said Bob Jones , chairman of the National Association of Home Builders (NAHB) and a homebuilder from Bloomfield Hills, Mich. “Now that the program is over, other great buying incentives continue — including exceptionally favorable mortgage rates, very attractive home prices and the steadily improving economy — so there is good reason to expect the positive momentum to continue.” Three out of four regions posted substantial gains in new-home sales in April; the Midwest registered a 31.6 percent gain, the South, a 10.8 percent gain, and the West, a 21.7 percent gain. The Northeast posted no change in sales activity from the previous month. The nationwide inventory of new homes on the market fell 5.8 percent to 212,000 units in April, its slimmest measure since October of 1968. Meanwhile, the month’s supply at the current sales pace declined from 6.2 in March to a modest 5.0 in April, the lowest since November of 2005. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Tue, 01 Jun 2010 00:00:00 EST E40F720D8999496DB2F1A339E8B02E2B http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=F35799DC7FAF4772B4385634C665C7BD Solidifi U.S. , the national appraisal services provider, launched the Solidifi CoverageMAX and Solidifi CoveragePLUS insurance programs for lenders and investors. The new programs are designed to address the weaknesses in previous appraisal insurance coverage concepts. In this article: Solidifi U.S. Solidifi CoverageMAX Solidifi CoveragePLUS Griff Straw Working with A.M. Best ‘A’ (Excellent) rated insurer, Companion Specialty Insurance Group, and Wells Fargo Special Risks, Inc., Solidifi has created two representation and warranty programs that address the risk mitigation concerns of mortgage lenders and their investors. The process starts with an appraisal. Then a coverage level is selected based on the needs of the lender and its investors: Solidifi CoverageMAX protects lenders against loss incurred on foreclosures and most repurchase requests caused by valuation inaccuracies, and is available for virtually all loan types at various levels of LTV, credit score and loan amount. Solidifi CoveragePLUS protects lenders against losses incurred on repurchases and foreclosures similarly, but with some limitations and lower premiums. Both coverages are portable, whereas many other appraisal warranty programs are self-insured or non-transferable to the holders of the security after origination. According to Solidifi, CoverageMAX and CoveragePLUS were designed to reduce the barriers in claiming losses that have made previous insurance programs all but irrelevant. “When you look at the other appraisal insurance concepts out there, you realize that they leave investors with little or no coverage at all,” said Griff Straw , president of Solidifi U.S. “These highly affordable programs have the combined result of protecting lenders from losses caused by faulty appraisals and covering those who buy their loans, too. They provide new levels of confidence in mortgages to the capital markets system, and will help bring greater liquidity to the industry.” Straw argued that the introduction of these two products serves to validate Solidifi’s philosophy of paying full fees to the best appraisers rather than assigning work to the lowest bidder, a consistent sore point for lenders using appraisal management companies to comply with appraiser independence mandates. “Our quality is measurable and quantifiable as demonstrated in recent benchmarks with national appraisal management companies,” he explained. “This is a validation of something we’ve been saying for a long time, that paying the appraiser his full fee creates tangible quality improvements that are recognized by the industry.” The company expects the response to these new programs to be prompt and enthusiastic.   Lenders remain concerned that investors will force them to repurchase loans based on appraisal valuation errors and have been known to result in up to 70 percent losses on transaction values. “These new programs are unique in that they cover repurchase and special claims losses in the event of default,” Straw said. “Having a highly-rated specialty insurance company working with Solidifi to offer these important coverages brings needed credibility and real protection for the mortgage industry.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Thu, 27 May 2010 00:00:00 EST F35799DC7FAF4772B4385634C665C7BD http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=DD607BCBEFBF48C6A61868426CF97B6D Global DMS, the Lansdale , Pa.-based appraisal management software company, released the secondary market edition of its appraisal review system on May 24. The MISMO Appraisal Review System Secondary Market Edition (MARS SME) technology offers investors and asset managers an automatic and fast way to value entire loan pools within a few minutes. In this article: Global DMS MISMO Appraisal Review System Secondary Market Edition (MARS SME) Vladimir Bien-Aime MARS is a plug & play, Web-based, automated appraisal review system that extracts data from PDF appraisal reports, reviews the data, then reassembles that data into XML MISMO format to deliver to Fannie Mae. MARS SME offers many of the same capabilities as the original MARS, but tailored to secondary market investors that work in bulk, rather than by individual loans. MARS SME automates the bulk due diligence process for valuing entire loan pools. “Whether trading whole loans, residential mortgage-backed securities (RMBS) or loan pools, lenders are keenly aware of how important it is to know the property values of what is being traded,” said Vladimir Bien-Aime , CEO of Global DMS. “In order for the secondary market to grow and thrive, investors need loan-level collateral transparency. MARS SME offers a way to provide that level of transparency on a bulk level, all in just a few moments.”   Users of MARS SME can upload thousands of property addresses at one time through a spreadsheet. MARS SME utilizes analytics and data sources to reveal problem areas, compare findings to market benchmarks and even check past values for the forensic appraisal reviews used to combat fraud. The MARS interface can sort valuation results, drill down for details and even order upgraded products — the system’s “bump logic” can be configured to automatically elevate evaluation levels from automated valuation models (AVMs) to more comprehensive reports like broker price opinions, appraiser price opinions, full appraisals, desk reviews or other reconciliation products.  The MARS rules engine is also configurable and can be programmed according to specific investor rules. For example, the system can identify potential issues where values are out of tolerance ranges. “There’s no substitute for transparency when it comes to making smarter investments and protecting assets,” said Bien-Aime. “MARS SME can help prequalify applications, pre-screen pools of loans, and provide comprehensive portfolio valuation analyses. Because MARS SME was created specifically for this level of evaluation, users get the benefit of paying a reduced fee for only the data elements that they need, like estimated market value and confidence scores.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 27 May 2010 00:00:00 EST DD607BCBEFBF48C6A61868426CF97B6D http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=0183D782DA7B40DABA8790C228DFDEE0 Valuation Partners, a Sugar Land, Texas-based national real estate valuations provider,   launched two new valuation services which are designed to provide better alternatives to broker price opinions (BPOs). According to the company, the Micro Market BPO and the RE Value Pro provide much more data than typical BPOs at much the same cost. In this article: Valuation Partners Bill Fall The William Fall Group The Micro Market BPO includes key market indicators such as sales price trends, average days on the market (DOM) and listing inventories, as well as other market factors such as the local level of foreclosure activity and current market conditions. After a real estate broker fills out the form, Valuation Partners populates the document with local market information that is not easily accessible to most brokers including “Micro Market Trends,” or graphs indicating the average sold prices and sales activity as well as average days on the market of sold properties and the proportion of local sales to listings. The Micro Market BPO is available for slightly more than the average price of an BPO. The second new service added by Valuation Partners is the appraiser-assisted RE Value Pro, a more detailed solution which not only contains key market indicators and conditions, as well as “Micro Market Trends,” but also current photos and maps of subject properties. Valuation Partners provides the detailed local market data, and a licensed appraiser reviews the document to ensure its accuracy and to make sure the numbers and comparable listings make sense.  “While broker price opinions are an industry standard, we realize loan servicers and asset management companies occasionally need something more,” said Bill Fall , CEO of Valuation Partners. “You might call our Micro Market BPO and RE Value Pro products ‘turbo-charged’ alternatives to BPOs, perfect for properties that require additional scrutiny, yet still extremely cost-effective. For example, because they are not always accurate, BPOs are sometimes re-ordered for the same property. For a slightly higher price than the typical BPO, these new solutions provide much more data, plus extra confidence that the values are reliable and valid, the first time around.” Valuation Partners LLC provides vendor management, appraisal reviews, collateral assessment, broker price opinions, and appraiser-assisted products to the mortgage industry and is a subsidiary of the William Fall Group. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 27 May 2010 00:00:00 EST 0183D782DA7B40DABA8790C228DFDEE0 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=3C7C9887B4214A84988045813F261914 The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending May 21. The Market Composite Index, a measure of mortgage loan application volume, increased 11.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 10.3 percent compared with the previous week. In this article: Weekly Mortgage Applications Survey The Market Composite Index The Mortgage Bankers Association Michael Fratantoni The Refinance Index increased 17.0 percent from the previous week. This third consecutive increase marks the highest Refinance Index recorded in the survey since October 2009. The seasonally adjusted Purchase Index decreased 3.3 percent from one week earlier and is the lowest Purchase Index observed in the survey since April 1997. The unadjusted Purchase Index decreased 4.0 percent compared with the previous week, was down 27.1 percent over the past 4 weeks, and was 27.5 percent lower than the same week one year ago. “Refinance application volume jumped last week as continuing financial market turmoil related to the budget crises in Europe extended the opportunity for homeowners to lock in at historically low mortgage rates,” said Michael Fratantoni , MBA’s Vice President of Research and Economics. “In contrast, purchase applications fell further this week, following last week’s sharp decline, keeping the purchase index at 13-year lows.”   The four-week moving average for the seasonally adjusted Market Index is up 4.4 percent. The four-week moving average is down 7.2 percent for the seasonally adjusted Purchase Index, while this average is up 11.5 percent for the Refinance Index. The refinance share of mortgage activity increased to 72.2 percent of total applications from 68.1 percent the previous week, which is the highest refinance share observed in the survey since December 2009. The adjustable-rate mortgage (ARM) share of activity decreased to 6.0 percent from 6.3 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.80 percent from 4.83 percent, with points remaining constant at 1.08 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the lowest 30-year fixed-rate recorded in the survey since the week ending November 27, 2009. The effective rate also decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages increased to 4.25 percent from 4.19 percent, with points decreasing to 1.00 from 1.36 (including the origination fee) for 80 percent LTV loans. However, due to the decrease in points, the effective rate decreased from last week. The average contract interest rate for one-year ARMs increased to 6.83 percent from 6.81 percent, with points increasing to 0.38 from 0.37 (including the origination fee) for 80 percent LTV loans. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 27 May 2010 00:00:00 EST 3C7C9887B4214A84988045813F261914 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=5246F73458974D3E8B50C02C78F2F87D The Coester Appraisal Group, a national appraisal management company (AMC) based in Gaithersburg, Md., launched a new pricing program called ValueSafe that enables residential mortgage lenders to “piggy-back” a full appraisal onto a previously ordered desk appraisal, with all original fees paid being credited toward the full appraisal price. The company claims that ValueSafe offers lenders and servicers a “cost-protected way to take the first step in determining whether a full appraisal will be necessary on a given transaction.” In this article: Coester Appraisal Group ValueSafe Brian Coester “Many lenders and servicers recognize desktop appraisals as a reliable, cost-effective alternative to a full traditional appraisal,” said Brian Coester , CEO of Coester Appraisal Group. “The issue arises when a full appraisal is needed on that same subject property, after a desktop appraisal has been completed. Most AMCs would charge the client for the full appraisal on top of fees they’ve already paid, which seems like they’re penalizing their customers for being diligent in their efforts to transact quality loans. At Coester, we believe that any effort to ensure quality should be supported not undermined. That’s why we created the ValueSafe pricing structure.” With ValueSafe, lenders and servicers can order and receive a desktop appraisal report, then decide to upgrade that valuation into a full appraisal, and funds paid for the desktop appraisal are applied toward the full appraisal since much of the research, if still current and appropriate, can be utilized in the final appraisal report. “ValueSafe has been the big rave among our lender beta testers — they couldn’t imagine getting a quick accurate valuation by a local certified appraiser and not having to worry about paying double if they needed a full appraisal,” said Coester. “At Coester, our focus is on bringing value to our clients and the industry. We’re fortunate to have a team of very talented professionals, so thinking outside the box is completely natural for us. While other AMCs are still struggling with the status quo, we’ll continue to introduce innovative solutions. ValueSafe is a prime example of a solution that benefits the lender, borrower and appraisal industry. We’re excited to be helping to rebuild trust for appraisal management companies among the lending community.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 25 May 2010 00:00:00 EST 5246F73458974D3E8B50C02C78F2F87D http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=AAF1E23ECD41429CB978D5FC489E24D9 According to the chief economist of the National Association of Realtors (NAR), the “price correction” in the housing market that caused the economy to falter badly appears to be “essentially over.” The analysis came on the back of the latest existing home sales report, which showed a 7.6 percent rise in April. In this article: National Association of Realtors Lawrence Yun existing home sales Vicki Cox Golder This was in part due to buyers motivated by the tax credit, improving consumer confidence and favorable affordability conditions, according to NAR. Existing-home sales increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March. NAR defines existing-home sales as completed transactions that include single-family, town homes, condominiums and co-ops, Lawrence Yun , NAR chief economist, said the gain signaled that the bottom of the market had been reached. “Although inventory levels remain above normal and much of the gain last month was seasonal, the housing price correction appears essentially over,” he said. “In fact, a majority of the markets have seen price gains recently. A return to old-fashioned responsible lending and buying will help the housing market avoid disruptive and painful bubble-bust cycles.” Yun continued by explaining why the rise was anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market. For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low,” he said. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.10 percent in April from 4.97 percent in March; the rate was 4.91 percent in April 2009. Total housing inventory at the end of April rose 11.5 percent to 4.04 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, up from an 8.1-month supply in March. Raw unsold inventory is 2.7 percent above a year ago, but remains 11.6 percent below the record of 4.58 million in July 2008. The national median existing-home price for all housing types was $173,100 in April, up 4.0 percent from April 2009. Distressed homes accounted for 33 percent of sales last month, compared with 35 percent in March. NAR President Vicki Cox Golder , owner of Vicki L. Cox & Associates in Tucson , Ariz. , said buyer traffic is mixed. “It looks like the level of home sales that close in May and June will stay elevated, but many buyers remain in the market even without the tax credit,” she said. “Some Realtors tell us they are very busy with clients who are entering the market now as a result of improved conditions, while others are welcoming a slowdown from frantic market conditions in recent months. “Buyers are focused on finding the right house and taking advantage of favorable affordability conditions. For many buyers, owning a home is a lifestyle choice. They want a place of their own to raise a family, build memories, and be part of a larger community,” Golder said. A parallel NAR practitioner survey shows first-time buyers purchased 49 percent of homes in April, up from 44 percent in March. Investors accounted for 15 percent of transactions in April, down from 19 percent in March; the remaining sales were to repeat buyers. All-cash sales stood at 26 percent in April; they were 27 percent in March. Single-family home sales rose 7.4 percent to a seasonally adjusted annual rate of 5.05 million in April from a pace of 4.70 million in March, and are 20.5 percent above the 4.19 million level in April 2009. The median existing single-family home price was $173,400 in April, up 4.5 percent from a year ago. Single-family median prices rose in 18 out of 20 metropolitan statistical areas reported in April from a year ago; six of the areas experienced double-digit increases. In data recently reported for the first quarter, 91 out of 152 metros saw price gains. Existing condominium and co-op sales jumped 9.1 percent to a seasonally adjusted annual rate of 720,000 in April from 660,000 in March, and are 42.3 percent above the 506,000-unit pace in April 2009. The median existing condo price was $171,000 in April, which is 0.6 percent below a year ago. Regionally, existing-home sales in the Northeast surged 21.1 percent to an annual level of 1.09 million in April and are 41.6 percent higher than a year ago. The median price in the Northeast was $243,000, up 2.1 percent from April 2009. Existing-home sales in the Midwest rose 9.9 percent in April to a pace of 1.33 million and are 29.1 percent above a year ago. The median price in the Midwest was $146,400, up 5.8 percent from April 2009. In the South, existing-home sales increased 8.6 percent to an annual level of 2.14 million in April and are 23.0 percent higher than April 2009. The median price in the South was $150,000, up 1.2 percent from a year ago. Existing-home sales in the West fell 6.2 percent to an annual rate of 1.21 million in April but are 5.2 percent above a year ago. The median price in the West was $212,400, up 3.8 percent from April 2009. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 25 May 2010 00:00:00 EST AAF1E23ECD41429CB978D5FC489E24D9 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=F7A8ADBAA13443239C837E2B67FF431C BrokerPriceOpinion.com, the Westminster, Colo.-based risk management provider and appraisal management company, partnered with title insurance company American Title to offer warranties on collateral valuations. In this article: BrokerPriceOpinion.com American Title Walt Coats Mike Mackintosh BrokerPriceOpinion.com offers financial data through a range of products and services. The company uses technology coupled with a network of licensed Realtors and appraisers to provide solutions to lending institutions, securities and investment companies. “This partnership with American Title, Inc. combines our correspondent sets of technology and commercial objectives, allowing us to protect financial institutions against an actual financial loss due to a variance in collateral value,” said Walt Coats , CEO of BrokerPriceOpinion.com. “We are excited about the potential this partnership brings and the ability to better meet our customers’ needs as we move forward.” According to American Title, in the past year, it has consistently heard concerns from financial institutions about the quality of the valuation products they use. In response to such concerns, American Title, Inc. created a product that provides coverage for potential losses due to incorrect collateral valuation. “BrokerPriceOpinion.com’s reputation speaks for itself; we are very excited to partner with an expert in the industry to provide financial institutions with the Collateral Valuation Warranty,” said Mike Mackintosh , executive vice president of American Title, Inc. According to a press release issued by the companies, the mutual goal is to improve unbiased residential values backed by an insurance policy in the most cost effective and timely manner.   Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 25 May 2010 00:00:00 EST F7A8ADBAA13443239C837E2B67FF431C http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=F696AB5CC37442BB9E4F4F126628E6A4 Washington, D.C.-based professional appraisal organization The Appraisal Foundation has begun its annual search for qualified candidates to serve on the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB). There are at least two vacancies on each board. Completed applications for these vacancies must be received by Friday, August 13, 2010 .   In this article: The Appraisal Foundation The Appraiser Qualifications Board The Appraisal Standards Board The AQB is responsible for setting minimum qualification criteria for state licensure and certification of real estate appraisers and has established voluntary qualification criteria for personal property appraisers. Familiarity with appraiser qualifications is a pre-requisite of service on the AQB, and a minimum of 10 years of appraisal experience is required. The AQB meets four times per year for approximately 10 days in total. Individuals serving on the AQB are compensated for their time and are reimbursed for travel expenses. The individuals selected for the AQB positions will serve a term of up to three-years commencing Jan. 1, 2011.  The ASB is charged with developing, interpreting and amending the Uniform Standards of Professional Appraisal Practice (USPAP).  Familiarity with USPAP is a pre-requisite of service on the ASB, and a minimum of 10 years of appraisal experience is required. The ASB meets four times per year for approximately 10 days in total. Individuals serving on the ASB are compensated for their time and are reimbursed for travel expenses. The individuals selected for a position on the ASB will serve a term of up to three years commencing Jan. 1, 2011.  Application packets for all positions outlined above are now available online at the Foundation Web site:  www.appraisalfoundation.org (located directly under the AQB or ASB sections). Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Tue, 25 May 2010 00:00:00 EST F696AB5CC37442BB9E4F4F126628E6A4 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=87907774440849B5930CEDDD9AEE9352 Zaio Corporation issued an update on Zone Data Systems LLC (ZDS), which will be the first appraiser-backed valuation database for the U.S. Zaio, which shut down its U.S. operations in October 2008 and now is based in Calgary, Canada, develops and maintains a site-verified database of photos, valuations and property information on virtually every residential property in entire cities, using a proprietary “GeoScore” property rating system. Zaio will now be providing regular updates on Zone Data Systems LLC’s development and delivery of the valuation database. In this article: Zaio Corporation Zone Data Systems LLC Geoscore technology Margaret Lai ZDS announced the completion of its full membership enrollment on April 15, 2010.    The tally stands at 233 partners, who own appraisal businesses in 25 states, operating in 32 of the top 40 Metropolitan Statistical Areas. According to the company, the partners employ over 500 certified appraisers in those markets and provide a full range of traditional appraisal products to the financial community. ZDS was formed in May 2009 to conclude an agreement with Zaio Corporation to develop and deliver the industry’s first appraiser-based valuation database, backed by independent, local appraiser research completed by each of the partners in their various jurisdictions. “To the best of our knowledge,” said the company, “ZDS is the only appraisal organization that requires its members to conduct detailed market value research on homes in advance of the appraisal order.” The U.S.-based appraisal business owners have licensed software rights from Zaio Corporation to build, maintain and deliver the database within their assigned zones. Last week, ZDS released the latest full version of valuation research software for populating the database in each of the partner zones. The company plans to begin delivering the new database driven appraisal service by mid-summer 2010.   ZDS employs Zaio Corporation’s patent-pending Valytics software and the Geoscore technology to organize key data on all properties within a market, attach cardinal rankings to seven key value attributes for each property, and analyze sales data within that market segment to arrive at accurate value estimates for every property in the market.    This analysis is reviewed continually as new sales and listings occur in the market and value estimates are adjusted and balanced as necessary. Valuation database products and services are called Z Products, which will offer online access directly into the database for direct LOS interface, a portfolio viewer web application for tracking the value of every home within any portfolios and standard appraisal reports which can be delivered in both PDF and MISMO format. Margaret Lai , chair of the ZDS Marketing Committee and owner of Abacus Appraisal Services, Inc. in Redmond , Wa., said “Scores of ZDS Partners have been working the past year on various projects necessary to bring these unique appraisal products to market. We are excited that the time is drawing near for full implementation.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 20 May 2010 00:00:00 EST 87907774440849B5930CEDDD9AEE9352 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=BC1EBBDBEE9C4419B9569C58C4DC39F7 eTEC Appraisal Management Solutions, a national provider of appraisal management services based in Phoenix , hired another regional sales manager, in addition to the two sales managers it hired last month. Michael Duda is the eTEC sales manager for the New England area. Duda is the former regional vice president of Citigroup’s wholesale lending channel. In his new role, Michael is responsible for leading the eight-state region for the company and introducing the eTEC AMS efficiency platform for residential lenders in Connecticut, New York, New Jersey, Massachusetts, Rhode Island, New Hampshire, Vermont and Maine. In this article: eTecs AMS Brannon Ogburn Michael Duda Robert Tames Duda, who oversaw wholesale lending operations in Citi’s Milford , Conn. office, held the same position with Principal Residential Mortgage Group, which was purchased by Citigroup in 2004. His background also includes area sales manager VP at Centerbank (First Union) and CitiMortgage for both Connecticut and New York . “We are pleased to announce that Mike Duda has joined our team,” said Brannon Ogburn , president and CEO of eTEC Appraisal Management. “His direct experience with large scale loan production and commitment to improving both business efficiency and quality will be very beneficial to our customers in the New England region.” Duda, a graduate of Southern Connecticut State University, will be based in Trumbull , Conn. This is the third new hire that eTEC has announced in recent weeks. On April 7, Dawn Burton of Charlotte , N.C. became the regional sales manager for eTEC in the North Carolina , South Carolina , along with parts of Virginia , Tennessee and Georgia markets. On May 3, the company announced that Robert Tames signed on as Area Sales Manager for the Southwest region, including Arizona , Nevada , Southern California, New Mexico and Colorado . eTEC AMS rolled out its proprietary ARC process last year, a   “One and Done” program, combining technology-based efficiencies for a ppraisal management with qualified eyes-on review for underwriting analysis. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 20 May 2010 00:00:00 EST BC1EBBDBEE9C4419B9569C58C4DC39F7 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=FD4FEBF944664FAE8445CF0AAF4D4449 At the PMC Predictive Methods conference in Dana Point, Calif., Interthinx Inc., a Verisk Analytics subsidiary and a national provider of risk mitigation and regulatory compliance tools , released its new automated collateral risk solution, ValueGUARD. In this article: Interthinx ValueGUARD Mark Chapin Kevin Coop The program, designed for lenders and investors, identifies the potential risk associated with the current value of a property as well as the potential risk of future value deterioration by leveraging analytics and automated valuation models (AVMs). According to the company, comprehensive sales/listing data, which goes beyond the typical lagging indicators provided by comparable sales, is provided to support and validate ValueGUARD results. Users of ValueGUARD have the option of integrating iAVM Plus, Interthinx’s proprietary AVM. Along with analytics, the program provides an “alert-based and transparent scoring” process. “Based on history and a meltdown none of us will forget, it’s important for lenders and investors to reevaluate current collateral risk mitigation processes and embrace innovation,” said Mark Chapin , chief valuation officer for Interthinx. “ValueGUARD considers risk associated with the subject, neighborhood, and market — not just a single value. Only ValueGUARD incorporates MLS data, offers retrospective capabilities, and provides a transparent scoring model. With these exciting developments, the industry no longer needs to accept antiquated collateral risk tools.” “ValueGUARD transforms the collateral risk market,” added Kevin Coop , president of Interthinx. “We are expanding our expertise in collateral risk mitigation by offering a critical solution with valuable data and intelligent design. I look forward to the market’s reception, as early feedback indicates the product addresses a growing need for more accurate collateral risk analysis using both historical and current market conditions.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 20 May 2010 00:00:00 EST FD4FEBF944664FAE8445CF0AAF4D4449 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=407096407B484C468A05390C023DDB56 Mortgage purchase applications dropped dramatically this past week while refinance applications posted a steady increase, according to the Weekly Mortgage Applications Survey for the week ending May 14, 2010 from the Mortgage Bankers Association (MBA).  In this article: Weekly Mortgage Applications Survey Mortgage Bankers Association Market Composite Index Michael Fratantoni The Market Composite Index, a measure of mortgage loan application volume, decreased 1.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3.1 percent compared with the previous week. The Refinance Index increased 14.5 percent from the previous week and the seasonally adjusted Purchase Index decreased 27.1 percent from one week earlier. This is the lowest Purchase Index observed in the survey since May of 1997. The unadjusted Purchase Index decreased 27.0 percent compared with the previous week and was 24.1 percent lower than the same week one year ago. “Purchase applications plummeted 27 percent last week and have declined almost 20 percent over the past month, despite relatively low interest rates. The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and at 4.83 percent are at their lowest level since November 2009,” said Michael Fratantoni , MBA’s vice president of Research and Economics.  “However, refinance borrowers did react to these lower rates, with refi applications up almost 15 percent, hitting their highest level in nine weeks.”   The four-week moving average for the seasonally adjusted Market Index is up 0.8 percent. The four-week moving average is down 4.6 percent for the seasonally adjusted Purchase Index, while this average is up 4.5 percent for the Refinance Index. The refinance share of mortgage activity increased to 68.1 percent of total applications from 57.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained constant at 6.3 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.83 percent from 4.96 percent , with points increasing to 1.08 from 0.91 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.19 percent from 4.32 percent , with points increasing to 1.36 from 0.81 (including the origination fee) for 80 percent LTV loans. This is the lowest 15-year contract interest rate ever recorded in the survey. However, due to the increase in points, the effective rate was essentially unchanged from last week. The average contract interest rate for one-year ARMs decreased to 6.81 percent from 6.86 percent , with points increasing to 0.37 from 0.35 (including the origination fee) for 80 percent LTV loans. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 20 May 2010 00:00:00 EST 407096407B484C468A05390C023DDB56 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=845DC3149D00436FADE8819E0E7215E8 New home construction jumped 40.9 percent in April compared to last year, according to a report from The Commerce Department’s U.S. Census Bureau . Housing starts increased to a seasonally-adjusted annual rate of 672,000 last month, the Commerce Department said. That was a 5.8 percent increase over March 2010. Permits for new housing units fell 11.5 percent in April, however permits have grown 15.9 percent over the last 12 months.   April was the last month that first-time homebuyers could qualify for a federal tax credit of up to $8,000. Earlier this year, lawmakers extended the deadline through April 30 and added a new credit of up to $6,500 for some existing home owners who move. “Monthly housing data is quite volatile, but housing permits and starts have risen substantially over the past year,” U.S. Commerce Secretary Gary Locke said. “Employment has begun to increase, and further economic growth should help sustain home-building activity in the coming months.” Builder confidence in the market for newly built, single-family homes rose for a second consecutive month in May to its highest level in more than two years, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released May 17. The HMI gained three points to 22 in May, its highest point since August of 2007.   “Builders surveyed for the HMI at the beginning of May were undoubtedly reacting to the heightened consumer interest they had just witnessed as the deadline for home buyer tax credits arrived at the end of April,” said Bob Jones , chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “Builders are also hopeful that the solid momentum that the tax credits initiated will continue even now that those incentives are gone.”   NAHB Chief Economist David Crowe noted the gains with optimism. “The really encouraging part of today’s HMI is that sales expectations for the next six months continued to gain, despite the expiration of the home buyer tax credits at the end of April,” he said. “This means builders are more comfortable that the market is truly beginning to recover, and that positive factors for buying a new home – low interest rates, great selection, stabilizing prices and a recovering job market – are taking the place of  tax incentives to generate buyer demand.”  Tue, 18 May 2010 00:00:00 EST 845DC3149D00436FADE8819E0E7215E8 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=8852A67CCCAD471498F718EC186A4D8F Joel W. Norwood , president of Wilkins Norwood Appraisal Associates Inc. in Greenville , S.C. , was appointed to the South Carolina Real Estate Appraisers Board. The appointment was confirmed on March 3 during the 118th session of the South Carolina General Assembly. Under the administration of the Department of Labor, Licensing and Regulation, the purpose of the South Carolina Real Estate Appraisers Board is to regulate the real estate appraisal industry so as to protect the public's interest regarding real estate appraisal transactions.   Norwood , a senior consultant, real estate appraiser and broker, follows in the footsteps of his father, Wilkins Norwood , who was an appraisal pioneer and the first MAI appraiser in the upstate region of South Carolina . Norwood ’s focus includes commercial and industrial property appraisals, as well as land and residential appraisals. His experience includes valuations used for mortgage underwriting, eminent domain for federal, state and local bodies, tax appeals, estate/probate matters, divorce, easements and right of ways.   “The appointment of Joel Norwood to the South Carolina Real Estate Appraisers Board is good for the State of South Carolina and for the real estate industry. Joel brings exceptional industry experience, a unique legal perspective and a high level of integrity to the appraisal profession,” said C. Dan Joyner , president of Prudential C. Dan Joyner Co. Realtors, reportedly the state’s largest Prudential affiliate.   Norwood is the only designated MAI appraiser licensed as an attorney in the state of South Carolina . He received his Juris Doctor from the University of South Carolina School of Law in 1991, a Bachelor of Arts Degree from Duke University in 1987 and studied abroad at Oxford University , New College in 1987.   Norwood will serve for two years commencing May 31. Tue, 18 May 2010 00:00:00 EST 8852A67CCCAD471498F718EC186A4D8F http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=144261281B9B49AC9533089B61DB4098 In order to regain investors' trust, America must end the "wild west" attitude that has plagued its real estate financing, said Appraisal Institute President Leslie Sellers . He spoke before a Congressional subcommittee on May 12.   "Based on my discussions with government officials, investors and borrowers throughout the world, there is a striking concern that we conduct real estate financing with a 'wild west' attitude," Sellers said. "The United States has lost credibility as the financial leader of the world. Clearly, if we are going to retain and attract new investment, we must earn back the trust of investors."   Sellers made his remarks at a field hearing of the U.S. House Financial Services Committee's Subcommittee on Oversight and Investigations at the Dirksen U.S. Courthouse. The hearing's topic was "Commercial Real Estate: A Chicago Perspective on Current Market Challenges and Possible Responses."   "We firmly believe that competent collateral risk assessment must be resurrected and enforced," Sellers said, adding that real estate appraisers stand prepared to play a key role. "As we look to win back the confidence of investors worldwide, we believe enhanced collateral risk assessment is one of the building blocks necessary to chart this path."   In his remarks to the subcommittee, Sellers made four specific recommendations: 1. To help with CRE workouts, lenders should engage competent appraisers to provide multi-value appraisals, providing as-is market value, liquidation value and fair value. These represent the most likely, most pessimistic and most optimistic measurements of collateral risk.     2. Financial institutions should engage independent valuation experts in the periodic monitoring of CRE assets much like pension funds and institutional investors are required to do now.   3. There is a need to strengthen the Interagency Appraisal and Evaluation Guidelines to demand competency, quality and accountability.   4. There is a need to strengthen the institutional capacity of collateral risk within financial institutions and the bank regulatory agencies for better oversight and enforcement."   Generally, Sellers said, lenders should rely not on credit risk alone but also must account for collateral risk. He further noted that the quality and competency of real estate appraisals should be promoted over speed and volume, and that there should be consistent and enforceable lending regulations and guidelines. He added that risk management should be elevated so that it is on par with loan production. Tue, 18 May 2010 00:00:00 EST 144261281B9B49AC9533089B61DB4098 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=430AF0F6CEB94D0E9344F33C524658CC The founder of the now-defunct appraisal software firm Appraisal.com has died in a plane crash. Mark Yellen , who was 41 years old, was killed May 10 in a plane crash at the Tuscaloosa Regional Airport in Tennessee . In this article: Appraisal.com Mark Yellen Zaio Corp. The Buffalo News Both Yellen and his passenger, Dr. Paula Moffett , were killed when their 2005 Cirrus SR22 crashed at the airport just before 7:30 p.m. The reason for the crash was unclear, as the skies were clear at the time with light winds, according to the National Weather Service. Yellen had been a licensed pilot for at least 10 years, family members said. “We really don't know anything more than what’s been online [in the news reports],” Sheldon Yellen , Mark’s brother, told The Buffalo News . “Everybody is very upset by it.” Yellen co-founded Appraisal.com in 1997. The Internet-based infrastructure for appraisers and appraisal users survived the dot.com boom and grew into a multi-million dollar company with offices in Buffalo and India before it collapsed due to the mortgage crisis. In 2007, Yellen was asked to leave the company. In February 2008, the company was shut down, with its assets and rights snapped up by Zaio Corp. Before his death, Yellen was working as a business consultant and developed real estate in Third World countries. Precision Real Estate, a development and investment company based in the Dominican Republic , was a micro-loan and underwriting program for low-income families, according to his Web site, though it is believed he also developed high-end beachfront villas. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 13 May 2010 00:00:00 EST 430AF0F6CEB94D0E9344F33C524658CC http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=AAC2567C3FF34461AC451DFE8D37CFE4 Lakefront lots sell at higher premiums than lake view lots, which sell for more than lots with golf course views, according to the first academic study to explicitly model different golf course, lake, mountain and lakefront views. The study appears in the spring issue of The Appraisal Journal . “ The Million Dollar View ,” by David Wyman and Stephen Sperry, investigates the pricing of golf course-, lake- and mountain-view lots. The authors used GIS analysis of a development in Sunset, S.C., and found that price premiums ranged from 124 percent to 287 percent for lakefront lots, from 94 percent to 133 percent for lake view lots and from 42 percent to 85 percent for lots with golf course views. The authors also found that even after the housing bubble burst, lakefront lots continued to sell and in fact sold at increasing prices. In this article: The Appraisal Journal The Million Dollar View David Wyman Stephen Sperry “The slope of a lot, length of shoreline and proximity to the lakeside village were also found to be statistically significant variables influencing the value of the property,” the authors found. “The research focuses on The Reserve at Lake Keowee ... in (northwestern) South Carolina , a 3,900-acre lakeside golf course community development with approximately 600 lots sold between January 2000 and December 2008 at a total price of close to $200 million.” The golf course was designed by Jack Nicklaus Wyman is a doctoral student at the University of Aberdeen in Scotland and a lecturer with the Arthur M. Spiro Institute for Entrepreneurial Leadership at Clemson University . Sperry is an assistant professor in the Department of Planning and Landscape Architecture at Clemson University and has extensive background with ESRI and the application of geospatial analysis. The Appraisal Journal is the quarterly technical and academic publication of the Appraisal Institute. The materials presented in the publication represent the opinions and views of the authors and not necessarily those of the Appraisal Institute. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 13 May 2010 00:00:00 EST AAC2567C3FF34461AC451DFE8D37CFE4 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=85530CA73F1341B9ACEB350EFA6744F2 Spokane, Wash.-based mortgage technology provider SharperLending LLC, a provider of appraisal and settlement services technology solutions, expanded its Appraisal Firewall technology product to offer automated appraisal reviews through a partnership with MDA Lending Solutions and ValuationLogic. In this article: SharperLending LLC MDA Lending Solutions ValuationLogic Dave Black Lenders can now run each appraisal through a rule set that performs a detailed check for errors and takes a matter of seconds to complete. According to the company, this will help lenders make faster underwriting decisions and increase loan production. Appraisal Firewall is valuation technology that enables lenders to keep working with their local appraisers, while staying at the same time Federal Housing Administration (FHA) and Home Valuation Code of Conduct (HVCC) compliant. Rather than offering manual appraisal reviews, SharperLending and MDA Lending Solutions have partnered to incorporate ValuationLogic’s patented review tool, CollateralLogic, into the Appraisal Firewall workflow. “Delivering CollateralLogic through SharperLending’s Appraisal Firewall platform automates work that an underwriter does manually today,” said Mike Dealy , President of MDA Lending Solutions, a provider of advanced information solutions to the real estate lending industry. “This technology accelerates the identification of potential risks, enabling lenders to consistently make more informed decisions and improve the quality of their underwriting process.” The partnership between MDA Lending Solutions and SharperLending reflects an increased focus on the use of technology in the mortgage marketplace for managing appraisal workflow. “Lenders realize they can continue to work with their trusted local appraisers and use AMCs for their out of areas needs all through one system — Appraisal Firewall,” said Dave Black , president and CEO of SharperLending. “Partnering with first-class technology providers like MDA Lending Solutions and ValuationLogic gives lenders the specific services they need to protect their business while continuing to work with their local relationships. Utilizing technology keeps lender costs down, lessens the impact of new appraisal regulations, and keeps lenders compliant with HVCC and FHA.” The integration of the CollateralLogic automated appraisal system provides a completeness check at the time of report submission rather than queuing the appraisal up for manual review. Catching minor issues at the time of submission accelerates the review process and saves all parties time and money in curing report issues. “Partnering with MDA Lending Solutions and SharperLending to integrate our automated review product with their Appraisal Firewall technology just made sense,” said Robert Palmer , president and CEO of ValuationLogic. “Each organization offers its own unique flavor of valuation technology from which lenders of all sizes can benefit. The integration will save lenders a lot of work and save underwriters time in resolving potential issues. We plan to move beyond automated reviews and expand our technology partnership to other products that bring lenders value. Advances in technology coupled with the critical need to thoroughly scrutinize appraisals and collateral are achieved through this partnership.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 13 May 2010 00:00:00 EST 85530CA73F1341B9ACEB350EFA6744F2 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=5A5D26E06E474D91BC8C655372840BBA Metro-West Appraisal Co. LLC, a Northville, Mich.-based appraisal services firm, announced ambitious plans for the second quarter. The company is planning to open branch offices in multiple locations across seven states, as well as hiring new appraisers for the company to work at these offices. In this article: Metro-West Appraisal Co. LLC Don Rousseau Kelly McClain “We’re expanding once again,” said Kelly McClain , vice president of Client Relations. “We are currently opening new branches and seeking experienced professionals to join our team. Metro-West Appraisal is one of the largest staff residential real estate appraisal companies in the nation. For more than 23 years we have provided superior residential real estate appraisal reports. ” The company will open new offices during the second quarter of 2010 in the following locations: Hartford , Conn. ; New Jersey ; Akron , Cleveland and Columbus , Ohio ; Portland , Ore. ; Philadelphia; Austin, Dallas, Fort Worth, Houston, Lubbock and San Antonio, Texas; and Richmond and Virginia Beach, Va. Don Rousseau , CEO of Metro-West Appraisal, said, “We think it’s a great time to expand our staff model into these states as several lenders have approached us needing various appraisal products in these markets. Our staff model gives us better control over our quality and timeliness. In addition, we can narrow the individual appraiser’s service area down to meet with our lenders’ geographical competency requirements by concentrating our service areas in highly populated major metropolitan areas.” In addition to the expansion, Metro-West is looking to add appraisers in the areas marked for new offices. McClain advised appraisers who are interested to send resumes to careers@metrowestappr.com . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Thu, 13 May 2010 00:00:00 EST 5A5D26E06E474D91BC8C655372840BBA http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=FEDCD386D59F424F8343C4E30E780E6A Real estate data sharing on multiple listing services is set to improve, with the Real Estate Standards Organization’s approval of real estate property standard names. The standard names were introduced by the MLS Cooperative Venture (COVE) in March during RESO’s General Assembly conference. In this article: MLS Cooperative Venture Mark Lesswing Pat Bybee Real Estate Standards Organization RESO oversees the National Association of Realtors-supported Real Estate Transaction Standard, which defined an approach for exchanging listings with multiple listing services. “NAR applauds COVE for its contributions that make data standards stronger,” said Mark Lesswing , NAR senior vice president and chief technology officer. “Accurate, efficient data sharing is crucial to the real estate business, and COVE’s initiative will better position the real estate industry into the future.” The upcoming release of version 1.8 of RETS will include the approved standard names, which will benefit Realtors, MLS operators, and the vendors who supply MLS technology. Standard names simplify the installation and operation of data feeds. MLS technology vendors will also now be able to use a common vocabulary with the addition of standard names. “RESO has listened and responded to our industry stakeholders by voting to approve an updated list of standard names that are in use with over 20 of the largest multiple listing services in the country,” said Pat Bybee , chair of RESO and president/CEO of Metrolist MLS. “We feel this is one more positive step toward standardization that will ultimately move the industry forward.” RETS defines an approach for exchanging listings and provides a common language spoken by systems such as MLSs. RESO is an open standards community of real estate practitioners and technology vendors who volunteer their time and expertise to enhance the real estate transaction process with data standards. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 11 May 2010 00:00:00 EST FEDCD386D59F424F8343C4E30E780E6A http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=A6ABBDFE342B4DB4B8EC3E698AD5ADA3 First Lenders Data Inc. (FLDI), an Austin, Texas-based provider of the FirstClose online dashboard of mortgage closing services and vendor management solutions, has added Oregon Community Credit Union, the third largest credit union in Oregon , to its list of customers. In this article: First Lenders Data Inc. Oregon Community Credit Union Corey Smith FirstClose Oregon Community Credit Union will be utilizing the APPRO loan origination system to access FirstClose vendors in order to obtain flood zone determinations, automated valuation models (AVMs), gap valuations and title reports. “Our staff loves FirstClose and the efficiency gained in our loan origination process. We are very happy with the integration to APPRO and the service provided by FLDI,” said Ethan Nelson , lending services manager, Oregon Community Credit Union. In 2009, FLDI announced its strategic alliance with APPRO Systems, an Equifax company based in Baton Rouge , La. The alliance was formed to provide APPRO customers the ability to order multiple mortgage settlement services through APPRO’s loan origination system. FirstClose also provides access to its stable of nationally recognized vendors through a proprietary online dashboard. “We save lenders money by leveraging the buying power of over 350 lenders currently using our system,” said Corey Smith , FLDI’s director of business development. “This ‘buying power’ enables us to obtain volume discounts, which we pass onto lenders through decreased settlement fees and closing costs. Not only will lenders enjoy these direct hard-cost savings, but also benefit from soft-cost savings with increased efficiency, streamlined vendor management and invoicing consolidation.” FirstClose offers customers a variety of nationwide mortgage settlement service options, including credit reports; flood certifications; AVMs; appraisals, including full, desktop and drive-by appraisals; BPO’s; title reports; title insurance; title searches; owners and encumbrance reports; closing and recording services; doc prep; and more, in one online central dashboard. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 11 May 2010 00:00:00 EST A6ABBDFE342B4DB4B8EC3E698AD5ADA3 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=982C2DBE6C774D42A8C455AE8C4CBC9D The historically slow recovery of the economy and lack of substantial job growth could cause negative, lasting effects on the current young generation and force many retirement-age individuals to remain in the workforce, according to a study released by the Mortgage Bankers Association (MBA). In this article: Household Reaction to the Financial Crisis: Scared or Scarred? Mortgage Bankers Association Joe Peek Michael Fratantoni The impact of a higher unemployment rate for Americans ages 16 to 24 could have a lasting effect on lifetime earnings and attitudes toward risk and social policies. In addition, those nearing retirement are delaying retirement and reentering the labor force in an effort to rebuild some of the retirement wealth that was wiped out by the recession. The study titled “Household Reaction to the Financial Crisis: Scared or Scarred?,” which was conducted by professor Joe Peek , Gatton Endowed Chair in International Banking and Financial Economics at the University of Kentucky and sponsored by the Research Institute for Housing America (RIHA), analyzes how Americans will respond to the current crisis in terms of consumer spending, saving rates, credit supply and implications for the strength of the economic recovery. “While Americans, and the American economy, are noted for their resilience, the current financial crisis and recession exceeded the devastation created by other post-World War II recessions,” Peek said. “Saving rates have risen substantially and many Americans will continue to cut their spending sharply out of necessity, others out of fear of what the future holds. Since consumer expenditures account for about two-thirds of GDP, we are facing the ‘paradox of thrift’ as households try to rebuild their net worth, with the reduced spending likely to delay and weaken the recovery from the Great Recession. “On the housing front, it is unlikely that the dramatic rise in loan delinquencies, home foreclosures and bankruptcies will show a meaningful decrease, as high unemployment and low house prices are widely projected to remain for an extended period, as well as the rise in problem loans at banks that will restrain their willingness and ability to provide credit,” he continued.   Peek continued, “Unfortunately, we face the possibility of being caught in a vicious circle. The cutbacks in consumer and business spending are likely to contribute to a more anemic recovery. In turn, we will likely see a deepened and prolonged weakness in consumer and business spending, further undermining the recovery. The longer the malaise in economic activity continues, the more likely that diminished spending persists, adversely affecting future economic growth and the standard of living. Such headwinds to a strong economic recovery are likely to have lasting impacts on the values and behavior of the current generation, much as the Great Depression had on its generation.” Michael Fratantoni , MBA’s vice president of research and economics added, “The severity and duration of the most recent downturn far exceeds what we have experienced in past recessions and has resulted in the disruption of millions of lives. We can’t know for certain at this point, but it is more than reasonable to prepare for a world that has been irrevocably changed by this experience. For the many reasons discussed in this study, we should expect hesitant homebuyers, cautious businesses and conservative lenders in the years ahead.” Key findings from the study include: • For U.S. data, most estimates of the wealth effect (propensity to consume out of total household wealth) are in the range of 3 to 8 cents of an additional dollar of wealth. This wealth effect is now operating in reverse, with losses in housing and other wealth resulting in reduced consumer spending.  • The downtrend in the personal saving rate over the past 20 years has been reversed.  The saving rate rebound is likely related to the large capital losses on household assets, as well as a precautionary motive in response to increased uncertainty. • Underemployment is much higher than the reported unemployment rate, and the persistence of spells of unemployment are lengthening. Many are delaying retirement in an effort to rebuild retirement nest eggs. Firms are shifting from permanent employees with benefits to part-time, temporary and independent contract employees. • People entering the labor force during recessions have lower lifetime incomes. Those unable to find work today are going to be competing with a new crop of graduates in a few months for a still limited set of job openings. Without a reasonably rapid recovery in employment, at this point an unlikely scenario, we risk creating a “lost generation” that may never catch up.  • Credit supply as well as credit demand have been impacted by the financial crisis, as well as by government programs to support financial markets and the housing sector.  Banks remain in weak financial health, and thus are unlikely to increase credit supply by a substantial amount in the near term. Many households will emerge from this crisis with severely damaged credit ratings, hindering their ability to access credit for years to come. • Credit underwriting and pricing models developed with data from years prior to this crisis were heavily influenced by our experience with moderate macroeconomic volatility; this downturn will likely play an outsized role in credit decisions over the intermediate term. To obtain a copy of the full report, visit the RIHA website at  www.housingamerica.org . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 11 May 2010 00:00:00 EST 982C2DBE6C774D42A8C455AE8C4CBC9D http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=6DAB800C8A9A4CD3A323467C9A70C023 Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home-buying season, according to the National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009, when it was 85; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months. In this article: Pending home sales Lawrence Yun National Association of Realtors Lawrence Yun , NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the homebuyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.” The PHSI in the Northeast declined 3.3 percent to 75.1 in March but remains 27.2 percent higher than March 2009. In the Midwest , the index increased 1.2 percent to 98.9 and is 18.5 percent above a year ago. Pending home sales in the South jumped 12.7 percent to an index of 121.2, which is 28.3 percent higher than March 2009. In the West, the index rose 1.9 percent to 99.9 and is 8.8 percent above a year ago. “Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages,” Yun said. “As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.” The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 11 May 2010 00:00:00 EST 6DAB800C8A9A4CD3A323467C9A70C023 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=DEF321C5600D4395B71CAF2FC73D29A2 The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending April 30, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 4.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 5.1 percent compared with the previous week. In this article: Weekly Mortgage Applications Survey Mortgage Bankers Association Michael Fratantoni Purchase Index The Refinance Index decreased 2.1 percent from the previous week and the seasonally adjusted Purchase Index increased 13.0 percent from one week earlier. This is the third consecutive weekly increase in purchase applications and the highest Purchase Index recorded in the survey since the week ending October 2, 2009. The Conventional Purchase Index increased 9.4 percent from the previous week while the Government Purchase Index increased 16.7 percent. The unadjusted Purchase Index increased 14.1 percent compared with the previous week and was 10.3 percent higher than the same period one year ago. “Purchase application activity continued to increase in the last week of the homebuyer tax credit program,” said Michael Fratantoni , MBA’s vice president of research and economics. “Purchase applications were up 13 percent over the previous week and almost 24 percent over the last month, driven by significant increases in both conventional and government purchase applications. We also saw the government share of applications for purchasing a home increase to over 50 percent of all purchase applications last week, which is the highest in two decades.”   The four week moving average for the seasonally adjusted Market Index is up 0.9 percent. The four week moving average is up 5.0 percent for the seasonally adjusted Purchase Index, while this average is down 1.5 percent for the Refinance Index. The refinance share of mortgage activity decreased to 51.9 percent of total applications from 55.7 percent the previous week. This is the lowest refinance share observed in the survey since the week ending July 3, 2009. The adjustable-rate mortgage (ARM) share of activity increased to 6.3 percent from 6.0 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.02 percent from 5.08 percent , with points increasing to 0.92 from 0.91 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate decreased five basis points from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.34 percent from 4.38 percent , with points decreasing to 0.80 from 0.93 (including the origination fee) for 80 percent LTV loans. The effective rate decreased six basis points from last week. The average contract interest rate for one-year ARMs remained unchanged at 7.03 percent , with points decreasing to 0.28 from 0.30 (including the origination fee) for 80 percent LTV loans. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 06 May 2010 00:00:00 EST DEF321C5600D4395B71CAF2FC73D29A2 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=12D921FED564445E8ADDA0157EAF16BF A licensed appraiser in Georgia was sentenced to two years and nine months in federal prison for participating in a mortgage fraud scheme. Walter Julius Hermann , of Dunwoody , Ga. , was found guilty of bank fraud involving real estate appraisals he submitted to Edward William Farley , a former mortgage broker. Farley w as sentenced to serve 25 years in federal prison on charges of bank fraud and conspiracy involving mortgage fraud, a real estate investment Ponzi scheme with over a hundred victims, a check-kiting scheme and bankruptcy fraud. In this article: Mortgage fraud Walter Julius Hermann Edward William Farley According to the charges and other information presented in court, Farley schemed to defraud mortgage lenders with same-day “flips” of properties through his companies Creative Home Search, Southern Land Partners and Georgia Land Group. Farley paid  Hermann to fraudulently inflate the value of each property by $50,000 to $100,000, and recruited often unqualified investor/borrowers to purchase them from one of his companies. The loan applications of these investor/borrowers were often supported by false income, employment, bank deposits, bank statements, W2’s and/or leases. But Farley did not purchase the properties he was selling to the investors/borrowers until after the fraudulently obtained loan proceeds on the “second,” “subsequent” purchase had been disbursed. During the “first” purchase, he purchased the properties for up to $100,000 less than the amount of the inflated mortgage loans he had arranged for the investor/borrowers in the “second” purchase. Lenders lost millions of dollars in this flip scheme. Hermann  was sentenced to 2 years, 9 months in prison to be followed by 5 years of supervised release, and ordered to pay restitution of $2,023,077. Hermann was also prohibited from requesting reinstatement of his appraiser’s license during his prison sentence or during his supervised release. Hermann pleaded guilty to this charge on December 16, 2009. There is no parole in the federal system. Farley was sentenced to 25 years in prison to be followed by 5 years of supervised release, and ordered to pay restitution of $24,131,857. Farley pleaded guilty to these charges on November 5, 2009. In a separate Ponzi scheme, Farley created another company called Alliance Resource Management (ARM). He falsely represented that the company was in the business of purchasing primarily residential properties which were being renovated and sold at a profit, when in reality it had insufficient equity and income to do so. Real estate investors and lenders, including private investors, corporate lenders, and banks were induced to participate through Farley’s false promises that their investments and loans were fully secured by a first security position in property, plus a personal guarantee, and sometimes title insurance. Farley also provided promissory notes falsely promising those ARM lenders an interest rate between 14 percent to 60 percent. The same property was used to secure multiple investors and lenders, causing losses in excess of $20 million. Farley also fraudulently obtained $1.2 million from Washington Mutual Bank in a check kiting scheme by transferring funds he did not have among several ARM bank accounts, and withdrawing scheme proceeds before the insufficient funds checks were returned. He then used $400,000 in investor funds solicited for property refinance loans to address his check-kiting problem. The evidence also showed that Farley diverted assets of ARM to himself after a bankruptcy petition was filed, and concealed that diversion from the United States Bankruptcy Court and ARM creditors. Brian Lamkin , special agent in charge, Federal Bureau of Investigation in Atlanta, said, “ While justice is served in the sentencing of Mr. Farley and his associates to federal prison, over a hundred victims suffering large monetary losses remain. The mortgage fraud scheme run by Mr. Farley relied on others to pull off the scam, but he relied on the complete and ill-placed trust of the victims in an aggressive real estate Ponzi scheme offering investors high rates of returns. The FBI is pleased in the role that it played in removing from society these few individuals that preyed on so many.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 06 May 2010 00:00:00 EST 12D921FED564445E8ADDA0157EAF16BF http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=7CFDE9EC731542A4BB52FAA81BBADD48 On May 5, the Federal Housing Administration (FHA) released Mortgagee Letter 10-17, aimed at all FHA Roster Appraisers. The letter updates the appraisal reporting requirements for lead-based paint in REO properties belonging to the Department of Housing and Urban Development (HUD). In this article: Mortgagee Letter 10-17 Department of Housing and Urban Development FHA Roster Appraisers lead-based paint reporting requirements The letter amends Handbook 4150.2, Valuation Analysis for Home Mortgage Insurance for Single Family One-to-Four Unit Dwellings, Appendix A and affects how appraisers disclose defective paint in their reports. The update is effective on all appraisals performed on HUD’s REO properties with an effective date on or after June 1, 2010. According to the letter, HUD will only order a lead-based paint evaluation for HUD REO properties constructed before 1978, and purchased with FHA-insured financing. The update removes the language that was previously in Appendix A, Section A-3, bullet two, and replaces it with the following: “If the appraiser observes defective paint in a home that was built before 1978, in the physical deficiencies or adverse conditions section of the appraisal report, the appraiser must enter an “X” in the “Yes” box, and note all areas affected. However, if the appraiser does not observe defective paint in a home that was built before 1978, an explanation is not required in the physical deficiencies or adverse conditions section of the appraisal report.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 06 May 2010 00:00:00 EST 7CFDE9EC731542A4BB52FAA81BBADD48 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=E14B188F6D7F4FEFA31CA038A4BA7913 Corporations are becoming increasingly strategic in managing their workforce mobility programs, using innovative measures to keep employees mobile despite a challenging economy, according to a new survey from Weichert Relocation Resources Inc. (WRRI), a Morris Plains , N.J.-based relocation and assignment management company. In this article: Weichert Relocation Resources Inc. Mobility and the Current Real Estate Market Ellie Sullivan Now in its fourth year, WRRI’s Mobility and the Current Real Estate Market survey is a guide to corporate relocation trends and best practices. Results of the 2010 edition capture input from close to 200 relocation and HR professionals responsible for over 26,000 annual moves, and reveal that companies are updating their relocation policies with greater regularity to overcome mounting obstacles to employee mobility —particularly employees who can’t afford to sell their homes or have difficulty securing mortgages. Ninety percent of the organizations surveyed made changes to their policies within the past year. “Our survey results show a continuing shift in attitude regarding relocation policies,” said Ellie Sullivan , WRRI’s director of consulting. “Six to ten years ago, policies were implemented and then remained virtually untouched because there was little reason to adjust them, since markets were stable and employees were typically ready and willing to move. Today, there are more challenges to contend with, including a recession, the velocity of business change, shifting workforce demographics and depreciating home values.” Among the strategies being used to help employees overcome real estate-related difficulties, 75 percent of respondents provide alternatives to traditional homeowner benefits, either formally or on a case-by-case basis. Some of these include offering delayed home sale benefits or delayed home purchase or allowing homeowners to become renters. Additionally, 33 percent added or increased loss-on-sale assistance, with the most common maximum dollar cap rising to $50,000. “The fact that the vast majority of our survey respondents changed their policies over the past year to control costs and motivate employees indicates that despite the current economic picture, companies still realize the importance of maintaining a mobile workforce,” Sullivan said. The study also found that pre-decision programs — seen as an emerging trend in WRRI’s 2008 survey — are gaining in popularity, with 65 percent of companies currently offering pre-decision and 11 percent planning to offer it this year. This shows a more proactive approach on the part of companies, as pre-decision programs can help gauge the probable success of relocation before any significant financial investment is made. Other findings of WRRI’s survey included:   Companies are wresting greater control of the home sale and marketing processes to minimize costs and avoid inventory. Seventy-one percent of respondents enforce list price guidelines for employees, with the most common guideline, implemented by 65 percent of respondents, restricting employees from listing at more than 105 percent of the appraised value or broker’s price opinion. The study also found that 70 percent of respondents require employees to work with company-approved brokers, while 96 percent will evaluate offers below the appraised value of their employees’ homes. Forty-two percent of companies are adopting tiered levels of home sale benefits for their employees, up from 25 percent since last year’s survey. At the same time, fewer companies are offering employees only a traditional guaranteed buyout program, down to 25 percent in 2010 from 34 percent in 2008. In most cases, the guaranteed buyout is reserved for senior-level executives. Although companies strive to avoid policy exceptions, market volatility and lengthy home marketing periods are making more employees hesitant to move, forcing companies to offer exceptions. The most common exception, cited by 42 percent of respondents, is extended temporary living. “Despite slowed markets and economic hurdles, employee mobility remains a critical part of most companies’ growth and talent management strategies,” said Sullivan. “The difference today, according to our survey results, is that companies are being more strategic in managing their programs. Rather than casting a wide net of similar benefits for all mobile employees, they’re taking a more targeted approach, offering specific packages to specific employees and new hires to convince them to accept moves.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 06 May 2010 00:00:00 EST E14B188F6D7F4FEFA31CA038A4BA7913 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=D7C7082EB50E478085A689016F223863 An Amherst , N.Y. , vendor management company is closing its doors after primary customer KeyBank decided to take its business to a larger competitor with more services. In this article: KeyBank SecoLink Settlement Services Patrick Ridley PHH Mortgage Corp SecoLink Settlement Services will close effective June 30, reported The Buffalo News . The company already reduced its staff by 45 percent since March from 62 employees to 32 in preparation for the shutdown. President and CEO Patrick Ridley told the newspaper that the remaining staff members will be laid off in phases over the next few weeks. SecoLink contracted with appraisers, title abstract companies and attorneys to provide settlement services, including appraisals, title insurance and flood certifications. According to the newspaper, it provided services for the majority of KeyBank mortgage transactions outside of those for which consumers chose their own third-party providers. The company was founded in 2001 in Buffalo , N.Y. , by KeyBank. Forty-nine percent of the VMC is owned by KeyCorp and the remaining 51 percent by The First American Corp. The Buffalo News reported that KeyBank sought out a full-service provider to which it could outsource its entire back-office operations. KeyBank said it began working in December 2009 with PHH Mortgage Corp of Mount Laurel, N.J. PHH is a public company that provides “beginning to end solutions” for KeyBank’s mortgage needs, such as loan origination, products, pricing, secondary marketing and servicing for all saleable loans, the bank said. “PHH provides a broader product set for us (and) for our customers obviously,” KeyBank spokesperson Therese Myers said. She noted that the bank employees are still originating mortgages in various districts, including Buffalo , before transferring mortgage-related issues to PHH. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 04 May 2010 00:00:00 EST D7C7082EB50E478085A689016F223863 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=C9CB6421822746A49A02322AA020D40E Three appraisers were charged for their role in a mortgage fraud scheme in Cleveland on April 28. The announcement was made by Steven M. Dettelbach , United States Attorney for the Northern District of Ohio. The scheme involved the purchase of 28 properties in the Cleveland area, securing more than $3.25 million in loans. The indictment charges one count of conspiracy to commit wire fraud, and 24 counts of wire fraud. In this article: mortgage fraud Park Mortgage Cleveland Steven M. Dettelbach Lavon Ruderson , Wesley D. Rahmon and Robert M. Wilkes, Jr. were all licensed Ohio appraisers. Also indicted by the federal grand jury were alleged ringleader Kimberly Wilson , a loan officer for Park Mortgage, and nine others — Michael Boyce , Beyond Wynn , Darlena Rogers , Drummell Coffey , Lawrence Calloway , Gerald Ford , Nafessah Walker , Travis Haynes and Antoinece Robin Boyd . Ruderson, also known as Lavon Ivy, was sentenced to three years in prison in March 2009 after being found guilty of theft by deception, securing a writing by deception, forgery, communications fraud, receiving stolen property and falsification. All the charges related to the sale of a single-family home. The indictment alleges that from June 2005 through January 2007, all 13 defendants conspired to fraudulently purchase 28 properties in the Cleveland area, securing over $3.25 million in mortgage loans. The indictment further alleges that as part of the conspiracy, Wilson, in her capacity as a loan officer for Park Mortgage, completed and submitted fraudulent loan applications in the names of straw buyers. The straw buyers included defendants Coffey, Calloway, Ford, Walker and Haynes, whose employment, income and assets were falsified in almost every loan application and who concealed the source of the down-payment funds in order to obtain the financing to purchase the 28 properties. The indictment alleges that defendant Boyd assisted in the scheme by falsely verifying employment for Coffey and Walker through her tax preparing company, Boyd Management, in order for them to qualify for mortgage loans. The indictment further alleges that Ruderson, Rahmon and Wilkes, Jr. appraised the properties for a value in excess of the true market value of the properties allowing Wilson, through her companies, Suburban Home Care and Landscaping, LLC and Dakaliote, LLC, to fraudulently profit by obtaining the excess funds from the mortgage loans for her personal use, and the use of other defendants, such as the straw buyers. Wilson induced the straw buyers to participate by promising they could purchase the properties with no money down and the straw buyers could receive cash back at closing. The indictment also alleges that Wynn, Rogers and Boyce, sellers of 12 of the properties, were aware of, and profited from, the sale of their properties to the straw buyers at the inflated values. The defendants’ fraudulent conduct induced Long Beach Mortgage Company, Argent Mortgage Company, LLC, New Century Mortgage Company, WMC Mortgage Company, and Aegis Mortgage Company to fund the mortgage loans. The victim companies suffered a total loss of approximately $1,942,971 as a result of defendants’ scheme. If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, each defendant’s role in the offense, and the characteristics of the violation. In all cases the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum. In the press release, Dettelbach stated, “Mortgage fraud is one of the top priorities of this office because of the far reaching and devastating economic impact on our community. We are focusing a significant portion of the office’s resources, along with our law enforcement partners, to find and prosecute the perpetrators of mortgage fraud in Northeast Ohio with a goal of eliminating it.” This case is being prosecuted by Assistant United States Attorney Mark S. Bennett , following an investigation by the Cleveland Division of the Federal Bureau of Investigation. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 04 May 2010 00:00:00 EST C9CB6421822746A49A02322AA020D40E http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=72512737F57D421EB98E9A3077D7FD6A Phoenix-based eTEC Appraisal Management Solutions, a national provider of appraisal management services, hired two new area sales managers. On April 7, Dawn Burton of Charlotte , N.C. became the regional sales manager for eTEC in the North Carolina , South Carolina , along with parts of Virginia , Tennessee and Georgia markets. On May 3, the company announced that Robert Tames signed on as Area Sales Manager for the Southwest region. Tames will have primary responsibility for eTEC AMS customers from eTEC AMS corporate headquarters in Phoenix, managing the Southwest region including Arizona, Nevada, Southern California, New Mexico and Colorado. In this article: eTEC Appraisal Management Solutions Dawn Burton Robert Tames Brannon Ogburn B urton is the current president of the Charlotte Regional Lenders Board and has been a member of the organization since 2000. “Dawn brings a solid record of successful account relationships to our team from her notable career within the mortgage lending industry.   She is a recognized leader in the industry and it is to our customer’s advantage to have Dawn on board in guiding them on the new efficiencies and cost savings eTEC AMS can bring new to the appraisal management piece of their residential mortgage lending business,” said Brannon Ogburn , president and CEO of eTEC AMS. Burton is an 18 year industry veteran, with previous sales and management leadership in companies such as SouthTrust, Radian Guarantee, and Bear Stearns. Tames previously held the role of vice president of Greenberry Financial and Bayrock Mortgage, as well as executive vice president of Home Capital, Inc. His experience spans leadership, sales and business solutions as well as state and federal regulatory compliance issues. “Rob’s achievements in technology driven business solutions, combined with leadership in the areas of risk management and residential mortgage market will be a considerable resource for our customers,” said Ogburn, adding, “Rob has unique experience in rolling out innovative technology solutions and substantial mortgage industry experience. We are pleased to have him on board.” eTEC Appraisal Management Solutions began introducing its proprietary ‘ARC’ process, a ‘one and done’ program that takes the shortest path between appraisal management and underwriting analysis for residential mortgage lenders across the country late last year. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Tue, 04 May 2010 00:00:00 EST 72512737F57D421EB98E9A3077D7FD6A http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=E75F70DEE1D945AD9BC1BF8B0E58475F The latest Mortgage Monitor report from Jacksonville, Fla.-based Lender Processing Services Inc (LPS), released April 29, showed mixed results with the nation’s home loan market. Modest improvements in the number of loans curing to current and reductions in total new delinquencies are still overshadowed by a large pool (7.39 million) of non-current and REO loans. The report is based on data as of March 2010 month-end. In this article: Mortgage Monitor report Lender Processing Services Inc. Home Affordable Modification Program Several of the nation's largest states by population, including Florida , Nevada , New Jersey , Arizona , California , Illinois , Indiana and Ohio showed foreclosure inventories at a higher percentage than the average national foreclosure rate of 3.27 percent. Overall, the number of non-current loans across the nation has declined over the past six months, but 16 states showed an increase in the number of non-current loans. Total delinquencies, excluding foreclosures, decreased 10.3 percent from February to March 2010; however, the total represents a year-over-year increase of 15.7 percent. Similarly, March's foreclosure rate stands at 3.27 percent, representing a month-over-month decrease of 1.2 percent but a year-over-year increase of 32.9 percent. The number of loans moving from seriously delinquent into foreclosure rose in March, after hitting historic lows in February. The impact from the government’s Home Affordable Modification Program (HAMP) is evident in the improved level of loan cure rates as trial modifications are converted to official loan modifications. Elevated levels of early-stage cures (loans 30- to 60-days delinquent) indicate a higher rate of self-cures. Other key results from LPS’ latest Mortgage Monitor report include: Total U.S. loan delinquency rate: 9.12 percent;           Total U.S. foreclosure inventory rate: 3.27 percent; Total U.S. non-current* loan rate: 12.39 percent; States with most non-current* loans:   Florida, Nevada, Mississippi, Arizona, Georgia, California, Illinois, Rhode Island, New Jersey and Michigan; and States with fewest non-current* loans: North Dakota , South Dakota , Alaska , Wyoming , Montana , Nebraska , Vermont , Colorado , Iowa and Minnesota .   *Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. LPS manages a repository of loan-level residential mortgage data and performance information from approximately 40 million loans across the spectrum of credit products. The company’s research experts analyze this data to produce dozens of charts and graphs that reflect trend and point-in-time observations for LPS’ monthly Mortgage Monitor Report. LPS is a provider of integrated technology and services to the mortgage and real estate industries. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 04 May 2010 00:00:00 EST E75F70DEE1D945AD9BC1BF8B0E58475F http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=027C2C747213443BB8B65890A831655D Valligent, a Roseville, Calif.-based provider of industry-leading collateral valuation and risk management solutions , partnered with Global DMS, a Lansdale, Pa.-based provider of appraisal process management solutions, to offer an end-to-end valuation service for ordering, managing and delivering a full range of valuation products in MISMO-sanctioned XML data format — all in full compliance with the Home Valuation Code of Conduct (HVCC), FHA’s appraisal guidelines, and Fannie Mae and Freddie Mac’s Collateral Data Delivery (CDD) program that is scheduled to be in effect as of July 1, 2010. In this article: Global DMS Valligent MISMO Jeremy McCarty This collaborative service, called MISMO-Connect, provides companies with the valuation services of Valligent and additional select valuation providers, and is powered by technologies from Global DMS. All products are delivered in the MISMO-sanctioned format. Rather than ordering and managing various individual valuation products, mortgage companies can create their own custom valuation workflow integrated with their loan management system in a format fully-compliant with the new GSE requirements and all other major guidelines and regulations. “This is much more than a one-stop service that covers valuation reports for the full spectrum of lender needs,” says Jeremy McCarty , CEO and chief valuation strategist of Valligent. “It’s also a way for lenders to ensure that their valuation processes are fully compliant with all of the related regulations, including the Collateral Data Delivery requirements set forth by Fannie Mae and Freddie Mac.”   The valuation products available include Valligent’s proprietary suite of DRiVE collateral valuation solutions, as well as automated valuation model (AVM) reports, traditional reviews, and full appraisals. The entire process is managed with Global DMS’ appraisal process management technology for managing workflow and ensuring compliance with HVCC and FHA appraisal guidelines. And data conversions, if necessary, are completed through Global DMS’ MARS (MISMO Appraisal Review System), a technology that extracts data from PDF files and converts it into other formats, including Extensible Markup Language (XML) as required by the Collateral Data Delivery program. “Standards in the industry are tightening across the board, so it just makes sense to have regulations that ensure data integrity in the appraisal segment as well,” says Vladimir Bien-Aime , CEO of Global DMS. “Staying compliant and profitable has always been a challenge for mortgage lenders. We’re excited to be working with Valligent to provide mortgage lenders with a cost-effective, compliant and simplified way of handling all of their valuation needs.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 29 Apr 2010 00:00:00 EST 027C2C747213443BB8B65890A831655D http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=23F9244E2C41461C855127DA30086BA1 Lenders are increasingly interested in using hybrid broker price opinion (BPO) valuation products as a way to get a fix on the value of portfolios of properties, according to a company’s recent analysis. In this article: Equi-Trax Guy Taylor ValuePlus BPO Equi-Trax Asset Solutions LP, based in Santa Barbara , is a national collateral valuation provider offering a line of hybrid valuation products delivered under a meticulous quality control process to bridge the gap between BPOs and full appraisals. An analysis of the company’s recent sales data indicates that demand among the nation’s top lenders for hybrid BPO collateral valuation products has increased over the last two quarters. “We see two trends driving this change in lender demand,” said Guy Taylor , CEO of Equi-Trax. “First, BPOs are the most affordable method of getting an estimate of a property’s value and when evaluated by a licensed, certified appraiser the product can be very accurate. Second, with origination volume still relatively low and default servicing active, we’re seeing more servicers ordering valuation products and these companies often use BPOs during the default process.” Equi-Trax, which offers the ValuePlus BPO, began developing hybrid valuation products before the downturn because, according to the company, executives expected lenders to seek out affordable valuation options that could deliver more accurate results. “Mortgage servicers, in particular, are demanding more accuracy at the same time they are increasingly pressured to cut costs,” the company stated. Products like the ValuePlus BPO combine a BPO product with real-time reconciliation provided by a licensed, certified appraiser, to provide servicers with the benefit of two experts, “for the price of one.” The ValuePlus BPO offers property photos of the side yard, back yard, back of house, all rooms, any damage as well as an area map, MLS photos and data for three sales comps and three listing comps, CMA and a reconciliation by a certified appraiser with additional data points. Also included is an opinion as to the appropriateness of the valuation methods and techniques used, and for developing and reporting any reasons for disagreement as well as a final valuation estimate. At le ast one additional comp is provided to support the analysis. For more information or to see a copy of the report, visit the company’s website at http://www.equi-trax.com . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 29 Apr 2010 00:00:00 EST 23F9244E2C41461C855127DA30086BA1 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=67AE28D2AF574A77A1EE7948859132F4 The House Financial Services Committee approved legislation on April 27 to reform the Federal Housing Administration (FHA). Lawmakers said the reforms would ensure FHA “remains viable” and is able to continue its mission of insuring mortgage loans. In this article: FHA reform Maxine Waters HR 5072 David Stevens Rep. Maxine Waters , D-Calif., drafted HR 5072 , known as the FHA Reform Act of 2010, after rising defaults caused the federal agency’s reserves to fall below the two percent level required by law. The measure allows FHA to adjust its premium structure for new borrowers. In January, the agency requested legislative approval to raise the maximum annual premiums it can charge. At that time, FHA decided to increased up-front mortgage insurance premiums from 1.75 percent to 2.25 percent – a move that did not require congressional approval. Now that the agency has been granted the authority to raise the annual fees assessed, FHA has said it will shift some of the premium increase from up-front to the annual cost, which is paid over the life of the loan instead of at the time of closing. FHA had seen its share of the mortgage market greatly increase over the last year, as lenders and borrowers sought security in an uncertain market. Waters said, “The economic crisis that started a couple of years ago and declining home prices have caused FHA’s capital reserves to deteriorate in recent months, but under the leadership of Secretary Shaun Donovan and FHA Commissioner David Stevens, FHA has taken unprecedented administrative and regulatory steps to improve risk management and root out bad actors participating in the program. This legislation makes essential reforms to strengthen FHA’s finances.” HR 5072 also provides FHA with the authority to terminate lenders’ approval to originate or underwrite loans backed by FHA insurance when FHA finds evidence of fraud or noncompliance. Lawmakers say this enhanced authority is needed, particularly in light of the recent cases of Lend America and Taylor Bean and Whitaker, who perpetuated fraud schemes spanning many years. In addition, the legislation requires FHA to improve its internal reporting systems to better manage risk and to provide transparent data to the public and to Congress. This includes improving monitoring of early defaults and claims, tracking mortgage information by loan servicer, providing FHA with the ability to contract out for additional credit risk analysis, requiring mortgagees to report to FHA when they stop buying loans from other mortgagees, and calling for a Government Accountability Office study on FHA and Ginnie Mae. The bill also creates a new deputy assistant secretary at FHA for risk management and regulatory affairs. The House Financial Services Committee, however, did not approve an amendment proposed by Rep. Scott Garrett , R-N.J., which would have raised the minimum down-payment requirement for loans backed by FHA from the current level of 3.5 percent to 5 percent. Waters drafted the legislation after conducting three hearings on FHA in the last six months. HR 5072 has the support of organizations including the National Urban League, the National Council of La Raza, the National Community Reinvestment Coalition, the Mortgage Bankers Association, the National Association of Realtors and the National Association of Home Builders. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 29 Apr 2010 00:00:00 EST 67AE28D2AF574A77A1EE7948859132F4 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=E55BFF77923F4D16AC099817E3C84616 Commercial and multifamily mortgage origination volumes decreased 46 percent in 2009 among repeat reporters, with mortgage bankers reporting $82.3 billion of closed commercial and multifamily loans, according to the Mortgage Bankers Association’s (MBA) 2009 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation. In this article: Commercial and multifamily mortgage origination volumes Mortgage Bankers Association Jamie Woodwell Commercial banks and savings institutions were the largest single investor group for commercial and multifamily mortgages — responsible for $19.8 billion, or 24 percent, of the closed loan volume. Multifamily properties were the dominant property type, representing $36.5 billion, or 44 percent of the lending total.  “Relatively few commercial mortgages were made in 2009, as the recession curtailed both the supply of and demand for new mortgage debt,” said Jamie Woodwell , MBA’s vice president of commercial real estate research. “As the recession has receded, origination volumes have picked up slightly, but the absolute levels remain low.” One of the key findings in the report was that decreases were seen across most property types and investor groups, and were led by declines in loans intended for: Credit companies; Real Estate Investment Trusts (REITs), mortgage REITs and investment funds; and commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDO) and other asset-backed security (ABS) conduits. The report also revealed the fortunes of the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac. $15.9 billion of multifamily loans were closed for Fannie Mae, a 32 percent decline from 2008, whereas $15.2 billion of multifamily loans were closed for Freddie Mac, a 24 percent decline from 2008. Conversely, $5.8 billion of loans were closed for FHA/Ginnie Mae, a 168 percent increase from 2008. However, the GSEs remained the dominant force in multifamily mortgage originations. Loans for Fannie Mae and Freddie Mac accounted for 85 percent of the total reported multifamily volume in 2009. In terms of commercial properties, lending for office properties had the largest percentage decrease in originations by property type, followed closely by retail properties and hotels/motels. Year-over-year changes are based on the changes in volume among “repeat reporters” that participated in both the 2008 and 2009 surveys. For a copy of the report, go to www.mortgagebankers.org . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 29 Apr 2010 00:00:00 EST E55BFF77923F4D16AC099817E3C84616 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=E045220558254650A6F8790EF9B87B4F The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending April 16, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 13.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 13.9 percent compared with the previous week. In this article: Mortgage Applications Survey Mortgage Bankers Association Michael Fratantoni “Treasury rates fell last week causing a decline in mortgage rates.  As a result, refinance applications picked up over the week, as some borrowers took advantage of this recent rate volatility to lock in a low fixed-rate loan,” said Michael Fratantoni , MBA’s vice president of research and economics. “Purchase applications continued to increase coming out of the Easter holiday, as we approach the end of the homebuyer tax credit, and are up modestly over last month.” The Refinance Index increased 15.8 percent from the previous week and the seasonally adjusted Purchase Index increased 10.1 percent from one week earlier. The unadjusted Purchase Index increased 11.0 percent compared with the previous week and was 5.2 percent lower than the same week one year ago.   The four-week moving average for the seasonally adjusted Market Index is down 3.1 percent. The four-week moving average is up 2.0 percent for the seasonally adjusted Purchase Index, while this average is down 5.9 percent for the Refinance Index. The refinance share of mortgage activity increased to 60.0 percent of total applications from 58.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.0 percent from 6.3 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.04 percent from 5.17 percent , with points increasing to 0.98 from 0.91 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.  The effective rate also decreased from last week.  The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.34 percent from 4.45 percent , with points increasing to 0.98 from 0.80 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased from last week. The average contract interest rate for one-year ARMs decreased to 6.95 percent from 7.02 percent , with points increasing to 0.28 from 0.27 (including the origination fee) for 80 percent LTV loans.  Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.   Tue, 27 Apr 2010 00:00:00 EST E045220558254650A6F8790EF9B87B4F http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=9DD0EDC1D706405886893BE99104C4D8 The Department of Housing and Urban Development (HUD) released a new mortgagee letter on April 20, giving new guidance on changes to selecting FHA Roster Appraisers and ordering Federal Housing Administration case numbers. In this article: Department of Housing and Urban Development (HUD) Federal Housing Adminstration Mortgagee Letter 10-15 FHA Connection Mortgagee Letter 10-15, among other things, informs lenders about the changes to data entry requirements in FHA Connection. For all case numbers assigned on or after Feb. 15, 2010, the Case Number Assignment screen in FHA Connection will no longer capture appraiser information (assignment choice, license ID and assignment date). However, information fields in the case number assignment screen that will continue to require input include: General information; “as required” fields (pertaining to streamline refinances, 203k loans and condo indicators, etc.); ADP (automated data processing) code characteristics; property address; compliance inspection fields (if applicable); and borrower information. Instead, the appraisal logging screen in FHA Connection will now capture the appraiser information along with the following information fields: the appraiser’s license ID; property information; neighborhood information; site information; physical improvement information; and reconciliation information. Lenders are still required to input the relevant information about both the appraisal and the appraiser into FHA Connection prior to the loan closing. Mortgagees are reminded to ensure that the appraiser selected from the FHA Roster is listed as being active. In fact, Mortgagee Letter reminds lenders about several points, including: Appraisals cannot be performed for purposes of FHA insured financing unless the appraiser is listed as being active on the FHA Appraiser Roster during the time period in which the appraisal is performed; Mortgages predicated upon appraisals that are performed by appraisers who are not current on the FHA Appraiser Roster at the time of the effective date of the appraisal will not be insured; The effective date of the appraisal cannot be before the case number assignment date unless the lender certifies, via the certification field in the Appraiser Logging Screen in FHA Connection, the appraisal was ordered for conventional lending, HUD REO or government guaranteed loan purposes but was performed by a FHA Roster Appraiser and is being converted to a FHA-insured mortgage. The mortgagee must retain documentation in the case binder substantiating conversion of the mortgage to FHA; and If the appraisal was ordered for conventional lending or government guaranteed loan purposes but was performed by a FHA Roster Appraiser, the mortgagee must ensure that the appraisal was performed in accordance with FHA appraisal reporting requirements as detailed in Handbook 4150.2, CHG-1, Valuation Analysis for Home Mortgage Insurance for Single Family One – to Four – Unit Dwellings, and subsequent mortgagee letters. Ensuring compliance with this requirement may entail a re-inspection of the property by the appraiser. Tue, 27 Apr 2010 00:00:00 EST 9DD0EDC1D706405886893BE99104C4D8 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=6EF58543BF564D179B9FDBEA22918755 PLATINUMdata, a collateral solutions provider to the financial industry, announced the update of its automated appraisal review product, REALview, to REALview Plus. In this article: PLATINUMdata REALview Plus Rocky Donathon The update was designed to better assist lenders and investors in scrutinizing the valuation accuracy of their appraisals. REALview is an automated underwriting and quality control appraisal review tool that checks appraisals for compliance, completeness and accuracy while integrating public record and MLS data to benchmark the value on the appraisal. In addition to providing the capabilities of REALview, REALview Plus is an enhanced version that provides an automated method of “best comparable” selection and an appraisal quality score, based on sales comp relevance, which can be used for bump logic workflow applications. “In the current market, lenders and investors know that they can’t just look at property appraisals,” said Rocky Donathan , president of PLATINUMdata. “REALview Plus enables reviewers to be more confident in an appraisal, because our technology allows them to cost-effectively and efficiently improve appraisal quality with a standard methodology that objectively evaluates their valuation results.” REALview Plus offers an automated quality score that accelerates the appraisal review process with less risk by providing a probability that an appraised value is accurate. It performs a comparable sales check that ensures fewer valuation issues by utilizing the most relevant sales comps near the subject property. The product uses multi-sourced public record data and MLS data when available to automate due diligence, cutting down on research time while still providing a diverse and thorough review of data points. “Mortgage originators, mortgage insurance companies, servicers and investors have helped make REALview one of our most popular solutions,” said Donathan. “Our next generation of the product greatly enhances an already well-regarded tool to meet the changing needs of the real estate market through objective appraisal accuracy. With property values constantly in flux, lenders and investors are at risk if they don’t use it.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 27 Apr 2010 00:00:00 EST 6EF58543BF564D179B9FDBEA22918755 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=E6B6F173AB52496AA798FE6779F67B0B Global DMS, the Lansdale , Penn.-based appraisal management software provider, released OasisOne, a new, online technology platform that enables users to run numerous disparate software solutions from within a single location. Rather than having to launch multiple browser windows and programs to access all of the software solutions they need, lenders and appraisal management companies can access and manage multiple solutions all from within one browser window.   In this article: Global DMS OasisOne Vladimir Bien-Aime Collateral Data Delivery initiative “Think of it as a program within a program,” said Vladimir Bien-Aime , CEO of Global DMS. “A user only needs to log in once — to OasisOne — and from there will be able to launch various software products, which will be a lot like launching apps on a personal handheld device.” To open the OasisOne platform, users need only open a browser window and log in to their personal OasisOne desktop via an Internet connection. At that point, the browser window will appear, on which will be icons for the user’s various software solutions. Those software solutions, which will all run from within the open OasisOne window, will be formatted and accessed in a similar fashion to the “apps” used on popular “smart phone” devices. “OasisOne isn’t just making access easier and more convenient, it’s also opening up a whole new world of functionality,” said Bien-Aime. “The uniform accessibility through a single platform opens the playing field for software developers to create programs that can run from within that platform. If we consider the number of ‘apps’ created over the past few years as an example, it’s easy to see the massive implications for the OasisOne platform.” The first solution accessible through OasisOne is Global DMS’ MARS ( MISMO Appraisal   Review System) technology, which extracts data from PDF files and converts it into various XML formats, including the MISMO 2.6 XML that will be mandated for loans submitted to Fannie Mae for the Collateral Data Delivery initiative slated for July 2010. Global DMS is currently forging additional partnerships with mortgage industry software providers to provide “app”-like versions of their solutions, which will then be able to be accessed from OasisOne. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Tue, 27 Apr 2010 00:00:00 EST E6B6F173AB52496AA798FE6779F67B0B http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=16532C89C5B549DB916FEA329DD76444 Spokane, Wash.-based provider of appraisal and settlement services technology solutions, SharperLending LLC, announced that its Appraisal Firewall product, a non-AMC valuation technology solution that allows lenders to keep working with their trusted local appraisers while staying FHA and HVCC compliant, has been integrated into San Jose, Calif.-based Calyx Software’s Point software. In this article: Appraisal Firewall Calyx Software SharperLending LLC Dave Black Calyx Software is a provider of loan marketing, originating and processing software. Through the integration, Point users can now take advantage of the Appraisal Firewall valuation technology from within their familiar Calyx Point system. “The goal of Appraisal Firewall is to lessen the impact of appraisal regulations on lender business, which it does by allowing lenders to keep working with their trusted appraisers while being HVCC and FHA compliant,” said Dave Black , president and CEO of SharperLending, the company behind the Appraisal Firewall technology. “Now that we’ve worked with Calyx to extend appraisal access into Point, this promotes our focus by allowing Point users to stay in their current LOS package — further lessening the impact of appraisal regulations.” “Calyx is excited about the integration of SharperLending into the Calyx Network,” said Dennis Boggs , senior vice president of business development. “SharperLending’s technology multiplies our capabilities to provide Point users with more options.” “Lenders in general have enough on their plates these days,” continued Black. “When technology integrations like this have the goal of embracing external change and reducing lender impact, lenders can focus on keeping their pipelines full and making their customers happy.” Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 22 Apr 2010 00:00:00 EST 16532C89C5B549DB916FEA329DD76444 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=8031DB32D14143AA8C066961EA22D524 Quality Valuation Services (QVS), the Mission Viejo, Calif.-based appraisal management company, partnered with ClosingCorp, an independent real estate information services company based in La Jolla , Calif. Under the new partnership, lenders and mortgage brokers using ClosingCorp’s new SmartGFE Service will have instant access to fees and pricing from more than 6,500 certified appraisers. In this article: Quality Valuation Services ClosingCorp SmartGFE Service Tom Huffman QVS provides appraisals in nine residential categories ranging from individual condominiums to residential income properties. This partnership makes a significant addition to the SmartGFE’s large database of residential appraisers nationwide, giving loan originators a range of professionals to choose from when preparing Good Faith Estimates (GFEs). Lenders can select QVS appraisers with local geographical competency at the newly launched, SmartGFE.com Web site. The data is also integrated with CalyxPoint 7.2, the loan origination system platform. QVS pricing will be backed by the SmartGFE Compliance Guarantee, which launches May 1 and assures lenders that fees they select using the SmartGFE Service will not result in a Good Faith Estimate tolerance violation. Quality Valuation Services consists of real estate valuation industry executives, appraisal technology experts, review appraisal managers, underwriters and a nationwide panel of over 6,500 geographically-specialized appraisers. QVS uses automated processes and six sigma management methodologies. QVS manually reviews 100 percent of the appraisal reports prior to delivery. The SmartGFE Service provides real-time fees from local, regional and national vendors in nine categories such as title insurance, settlement services, closing attorneys, home inspections, pest inspections, and more, as well as local taxes and recording fees calculated specifically for each transaction to help create Good Faith Estimates that meet HUD’s new mandated tolerance limits. “We feel that by joining SmartGFE, clients can easily see how QVS’s broad reach and competitive pricing differentiate us from others in the marketplace,” said Tom Huffman , Quality Valuation Services’ president and chief information officer. “We welcome QVS to our family of closing service providers. Now lenders seeking to comply with HUD’s Good Faith Estimate requirements can easily find and price quality appraisers who meet QVS’s high performance standards,” said Tim Armbruster , ClosingCorp’s chief technology officer. Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 22 Apr 2010 00:00:00 EST 8031DB32D14143AA8C066961EA22D524 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=F7FE6D33490D48D5A9E62FA649F4D1F7 a la mode, inc announced that its SureDocs e-signature system, which has already been used for nearly 4 million mortgage document signing events, is being broadened to include market-specific versions for appraisers and real estate agents. According to the company, more than 100,000 professionals in the mortgage, finance, agent, appraisal, and inspection fields currently utilize a la mode’s desktop and server-side applications to complete various aspects of nearly 50 percent of all real estate transactions. In this article: a la mode SureDocs David Stevens Dave Biggers The deployment of appraisal and agent versions of SureDocs comes soon after the Federal Housing Administration (FHA) confirmed that it now considers e-signatures on third party non-lender documents to be just as valid as previous “wet ink” paper signatures. In a move that pushes the entire industry closer to the adoption of electronic documents in real estate transactions, FHA made plans to modernize its application process for FHA mortgage insurance by accepting electronic signatures on third-party documents originated and signed outside of the lender’s control, including real estate sales contracts. Mortgagee Letter 2010-14 details the administration’s new process hoped to make the application process easier for borrowers and faster for lenders. “This is just the beginning of FHA’s commitment to use more electronic documents in our loan approval process,” said FHA Commissioner David Stevens . “Over time, we will be expanding the number and types of documents with electronic signatures which will be acceptable to FHA.” Dave Biggers , a la mode’s chairman noted, “Many of the supposedly paperless loan files out there are full of scanned copies of traditional paper documents. That’s both environmentally and financially expensive. With SureDocs, signatures are applied on screen to purely digital documents, which don’t need to be printed unless the user needs it. It’s better all around.” SureDocs features include having the identity of those signing the documents independently verified. The document custody chain is tracked and documented using an audit file hosted on a la mode’s servers. Any attempt at forging identities, or making fraudulent changes to appraisals, contracts, property condition disclosures, loan files, or any other SureDocs-signed document, is easily tracked and verified using a secure web browser. Documents are also transmitted to parties using secure GLB-compliant multi-layer protocols. SureDocs for Appraisers has already been released, with a version directly embedded at no charge into the company’s new TOTAL 2010 form-filling system. A standalone version compatible with competing forms products is on the way as well. Over recent years, XML-based data delivery has become the norm with Fannie Mae soon to implement its Collateral Data Delivery initiative. However, XML versions of an appraisal can be manipulated and then reprinted with the appraiser’s simple picture signature intact, so an investor could be unaware that key data in the report has been altered or removed entirely. With SureDocs, PDF appraisals can be transmitted together with the full XML data. SureDocs stores a digital fingerprint of the PDF files on its verification servers, so auditors can authenticate the version they have versus the original and instantly detect any unauthorized changes. The PDF contains notices to that effect, and each signature imprint contains a serial number unique to that document. Capturing and then re-using a true e-signature on a modified document becomes impractical as a result. a la mode plans later this year to release a developer’s kit allowing institutions to track and manage individual SureDocs appraisals, as well as authenticate en masse the appraisals in their portfolios. For more information regarding any member of the SureDocs product line, visit the a la mode website at www.alamode.com . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 22 Apr 2010 00:00:00 EST F7FE6D33490D48D5A9E62FA649F4D1F7 http://www.valuationreview.com/ME2/Audiences/dirmod.asp?sid=270E8EBA5AF64172B917EBD588EDB85A&nm=Daily+News&type=news&mod=News&mid=5F249E552B2C49509BC41751816632F3&AudID=F0F48C5C19CB47B3A675FD6074A3CB8A&tier=3&nid=2B73CFB92C4A4634B7F62E0B1F91C65D Veros Software, the Santa Ana , Calif.-based provider of real estate valuations and predictive analytic technology, unveiled its speaker lineup for the upcoming 2010 Predictive Methods Conference (PMC). The conference is May 17-19 at The Ritz-Carlton, Laguna Niguel, located in Dana Point, Calif.   In this article: Predictive Methods Conference Veros Software Dylan Ratigan David Rasmussen Now in its tenth year, PMC will see financial executives engage in open-source discussions on the critical issues and trends facing the real estate finance industry, including available technologies, tactics and methods for developing optimal risk management strategies. Veros announced the addition of the following celebrity and keynote speakers at the conference: Dylan Ratigan , Peter Navarro and Dr. Thomas Eppel . Ratigan is a v eteran journalist and television host of The Dylan Ratigan Show  which airs weekdays on MSNBC. Ratigan is the former anchor and co-creator of   CNBC’s   Fast Money   and also co-anchored   The Call   and the   3 p.m. hour of the   Closing Bell . Navarro is a business professor at the University of California-Irvine’s Paul Merage School of Business, a CNBC correspondent and author of bestsellers,   If It’s Raining in Brazil , Buy Starbucks   and   Always a Winner: Finding Your Competitive Advantage in an Up and Down Economy .   Dr. Eppel   is an expert in decision and risk analysis   and received his PhD in mathematical psychology from USC. Eppel has been published in leading journals and has extensive consulting experience in the private and public sector. Ratigan will be addressing the conference on Monday, May 17 and both Navarro and Eppel will be addressing the conference on Wednesday, May 19. The conference’s theme is “The Renaissance of Risk,” reflecting not only the new challenges the industry is facing, but also the creative thoughts of the many experts who will be sharing their insights. “We are truly in a time of rebirth for risk management,” said David Rasmussen , Veros’ vice president of sales and operations. “For the benefit of the industry and the country as a whole, PMC 2010 will thoroughly explore this new era and together we will set the stage for what is to come.”   PMC speakers will address not only matters at the forefront of industry-critical topics, but also what is beyond the horizon. According to a release issued by Veros, PMC 2010 promises valuable insights on both the challenges and the opportunities presented by the complex landscape of the current and future mortgage market.   “Everyone in attendance will experience a rejuvenated Predictive Methods Conference,” Rasmussen noted. “PMC 2010 has an exciting new format that will set the bar very high for industry conferences that follow. We have many new topics and an unrivaled lineup of speakers that will make this gathering the most significant event we have ever held,” he promised. PMC was founded in 2001 in response to the industry’s need for a place where competitors and associates alike could have a forum to discuss important issues openly and frankly with industry experts. “As we enter this new era, this ‘Renaissance of Risk,’ industry professionals need to deeply understand the tools available that bring transparency to loan production and servicing,” said Rasmussen. “Predictive technology, regulatory compliance, default and loss mitigation tools, and credit and valuation risk management are the arts and sciences executives must master in today’s environment. The industry’s future stability depends on this understanding, and this is precisely why the Predictive Methods Conference is so important for senior executives in the mortgage business and related fields.”   The three-day event is limited in size and is open to high-level managers from the various sectors of the mortgage lending and financial services industries. While the meeting is focused on educational content and personal interaction, a limited number of sponsorship and exhibitor opportunities are made available. For more information on the Predictive Methods Conference, its agenda, registration and speakers, visit www.PMC2010.com . Would you like to order a reprint of this story? Click here to find out how. COMMENT BOX DISCLAIMER: October Research Corp. is not responsible for the comments posted on its Web sites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments. Thu, 22 Apr 2010 00:00:00 EST 2B73CFB92C4A4634B7F62E0B1F91C65D