News By Edition

Armed with an appraisal that allows buyers and individuals in the industry to easily understand the characteristics of the subject property, an appraiser is able to ward off slimy misunderstandings and confusion in the buying process. Mark Chapin, formerly the chief valuation officer for Interthinx (since this interview, Chapin left Interthinx to become the President of C2CAppraisal Services), offered some insight to appraisers on how to prepare a clear and efficient appraisal.  

A battle over the form and function of appraiser regulatory agencies broke out on Capitol Hill, where industry associations testified about the way new regulatory changes are enacted. Below the surface bubbled tensions between appraiser associations, which eventually came to the surface.

In his State of the Union address, President Obama laid out a Blueprint for an America Built to Last, calling for action to help responsible borrowers and support a housing market recovery. For the Valuation Review readership, the most interesting aspect to this falls under the President’s plan for how refinancing can benefit a borrower with a non-GSE loan. One of the steps in that plan is “eliminating appraisal costs for all borrowers.” 

With the new Uniform Appraisal Dataset becoming the standard for the government-sponsored enterprises’ (GSE) digital submission portal, service providers and lenders are forced to pack away PDF’s belongings and make room for XML format. While some service providers and lenders may have a hard time saying goodbye to their beloved PDF format, the break up brings new opportunities to both the lending and appraisal industries. 

By providing enough detailed information to make an appraisal easily comprehensible, the industry lessens the chance of fraud. However, fraud is not the only threat the valuation industry can face. Misrepresentation and incomplete analysis also bring risk to the industry.

Summer is a great time to catch on some reading. In between non-fiction true crime and classic sci-fi novels, I picked up Drive: The Surprising Truth About What Motivates Us. It’s a business management book that suggests there’s an inherent need for autonomy, mastery and purpose in all of us and that should be what motivates us in both our professional and personal lives.  It's a message appraisers could relate to.

The U.S. Attorney’s Office announced that a a licensed real estate appraiser pled guilty before a U.S. District Judge to making false statements to influence a federally insured financial institution and aiding and abetting and an unlicensed individual prepared false appraisal reports.

The Ohio Association of Realtors reported that the number of single-family homes and condominiums put under agreement in May rose for the 13th consecutive month compared to the results from the prior year. Ohio’s May Pending Home Sales Index of 121.2, a forward-looking indicator based on contract signings, rose 19 percent from the May 2011 index of 101.8.  

Platinum Data, a provider of comprehensive collateral valuation technologies, has appointed J. Hunter Atkins and John LaMacchia to its board of directors. Both appointees bring decades of executive-level experience to their posts and both are past and current members of boards of directors for nationally recognized public, private and not-for-profit organizations. Both new board members were selected to help guide Platinum Data during the next phase of its growth and expansion. 

The median price paid for a home in the Phoenix area last month rose to a 41-month high, increasing on a year-over-year basis for the sixth month in a row. The region’s overall sales trended slightly higher as mid- to high-end activity jumped again, compensating for a sharp, ongoing slide in sales of lower-cost homes, especially foreclosures, a real estate information service reported.

FNC’s latest Residential Price Index indicates that U.S. residential property values are up for the second month in a row — evidence that home prices are strengthening as rising demand and limited inventory continue to characterize many U.S. market.

The board approved more than $8.4 million in funding through the Housing Development Assistance Program (HDAP) to provide flexible, low-interest financing for affordable housing developments. Funding for HDAP comes from the federal HOME program and the Ohio Housing Trust Fund (OHTF).

Equator, a national provider in default servicing technology, has hired five industry-experienced senior leaders to its team. Each new leader has the demonstrated skills and experience to further enhance Equator’s position in default servicing technology. The new team will focus on bolstering capacity and helping clients meet the demands of the market. 

Limited supplies of housing inventory held back existing-home sales in May, but sales maintained a strong lead over year-ago levels and home prices are on a sustained uptrend in all regions, according to the National Association of Realtors.

The Federal Housing Finance Agency reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some adjustable-rate mortgage (ARM) contracts, was 3.78 percent based on loans closed in May. Beginning in March, FHFA is calculating interest rates using unweighted survey data. There was a decrease of 0.15 percent from the previous month.

Clear Capital released its Rental Market Report. This new product is an extension of the company’s widely used Broker Price Opinion and includes a host of additional information to analyze and determine appropriate rental rates and potential rental income for a specific property.

Comps are a touchy subject for both appraisers and homebuilders. From the homebuilder’s point-of-view, the use of distressed sales in comps typically raises their stress level. There are situations where the use of distressed sales is necessary. Combine that with the problem that sometimes there are situations where there are no sales around the homebuilder’s newly built house and the appraiser can’t find appropriate comps.

Federal Housing Finance Agency Acting Director Edward DeMarco announced changes to short sale policies that will make it easier for military homeowners with Fannie Mae and Freddie Mac loans to honor their financial commitments when they are required to move as part of their duty.

Lincoln Appraisal & Settlement Services formed a new partnership with sister company Lincoln Abstract & Settlement Services. The company believes this closer relationship will create an efficient one-stop shop for its customers looking for appraisal, title and closing services.

CoesterVMS appointed industry veteran Robert Chasteen as the company’s new senior vice president of operations. Chasteen, who has over 20 years of experience and a strong track record of increasing loan production, elevating efficiency, reducing costs, ensuring compliance and optimizing cycle times, was hired as part of Coester’s plan to aggressively grow its market position as a leading appraisal management company and mortgage technology innovator.