News By Edition

With Labor Day behind us and political campaigns in full swing, it’s fitting that this edition is packed with political updates from the Appraisal Institute Annual Meeting held in California to the Capitol Hill testimonies in Washington, D.C. Being based in the battle ground state of Ohio, the Valuation Review editorial team has seen political attack ads on TV for months. Truthfully, I don’t pay much attention. Personally, I’m not political, but as an editor crusading for the appraisal in

The Appraisal Standards Board (ASB) issued the Second Exposure Draft of proposed changes for the 2014-15 edition of the Uniform Standards of Professional Appraisal Practice. Written comments are requested by Oct. 5.

Home sales activity throughout Ohio increased 13.4 percent in July, helping the marketplace record its 13th consecutive monthly sales gain, according to the statistics provided by the state’s Multiple Listing Services. Sales of new and existing homes posted a 12.9 percent increase during the first seven months of 2012 compared to the same period a year ago, reaching 63,519 sales versus the 2011 mark of 56,270. 

CoreLogic released data showing potential exposure to residential property damage from storm surge flooding as Tropical Storm Isaac makes its way across the Atlantic Ocean along a projected path toward the Gulf Coast. The data shows nearly 210,000 total residential properties valued at more than $27.7 billion in seven major metro areas along the Gulf Coast could be at risk for storm-surge related flooding, assuming the storm hits as a Category 1 hurricane. 

Technology moves fast. So fast that it can be hard to keep up, especially in the appraisal industry where demands for automated quality control and dataset submission set the standard for tomorrow’s software. We asked the industry what trends they see in the next two to three years. Here is what they said... 

The Consumer Financial Protection Bureau released a proposed rule that would require mortgage lenders to provide home loan applicants with copies of written appraisals and other home value estimates developed in connection with the application. The rule would ensure that consumers receive information prior to closing about how the property’s value was determined with a free copy of any appraisal report.  

Sales of existing homes rose in July even with constraints of affordable inventory, and the national median price is showing five consecutive months of year-over-year increases, according to the National Association of Realtors (NAR). Monthly sales rose in every region but the West, where inventory is very tight. 

Lender Processing Services Inc. announced an agreement with RentRange to offer rental property income data to mortgage servicers, investors and others in need of reliable rental market intelligence to make informed decisions related to distressed housing assets. 

Two mortgage loan officers pleaded guilty in federal court to recruiting straw buyers to purchase properties at inflated prices and then distributing the excess loan funds among themselves, the straw buyers and others involved in the scheme. A colluding appraiser offered appraisals to support the inflated prices of the properties. He also prepared false loan applications on behalf of the straw buyers, often overstating their income, misrepresenting their employment, and failing to disclose their other

The Ohio Housing Finance Agency (OHFA) Board approved $750,000 in funding through the Housing Development Assistance Program (HDAP) as well as several OHFA program initiatives. The Board also approved the 2013 Annual Plan, which addresses the state's affordable housing needs. Developed with input from stakeholders across the state, the 2013 Annual Plan is a strategic guide that highlights current affordable housing issues in Ohio including homeownership, multifamily housing and property management. 

Tackling 30 of the largest U.S. housing markets with more than 400 graphs, Pro Teck Valuation Services’s Home Value Forecast (HVF) provides insight into the possible future housing trends. 

Global DMS, a provider of enterprise Web-based appraisal management software, announced that it has been named to Mortgage Technology magazine’s coveted Top 50 Service Providers list for the fourth year in a row. 

Nationwide housing production edged down 1.1 percent in July, but confidence of homebuilders hasn’t been higher since February 2007, mostly riding on the single best month for housing permits since 2008.   

The Appraisal Institute’s Annual Meeting, held Aug. 1-3,  gave appraisers the opportunity to come together to catch up and discuss the obstacles the industry is facing. One of the most prevalent connections to make at the meeting was the appraisal legislative and regulatory update. If the prevalence of political ads haven’t already tipped you off – progress is slow on Capitol Hill as the campaign season gets underway, but there's still plenty of appraisal legislation issues to deal with. &nbs

Southern California home sales rose above the year-ago level for the seventh consecutive month in July despite continued declines in low-end distress sales. Increased activity in move-up and high-end submarkets also contributed to a significant rise in the region’s median sale price, which neared a four-year high, a real estate information service reported. 

CoreLogic introduced OnSite Plus, a property condition report that provides an overall condition rating constructed on a patent-pending algorithm and based on an inspection by a licensed real estate professional. Like the existing OnSite report, OnSite Plus incorporates local market conditions into a single property condition report that includes a professional physical inspection and quality control process to help ensure an accurate report. 

As a coalition you have to remain relevant to both your members and your political contacts. For your members, you want to create a culture of learning and engagement through well thought out and organized coalition events. Continuing education will be a foundation for engaging your members and building a meaningful fundraising system, if your organization chooses to raise money. The challenge in creating your continuing education events will be avoiding any competition with member organizations that provid

Bradford Technologies, provider of industry leading valuation analysis software, announced the release of CVR 2.0, the next generation of Collateral Valuation Report (CVR) — the appraisal report that introduced statistical analysis into the appraisal process, making it known by many valuation experts as the most advanced appraisal on the market. 

CitiMortgage announced the launch of the Home Rental Program, which will be managed by Carrington Capital Management LLC and Carrington Mortgage Services LLC, a specialist in servicing distressed residential real estate assets. Developed by CitiMortgage and Carrington as a pilot program, the Home Rental Program is designed to provide an alternative to foreclosure and allow eligible borrowers to stay in their homes by entering into a deed-for-lease home agreement and establishing a lease.   

Median existing single-family home prices are rising in more metropolitan areas, but a lack of inventory — notably in lower price ranges — is limiting buyer choices in an increasing number of markets around the country, according to the latest quarterly report by the National Association of Realtors.

Overall risk of mortgage fraud continued on an upward climb after a one-quarter pause, according to the Mortgage Fraud Risk Report from Interthinx. The company’s fraud analysis of the second quarter indicated a 7 percent rise in fraud risk — a 149 on the scale. The change was primarily driven by the move of 91 metropolitan statistical areas into the “very high risk” category.   

The June Mortgage Monitor report released by Lender Processing Services shows that while overall mortgage prepayment activity remains stable, despite historically low rates, the federal government's Home Affordable Refinance Program (HARP) has seen considerable activity since the beginning of 2012. 

There is a running series in the Cleveland Plain Dealer called “Whatever Happened to...” where it looks at news stories or city projects that kind of came and went — stuff that was on the top of people’s minds a decade ago, or even a few years ago, that isn’t even thought of now. This is what I thought of reading about Fannie Mae and Freddie Mac’s financial results for the second quarter. Whatever happened to the plans to wind down these two giant government-sponsored enterprises?&nb

Two members received the Lifetime Achievement Award and four others received the President’s Award during the Appraisal Institute Annual Meeting Friday in Coronado, Calif. The Lifetime Achievement Award is presented to an Appraisal Institute member who demonstrates high ethical standards; has volunteered several years of service and has contributed to the Appraisal Institute on the international, national, regional and/or chapter level; has served his or her community; and has contributed to the apprai

CoreLogic released its June Home Price Index report. Home prices nationwide, including distressed sales, increased on a year-over-year basis by 2.5 percent in June 2012 compared to June 2011. On a month-over-month basis, including distressed sales, home prices increased by 1.3 percent in June 2012 compared to May 2012. The June 2012 figures mark the fourth consecutive increase in home prices nationally on both a year-over-year and month-over-month basis. 

The U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury released the July edition of the Obama Administration's Housing Scorecard — a comprehensive report on the nation’s housing market. Data in the Housing Scorecard show continued signs of recovery as foreclosure starts and completions declined in June, though officials expect activity to increase in the coming months as firms lift delays in foreclosure processing.  

Seattle-area home sales rose above a year earlier for the 12th consecutive month in June, when increased activity above $300,000 outweighed sales declines in some of the lower price ranges. Mirroring a trend seen in other large markets, the median sale price rose year-over-year for the third consecutive month, hitting a nearly two-year high, amid the simultaneous shift toward more mid- to high-end transactions and fewer foreclosure resales, a real estate information service reported.  

Donald Kelly, executive director, Real Estate Valuation Advocacy Association (REVAA), appeared before the House Financial Services Committee, Subcommittee on Insurance, Housing and Community Opportunity in July to testify on behalf of REVAA and the Coalition to Facilitate Appraisal Integrity Reform (FAIR) on Mortgage Origination: The Impact of Recent Changes on Homeowners and Businesses. 

While the SEC has been busy since the inception of its new whistleblower rule, the CFPB has also created a whistleblower program that affects every company that is a covered entity under the new agency. What are the CFPB’s new whistleblower provisions, what potential threats do they pose to your company and what steps should you be taking now to avoid trouble down the road?

Lender Processing Services Inc., a provider of integrated technology and services to the mortgage and real estate industries, announced that its subsidiary DocX LLC, has reached a settlement with the Missouri attorney general, resulting in a dismissal of the criminal charges pending against DocX LLC. 

CoreLogic released its National Foreclosure Report for June, which provides monthly data on completed foreclosures and the overall foreclosure inventory. According to the report, there were 60,000 completed foreclosures in the U.S. in June 2012 compared to 80,000 in June 2011 and 60,000 in May 2012. Since the financial crisis began in September 2008, there have been approximately 3.7 million completed foreclosures across the country. Completed foreclosures are an indication of the total number of homes actu

Acris Technology, the software development company behind Mortgage VCO, a full suite of cloud-based software applications, business and IT support resources for mortgage bankers and lenders, announced it has availed the source code for its VCO Lend loan origination and processing software to select mid-size and large mortgage bankers.  

With the world population estimated to have recently passed 7 billion, the global freshwater market will be a “seller’s market” for the foreseeable future, according to a new book by the nation’s largest professional association of real estate appraisers.  

Solidifi, an appraisal management solutions provider to the North American financial services industry, is pleased to welcome Andrew Bough to its team. Bough joins Solidifi as chief valuations officer and brings 18 years of experience in the U.S. real estate, banking and mortgage industry to his new role. 

Lender Processing Services Inc. reported June 2012 month-end mortgage performance statistics derived from its loan-level database representing approximately 70 percent of the overall market. With the June 2012 month-end data, LPS has updated its extrapolation methodology to incorporate improved estimates of market size, which includes higher coverage of government and subprime products and increases LPS’ estimate of the total first lien residential mortgage market by three percent to 50.4 million. 

The Ohio Association of Realtors reports that the number of single-family homes and condominiums put under agreement in June rose for the 14th consecutive month compared to the results from the prior year. Ohio’s June Pending Home Sales Index of 121.6, a forward-looking indicator based on contract signings, rose 16.5 percent from the June 2011 index of 104.4. 
 

Like any collective group of individuals, your coalition of individual organizations is going to need some structure. The two main questions are: What will that structure look like and how will the organization operate? 

The number of California homes entering the formal foreclosure process dropped in the second quarter to its lowest level since early 2007. The decline stems from a combination of factors, including an improving housing market, the gradual burning off of the most egregious mortgages originated from 2005 through 2007 and the growing use of short sales, a real estate information service reported. 

CoesterVMS leased a new 6,000 square foot operations center in Virginia Beach, Va. The facility, which can accommodate up to 60 new employees, is part of the company’s plan to grow and expand its volume throughout the remainder of 2012 and into 2013.   

A Utah man pleaded guilty to participating in the sophisticated multimillion-dollar mortgage fraud scheme linked to properties at a Putnam County, W.Va., subdivision in early 2006 along with co-conspirators who obtained inflated appraisals from two local appraisers and subsequently sent the appraisals on to Morris in Salt Lake City.