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News By Edition
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Valuation Review Edition
September 15, 2014
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How to handle ‘toxic’ assignments
Posted Date: Monday, September 8, 2014
It takes a lot to be an appraiser these days. Not only are appraisers’ valuations being scrutinized more intensely than ever before, but faster turn time requirements and other AMC pressures have resulted in a full workload for appraisers on each assignment.
So the need to be an environmental expert on top of all the other requirements appraisers face isn’t something that most in the industry want to add.
Luckily, it doesn’t take a Ph.D. in chemistry to be a vital asset to lender clients when potential environmental issues do arise.
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Understanding appraiser background checks
Posted Date: Monday, September 8, 2014
Appraiser background checks are becoming an essential component of lenders’ third-party risk management because of the heightened compliance environment that exists today.
Besides the impending regulations from the Appraiser Qualifications Board (AQB) of The Appraisal Foundation that mandate state appraiser regulatory agencies perform background screening for all candidates for a real property appraiser credential beginning Jan. 1, many lenders and AMCs have adopted appraiser background screening policies themselves as a part of best practices.
However, with the new policies in place and on the horizon, many appraisers across the country have been left to wonder how the new policies will affect them.
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Appraisal Institute releases alternative appraisal standards
Posted Date: Tuesday, September 2, 2014
The Appraisal Institute, the nation’s largest professional association of real estate appraisers, announced Aug. 26 the availability of its Standards of Valuation Practice (SVP).
The SVP were developed to serve as an alternative for valuation professionals where national or other standards are not required.
“This is a huge step forward for the real estate valuation profession,” Appraisal Institute President Ken Wilson said. “The Standards of Valuation Practice will provide a high-quality, straightforward option for appraisers that is principles-based and not rules-based.”
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USPAP changes proposed for 2016-17
Posted Date: Wednesday, September 3, 2014
The Appraisal Foundation’s Appraisal Standard’s Board (ASB) has issued its Third Exposure Draft of proposed changes for the 2016-17 edition of the Uniform Standards of Professional Appraisal Practice (USPAP).
All interested parties are encouraged to comment in writing to the ASB before Oct. 10.
The Third Exposure Draft focuses on several revisions to current USPAP guidelines. These changes pertain to: The definition of Report, edits to eliminate confusion regarding report drafts and the Record Keeping Rule, proposed revisions to Standard 3, retirement of all Statements on Appraisal Standards, proposed revisions to the Confidentiality section of the Ethics Rule, proposed changes to reporting standards, as well as other edits to improve clarity and enforceability of USPAP.
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Report shows how much lenders pocket per loan
Posted Date: Tuesday, September 2, 2014
A new report from the Mortgage Bankers Association shows that lenders were back in the black in the second quarter for the loans they originated. Keep reading to see how lucrative mortgage loans were on average for the nation’s lenders.
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Mother-daughter duo busted for appraisal scheme
Posted Date: Wednesday, September 3, 2014
A mother-daughter duo could be spending some quality family time in prison after their roles in a real estate appraisal scheme were exposed.
The United States Attorney’s Office for the District of Connecticut announced Aug. 25 that Ann Hils, 54, of East Hampton, Conn., pleaded guilty to one count of conspiracy to commit mail and bank fraud related to an appraisal scheme.
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Whose appraisal is it anyway?
Posted Date: Tuesday, September 2, 2014
A California court recently weighed in on whether a financial institution owes a duty of care to a borrower in preparing a property appraisal — or whether the appraisal is conducted for the lender’s benefit.
In the case of Monique Harris v. Bank of America NA, et al., (Court of Appeal, Fourth District, Division 2, California, No. E054887), a homebuyer who alleged her builder, mortgage lender and appraiser engaged in an illegal inflated appraisal scheme faced an uphill battle as she argued that the companies owed her a certain duty of care. “There is a case here,” plaintiff Monique Harris argued as her lawsuit faced two separate courts, but ultimately, Harris “forfeited” her arguments, according to the appellate court, which relied on a 23-year-old decision in an appraisal case.
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New appraisal review tool scores suitability of comps
Posted Date: Tuesday, September 2, 2014
A provider of collateral evaluation and technology for the mortgage industry announced it has enhanced its flagship appraisal quality technology with new software that scores and ranks up to 100 or more comps to allow reviewers to assess the suitability of the appraiser’s comps.
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AVM integration to help facilitate loan origination
Posted Date: Tuesday, September 2, 2014
A provider of collateral valuation services announced that its proprietary AVM has been integrated with new loan origination software to help users improve loan marketing, prequalification, origination and processing. Keep reading to see how the integration is slated to improve the lending process.
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Former FHFA director addresses Fannie, Freddie
Posted Date: Monday, September 8, 2014
There has been no shortage of talk in Congress about what to do with Fannie Mae and Freddie Mac, as both Democrats and Republicans have proposed various pieces of housing reform legislation over the last year centered around what role the government sponsored enterprises (GSEs) should play in the U.S. market.
The GSE debate has been a hotly contested issue since Fannie and Freddie were placed into government conservatorship in 2008 under the Federal Housing Finance Agency (FHFA) after being left financially devastated in the wake of the housing collapse.
But now that the GSEs are back on their feet and turning huge profits, the talk of restructuring has been placed on the front burner again.
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AMC announces expansion
Posted Date: Monday, September 8, 2014
A national appraisal management company has announced that it will be expanding its business to respond to the increased market demand for AMCs and to accommodate the uptick of new client accounts. Keep reading to learn which AMC is poised for growth.
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Appraisal services provider, AMC subsidiary acquired
Posted Date: Monday, September 8, 2014
A leading provider of broker price opinions, property appraisals, regulatory and compliance services, valuation technology and local market analytics has been acquired, according to a Sept. 4 announcement. The appraisal services provider’s AMC subsidiary also will be included in the deal. Keep reading for the details.
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VantageScore names SVP
Posted Date: Monday, September 8, 2014
VantageScore Solutions LLC, the company behind the VantageScore credit scoring model, which provides lenders and consumers with credit scores across all three national credit reporting companies, announced the hiring of a new senior vice president. Read on for the details.
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Group backs appraisal proposals in face of new requirements
Posted Date: Wednesday, September 3, 2014
A trade group representing federal credit unions backed the National Credit Union Administration’s (NCUA) plan to amend certain rules regarding appraisals. In late June, NCUA proposed a rule revising two appraisal-related regulations to reduce regulatory burden and reflect certain Consumer Financial Protection Bureau (CFPB) requirements.
Lender-furnished appraisals
Lenders are required to provide mortgage applicants with free copies of all appraisals and other home-value estimates under CFPB amendments to Regulation B that took effect Jan. 18. In finalizing its proposal, the CFPB scrapped provisions of a 1993 Federal Reserve rule that exempted credit unions from certain appraisal delivery requirements. Therefore, in addition to the CFPB’s appraisal-related requirements, federal credit unions currently are obligated under NCUA rules to make copies of appraisals available to their members for up to 25 months.
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FHFA proposal pushes for Fannie, Freddie to support low-income borrowers
Posted Date: Wednesday, September 3, 2014
The Federal Housing Finance Agency, the regulating agency of Fannie Mae and Freddie Mac, proposed a rule Aug. 29 that would establish housing goals for Fannie and Freddie for 2015-1717. Keep reading to see how the proposed rule is slated to help lower-income borrowers.
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Mortgage services provider announces new role for industry veteran
Posted Date: Wednesday, September 3, 2014
A provider of on-demand software solutions and services for the residential mortgage industry announced Aug. 26 that the company has appointed an industry veteran with 25 years of experience to a new role within the company. Keep reading for the details.
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Survey shows which assignments generate highest fees
Posted Date: Tuesday, September 2, 2014
The Utah Association of Appraisers (UAA) recently conducted a survey of mortgage lenders and licensed and certified residential real estate appraisers in the state to find out how appraisal fees differed last year for five different appraisal types: Form 1004 (full appraisal); Form 1004 FHA (full appraisal for FHA); Form 1025 (small [1 to 4 units] residential income property appraisal); Form 1073 (individual condominium unit appraisal); and Form 2055 (exterior-only inspection appraisal).
The UAA sent the survey to all licensed and certified real estate appraisers in Utah, as well as to all licensed mortgage lenders, over the course of eight weeks earlier this spring. Six hundred seventy-one lenders and 576 appraisers participated in the survey. The results do not factor in assignments involving third-party appraisal management companies (AMCs).
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