ESTATE


Housing Market Faces New Rules for Appraisals
2009/04/20, 4:30 pm
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The housing industry is facing new national rules for real estate appraisals, which will ban mortgage brokers from ordering valuations and divert more business to third-party appraisal management companies.

Lenders seeking to sell their loans to Fannie Mae and Freddie Mac will have to adopt the home valuation code of conduct; but they have expressed some concern about the new standard, which takes effect on May 1.

Lenders can still focus on FHA financing, considering the agency has its own appraisal rules and does not plan to adopt the code of Fannie Mae or Freddie Mac.

Source: Realty Times, Kenneth R. Harney (04/20/09)



Appraisers say BPOs hurt property values
2009/03/31, 10:06 am
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An increasing number of appraisers and consumer experts say unrealistically low price estimates caused by short sales and bank-owned foreclosures are artificially depressing property values.

They are particularly critical of broker price opinions (BPOs), which they say are used because they cost less than property valuations by licensed appraisers.

David Berenbaum, executive vice president of the National Community Reinvestment Coalition, has asked Congress to outlaw using BPOs as a substitute for appraisals in distressed property transactions.

Defenders of BPOs say that real estate professionals know the local area and can do a realistic appraisal accurately.

The National Association REALTORS® said it intends to issue a policy statement in May, but it currently takes no position.

Source: Washington Post Writers Group, Kenneth R. Harney (03/28/2009)

Read More
4 Dangers of Broker Price Opinions

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Appraisers upset over new rules
2009/02/19, 8:19 pm
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Appraisers Upset Over New Rules

From Ft. Worth Texas, another article on the Home Valuation Code of Conduct:

Money quote:

Kenneth Jones, a Realtor as well as a 16-year veteran appraiser, said his options are limited if he wants to continue to work: join a pool.“What’s so funny is that bad appraisers have been joining pools for years because they can’t get enough business to make it as an independent appraiser,” Jones said. “But now they’ll be on the same playing field as the good appraisers.”

Management companies also typically charge appraisers to be included in pools and Jones said that cost will hurt many appraisers. …

…“I know some really good appraisers who have gotten out the business because of all of this,” Jones said. “The local impact, just like the national impact, could be huge. And I’m not sure if that will be in a good way or not.”

 

Another story about appraisers, where the big concern is the low fees at AMC’s.