Real Estate Analysis and Commentary.

Standardized Property Measuring Guidelines from Fannie Mae 04/01/2022

Appraisers are now required to use the Square Footage-Method for Calculating: ANSI® Z765-2021 (American National Standards Institute®)
measuring standard for measuring, calculating, and reporting above and below grade square footage(s) to determine gross living area (GLA) and
non-GLA areas of subject properties for appraisals requiring interior and exterior inspections with effective dates of April 1, 2022 or later on loans
sold to Fannie Mae.

All footprint sketches and floor plans must be computer-generated (not hand-drawn), indicate all the dimensions needed to calculate the above/
below grade and finished/unfinished square footage of each level and other areas such as a garage, and show the calculations to demonstrate
how the square footage was derived.

Reference:
https://singlefamily.fanniemae.com/media/30266/display#:~:text=Appraisers%20are%20now%20required%20to,areas%20of%20subject%20properties%20for

VaCAP has been informed of a Discussion Draft of a Bill introduced into the US House of Representatives that will directly impact every appraiser, appraiser trainee, appraisal firm, and appraisal management company..

 

From the discussion draft, the purpose of the Bill:

“To establish an independent agency to be known as the Federal Valuation Agency and real estate valuation standards and appraiser criteria, including promoting a fair, unbiased, transparent, repeatable valuation process, and for other purposes.”

VaCAP encourages everyone to read, analyze and think through how this will impact you and your business.  It does not matter if you agree or disagree with the content of the Bill, it is important to discuss the the content with all of your US Representatives. Our Representatives will be the ones who ultimately vote on this Bill and they need to understand what they are agreeing to. More importantly, how will this impact the public.

Ideally, having a face to face conversation is preferred, but realizing that is not an easy task for most, email is convenient and provides documentation of your opinions and observations. However, there is no guarantee your representative will actually see the email. Most have staff that filter and respond to email.

Go old school and send a letter. This is more likely to actually been seen and read by your Representative.

We realize some appraisers are still very busy and some have started to slow a bit. If you are able to have a face to face conversation with your Representatives, please follow up highlighting your conversation either by email or letter.

The reality is the more our Representatives hear about the Bill, the more they pay attention. What we don’t want to happen is this bill, or any bill for that matter, to be voted on by our Representatives that have no idea what they are voting on.

Find you Representatives here. https://www.congress.gov/members/find-your-member

You have a voice, please use it!

https://vacaponline.com/new-development-pay-attention/

ACI renewal 2022 or switch to Total?

ACI fees have doubled. Not happy about that. It has not crashed much lately but still does crash. The subscription has changed to a per computer yearly license even though I purchased over ten licenses ten years which was supposed to be a lifetime. I am still scratching my head on this one. I requested to speak to a manager because I feel I am getting stiffed. Alamode has more features such as total mobile and the new comps validation data integrator called "QuickSource," which seems like a good idea (wonder where they're getting the peer data from?) The bottom line is about the cost, and I can not justify paying over $1,799. The price is the initial elite membership discount, which goes up to $2,198 after the first year's discount hook; the stated prices a year for software that only gives customer support and updates now and then is highway robbery when you think about it. Windows 11 is the operating system that allows you to control the computer. They update the operating system regularly at no extra cost. The purchase price for Windows 11 with updates is $109.99 as of 03/17/2022 with no renewal fees or yearly subscription. Why do we have to pay 2k a year for renewals? If I estimate the lower fee I paid ACI over the years for 20 years, that's 13k, not to mention the extra cost for flood, location maps, and other add-ons. At the rate Alamode is going, I will be paying 40k for 20 years. Not cool. I know some would say comparing an operating system to an appraisal software is not fair, but I would argue it is fair because both monologize your business somehow. Yes, you can change software companies, but who has the time or wants to change software vendors when you are used to the one you are using. It would take a large change to make appraisers want to switch, which is why Alamode is offering to pay off your contract with a competitor because they know once they got you, that payoff will be made back ten folds (marketing 101). It is all starting to get on my nerves.

Signed, concerned appraiser.

Why the DC housing market is so competitive for buyers

https://wtop.com/business-finance/2021/01/why-the-dc-housing-market-is-so-competitive-for-buyers/

Question for an appraiser Episode One
In this episode the topic is "Should an Investor have a property or potential project appraised prior to purchasing?"
https://youtu.be/CvVt2Cfr8h8

FHA TO REQUIRE SECOND APPRAISAL FOR CERTAIN REVERSE MORTGAGES

WASHINGTON – The Federal Housing Administration (FHA) today announced that it will begin requiring lenders originating new Home Equity Conversion Mortgages (HECMs), commonly referred to as reverse mortgages, to provide a second property appraisal under certain circumstances. FHA is instructing lenders to provide a second independent property appraisal in cases where FHA determines there may be inflated property valuations.

For more reference:

https://www.hud.gov/press/press_releases_media_advisories/HUD_No_18_111 

CoreLogic: Mortgage fraud risk spiked in the second quarter.
 
There was a 12.4% year-over-year increase in fraud risk in Q2

There was a significant increase in mortgage fraud risk at the end of the second quarter of 2018, according to Corelogic’s latest Mortgage Application Fraud Risk Index. According to the Mortgage Fraud Report, there was a 12.4% year-over-year increase in fraud risk at the end of the second quarter of 2018.
The Mortgage Fraud Report analyzes the collective level of loan application fraud risk experienced in the mortgage industry each quarter.
 
See more: https://www.housingwire.com/articles/46820-corelogic-mortgage-fraud-risk-spiked-in-the-second-quarter