HUD official talks appraisal bias task force

Housing Wire

A liberal think-tank, regulators, the government-sponsored enterprises, the President of the United States, even fintech firms have all called attention to appraisal bias. Marcia Fudge with leading an inter-agency task force to root out bias in appraisals.

Lenders see appraisal modernization as a top priority

Housing Wire

A Fannie Mae survey published in mid-May found that mortgage lenders see value in appraisal modernization, specifically in the implementation of non-traditional appraisals and inspection-based appraisal waivers. Implementing desktop appraisals would help alleviate this.

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Desktop appraisal option to start in March

Housing Wire

Desktop appraisals will become an option for some agency-backed loans submitted after March 19. In addition to those specific exclusions, a desktop appraisal may not be used if Fannie Mae’s automated underwriting system, Desktop Underwriter, flags it as “ineligible.”.

Appraisal coalition pledges to combat bias and discrimination

Housing Wire

The Appraisal Institute , American Society of Appraisers , American Society of Farm Managers and Rural Appraisers , and the Massachusetts Board of Real Estate Appraisers announced a concerted effort to combat unconscious bias and discrimination in a release on Friday.

California couple sues appraiser for race discrimination

Housing Wire

A San Rafael, California real estate appraiser is being sued for allegedly undervaluing a home by almost 50% because the homeowners are Black. Miller of Miller & Perotti Real Estate Appraisal and AMC Links LLC , an appraisal management company headquartered in Lehi, Utah.

The appraisal gap is complicating deals across the country

Housing Wire

Unfortunately, the appraisal put the house’s value roughly $50,000 below than what she paid. Linda had a sizable downpayment but still needed to find a way to close the appraisal gap. She recently had a deal fall apart due to appraisal.

How appraisers value homes in a hot housing market

Housing Wire

Sheridan’s listing appraised at the contract price, and the deal went through without a hitch. The challenge is that the sales data you’re looking at is dated,” said Shawn Telford, chief appraiser at CoreLogic.

The appraisal industry’s hidden hand

Housing Wire

He started contracting with home mortgage lenders to appraise the value of the property tied to a loan. “It He reentered the appraisal business through a different door. The outcome was a settlement, the Home Valuation Code of Conduct, or, as appraisers swiftly dubbed it, havoc.

Appraisal firm, loanDepot sued by Black couple for bias

Housing Wire

A Maryland couple is suing appraisal firm 20/20 Valuations , its appraiser and mortgage lender loanDepot after their home was appraised at a far lower value than it was a few months later when they removed indications that a Black family lived there.

The appraisal industry’s governance problem

Housing Wire

That was the startling and totally hypothetical analogy made, based on the current structure of the Appraisal Foundation , in a scathing report released this week. Our analysis finds that the appraisal industry has operated in a relatively closed, self-regulated framework.”.

Freddie Mac finds appraisals in minority areas fall short

Housing Wire

Appraisals in Black and Latino neighborhoods are more likely to fall short of the contracted sale price, a Freddie Mac study of 12 million appraisals found. In Black census tracts, 13% of home appraisals failed to reach the contracted sales price.

FHFA takes a swing at racial bias in appraisal

Housing Wire

Appraisers are not supposed to base their analysis on protected classes, and in the Uniform Residential Appraisal Report, appraisers attest that “race and the racial composition of the neighborhood are not appraisal factors.”

HUD settles with JPMorgan over appraisal bias case

Housing Wire

The finance giant will also begin training home lending advisors and client care specialists in the reconsideration of value process and fair lending issues related to appraisals. HUD is committed to ensuring that all housing, whether for rent or for sale, is free from discrimination.”.

Appraisal bias plan promises barrage of actions in the near term

Housing Wire

The Department of Housing and Urban Development ’s long-awaited action plan on appraisal bias outlines administrative actions the federal government will quickly take to address mis-valuations. It also acknowledged the lack of publicly available historical appraisal data.

Opinion: A unified approach for reducing appraisal bias

Housing Wire

By combining the power of emerging technologies like artificial intelligence (AI) and machine learning (ML) with a true commitment to diversity at every stage of the valuation chain, we can build a consciously unbiased appraisal system that delivers more equitable and accurate conclusions.

What is a home appraisal gap?

Housing Wire

When you go to buy a home , your mortgage lender will almost always order a home appraisal. Scenario 1: Your home appraises at your full offer price. Many times, the home appraisal goes off without a hitch. Scenario 2: Your home appraisal comes in low.

Appraisal Logistics brings 2 new execs on board

Housing Wire

Appraisal management technology and compliance solutions provider Appraisal Logistics has named Anthony Savala as senior vice president of sales and Nicholas Turansky as national account director. Anthony Savala, SVP at Appraisal Logistics.

2022 Appraisal Outlook: Appraisers Cast Optimistic Eye On Coming Year

McKissock

Appraisers recently contacted by McKissock tend to agree that the profession will go generally well in 2022, with no major changes to the real estate market and no events on the horizon that could seriously upset appraisers’ business. Opportunities for appraisers in 2022.

Will AI solve the problem of appraisal bias?

Housing Wire

Inaccurate appraisals and valuations can impact the type of mortgage financing a potential buyer receives, whether a seller commands a fair value when selling their home, or whether a homeowner has opportunities to tap into home equity. The post Will AI solve the problem of appraisal bias?

How to Avoid and Respond to Appraisal Board Complaints

McKissock

Disciplinary complaints against appraisers are becoming more and more common. From accusations of bias or discrimination to failure to disclose significant real property appraisal assistance, it can be really alarming if a licensing board reaches out and notifies you of a complaint.

5 Rules for Appraising Barndominiums

McKissock

During the appraisal and appraisal report review processes, barndominiums require special consideration, given that they are typically unique to a subject neighborhood. These appraisals take more time and effort, therefore you should charge more for them.

12% of home sales fall through due to low appraisals

Realty Biz

But many have found that the tactic of making an aggressive bid to beat out other offers backfires, as the appraised value of the home falls well below the agreed price. So, once a bid has been accepted, the mortgage company will send an appraiser to go and value the home.

Here are 7 trends to watch in the 2022 appraisal market

Housing Wire

The tides of the mortgage industry are changing as we head into 2022, and just like the sand under the waves, we can expect the appraisal landscape to shift along with it. Appraisers, like many other service providers, must adapt to market changes to accommodate their clients’ needs.

Building Your Appraisal Team: Advice from Top Appraisers

McKissock

Building a successful appraisal team means considering your business strategy and your corporate culture, and hiring accordingly. Some appraisers look for associates who specialize in certain areas of the appraisal business when adding someone to the team.

6 Tips for Appraising New Construction Homes

McKissock

When appraising new construction homes, you must take into consideration certain features and attributes that don’t necessarily apply to re-sales. Some of the best construction cost data is compiled by you as you complete new construction appraisal assignments.

What To Expect as Appraisal Gaps Grow

Keeping Current Matters

Shawn Telford, Chief Appraiser at CoreLogic , elaborates : “The frequency of buyers being willing to pay more than the market data supports is increasing.”. It’s called an appraisal gap , and it’s happening more in today’s market than the norm.

4 Resources for Appraising Accessory Dwelling Units

McKissock

Perhaps one of the most challenging situations a residential appraiser can encounter in their daily practice is a subject property that has an accessory dwelling unit (ADU). Recorded webinar: Appraising Accessory Dwelling Units Simplified (exclusive to members).

Top Ways to Defend Your Work When the Appraised Value Comes in Under Sales Price

McKissock

As a real estate appraiser, you’ve likely encountered assignments in which the purchase price is not supported by the available comps. To find out, we asked appraisers, “What’s your top tip for defending your work when the appraised value comes in under sales price?”

Fannie Mae and Freddie Mac Desktop Appraisals: Your Questions Answered

McKissock

In January 2022, Fannie Mae and Freddie Mac announced a desktop appraisal option that goes live in mid-March 2022. McKissock does not endorse any position regarding whether appraisers should accept or reject desktop appraisal assignments. What is a desktop appraisal?

What AVMs can and can’t do in the appraisal process

Housing Wire

Fannie Mae recently announced that it will begin to “include a desktop appraisal option in Desktop Underwriter beginning March 19, 2022. Automated Valuation Models (AVMs) are commonly used today in the mortgage industry to help support the appraiser’s concluded value.

Bifurcated Appraisal: An Enhanced Desktop Appraisal

McKissock

There are many articles, blogs, and opinion papers that either support or reject bifurcated and hybrid appraisals, which contributes to a great deal of confusion. Here at McKissock Learning, we do not support any position regarding bifurcated and hybrid appraisals.

5 Tips for Appraising Green Homes

McKissock

Green homes require special consideration during the appraisal and appraisal report review processes, given that they are typically unique to a subject neighborhood. Here are five tips for appraising green homes that you can use as guidance.

Knowledge Is Power When It Comes to Appraisals and Inspections

Keeping Current Matters

Buyers in today’s market often have questions about the importance of getting a home appraisal and an inspection. Here’s a breakdown of what to expect from the appraisal and the inspection, and why each one can potentially save you a lot of time, money, and headaches down the road.

Soaring Home Prices Are Roiling Appraisals and Upending Sales

Realtor

The gulf between contract prices and appraised values highlights the risks to buyers in the current market, especially those stretching their budgets to win a bidding war. Trends Home appraisal The Wall Street Journal

What’s New in Appraisal Membership: March 2022

McKissock

McKissock’s Unlimited Learning Members enjoy 24/7 access to a wide variety of online appraisal classes, webinars, videos, podcasts, checklists, job aids, and other resources. The Appraisal Foundation 2022 Q1 Update. You’ve got appraisal industry questions, we’ve got answers!