Thursday, December 24, 2015

Still Kicking

Believe it or not, I'm still kicking. There is much to come in the Appraisal World for the New Year. In the meantime......

Saturday, September 6, 2014

Home Valuation Code of Conduct?

Since it has been so long since the last post, I should have been able to come up with something more more applicable to the current state of the appraisal profession, but this is in interesting piece. The Research Department of the Federal Reserve Bank of Philadelphia published this nifty little study of the impact on the Home Valuation Code of Conduct (HVCC) on Appraisal and Mortgage Outcomes.

According to the study, despite all the claims by Fannie and Freddie, touting the benefits, research of the effects since implementation is nearly non-existent. The authors claim this study is the first empirical examination of the impact of the first major appraisal rule, the now sunset, Home Valuation Code of Conduct. It measure the share of "low" appraisals (as compared to the purchase price) from the first quarter of 2006 through the third quarter of 2012. There is also a chart on page 23 of the study showing the distribution of high and low appraisals pre- and post-HVCC. The study defines Significantly High Appraisals as those 5% of more above the contract price, and Significantly Low Appraisals as one which is at least 5% below the contract price.

One aspect of appraisals NOT examined pre- and post-HVCC, is appraisal quality.

The Study is at THIS LINK on the Philadelphia Fed site, and just below. Here is one of the graphs.

Sunday, July 20, 2014

Appraisal Subcommittee for Development of Regulations

The Appraisal Subcommittee Advisory Committee for the Development of Regulations will hold its next meeting on July 22-23, 2014 at the Embassy Suites Hotel, 1900 Diagonal Road, Alexandria, VA 22314.  

The Meeting will start at 9:00 a.m. and end at 5:00 p.m. on both days. The Meeting Notice will be published in the Federal Register at least 15 days prior to the Meeting.  The first Meeting was held on April 16-17, 2014 in Washington, DC.  The October Meeting will be held on October 15-16, 2014 in Washington, DC (location to be determined) and the January 2015 Meeting dates and location are to be determined. 

Here is the Agenda for the meeting.

Minutes of the April 16 - 17, 2014 meeting are here.

The meetings are open to the public. With a new laptop and a twitter account, I'll make an attempt to provide some updated.

Tuesday, April 1, 2014

See You in Washington, D.C. - April 16 - 17, 2014

Tucked into page 816 of the Dodd-Frank Act is a little noticed amendment to the Financial Institutions Reform Recovery and Enforcement Act of 1989.

(d) REGULATIONS.—Section 1106 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3335)
is amended—
(1) by inserting ‘‘prescribe regulations in accordance with
chapter 5 of title 5, United States Code (commonly referred
to as the Administrative Procedures Act) after notice and opportunity
for comment,’’ after ‘‘hold hearings’’; and
(2) at the end by inserting ‘‘Any regulations prescribed
by the Appraisal Subcommittee shall (unless otherwise provided
in this title) be limited to the following functions: temporary
practice, national registry, information sharing, and enforcement.
For purposes of prescribing regulations, the Appraisal
Subcommittee shall establish an advisory committee of industry
participants, including appraisers, lenders, consumer advocates,
real estate agents, and government agencies, and hold meetings
as necessary to support the development of regulations.’’.

Just short of four years after the Dodd-Frank Act became law, the Appraisal Subcommittee has created the Appraisal Subcommittee for Development of Regulations. Members have been appointed by the ASC Chairman, Arthur Lindo. Imagine my surprise to find the letter below in my email. We have our first meeting April 16 - 17, 2014 in Washington, D.C. Details at this LINK.

Friday, March 21, 2014

UPDATE - Minimum Requirements for Appraisal Management Companies - Rule in the Works

UPDATE! 03/24/2014- Link to proposed rule is available at the end of this post.

During their regular monthly board meeting on March 20, 2014 the National Credit Union Administration proposed an interagency rule to implement minimum requirements for state oversight of appraisal management companies. Six other federal agencies are expected to join in support of the proposal. These include the Federal Reserve, CFPB, Treasury Department, FDIC; Federal Housing Finance Agency and Office of the Comptroller of the Currency.

The text of the proposed rule will not be available until all the agencies approve the language, but the NCUA Board Action Memorandum states:

The minimum requirements in the proposed rule would apply to States that elect to establish an appraiser certifying and licensing agency with the authority to register and supervise AMCs (participating States). Under the proposed rule, participating States would have to require that AMCs: (1) register in the State and be subject to its supervision; (2) use only State-certified or licensed appraisers are used for Federally related transactions (real estate-related financial transactions overseen by a Federal financial institution regulatory agency that require appraiser services); (3) require that appraisals comply with the Uniform Standards of Professional Appraisal Practice; (4) ensure selection of a competent and independent appraiser; and (5)establish and comply with processes and controls reasonably designed to ensure that appraisals comply with the appraisal independence standards in the Truth in Lending Act.

The proposed rule would direct AMCs that are subsidiaries of banks and regulated by a Federal financial institution regulatory agency to meet the same minimum requirements, although such AMCs would not be required to register with a State.

We'll keep our eyes open, and post the proposed rule as soon as we see it published.

UPDATE! The proposed Interagency Rule is available at THIS LINK.

Friday, March 14, 2014

Remembering Jon

In honor of my nephew, Jon, this a repeat of a post from March 15, 2010. We think of you every day.

It's a sad day in the Appraiser Active family. My nephew, Jonathan Porto, a Marine, was killed yesterday in a non-combat accident in Afghanistan, near Marjah. My sister, Rachel, his mother, Jon's wife, Rachel Jewell Porto, and their two month old daughter, Ariana, could use your prayers. Jon was 26.

The Hillsborough County Sheriff's Office provided an escort for the motorcade from MacDill Air Force Base to St. Petersburg. The Tampa Bay Community showed their respect for Cpl Jonathan Porto.

Saturday, March 8, 2014

FDIC and LSI Appraisal, LLC Settle

The start of 2014 has been very interesting for Appraiser Active. The assignments are challenging and interesting, The opportunity to work with some awesome appraisers from around the country has been a real treat. Unfortunately, the nature of the assignments, and time demanded by them has kept me from this page.

My blogging time is still very limited, and protective orders keep me from posting quite a bit, but many readers will be interested in the pdf at this link.

Here is a preview. Draw your own conclusions.

Monday, December 23, 2013


Yes, I know it looks like I've forgotten you all, and this blog. Nothing could be more distant from the truth. Business has been overwhelming, and the nature of the business (litigation) limits the subject matter appropriate to discuss.

When that settles down a bit, I'll have much to say.

In the meantime, all the best to you for a great Holiday Season.

Sunday, November 3, 2013

Valuation Review - 2013 Voice of the Appraiser Survey

Just in case you missed it, use this LINK to download a pdf copy of the Valuation Review - 2013 Voice of the Appraiser Survey.

There is much to see, but this stands out:

"As an appraiser, how would you rate the typical appraisal fee you are paid?

  • 8.6% - Unlivable
  • 53.8% - Low
  • 12.1% - Above Average
  • 25.5% - Customary and Reasonable
Feel free to comment and let me and others know what you think.

Tuesday, August 27, 2013

Fannie - Freddie UAD Update

In an August 27, 2013 release, Fannie Mae and Freddie Mac notify mortgage sellers, services, originators, and appraisers of impending changes to the Uniform Mortgage Data Program.
Fannie Mae and Freddie Mac (the GSEs) will continue to convert several of the current Uniform Appraisal Dataset (UAD) compliance warning edits to fatal UAD edits in the Uniform Collateral Data Portal® (UCDP®). Phase one was implemented on June 22, 2013. The second phase will be implemented in early 2014, with warning edits for the following data fields converting to fatal UAD edits:

  • Quality of Construction Rating (subject and comparables)
  • Location Rating (subject and comparables)
  • View Rating (subject and comparables)
  • Condition Rating (subject and comparables)
Each of the data fields above has associated UAD edits that will be returned in the UCDP if the data provided is incomplete or the format is invalid as defined in the Fannie Mae and Freddie Mac UAD Technical Specifications. When these warning edits are converted to fatal UAD edits, if one or more of these edits is issued it will result in Hard Stop 401 (UAD Compliance Check Failure) and a “Not Successful” status will be issued in the UCDP. If the lender or appraisal vendor receives a “Not Successful” status in the UCDP, the lender or vendor must resubmit a corrected appraisal with the required data in the correct format to ensure a “Successful” status. If the UCDP issues a “Not Successful” status for an appraisal, the loan will not be eligible for delivery to either GSE.
The full release is available at the link above or after the jump. For those of you involved in mortgage lending appraisal assignments, make sure you do not miss this paragraph:
As communicated in the January UAD update, the GSEs intend to discontinue accepting appraisals in PDF and other alternative appraisal formats, and to accept only the MISMO file format in the UCDP. Our goal is to retire UCDP acceptance of the ACI XML and AIReady formats, and the PDF extraction services in 2014. We will provide at least six months’ notice of the retirement date once it has been determined. We continue to work closely with lenders and vendors using these formats to ensure a smooth migration path.

My condolences to everyone required to deal with this mess. Full release after the jump.