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Do you anticipate a shortage of appraisers?
Poll from www.appraisalport.com click there to vote on the new poll -
As a follow-up, if a shortage of appraisers does develop in the future, what do you think will be the most likely consequence? Note: there may be a pop-up at the bottom of the page for the poll.
My comment: I have been predicting a residential appraiser shortage during the boom times since the AQB proposed the college degree requirements quite a while ago. In the past decades, lenders have always handled the ups and downs by hiring and firing armies of trainees. Then fee appraisers started doing it for them after licensing. Now, lenders will not accept appraisals from trainees and very few fee appraisers is hiring trainees, even those that are swamped with work. Any of them could change that tomorrow and fix the problem. Hmmm...
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Doddy Frankenstein continues to smother mortgage lending
American Bankers Association survey: 78% say less credit available
Excerpt:
Ninety percent of the typical bank's mortgage loans made last year were "qualified mortgages," according to the American Bankers Association's 22nd annual Real Estate Lending Survey.
The survey results, released today, revealed that nearly 80% of respondents expect the Consumer Financial Protection Bureau's mortgage lending rules will continue to cause a reduction in credit availability with 19% characterizing the impact as severe.
"As expected, the ability-to-repay and QM rules have dampened the housing market recovery," said Robert Davis, ABA executive vice president. "Combine that with new mortgage disclosures, which are just around the corner, and we'll continue to see a slow down in what should be the ideal time to buy a home."
http://www.housingwire.com/articles/34136-dodd-frank-continues-to-smother-mortgage-lending
My comment: Maybe someday borrowers will be able to buy and refi easier and create more work for appraisers...
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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, go to www.mbaa.org
Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to http://www.appraisaltoday.com/products.htm or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.
Mortgage applications increased 8.4 percent from one week earlier
according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending June 5, 2015. The previous week's results included an adjustment for the Memorial Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 8.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 19 percent compared with the previous week. The Refinance Index increased 7 percent from the previous week. The seasonally adjusted Purchase Index increased 10 percent from one week earlier. The unadjusted Purchase Index increased 20 percent compared with the previous week and was 15 percent higher than the same week one year ago.
"Mortgage application volume rebounded strongly in the week following the Memorial Day holiday, indicating that the holiday had a larger impact on business activity than originally assumed. Comparing volume over the past two weeks, purchase activity is up over 6 percent, while refinance activity is down 5 percent. Strong job gains in May and initial signs of wage growth are supporting the purchase market," said Mike Fratantoni, MBA's Chief Economist.
The refinance share of mortgage activity remained unchanged at 49 percent of total applications from previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.3 percent of total applications.
The FHA share of total applications decreased to 14.3 percent from 14.9 percent the week prior. The VA share of total applications decreased to 11.5 percent from 12.0 percent the week prior. The USDA share of total applications increased to 1.1 percent from 1.0 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.17 percent, its highest level since November 2014, from 4.02 percent, with points increasing to 0.38 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.15 percent, its highest level since October 2014, from 4.01 percent, with points increasing to 0.37 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.90 percent, its highest level since November 2014, from 3.77 percent, with points decreasing to 0.19 from 0.21 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.37 percent, its highest level since November 2014, from 3.27 percent, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 3.06 percent from 2.97 percent, with points remaining unchanged from 0.50 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
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