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Appraiser whistleblowers!!
By Peter Christensen, www.liability.com
Source: Appraisal Institute quarterly magazine
Excerpts:
A few appraiser whistleblowers have reaped huge rewards - but the hurdles were steep
In my estimation, the highest paid real estate appraiser last year was a gentleman in California who received $56 million for his role as a whistleblower. He revealed allegedly fraudulent appraisal practices that he both performed and witnessed other appraisers perform at the appraisal firm where he was employed. He was awarded the bounty in December after the U.S. Department of Justice settled the case he initiated for $350 million.
... , and generally ignoring the impact of severe property condition problems. He said he was compelled to do these things at the direction of management, and that when he properly performed appraisals, the firm disregarded them and ordered new appraisals.
Worth reading!!!
http://www.valuation-digital.com/resourcescatalog/2015_q2?pg=8&pm=2&fs=1#pg8
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AQB issues Q&A on Background checks, effective 1/1/17
Issued June, 2015
Excerpt:
Section VI(C) of the Criteria states:
An applicant shall not be eligible for a real property appraiser credential if, during at least the five(5) year period preceding the date of the application for licensing or certification, the applicant has been convicted of, or plead guilty or nolocontender to a crime that would call into question the applicant's fitness for licensure.
It is impractical, and likely impossible, to compile a list of every specific circumstance where an applicant must be denied a credential. Section VI(C) is intended to provide states with the ability to deny a credential based on "public trust." States have latitude to determine, based on their own guidelines, whether or not an applicant falls into this category and should be denied a credential.
My comment: California required background checks on all applicants when licensing first started around 20 years ago. There was a lot of discussion on what disqualified you. I didn't hear about many license denials for experienced appraisers. I suspect this is because appraisers don't do much criminal activity (except a few being involved in mortgage fraud). But, some had felonies in the past. For example, a felony for sale of marijuana in the 1960s - many years before the 1990s. For states which have never done background checks it is easier today. They can ask the other states what they did regarding background checks. Every state is different. Check with your state if it will be implementing background checks for the first time.
Link to Q&As
https://appraisalfoundation.sharefile.com/download.aspx?id=s246eb776d104935a#
Exposure Draft, Guide Note 9
https://appraisalfoundation.sharefile.com/download.aspx?id=s79a4e964ae3446db Issued January 17, 2015
WHAT DO YOU THINK? POST YOUR COMMENTS AT WWW.APPRAISALTODAYBLOG.COM .
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Are You a Tier 1 or Tier 2 Appraiser?
by Richard Hagar, SRA
Excerpt:
Nordstrom or Walmart? Mercedes or Yugo? Are you a Tier 1 or Tier 2 appraiser? Appraisers have two different business models to choose from.
I have seen that many lenders classify appraisers into two or three different tiers based on their perception of the quality of your product. Which tier are you? The amount of business you have and the amount you are paid is very likely based on how lenders classify you.
There is a lot of appraisal business right now and lenders are begging for high-quality appraisals. Many firms are buried in business, quoting three-plus weeks out in turn time, with high fees; here in the Northwest we are earning $550 for a standard home. If your company is not busy or you are making far less than this, here are some tips.
My comment: Appraiser tiers have been around for a long time. They were used when I started my appraisal business in 1986. In the past, they were referred to as "preferred" or "private banking", etc. Prior to HVCC they were often used for high dollar properties. After HVCC, lenders placed the appraisal orders directly, not through AMCs they used.
Read the full article. Worth reading!!
http://www.workingre.com/tier-1-tier-2-appraiser/
WHAT DO YOU THINK? POST YOUR COMMENTS AT WWW.APPRAISALTODAYBLOG.COM
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Trainees signing on appraisals??
Last week I posted about Red Sky AMC now allowing trainees to sign on appraisals on the left side.
WHAT DO YOU THINK? POST YOUR COMMENTS AT WWW.APPRAISALTODAYBLOG.COM
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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
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.
Refi, Purchase Applications Both Up in Latest MBA Weekly Survey
WASHINGTON, D.C. (June 24, 2015) - Mortgage applications increased 1.6 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending June 19, 2015.
The Market Composite Index, a measure of mortgage loan application volume, increased 1.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1 percent compared with the previous week. The Refinance Index increased 2 percent from the previous week. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index was unchanged compared with the previous week and was 18 percent higher than the same week one year ago.
The refinance share of mortgage activity increased to 49.0 percent of total applications from 48.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.0 percent of total applications, the highest level since December 2014.
The FHA share of total applications decreased to 13.9 percent from 14.2 percent the week prior. The VA share of total applications decreased to 10.9 percent from 11.5 percent the week prior. The USDA share of total applications remained unchanged at 0.9 percent from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.19 percent from 4.22 percent, with points decreasing to 0.38 from 0.46 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.14 percent from 4.18 percent, with points decreasing to 0.35 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.96 percent from 4.00 percent, with points decreasing to 0.14 from 0.20 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.38 percent from 3.43 percent, with points increasing to 0.37 from 0.33 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.04 percent from 3.15 percent, with points decreasing to 0.46 from 0.52 (including the origination fee) for 80 percent LTV loans. The effective rate decreased 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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