Appraisal Today 
 
NEWZ .AMC fails .Appraising over 3,000 years ago  - 
March 17, 2016
LIA
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Philadelphia's Trinity Houses are the Original Tiny Houses
 
Excerpts:
These structures, called "trinity houses," are typically a very small three- or four-floor townhouse of well under a thousand square feet in which, bizarrely, each individual floor contains only one room, connected by a spiral staircase. (The name comes from the classic three floors and three rooms, plus Philadelphia's extensive Catholic history: the father, son, and holy ghost house.) These small dwellings are fantastically on-trend: small, full of history and character, efficient, and inexpensive.
 
The median home value in Queen Village is, according to Zillow, $482,200. (Park Slope, in Brooklyn, has a median home value of $1.1 million, for what that's worth.) But that doesn't really get at the extreme diversity of homes in Queen Village: the original Philadelphia mansions are still there, as are the mid-priced rowhouses, but the cheapest homes aren't condos or apartments: they're trinity houses. For under $300,000, a buyer in Philadelphia can secure an entire home, top to bottom, in one of its nicest neighborhoods. This is completely out of the question in New York, DC, or Boston.
 
My comment: Fascinating history and great photos!!
 
 
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Do you have any assistance with the day to day appraisal operations - not including trainees or other licensed appraisers?
 

 
My comment: I hired an assistant two months after starting my appraisal business in 1986. I am not a detail person and hated all the clerical paper work!! I had never had a clerical office job because I could not pass the typing test ;> When I started appraising at an assessor's office we had employees who did the clerical work. All I did was appraise. I have always had an assistant, part time or full time, who sets up the file, pulls data, checks my appraisal reports, gets office supplies, answers the phone, etc. etc. I bill out at a much higher rate than I pay her, so I can get more appraisals done. They have always been employees, of course. I have always had an office separate from my house. I had a detached rear cottage for 6 years, then moved to an inexpensive office building, where I am still located.
 
Two of my first appraisal trainees started as assistants, paid by the hour, which is an excellent way to learn about appraising.
 
One good idea is to use immediate family. There are tax advantages as they do not have to be treated as employees.
 
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I want my hour back!!! Daylight Savings time problems
 
I like having longer days so I can have more time to take my comp photos. But I hate changing time twice a year. I have significant jet lag when traveling east from California, even one time zone. In the fall, when daylight savings stops, it takes me about 2 weeks to change. In the spring it only takes me a few days to adjust as I don't have much jet lag traveling west. But, the closest land is in Hawaii. I don't travel there much.. Darn!!
 
Seems like there are more people who want to change to Standard Time and have no time changes. Arizona does not have Daylight Savings time.
 
I have been told that there are too many computer software programs that must be changed. But surely most of the "legacy" software from the 1950s and 60s has been phased out by now.
 
There are negative health effects. There is lots of research about the effects of sleep problems and how it affects performance, such as physicians in residency programs that work 48 hour shifts. I try not to think about sleep deprived big rig truck drivers barreling down the freeways near where I live. Etc. Etc. 
 
A few myths about Daylight Savings time
Excerpts:
- Energy Savings. A 2008 U.S. Department of Energy study reported that daylight saving time reduces annual energy use by about 0.03%. And a study that same year from the University of California-Santa Barbara found it might even increase energy consumption.
- Farmers want it. The idea that daylight saving time was created to help farmers get their harvests in is so ingrained into the national consciousness, it's hard to believe it's not true. Farmers, in fact, vociferously fought the proposals, arguing they cut productivity and made life overall tougher for them.
- We want it. A 2014 Rasmussen poll found that a declining percentage of adults in the United States -- 33% -- think daylight saving time is "worth the hassle." That's down from 37% in 2013 and 45% the year before.
 
 
A few more links:
Health effects
 
A calculator to determine how much sleep you lost. I have lost 33 hours and 40 minutes so far since 1966 (when DST was first instituted)
 
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Course Title: NEW
FHA Appraisal (Denver Homeownership Center)
Date/Time:
Friday, April 8, 2016 7:30 AM - 5:30 PM  (Central)
Event Location:
Hipolito Garcia Federal Building, 615 E. Houston Street, Suite 347, Conference Room 105B, San Antonio, TX 78205-2001
Registration Link:
Description:
This free one-day class discusses FHA appraisal requirements, including FHA appraisal protocol and updates to FHA appraisal policy. It also equips attendees with the knowledge to determine property eligibility. The course is a refresher for seasoned FHA appraisers and provides valuable information to appraisers new to the FHA roster. Although primarily intended for appraisers, other industry professionals will also benefit, including underwriters, processors, etc.
Special Instructions:
Registration is required. Seats are limited and available on a first-come, first-served basis.
Training is being held in a Federal facility, so please allow extra time to go through security screening. For more information, contact: [email protected].


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Appraising over 3,000 years ago

Published in the paid Appraisal Today

Brief excerpt:

Book of Numbers - appraisal of the Land of Canaan

In the Book of Numbers, Chapters Thirteen and Fourteen: God commanded one person from each of the twelve tribes to "to make a reconnaissance" of the Land of Canaan, now Israel. Persons selected were leaders, with sincerity of purpose, integrity, wisdom, judgement and knowledge.

The appraiser/leaders journeyed to the area and looked at the agriculture, towns, and people and collected agricultural samples. The objective was to determine the highest and best use of the property.

The turnaround time for the appraisal report was 40 days. The appraiser/leaders gave a verbal report to Moses and the entire community.

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To read this full article with more appraisal biblical references, plus another article on the history of appraising in Europe and the U.S., starting in the year 1066, 

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Wash. AMC Fails, Leaving Appraisers Unpaid
by Isaac Peck, Editor, www.workingre.com
 
Excerpt:
 
When an Appraisal Management Company (AMC) fails it is usually appraisers who are left holding the bag. Many appraisers are now reporting that the William Craig Company, Inc. (WCCI), based in Washington (Wash.), is closing its doors with up to $250,000 in unpaid fees owed to appraisers.
 
In early February, Jenna Bell, a Business Relations Specialist at WCCI, sent out an email to many appraisers on its panel indicating that "2015 has been one of the toughest years" for the company and that in order for WCCI to continue operations it "would have to clear out all appraiser vendors to be paid." The email goes on to propose that, in lieu of payment for unpaid appraiser fees, WCCI would "transfer a portion of WCCI company stock to each appraiser in exchange for the balance WCCI shows you have invoiced as of 2/8/15."
 
My comment: I have been hearing rumors about this for awhile, but the company name was not "public". The total amount is not large, as compared with other AMC failures. But, when lending declines, as it always does, many AMCs will have financial difficulties. Their large overheads, with many employees, much more than larger local fee appraisal companies make them risky as a client. Keep a close watch on all your AMC clients. Are they paying later? No one answers the phone or sends any emails. Don't let your unpaid billings get too high.
 
If you work for AMCs, Read This Article!! Interesting with lots of info and analysis:
 
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Repurchase Demands and Unacceptable Appraisal Practices - Part 1
By Rachel Massey, SRA
 
Excerpts:
The focus for many residential appraisers is on mortgage related work. Those of us who routinely complete residential appraisals for mortgage financing purposes should be familiar with Fannie Mae's Selling Guide. This is particularly true with the Unacceptable Appraisal Practices (UAP) (Fannie Mae, 2015), as they set the stage for many repurchase triggers. This article, as well as the next few, are going to address a few of these UAPs, and how to better support appraisal communication specifically related to them.
 
The three UAPs discussed in this article are:
 
1) Failure to use comparable sales that are the most locationally and physically similar to the subject property;
 
2) Misrepresentation of the physical characteristics of the subject property, improvements, or comparable sales; and
 
3) Failure to comment on negative factors with respect to the subject neighborhood, the subject property, or proximity of the subject property to adverse influences.
 
My comment: lots of good, practical advice in this article!!
 
 
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Sales Contract Analysis, Part 2 - Under the Influence
By Richard Heyn, SRA
 
This an excerpt from Part 2 of a 3-part series on analyzing the sales Contract on ACI's blog.
 
"What's the point?" That question expresses the sentiments that some appraisers have toward sales contract analysis. The argument is that the market value of the subject property "is what it is" regardless of what's in the contract. Some appraisers even go so far as to advocate that appraisers should not have any knowledge of the contract price as it may (consciously or unconsciously) affect the appraiser's ability to perform in an unbiased manner.
 
Conversely, other appraisers welcome the opportunity to analyze the contract. In the previous blog in this series, the focus was on USPAP and GSE obligations. In this blog, we'll focus on how contract analysis is part of the valuation picture and its place in an appraiser's opinions and conclusions.
 
Like the prior blog, this one is also written in the context of mortgage lending assignments reported on Fannie Mae/Freddie Mac (GSE) forms, or "GSE assignments."
 
 
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Sales Contract Analysis, Part 3 - Getting to Know You
 
Excerpt:
A question generated as a result of an earlier blog on this issue was "Okay, I understand I need to analyze the contract because it's a USPAP requirement. But why is it a USPAP requirement?" One short answer is that contract analysis is part of property identification, which is necessary to establish an acceptable scope of work.
 
Contract analysis is where you begin to identify the property and get your first look at a property's relevant characteristics. Remember, relevant characteristics are not limited to physical characteristics. Legal and economic attributes are included as well. According to AO-23, relevant characteristics "define the subject property and, together with the type and definition of value and intended use of the assignment results, provide the basis for deciding what data and analysis should be included in the scope of work."
 
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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 [email protected]  [email protected] Or call 800-839-0227, MTW 8AM to noon, Pacific time.

Mortgage applications decreased 3.3 percent from one week earlier

 according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending March 11, 2016. 
The Market Composite Index, a measure of mortgage loan application volume, decreased 3.3 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 3 percent compared with the previous week.  The Refinance Index decreased 6 percent from the previous week.  The seasonally adjusted Purchase Index increased 0.3 percent to its highest level since January 2016. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 33 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to its lowest level since August 2015, 55.0 percent of total applications from 56.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.9 percent of total applications.
The FHA share of total applications decreased to 11.7 percent from 12.0 percent the week prior. The VA share of total applications decreased to 12.3 percent from 12.6 percent the week prior. The USDA share of total applications remained unchanged from 0.8 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 3.94 percent from 3.89 percent, with points increasing to 0.42 from  0.38 (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 3.86 percent from 3.81 percent, with points decreasing to 0.28 from 0.31 (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 3.77 percent from 3.71 percent, with points decreasing to 0.33 from 0.37 (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 3.22 percent from 3.14 percent, with points decreasing to 0.39 from 0.41 (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 3.23 percent from 3.20 percent, with points increasing to 0.35 from 0.32 (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. D.C. 

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Ann O'Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
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