Brought by Scott Hamling
In this discussion Scott discusses evolution of the appraisal.
2009 Home Valuation Code of Conduct (HVCC) changed to Dodd Frank Act
Most importantly this give the right to realtors to discuss appraisals with Appraisers! It is important to discuss and ask questions of the appraiser and meet them upon appraising!
1. When was the last time you appraised in this area?
2. How many homes on average do you appraise in our area per year?
Bottom line we are looking for geographic competency.
According to the new rules of the Dodd Frank it is imperative for the buying and selling realtors to be a team. They are allowed to:
1. Consider additional, appropriate property information, including the consideration of additional comparable properties to make or support an appraisal.
2. Provide further detail, substantiation, or explanation for the appraisers value conclusion.
3. Correct erros in the appraisal report.
AMC vs Local Lenders
National appraisers have rotations are paid 1/2 fees and typically have no incentive to do a great job.
FHA appraisals stick to a property for 4 months and VA 6months.
Before meeting the appraiser pull up a 1004MC form from the MLS! (Run a Market Conditions Detailed Report report in the area noted)
Appraisers package should include:
listing brochure
contract
list of all property upgrades, completion dates, and costs
sketch of the property
county assessor records
listing history
comps to support sales price
PLEASE MAKE SURE TO KEEP HOME IN CLEAN CONDITION AND WELL CARED FOR MATTERS!
Spread the materials out for the appraiser and review 1004MC, explain the comps and why and show all (5) comps and why thoses were not chosen. Make sure to list all special features.
If you can bring a step ladder for the appraiser, and if you are helping with a refinance, get involved!
Items that MUST be done prior to funding are structural integrity along with health and safety.
Required in every appraisal are 5 total comps, 3 sold, 2 active/pending
Distressed property should not be used for comps as banks can impose rules and not use them. If you discuss with the actual appraiser, you may find out there is a percentage to which is recommended. Typically I've been told when the sales ares more than 50% distressed in one neighborhood, it is imperative to use the distressed comps.
UCDP/UAD/C1/C2/C3 - Uniform Collateral Data Portal
In 2011 appraisals changed, GMAC awarded contract for the UCDP, as a result it created hardstops with discrepancies of comps for adjustments. The SrVP of FNMA helped to build UCDP and then get a job at GMAC, This person provided the largest amount of property info ever. It was called Veros which is an appraisal management system.
Hard stops incorporated 1x/qtr, appraisals are being compared to each other in the neighborhood and gathered so the housing bubble will be prevented and control pricing and values. This will make every appraisal conservative
Bottom line is this system makes items uniform and able to data mine for basement valuation.
In this discussion Scott discusses evolution of the appraisal.
2009 Home Valuation Code of Conduct (HVCC) changed to Dodd Frank Act
Most importantly this give the right to realtors to discuss appraisals with Appraisers! It is important to discuss and ask questions of the appraiser and meet them upon appraising!
1. When was the last time you appraised in this area?
2. How many homes on average do you appraise in our area per year?
Bottom line we are looking for geographic competency.
According to the new rules of the Dodd Frank it is imperative for the buying and selling realtors to be a team. They are allowed to:
1. Consider additional, appropriate property information, including the consideration of additional comparable properties to make or support an appraisal.
2. Provide further detail, substantiation, or explanation for the appraisers value conclusion.
3. Correct erros in the appraisal report.
AMC vs Local Lenders
National appraisers have rotations are paid 1/2 fees and typically have no incentive to do a great job.
FHA appraisals stick to a property for 4 months and VA 6months.
Before meeting the appraiser pull up a 1004MC form from the MLS! (Run a Market Conditions Detailed Report report in the area noted)
Appraisers package should include:
listing brochure
contract
list of all property upgrades, completion dates, and costs
sketch of the property
county assessor records
listing history
comps to support sales price
PLEASE MAKE SURE TO KEEP HOME IN CLEAN CONDITION AND WELL CARED FOR MATTERS!
Spread the materials out for the appraiser and review 1004MC, explain the comps and why and show all (5) comps and why thoses were not chosen. Make sure to list all special features.
If you can bring a step ladder for the appraiser, and if you are helping with a refinance, get involved!
Items that MUST be done prior to funding are structural integrity along with health and safety.
Required in every appraisal are 5 total comps, 3 sold, 2 active/pending
Distressed property should not be used for comps as banks can impose rules and not use them. If you discuss with the actual appraiser, you may find out there is a percentage to which is recommended. Typically I've been told when the sales ares more than 50% distressed in one neighborhood, it is imperative to use the distressed comps.
UCDP/UAD/C1/C2/C3 - Uniform Collateral Data Portal
In 2011 appraisals changed, GMAC awarded contract for the UCDP, as a result it created hardstops with discrepancies of comps for adjustments. The SrVP of FNMA helped to build UCDP and then get a job at GMAC, This person provided the largest amount of property info ever. It was called Veros which is an appraisal management system.
Hard stops incorporated 1x/qtr, appraisals are being compared to each other in the neighborhood and gathered so the housing bubble will be prevented and control pricing and values. This will make every appraisal conservative
Bottom line is this system makes items uniform and able to data mine for basement valuation.
Comments
Post a Comment