Opinions of Value

Your source for appraisal news and trends

Don’t Shoot the Messenger: Appraisers Not to Blame for Real Estate Woes

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Many in the real estate industry have tried to blame the market’s distressed condition on appraisers, saying that appraisers are at fault for producing opinions of value that don’t match a home’s contract or sales price, delaying a recovery in the housing market. But appraisers don’t set the market; they reflect what’s happening in the market.

 

It’s important to keep in mind that appraisals completed for mortgage transactions are not provided to confirm a sales price; they are used to assist lenders in making lending decisions. It’s troubling that some homebuyers and sellers (not to mention some real estate agents, home builders and others) assume that an appraisal is somehow “wrong” if it doesn’t match the listing or contract price. This is simply not the case. There’s no reason to assume the contract price is the “correct” price simply because it is higher than the appraisal.

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Appraisal Institute Supports Green Real Estate Bill

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Based on its benefits for consumers, the Appraisal Institute fully supports the Sensible Accounting to Value Energy (SAVE) Act, which is federal legislation recently introduced by Sens. Michael Bennet, D-Colo., and Johnny Isakson, R-Ga., that would improve the mortgage underwriting process by ensuring energy costs are included.

Under the SAVE Act, the U.S. Department of Housing and Urban Development would issue updated underwriting and appraisal guidelines for any loan issued, insured, purchased or securitized by the Federal Housing Administration or any other federal mortgage loan insurance agency. [Read more…]

Valuation Magazine Article Reports Slight MBS Improvement

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The mortgage-backed securities market is showing some signs of improvement, both in CMBS and RMBS, after coming to a halt at the beginning of the economic crisis in 2008. In spite of the recovery, the consensus among analysts is that they will never achieve their previous levels.

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Appraisal Institute Honors December Volunteers of Distinction

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The Appraisal Institute announced its “Volunteer of Distinction” honorees for December: Clifford Cryer, MAI, SRA, of Region II (Colorado Chapter); Carroll L. “Lew” Watson, SRA, of Region IX (Alabama Chapter); and Michael Slade, MAI, SRA, of Region X (South Florida Chapter).

The Appraisal Institute’s member recognition program honors members for their volunteer service to the Appraisal Institute, to the real estate valuation profession and to their local communities. Each month, the Appraisal Institute recognizes one honoree in each region as a Volunteer of Distinction. Region II consists of Colorado, Iowa, Kansas, Missouri, Nebraska, Oklahoma, South Dakota, Utah and Wyoming, plus Manitoba and Saskatchewan, Canada. Region IX consists of Alabama, Arkansas, Georgia, Louisiana, Mississippi, South Carolina and Tennessee. Region X consists of Florida, Puerto Rico and the Virgin Islands. [Read more…]

Appraisal Institute Creates Form to Standardize Analysis of Green Home Features

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As the industry leader in green and energy-efficient valuation, the Appraisal Institute in September issued an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for mortgage lending purposes.

Currently, the contributory value of a home’s green features is rarely part of the equation. The Appraisal Institute’s new form will help the industry standardize the way residential energy-efficient features are analyzed and reported.

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The Appraisal Institute Proposes “Candidate for Designation” Program

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The Appraisal Institute Board of Directors in 2010 approved a new strategic vision that will transition the organization from a professional association to a professional society. As part of that goal, the Board in October 2011 sent notice of proposed bylaws changes to AI members that would create a Candidate for Designation Program. The Board is expected to vote in December 2011.

 

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Volunteers of Distinction, November 2011

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Appraisal Institute members provide volunteer service to their organization, their profession and their communities.

The Appraisal Institute’s member recognition program honors members for their volunteer service to the Appraisal Institute, to the real estate valuation profession and to their local communities. Each month, the Appraisal Institute recognizes one honoree in each region as a Volunteer of Distinction. [Read more…]

Appraisal Institute Calls for Transparency on Home Buyers’ Forms

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Consumers deserve to know what they’re paying for, and the nation’s largest professional association of real estate appraisers is calling on the federal Consumer Financial Protection Bureau to require more transparency on home buyers’ forms.

The Appraisal Institute, in a joint letter with the American Society of Farm Managers and Rural Appraisers, asked the CFPB on Nov. 16 to separate appraisal fees from administration and processing fees on the settlement forms that consumers receive when purchasing a home. (Created by Congress, the CFPB oversees consumer disclosure laws and is authorized to develop new forms to inform consumers about charges assessed in processing mortgage loans.) [Read more…]

The AI Blog: Opinions of Value

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The Appraisal Institute is pleased to announce the launch of our blog, Opinions of Value. Whether it’s the appraiser perspective on a legislative or regulatory issue, enhanced discussion about recent industry media coverage, or thoughts from AI leaders about upcoming trends, we hope that our readers always will find value in the opinions, perspective and information that we’ll share.

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