Appraisal Requirements Suspended for California Fire Areas

[Mark K]

Not a problem most are cash sales or buyers putting 50% or more down. Nobody's walking on a new build in those areas.

So you're thinking nobody is going to get a mortgage in those areas?

People pay stupid money in those areas and lowering lending/appraisal standards will only help them pay stupider money. Nothing like using OPM, especially when they make it easier to obtain OPM.

 

[TerryRohrer]

So you're thinking nobody is going to get a mortgage in those areas?

People pay stupid money in those areas and lowering lending/appraisal standards will only help them pay stupider money. Nothing like using OPM, especially when they make it easier to obtain OPM.

Seems to be a trend in our regulatory schemes of late. When the banks started failing, suspend the rules that were ignored so they could continue with the games that brought them to the brink of failure. Real estate becomes infeasible, reduce focus on feasibility. When wide swaths of appraisers demonstrate incompetence, remove any barriers to licensing appraisers. Wake up $37 trillion in the hole shoveling toward $75 trillion.

 

[glenn walker]

So you're thinking nobody is going to get a mortgage in those areas?

People pay stupid money in those areas and lowering lending/appraisal standards will only help them pay stupider money. Nothing like using OPM, especially when they make it easier to obtain OPM.

Sure some will get a mortgage but the LTV will be low as only wealthy can afford to live in most of those areas. Not GSE loans but if so very little risk. If an appraisal is required I'm sure the lender will order one. It will be on a case by case basis. No worries it's all good.

 

[Mark K]

No worries it's all good.

I think that's the phrase they use every time they lower the lending standards. History has shown otherwise.

But honestly, its CA. Nobody outside of CA worries or cares.

 

[George Hatch]

I strongly doubt any construction lenders are going to skip getting appraisals for $2+M construction loans. Most of them will probably want environmental reports, too.

This will be a great opportunity for appraisers in the region to gain more exposure to both land appraisals and construction appraisals. Much of it by direct engagement.

 

[Surf Cat]

As far as appraising land goes, the city of L.A. has a fantastic database for their parcels.

NavigateLA - City of Los Angeles

#attributes.title#

navigatela.lacity.org

Great resource website....thanks!

 

[glenn walker]

Of course there will be appraisals of some kind. But when the typical 8 000 to 12,000 square foot lots are already owned by the persons whose home burned down that's not a big issue as to value because the Cost New on rebuilds is going to be the driving force like building a 200 tract of brand new homes.

None of the burn downs will be rebuilt to what had previously existed since mostly the fifties and seventies. So construction costs will be estimated by contractor not appraisers and all the Major Banks in Los Angeles have many contractors they fund construction loans to.

In summary the Fast Track Plans to get owners new homes built is going to cut as much Red Tape as possible. The major Insurance Companies have already hired many appraisers to begin work on claimants properties as to value of lot and new construction cost.

The Appraisers that want work need to be applying to the Major Insurance Carriers to get on as Inspectors and appraisers. The orders are not coming from AMCs.

 

[Hondo]

When we built our house in 1990 we owned the lot and the bank accepted the architect's estimate for the construction loan. Of course my wife overshot the estimate big time but we paid that separately.

 

[Terrel L. Shields]

my wife overshot the estimate big time

A builder told me once he made more money on changes than his bid, and 99% of the changes were the wife's decision. One time a woman wanted a hole in the wall between the living room and dining. When she didn't like the one he cut, he finally handed her the saw and said, "Please cut it to please yourself." She did. My wife did the same thing. Wanted a hole between the kitchen and living room so she could see the TV while cooking. All that hold does not for me is collect knick-knacks that need to be put away - my billfold, keys, a cup with pencils, etc.