TAF and HUD make a deal...PAREA providers win

[djd09]

FEDERAL REGULATORS FINALIZE NEW GUIDELINES FOR CHALLENGING HOME APPRAISAL VALUES​

The new process could address a “growing gap” between appraisals and sales price, experts say.​

Federal Regulators Finalize New Guidelines for Challenging Home Appraisal Values

Homebuyers and sellers now have grounds for challenging property appraisal values, thanks to new guidelines adopted by federal regulators. The

www.rismedia.com

not much different then the mortgage broker ordering days...just hit the dang number...parea will teach them that

 

[Non Sequitur]

Fear not fresh meat is on the way for Class, Clear Capital and Solidifi. Courtesy of Kelly Queen kickback to the AI.

Greetings!
I am absolutely delighted to share that last month, AI-PAREA celebrated its first six graduates!

In talking to Sandy Adomatis, 2024 President of the Appraisal Institute, she shared "The first six graduates of AI-PAREA are to be congratulated for their hard work in passing the first of its kind virtual appraisal training program. It took more than two years to develop the program that emulates the practical appraisal experience one would receive from a supervisor. AI-PAREA is not easy and requires participants with perseverance to complete many hours of work after completing 150 hours of qualifying education. I wish the current graduates and those to come the best the profession offers in a career.”

AI-PAREA was the recipient of The Appraisal Foundation's Pathways to Success grant to support the development of a PAREA program that would prioritize aspiring appraisers of color, veterans, women and those willing to work in underserved areas.

It was so invigorating to listen to the Market Moves podcast last week as well where they interviewed two of these first six graduates. I was so inspired hearing these trainee appraisers' stories firsthand. Their determination and grit to earn their credential showcases exactly the qualities we look for in this profession. Please listen to this fantastic podcast here.

Please join me in congratulating these first six graduates of AI-PAREA. This is not only a tremendous personal accomplishment, but also a critical milestone for our profession as we continue to seek new ways to welcome the next generation into the appraisal field.

We look forward to many more graduates of PAREA modules joining them in the years to come.

Sincerely,

Kelly Davids
President

I listened to the podcast, the two who were interviewed had appraisers who would train them but neither wanted to take the time to train the "traditional" way. And here's the kicker, and what I believe to be the future of the residential side, both will be part timers. One guy is in education/school administrator, who do to a rough divorce is looking for something to supplement the 20% of his salary his ex gets and possibly a second career when he retires. The other guy is a Mr. Mom looking for something to do during the 2-3 days a week his child is in daycare. I'm not knocking either, but when the profession is bleeding appraisers who have decades of experience that letter from TAF is at best tone deaf, but not unexpected from an appointed bureaucrat who will likely remain in the position for decades.

 

[Surf Cat]

AI-PAREA is not easy and requires participants with perseverance to complete many hours of work after completing 150 hours of qualifying education

I think this might turn off the target audience whom the developers of PAREA are targeting.

when the profession is bleeding appraisers who have decades of experience that letter from TAF is at best tone deaf,

All that needs to be done to have the appraisal industry flourish once again, is to go back to the mortgage broker ordering appraisals. The appraisals would then go to the defunct AMC's which would now be QC, review centers, making sure all appraisals are following USPAP and Fannie Mae guidelines.

With the above flick of the switch, fee shops would open, trainee licenses would be in demand, mentors would be compensated for their time and training AND..... borrowers would actually save money because the greedy, unethical, AMC's would be out of the loop.

 

[Non Sequitur]

All that needs to be done to have the appraisal industry flourish once again, is to go back to the mortgage broker ordering appraisals. The appraisals would then go to the defunct AMC's which would now be QC, review centers, making sure all appraisals are following USPAP and Fannie Mae guidelines.

With the above flick of the switch, fee shops would open, trainee licenses would be in demand, mentors would be compensated for their time and training AND..... borrowers would actually save money because the greedy, unethical, AMC's would be out of the loop.

I agree that AMCs are far worse than mortgage brokers, but I support a VA style ordering/management system for GSE work.

 

[Tom D]

Well, FHA rotated appraisers. Was harder to get in.
Better appraisals, I don't know, reports were graded. You got a better if you had more repairs listed in VC sheet.

 

[Dublin ohio]

Well, FHA rotated appraisers. Was harder to get in.
Better appraisals, I don't know, reports were graded. You got a better if you had more repairs listed in VC sheet.

The good old days when you had to take a test to get in

 

[Non Sequitur]

Man, lots of drama right now over on LinkedIn. Well, I should say finally spilling over publicly. Anyway, PAREA up to this point has been a drain and more than a few AI members have been demanding an accounting from the board but have been shown nothing. Add to that the current president just signed a letter advocating for a path from residential certification to general that doesn't require a college degree, AND holy-moly "...the AI believes that the AQB should consider instituting a periodic “recertification” process – every 10 years is probably appropriate – for all licensed and certified appraisers." Boy, the drama coming from some MAI members. No college degree AND periodic recertification that would include them? The cries of double cross are rising. Welcome to the club suckers.

 

[Elliott]

FEDERAL REGULATORS FINALIZE NEW GUIDELINES FOR CHALLENGING HOME APPRAISAL VALUES​

The new process could address a “growing gap” between appraisals and sales price, experts say.​

From what 'experts' say:

“The growing gap between home appraisals and actual sale prices underscores the challenges of providing accurate valuations in a rapidly appreciating market with limited inventory,” Ashley Jelinek, CEO of Corporate Settlement Solutions, said in a statement.

She continued, “the big question is, how long will this continue given that many housing economists are suggesting that home appreciation is normalizing and, in some markets, even decreasing. It is inflection points like the one we may be approaching that emphasize the importance of accurate, market-centric valuations.”

........................

Another example of an AMC stakeholder usurping the process, claiming 'they know best.' Is there really a 'growing gap'? So CSS goes to 'hybrids' and then can claim they've 'closed the gap.' Sounds like made up foo foo. The Corporate shell is fully capable of making up conclusions and pushing regulations that benefit the corporate interests and really doesn't have to demonstrate improvement. It 'is' because they say so.

From their website:

"The lender was paying for a hybrid appraisal product with the cost approach on 25% of its loans, which was unnecessary given their underwriting requirements.

We moved them to a lower cost hybrid appraisal product that still met their underwriting requirements, saving $80 per loan."


............................
I don't think they even understand what the purpose of an appraisal is. AMCs appear to be based on taking data and coming up with confusing, meaningless analysis and conclusions: This is from CSS's study, imploying the 'sky is falling' technique:

“The growing gap between home appraisals and actual sale prices underscores the challenges of providing accurate valuations in a rapidly appreciating market with limited inventory,” says Ashley Jelinek, CEO of Corporate Settlement Solutions, in a statement. “The big question is, how long will this continue given that many housing economists are suggesting that home appreciation is normalizing and, in some markets, even decreasing. It is inflection points like the one we may be approaching that emphasize the importance of accurate, market-centric valuations.”

U.S. Home Appraisals Were Higher Than Sale Prices 51 Percent of the Time in First Half - MortgageOrb

U.S. home appraisals were higher than sale prices 51% of the time in the first half of 2024 – and the gap between appraisals and sale prices is the highest that it has been since the start of the pandemic in 2020, according to a report from Corporate Settlement Solutions. In 2020, 42% of homes […]

mortgageorb.com

 

[djd09]

The Most Splendid Housing Bubbles in America, July 2024 Update. Below 2022 Peak: San Francisco, Seattle, Phoenix, Portland, Denver, Dallas, Las Vegas. New Highs: Miami, Los Angeles, San Diego​

To qualify for the Most Splendid Housing Bubbles, the metro must have experienced home-price inflation since 2000 of 200% or more at the peak. The indices were set at 100 for the year 2000. Today’s index value for San Diego of 446 is up 346% since 2000, making San Diego the most splendid housing bubble on this list, ahead of Los Angeles (444) and Miami (440).

The Most Splendid Housing Bubbles in America, July 2024 Update. Below 2022 Peak: San Francisco, Seattle, Phoenix, Portland, Denver, Dallas, Las Vegas. New Highs: Miami, Los Angeles, San Diego… | Wolf Street

those parea grads are going to have their hands full....welcome aboard....and congrats to sunny san diego for being the number 1 bubble

 

[Mejappz]

Man, lots of drama right now over on LinkedIn. Well, I should say finally spilling over publicly. Anyway, PAREA up to this point has been a drain and more than a few AI members have been demanding an accounting from the board but have been shown nothing. Add to that the current president just signed a letter advocating for a path from residential certification to general that doesn't require a college degree, AND holy-moly "...the AI believes that the AQB should consider instituting a periodic “recertification” process – every 10 years is probably appropriate – for all licensed and certified appraisers." Boy, the drama coming from some MAI members. No college degree AND periodic recertification that would include them? The cries of double cross are rising. Welcome to the club suckers.