The Appraisal Subcommittee Busted

[djd09]

AIVRE is an all-encompassing appraisal software platform designed to revolutionize the appraisal process. Here's a quick recap of what AIVRE can do: Accelerate Your Workflow: AIVRE helps appraisers complete their appraisal reports 82% faster than the industry average. Automate Standard Forms: AIVRE automates the 1004 and 1073 appraisal forms by seamlessly integrating relevant tax assessor, MLS data, and image recognition data. Future-Ready Automation: AIVRE is prepared to implement automation for the new UAD 3.6 standard, set to be introduced in 2025, ensuring you're ahead of the curve.

BIRMINGHAM, Mich., Aug. 30, 2024 /PRNewswire-PRWeb/ -- AIVRE is thrilled to announce its successful participation in the Valuation Expo held last week in Las Vegas. This event, which brought together top professionals and industry leaders from across the country, served as a platform for showcasing cutting-edge advancements and fostering valuable networking opportunities in the appraisal industry.
At the expo, AIVRE's Founder and CEO, Jake Lew, had the honor of moderating a panel discussion focused on "Finding Your Niche" in the appraisal industry as well as speaking at "Lenders and Vendors Live". Additionally, the AIVRE team, including CTO and Co-Founder Jordan Lesson, actively engaged in discussions and workshops centered on the latest appraisal technologies, methodologies, and industry trends.
"The opportunity to connect with appraisers and real estate professionals from across the country was truly inspiring. Our team remains dedicated to advancing innovation and transforming the appraisal industry."

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The AIVRE booth, which featured their innovative AI tool and services designed to streamline processes by reducing the time to fill out an appraisal form, decrease biases, and enhance accuracy, attracted considerable attention. Visitors expressed enthusiastic interest in how AIVRE's advancements are poised to shape the future of appraisals.

"It was fantastic connecting with so many professionals at Valuation Expo," said Jordan Lesson. "The in-depth discussions emphasized a clear need for innovation and fresh energy in the appraisal space. Many believe that AIVRE is the crucial piece needed to revitalize the industry."

AIVRE is committed to enhancing existing appraisal processes with advanced AI technology. The team emphasizes that while current solutions are valuable, there is always room for innovation to drive further improvements.

"Introducing AIVRE at Valuation Expo was a significant milestone for us," said Jake Lew. "The opportunity to connect with appraisers and real estate professionals from across the country was truly inspiring. Our team remains dedicated to advancing innovation and transforming the appraisal industry."

same old same old...cheap and fast

 

[djd09]

TOLEDO, Ohio, Feb. 20, 2024 /PRNewswire/ -- Opteon, a leading global appraisal management company (AMC) and staff appraisal firm, announced today that Chris Knight, Opteon's Chief Executive Officer, has been chosen as the 2024 Valuation Visionary honoree by the Collateral Risk Network (CRN).

they are an AMC and an appraisal company...

 

[chad hampton]

TOLEDO, Ohio, Feb. 20, 2024 /PRNewswire/ -- Opteon, a leading global appraisal management company (AMC) and staff appraisal firm, announced today that Chris Knight, Opteon's Chief Executive Officer, has been chosen as the 2024 Valuation Visionary honoree by the Collateral Risk Network (CRN).

they are an AMC and an appraisal company...

They should just become a lender too. Then they can be all 3 - lender, middle man, and appraiser.

 

[RCA]

Well, look how many times I have told you people that the ASC and TAF are corrupt entities that need to be abolished. Now it has been found that the ASC used appraiser funds to award “grants” to CLEAR a cough, cough a "non-profit"t organization that provides support and resources to regulatory agencies, professional licensing boards, and enforcement agencies.

The Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council violated the purpose statute when it awarded a cooperative agreement to a nonprofit entity. ASC's appropriation permitted it to award grants to states and to a particular nonprofit corporation. The cooperator in this case was neither, so it was not eligible to receive funding under the appropriation. Because ASC's appropriation is not legally available for such an assistance arrangement, ASC also violated the Antideficiency Act by entering into and expending funds toward the cooperative agreement.

Appraisal Subcommittee of the Federal Financial Institutions Examination Council—Application of Purpose Statute and Antideficiency Act to Cooperative Agreement

The Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council violated the purpose statute when it awarded a cooperative...

www.gao.gov

"And ASC told us the survey relates to its authority to temporarily waive appraiser requirements in a state facing a scarcity of qualified appraisers. Request Letter, at 6–7. See 12 U.S.C. § 3348(b). The survey would be for ASC's direct benefit if its main purpose was to aid ASC in the performance of its statutory authority."

If you look at the CLEAR (Council on Licensure, Enforcement and Regulation). website "About" page to get an idea of the qualifications of the leardership or staff (also get the name and check it in LinkedIn) you will find no one with any thing close to appraisal experience.

Also there is one review on Glassdoor.com with a rating of 1/5 (lowest possible). It says:



Fat, good for nothing pigs, --- everywhere.

 

[djd09]

They should just become a lender too. Then they can be all 3 - lender, middle man, and appraiser.

technically, the AMC is the agent of the lender

In legal terms, an agent is a person who is legally authorized to act on behalf of another person or entity, known as the principal. Agents can have the power to:

• Create or change the legal rights, duties, or relationships of the principal
  
  
• Facilitate contracts on behalf of the principal
  
  
• Administer facilities
  
  
• Legally bind the principal to arrangements
  

The agency relationship is fiduciary in nature, which means that the agent has certain duties to the principal. These duties include performing their obligations with care, skill, and diligence in the best interests of the principal.

 

[chad hampton]

Maybe they can just hire some MB’s and keep everything in house. Mbs on one side of the hall and the (non-independent ) appraiser on the other side. Even better than the good ol days!!

 

[George Hatch]

Some of the (actual) lenders already have loan production and appraisers under the same roof. There are banking rules that apply to that situation which require the (actual) lender to keep the two parties separate. When I worked on staff the chief appraiser there had the same level of authority as the VP loan production, and that loan production VP wasn't allowed to talk to any appraiser unless the appraiser's boss was in the same meeting. The LOs couldn't call us and they couldn't even step off the elevator onto our floor.

Simply having staff appraisers isn't the problem; it's putting them under the direction and control and servient to the sales side that's the problem. It CAN be done. Whether all these lenders actually DO comply with these regs will certainly vary and some of them surely will violate those rules. But "violations" are possible in literally every scheme that anyone could devise.

Note that the blurb below doesn't say one word about "independence" meaning only fee appraisers can do appraisals, or "independence" meaning completely stripping the lenders of the right to promulgate their own supplemental requirements over/above our minimum standards. What they're referring to is "isolated from the influence of the institutions loan production staff. "
This is also why appraisers collecting checks from borrowers will never return in the FRT, FHA or GSE pipelines.

Federal Register :: Request Access

The requirements in D-F parallel these requirements and are based on the same reasoning. The difference is that these requirements were drawn up 15 years prior to D-F. This reference is dated in 2010 but merely updates the originals from 1992. So no, it wasn't the AMCs or Cuomo who came up with the idea of isolating the appraisers from the MBs.

 

[djd09]

separation...who cares...the mortgage broker doesn't even need the appraiser anymore....they can just estimate the value themselves

 

[Elliott]

the mortgage broker doesn't even need the appraiser anymore....they can just estimate the value themselves

"Housing Study Reveals the Most Overvalued U.S. Property Markets

In a new study, researchers at Florida Atlantic University and Florida International University claim that Detroit has surpassed Atlanta as the most expensive housing market in the U.S., after the city topped the list of inflated housing markets for more than a year.

As of the end of May, data from the Top 100 U.S. Housing Markets indicates that homes in the Detroit metro region are 40.79% overvalued in relation to their long-term pricing patterns. Atlanta is the second most inflated housing market in the nation, with housing premiums there being an estimated 40.37% overvalued.

Top 10 Housing Markets in the Study by Premium/Discount​

1. Detroit (40.79%)
2. Atlanta (40.37%)
3. Las Vegas (37.53%)
4. Knoxville, TN (37.33%)
5. Cape Coral, FL (36.11%)
6. Tampa, FL (35.98%)
7. Charlotte, NC (35.09%)
8. Palm Bay, FL (34.94%)
9. Orlando, FL (34.29%)
10. Lakeland, FL (34.06%)"

Housing Study Reveals the Most Overvalued U.S. Property Markets - The MortgagePoint

“Eventually, prices will return to their long-term trends, but how they get there is the open question,” said Ken H. Johnson, Ph.D., Real Estate Economist in Florida Atlantic University’s College of Business. “Will prices crash as they did after the last housing cycle’s peak, or will home prices...

themortgagepoint.com

...................................
And them there is this:
....................................

"New CFPB Rule Protects Homeowners Facing Foreclosure
A new CFPB final rule effective August 31, 2021, amends RESPA Regulation X early intervention and loss mitigation requirements, found at 12 C.F.R. §§ 1024.39 and 1024.41. The amendments provide significant new rights to homeowners exiting a mortgage loan forbearance or experiencing a payment hardship related to the COVID-19 pandemic. See 86 Fed. Reg. 34,848 (June 30, 2021). For a redline version click here. The new rule:

Requires servicers to comply with additional procedural safeguards before initiating foreclosure;
Permits a servicer to offer certain streamlined loan modifications without requiring the borrower to submit a complete loss mitigation application;
Specifies how and when a servicer must resume reasonable diligence efforts at the end of forbearance; and
Imposes new early intervention requirements for borrowers in default.

Significantly, the new rule applies not just to FHA, VA, USDA, Fannie Mae, and Freddie Mac mortgages, but applies broadly to “federally related” mortgage loans, as defined by RESPA. See NCLC, Mortgage Servicing and Loan Modifications § 3.2. “Federally related” is an extremely broad category, covering most of the mortgage market. The new rule applies even to servicers of non-federally-backed mortgage loans, including loans held in private-label securitization trusts. Moreover, the rule applies where a borrower has not received a forbearance, but has defaulted on mortgage payments while experiencing financial hardship due directly or indirectly to the COVID-19 emergency.

The new rule provisions are effective August 31, 2021. The amendments requiring servicers to comply with additional procedural safeguards before initiating foreclosure will sunset on December 31, 2021. The additional early intervention requirements apply until October 1, 2022. Other provisions in the new rule do not have a sunset date."

Significant Private Remedies for Rule Violations​

When a mortgage servicer fails to comply with the requirements under the new rule, the borrower has a private right of action under RESPA for out of pocket and emotional distress damages, attorney fees, plus up to $2000 in statutory damages where there is a pattern or practice. Statutory damages in class actions are capped at $1 million. For more information on RESPA mortgage servicing requirements and private remedies, see NCLC’s Mortgage Servicing and Loan Modifications Chapter 3.""
........................

So overvaluation and no foreclosures. What me worry?

​

 

[Non Sequitur]

So, are you saying you went to The Valuation Expo? What's the plan if appraisers are eliminated? Pdc's....Artificial intelligence?

I don't see how there can be a valuation expo with no one to do the analysis for a valuation.

Yes, I wanted to check the temperature of the profession myself. Before I get into that I’ll mention Hal and the COO of Class hate appraiser Facebook groups and appraiser social media in general. They were parading around the few ADI grads who finished their courses (the fall out rate for scholarship recipients is right at 90%) and while speaking from the stage repeatedly advised them to stay away from the groups because of bullying, lies, etc. Now before I’m accused of hating them, let me go on the record as saying I wholeheartedly welcome the few dozen or so grads because once they’re in the business MAYBE someone will listen to them about the abusive AMC system we operate in. Because make no mistake, the promised land that’s being promised to them doesn’t exist, and that’s why some want to keep the noobs away from social media.

Anyway, not sure what the ultimate plan is as far as what will they do when resi appraisers are all but extinct. My general impression is, just like ADI initiatives, there’s a crap ton of money flowing around the ideas/initiatives and at this point more than a few are just padding their nests and making contacts for their next move. Eventually there will be fall outs and the same names you see selling fanciful tech and ADI will land with the next company that has VC or hedge fund money to burn. And speaking of that, word in the halls is that a national firm has burned through all of their money and was at the Expo with hat in hand. Not a lot of sympathy in the halls and just about everyone has bailed, but they were giving out socks and stickers. And their competitor who landed the national account they lost is in the cross hairs of a few with whispers of not so legit activities. I’ll just say to anyone who reads this (especially if you’re affiliated with the firm) there are no secrets in this business and if what’s being said is true, start planning your exit.

To your last question, the Expo isn’t going anywhere. It’s corporate and the Classes and Clear Capitals of the world will continue to pump money into the beast because it’s about staying in the game for them. And at the end of the day, unlike boots on the ground appraisers, they aren’t spending their own money. It’s a paid vacation to a place that really isn’t all that bad. About the only thing that may happen is it will move to a less expensive venue.