In Announcement 09-11, New Data Delivery Requirements, Fannie Mae announced changes to the loan delivery file and the Uniform Residential Loan Application (Form 1003) to accommodate new data elements required by the Federal Housing Finance Agency (FHFA).

Download Fannie Mae Announcement 09-14-Electronic Appraisal Reports

These changes are intended to result in enhanced identification and accountability of key parties in the mortgage transaction and are another step in Fannie Mae’s ongoing efforts to improve loan quality.

In the coming months, Fannie Mae will announce a series of other policies intended to improve loan quality, including the implementation of a robust collateral valuation analysis process, enhanced credit policy guidance, improvements to Fannie Mae’s quality control processes, and additional guidance on lender quality control activities.

In support of the loan quality initiative, this Announcement includes information about the following:

• Submission of Electronic Appraisal Reports
• Enhancements to the Loan Delivery File Format
• Mortgage Fraud Reporting

 

Sarah Vetault of Tucson, AZ - www.ComplineGroup.com asked on the WinTOTAL Users Group:

"I just got this announcement from Fannie Mae requiring submission of electronic appraisal reports in MISMO XML format by 2010.  I wonder what this means from our end.  Is the good old industry standard emailed PDF going bye-bye, forcing us to use slice/dice/rip-the-data portals for mortgage work?  Or will the lenders rip the data themselves out of our pdf files for submission to FNMA?  We are definitely living in interesting times. "

What are YOUR thoughts?

As most of you know by now, the Home Valuation Code of Conduct went into effect on May 1st. Its primary purpose is to insulate the appraiser from outside influences that would apply pressure to the appraiser to inflate values.

Unfortunately, I have been receiving complaints from our members (ICAP) regarding lenders and AMC’s asking appraisers to reconsider their values. Some of the lenders and AMC’s have even created a form for this purpose. It appears that these forms are being completed by lenders agent or the borrower in most instances. Clearly the borrower is unhappy with the value conclusion and they are looking for a higher value.

QUESTION: HOW IS THIS NOT PRESSURE

ANSWER: IT IS!

The HVCC allows the homeowner to now receive a copy of the appraisal before the closing.  I’m afraid this has added fuel to the fire. In some instances, the homeowner has a legitimate complaint if they feel the appraiser made an error or omission regarding the improvements, but others are going so far as to rewrite the appraiser’s sales comparison analysis to show the appraiser how to get a higher value. Although as appraisers we appreciate all the help we can get when gathering data, this is going a little too far.

I am also being told that certain AMC's are sending the appraiser a list of sales, calling them comparables, and asking the appraiser to write an explanation as to why they did not use any of these in the appraisal. This list usual shows up after the appraisal has been completed not before, so it is not part of the original scope of work, such as in relocation appraisals.

I have been corresponding with Fannie Mae regarding some of the new problems that the HVCC has created.I would like to provide them with examples of this latest form of pressure aimed at appraisers. I can only assume that lenders are trying to skirt around the requirements of the HVCC by having their agents or their clients (the borrower) engage the appraiser. In politics this is known as plausible deniability.

The lender should be filtering this information and determining what should be passed along to the appraiser. Requests to an appraiser for corrections, additional comments, more explanation and additional market data in the form of sales, listings, etc. has always been acceptable practice.

However, I am concerned about the lender, AMC or homeowner who is sending the appraiser sales data and asking the appraiser to consider using them in the appraisal and if not, provide an explanation as to why the appraiser did not use these sales instead of those reported in the appraisal.

Please email any value dispute/reconsideration of value forms you have received to tj@tjmccarthy.com  and I will pass them along to Fannie Mae. We need to work together as an industry to stop this before it gets out of hand.

AUTHOR: TJ McCarthy, SRA - Tim (TJ) McCarthy serves on the Illinois Real Estate Appraisal Board This email was originally sent to members of the Illinois Coalition of Appraisal Professionals – ICAP.

After three years of trying, it finally took a new Governor and a persistent ICAP to get Appraisal Bill - HB1015 passed. The Bill passed in the Senate yesterday unanimously! It will now go to Governor for signature.

This is not a new law, but an amendment to the existing law.  Brian Weaver will be covering many of the changes the new law brings to the appraisal industry in Illinois at ICAP's summer seminar.

You can read the bill as introduced here: http://tinyurl.com/oh9ec4

The following is a brief Synopsis of some of the changes.

Synopsis As Introduced Amends the Real Estate Appraiser Licensing Act of 2002.

• Makes changes throughout the Act that mark the transfer of authority to administer and enforce the Act to the Department of Financial and Professional Regulation (rather than the Office of Banks and Real Estate).
• Replaces "associate real estate appraiser" with "associate real estate trainee appraiser" throughout the Act.
• Changes the Real Estate Appraisal Board to the Real Estate Appraisal Administration and Disciplinary Board.
• Provides that a person who violates certain licensure provisions for a second or any subsequent time is guilty of a Class 4 felony.
• Sets forth additional education requirements for licensure under the Act.
• Removes a provision allowing a person who holds a valid license as a licensed real estate appraiser, issued pursuant to a predecessor Act, to convert that license to an associate real estate appraiser license.
• Removes a provision concerning licensed real estate appraiser's licenses issued pursuant to a predecessor Act and provides that an associate real estate trainee appraiser license may not be renewed more than 2 times.
• Adds a provision concerning temporary license suspension.
• Provides that an education provider may use an instructor who is a faculty member in good standing with an accredited college or university or community college or who is an approved appraisal instructor from an appraisal organization that is a member of the Appraisal Foundation. Imposes conditions on any rulemaking authority.
• Makes other changes.
• Repeals a Section concerning identifying a client. Effective Immediately

Source: http://www.ICAPweb.com

Approved Bill (Mark-up) Download IL Real Estate Appraiser Licensing Act HB1015

 

CALGARY, May 12, 2009 Zaio Corporation("Zaio" or the "Company") announced today that the Company has signed a letter of intent and term sheet ("Terms") with the Zaio Zone Appraisers in the United States to proceed with a plan to complete the Company's national valuation database and offer services to lenders across the country.

The new Terms are expected to solve certain barriers that Zaio experienced in the past while compiling the world's first appraiser certified national valuation database.

Zaio will be issuing a national license for its patent pending technology to a new US entity which will be owned and operated by approximately 350 appraisal firms that currently hold Zaio

Zone licenses in most major US cities.

Zaio will receive a royalty equal to 50% of the profits generated by the sale of products from the growing appraisal and photo database.

Zaio will no longer incur the cost and management obligations of running a large US appraisal operation and will be able to focus on further development of its own technology.

From the Zone Owner's perspective there will be greater incentive to complete the respective market value research and data collection in each Zone. In addition, the unification of these skilled appraisers will create one of the largest national appraisal networks in the United States powered by Zaio's award winning appraisal database technology.

Randy S. Kass, Chairman of the Zone Owners' Advisory Committee says: "We are convinced that the Zaio system offers a revolutionary platform through which real estate appraisals and data can be provided with local market expertise and delivered in a manner that will offer significant improvements to valuation and service excellence."

Bradley Stinson, CEO of Zaio stated: "The Zone Owners are an organized group of entrepreneurial appraisal firms. We are very pleased to work with professionals that have exhibited a passion for market value research."

The Company also wishes to confirm that Bradley Stinson, founder and inventor of the Zaio technology concept, has been officially appointed CEO of Zaio Corporation.

Source:  Zaio (www.zaio.com) 

---

Zaio develops and maintains a secure database of site-verified photos, property information and appraisals of virtually every property in entire cities. Leading local appraisers inspect, and appraise entire neighborhoods, one residence at a time from the street using a proprietary "GeoScore(TM)" rating system. Zaio: a public corporation trading under the symbol "ZAO" on the TSX-V Exchange in Canada.

<< The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. >>

This news release contains forward-looking statements which may include financial and business prospects, as well as statements regarding the Company's future plans, objectives or economic performance and financial outlooks. Such statements are subject to risk factors associated with the real estate industry, and the overall economy in both Canada and the United States. The Company believes that the expectations reflected in this news release are reasonable but actual results may be affected by a variety of variables and may be materially different from the results or events predicted in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on these forward-looking statements.

In evaluating forward-looking statements readers should consider the risk factors which could cause actual results or events to differ materially from those indicated by such forward-looking statements. These forward-looking statements are made as of the date hereof, and unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or revise any forward-looking statements.

SOURCE: Zaio Corporation Bradley Stinson, CEO, or Rodney Mitton, CFO, (877) 318-0537 For full details for ZAO click here.

You've probably seen my Appraiser's Water Cooler Group - Appraiser Tribes ? There I've promoted the POWER of groups of real estate appraisers joining together for common goals on a local or regional basis.

Here's ANOTHER form (or forum) of collaboration that harnesses the power of http://www.Twitter.com by pulling "Tweets" from group members whenever they use one or more keywords.

The service is http://www.Twibes.com and I've create one especially for those of us that are using our iPHones in our appraisal, sales, or inspection businesses.

The Twibe is: http://www.twibes.com/group/iPhoneRealEstate

Once you've joined . . . Anytime you "Tweet" about an iPhone or new App . . .your post will be automatically added to our iPhone Real Estate Twibe. Pretty slick huh?!

All you need is a free http://www.Twitter.com account and a membership to the Twibe!

Here's another Twibe that you might be interested in: http://www.twibes.com/group/iPhone

Ever been out taking rural comp photos and then want to accurately plot them on a map? Maybe one of the many iPHone GPS apps would be the key? They range from FREE! to $4.99 on up! Here's a couple that I've played with: Simple GPS This is great if you just want to know where you are, look at a map, and then send yourself (or someone else) a link to that location. It's super fast and easy. Cost: $.99 Motion X GPS Lite There are both FREE (Lite) and paid ($2.99 limited time offer) versions. This is a MUCH more full featured app that allows your to: * Track your performance * Share Waypoints and Tracks (up to 303) * Share Geotagged Pictures * One-click Facebook Shares * Live Navigation (compass) Have YOU found a good GPS app? Would you use these tools in your appraisal business?

Are YOU interested in building a Tribe? Consider Twitter! Twitter is a micro-blogging platform and it's a little different from any other online or social media tool. When people first begin using it, it can seem overwhelming and confusing.

How can you really type anything of substance in 140 characters or less?

The first thing I usually advise is that you take some time getting familiar with how it all works.

Put up a picture of yourself, find some others to follow, and "tweet" some updates. It may seem a little like you are talking to yourself to do this especially if you are not being followed by anyone else. But it helps to see activity when someone comes upon your page and is making a decision whether to follow you or not.

Once you have observed and participated a little, there are a few things you can do to help you build relationships. Why is that so important? It all goes back to establishing that know, like and trust factor. People like to do business with those they know, like and trust, right?

 I also have a "Twibe"! What is a twibe? A twibe is a group of Twitter users interested in a common topic who would like to be able to communicate with each other. On each twibe's page, there is a list of twibe members. There is also a tweet stream that lists tweets from twibe members which contain key word tags. Tags are set by the twibe founder and are listed just above the tweet stream.

Appraisal Scoop's key word tags are: appraisal, appraiser, AppraisalScoop You can browse through twibes that have already been created by going to www.twibes.com/twitter-groups.

Here are some of the ways to use Twitter to create rapport and get more visibility for your business:

1) Give value. Share links, offer advice and answer questions. I usually suggest a balance of 85% non-promotional tweets to 15% promotional tweets. When you are sharing interesting tidbits, they do not (and should not) be all about your services and offerings. On Twitter, people are looking to learn more about you the person, not just you the business owner. Of course, once they feel that they know you better, they are more willing to eventually buy from you!

2) Engage others. Ask questions, use the @ function to spark conversations and re-tweet others' messages. This helps people get to know you, but it is also a chance for you to demonstrate your expertise. You don't need to outright sell in order for others to see that you have something of value to offer them. Before you know it, others will be re-tweeting (sharing) your helpful information with others, leading to more visibility for you.

3) Use your profile to your advantage. You are able to link to your website in your profile as well as include a small blurb about who you are and what it is you do. Although you don't have a ton of space to write here, be sure to give a little snapshot of your personal self as well as your professional self. This is a great way to get others to explore your offerings, become your subscribers or clients and boost your traffic.

Most of all, remember that Twitter is a place to be you, listen, respond and be helpful. The results for your bottom line may not be immediate, but you are building your reputation and strengthening relationships each time you participate. And that's great for business!

Christine Gallagher, MLS, MSIS, founder of CommunicateValue.com, teaches solopreneurs and small business owners how to use online marketing and social media to communicate effectively and authentically and attract more business. For FREE tips on how to build profitable relationships, leverage technology and create your own successful online business, visit http://CommunicateValue.com Original Article Source: http://EzineArticles.com/?expert=Christine_Gallagher

 

Download Williams Fannie Mae HVCC Delay 04202009

Download Koskinen Freddie Mac HVCC Delay 04202009

This is a Call to Action! Please contact your Senators and Representatives TODAY and urge them to STOP or DELAY (for at least 12 months) the implementation of the Home Valuation Code of Conduct ("HVCC") which is de facto regulation, forced on Freddie Mac and Fannie Mae by New York Attorney General Cuomo.  The file below contains a list of key talking points to bring to the attention of your legislators.

Please contact your legislators today at their in-district offices, as Congress is currently in recess. You can access the contact information for your legislator here. We encourage you to keep trying to contact them if you are not initially successful. It is vital to the overall effectiveness of this call.

Please forward the Call To Action pdf below to your mortgage broker and appraiser contacts.

Download CAMB Call To Action

 

I think that appraisers will find this case very interesting from a variety of perspectives!    The case went all the way to the Court of Appeals in Nashville, TN and was ultimately decided in favor of the appraiser, but not without some interesting twists and turns along the way.

View my page on The Appraiser's Water Cooler

JOSEPH AND KIMBERLI DAVIS v. PATRICK J. MCGUIGAN, ET AL. (Tenn.Ct.App. September 11, 2008).

One of the key elements in the case was a citation Byrd v. Hall, 847 S.W.2d 208, 215 n.5 (Tenn. 1993).

To sustain a cause of action for fraudulent misrepresentation, the Homeowners must show:

1. the Appraiser made a representation of an existing or past fact;
2. the representation was false when made;
3. the representation was in regard to a material fact;
4. the false representation was made either knowingly or without belief in its truth or recklessly;
5. the Homeowners reasonably relied on the misrepresented material fact; and
6. Homeowners suffered damage as a result of the misrepresentation

Download Davis_v_McGuigan_091108.pdf

"The Appraiser contends that the appraisal is an estimation or opinion, and is not a representation of an existing or past fact. Therefore, the Appraiser argues, an essential element of the Homeowners’ claim for intentional misrepresentation is conclusively negated and summary judgment was proper on this claim. Homeowners argue that the appraisal value was not the opinion of the Appraiser, but rather an opinion he gave which the Appraiser did not have or knew to be false. Although Homeowners’ argument applies to the fourth element for fraudulent misrepresentation, their contention does not change the requirement of the first element - that the defendant make a representation of an existing or past fact. In Tennessee, appraisals are not considered facts, but rather estimates or opinions." Id.

"Further, we note that when the Appraiser conducted the Appraisal, he was appraising a home that had not yet been constructed. The Appraiser used the “cost approach” analysis, and referred to, among other resources, the specifications and building plans provided by the Homeowners. At that point, the Appraiser only had plans for the future Home on which to base his appraisal; he could not verify that the materials planned for in the Home were actually used in the construction or examine the workmanship of the construction. In Tennessee, conjecture or representations concerning future events are not actionable even though they may later prove to be false." Id. (citations omitted).

To read the FULL case . . . click here: Download Davis_v_McGuigan_091108.pdf

Tip of the hat to the Tennessee Construction Law blog for finding and reporting this judgement.

Thanks to NAR's Appraisal Insight blog for a "shout-out" on The Appraiser's Water Cooler!

Facebook for Appraisers

For those of you who want the social interaction of Facebook without all the poking, status updates, and lame pictures of high-school friends, Appraisal Scoop has the answer. It's called:

The Appraiser's Water Cooler

This is a social networking forum for appraisers. It appears useful, and anything that increases appraiser interaction and communication is a plus in my book. So sign up.

Source link: click here

While you're visiting NAR's Appraisal Insight blog check out these hot topics:

• Appraisal Foundation President expects Announcement on the HVCC Soon
• Congresswoman Biggert promotes Appraisal Independence
• Will Conservator Repudiate HVCC Agreements?
• Are Lenders Abandoning AMC's?