Mary's Blog

Buyers, Sellers, Realtors, Banks, do you REALLY understand the value of a good appraisal?

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Sat, 31 Oct 2009 09:03:28 -0500

Let's first define good shall we? Good does NOT mean make the number work so the loan will close!

BEFORE you take out your next loan......do some checking into the BANK first, do they use appraisers whose fees have been cut in half? Do they use Appraisal Management Companies (they normally pay appraisers well less than their normal fee and charge the banks more than we would).

Appraisers sole mission in life is to protect the BANK's RISK where a loan is involved. We also protect buyers and sellers by analyzing and reporting the REAL market value so that you do not pay more than the home is worth or you do not under or overprice your home.

A big part of the housing crisis is due to faulty appraising. Many know that the BANKS, Realtors and Mortgage Brokers dictated TO the appraiser what the value should be on the appraisal report. This is 100% backwards and RISKY to say the least. Our housing crash is proof of this!

Thus the inception of the HVCC. Appraisers must be independent from all who have a vested interest in the property and get back to the real job of reporting the true market value for the subject property. Or to put it another way if YOU default on your loan, what can that home be sold for by the bank to get it off their books. Banks have a bloodshed on their hands as the appraised value in many cases was inflated. Why? Because appraisers were backing into the number since the lenders would give them the ESTIMATED VALUE right on the appraisal request form and expect them to come up to that number! I am NOT saying all appraisers played that game, but trust me many did!

Now appraisers have to do what I call BLIND Appraising. They have no numbers to work toward, which is a GOOD thing, they must actually use their appraisal skills and report the market in an accurate way to come up with their opinion of value. Remember we do not determine value, we report it to the client after we conduct a thorough analysis of the market. The MARKET determines value not the appraiser.

So my question to all END USERSof appraisals, don't you think it is worth the FEE appraisers charge to produce a credible, meaningful report? I think so because a faulty appraisal report on either side of the value equation can have significant financial negative impact.

Just as an example: If you live on Lake Lanier and you have an appraiser from Atlanta who does not cover this lake with any regularity appraise your lakefront home, chances are very HIGH that the appraised value will be off and I mean WAY off. SAME thing holds true for any appraisal in any given neighborhood. If an appraiser for example does not know that people pay more or less for a home in a given SCHOOL district for example, the appraised value will be off.

Therefore it is imperative that the appraiser know the market in which they appraiser and better yet LIVE in that same market area.

So you do have control buyers and sellers and homeowners. Do not use banks that feel cheapest is the best, because in this world you get what you pay for and in this case it could financially hurt you BIG time!

A few extra dollars to get an accurate appraisal report is WELL worth it in the end.

Thanks for stopping by my blog!

Mary Thompson

www.marytappraisals.com

HUD needs to define normal appraiser fees for FHA appraisals before AMC's do!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Sat, 31 Oct 2009 08:25:31 -0500

HUD has stated that in addition to adopting HVCC language, that appraisers should be paid their normal market fees for FHA appraisal products.

Well after my discussion with a well known. long standing Appraisal Management Company who most appraisers know as they have been around forever, here are their exact words to me as of yesterday "

"The new national debate will be over exactly what is "normal", and as I understand it, that is a question that will be answered market by market. "

This same Company also tells all appraisers that Appraisers set their own fees, they have control over their fees the AMC does not......That language sticks in my craw BIG time. Why? Because if Appraisers set their normal market fees they will NEVER get work from AMC's. AMC's DO set the appraisers fees as the appraiser is forced to reduce their fees in order to get work from them. I know this because I do NOT get work from them because I refuse to work for 1/2 my NORMAL Fee. I complete a very thorough report and I know the value of my work.

BUT here is the issue.....If HUD asks AMC's what is the normal fee for FHA appraisals in their given market, that NORMAL is reduced by anywhere from $100-$150.00 per report because that is where they set their FHA fees in order to get work from AMC's. So HUD may in error think that this is the true NORMAL fee, when in reality it is not. If they were to call an appraiser and ask what is your normal fee for FHA appraisals they would give you a totally different number than if they were to ask what is your fee for an AMC..

So Realtors, Buyers, Sellers and BANKS need to know the value of a good appraisal and that one has to pay the fee for a truly accurate and meaningful report.

Please see my other post below about what you can do to help with this problem:

http://activerain.com/blogsview/1304602/realtors-you-can-take-control-of-the-appraisal-process-and-hvcc-by-doing-just-one-thing-

Our mission in life is to protect the BANKS risks, this is HUGE...Let me repeat Appraisers exist in this world to protect the Banks Risks, by analyzing and reporting their findings. WE DO NOT DETERMINE VALUES. This being said would you want an appraiser whose fee has been cut in half doing apprasials for YOUR BANK? I think not!

The trend is to standardize all appraisal reports and automate them as much as possible, based upon software that will essentially produce reports with a great deal of numerical analysis, unbiased reporting and market based adjustments for variances in comparable sales vs. the subject property. BUT you cannot automate the entire process.

SOME AMC's want to automate and standardize our process as much as possible so that the time it takes to complete a report is cut in half and yes you guessed it keep our fees LOW. But when you appraise in an area like ours, you are not dealing with cookie cutter properties and you cannot automate the entire process. You still have to be adept at determining which neighborhoods are really comparable, which sales are really comparable and to do this you have to know your market WELL.

There is a shift toward using appraisers who live close to the subject property and who regularly appraise the area. I am all for that shift. When appraisers drive 30+ miles to homes they just do not know the ins and outs of that particular county and neighborhood, unless they work in the area on a daily basis. But it happens all the time as that is where the work is for many appraisers.

So my request of HUD is this, do not use AMC's fee data to determine what is normal market rate. It is far from normal. They essentially drive down and dictate our fees FOR us as they pit appraiser against appraiser for the best fees. We do not have control of our fees with AMC's. There are a very few AMC's that do pay FULL fee to apprasiers and I commend them for this. I hope most banks work with them. SOLIDIFI is one of them. www.solidifi.com They do not feel the need to dictate fees or dictate every step of the appraisal process to the appraiser and how it should be completed. They look for experienced, well seasoned appraisers to get the job done....as it should be!

It is very important that all parties understand the importance of good appraisal reporting See post below on this subject.. and YES..appraisers need to be paid for their expertise.

http://activerain.com/blogsview/1312887/buyers-sellers-realtors-banks-do-you-really-understand-the-value-of-a-good-appraisal-

The housing industry will rise again or fall based upon the quality of a GOOD appraisal. BY good I do not mean make the number work, I mean to report the REAL value of the property in question. Remember we are protecting the Bank's RISK.

Realtors you CAN take control of the Appraisal Process and HVCC by doing just one thing!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Mon, 26 Oct 2009 16:49:51 -0500

Realtors you have more control than you realize in this business or maybe you already know this....

With all the complaints about appraisals killing deals and coming in low and in turn keeping the real estate market depressed, here is ONE single thing you can do to try to make an impact in your business.

I know that many of you recommend mortgage brokers or Banks to your clients, well when you do, find out via the broker or directly from the BANK if they use AMC's (Appraisal Management Companies). There are still plenty of Lenders who do NOT use AMC's. A few of them are Guaranty Bank, Fairfield Mortgage, Fidelity Bank, Suntrust Bank, Shelter Mortgage and Guaranty Mortgage Services right here in Georgia and I believe these Banks originate loans in other states as well.

So do some checking around in your areas and see which Banks and Mortgage Brokers are NOT using AMC's. There are some good AMC's out there but most pit appraiser against appraiser and they will use the appraisers who charge the least amount of money, regardless of experience and quality reporting.

Remember even if these other large Banks like Bank of America and Wells Fargo who DO use AMC's have better rates for your clients, what difference does it make if the appraisal kills the deal for them. So they need to consider this fact when selecting a bank.

Realtors, you can have a huge impact on this problem by forcing the BANKS who DO use AMC's not to use them since you will not be sending your client their way any longer!

By using BANKS who do not use AMC's, chances are far greater that you will be getting a quality appraisal report and the appraisers will know the AREA in which they appraise. WHY? Because the Banks who do not use AMC's pay the appraisers their market fee and because most of these banks have hand selected the appraisers that they have worked with for years and they do not want to lose that relationship.

The HVCC still provides a wall of independence so that there is no pressure involved to HIT a number, which is a good thing so that people do not pay more than the home is worth, but at least the banks know that these appraisers have been around for years and they know they produce quality reports and thus the reason for hand picking them. This is also the reason they DO NOT take their chances with AMC's. They use a non production work force to order the appraisals within the bank. HVCC does not require banks to use AMC's like so many people thought.

So use the CLOUT you have as REALTORS and do some research. Tell your clients that you go beyond the call of duty by making sure that when the property is appraised it is by someone who knows the area and who has the experience to get the job done and who is NOT being paid cut rate fees to perform the job at hand. Trust me when I tell you appraisers who get paid 1/2 their rate will CUT corners, I know because I have reviewed their reports and they are scarry to say the least.

I know being a Realtor these days is ONE TOUGH JOB...but you CAN make a difference by exerting pressure or diverting business where it needs to be and your clients will thank you for it!

I am a true believer in the "You get what you pay for" philosophy and in this case the poor appraisals many times are due to the cut rate fees the AMC's are paying the appraisers and sending appraisers to uncharted territories because they have the lowest rate for that county.

Rainmaker Mary Thompson to be interviewed by The Weather Channel.

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Tue, 20 Oct 2009 12:02:20 -0500

Is it okay? Can I toot my own horn please???
Airing tonight 10/21/09 on Their Evening Edition. Tune in if you wish!

Marina at full pool! What a difference, beaches and sand bars could be seen from this location last year!

Last October I was interveiwed by The Weather Channel due to our severe drought and how that would impact Real Estate Values. It was not a pretty picture as we were 18 feet below full pool at that time.

I contacted The Weather Channel last week when we hit full pool to tell them the good news (we rose 18 feet in one year) and that they should do another story about Lake Lanier hitting full pool and what good news that is for all concerned. Well, they contacted me and today at Aqualand they are conducting an interview with myself and Len Jernigan of Aqualand Marina , to talk about Real Estate now and Business now with the lake being full. Should be a much happier story!

The only bad news is the average Lake Home Sales price declined 25% from 7/08 - 10/08 as compared to the same time this year. But the GOOD news is that we have seen 2 times, yes double the number of sales in this same period on Lake Lanier and we have 19 homes pending, of which 30% went under contract in October and 80% went under contract in the months of September and October combined.

I plan to tell them that we have 3 things in our favor, dock permits being gone by the end of October, water levelsabove full pool and the market seems to be stabilizing.

I also plan to tell them that Lake Levels seem to be tied to the DOW interestingly enough, whether that little tidbit will make the cut, who knows!

So I will let you know how it all turned out and when they plan to air the show.

Have a great day everyone. Remember if you need a current value on your Lake Lanier home you know who to call.

Mary Thompson

Lake and Waterfront Appraisers, Realtors. take advantage of your Expertise and HVCC

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Mon, 12 Oct 2009 08:55:24 -0500

Since the inception of the HVCC in May, one thing has become clear, AMC's (Appraisal Management Companies and Banks are starting to require expertise, experience and closer proximity to the subject property being appraised.

Why? Because Realtors, Buyers, Sellers and Mortgage Brokers are demanding this! So if you are an appraiser who specializes in Lake or Waterfront Property Appraisals, capitalize on your expertise by getting listed where Banks and AMC's WILL find you from across the Country... www.lakefrontappraiser.com REALTORS welcome here too. www.lakefrontpros.com

I know what you appraisers are thinking.....because I too am getting emails every day practically to join a new appraiser directory, they are a dime a dozen and they are coming out of the woodwork, but there is NO directory like this one out there period!

This is a specialty directory that GUARANTEES appraisers will come up in Google search (first page) within the first 3 returns under a search for your Lake within 30 DAYS of being listed on www.lakefrontappraiser.com PLUS this directory offer something NO other directory does....NETWORKING as not just appraisers are listed, ALL Lakefront PROS are listed. A unique but very successful model in the directory business.

** Don't believe me well just go to Google now and type in Lake of the Pines Appraiser, Lake Fenton Appraiser and Lake Lanier Appraiser (yours truly) and see that either LakefrontPros or Lakefront Appraiser (same site) comes up on the first page of your searches because these appraisers are currently listed in this directory!

I get a SIGNIFICANT amount of business because of My Lake Lanier experience, I have basically cornered the market in this area, so can YOU if you specialize in lake or waterfront property.

So get listed, and use LAKEFRONTPROS in your sign up email to us and you will get a 20% discount from now until the end of the year! Anyone referred to the site via Active Rain will also get 20% off.

To all other Lakefront Pros, ie: Realtors, Mortgage Brokers, Retailers, you also should be listed and you too will get a 20% discount. www.lakefrontpros.com

Have a great day and start taking advantage of your expertise TODAY!

I want to know what my home is worth but dont want to pay for that appraisal!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Fri, 02 Oct 2009 13:40:07 -0500

As an appraiser, I really get mad when a Loan Officer, Realtor, Buyer or Seller calls and says, hey can you just run some numbers and see how much a home is worth cause I don't want to have to pay for an appraisal if the deal wont work!! In other words....I want YOU to work for:

Well finding out what your home is worth....is WORTH something! Your deal may not work, but now you know the current value of your home and can move forward from there. In order to have this valuable information, YES, you have to pay for an appraisal. No professional should have to work for FREE. Appraisals, especially in today's market are not as easy as one might think, plus we put our LICENSE on the line every time we sign an appraisal report.

Did you know that if an appraiser gives you a VERBAL value, they are still bound by USPAP, they are still providing an appraisal service, so when you ask them for a simple verbal, it is NOT that simple! You are asking more than you should of your appraiser.

One of the nice things about the HVCC is that people are not supposed to call the appraiser any longer and have this kind of conversation.....however it still happens. I just got this call a few days ago from an out of state lender.

All appraisers know that doing what we "lovingly" call a "comp check"on the chance that it will result in an appraisal order is against USPAP...however appraisers did this little favor for many years and that is why people feel they can call and get this information from us.

So please I ask of you, let's appreciate what an appraisal really is and realize that you are not respecting an appraiser if you call them and ask for FREE valuation services. It is just not proper business practice.

Thank you!

So now.... what do YOU think?

RIO TO GET 2016 SUMMER OLYMPICS, CHICAGO ELIMINATED FIRST

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Fri, 02 Oct 2009 13:19:01 -0500

As a fellow Chicagoan transplanted to Georgia I am bummed that the 2016 Olympics will not be hosted by Chicago. Would have been a good reason to go back home for vacation that summer. But hey Chi Town cannot compete with RIO when it comes to BEAUTY!!!

Chicago was eliminated on the first round of votes! So Obama's pitch did not seem to do the trick. In one way I am glad of that, he might get a big head about somehow convincing the Olympic committee to do as he says. I mean he is pretty used to having things go his way after he makes an eloquent speech! But it was not to be this time around.

So maybe I will plan a trip to RIO in 2016.......Now that would be a real vacation!

Take care all and have a great weekend!

Huge FHA News!!! FHA IS ADOPTING HVCC AS OF JANUARY 1ST...GET READY FOR CHANGE!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Sat, 19 Sep 2009 13:07:10 -0500

Yes it is true, just yesterday, September 18th FHA sent out a Mortgagee Letter to all lenders that they are adopting HVCC in most of its current form.

By now most of you know about HVCC, if not please check my previous blogs on the subject. Fannie Mae adopted HVCC (Home Valuation Code of Conduct) on May 1st. as they wanted to insure appraiser independence. In short this means that mortgage brokers can no longer order appraisals from appraisers. It is now being handled by AMC's (Appraisal Management Companies) or the Banks directly. No production staff that is paid commission based upon a loan closing can order appraisals.

Due to this change, what was happening was FHA loans were on the rise BIG time as the brokers still had control over the appraisal process. That will end January 1st. FHA does not want to take on any more risk than they already have and FHA does not want and they are not asking the Federal Goverment to bail them out. They have enough in reserves to deal with any loses they have. So FHA must make sure that appraiser independence is guaranteed to minimize on this lending risk. I am not surprised at all, I really was expecting this from FHA.

What does this mean?

1. Good news for appraisers, the AMC's who normally pay CUT rate fees and who care less about quality appraisal reports and experienced appraisers and more about making money, must pay appraisers based upon normal market rates for completing FHA assignments. However the borrower will wind up paying more for FHA loans as the appraisal fees will be even higher....at least this is my take on the situation as the AMC's will jack up their prices to the banks to pay the appraisers what they should and to make profit for themselves as well.

2. Mortgage Brokers will no longer be ordering appraisal reports. So this repsonsibility will go to the Banks or the AMC's.

3. Appraisal reports will only be good for 4 months rather than 6 months.

4. Good NEWS: FHA will allow appraisal reports to be transferred to another lender rather than having another appraisal report completed.

5. The only way another appraisal report can be completed if someone does not agree with value is the report will have to be flawed in some way and it will have to be proved that flaws exist in the report

6. No one can talk to appraisers about value issues. REALTORS, you can still give Appraisers comparable sales data, that is NOT prohibited, you just cannot talk to them about value. The banks and AMC's can discuss particulars of the assignment, but no one can pressure an appraiser for value PERIOD!

7. As of October 1st only CERTIFIED Appraisers can complete FHA appraisal assignments.

8. FHA will require that the appraiser is knowledgeable in the area that they appraise. So if you find an appraiser coming from way out of the area to do an appraisal, this would be one reason to suspect the accuracy of the report. This has ALWAYS been required of appraisers as part of USPAP ( Competency RULE) but many appraisers would take the job no matter where it was and this is not good, if they have no clue about the area.

9. Banks will be liable for the loans they underwrite, not brokers, so there may be more FHA brokers coming from the picture.

To read more about it click here for the full story:

http://www.mortgagenewsdaily.com/09182009_drastic_fha_guideline_changes.asp

Pass this along, this WILL affect your business as of JANUARY 2010.

Mary Thompson

Your Active Rain Appraiser

www.marytappraisals.com

Lake Lanier Sales Statistics for first half of 2009! We have hit bottom.

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Tue, 15 Sep 2009 12:37:54 -0500

Lake Lanier Blog

Lake Lanier Sales Statistics for 2009 First Half...We have hit bottom! September 15th, 2009 1:24 PM

Here are the long awaited Lake Lanier Sales Statistics for the first Half of 2009. These include only those homes that have individual boat docks or permits in place. They do not include community docks, shared or platform docks.

1/1/09-6/30/09: There are 479 current listings that range from a high of $4,875,000 to a low of $155,900. **Remember WAY back many years, when you could find a LAKE home under $200,000. Well there are some to be had again.....But not for LONG!

** Average listing price is $829,000 out of the 479 listed.

** Average list price last half of 2008 was $722,000 so we are up 13% there.

There are 24 pending or contingent sales of lake home sales that range from $169,000 to $1,799,000.

*Average pending price is $600,000. This is up 20% compared to last half of 2008 with average price of those pending at $477,000

1/1/09 - 6/30/09 - There was 48 sales that ranged from $309,000 to $1,265,000.

** Average sales price was $478,594. Average Days on Market was 162 (however this number is actually higher as many homes were listed and then re-listed at new prices and the counter for days on the market started over again) Many homes on the market for well over 6 months and many were on the market over 1 year.

** Compared to 2008 during the same time there were 145 sales from low of $150,000 to a high of $2,500,000 and the average sales price was $578,372. OUCH! That is an almost 18% decline in average sale price. Even worse when compared to the last half of 2008 with an average sales price of $671,000.

**Average list to sales price ratio for first half of 2009 was 14%. Average list to sales price ratio for first half of 2008 was 10%. So sellers are taking more of a hit off their list price to get their homes sold.

FORECLOSURE SALES: There were 16 foreclosures in the first half of 2009 compared to 8 foreclosures in the first half of 2008. This means 33.3% of the 2009 sales involved foreclosures. Only 5.5% of sales in first half of 2008 were foreclosures.

NOTE: These numbers could be a higher as the search was for Corporate or Foreclosures noted in the Special Circumstances field of FMLS.

What does all of this mean? Well it means that 2009 was one tough year on Lake Lanier! This is really no surprise to most of us when you consider the entire country had the worst year ever in 2009.

It also means people are willing to cut their loses, but not to a great degree. Fewer sales tell me 2 things. People are not buying AND people are not willing to sell at these rock bottom prices.

We have finally seen a rise in the lake up to 5.0 feet below full pool from 20 feet below in December, 2008. Recently it has dropped to almost 7.0 feet below summer pool. We are getting some much needed rain this entire week so we may just get that number back up to 5.0 feet by the end of this week, maybe even knocking on the 4.0 feet below full pool door!

In October, 2009, the last of the dock permits are planned to be issued. If the lake continues holding water, our deep recession (I really think we are in a depression) starts to ease a bit and the fact that we have more pending Lake sales than last year, I truly believe we have hit the bottom and there is nowhere to go but UP!

It is imperative that if you are thinking of selling or buying that you get your Lake Lanier Home appraised so you know what the CURRENT market is for the home and you do not make a huge mistake by either leaving money on the table as a seller or as a buyer, over paying for your new dream home!

If you have any questions, feel free to contact us.

"Your Lake Lanier Appraiser"

Mary Thompson

www.marytappraisals.com

Just when you thought things were tough, big company is paying it forward instead of looking for handout!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Thu, 06 Aug 2009 14:55:17 -0500

I really hope this makes the featured blog as I want to pay it forward to a special business man.

Steve Burge with www.LakeLanier.com.

I am wearing my Radio Show Host hat rather than my Appraiser Hat with this post.

The news is so depressing these days and aren't we all sick of the big companies with their hands out for government bucks that we are paying for in taxes, with NO thanks or appreciation of any kind?

Well, today I was really taken back by a large company right here on Lake Lanier paying it forward to us. www.lakelanier.com Steve Burge, the owner of this very successful online company is helping a budding radio show www.lakefrontradio.com with some needed sponsorship to keep is alive and well.

The hosts of the show are yours truly and my husband Chuck Thompson. We have been fortunate enough to interview some really interesting people, from Shark Divers, to a 73 year old female aerial pilot and photographer, to Lake Lanier Islands, Navy Pier out of Chicago, a Navy Captain, Treasure Hunting Diver - Mel Fisher's grandson, etc.

If you want to take advantage of the now HUGE exposure we will be getting on this show due to www.lakelanier.com sponsoring and placing our show on their website, you too can become a sponsor and I guarantee you it will be worth the ride along with us!

We want to sincerely Thanks Steve at www.lakelanier.com for placing his confidence, financial and moral support behind our Radio Show. It makes me feel good about Big Businesses who help the little guy.

We cannot thank you enough!

Chuck & Mary Thompson - Your Hosts

So are you wondering how the appraisal business is going since the HVCC took effect in May?

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Wed, 01 Jul 2009 15:38:40 -0500

As an appraiser we have noticed one thing is certain. The office is free of phone calls! We rarely get calls anymore asking about values, what do you think the home will appraise for, etc., etc.

The orders just come in via email or fax and away we go! I cannot tell you how nice it is not to have people calling us wanting to know if they think a home will appraise for a certain number before they place an order.

All orders coming from BANKS or Appraisal Management Companies.

BUT if you want to get a feel for value without having to pay for a full appraisal. Well remember that all appraiser can and will do either Drive-By appraisal reports or desk top reports for a fraction of the cost of a full report.

We are also offering special prices on PRE-LISTING appraisals. It is a full interior/exterior report, but we discount it for the client as we do not have to jump through so many hoops when we are dealing with a personal appraisal report and not one that involves a BANK or a LOAN.

We have been busy talking to Realtors at their meetings all about the new world of appraising and I cannot tell you how profitable that has been. I have had MANY agent referrals for appraisals. We always had a good referral network with our local Realtors, but now more than ever they are suggesing to their clients to get that appraisal up front before they buy or sell property.

The few hours that I spent at their offices have paid back many times over. So it is always true if you help people they will help you back.

Business has been steady, not ganbusters, but not dead either so we are grateful.

We have had a chance to kick our other business into full gear...we create custom slide shows for upscale property listings and for all other occasisons. When I say CUSTOM, I mean custom. Not your typical slide shows. So if you have a chance check it out. www.customssc.com

Thanks for stopping by and I will keep you posted on the Appraisal world!

I have also been helping people with review appraisals. If they do not agree with the report on their home, I review it for them in the areas that I cover. A nice little side business too!

Have a wonderful 4th of July everyone and be safe!!

Mary Thompson

"Your Active Rain Appraiser'

www.marytappraisals.com

Is there any way to know what a house is worth without having to pay hundreds for an appraisal?

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Thu, 04 Jun 2009 10:55:04 -0500

Unless you have been under a rock this year, you know about the HVCC regulations that were effective as of May 1st, 2009. If not, please go to my blog, I have several blogs on this topic.

Gone are the days when a mortgage broker can call up an appraiser and ask us to "check the comps" to see where the home is value-wise before ordering an appraisal report. Now let me say "comp checks" should never have been done to begin with they are against USPAP, but we all know appraisers got around this one way or the other as long as an appraisal order was in their possession.

So now how do Realtors, Buyers, Sellers, Banks, Mortgage Brokers know what the value will be without having to pay hundreds of dollars to find out? Enter Desk Top or Drive-by appraisal reports.

I will preface this with saying that in my humble but experienced opinion, there is no better appraisal product than a full interior/exterior appraisal report. Unless we see the whole picture, there is always some doubt involved and therefore the value could be affected.

BUT for those who want a clue on value, we can do a Desk Top report, whereby we pull courthouse records on the home in question and talk to the homeowner about interior amenities and assuming they are telling the truth, we should be able to provide a fairly credible valuation for a fraction of the full appraisal report.

We can also do what is known as a Drive-by appraisal report. Just as it sounds, we drive by the property and we see it only from the exterior, but it gives us an idea on the neighborhood, exterior quality, site appeal, etc. much more so than a Desk top, where we do not leave the office.

On special properties like lakefront, river front, large custom homes, these reports would be less credible as we really need to see your lake lot or all the quality upgrades you have on the inside of the home, but for many other homes these reports can at least give you an ideas as to whether the loan is going to work for you or the price you want to pay for a home or sell a home realistically, without paying hundreds for a full report.

So ask your local appraiser if they can produce these kinds of reports for you and for my fellow appraisers out there, I suggest if you do not have it there already, you offer this on your website, to generate more business and maybe not have to deal with AMC's as much for your lender business.

Just a thought! Good luck out there everyone

Mary Thompson

Your Active Rain Appraiser

www.marytappraisals.com

HVCC has been in effect one month now......how has it affected your business?

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Sat, 30 May 2009 09:43:29 -0500

Well we made it through the first month of the new HVCC regulations! I have used some of my time to speak at Real Estate Sales Meetings about this new regulation and how the Agents can be proactive in this situation. Please see the handout below that I gave to each Agent. The meetings were very well received and they were glad they had the inside scoop on the HVCC.

In the last month I have had many homeowners calling or emailing me and asking whey their appraisals are coming in so low or why the appraisers are using all foreclosures for the comps, which I posted on Active Rain about earlier.

There were a few mortgage brokers calling me for "comp" checks prior to ordering the appraisal and of course I told them they need to get with the new HVCC regulations, plus it is against USPAP to provide a value in order to get an appraisal assignment!

FHA has not yet adopted the HVCC regulations but I think it is just a matter of time. They may be waiting to see how it is going for the conventional loans.

We have seen an increase in appraisal management orders and I really resent the fees they pay! I have asked them to raise my fees (still below my normal fees) and guess what....the orders stopped! There are a few companies out there that do pay decent fees and still make money by billing the lenders $25.00 to $50.00 over what the appraiser bills them.

The companies that are paying a paultry $150.00 to $250.00 for an appraisal with the new 1004MC form are getting what they are paying for in my opinion!

I talked to 2 appraisal management companies this week. The first said they select appraisers based upon proximity to the subject property and years of experience as an appraiser. Fees were not even a real consideration in the process.

The 2nd company who pays about 50% of the appraisers fees told me that they select appraisers based upon Turn around time (how fast they can get the job done) the proximity of the subject property to the appraiser's office and their fees. The lower their fees, the more work you will get! This is really scary to me! What kind of product are you going to get if you rush through it and get paid 1/2 your normal fee? I will let you answer that question.

We discussed the $30.00 extra fee they were paying for the completion of the 1004MC form and they told me that they talked to many appraisers and they said they were getting used to the new form and it is taking less than 30 extra minutes to complete an appraisal report.

Well I told them that they are paying for FORM fillers in this case. These forms are loaded with information and you need to really analyze these numbers carefully. You also need to now how to select the numbers that go on these forms. Junk in, Junk out as they say.

These numbers can be very misleading if you do not provide additional information addressing these numbers. Each neighborhood is different where we are and you cannot just pop the numbers on this form and be done with it....But the AMC's do not care about quality analysis. They do not even have a selection process based upon quality reporting! So you can make a bunch of errors (and trust me I have seen some of these reports in my review process) but as long as you have a fast turn time and low fees...you keep getting the orders!

There are more and more appraisals being ordered via Appraisal Management Companies (AMC's). These companies are getting rich and the appraisal reports, well lets just say they may be less than accurate.

Below is what I provided to the agents at my meetings to help them in this HVCC maize. I hope it is helpful for you and feel free to print this off for your next Sales Meeting.

HVCC - Be Prepared

•1. Leave package for Appraisers in Home - Comps, including interior information about homes that appraiser may not know about. Leave it at the house clearly marked since most homes are on lock box and you may never know when the appraiser will show up to the home. If the appraiser does call you DO NOT discuss values, just tell them you have left a package for them in the home that you would like for them to review.

•2. Special Stipulations for Lake, Mountain, River Property, etc: Focus on "Competency". The lender is NOW responsible for accurate appraisals, so they need to select an experienced, competent appraiser for these special properties. This stip. protects buyers and sellers. If you want to include 3 names of appraisers that you know have this experience include their name, company name and phone number. This will ensure that you are NOT trying to steer the lender other than to make sure they are using a competent appraiser for the property in question.

•3. Allow more time for Financing Contingency: Since appraisals are ordered by a third party and not the broker there may be a delay in getting the appraisal. Brokers can request rush deals from the AMC or Banks, but no guarantees.

•4. Be Prepared for Low Appraisals: Get the lenders procedure for rebutting low appraisals, but make sure that you have strong comp datato make your case. Comps cannot be older than 3 months ideally. You can provide pendings and listings but make sure they are not brand new or have been on the market for over 6 months. If the listing is brand new, the home has not been tested long enough on the market, too old and it become apparent that listing is overpriced and not very reliable as a comparable.

•5. Be careful with buyers shopping lenders: In most cases buyer will have to pay for a new appraisal, the first one will not be allowed to be used by the new lender.

•6. If in doubt about the home's value get an appraisal first: We can do a desk top, drive-by or full interior appraisal report so that your sellers have a good idea where they should price their home. Sellers need to know that things have changed and surprises will occur if they do not price their home to SELL. Otherwise I suggest you walk from that listing as it will not be worth your valuable time and efforts. Use appraisers to help you drive this point home to your sellers.

•7. The new law DOES ALLOW for Buyers, Sellers and Realtors to call appraisers directly to order appraisals when LOANS are not involved. So pre-listing, pre-purchase, estate, divorce, tax appraisals, etc., can be ordered directly from the appraiser.

Mary Thompson

www.marytappraisals.com

Appraisal on your home coming in too low? Loans being denied due to appraisals? Appraisal Review services available in Georgia

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Sun, 03 May 2009 08:33:40 -0500

As you should know by now, HVCC (home valuatin code of conduct) took effect on May 1, 2009. If you do not know what I am talking about, please visit my past blogs on the subject. Everything you need to know about HVCC's but were afraid to ask.

I have already had a person coming to me from my Active Rain blog on The real skinny on why appraisers use foreclosures to value your home filling me in on a horror story about the appraisal on her home here in Georgia. It came in WAY under her expectation. There were many errors in the report as to the basic desciption of her home, so she was rightfully suspect of the overall value conclusion.

Here is what we are offering to those folks in the North Georgia area: Atlanta, GA and northward up to Dawson County. We are offering Appraisal Review services. If you or a client thinks their appraisal is flawed or just plain NOT correct, we can review that appraisal for you and provide ammunition to refute the report as flawed (per HVCC the lender can and should order another report if the appraisal is flawed) OR we can reaffirm that the appraised value is accurate and at least you now have a second opinion!

Second opinions are a must when it comes to your physical health and it should be used for Real Estate "health". Many lenders use review appraisers to make sure the first appraisal is accurate and relocation companies always get 2 appraisals of the same property, so why not use someone who has the expertise in appraisal work and appraisal reviews to help you make sure that your property is properly valued. YOURS TRULY!

Check out our website or contact me via Active Rain if you know of anyone needing a review of their appraisal. It could mean the difference between loan approval or denial.

Thanks and good luck out there!

One more week to go before HVCC kicks in May 1. Are your buyers and sellers ready!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Fri, 24 Apr 2009 07:54:53 -0500

Time is running out!

HVCC is a reality, it is upon us, banks are getting ready and things will CHANGE! Was just working with a bank getting ready to take on the task of ordering appraisals as opposed to sending them to AMC (appraisal management companies) That is the good news....The bad news......More deals are going to fall thru due to appraised values and YOU cannot do anything about it unless you follow my suggestions on a previous (featured) post. See link below!

My post on HVCC how realtors can help!

I asked this BANK if they get a request for a Lakefront Appraisal, can the Loan Officer specify to use a Lake Appraiser and their answer NO!

....BUT if you put this in the contract, they have no choice but to get an appraiser that has this kind of experience. This is not against HVCC as we are talking competency here.

The BANK says to me if an order is placed with an appraiser not familiar with Lakefront or other special properties or locations, they are supposed to decline the order per USPAP (uniform standards of professional appraisal practice) While this is TRUE, that does not happen, they will take that order and who knows what you may wind up with! This happens with Appraisal Management Companies all the time! They do not care what your area of expertise is they want fast and cheap.

The companies that I am referring to who are NOT going with an Appraisal Management Company is Guaranty Mortgage, Shelter Mortgage and Guaranty Bank. So if you CAN, I would definitely refer your clients to these banks, WHY? Because they are using the appraisers that these companies have worked with for years and have established good relationships with. They must do a ROUND ROBIN ordering system, but chances are the appraisals will be quality ones due to the many years of experience these appraiser have.

If you cannot use these banks, then ASK the banks or mortgage brokers you are working with if their appraisal ordering is done via Appraisal Management Companies or via their own banks. STEER clearof banks using AMC's. If we squeeze them out, they will do one of 2 things.....Disappear or pay their appraisers what they are worth and with that comes quality reports. You know, you get what you pay for!

So YOU DO HAVE Control. Take care of your clients as they will need it during this time.

We can provide REVIEW services for your clients if need be! We can review appraisals here in Georgia in the counties we cover to make sure that the APPRAISAL is indeed accurate and factual. Contact me if interested.

You may also want to have an appraisal done on a property that your client is thinking of buying or selling...rather than providing them with a Market Analysis. WHY? BECAUSE you can fight the lender with this appraisal if their appraisal appears flawed in some way. At least you have some ready ammunition should this occur.

Remember that YOU may no longer discuss values with Appraisers directly as this is against HVCC. But you can discuss your concerns with the banks or brokers who can relay this information to the BANKS.

Hang in there and be PREPARED....this is your best offense!

Mary Thompson-Certified Appraiser

www.marytappraisals.com

Realtors, Buyers, Sellers and Lenders if you talk to APPRAISERS, you are breaking the law!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Fri, 17 Apr 2009 14:38:50 -0500

I knew that one would get your attention. Not as drastic as it sounds, but you need to know there is some truth here. TREAD LIGHTLY

If you have not heard about the HVCC regulations taking effect May 1st, then you need to check out my blog about the HVCC.

HVCC How Realtors can help

Why Appraisers use Foreclosures

One of the essential issues in this new regulation is that NO ONE will be able to pressure appraisers to "get" a certain value for a property. Mortgage Brokers can no longer order appraisals from Appraisers, only BANKS and third parties can order reports. No Loan Officers, Realtors, Buyers or Sellers can put any pressure on the appraisers. They must let them do their job without undue influence one way or the other....or they are breaking Federal Law! YES that is true.

If the appraiser feels they are being pressured, they have a number they can call to report YOU! So tread lightly on providing appraisers with comp data. NO PROBLEM providing a list of comps and any data about certain sales that may not be common knowledge or that the appraiser would have no way of knowing, but do not tell the appraisers which comparable sales they should use! They need to review what you have given them and then THEY decide which sales are indeed comparable to the subject property.

TRUE STORY that just happened today!Our neighbor sold his brothers condo in Atlanta after his brother died. He moved everything out for the buyer as they were supposed to close TODAY...Well our neighbor made the mistake of meeting the appraiser at the property and proceeding to give him all the details ad- nauseum on the property and told him he wanted to make sure that the appraiser came up with the RIGHT value...BIG MISTAKE.and after the appraiser completed his on site work he asked him so what do you think it will appraise for.....another mistake. Appraisers can't tell you...number one... unless you are their client and site work is just the first part of the entire process. We do not just pull that number out of the air, we need to do a good deal of work back at the office before we come up with a number.

The appraiser basically told our neighbor the seller (who was NOT the one who hired this appraiser, the seller's lender did) to leave him alone and that he is NOT talking with him about this condo and that he should just leave him alone. Well my neighbor calls asking about the closing and it turns out the Appraiser refused to complete the appraisal and told the client, lender that the seller was harassing him for value and that he refused to complete the appraisal. So now they have to start all over again...and get another appraisal....I hope my neighbor learns not to do this again!

Now I Am NOTcondoning the appraiser's behavior, and he certainly should have told the client/lender what happened right away instead of delaying the closing another week, but I will tell you that if you feel compelled to tell the appraiser to review comps that you supply because other sales (many times inside the same development as the subject) are not good for some reason, you better have good facts to support your contentions.

Here is my suggestion to avoid problems: If you want to supply appraisers with sales data, give them the list both of the sales and of the subject property amenities, Then just tell them you are there if they have any questions about any of the sales or the subject property and give them your card. On the list of comps you give to them, make a note of any unusual conditions of the sale or of the home. You do not need to talk the appraisers head off because to be honest, the more you try to "convince us of anything" the more suspect we become, so don't shoot yourself in the foot okay?

So be careful out there. Things are going to be different. Trust me when I tell you appraisers don't kill deals, the market does and we have no vested interest in killing deals, we just have to report the facts. If you feel the appraised value is flawed you have recourse, just provide stats and fact to the bank and force them to order a new appraisal if it comes down to that. But it has to be proven to be a flawed appraisal, not just one that you may not agree with.....

HVCC How Realtors can help

Why Appraisers use Foreclosures

HVCC effective May 1st. How Realtors can make a difference right NOW!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Tue, 31 Mar 2009 18:30:13 -0500

Hello everyone, just wanted you to know that the HVCC (home valuation code of conduct) is soon going to be a reality come May 1st, 2009 and you need to take control now. you need to take control now in your SALES CONTRACTS.

If you have never heard of HVCC...You are in for a RUDE awakening! PLEASE READ ON....

I hope the powers that be here on Active Rain make this a featured post because this information is critical to your sales DEALS not falling apart every time due to the appraisals.

In a nutshell, when this new FEDERAL law takes effect in May, Mortgage Brokers, Realtors Buyers and Sellers will have NO control over the appraisal process. Brokers can no longer order appraisals directly from appraisers, Realtors, Buyers and Sellers can no longer order an appraisal and then bring it to their lender or bank for a loan.

Banks are the only ones who can order the report directly from the appraiser or a third party will do the ordering hired by the Banks. These third parties are what we call Appraisal Management Companies (AMC's). The banks are hiring these companies to puts a layer in between the banks and the appraiser for more independence and less lender pressure on the appraisers to "make the value".

**Any of the above individuals CAN order an appraisal directly from the appraiser if their reason for the report is not for a LOAN, IE; to determine a listing or sales price, to obtain current value, a divorce, estate, tax rebuttal appraisal, PMI removal, etc. That is NOT prohibited and is actually encouraged in this ever changing market ***

Here is where REALTORS, buyer and sellers DO have control. Just the other day I was appraising a Lake Lanier property (our specialty) and I was very HAPPY to see that in the sales contract under the special stips page was the following statement:

" Buyer shall have all the rights and provisions manifested by the Appraisal Contingency provided that the appraiser the buyers lender selects has COMPETENCY to perform an accurate Lake Front Property appraisal and has completed at least 10 appraisals on Lake Sidney Lanier waterfront properties within the past 3 years" Said qualifications of any and all appraisers hired shall be provided to the Listing Agents in writing upon request."

That is awesome! I would suggest SELLERS rights are also protected in the contract, by stating that if the buyer signs an appraisal contingency in the contract, they should also REQUIRE an experienced appraiser in the property be it Lake, Golf Course, even a particular neighborhood. I would also suggest that in the case of a special property like Lakefront that the experience be even greater at least 10% of their work is completion of this type of appraisal over the past 1 year, not 3 years as things have changed over the last year as you well know. Many lenders are requiring that the property appraised by the appraiser is no more than 30 miles from the appraiser's office. I would suggest that you narrow that down and state that the appraiser must live in the SAME COUNTY as the property being appraised.

I can't tell you how many times a lender sends someone from ATLANTA to Lake Lanier to appraise that property and unless they have considerable experience on this lake, which most do not as their primary work is closer to the city of Atlanta (45 miles from Lake Lanier) you have a disaster waiting to happen when it comes to the appraisal!

So you DO have control and you need to start adding this type of language to every sales contract and making sure the BANKS comply because NOW it is in the binding sales contract. Trust me when I tell you that BANKS and especially the Appraisal Management Companies (see my previous post on AMC's) DO not care about competency of the appraiser. They select the one that can do it the quickest and the cheapest and if that happens your DEALS will fall apart on a regular basis.

Please pass this along to every Realtor you know, repost it, blog about it NOW. If you do then you can take control back on this HVCC law when it comes to appraisals on your sales deals.

If you have any questions about this new law, let me know it is just around the corner.

Mary Thompson

www.marytappraisals.com

Active Rain Plea to Feature this post. Too Many Realtors do not know this and need to!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Tue, 31 Mar 2009 18:23:03 -0500

Hello everyone, we are running out of time! Just wanted you to know that the HVCC (home valuation code of conduct) is soon going to be a reality come May 1st, 2009 and you need to take control now in your SALES CONTRACTS. If you have never heard of HVCC...You are in for a RUDE awakening!

PLEASE READ ON....

In a nutshell, when this new FEDERAL law takes effect, Mortgage Brokers, Realtors Buyers and Sellers will have NO control over the appraisal process. None of the above can call an appraiser and get an appraisal done and then bring it to the lender or bank for a loan. Banks must order the report directly from the appraiser or a third party will do the ordering hired by the Banks. These third parties are what we call Appraisal Management Companies (AMC's). The banks are hiring these companies to puts a layer in between the banks and the appraiser for more independence and less lender pressure on the appraisers to "make the value".

Here is where REALTORS, buyer and sellers DO have control. Just the other day I was appraising a Lake Lanier property (our specialty) and I was very HAPPY to see that in the sales contract under the special stips page was the following statement:

So you DO have control and you need to start adding this type of language to every sales contract and make sure the BANKS comply! They have to it is in the sales contract now.

Trust me when I tell you that BANKS and especially the Appraisal Management Companies (see my previous post on AMC's) DO not care about competency of the appraiser. They select the one that can do it the quickest and the cheapest and if that happens your DEALS will fall apart on a regular basis.

Please pass this along to every Realtor you know, repost it, blog about it NOW. If you do then you can take control back on this HVCC law when it comes to appraisals on your sales deals.

If you have any questions about this new law, let me know it is just around the corner.

Mary Thompson

www.marytappraisals.com

Starboard Marina, digging out and getting more water in for boaters and restaurant owners on Lake Lanier

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Sat, 14 Mar 2009 09:56:22 -0500

Lake Lanier as many of you know has been suffering a severe drought, but the good news is we are heading in the right direction and have been for many months. We are just under 13.0 feet below full pool, where last year we were at 20.0 feet below full pool.

We are expected to get 2 inches of rain over the Lake Lanier Basin this weekend, so we may be closer to 11-20 feet below full SUMMER pool. This lake can actually thrive at 10.0 feet below full pool without too much difficulty.

So we went to our local marina in Flowery Branch, GA, Starboard Marina who has suffered the most from this drought. They are located back in a cove and so all the boat docks have been dry for over a year. There is also a nice restaurant there which has suffered greatly as boaters could not get back in there to dock their boats an enjoy some GRUB and drinks.

Well the marina has been doing some major dredging of this cove. They have moved all the docks to one side and are digging a deeper cover to allow the water to fill this marina back up so that boaters can enjoy their marina once again. They are also adding a large parking area to the marina.

Sometimes you just have to make lemon aide out of lemons and Starboard Marina in Flowery Branch, GA is doing this now.

There are some issues with the "mud" that is created from the dredging flowing into nearby coves where people have lake front property so this is a concern that the corps of engineers does not seem to take too seriously from the owners that I have talked to that are affected. All we can hope for is that once they fill the marina with water, this "mud" will wash out of these coves and cleaner water will return.

Mary Thompson-Lake Lanier Appraiser

www.marytappraisals.com

www.customslideshowcreations.com Want to make your Lake Listing (nationwide) really stand out?

Appraisers if you are tired of being paid slave labor by AMC's (appraisal management companies) Read This!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Sat, 14 Mar 2009 09:36:01 -0500

Many of you may have received this in your email in box. I have permission to post this from the author of this letter. I also received the letter he is referring to from RELS and pretty much told them what I thought of their "offer".

If you agree with its contents, then you have until March 18th to contribute to the Call to Action when it comes to AMC's (appraisal management companies). Another thing I would like to add is AMC's do not guarantee appraiser independence from lenders. Why do you think the HVCC was enacted to begin with? A large AMC was pressuring appraisers for values because their clients (The Banks) were pressuring them!

Also are you sick and tired of AMC reviewers (many or most who are NOT appraisers themselves) telling you how to do your work? I sure am. They tell us what comps to use even if they are not comparable and I hope all appraisers tell them in so many words where they can put their reviews!

First thing we should be asking reviewers is this: So how many years have you been an appraiser? The underwriters are also not appraisers, so how do they have the right to tell us our appraisals are unacceptable or the comps we use are not what they are looking for. I am seeing this more and more and all they want is close, recent sales to the subject property and they don't really care if they are comparable or not.

READ ON.......................

Fellow Appraiser:

It may have come to you attention that RELS has began a "phased" appraisal process that begins with a $45 desktop appraisal report

Appraisers on the RELS list are given the "opportunity" to participate in a program intended to save their customers time and money. Appraisers are asked to perform desktop appraisals to be used to evaluate a borrower's equity position.

Please click on the link to view the email from RELS dated March 5, 2009 announcing this program, the RELS required appraisal report and our formal Letter for A Call to Action. https://www.stickelman.com/si/si05.phtml

This program is dangerous on several levels:

1. It is comparable to the "comp checks' our industry has fought so hard to eliminate.

2. It amounts to coercion and other possible ethical issues including determining a predetermined value based upon the outcome of the appraisal. The appraiser is told that if they participate in this program they will have a greater chance of being offered the assignment upon upgrade of the report.

3. Appraisers are enticed into providing discount fee products with the carrot of additional new work and higher appraisal order volumes.

4. The desktop appraisal opens appraisers to increased liability since their analysis and reporting are fully accountable with USPAP and any additional state code.

5. If RELS is so "concerned with what borrowers or clients are paying" for appraisal services and reports, they could reduce their current override of up to 75% over contract appraiser fees (The appraiser is paid a fee of $200 and RELS charges the borrower $350).

6. There is nothing to stop RELS customers from utilizing this summary appraisal report to underwrite a real estate loan.

7. The continued abuse of valuation management is contributing to the slide of residential real estate markets, Wall Street, the US economy and the World Economy from a severe recession into a depression.

8. Banks like Wells Fargo are subject to federal regulation and this type of activity is prohibited under FIRREA, The Interagency Guidelines of 1994, the proposed HVCC and proposed Joint Agency Appraisal Guidelines. In recent years regulators and appraisers have fought this type of behavior that supports appraiser pressure, appraisal value shopping, threats of removal of business, making real estate loans without qualified appraisal reports and values. What is going on here? Who is watching and monitoring this type of reckless activity?

9. Discounted appraisal fees and rushed reporting, especially in this complex and dynamic market, is inadequate to allow the appraiser the ability to provide an accurate and reliable appraisal report and analysis. This type of allowed activity in the past has lead to our financial markets troubles. The appraiser must be provided adequate compensation and time to provide much needed accuracy and reporting. RELS $45, $185, $200 and other low demand fees destroy creditability in appraisals and appraisal analysis. The "client", "bank" or "borrower" can not continue to be allowed to control fees in the analysis, reporting times and adequacy of reporting based upon the Scope of the Appraisal Assignment, the Intended Use of the Appraisal or the Intended User of the Appraisal.

As you are probably aware RELS is jointly owned by Wells Fargo and First America, two companies who stand to profit from these discount appraisals. This country and many banks are facing financial collapse because of the proliferation of toxic mortgages based upon inaccurate appraisal alternative products or fraudulent or flimsy appraisals. The customers, shareholders and public must be made aware of the intent of these companies to water down the valuation process of many properties with declining or at best stagnant values. Wells Fargo Bank (WFC) has lost 73% of shareholder value this year; almost $92 Billion Dollars in 2.5 months or $1.7 Billion Dollars per business day (The price of the common stock on March 5, 2009, the date of the RELS email to appraisers was $8.12 and the price of the stock on January 2, 2009 was $30.00). When is enough, enough? It has been estimated that the World Economy (NBC News reported yesterday, March 9, 2009) had lost in excess of $50 trillion dollars in 2008.

As appraisers it is time to make a stand against this type of bullying by appraisal management companies and banks. It is our responsibility to protect public trust with the highest level of professional expertise. The Real Estate Appraisal profession was founded on the need for accurate asset valuation and is a result of the Great Depression in the 1930's. Our profession was created by the Federal Government to protect the "Public Trust" in real property value. This power and responsibility was not given to Settlement Service Companies, Title Companies or Banks, it was given to us, the real estate appraiser. It might be interesting to note that the Great Depression did not begin because of the Stock Market Crash of 1929, but by the Real Estate Speculation Crash in Florida of 1916-1928.

We ask that you review this e mail documents attached on the web link. You can then endorse and agree by filling out the information that serves as authority for support.

The final recipients of this document will include: President Barak Obama; Treasury Secretary Timothy F. Geithner; Chairman of the Senate Banking Committee, Christopher J. Dodd; Chairman of the House Finanacial Committee, Barney Frank; Comptroller of the Currency, John C. Dugan; Chairman of the Federal Reserve, Ben Bernanke; Chairman of FDIC, Sheila Bair; Fannie Mae and Freddie Mac; The Appraisal Foundation; members of the Appraisal Subcommittee; President of The Appraisal Institute, Jim Amorin; President of the American Society of Appraisers, Ronald M. Seaman; President of The Royal Institute of Chartered Surveyors, Peter Goodacre; General Counsel, Liability Insurance Administrators, Peter Christensen; CEO of Wells Fargo Bank; Attorney Stephen Berman; Attorney General for the State of New York, Andrew Cuomo; Dena Patel; The Associated Press; Reuters; Wall Street Journal; New York Times; Washington post; San Francisco Chronicle and any other interested parties.

You will have the opportunity to support this document until 5.00 pm eastern time, Wednesday March 18th by clicking the link below. The link also provides a copy of the RELS March 2009 email to its appraiser panel, a copy of the required appraisal report under their program and the Call to Action Document which will be sent from this group and its supporters. The Call to Action Document will have included in it all the items you see on the web link. You only need to endorse and support this document once, but can check the number of supporters at anytime.

https://www.stickelman.com/si/si05.phtml

We will also provide you with the opportunity to periodically check the status of signatures buy going to the link which you went to in order to support the document. It will give a running total of supporters.

This e mail is going out to approximately 20,000 appraisers throughout the United States. We ask that you forward this email to all appraisers you know and ask them to review and support this effort and encourage them also to forward this to fellow appraisers who they know. You will receive a copy of who receives these documents. It is important that you provide all the information in the sign up request so that it complies with the security requirements we will outline to the receivers and for us to communicate back to you. The information requested on the support sign up is necessary for validation and security protocol and will not be given or sold to anyone for any purpose. This effort is being organized by a small group of fellow licensed and certified appraisers from Ohio and Kentucky who have contributed their time and cost for the good of our profession. This is truly a grassroots effort from fellow appraisers.

At this time it is critical that our voice is heard and we thank you for your interest and support. To Review and Support this effort Click https://www.stickelman.com/si/si05.phtml.

Sincerely,
Ron Stickelman, Jr.
ron@saigroupllc.com
937-873-9900

So sign up and make your voice heard if you agree! If not disregard this post.

Mary Thompson

www.marytappraisals.com

My letter to President Obama about the HVCC and use of BPO's to value property.

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Sat, 07 Mar 2009 10:00:38 -0600

3/7/09

Dear Mr. President:

I hope this is one of the 10-20 letters that reaches your desk today because there is a large segment of professional, experienced workers who are being put out of business by the new stimulus package and the HVCC (home valuation code of conduct). I know you want to create jobs but it is doing just the opposite in this case.

The group of professional workers is the Real Estate Appraisers. Here is the real deal Mr. President. With the re-modification of loans; the lenders will need to know the current value of the homes in question. Many lenders and Fannie Mae are using BPO's (broker's price opinions) to accomplish this task. This will only add salt to the open, gaping wound of the housing market.

This is also against the law in at least 23 states. Why? Because Realtors and Brokers are not licensed to perform valuation of properties. If BPO's are used they will be violating state laws and FIRREA. They are acting as non-licensed appraisers in the valuation of property. BPO's are only legal when they are used to determine the LIST price of the home...period. Also you should know, BPO's are not regulated by anyone. Appraisers are regulated.

As a real estate appraiser who was also a real estate agent here in Georgia, I can tell you first hand that Realtors do not understand the valuation process. Sure they list and sell homes, but do you realize how many over priced listings are out there? Realtors also do not know how to apply adjustments to various amenities or lack thereof. I get questions from Realtors all the time asking what a basement is worth, a pool, garage or a 4 bedroom home vs. a 3 bedroom home, etc.

PLEASE, PLEASE pay attention to my plea. I assure you I am NOT alone in this feeling. I understand banks are losing money right and left and they want to find an inexpensive way to determine values on these re-modified loans. However, if you allow Realtors and Brokers to value property (who may also have a vested interest in these properties if they wind up listing them down the road) this will only cause more loss and further decline in the market. Now more than ever we need to hit a bulls-eye on property values not take a stab in the dark at them.

You may be thinking, hey the appraisers are the ones who got us into this mess to begin with. The low percentage of BAD apples has ruined it for the majority of us hardworking, honest and highly capable appraisers. Trust me when I tell you it is not the appraisers, it is the BANKS and the REALTORS who are commissioned professionals who have always put pressure on the appraisers to hit a number so to speak.

Everyone wants to blame the appraisers. We are only to blame if we succumbed to their constant pressure and we knowingly over-valued properties. But you need to know that banks made it quite clear that appraisers would not have a job if they did not do what they told them to do. I know because I lost work when I refused to give them carte blanche on dictating to me what the appraised value should be on a home! Banks never got their hands slapped for this activity, it was always the appraisers. Banks should never have had this kind of POWER over appraisers. But they did because all they cared about was the commission check at closing. They see appraisers as those who impede their path to the closing table. We are a necessary evil. When in reality we are supposed to be there to PROTECT the banks from bad risks!

If appraisers (who are highly trained to value property) were left alone to do their jobs, there is absolutely NO reason not do our jobs with the utmost accuracy. They have no vested interest in the properties in question and if they do, they must fully disclose this fact. Most banks would not allow us to appraise properties in which we have a vested interest.

Mr. President, you may be thinking the HVCC should take care of this problem of lender pressure on the appraisers. There will be independence and transparency between the appraiser and the client. Well I wish that were true, but there is one BIG problem. Banks are now starting to go to what we call AMC's Appraisal Management Companies to order appraisals. They are heading there in mass numbers even though it is not required for them to do so. They want to remove that lender pressure aspect and be in total compliance with HVCC.

Appraisers love the idea of no pressure but the devil is in the details as they say. First, in many states it is illegal for AMC's to order appraisal reports because FIRREA and state laws prohibit 3rd parties from ordering the reports. It must be ordered by the CLIENT, which would be the banks/lenders, not the AMC's.

Secondly, many appraisers are losing their livelihood as the long term relationships we have built with both Mortgage Companies and Banks are now going to be destroyed as the business will be funneled thru the AMC's who only use appraisers who do them for the cheapest fee. The AMC's shop appraiser's fees and they make no bones about telling you that you will not get work if your fees are not in line with what THEY want. They are dictating fees and I know this first hand, Mr. President.

Guess what? The AMC's are regulated by guess who? NO ONE. They have ZERO regulatory oversight, so they can do what they want. It was an AMC that forced Cuomo to negotiate a settlement with Fannie and Freddie to begin with. They were pushing for higher values and removing appraisers who would not cooperate in this regard. So even though it looks like Banks are doing the right thing by using AMC's, you need to take a deeper look.

AMC's pay cut rate fees to appraisers. Typical fees for a standard single family residential appraisal is anywhere from $300.00 to $400.00 per report. AMC's pay appraisers anywhere from a low of $175.00 to a high of $250.00. Most are in the low $200.00 range. They want the appraisals fast and cheap with no regard to competency of the appraiser. Let me repeat that... with NO regard to competency of the appraiser.

AMC's in turn charge banks MORE than we would for an appraisal report, so guess who wins, they do and everyone else loses. Most of the experienced, well qualified appraisers, including yours truly refuse to work for these slave labor fees. What the banks will wind up with are the least experienced appraisers who will be completing these appraisals as they will take whatever fees they can get and that is NOT what you want in this volatile market. You need the most experienced appraisers to determine values and understand declining markets, absorption rates, days on market, costs to cure, etc.

So I ask you Mr. President, please do not let lenders use BPO's to value properties, do not allow AMC's to order appraisals in the states where it is illegal and finally if AMC's are to be used, they MUST pay normal fees for our appraisal reports.

The old adage is very true.....you get what you pay for. AMC's are always complaining about appraiser's work and the errors they make...WHY? Because they are dealing with inexperienced appraisers.

Thank you for your time, Mr. President, feel free to contact me with any questions. I am very active in the appraisal industry. I blog frequently on Active Rain a well know Real Estate Based website. www.activerain.com/blogs/lakelanierappraiser I even wrote a blog about what the White House would appraise for. That one sparked a lot of commentary. I am also the North GA Examiner for the well known site. www.examiner.com

Respectfully,

Mary T. Thompson Certified Appraiser - 770-967-0753

www.marytappraisals.com

cc: Honorable Timothy Geithner - Secretary or the Treasury

Honorable Chris Dodd, Chairman, Senate Committee on Banking, Housing and Urban Affairs
Honorable Richard Shelby, Ranking Republican, Senate Committee on Banking, Housing, etc
Honorable Barney Frank, Chairman, House Committee on Financial Services
Honorable Spencer Bachus, Ranking Republican, House Committee on Financial Services
Honorable James Lockhart III, Director, Federal Housing Finance Agency

Realtors if you are conducing BPO's for lenders you may be breaking the LAW!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Fri, 06 Mar 2009 09:11:48 -0600

This is very important and I hope many eyeballs see this one! I attended the Georgia Appraisers Coalition meeting in Atlanta yesterday, which included speakers: Casey Cagle -Lt. Governor, Secretary of State Karen Handel, Jeff Ledford - Commissioner of the GA Real Estate Appraisers Board, Majority Whip - Mitch Seabaugh, A Senior HUD official, Leaders of the Appraisal Institute, Georgia Coalition Lobbyists and other Georgia Legislators.

Here is the deal: The Obama stimulus package includes loan re modifications across this country if you are "under water" meaning your mortgage is higher than your home is worth. Lenders, Fannie and Freddie are planning to and already do use Brokers Price Opinions (BPO's) to determine value for the homes in question or those that will qualify for this program.

In the state of Georgia as well as about 23 other states per the Legislators that were speaking at our meeting yesterday, this activity is against the law. WHY? Because Realtors and Brokers are acting as appraisers in the valuation of the property in question. In other words they are engaging in unlicensed practice of appraising. This practice is also in violation of FIRREA (Financial Institutions Reform Recovery and Enforcement Act of 1989). Appraisers cannot list and sell homes without a Realtors license, so Realtors should not be allowed to value property without an Appraiser's license.

BPO's by law are only legal when they are used to determine a list price on a property....PERIOD. So check your states laws on this as you may be breaking the law!

Also of note in the State of Georgia and likely many other states it is against the law and in violation of FIRREA for Appraisal Management Companies (AMC's) to order appraisals from appraisers as they are NOT the CLIENT. Appraisal orders should be coming directly from the client or in this case THE BANKS!

I urge every Lender and Realtor to check the laws in your state to see if you are in compliance with FIRREA and state laws regarding BPO's.

I urge every Appraiser to contact your local appraiser boards to find out if AMC's (appraisal management companies) doing business in your state are allowed to send you orders. I don't know about you, but AMC's are a lose/lose for everyone. They cut our fees in half, they use those appraisers who will do it the fastest and the cheapest without regard to expertise and they charge the LENDERS more than what we charge them for the typical appraisal report!

Another thing everyone should know is the AMC's have ZERO regulatory oversight. In a nutshell they can do what they want with no legal repercussions. Same thing with BPO's they do not have any regulations like we do (USPAP) to ensure that they are producing credible information and if the banks are allowed to accept BPO's as valuations for home, this is a major source of concern for everyone!

Realtors are pros at listing and selling properties and providing an idea as to what the home will sell for but they are not trained to value homes for banks, Fannie, Freddie or HUD. They are not trained to know what adjustments should be made for the numerous amenities a property may have. I get asked all the time from Realtors what adjustments I make for basements, pools, garages, etc. etc.

One other very important point: If Realtors are conducting BPO's for lenders for a potential listing of the home, they now have a VESTED interest in that home, therefore this makes for an unbiased opinion of its worth. As appraisers we are not allowed to appraise property that we have an interest in unless we fully disclose our interest and quite frankly I would reject this assignment and most banks would reject appraisers doing appraisals on properties in which they have an interest.

Many issues here and with the horrible state of affairs that we are facing in the housing market, now more than ever we need proper valuations of these homes so that they can be sold or re modified.

As I stated in my last featured post, about foreclosures and the appraisal process, if we are left to do the jobs for which we are trained, we will provide accurate valuation services for Banks or anyone else. There is no reason not to!

We cannot afford to put ourselves in further hot water here, we must follow the laws and utilize those people that are best suited for the job at hand....Appraisers.

I ask everyone here to write to your commissioners and advise that Lenders need NOT take the easiest and cheapest way out here when it comes to the loan re-modification process or foreclosures or we will suffer further loss. Lenders are losing big bucks and they want to save money, but using people who are not trained to provide opinions of value is salt in the wound and promotes further risk and losses to these lending institutions. I DO hope you agree!

Realtors: Do you even like doing these BPO's? What I hear from our local Realtors is they hate them, the lenders want them yesterday and they want them CHEAP for all the work you do on them. You are in business to SELL real estate, not do desk top evaluations/ BPO's all day for lenders.

Let's put this valuation where it belongs...with the Appraisers.

Please re post and pass this along to as many people as you can! I am contacting TV stations, local government officials and I intend to write a letter to Obama himself. His stimulus package is supposed to create jobs and in effect he is putting many appraisers out of business!! I know Realtors are suffering big time too, but PLEASE make sure you are not violating the law in order to put some money in your pocket and creating further issues down the road.

Thank you for your efforts and past support of my posts here on AR.

Mary Thompson

www.marytappraisals.com

The real skinny on why Appraisers use foreclosures to value your home!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Tue, 03 Mar 2009 14:20:23 -0600

Okay first let me BUST a MYTH out there. The administration is telling people that even though YOU are not going to get bailed out while your neighbor who is going through foreclosure is, you should be happy because YOUR home will not suffer further loss in value if we can get these foreclosures sold and no longer sitting vacant, etc.

While there is truth to this it sure does not make those of us who have been working hard to keep our mortgage payments current feel a whole lot better. Many will start falling behind on their payments just to get bailout help...sad but true.

But here is the real deal on how appraisers are dealing with the valuation of your home in this foreclosure crisis. We DO NOT typically use foreclosed sales to compare against your home. We first evaluate your individual neighborhoods, streets, subdivisions and trust me when I tell you it can vary street by street in today's market.

If and only IF your subdivision, street or neighborhood is full of foreclosures, more so than your typical arms-length transactions, then we WILL using foreclosures as our primary source for analysis. WHY? because these sales have now defined your neighborhood. If there are more sales in your area which are not foreclosures then we will use those sales primarily.

Therefore your home may NOT necessarily decline in value due to a few scattered foreclosures in your area. Now here is where it gets a little muddy in the water....If you have a home right next to yours or a couple of doors down that has been foreclosed upon and especially if it looks "run down" and obviously vacant, this WILL have an effect on the value of your home to some degree regardless of the number of foreclosures in your area. WHY? because if you were looking to buy a home and the one next door to yours is quite frankly and eye sore, this has an impact on how the market perceives your home. Sad and not fair but true!

The foreclosures in your area or on your street and their proximity to yours has an effect from that point outward as if in a circle. The further the foreclosure/s are from your home, the better off you are!

Again, let me repeat, if you only have a few foreclosures scattered about your development, street (unless you only have a few homes on your street) or defined neighborhood, chances are you are not going to be heavily impacted as appraisers will use non-foreclosure sales whenever it is reasonable to do so and is not misleading to the lender to do so.

One thing I want to make clear! Appraisers do not determine the value of your home...Let me repeat this. Appraisers DO NOT determine the value of your home.....The MARKET DOES! We analyze the market and as long as we do this correctly and as long as we utilize properties that are truly comparable to yours and make the appropriate adjustments for any variances, then the market LEADS us to the appropriate opinion of value....So don't blame the appraiser for the value of your home okay? It is the market you need to blame.

One final note. Appraisers are supposed to protect banks from lending risks. Banks need appraisers to analyze NOW more than ever what the market is doing, what the value of the property is currently, what the trends have been and where they are likely headed.

Banks & Mortgage Companies in the past did not really care too much about the fact that we were trying to protect their interests as they wanted to close loans. Sad fact but true and that is why we are in this mess Today. Appraisers many times are considered a necessary evil and Lenders pressured many Appraisers to do what they wanted. Unfortunately many succumbed to that pressure.

Banks are now going the opposite direction and running scared. They are dictating to appraisers what the comparable properties should be. They are non believers in what our reports are telling them. Before they wanted the highest possible value, now they want the lowest. They are telling us based upon some National Report that we MUST report our area as declining! Well here in Georgia there are some area that are NOT declining but STABLE. I personally do not let lenders dictate to me and I know for a fact I have lost business over this...but I digress...

Bottom line is they are still not letting us do our jobs! We have no vested interest in these properties, if they had let us do our jobs from the start, we would not be looking at a Trillion Dollar plus spending bill. Can you tell I am just a little frustrated. I AM!

So as a consumer what can you take aways from all of this. Keep up with what is going on in your neighborhood and do not let lenders determine the value of your home. You get a copy of your appraisal report, review it carefully. If you do not agree with it, protest it! Many banks use review appraisers who either have not even seen your home or who have only driven by your home to refute the original appraisal report. Don't let that happen to you because these review appraisers do not know the home like the first appraiser!

As Realtors, you can do the same thing. You have access to the same information we as appraisers do and even more than we do as you guys see many of the INTERIORS of the comparable properties used by appraisers which we do not see. Sure we have photos of the interiors if you post them on MLS/FMLS but the pictures do not always tell the whole story! So help your clients in this lending process by not letting them reduce or change the value of the first appraisal report without good reason.

Okay I am off my soapbox now, I hope this has helped you to understand how appraisers operate in this market or at any time.

Any questions, just ask!

Mary Thompson-Certified Real Estate Appraiser

www.marytappraisals.com

www.customslideshowcreations.com Custom shows for your next listing!

Stimulus Watch by State, see how your money is being spent in your own State.

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Fri, 27 Feb 2009 14:02:57 -0600

This site has some very interesting information a bout the stimulus package.

http://www.stimuluswatch.org/project/by_state

You can find projects by state or territory: California, Florida and Texas Lead the Way for number of projects.

You click on your state and up come all the projects the mayor of each state submitted in the 2008 U.S. Conference of Mayors report. Not all the cities under each state show "shovel ready" projects but this does not mean that your city is excluded. Your city officials can and will likely apply for funds for their various projects.

Be sure to check out the FAQ's on this site to get the answers to questions you will likely have. Knowledge is power so here is a bunch of knowledge for you!

Enjoy the read! Some projects as expected seem pretty crazy but you have the power to vote on projects and make comments as well. So dive on in and see if you can make a difference for your city or county.

Alaska (46 projects)
Alabama (318 projects)
Arkansas (199 projects)
Arizona (743 projects)
California (1971 projects)
Colorado (201 projects)
Connecticut (449 projects)
Washington, D.C. (8 projects)
Delaware (7 projects)
Florida (1752 projects)
Georgia (266 projects)
Hawaii (316 projects)
Iowa (51 projects)
Idaho (348 projects)
Illinois (1031 projects)
Indiana (713 projects)
Kansas (139 projects)
Kentucky (524 projects)
Louisiana (433 projects)
Massachusetts (266 projects)
Maryland (54 projects)
Maine (72 projects)
Michigan (782 projects)
Minnesota (335 projects)
Missouri (403 projects)
Mississippi (552 projects)
Montana (57 projects)
North Carolina (319 projects)
North Dakota (61 projects)
Nebraska (154 projects)
New Jersey (261 projects)
New Mexico (215 projects)
Nevada (163 projects)
New York (289 projects)
Ohio (847 projects)
Oklahoma (223 projects)
Oregon (159 projects)
Pennsylvania (352 projects)
Puerto Rico (340 projects)
Rhode Island (116 projects)
South Carolina (271 projects)
South Dakota (30 projects)
Tennessee (103 projects)
Texas (1240 projects)
Utah (298 projects)
Virginia (400 projects)
Vermont (61 projects)
Washington (368 projects)
Wisconsin (358 projects)
West Virginia (1 projects)
Wyoming (85 projects)

Mary Thompson

www.marytappraisals.com Real Estate Appraiser

www.customslideshowcreations.com Custom Slide Shows for your Listings or Website

The Oscars are on Sunday, So who really Cares? Let's boycott the Oscars!

Mary Thompson Lake Lanier Appraiser in Georgia (LakeFrontPros.com) — Sat, 21 Feb 2009 12:54:48 -0600

I know this may spark controversy, but I for one am tired of hearing about the Oscars and Hollywood. I have for a long time. Why? Because these people have no clue about recession and hard times.

Below is a link to a very interesting video about Hollywood, worth watching: Horror of all horrors, actors are having to take pay cuts or no salary increases for 2009. So instead of making 10 or 20 million a show, they may have to cut back a few million or even down to $250,000 a movie. How tragic ...I'll take $250,000 any day of the week! How about you?

Hollywood is feeling the recession pinch! Video by Nightline about how the economy is affecting Hollywood unlike the Depression era when people went to movies to escape the hard times.

Hollywood stars are quick to talk about the economy and politics and how things should be done. Give me a break! They own real estate valued in the millions and some have several homes valued in the millions. Even if their palatial estates are taking a tumble in value, no problem they do another movie or show and bingo several more million in their bank accounts.

So for those of you who want to make a statement to these hollywood stars.....DO NOT watch the Oscars Sunday. We can control their huge salaires. Spend time with your family Sunday Night and all those you love and forget about those who have NO clue about your hardship and real estate market decline.

It is about time hollywood comes down a few notches and feels some of our pain!