Industry Snapshot - Plus Fannie's New Form, Feds Comment on AVMs
Editor's Note: Today, find a
snapshot of the state of the industry according to the experts- FHA, VA,
HVCC, AVMs, the market and more - taken at a recent professional gathering
of appraisers. Also find important
recent news from Fannie Mae and the Feds.
Industry Snapshot - Plus Fannie's New Form, Feds Comment on AVMs
By David Brauner, WRE Editor
A trip to a recent industry gathering, Valuation 2008, offers the
following:
The Market: One veteran says that in
37 years of appraising this is the toughest market he's ever seen and next year
could be worse. Several others, also appraising over 30 plus years of real
estate cycles, agree. So, if you can make in these conditions, you can make it.
Professional Advice: In addition to
learning how to analyze data in the context of your local market- rather than
just reporting a number (more about this below), the advice we keep hearing is
to appraise conservatively. Everyone is "walking on eggshells" now and there is
zero tolerance for sloppy or misleading reports. Lenders want the truth.
VA Appraising: Gerald Kifer, Supervisory
Appraiser for the Department of Veterans Affairs Central Office, Washington, DC
reports that VA appraisal work is booming- up 92 percent since January 2008.
There are approximately 5,000 appraisers on the panel currently. Kifer indicates
that while there are no plans to open the panel nationally, there are individual
needs in pockets all across the country. He urges appraisers who want to do VA
work to check with their local office and fill out an application even if there
is no immediate need, as applications are kept on file and reviewed as needed.
Side note: when WRE asked a San Diego appraiser how he was getting by recently,
the reply was "just barely," living on savings and FHA and VA work. This
appraiser, in the profession over 30 years, said he was advised early in his
career to get on the VA panel and it has been one of the best professional
decisions he's made. Appraisal applicants can find information on qualifications
and an online application to be a VA appraiser at
www.Homeloans.va.gov/cav.htm.
FHA:
According to Donna Tomposki, Director of the Home Valuation Policy Division
within FHA's Office of Single Family Program Development, FHA business is
booming. There currently are about 58,000 FHA appraisers on the Roster. Tomposki
tells WRE that the question of licensed appraiser eligibility should be answered
shortly via a mortgagee letter sometime in December, which will specifically
state the date by which all FHA appraisers must be state certified. You may
recall that HR. 3221, The Housing and Economic Recovery Act of 2008,
raised the FHA licensing level requirement to "Certified." As of October 1, 2008
new applicants must be Certified. For now, the approximately 15,000 appraisers
on the Roster who are at the lower "Licensed" level can keep working but no one
knows for how long. HR. 3221 is law, which makes changing any part of it very
difficult.
Tomposki says for email notification of mortgagee letters and other announcements, appraisers can sign up to the single family housing listserv at www.hud.gov/offices/hsg/sfh/ref/hsgregst.cfm. The appraiser webpage www.hud.gov/groups/appraisers.cfm also provides information. Mortgagee letters are shown in the resources box on the right. Appraisers and lenders are encouraged to bookmark this page as it contains many links to important information including appraisal policy. Also, all mortgagee letters are posted at www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm (scroll down to see 2008 letters).
Tomposki suggests doing as much as possible online,
including applying for and renewing as an FHA appraiser and suggests getting on
the email list for updates (www.hud.gov/groups/appraisers.cfm).
(If you have E&O insurance through OREP and have not
registered yet for your free access, email for details
subscription@workingre.com.)