CoreLogic reported that the residential shadow inventory as of January has declined to 1.8 million units. This represents a nine-month supply that can only slightly be treated via modification and short sales.
The number was calculated by including the number of distressed properties not listed on MLS that are seriously delinquent, in foreclosure, or REOs. Transition rates are used to determine which are most likely to become REO properties, and those that are not yet delinquent, though they may be soon, are not included in this estimate.
Of the 1.8 million that are currently shadow inventory, 870,000 are seriously delinquent, 445,000 are in foreclosure, and 470,000 are in REO. There are also around 2 million negative equity loans that are likely to become shadow supply in the near future. New Jersey, Illinois, and Maryland have the highest level of distressed months’ supply, and North Dakota, Alaska, and Wyoming have the lowest.
Source:
http://www.livevalmag.com/articles/383-nine-months-of-shadow-inventory-linger
Thursday, March 31, 2011
Appraisal Topic Instructors Wanted - ACOW at the Summit
Appraiser CE Instructors:
ACOW is looking for several CE instructors and topics for the Aug. 2011 ACOW at the Summit.
Contact Dave Towne at 360-708-1196 or dtowne at fidalgo dot net
ACOW is looking for several CE instructors and topics for the Aug. 2011 ACOW at the Summit.
Contact Dave Towne at 360-708-1196 or dtowne at fidalgo dot net
Monday, March 21, 2011
Your opinion still matters
When Attorney D. Charles Mauritz’ (Duffy Kekel LLP) spoke in BVR’s conference room last Friday at NACVA’s local chapter meeting, he placed a heavy emphasis on the most valuable contribution a valuation expert brings to the table—an opinion. Mauritz reiterated the all-to-familiar phrase that valuation is “more art than science,” and that it’s the appraisers who produce reports that are more science than art who worry him.
While it is important to present the data in a report, it’s how you interpret the data that truly matters. As your report flows from introduction to conclusion, clearly state your opinion about why your determinations and processes are relevant. In essence, a valuation report should leave the reader with no “whys”—Why did the expert choose these comparable transactions and not others? Why did the expert weight the income approach higher than the market approach? Why did the expert arrive at 6% for a company specific risk premium? A valuation report should provide answers and an expert’s opinion, not leave the reader with questions. “That’s what we [attorneys] are paying you for,” says Mauritz.
From BVWire Issue #99-2, 8 December 2010
While it is important to present the data in a report, it’s how you interpret the data that truly matters. As your report flows from introduction to conclusion, clearly state your opinion about why your determinations and processes are relevant. In essence, a valuation report should leave the reader with no “whys”—Why did the expert choose these comparable transactions and not others? Why did the expert weight the income approach higher than the market approach? Why did the expert arrive at 6% for a company specific risk premium? A valuation report should provide answers and an expert’s opinion, not leave the reader with questions. “That’s what we [attorneys] are paying you for,” says Mauritz.
From BVWire Issue #99-2, 8 December 2010
Friday, March 18, 2011
CE Seminar in Spokane to Support ACOW
CE Seminar in Spokane to Support the Appraisers’ Coalition of Washington
Loss Prevention Program for Real Estate Appraisers
April 30, 2011, 8:30 a.m. to 12:30 p.m.
Red Lion Hotel at the Park, 303 West North River Drive, Spokane, WA
Free for appraisers who (1) join ACOW after February 25, 2011 or, if already an ACOW member, make a $20 donation, and (2) register with READI
Approved for 4 Hours CE Credit in WA (#AP544), ID and OR
To support the Appraisers’ Coalition of Washington and its membership, LIA Administrators & Insurance Services (LIA) and its Real Estate Advisors Defense Institute (READI) are presenting their 4-hour live CE seminar entitled "Loss Prevention Program for Real Estate Appraisers” in Spokane, Washington on April 30. 2011.
The CE seminar is being given as a membership drive/fundraiser for ACOW. The seminar is free to all appraisers who:
1. Join ACOW on or after February 25, 2011 or, if already a member, make a donation to ACOW of $20 or more at the seminar; and also
2. Register for free membership in READI at www.readimember.org. READI is a loss prevention resource for appraisers whose mission is to work against unfair appraiser liability and to support appraisers’ professional organizations. (Appraisers can use code 201700 to register for READI. If they are insured by LIA, appraisers should use code 201500.)
The presenter of the CE seminar is Peter Christensen, LIA’s general counsel. The seminar addresses legal claims and issues affecting residential and commercial real estate appraisers. The information is based on actual claims and lawsuits filed against appraisers, including specific cases in Washington. The purpose of the seminar is to educate appraisers about how to reduce their liability risks. It is the same course that LIA gives to Appraisal Institute and NAIFA chapters and that LIA will give at the Appraisal Institute’s Annual Meeting this year.
Please register for the class by email to class@readimember.org – and, as applicable, indicate if you either joined ACOW after February 25, 2011 or, if already a member, intend to donate $20 or more at the seminar. If you do not wish to join ACOW or make a $20 donation to ACOW and register with READI, the cost of the seminar is $50 (which LIA will donate to ACOW). Space is limited. If you reserve a space, please be sure to attend.
LIA Administrators & Insurance Services is the registered provider of the seminar in each state. It is approved for 4 hours of CE in the following states: AL, AZ, CA, FL, HI, ID, MA, MN, MS, NC, NH, NV, OK, OR, PA, SD, TN, TX, UT, VA, VT, WA and WI.
.
Loss Prevention Program for Real Estate Appraisers
April 30, 2011, 8:30 a.m. to 12:30 p.m.
Red Lion Hotel at the Park, 303 West North River Drive, Spokane, WA
Free for appraisers who (1) join ACOW after February 25, 2011 or, if already an ACOW member, make a $20 donation, and (2) register with READI
Approved for 4 Hours CE Credit in WA (#AP544), ID and OR
To support the Appraisers’ Coalition of Washington and its membership, LIA Administrators & Insurance Services (LIA) and its Real Estate Advisors Defense Institute (READI) are presenting their 4-hour live CE seminar entitled "Loss Prevention Program for Real Estate Appraisers” in Spokane, Washington on April 30. 2011.
The CE seminar is being given as a membership drive/fundraiser for ACOW. The seminar is free to all appraisers who:
1. Join ACOW on or after February 25, 2011 or, if already a member, make a donation to ACOW of $20 or more at the seminar; and also
2. Register for free membership in READI at www.readimember.org. READI is a loss prevention resource for appraisers whose mission is to work against unfair appraiser liability and to support appraisers’ professional organizations. (Appraisers can use code 201700 to register for READI. If they are insured by LIA, appraisers should use code 201500.)
The presenter of the CE seminar is Peter Christensen, LIA’s general counsel. The seminar addresses legal claims and issues affecting residential and commercial real estate appraisers. The information is based on actual claims and lawsuits filed against appraisers, including specific cases in Washington. The purpose of the seminar is to educate appraisers about how to reduce their liability risks. It is the same course that LIA gives to Appraisal Institute and NAIFA chapters and that LIA will give at the Appraisal Institute’s Annual Meeting this year.
Please register for the class by email to class@readimember.org – and, as applicable, indicate if you either joined ACOW after February 25, 2011 or, if already a member, intend to donate $20 or more at the seminar. If you do not wish to join ACOW or make a $20 donation to ACOW and register with READI, the cost of the seminar is $50 (which LIA will donate to ACOW). Space is limited. If you reserve a space, please be sure to attend.
LIA Administrators & Insurance Services is the registered provider of the seminar in each state. It is approved for 4 hours of CE in the following states: AL, AZ, CA, FL, HI, ID, MA, MN, MS, NC, NH, NV, OK, OR, PA, SD, TN, TX, UT, VA, VT, WA and WI.
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Sunday, March 6, 2011
Harold Huggins Realty, et al vs. FNC, Inc. - Going to trial
.
"In Harold H. Huggins Realty, Inc., P.E. Turner & Company, LTD., Residential Appraisal and Consulting, Inc. and Alfonoso V. Torres doing business as Front Door Appraisals vs. FNC, Inc., a trio of appraisers filed a federal class action lawsuit against the technology firm seeking damages for negligent misrepresentation, misappropriation, breach of implied contract and other charges."
"As with any complex litigation, particularly a class action suit, the clock and calendar have gone around several times while parties make and argue motions, and the defendant seeks to have the action dismissed. The latest action was the plaintiff's appeal of the district court's order granting the defendant's (FNC, Inc.) motion to dismiss the case under Federal rule of Civil Procedure 12 (b)(6). (NOTE: I will not even pretend to know what that means.)"
"February 24, the Court of Appeals rendered their decision in favor of the plaintiffs. The Appeals Court reversed the decision to dismiss and remanded the case back for further proceedings."
Source: Frank Gregoire blog, "Appraiser Active"
Click here to read the full info
As a reminder, this is the complaint against FNC, Inc. and their AppraisalPort "service."
A lower court ruled against the litigants, but the 5th Circuit reversed that decision on Feb. 24, 2011. The appraisers are now allowed to continue their legal action. The defendants can appeal to the US Supreme Court, but there is no guarantee that the appeal would be heard. The Conclusion of the Court Decision contains this information:
“The plaintiffs [the appraisers] in this case have prudential standing primarily because of the zero-sum competitive relationship that exists between them and FNC in the field of real-estate-valuation services.
Lenders who use the National Collateral Database would otherwise use the plaintiffs’ appraisal services, FNC was able to create the National Collateral Database only because it stole the plaintiffs’ work product, and FNC’s taking of the plaintiffs’ work product was made possible by the false advertisements FNC ran touting the confidentiality of AppraisalPort.
But for the false advertisements FNC targeted at the plaintiffs, the National Collateral Database would not have been able to compete effectively with the plaintiffs’ appraisals.”
.
"In Harold H. Huggins Realty, Inc., P.E. Turner & Company, LTD., Residential Appraisal and Consulting, Inc. and Alfonoso V. Torres doing business as Front Door Appraisals vs. FNC, Inc., a trio of appraisers filed a federal class action lawsuit against the technology firm seeking damages for negligent misrepresentation, misappropriation, breach of implied contract and other charges."
"As with any complex litigation, particularly a class action suit, the clock and calendar have gone around several times while parties make and argue motions, and the defendant seeks to have the action dismissed. The latest action was the plaintiff's appeal of the district court's order granting the defendant's (FNC, Inc.) motion to dismiss the case under Federal rule of Civil Procedure 12 (b)(6). (NOTE: I will not even pretend to know what that means.)"
"February 24, the Court of Appeals rendered their decision in favor of the plaintiffs. The Appeals Court reversed the decision to dismiss and remanded the case back for further proceedings."
Source: Frank Gregoire blog, "Appraiser Active"
Click here to read the full info
As a reminder, this is the complaint against FNC, Inc. and their AppraisalPort "service."
A lower court ruled against the litigants, but the 5th Circuit reversed that decision on Feb. 24, 2011. The appraisers are now allowed to continue their legal action. The defendants can appeal to the US Supreme Court, but there is no guarantee that the appeal would be heard. The Conclusion of the Court Decision contains this information:
“The plaintiffs [the appraisers] in this case have prudential standing primarily because of the zero-sum competitive relationship that exists between them and FNC in the field of real-estate-valuation services.
Lenders who use the National Collateral Database would otherwise use the plaintiffs’ appraisal services, FNC was able to create the National Collateral Database only because it stole the plaintiffs’ work product, and FNC’s taking of the plaintiffs’ work product was made possible by the false advertisements FNC ran touting the confidentiality of AppraisalPort.
But for the false advertisements FNC targeted at the plaintiffs, the National Collateral Database would not have been able to compete effectively with the plaintiffs’ appraisals.”
.
FDIC 4Q10 State Profiles
The Fourth Quarter 2010 FDIC State Profiles are now available on-line. The FDIC State Profiles are formatted as a quarterly data sheet summation of economic and banking conditions for all fifty states, Puerto Rico, and the Virgin Islands . They are available in PDF format.
http://www.fdic.gov/bank/analytical/stateprofile/index.html
http://www.fdic.gov/bank/analytical/stateprofile/index.html
Thursday, March 3, 2011
Is Scope Creep Eating Your Profits?
Excerpted from: Appraisal Buzz
Author: Steve Papin
"Second only to fee erosion, “scope creep” is the current scourge of the appraisal industry. Over recent years report content has expanded. Appraisers are ready, willing, and able to write longer and stronger reports, but compensation has not kept up with increased report writing time.
Scope creep is additional assignment conditions requested by a client not considered, or believed necessary by the appraiser when determining the scope of work sufficient to produce a credible appraisal report. Thus, these assignment conditions are not considered by the appraiser when he or she is engaged and negotiates the appraisal fee.
The expanded appraisal report can be broken down into the good, the bad, and the ugly."
The rest is here.
Steve Papin has been a residential appraiser in Cincinnati, Ohio since 1976. Steve is the 2011 Vice President of the Ohio Coalition of Appraisal Professionals and is a founding member and manager of the Appraisal Group of Cincinnati (a casual trade group.) Contact Steve@PapinAppraisal.com.
Author: Steve Papin
"Second only to fee erosion, “scope creep” is the current scourge of the appraisal industry. Over recent years report content has expanded. Appraisers are ready, willing, and able to write longer and stronger reports, but compensation has not kept up with increased report writing time.
Scope creep is additional assignment conditions requested by a client not considered, or believed necessary by the appraiser when determining the scope of work sufficient to produce a credible appraisal report. Thus, these assignment conditions are not considered by the appraiser when he or she is engaged and negotiates the appraisal fee.
The expanded appraisal report can be broken down into the good, the bad, and the ugly."
The rest is here.
Steve Papin has been a residential appraiser in Cincinnati, Ohio since 1976. Steve is the 2011 Vice President of the Ohio Coalition of Appraisal Professionals and is a founding member and manager of the Appraisal Group of Cincinnati (a casual trade group.) Contact Steve@PapinAppraisal.com.
Tuesday, March 1, 2011
Mortgage Market Faces New Wave of Regulation
From "The Collateral Vision:"
"Again, the Interagency Appraisal and Evaluation Guidelines are effective right now. Again, as with any regulation, you need to read it for yourself and make your own decisions about how you and your organization will comply. Click here for a copy of the Interagency Appraisal and Evaluation Guidelines.
As always, FNC tries to help keep everyone informed on every change in the regulatory tide, so if you missed our web conferences on these topics, you can get more information at the following links:
Dodd-Frank Wall Street Reform and Consumer Protection Act
Interagency Appraisal and Evaluation Guidelines
.
"Again, the Interagency Appraisal and Evaluation Guidelines are effective right now. Again, as with any regulation, you need to read it for yourself and make your own decisions about how you and your organization will comply. Click here for a copy of the Interagency Appraisal and Evaluation Guidelines.
As always, FNC tries to help keep everyone informed on every change in the regulatory tide, so if you missed our web conferences on these topics, you can get more information at the following links:
Dodd-Frank Wall Street Reform and Consumer Protection Act
Interagency Appraisal and Evaluation Guidelines
.
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