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Category Archives: Valuation
I recently spoke at the American Conference Institute’s Seventh National Forum on Preventing, Detecting, and Resolving Mortgage Fraud in Washington, D.C. After the presentation, an attorney who represents mortgage lenders approached me to say that she felt enlightened. She had never considered that appraisal fraud and potential risk can be revealed by analyzing supply and demand around the subject property.
It’s true. In the Origination arena, analyzing supply and… Continue reading
Of the many likely sources contributing to ongoing housing market weakness (e.g., the overhang of distressed and vacant homes; tight credit; poor job prospects; negative income shocks to many would-be first-time homebuyers; disappearing equity on the part of potential trade-up buyers), appraisal valuation –- a key underwriting requirement for screening the risk of mortgage loans in the event of borrower default –- has come under criticism for its alleged role… Continue reading
Last week, ahead of the S&P/Case-Shiller Home Price Index, a number of price indices reported the latest July home price trends. While all indices are pointing to a fairly decent seasonal upswing in the housing market, beneath this consensus lies significantly overlooked differences.
One of these difference concerns what type of sales transactions need to be measured in order to capture a relatively accurate picture of what’s happening to… Continue reading
How do good neighborhoods differ from good companies?
Bill Rayburn and Bob Dorsey explained in this week’s Morning View.
Properties in a good neighborhood need to be similar to increase value. Employees in a good company tend to be very different individuals – “a collection of misfits.” Below are some highlights from this week’s call.
What is a distressed/declining market?
A distressed market is when there… Continue reading
Recently, I read The Crash Course, a fantastic book by Chris Martenson. In the book, Martenson examines the future of our economy, including energy demands and environmental impacts and makes the argument that our current conditions are unsustainable.
Of particular interest to our industry are pages 85–87, where Martenson discusses the housing bubble. His… Continue reading
In June, Kevin traveled to Copenhagen, Denmark (seen at right) for the Værdiansættelse af sikkerheder (“Collateral Valuation”) conference, where he led Europe’s first AVM workshop. He was invited to participate in the event because of his experience in creating… Continue reading
Kathy reports that the forum’s attendees (all very committed to pursuing and prosecuting mortgage fraud) included prosecutors, the New York State Banking Department’s criminal investigators, and representatives from government agencies and several divisions of law enforcement.
In her speech, Kathy discussed… Continue reading
Most people loathe change. Appraisers are no different.
The upcoming GSE Uniform Mortgage Data Program (UMDP) is the latest in a string of rules, policies and guidelines to better regulate and analyze risk in the world of real estate lending with primary emphasis on consumer lending (1-4 unit residential properties).
In the past, the Home Valuation Code of Conduct, Dodd-Frank, Interagency Appraisal and Evaluation Guidelines and now the… Continue reading
The FNC Residential Price Index (RPI) – the industry’s first hedonic price index built on a comprehensive database combining public records and real-time appraisals – indicates that home prices continue to weaken in 2011, reflecting weak demand and significant downward pressure from the rising share of distressed sales. Based on the latest data on non-distressed home sales (existing and new homes), the FNC National Residential Price Index shows that… Continue reading
Despite recent upbeat data on new and existing home sales, U.S. home prices continued to decline in December due in part to increased sales of foreclosed properties, according to the FNC Residential Price Index (RPI).
Driven in part by rising sales of distressed properties and higher foreclosure-sales discounts, home prices declined for the seventh straight month in December and suffered their largest one-month drop during… Continue reading