Industry News Blog

The Appraisal Institute (AI) approves of the new changes in Fannie Mae guidelines regarding the use of residential appraisers.  The requirement includes refraining from using inexperienced or incompetent appraisers, that lenders explain any changes made to an appraised value, and that Fannie will provide further guidance on how to determine comparable sales.

Appraisers hoping to recoup some of the revenue lost from being blacklisted by Wells Fargo lost their court battle.  Several appraisers said they were denied assignments from Wells after refusing to alter appraisal documentation that would improve values for the lending giant. 

The judge said their denial from Wells did not "significantly" decrease the revenue they could earn in their field.  Looks as if they may have slanted the lawsuit the wrong way. ...

Another factor that is keeping the market in a stagnate state is the lack of comparables for appraisers to use in their valuations.  Short sales and foreclosures have made it nearly impossible for some homes to reflect any real value.

Go here to read a great article at American Banker about how this is affecting the market.

Oklahoma homebuilders are upset that some of their homes are appraising for less than the cost to build it.  They say the Home Valuation Code of Conduct is responsible for inexperienced appraisers lowballing the values.

Read the story here at MortgageDaily.com.  (Subscription required.)