03 May 2010 | Appraising, Commentary, Lending/Mortgage, Podcasts
Think lender pressure on appraisers is a distant memory? Think again. Here is some commentary on a new report that indicates appraisal fraud is up 50% over the past year. It is laid out in Kenneth Harney’s excellent column in the Washington Post.
“Despite 2009 restrictions, mortgage and appraisal fraud spiked”
I also provide commentary on a recent episode with a bank client we now refuse to work with who pressured our firm to raise the appraised value of a property or they would not pay us for services already rendered.
In fact, they didn’t really understand what they were saying.
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29 Apr 2010 | Appraising, Interviews, Podcasts, Policy
Last month I spoke to and interviewed Tony Pistilli, a certified real estate appraiser on the Minnesota Department of Commerce Real Estate Appraiser Advisory Board. He’s got a possible solution to the current appraiser – appraisal management company conflict. Its all about conforming to RESPA and preventing banks from shifting the burden to appraisers to pay for bank compliance.
Its the first logical solution I’ve heard. The banks are essentially making the appraiser pay for their RESPA compliance by taking it out of the appraiser’s fee, often 50% of the stated appraisal fee. The consumer is being mislead by the appraisal fee stated by the lender at time of mortgage application.
- - Appraisers and borrowers are paying for services the banks receive, not the bank.
- - Banks should pay for the services received from the AMC’s who manage the appraisal process.
- - Appraiser’s fees should be market driven.
- - Banks should be held accountable for the quality of the appraisal.
He’s been spreading the word through all the channels/usual suspects in the blogosphere. Here’s my original post, including his article:
[HVCC and AMCs Violate RESPA?] Here’s a possible solution
His views seemed to have been picked up by the Appraisal Institute, the largest appraisal trade organization in the US, in their letter to HUD looking for clarification on RESPA and the disclosure of fees paid by consumers. Here’s the FAQ on the new RESPA rule.
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15 Dec 2009 | Appraising, Commercial, Interviews, Podcasts
Hugh Kelly joined me today for the podcast. I’ve known Hugh for quite a while and greatly admire his insights.
Hugh is an Associate Clinical Professor of Real Estate in New York University’s Masters Degree Program in Real Estate Investment and Development. He heads his own consulting practice, Hugh F. Kelly Real Estate Economics, which serves national and international real estate investment and services firms, governmental organizations, law firms, and not-for-profit agencies. Prior to establishing this consultancy, he was chief economist for Landauer Associates, where he worked for 22 years until early 2001.
Hugh also serves as the President of the Board of Brooklyn Catholic Charities’ affordable housing development corporation, which has built and manages 3,000 units of low-income family, seniors, and special needs housing. He is a member of the Counselors of Real Estate, the National Association of Business Economists, and the American Philosophical Association. He has spoken to virtually every major real estate organization in the United States, as well as to audiences in Canada, the U.K., France, the Netherland, and Germany.
We served together on the New York City Council Finance Committee Economic Advisory Board and our firms have worked together on several consulting projects.
Hugh provides perspective on affordable housing, his recent Ground Zero consulting, MBA programs and their relationship to the credit crunch among others. He’ll join me again in the near future to expand the discussion on affordable housing.
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01 Jun 2009 | Appraising, Interviews, Podcasts
John Cicero has more than twenty five years of commercial real estate valuation experience and is my business partner and managing principal in our firm Miller Cicero, LLC, a commercial real estate appraisal firm covering the New York City region.
John talks cap rates, market trends of various types of commercial properties, his recent market report for Massey Knakal and the political movement in Albany that is of great concern to income property investors in New York state.
Don’t fret, John bifurcates everything to those outside the cap rate mainstream.
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