Appraiser News Online Headlines!

Appraisal Journal: Historic Facade Easement Tax Credit of Minimal Help

Staff — Wed, 18 Nov 2009 00:00:00 GMT

A historic facade easement decreases the value of a home far beyond the benefits of the related tax deduction, according to a new study in The Appraisal Journal’s fall issue. “The Impact of Historic Facade Easements on Condominium Value,” by Kimberly Winson-Geideman, Ph.D., and Dawn Jourdan, Ph.D., J.D., examines the resale of condominium row houses in Savannah’s National Historic Landmark District. The study found that historic facade easements decreased the sale price by 2.85 percent each year, or 57 percent over a 20-year period.

Harold Brantley, MAI, Appointed to Kentucky Board

Heather Norgaard — Wed, 18 Nov 2009 00:00:00 GMT

Kentucky Gov. Steve Beshear recently appointed Appraisal Institute member Harold Brantley, MAI, to the Kentucky Real Estate Appraisers Board. In this position, Brantley said he hopes to enhance public trust in the appraisal profession. Brantley’s three-year term begins Nov. 20. The Board is responsible for enforcing minimum criteria of the real estate appraisal reform amendments in Title XI as well as the state's Real Estate Appraisal Voluntary Certification Act.

Survey: Sustainability Costs Must be Offset by Operating Costs

James Sobiesczyk — Wed, 18 Nov 2009 00:00:00 GMT

A recent survey from CoreNet Global and Jones Lang LaSalle said 37 percent of respondents from around the world – corporate real estate executives responsible for office portfolio leasing – would consider paying a premium between 1 percent and 10 percent for sustainability if lower operating costs offset the expense, according to MBA NewsLink.

Architecture Billings Index at Most Positive Since 2008

James Sobiesczyk — Wed, 18 Nov 2009 00:00:00 GMT

October’s Architecture Billings Index logged in at 46.1, its highest level since August 2008 and a sharp increase in demand for design services from September’s rating of 43.1. The index, released by the American Institute of Architects, is an economic indicator of construction activity that shows a nine- to 12-month lag time between architecture billings and non-residential construction spending. Scores lower than 50 represent declining conditions, while those greater than 50 indicate an industry-wide increase in billings.

September Home Prices Slip Slightly; Mortgage Rates Down, Refis up

James Sobiesczyk — Wed, 18 Nov 2009 00:00:00 GMT

The index for national house prices in September was down a modest 0.6 percent from a year ago, compared to last year’s drop of 3.1 percent for the same period, according to the latest Integrated Asset Services IAS360 Home Price Index. Nationally, the index is down 29.9 percent from its peak in 2006.

Zillow: Underwater Mortgage Decline in 3Q09

James Sobiesczyk — Wed, 18 Nov 2009 00:00:00 GMT

The percentage of borrowers underwater on their mortgages fell in the third quarter, but the volume of foreclosures could cause a setback for the housing market’s recovery, according to Zillow’s recent Real Estate Market Report. As reported by Reuters, the number of single-family homes with a negative equity fell 2 percent to 23 percent in the third quarter from the previous quarter.

RealtyTrac: Foreclosure Filings Slow in October for Third Month

James Sobiesczyk — Wed, 18 Nov 2009 00:00:00 GMT

RealtyTrac reported that foreclosure filings in October fell for the third consecutive month, dropping 3 percent from the previous month, according to CNNMoney.com. However, foreclosure filings are still 18 percent higher compared to a year ago. October’s drop followed a 4 percent fall in September and a 1 percent drop in August, the news site said. "Three consecutive monthly declines is unprecedented for our report, and, on first blush, an indication that the foreclosure tide may be turning," RealtyTrac's CEO James Saccacio said in a statement.

NAR: 3Q09 Home Prices Rise

James Sobiesczyk — Wed, 18 Nov 2009 00:00:00 GMT

The national median price for homes in the third quarter increased $7,000 from the previous quarter to $177,900 — the second consecutive quarterly gain — but is still down more than 11 percent from a year ago, according to the National Association of Realtors’ latest survey on home prices. "The decline in the national median price has moderated recently," Lawrence Yun, NAR chief economist, said in a statement.

Developers Diversified Sells $400 Million TALF CMBS

Heather Norgaard — Wed, 18 Nov 2009 00:00:00 GMT

Developers Diversified Realty Corp. sold $400 million of debt backed by 28 shopping centers in the first offering of commercial-mortgage bonds since mid-2008, Bloomberg News reported. The deal, underwritten by Goldman Sachs Group Inc., is also the first commercial mortgage deal to be sold under the Term Asset-Backed Securities Loan Facility program, according to The Wall Street Journal.

Lenders Extended 3Q09 Borrower Debt Obligations to Slow Distressed Growth

Heather Norgaard — Wed, 18 Nov 2009 00:00:00 GMT

In its November “Distressed Commercial Real Estate Journal,” Delta Associates said lenders slowed growth in distressed commercial mortgage asset values during the third quarter by extending borrower debt obligations, MBA NewsLink reported. According to Delta Associates, the highest mortgage asset value increase came from distressed hotel properties.

Fed: Banks More Often Extend than Refinance CRE Loans — for Now

Aaron Hultgren — Wed, 18 Nov 2009 00:00:00 GMT

In response to new U.S. guidelines that are more forgiving of declining property values, banks are moving quickly to restructure commercial mortgages to avoid bigger losses – though at the moment many banks are still extending commercial real-estate loans more often than refinancing them, according to an Associated Press story and reporting by The Wall Street Journal.

FDIC Pushes for New Accounting, Regulatory Rules

Aaron Hultgren — Wed, 18 Nov 2009 00:00:00 GMT

To avoid a repeat of reckless lending practices that helped fuel the current financial crisis, Federal Deposit Insurance Chairwoman Shield Bair is looking to establish new regulations pertaining to bank sales of securities backed by loans and leases. According to Bloomberg News, Bair said at an FDIC board meeting last week in Washington that her agency is ready with specific proposals, although she did not detail them.

Fannie, Freddie Voice Insurance Claims Concerns

Aaron Hultgren — Wed, 18 Nov 2009 00:00:00 GMT

Mortgage giants Fannie Mae and Freddie Mac are warning that the weakening conditions of mortgage insurance companies could spell more losses for the government-sponsored enterprises. According to The Wall Street Journal, Fannie and Freddie – who have already received a combined $112 billion of bailout money from the Treasury Department – are worried that as conditions for mortgage insurers deteriorate, claims that the GSEs make against the insurers may not be paid in full.

FHA Audit Finds Agency Falling Well Below Reserve Limits

James Sobiesczyk — Wed, 18 Nov 2009 00:00:00 GMT

An independent audit released last week indicated the Federal Housing Administration’s reserve, which covers losses on mortgages the agency insures, fell to 0.53 percent – well below the 2 percent ratio mandated by Congress, according to a report by CNNMoney.com. "They have a horrendous foreclosure problem, and it's getting worse," said Edward Pinto, a former chief credit officer for Fannie Mae. In response, FHA Commissioner David Stevens said the FHA is taking steps to return the agency to solid financial footing by monitoring risks and exposure to fraud more closely.

AI CEO Attends Fed Advisory Council Meeting

Staff — Wed, 18 Nov 2009 00:00:00 GMT

Appraisal Institute Chief Executive Officer Frederick H. Grubbe participated in a meeting Nov. 16 with fellow members of the Federal Reserve Bank of Atlanta’s Real Estate Advisory Council. The group provides advice and counsel on real estate issues to Dennis P. Lockhart, president and chief executive officer of the Sixth District Federal Reserve Bank. The Council’s discussions focused on current conditions and short-term outlook for the real estate market, capital market issues and other topics.

Fed: CRE Will Slow but not Derail Recovery

Aaron Hultgren — Wed, 18 Nov 2009 00:00:00 GMT

Dennis Lockhart, president and chief executive officer of the Federal Reserve Bank of Atlanta, told an audience at the Urban Land Institute’s recent conference that economic conditions will recover at a slow pace because of increasing commercial real estate defaults, Bloomberg News reported. However, Lockhart added that although the climate of commercial real estate “is very worrisome for parts of the banking industry, I don’t see it posing a broad risk to the financial system. … As the recovery develops, the CRE problem will be a headwind, but not a show stopper, in my view.”

Appraisal Organizations Urge Reconsideration of Appraisal Services Directorate Criticism

Brian Rodgers — Wed, 18 Nov 2009 00:00:00 GMT

The Appraisal Institute and its sister appraiser organizations have sent a letter to the House Appropriations Committee questioning the validity of a statement found in the recent Conference Report of the Interior Appropriations Bill. The statement criticizes delays in obtaining appraisals and calls for the Interior Department to revisit the consolidation of Department-wide appraisal services.

Drill Team, Anthems, Remarks Open IVC in Cancun

Staff — Wed, 18 Nov 2009 00:00:00 GMT

A Mexican armed forces drill team, national anthems and welcoming remarks highlighted the International Valuation Congress’ opening ceremonies attended by approximately 350 appraisers from several countries Nov. 12 in Cancun, Mexico. The Appraisal Institute, along with the Federation of Valuation Colleges, Institutes and Societies of the Mexican Republic, A.C. (FECISVAL), co-sponsored the International Valuation Congress at the Fiesta Americana Condesa Cancun hotel.

President’s Awards Honor Four AI Members

Staff — Wed, 18 Nov 2009 00:00:00 GMT

Appraisal Institute President Jim Amorin, MAI, SRA, (at right) honored four AI members by bestowing upon them the prestigious President’s Award during a joint regional reception Nov. 10 in Cancun, Mexico. Recipients of this year’s President’s Award were: Ted Anglyn, MAI, of Marietta, Ga.; Rick Borges, MAI, SRA, of Seymour, Ind.; David Riach, MAI, of Irving, Texas; and Bonnie Roerig, MAI, of Denver.

IVC Keynote Speaker Outlines Cancun’s Growth, Resilience

Staff — Wed, 18 Nov 2009 00:00:00 GMT

Cancun, Mexico, is a symbol of long-term economic resilience, according to a local tourism developer who delivered the International Valuation Congress’s keynote address Nov. 12 to about 350 Mexican, American and other attendees at the Fiesta Americana Condesa Cancun hotel. The Appraisal Institute co-sponsored the International Valuation Congress with the Federation of Valuation Colleges, Institutes and Societies of the Mexican Republic, A.C. (FECISVAL).

AI Board Approves 2010 Budget, Dues Increase; Declines on SIPP Form

Staff — Wed, 18 Nov 2009 00:00:00 GMT

The Appraisal Institute Board of Directors approved the 2010 budget during its fourth regular meeting of the year Nov. 12-13, held in conjunction with the historic International Valuation Congress in Cancun, Mexico. The budget includes the first multi-category member dues increase in seven years. In other action, President-Elect Leslie R. Sellers, MAI, SRA, was sworn in as president for next year by 2009 President Jim Amorin, MAI, SRA (at right).

FHA Drops Two-Appraisal Requirement in Declining Markets

Aaron Hultgren — Wed, 18 Nov 2009 00:00:00 GMT

A second-appraisal requirement that had been issued by the Federal Housing Administration at the height of the housing crisis has been repealed for loans that exceed $417,000 in declining markets and for cash-out refinances. A second-appraisal requirement will remain when a property is resold between 91 and 180 days following acquisition by the seller, if the resale price is 100 percent (or more) higher than the price paid by the seller when the property was acquired.

Financial Fraud Task Force to Examine Mortgage Lending, Mods

Aaron Hultgren — Wed, 18 Nov 2009 00:00:00 GMT

Obama administration officials announced a new federal task force Nov. 17 to combat financial fraud and pursue criminals who bilked investors and consumers during the financial crisis. The Financial Fraud Enforcement Task Force, which was created by an executive order, will look into fraud related to securities, stimulus spending, mortgage lending and modification, as well as other issues, according to The Washington Post.

Appraisal Foundation Establishes Appraisal Practices Board

James Sobiesczyk — Wed, 18 Nov 2009 00:00:00 GMT

The Appraisal Foundation said it will create a new independent board that will focus on providing timely voluntary guidance to appraisers on emerging valuation issues occurring in the marketplace. According to a recent news release from the organization, the Appraisal Practices Board will join the Appraiser Qualifications Board and the Appraisal Standards Board in the Foundation’s mission to promote professionalism in appraising.

New AI Member Benefit: Communities of Practice

Heather Norgaard — Wed, 11 Nov 2009 00:00:00 GMT

The Appraisal Institute has unveiled two Communities of Practice, a new online member benefit now available to all Appraisal Institute members. The Technology Community and Sustainable Buildings Community are open with additional Communities coming soon, according to Senior Marketing Manager Yoon Hernandez.

Reis: CMBS Delinquencies, Defaults Rise

James Sobiesczyk — Wed, 11 Nov 2009 00:00:00 GMT

Delinquencies and defaults on real estate loans backed by commercial mortgage-backed securities surged more than five-fold in the third quarter, according to real estate research firm Reis Inc. Bloomberg News reported that the firm’s findings also indicate that CMBS are expected to deteriorate further as Stuyvesant Town-Peter Cooper Village, New York’s largest apartment complex, continues to struggle, With deteriorating rent rates and occupancy levels, commercial property owners have been struggling to repay debt.

World Bank Concerned About Asset Bubbles

Aaron Hultgren — Wed, 11 Nov 2009 00:00:00 GMT

The reappearance of billions of dollars in investment capital in East Asia is raising concerns about asset price bubbles in equity markets across the world, the World Bank warned last week. According to a report in The Wall Street Journal, the World Bank is worried that infusions of capital will negatively impact real estate in China, Hong Kong, Singapore and Vietnam, among other countries.

Survey: Investment Managers Expect Global Positive Returns in 2010

James Sobiesczyk — Wed, 11 Nov 2009 00:00:00 GMT

A survey by UBS Investment Research found more than 70 percent of global commercial real estate investment managers expect positive returns in 2010, according to REIT.com. Nearly 100 investors and managers in charge of a combined $265 billion worth of real estate assets participated in the survey. As reported by REIT.com, nearly 90 percent of respondents indicated that the funds they oversee have had positive inflows.

Third Quarter Commercial Mortgage Lending Down 54 Percent

James Sobiesczyk — Wed, 11 Nov 2009 00:00:00 GMT

Commercial mortgage lending in the U.S. fell 54 percent in the third quarter from the previous year, the Mortgage Bankers Association said. “Tight credit conditions coupled with scant demand for new loans meant that commercial and multifamily mortgage originations remained low in the third quarter,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

CRE Surveys Indicate at or Near Bottom; Recovery Beginning 2010

James Sobiesczyk — Wed, 11 Nov 2009 00:00:00 GMT

Various surveys and studies recently released indicate that analysts and investors agree about the future of commercial real estate: commercial property values are at or near the bottom, and fundamentals won't start improving in any meaningful way until sometime in 2010. Although the surveys indicate that values and rent levels will continues to fall in almost every market, attractive buying opportunities will surface once the sector hits bottom.

Urban Land Institute: CRE Collapse Could Mean Opportunity

Aaron Hultgren — Wed, 11 Nov 2009 00:00:00 GMT

The Los Angeles Times has detailed a study by PricewaterhouseCoopers and the Urban Land Institute that expects the commercial real estate industry to bottom out with a thud in 2010 after a surge of defaults, write-downs and lender workouts. In the wake of the glum news of a CRE bottom out, however, researchers are confident that opportunities will present themselves for investors to purchase prime bargain properties.

TALF Deal Continues after Fed Eases Concern

Aaron Hultgren — Wed, 11 Nov 2009 00:00:00 GMT

The first sale of commercial-mortgage-backed securities connected to the Term Asset-Backed Securities Loan Facility, or TALF, may go through after the Federal Reserve reportedly eased concerns about financing the deal, according to The Wall Street Journal. The deal would be significant, as many industry analysts believe approval from the Fed may reopen the country’s stagnating commercial-property debt market.

Dodd Bill Would Strip Fed, FDIC of Regulatory Powers; Faces Uphill Battle

Aaron Hultgren — Wed, 11 Nov 2009 00:00:00 GMT

Senate Banking Committee Chairman Christopher Dodd, D - Conn., is drafting legislation that would dramatically change how the financial system is regulated, including stripping almost all bank-supervision powers from the Federal Reserve and Federal Deposit Insurance Corp., The Wall Street Journal recently reported. The bill would create a new agency in charge of supervising all banks and bank-holding companies. Dodd’s proposal also would create a powerful council of regulators, overseen by an independent White House appointee, charged with monitoring risks to the financial system.

Fannie, Freddie Issue Repurchases Warning

Aaron Hultgren — Wed, 11 Nov 2009 00:00:00 GMT

In the midst of continued big losses, Fannie Mae and Freddie Mac have warned in their respective third quarter financial filings that mortgage servicers who fail to uphold their obligations to repurchase bad loans weigh down the government-sponsored enterprises’ books. According to National Mortgage News, Fannie expects that repurchase and reimbursement requests will remain high this year and into 2010. The company also is reporting that it already has a significant number of requests that have not been paid.

Fannie Mae Seeks Federal Aid to Stay Afloat

Aaron Hultgren — Wed, 11 Nov 2009 00:00:00 GMT

Fannie Mae has submitted a request to the Treasury Department for an additional $15 billion in aid after the government-sponsored enterprise reported third quarter losses of $19 billion. According to The Washington Post, Fannie’s request for aid comes on top of the $45 billion it already has received and will be necessary for the mortgage giant to stay afloat.

FHA Forecasts 20 to 24 Percent Default Rate; Audit Postponed

James Sobiesczyk — Wed, 11 Nov 2009 00:00:00 GMT

Although the Federal Housing Administration has tightened credit standards, many FHA mortgagees are falling behind on their payments. The agency is forecasting defaults on 24 percent of all loans backed in 2007 and 20 percent of those in 2008, according to The Wall Street Journal. The Journal reported that during late 2007 and early 2008 – as home prices began to fall – thousands of high-risk borrowers refinanced mortgages through FHA. FHA leaders argue that the agency has enough funds to withstand the expected losses. During an Oct. 8 hearing, FHA Commissioner David Stevens testified that the FHA’s total reserves exceed $30 billion, or more than 4.4 percent of its insurance.

FHA Reports no Coverage Shortages; VA Provides ‘Control Group’

Adam Webster — Wed, 11 Nov 2009 00:00:00 GMT

The Federal Housing Administration’s Appraiser Roster has shrunk to about 50,700 appraisers since the Oct. 1 removal of non-certified appraisers but the agency has not experienced a shortage in any particular market area, according to FHA Appraisal Policy Analyst Milton Corson, Jr. His comments came in a panel discussion at Valuation Expo 2009 on Nov. 10 in New Orleans. Other recent activities discussed include FHA’s three mortgagee letters covering a wide array of hot topics. The Veteran’s Administration, meanwhile, “tends to be the ‘control group’ – not making a lot of changes,” according to fellow panelist Supervisory Appraiser Gerald Kifer.

FHA Announces Mortgagee Letters, New Appraisal Webinar

Aaron Hultgren — Wed, 11 Nov 2009 00:00:00 GMT

The Federal Housing Administration released Mortgagee Letters 2009-46 A and 2009-46 B last week and announced a new appraisal webinar designed to explain the FHA appraisal process. The two mortgagee letters provide temporary guidance for condominium policy and detail the condominium approval process for single-family housing while the FHA appraisal webinar discusses current policy and recent updates.

GSEs Address Independence, AMCs, HVCC at Valuation 2009

Adam Webster — Wed, 11 Nov 2009 00:00:00 GMT

As part of a panel discussion at Valuation Expo 2009, Jacqueline Doty, director of collateral policy at Freddie Mac, and Robert Murphy, senior business manager, enterprise risk management at Fannie Mae, presented their agency updates on the impact of the Home Valuation Code of Conduct, appraisal management companies and appraiser independence.

FHFA: Adoption of HVCC Provisions Means Spirit of Code is Here to Stay

Adam Webster — Wed, 11 Nov 2009 00:00:00 GMT

While the Home Valuation Code of Conduct may be unpopular, the major changes it created were already in motion when the HVCC took effect and will continue even when it expires in November 2010. That’s what Federal Housing Finance Agency General Counsel Alfred Pollard told approximately 300 attendees at Valuation Expo 2009, held Nov. 10-11 in New Orleans. Pollard said the fact that the Federal Housing Administration and other agencies have adopted certain provisions in the agreement between the government-sponsored agencies Fannie Mae and Freddie Mac and New York State Attorney General Andrew Cuomo means regardless of what happens with the HVCC, those guidelines will still be applicable.

FASB, IASB Will Seek to Eliminate Differences in Fair Value Measurement

Heather Norgaard — Wed, 04 Nov 2009 00:00:00 GMT

The Financial Accounting Standards Board and the International Accounting Standards Board agreed during a joint meeting Oct. 28 to work toward eliminating differences between their guidance on fair value measurement, according to a Federal Bureau of National Affairs newsletter. Specifically, the boards will discuss differences between the IASB exposure draft, Fair Value Measurements, issued May 2009, and the guidance adopted by FASB, now incorporated in Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (formerly FAS 157).

S&P Puts Mortgage Insurers on Watch

Heather Norgaard — Wed, 04 Nov 2009 00:00:00 GMT

Standard & Poor's Ratings Services put the mortgage insurance operations of seven companies on watch for downgrade because of a longer-than-expected loss cycle, according to The Wall Street Journal. S&P's move indicates the view that macroeconomic conditions may have become more difficult for mortgage insurers since April, when an extensive review of the sector was last conducted, analyst Ron Joas told the Journal.

Feds Close 9 More Banks

Heather Norgaard — Wed, 04 Nov 2009 00:00:00 GMT

As the weak economy continues to produce a stream of loan defaults, regulators have shut California National Bank of Los Angeles and eight smaller related banks, boosting the number of failed banks this year to 115, according to the Associated Press. The closing of nine banks was the highest daily total since the financial crisis began taking down banks last year, the AP reported.

Freddie Mac Adopts MISMO

Adam Webster — Wed, 04 Nov 2009 00:00:00 GMT

The Mortgage Industry Standards Maintenance Organization reported last week that Freddie Mac has begun the planning process for adopting the version 3.0 reference model. Freddie Mac said it is exploring a fourth-quarter 2010 implementation date, according to MBA NewsLink.

SBA 504 Fee Waiver May Expire Dec. 31

Aaron Hultgren — Wed, 04 Nov 2009 00:00:00 GMT

A Small Business Administration initiative that waives fees for small businesses participating in the 504 Loan Program may expire at the end of the year. Under a plan implemented earlier in the year to encourage small business borrowing and lending, the SBA eliminated the Third-Party Participation Fee and the Certified Development Company Processing Fee that applicants were required to pay. However, those fees may resume in 2010, according to the SBA’s Web site.

AI/ABA Four-Part Commercial Real Estate Telebriefing Series Starts Dec. 16

Adam Webster — Wed, 04 Nov 2009 00:00:00 GMT

The American Bankers Association and the Appraisal Institute are hosting a series of four telephone briefings collectively titled “Managing Commercial Real Estate Appraisal Functions” from December 2009 through March 2010. The first telebriefing in the series, “Managing and Procuring Appraisal Reports,” will be held on Dec. 16.

Liquidity Trumps Write-downs in CRE for Bankers

Aaron Hultgren — Wed, 04 Nov 2009 00:00:00 GMT

A recent survey conducted by Chicago-based Jones Lang LaSalle has revealed that nearly three-quarters of nationwide bankers would prefer to be liquid and redeploy funds profitably rather than avoid commercial real estate write-downs. According to JLL’s 2010 Bank Sentiment Survey, only 26 percent of direct lenders, syndicators and mortgage banking subsidiaries are prioritizing the avoidance of write-downs on their portfolios.

Investment-Grade CRE Values Rise More than 4 Percent in Third Quarter

James Sobiesczyk — Wed, 04 Nov 2009 00:00:00 GMT

Investment-grade commercial property prices increased by 4.4 percent in the third quarter, according to the Massachusetts Institute of Technology Center for Real Estate's transaction-based index. The increase is the largest since the market downturn began in 2007 and marks the first positive price change in more than a year.

NAR: Pending Home Sales Increase 6.1 Percent, Longest Streak on Record

James Sobiesczyk — Wed, 04 Nov 2009 00:00:00 GMT

Pending home sales in September increased for the eighth consecutive month, marking the longest streak since record keeping began in early 2001, according to the National Association of Realtors. The Pending Home Sales Index jumped 6.1 percent to 110.1 from the August figure of 103.8. The September number was 21.2 percent higher than the September 2008 figure of 90.9, and the increase pushed the index to its largest recorded annual growth. It was the highest index since December 2006 recorded a figure of 112.8.

Freddie: Appraisal Quality up Since HVCC

James Sobiesczyk — Wed, 04 Nov 2009 00:00:00 GMT

While the controversial Home Valuation Code of Conduct has been in place only since May 1, Freddie Mac has reported a notable improvement in the quality of appraisals of loans it buys, according to National Mortgage News. Patricia McClung, Freddie Mac’s vice president of offerings management, noted at the recent Mortgage Bankers Association’s convention that 15 percent of the appraisals the agency receives are in greater alignment between the value determined by the organization’s automated valuation model and the value determined by the actual appraiser.

FFIEC Issues Guidance on Prudent CRE Loan Workout; Robust Appraisal Process Recommended

Aaron Hultgren — Wed, 04 Nov 2009 00:00:00 GMT

Concerned that diminished operating cash flows, depreciated collateral values and prolonged delays in selling or renting commercial properties could cause a collapse of the commercial real estate sector, federal regulators last week adopted new guidance pertaining to prudent CRE loan workouts. In addition to prudent workouts, Federal Reserve Associate Director of Banking Supervision and Regulation Jon Greenlee said prices for commercial properties are likely to further decline and that many institutions would benefit from prudent loan workouts as well as more robust appraisal practices.

Congress Extends First-time Buyer Credit, Loan Limits

Aaron Hultgren — Wed, 04 Nov 2009 00:00:00 GMT

Lawmakers agreed last week to extend two popular government programs. The Senate announced it would extend the $8,000 first-time home buyer tax credit through April 30, while the House and Senate approved a provision that would continue current loan limitsfor Federal Housing Administration, Fannie Mae and Freddie Mac loans through next year, according to MBA NewsLink.

Appraisal Organizations Urge Congress to Pass Conservation Easement Act

Adam Webster — Wed, 04 Nov 2009 00:00:00 GMT

The Appraisal Institute called upon the Ways and Means Committee to approve H.R. 1831, The Conservation Easement Incentive Act of 2009, in a Nov. 2 letter to Chairman Charles Rangel, D-N.Y., and Ranking Member Dave Camp, R-Mich. The legislation would make permanent the tax deduction for charitable contributions by individuals and corporations of real property interests for conservation purposes, which is set to expire at year’s end.