A study by the Government Accountability Office (GAO) found that the Appraisal Subcommittee, which oversees the appraiser regulatory programs established by the states, needs to improve its monitoring procedures.
“These findings underscore the need to establish an effective oversight system to ensure that appraisals accurately reflect true market values and don’t harm aspiring home buyers or builders,” said NAHB Chairman Bob Nielsen.
A recent NAHB survey shows that one out three builders have lost signed sales contracts because of flawed appraisals, and a fall survey conducted by NAR shows that 18 percent of REALTORS® reported a recent contract cancellation or delay as a result of a low appraisal.
Numerous flaws in the appraisal system are causing inaccurate home valuations, both in times of housing weakness and strength. Industry groups been actively seeking improvements in appraiser education and training, particularly for appraisals of new homes, as well as more rigorous oversight so appraisal guidelines are enforced and errors can be corrected as they occur.
The GAO report found the Appraisal Subcommittee’s “enforcement tools and procedures for reporting compliance levels have been limited.” The GAO cited “several weaknesses” that have potentially limited the subcommittee’s ability to monitor state appraiser regulatory agencies, the federal financial institution regulators and the Appraisal Foundation, a private, non-profit corporation that sets criteria for appraisals and appraisers.
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The Wall Street Journal
Converting home equity into cash has been a challenge for homeowners since the real-estate downturn, but a growing number of lenders are quietly reviving a loan for seniors that does just that: The reverse mortgage.
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http://online.wsj.com/article/SB10001424052970204542404577158990079313270.html?mod=WSJ_RealEstate_LeftTopNews
The California Dept. of Real Estate recently issued the following practical advice to prevent consumers from falling victim to a scam:
- Never pay an upfront fee for loan modification services. Such fees are illegal.
- Watch out for promises of guaranteed success. No one can promise that a loan modification will be successful.
- Ask questions, get referrals from people you know and trust, and always remember the following: If it seems too good to be true, it probably is not true.
- Contact a HUD-approved counseling agency that can provide loan modification services for free.
- If you have been a victim of a loan modification scam, report it to the DRE, the FTC and the Attorney General.
Beginning Dec. 7, Fannie Mae will launch the HomePath Online Offers Program to collect offers and manage the offer-submission process on properties listed on HomePath.com. Agents and brokers representing buyers are now required to submit offers exclusively on HomePath.com. All properties listed in California and Florida are eligible on the designated launch date.
The HomePath Online Offers Program is designed to ease and create transparency during the offer submission process with the following features:
An easy to use, self-service offer submission system that can be assessed through HomePath.com
A transparent offer process that keeps Selling Agents informed of the status of their clients’ offers on HomePath properties listed on HomePath.com
Improved communication between the Selling Agent and the Listing Agent regarding offers on HomePath properties listed on HomePath.com
http://www.homepath.com/offerQuestion.html
CoreLogic’s price index fell 4.1 percent year over year and dropped 1.1 percent on a month-to-month basis in September.
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http://www.inman.com/news/2011/11/7/real-estate-prices-continue-slide-in-september
