Monthly Archives: November 2011
The Illinois Real Estate Appraisal Administration and Disciplinary Board is greatly concerned over the September 1, 2011 implementation of the Uniform Appraisal Dataset (UAD) by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) under the direction of the Federal Housing Finance Agency (FHFA). Conforming to the UAD significantly compromises the appraiser’s ability to comply with theUniform Standards of Professional Appraisal Practice (USPAP) and with Illinois Law.
Click on link to read letter:
The Illinois Real Estate Appraisal Act was scheduled to be repealed in 2012, but instead the state of Illinois amended the act and extended it to 2022. The searchable PDF version of the Act can be found at the following link: http://www.icapweb.com/upload/225%20ILCS%20458%20-%20Appraisal%20Act%202012.pdf
The PDF version makes it easy to copy and paste parts of the law into an appraisal and save it to your computer. The process of finishing the RULES for the amended Act is in progress and is anticipated to be approved by the Joint Committee on Administrative Rules (JCAR) by spring 2012.
Fannie Mae and Freddie Mac provided details yesterday (11/16/2011) on their expansion of the HARP program. The detailed bulletin establishes the guidelines for refinancing underwater borrowers with GSE loans. As part of the program, the Federal Housing Finance Agency is allowing the GSEs to waive the appraisal and AVM requirement.
The refi effort is being carried out under the HARP program or what Freddie calls its ‘Relief Refinance Program. A summary of the guidelines is as follows:
- The program is for borrowers whose mortgages are owned by Fannie Mae or Freddie Mac, and who got their loans before May 2009.
- HARP had been scheduled to expire at the end June 2012; HARP 2 extends the expiration to the end of 2013.
- There is no loan-to-value cap anymore for borrowers who now have fixed-rate mortgages.
- For borrowers with ARMs, the loan-to-value cap remains 105 percent.
- Borrowers can qualify for HARP 2 refis if they have paid on time for the last six months and have no more than one 30-day late payment in the last 12 months. Originally, HARP didn’t allow any delinquencies in the last 12 months.
- Fees have been reduced. Lenders are fond of adding fees to loans that have an added smidgen of risk. Fannie and Freddie call these fees “loan level price adjustments,” and the charges easily can climb to 2 percent of the loan amount on HARP refis. Under HARP 2, the fees are reduced to zero percent on loans for 20 years or fewer, and 0.75 percent for mortgages for more than 20 years and for ARMs.
The changes go into effect Dec. 1, 2011, to see the guideline details visit: http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1122.pdf.
October Research and Landy have teamed up to produce a special edition of Valuation Review packed with information from their recent Voice of the Appraiser survey.
The goal of the survey was to gauge the appraisal community’s sentiments about current business pressures, opportunities and challenges, as well as gain insight into the operations and processes of today’s valuation professional.
Download your free PDF by clicking the following link: Click here to download the Voice of the Appraiser Special Edition.
Randy Barcella long term ICAP member has been asked to join the Real Estate Edge Radio show as the co-host and resident appraiser expert. Randy has worked on other radio stations for over three years and is now promoting the appraisal industry and ICAP with his position on one of Chicago’s largest radio stations AM 560 WIND.
Randy has made several announcements during the show urging the audience to choose an appraiser based on experience, credentials and affiliation with organizations like ICAP. Randy discusses several issues affecting the appraisal industry including the difference between a real estate appraisal and a home inspection, customary and reasonable fees as well as others.
The show airs every Sunday from 9 to 10am on 560 AM, or you could click the following link to listen to the shows streaming podcast anytime: http://realestateedgechicago.com/REE/podcasts.html.