August is a busy month for parents across the country as they ready for the upcoming school year. For most the need to get school cloths, supplies and school administrative task out of the way is top priority. With August being such a busy and exciting time for both the parent happy to see the kid go back to school and the kid maybe even reluctantly going back to school important things may slip their minds.

Apella is pleased to do our part in raising awareness that August is also National Immunization Month and Children’s Vision and Learning Month. Both very important areas for parents that will help keep their children safe and healthy and better enabled to learn.

For those who are older or may have already gotten the kids through the school years, August is also Cataract Awareness Month and it is reminded that Immunization is not just for kids. More seasoned people can benefit from immunization too.

Apella encourages those in the real estate industries to help raise awareness to these very important programs for their community. As August typically proves to be a peek month for real estate sales due to the rush to get into homes before the school season starts, the month makes for a wonderful time for real estate professionals to raise awareness by means of marketing materials and home warmer gifts. This also proves to be a good opportunity for brokers and office managers to promote immunization to the work force to combat flu season and lost production not to mention the chance to show that you care about your workforce and co-workers.

For more information on immunization readers can visit MedicineNet and the National Vaccine Information Center. For information on how to help in the area of vision readers can learn more by visiting the National Eye Institute.

Until the next post, thanks for reading and we will SEE you later… Stay Healthy while keeping kids and your community the same.

Apella is an appraisal management company. For the last two years or so now Apella has worked to make a web presents and has worked very hard to establish a network of real estate professionals. Apella has attempted to promote the company as a resource for real estate professionals and homeowners. Over the last couple of months it has become clear that Apella still has much work to do.

Within the last couple of months appraisal management companies have been the clear target for the HVCC agreement between Fannie Mae, Freddie Mac and the State of New York Attorney General Cuomo. AMC’s have been targeted by real estate sales professionals and appraisers. There has been much confusion on the subject and even with all of the presents and blogging on the subject, not one real estate professional has contacted Apella with questions on the HVCC. That leads some to wonder to say the least, so with that said it was felt that Apella should do what it can and clear the air on a couple of areas pertaining to HVCC and at least this AMC.

First and foremost it was the actions of an appraisal management company that sparked the Cuomo investigation into the appraisal world. Some made claims that Cuomo had a hidden agenda and rather he did or not at this point does not matter as the subject is all water under the bridge, however Cuomo is a former HUD higher up and quite a while ago Table Talk With Apella raised the concern that FHA would incorporate the HVCC even though it was an agreement and not a law between the GSE’s and NYAG. It is starting to look like that concern is going to take hold. Table Talk With Apella very early on stated that the HVCC would be an additional cost and inconvenience to the consumer and that smaller lending businesses need to take action in order to counter potential issues. Those concerns likewise became a reality. Needless to say for some lenders they have actually taken a liking to the HVCC as it has reduce their workload by cutting off appraiser related duties of the lender job. Real estate agents, brokers and builders have used the HVCC to raise issue with “out of area” appraisers.

In all honesty there is some truth in the concern of the real estate professionals yet there are also many that feel that the real estate sales pro is upset because they now cannot pressure the lender to pressure the appraiser to make the deal go through based on value and therefore affecting their commission. Sure there could be some reason to that thinking as well as the possible use of the HVCC to vent on market conditions. There are many factors that are killing real estate deals these days and some of the deals vanishing may not be HVCC but instead the 1004MC. Another area that real estate professionals are stating issues with is turn times of the appraisals, Apella truly feels that some of this is in fact being caused by the 1004MC a form that requires appraisers to list detailed market data that takes additional time to compile and place in the appraisal report therefore affecting the overall turn times. Yet the HVCC does have the ability to hamper communications especially when all the parties do not understand if they are allowed to communicate or not.

As far as this AMC, Apella did commend the attempt of the agreement to curtail several practices used in the appraisal process that are less then desirable, however over all Apella did not support the HVCC for a handful of reasons. One of the main reasons was the effect that the agreement would have on the client, consumer and vendor. As a company Apella took some grief for that kind thinking coming from an AMC. Apella stands by the past and current concerns and reinstates the view that the HVCC is a good attempt however is misdirected and in need of some changes.

Recently the National Association of Realtors commended a statement issued by Fannie Mae and Freddie Mac clarifying the use of appraisers that hold knowledge of the area. In appraiser speak we call that “Geographical Competence”. NAR and a good portion of their members used the “Out of Area” issue in an attempt to kill HVCC. FHFA last week came out in support of the HVCC. In a response the NAR called the support “Lame”. Great use of words there NAR, don’t you guys have a PR Department or something? So this prompted Apella to do some “Clearing of the Air”.

Apella is an appraiser started, owned and ran appraisal management company. As appraisers we would occasionally run into the predicament of “Out of the Area” appraisers when doing review appraisals for lender clients. It is a well known fact for appraisers that “Out of the Area” appraisers can get an appraisal wrong and appraisers have attempted to get the problem fixed with lenders for years and years now. With the advancement of the AMC the problem worsen and with most governmental regulation or agreements or whatever they call the stuff these days, the issue was completely overlooked. Not by Apella.

In the start of the company a handful of years ago, a policy was compiled from the input of appraisers (yes as hard as it is to believe the policy came from appraisers of all people). Appraisers who had been dealing with the problem for years put forth a process that Apella has maintained from the start. Apella does not market areas of any state unless it already has a vendor that covers that area under our appraiser vendor network agreement. Apella established the filtering system that based on office location an appraisal business could hold “Geographical Competence” in reason to a two (2) hour commute radius (pending local market such as locations in the Great Plains, etc that are determined on a case by case basis). In the summer of 2009 based on laws passed in Utah, Apella has reevaluated what constitutes an appraiser business and an appraisal management company. This reevaluation has taken place in an attempt to counter issues involving “Geographical Competence”. Keep in mind that Apella likewise holds some issues with the Utah law as well and is attempting to work through them.

What is vital to remember is that by only marketing areas that are home coverage areas for the appraisers in the Apella vendor network base we hold in place a policy and procedure that counters the claim being dished out like candy on Halloween by real estate sales professionals and the NAR.

Apella respects the claims having seen firsthand such problems and it is understood that there are several AMC’s that do not hold policy or procedure and with HVCC several more AMC’s are sprouting up compiling the problem. This understanding is yet one more reason that real estate professionals can contact Apella to address their concerns with HVCC. Such concerns like if they can talk to appraisers or not. Yes listing agents can talk to the appraiser in a lending assignment as the appraiser works for the lender. It is not encouraged to pressure the appraiser as in several states that may be an issue in its own right, however appraisers are in fact required to doing due diligence and part of that requirement is to seek out sources that hold knowledge on the transaction which includes listing agents and brokers.

Apella provides resources for real estate sales professionals in gaining education on HVCC. Real estate sales professionals can take advantage of Apella’s 10% discount on HVCC education as provided by McKissock Real Estate and Appraisal School. This resource has been put into place in order to improve the appraisal and real estate industries one professional at a time. This education source is available to real estate appraisers, lenders and homeowners as well.

For appraisers there are a few more concerns with AMC’s that is understandable and Apella has attempted to counter as many of those concerns as well. For appraisers the biggest issue is fee splits. Appraisers can visit Apella’s web site to learn about fee splits. As an appraiser ran AMC, it is fully respected the concerns of fee splits held by appraisers and for Apella there is the held concern of maintaining the appraisal industry appraiser by appraiser.

However appraisers too hold issue with HVCC and those issues are fully understood and respected by Apella. As a company Apella is working tirelessly to counter the issues that appraisers have with HVCC, or at least to the best of our ability. However as a small AMC our efforts may be limited. That does not mean that we will not continue to do our best to protect our vendor base and industry.

For real estate professionals rather in sales, lending or appraisers HVCC has its effects, however before attacks can be issued research needs to be undertaken and resources that are available need to be utilized. Apella hopes that real estate professionals can look to this AMC as both a source for research and education and in the end help solve the problem that HVCC has created.

Until the next post, thanks for reading and remember that by working together as industries we can all clear the air.

In the spirit of real estate sales being up (non-seasonally adjusted), employment numbers down (adjusted in anyway needed to meet whatever number needed) and available credit not adjusted not available, Table Talk With Apella felt that it was time to put a beat to all great real estate news (that is free news right now but will not be free shortly because of the economy). So please enjoy the following video, boogie down and make some deals!

 

Until the next post, thanks for viewing and be sure to take pleasure as the music industry is posting profits.

 

Until the next post, thanks for viewing.

This post was inspired by an item from the Charles & Hudson Blog dated July 27th, 2009 and titled An Illuminating Indoor Air Cleaner that informs readers to a neat little light bulb. From the post it reminded of the late 80’s and early 90’s when the big thing in manufacturing was a thing called ergonomics. The thought process for manufactures was to save cost in making work places less harmful to the worker. Within the trend lighting made up for a major part of factories ergonomic improvement plans. At the time few people realized just how important proper lighting was for their environment and health.

On the subject of lighting a couple of media items were reviewed over the weekend that made for some great information. For the inside of the home an item found in the Charlotte Observer by Cristina Bolling dated August 1st, 2009 and titled Got a Light? Gives great tips on how to improve the lighting for setting moods and how to “layer” light for the different areas of a house based on the use and need. Likewise in an item from the Toledo Blade dated July 31st, 2009 titled In the Dark about Outdoor Lighting? Tips for Brightening Up, gives just as equally interesting information for applying lighting to the outdoors of a home including back yards and decks.

In the home lighting is a major item that is not really thought about by most people other than the cost for the electricity. Granted while there is a concern for the cost of electricity and one that will only increase with the Cap-n-Trade bill, lighting does need to be addressed. Proper lighting can improve health, safety, comfort, curb appeal and if right can save money while remaining “green”.

Until the next post, thanks for reading and remember to thank those that keep a light on for you.

Within the last week or so several news items were put out that touched on the lending industry. Items ranged from bank to mortgage to borrowers. While all of them made for some great reading putting them together for a blog post has been kind of tricky. Several lending based news items for readers to sample.

In news items that did not show love to the lending industries one that made for some really good reading was by Monica Hatcher for The Miami Herald titled Countrywide’s promised loan relief falling short for many dated July 29th, 2009. The piece notes some crazy to comprehend numbers as to the amount of borrowers affected, gives replies from Bank of America how much work the modify program is and tells the story of how the state of Florida could really give a rats butt as it protects Countrywide from prying eyes of victimized barrowers while being very unhappy with the former Great Orange Countrywide CEO and in a unbelievable and shocking statement ACORN even makes some sense. Others are listed below;

Ohio.com Cordray suing mortgage firm dated August 1st, 2009 covers how the state of Ohio Attorney General is taking on Carrington Mortgage Services LLC. The charges puts Ohio in the same boat that Florida was in with other states until it received a nice payoff from Countrywide to be shared among the states that settled with the defunct lender.

From the Los Angeles times August 1st, 2009 by E. Scott Reckard in a piece titled Wells Fargo accused of bias on subprime loans comes what would be a nasty little lender program unequaled other than to those of the days of “Redlining” should the claims prove to be true. While possible it would seem hard to believe in today’s lending world as it would be hoped that lenders would not allow for such possibilities based on review systems and safe guards. While it is not saying that anything is possible as everything is possible, it will be interesting to see what comes from these claims based on the history of Wells Fargo being overall a safe in practice-company as least as far as lending goes. Per the item Wells Fargo states that they do in fact have safeguards in place to prevent such practices.

Meanwhile in a piece also dated August 1st, 2009 by Julia Anderson as found in the Columbian.com News titled Marketplace: Poor people victims of bank fees the piece notes the amount of cash banks are raking in at $35.00 a pop. The piece does a great job of explaining how the banks use their systems to maximize profits at the cost of the consumer.

From Fox News dated July 29th, 2009 titled Subprime Mortgage Companies Warn on Foreclosures, the piece several lenders put out that programs that are designed to prevent or slow foreclosures may derail their efforts based on rating companies and running out of working funds. Carrington Capital Management LLC claims that lacking manpower and increased cost in labor to comply with mortgage foreclosure preventions and/or modifications are pushing lenders to the brink. Perhaps this is fuel for the Ohio fire. Carrington CEO Bruce Rose states “a classic case of an unfunded government mandate”. What makes the piece noteworthy is the effect that these problems may have on government programs such as TALF and HAMP.

From yet another angle comes a Wall Street Journal piece dated July 28th, 2009 by Nick Timiraos titled Study Finds Underwater Borrowers Drowned Themselves with Refinancings, The piece notes a study based on California foreclosures that shows some amazing support for the homeowner that ATMed there home equity to death…. Now who was that that was saying something like that equity farming was not a problem….. oh yeah the Federal Reserve in a push for Super Cop, anyway the piece also goes on to note how much the banks lost because of this type of barrower behavior and that if the study proves across the board for the nation then that will prove that many of the programs and regulation is being drafted or created needlessly.

As this is a simple little blog post that only covers some of the items, another one will follow that covers the issues that banks are having with things like regulations, government funded profits, B. Frank and the wonderful topic of pay/bonuses. That post should make for some interesting reading. So until then please hit the links and have fun checking out what is happing in the lending world.

Until the next post, thanks for reading and remember… follow the money man.

Apella Real Estate Business Solutions is pleased to bring a new resource to real estate professionals of the world. Announcing the Grand Opening of Apella’ Real Estate Business Supply Store in association with Amazon.

The concept of Apella’s Real Estate Business Supply Store was born out of the realization that real estate professionals need a source to supply their small real estate businesses while saving them money and time. Apella Real Estate Business Solutions is pleased to have a supply store concept that joins the education concept that already offers real estate professionals a 10% savings on real estate courses via McKissock Real Estate and Appraisal School.

Apella’s Real Estate Business Supply Store is an online store that provides any kind of item that a real estate professional or real estate business large or small may need. Products include office supplies, office equipment, office fixings, cameras, measuring devices, home and garden items, building supplies, business clothing and a wide assortment of items that can be provided as gifts while staying under the $25.00 limit.

Another feature with Apella’s Real Estate Business Supply Store is that because it is in association with Amazon, customers can be assured it is a secure and reliable online shopping source.

Real estate professionals can now shop from the comfort of their home, while at the office, or on the go from their mobile phones. While the Apella’s Real Estate Business Supply Store is designed for real estate professionals all shoppers will find items of interest while saving money and time.

Real estate professionals can now order any item of need for their small or large real estate business without having to go to several brick and mortar stores. From Apella’s, online shopping experience is enhanced with Amazon’s product review and customer feedback. Not sure what product that may be needed or what it is like? See what other consumers are saying about it.

For larger brokerage companies or real estate related businesses you can now offer your purchasing staff a single location to satisfy all of the real estate business needs while paying prices that often is much more economical then the big box retailers. No need to send the staff to a store on the other side of town and cost your business labor resources, now the items are shipped directly to your office.

For those of us in the real estate industries we understand that the business operations do not end or close at 5:00 PM most of the time. Now real estate professionals can order supplies at anytime of the day or night. Up at 2:00 AM and remember that you have an open house on Sunday that needs presentation materials? No problem… now real estate professionals can get products they need and know and with Amazon they can have it shipped express.

Apella Real Estate Business Solutions is pleased to have the opportunity to offer real estate professionals yet another resource aimed at making the real estate business better. As a small real estate appraisal management company, Apella fully understands the needs of real estate businesses. That is why we developed Apella’s Real Estate Business Supply Store, saving real estate professionals and others time and money.

Apella Real Estate Business Solutions hopes you enjoy our new online shopping center. Just click the Apella’s logo and it will get you started on supplying your real estate business while making your business life just a little bit easier.

Thank you for shopping Apella’s Real Estate Business Supply Store Online.

This Friday Community Connection is a special posting and serves to continue the never ending fight against a devastating disease while remembering a real estate neighborhood blogger that showed us how.

August is Breast Cancer Awareness Month, Apella is proud to do its part in raising awareness to this subject. At the same time Table Talk With Apella would like to pay tribute to Karen George a mortgage specialist and blogger who sadly passed away in August of 2008 fighting Breast Cancer.

Before anything else is said, much thanks needs to go out to Michael George, Karen George’s husband. Michael allowed Table Talk With Apella permission to pay tribute to Karen, her work and to honor her fight. Michael puts a name and a face to the effect of Breast Cancer on family and love ones. Michael… thank you for your strength, generosity and humanity in allowing the real estate blog neighborhood to honor your wife.

It must be stated that this devastating disease affects thousands of lives and has taken others besides Karen. As real estate bloggers many of us knew Karen in one fashion or another and with that said it was felt that a tribute to Karen could also be a tribute to the many others that have lost their fight to this cancer. Upon careful consideration and soul searching it was felt that Karen would be honored in show casing her plight and work in raising awareness to Breast Cancer. With that said, for every post on Table Talk With Apella for the Month of August 2009, a banner will be in each post that will link to Karen’s Breast Cancer Awareness Blog. Readers are encouraged to click the banners and visit Karen’s Blog.

For more information on Breast Cancer and how to promote awareness readers can visit the National Breast Cancer Foundation, Inc and also the National Cancer Institute.

Table Talk With Apella encourages those that are in the real estate industries or involved with real estate blogs to continue Karen’s and countless others fight against Breast Cancer by raising awareness during the next month. Together as a community and with some simple efforts, we may finally put an end to this disease and save an untold number of lives.

The post that was originally scheduled for this Vendor Voice Post was going to be green related, however after a discussion with some people today the mind set was changed to address the direction of the appraisal industry as a whole. There really are several items that the appraisal industry needs to be concerned with and with that said so should the appraisal management companies as well.

It has become a real concern that the appraiser may become an endangered critter. Sure there are those that hold the mentality that the fewer appraisers the better… people within the appraisal industry with this kind of thinking. Then there are those who seek to make the standards extremely difficult or expensive and of course this is for their own self serving reasons as well.  Then there are those that think like Apella.

Appraisers are already faced with very high overhead to operate their small businesses. One of the most common complaints from appraisers is the combination of cost associated with the appraisal business. These costs include MLS fees, licensing fees, regulation maintenance cost, gas cost and lost time management due to increased requirements of product development. As an appraiser based and owned Appraisal Management Company Apella fully respects the cost of operating an appraisal business. This respect is one of the reasons that Apella is one of the highest paying appraisal management companies in the market. Apella is striving to establish a level of respect with appraiser vendors and at the same time demonstrating to the appraisal management companies that low ball fees are not feasible in the long run due to the damage being done to the appraiser vendor.

It must be clearly stated that there are several appraisal management companies in the world that does not agree with Apella and do not see the concern down the road.

Apella was built with the mind set to provide as many resources possible to the appraiser vendor in order to help them run efficient businesses. This mind set was the driving force for Apella to establish a working relationship with McKissock Real Estate and Appraisal School. With setting up a viable relationship with McKissock Apella is able to offer a 10% discount to appraisers for their real estate appraisal education needs. Apella holds the view that highly qualified appraisers should be sought and therefore the best way to achieve this is to promote education within the vendor network. The encouragement of education in turn provides the client and customer a better product and experience in the appraisal process.

Appraisers are required to maintain a certain amount of education. The required amount of education is one of the highest in the real estate industries. For example in the State of Michigan appraisers are held to three times the level of education over any other real estate related industry with the exception of tax assessors, real estate attorneys and civil engineers. These requirements were established prior to 2008 of which the requirements increased. Appraisers now join attorneys and civil engineers as the only segment in the licensed real estate professionals that are required to hold college degrees (unless the appraiser was grandfathered in prior to the 2008 changes). This increase was instated nationwide via the Appraisal Foundation educational standards. Apella understands the cost involved with maintaining appraiser real estate education and therefore encourages appraisers to save whenever they can including with the McKissock discount.

Further concern for the appraiser business is the established use of the BPO and AVM by the federal government. With noted support to the Appraisal Institute, American Society of Appraisers and others who have issued joint letters to the FDIC, FHFA, Fannie Mae and Freddie Mac, the use of these less costly and less accurate valuation tools is an insult to the appraiser business as it was the government that required the education and licensing for appraisers and therefore lead to higher appraisal cost. The government is living a double standard and putting the risk on the backs of the taxpayers. This lost business is adding stress to the appraisal industry in an untold fashion. There has been a couple of bills introduced and the State of Utah has addressed this issue in recent laws however there is a real fear that Congress will not see the threat to the taxpayer and will not address the issue and will continue to put the taxpayer at risk because the FDIC and others felt that it was good business to try to save a buck. To the FDIC Apella request you stop the practice of ordering BPO’s for loan modifications.

Still yet the appraisal industry should face the concern of disappearing real estate broker boards and the MLS that they control. While some may not see the threat, over time there may be a serious concern to the continued existence of the MLS and data needed by appraisers to do what appraisers do. Apella holds the concern that the threat is so slow moving and believed by so many that there is no threat that nothing will be done to stifle the concern.

For appraisal management companies there is a twofold concern stemming from the recent market and regulation changes. First the loss of appraisers in the industry (due to lost business and reduced fee collected from AMC’s) and second the increase of AMC’s due to HVCC. Several appraisers are leaving the industry and still several others are starting AMC’s in order to compete with in the appraisal industry.

Several of the largest AMC’s in existence today were started by appraisers as far back as the early 1980’s. That trend will continue with a draw on appraiser pools. The biggest concern is that with the loss of appraisers, clients will not receive product coverage or turn times and in turn will be encouraged to use other valuation tools such as BPO’s and AVM’s.

Without appraiser vendors there will not be AMC’s only AVM generators. Because of this serious concern and the thought process that AVM’s do not produce the same quality compiled with the idea that the appraiser put in time and cost to compile the data in appraisals Apella holds the policy that AVM’s will not be compiled with appraisals provided to Apella by appraisers. Of course Apella hold no control over the client but as far as Apella no AVM’s are generated by the data provided in appraisals. There are several AMC’s that do not hold this policy as generating a dollar is more important than protecting an industry and those that compile the data in the first place. No matter how you spin the issue there just is something wrong with the concept. Therefore while Apella’s competition generates income from AVM’s Apella does not. Does that put a small appraisal management company at a disadvantage? Sure but we feel that the damage down the long road is far more devastating to the appraisal industry and our appraiser vendors. Sometimes companies need to make a stand for long term over short term gains.

Last but not least of several concerns is the concern that the appraisal industry is old and tired. The appraisal industry needs new and fresh blood. The average age for appraisers nationwide is getting close to being in the sixties. In 2005 the average appraiser age nationwide was fifty one and in Michigan the average age was encroaching on the early seventies. Appraisers are required to earn their license under an apprenticeship program. Appraisers are reluctant to introduce people into the apprenticeship programs due to the fear of “Breeding” competition. While in the old days this competition issue may have been a concern it is no longer the case, in fact it may be to the contradiction. Technology alone serves to be a threat or a motivator to counter this thought process. There are methods that can continue the appraisal industry and still protect the appraiser that is currently in the market. Appraisers will often make the case that they cannot afford to pay someone or take the time to train someone. This may be the case and there is some merit to the statements appraisers make when addressing the idea of introducing a younger work force into the appraisal industry. However this may be a great place for the trade groups to assist the industry. Instead of spending their time in creating soft ware that is designed to produce competing AVM’s perhaps the appraisal trade groups can seek out new blood at college fairs. Should the appraisal industry dies off (really dies appraiser by appraiser) then the appraisal trade groups and appraisal management companies will follow suit. The appraisal trade groups need to seek an intern program that can subsidize the appraiser as they train the apprentice. That or change the standards of the industry that will reduce quality and training but open up the appraisal industry to existence in the future.

These are not easy concerns for the appraisers to address. There are many emotions in the appraisal industry and for many it is understood, after all this is the business that has fed appraisers and their families for years. Yet the industry is owed the chance to continue. All of the parties involved in the appraisal industry needs to take steps in the right direction so that our industry continues past hard times and down the road.

Until the next post, thanks for reading and stay positive.

The post that was originally scheduled for this Vendor Voice Post was going to be green related, however after a discussion with some people today the mind set was changed to address the direction of the appraisal industry as a whole. There really are several items that the appraisal industry needs to be concerned with and with that said so should the appraisal management companies as well.

It has become a real concern that the appraiser may become an endangered critter. Sure there are those that hold the mentality that the fewer appraisers the better… people within the appraisal industry with this kind of thinking. Then there are those who seek to make the standards extremely difficult or expensive and of course this is for their own self serving reasons as well.  Then there are those that think like Apella.

Appraisers are already faced with very high overhead to operate their small businesses. One of the most common complaints from appraisers is the combination of cost associated with the appraisal business. These costs include MLS fees, licensing fees, regulation maintenance cost, gas cost and lost time management due to increased requirements of product development. As an appraiser based and owned Appraisal Management Company Apella fully respects the cost of operating an appraisal business. This respect is one of the reasons that Apella is one of the highest paying appraisal management companies in the market. Apella is striving to establish a level of respect with appraiser vendors and at the same time demonstrating to the appraisal management companies that low ball fees are not feasible in the long run due to the damage being done to the appraiser vendor.

It must be clearly stated that there are several appraisal management companies in the world that does not agree with Apella and do not see the concern down the road.

Apella was built with the mind set to provide as many resources possible to the appraiser vendor in order to help them run efficient businesses. This mind set was the driving force for Apella to establish a working relationship with McKissock Real Estate and Appraisal School. With setting up a viable relationship with McKissock Apella is able to offer a 10% discount to appraisers for their real estate appraisal education needs. Apella holds the view that highly qualified appraisers should be sought and therefore the best way to achieve this is to promote education within the vendor network. The encouragement of education in turn provides the client and customer a better product and experience in the appraisal process.

Appraisers are required to maintain a certain amount of education. The required amount of education is one of the highest in the real estate industries. For example in the State of Michigan appraisers are held to three times the level of education over any other real estate related industry with the exception of tax assessors, real estate attorneys and civil engineers. These requirements were established prior to 2008 of which the requirements increased. Appraisers now join attorneys and civil engineers as the only segment in the licensed real estate professionals that are required to hold college degrees (unless the appraiser was grandfathered in prior to the 2008 changes). This increase was instated nationwide via the Appraisal Foundation educational standards. Apella understands the cost involved with maintaining appraiser real estate education and therefore encourages appraisers to save whenever they can including with the McKissock discount.

Further concern for the appraiser business is the established use of the BPO and AVM by the federal government. With noted support to the Appraisal Institute, American Society of Appraisers and others who have issued joint letters to the FDIC, FHFA, Fannie Mae and Freddie Mac, the use of these less costly and less accurate valuation tools is an insult to the appraiser business as it was the government that required the education and licensing for appraisers and therefore lead to higher appraisal cost. The government is living a double standard and putting the risk on the backs of the taxpayers. This lost business is adding stress to the appraisal industry in an untold fashion. There has been a couple of bills introduced and the State of Utah has addressed this issue in recent laws however there is a real fear that Congress will not see the threat to the taxpayer and will not address the issue and will continue to put the taxpayer at risk because the FDIC and others felt that it was good business to try to save a buck. To the FDIC Apella request you stop the practice of ordering BPO’s for loan modifications.

Still yet the appraisal industry should face the concern of disappearing real estate broker boards and the MLS that they control. While some may not see the threat, over time there may be a serious concern to the continued existence of the MLS and data needed by appraisers to do what appraisers do. Apella holds the concern that the threat is so slow moving and believed by so many that there is no threat that nothing will be done to stifle the concern.

For appraisal management companies there is a twofold concern stemming from the recent market and regulation changes. First the loss of appraisers in the industry (due to lost business and reduced fee collected from AMC’s) and second the increase of AMC’s due to HVCC. Several appraisers are leaving the industry and still several others are starting AMC’s in order to compete with in the appraisal industry.

Several of the largest AMC’s in existence today were started by appraisers as far back as the early 1980’s. That trend will continue with a draw on appraiser pools. The biggest concern is that with the loss of appraisers, clients will not receive product coverage or turn times and in turn will be encouraged to use other valuation tools such as BPO’s and AVM’s.

Without appraiser vendors there will not be AMC’s only AVM generators. Because of this serious concern and the thought process that AVM’s do not produce the same quality compiled with the idea that the appraiser put in time and cost to compile the data in appraisals Apella holds the policy that AVM’s will not be compiled with appraisals provided to Apella by appraisers. Of course Apella hold no control over the client but as far as Apella no AVM’s are generated by the data provided in appraisals. There are several AMC’s that do not hold this policy as generating a dollar is more important than protecting an industry and those that compile the data in the first place. No matter how you spin the issue there just is something wrong with the concept. Therefore while Apella’s competition generates income from AVM’s Apella does not. Does that put a small appraisal management company at a disadvantage? Sure but we feel that the damage down the long road is far more devastating to the appraisal industry and our appraiser vendors. Sometimes companies need to make a stand for long term over short term gains.

Last but not least of several concerns is the concern that the appraisal industry is old and tired. The appraisal industry needs new and fresh blood. The average age for appraisers nationwide is getting close to being in the sixties. In 2005 the average appraiser age nationwide was fifty one and in Michigan the average age was encroaching on the early seventies. Appraisers are required to earn their license under an apprenticeship program. Appraisers are reluctant to introduce people into the apprenticeship programs due to the fear of “Breeding” competition. While in the old days this competition issue may have been a concern it is no longer the case, in fact it may be to the contradiction. Technology alone serves to be a threat or a motivator to counter this thought process. There are methods that can continue the appraisal industry and still protect the appraiser that is currently in the market. Appraisers will often make the case that they cannot afford to pay someone or take the time to train someone. This may be the case and there is some merit to the statements appraisers make when addressing the idea of introducing a younger work force into the appraisal industry. However this may be a great place for the trade groups to assist the industry. Instead of spending their time in creating soft ware that is designed to produce competing AVM’s perhaps the appraisal trade groups can seek out new blood at college fairs. Should the appraisal industry dies off (really dies appraiser by appraiser) then the appraisal trade groups and appraisal management companies will follow suit. The appraisal trade groups need to seek an intern program that can subsidize the appraiser as they train the apprentice. That or change the standards of the industry that will reduce quality and training but open up the appraisal industry to existence in the future.

These are not easy concerns for the appraisers to address. There are many emotions in the appraisal industry and for many it is understood, after all this is the business that has fed appraisers and their families for years. Yet the industry is owed the chance to continue. All of the parties involved in the appraisal industry needs to take steps in the right direction so that our industry continues past hard times and down the road.

Until the next post, thanks for reading and stay positive.

 

Until the next post, thanks for viewing.

The real estate blog neighborhood recently grew with FNC moving down on AMC Street. For most it may mean very little and for those of us that are in the appraisal management or appraisal business it looks like we are going to have to throw more burgers on the grill when the blog neighborhood holds it next barbeque… make that big burgers.

Per an item posted on July 23rd, 2009 by Valuation Review titled FNC branches into social media the giant data monster of a company has decided to move its marketing into social networking and blogging. The piece notes that FNC has started a Facebook and Twitter page and will soon launch a blog titled “Collateral Vision”.

While it needs to be disclosed that Apella is an Appraisal Management Company and therefore FNC is a direct competitor it needs to also be stated that FNC is a Giant in the business and should hold no know fear of this little appraisal management company or blog (like Japanese Tank Bullets when Godzilla comes to town). As long as it is disclosed then it is disclosed.

So while it would be rude to “not” welcome the Best’est Friend Forever to Chicago Title to the neighborhood … it would not be all that far out to say that there is defiantly a street in-between the two of the few of us on AMC Street.

Per the piece FNC is using the Facebook page to post industry-related content like articles, white papers, videos and podcast. This is to be done to be “a part of the daily lives of the client”. That is great! Welcome to the Blog and Social Street Party FNC. Of course moving into the hood might be based on economical growth as this is a late entry for the technology giant. Perhaps it is because little AMC’s are making it here on the net and need to be stomped out like buses in the same Godzilla movie or because of reports as seen on CNBC titled Power of Social Networking dated July 27th, 2009. Perhaps it is just because for Corporate America it is now cool to be social.

As a data monster FNC (also owner of Appraisalport) has been in the technology business for several years. As an AVM generator directly from appraisals via the appraisal management operations, FNC is no stranger to technology. With FNC moving into the social networks, perhaps they can provide resources and maybe even amend some old held views and opinions based on their “other side of the tracks” past. To show that as new neighbors that live across the street in the little ol’ shack we will take FNC on a stroll around the block just to introduce them to the blog and social neighborhood.

Perhaps the time spent together will allow us to explain to the data harvester how this hood rolls. As someone who has been in the hood for a couple of years now Apella has found that it is a tight community. One that is not just corporate but is social, one that talks over fences in the back yard. This neighborhood holds things like transparency and contributions to be a thing of respent’in ya see. In this part of the real estate business world there is not much love for the industry giant that seeks to undermine the small guy. The neighborhood knows the client and looks out for the consumer. For us on AMC Street, well most of us are not fond of the HVCC we like to give back to the vendor that pays for the ride and geeking data to peddle without any payback is not thought of as being very cool. Yeah we are kind of different in this part of the real estate world. The nice thing is that bloggers will call out on the rug if they have an issue… kind of like having a neighborhood watch program… you’ll get use to it. Last but not least if you are going to do any major improvements to the industry, then you might want to check with the blog neighborhood associations… they like to be involved in that sort of thing… of course don’t misunderstand it’s not like strong-arm title tactics or anything. It’s ok you’ll get use to it, your new here.

So go on and get your freak on and get social FNC… enjoy the stay as it is a lot of hard work but who knows you just might enjoy this part of the real estate world, most of us have.

For the rest of us lets be nice and neighborly and social… what do ya say.

Until the next post, thanks for reading and remember to get to know your neighbor.

For the readers of Table Talk With Apella you may have noticed the new post being put out on Tuesdays. As stated it is designed to bring to the table talk of technology for the real estate industries. This is a kind of wide subject based post as it should be because there are so many different technology based elements that the real estate industries deal with on a daily bases and will in the future.

It should be noted that coming back into the real estate blog neighborhood Apella stated that we were striving to bring better content to the blog. This post is, if not the first, then one of the few that has covered Architecture which is a new found love to speak of sorts here for the little appraisal management blog.

One recent item that was discovered over the weekend comes from a blog titled A Daily Dose of Architecture based out of New York City. Of course with New York City being one of Apella’s coverage areas it is attempted to maintain a working knowledge of the market, happenings and promote local real estate based bloggers. While Architecture is not real estate per say, nether one would be what they are without the other and so in the long run Architecture really does go hand in hand with the type of post covered here on Table Talk With Apella. Because of this it is hoped to have more of these types of post in the future and it is hoped that the newly designed Techy Tuesday Post is enjoyed and serves the role of providing resources.

From the blog A Daily Dose of Architecture the July 23rd, 2009 post titled eVolo Launches announces the development and launch of a new Architecture Design Journal put out twice a year and focuses on technology advances, sustainability and innovative design for the new century per the post. Not only does it sound great but it also looks just as good from what has been exposed up to this point. The post introduces the idea behind the new journal and it will be something that will be checked out in the future here at Apella.

Another item that was found to be interesting is a video titled New Green Building Practices in China from the Asia Society dated May 1st, 2009 in San Francisco. The building details are fascinating and no doubt shows the future of what real estate professionals will be dealing with in the future.

There is no doubt that design improvements are abound, rather they be in blogs or buildings. For the readers it is hoped that both bring rich and rewarding structure to their businesses and lives.

Until the next post, thanks for reading and please enjoy the technology based view.

Oh what a crazy world we live in when the actions of the Federal Reserve amidst politics get into the business of debunking lending actions while at the same time the world debates the possible mystery inventory being held by banks.

As the real estate world cheers the rapid reduction of foreclosure property on the market and raising prices that surely show that the real estate market has finally hit bottom, some are wondering if the numbers are not being thrown off by banks.

In an item from the Wall Street Journal Real Estate Blog titled Amid Signs of Recovery, Trouble with High-End Homes and Mystery Inventory by Nick Timiraos dated July 23rd, 2009 it is noted that some remain concerned that the recent stats do not include “substantial” amount of foreclosures being held by banks. In another item that also makes note to the WSJ piece from the Miami Herald dated July 24th, 2009 titled Are banks skewing South Florida real estate market? by Monica Hatcher, notes a broker whose inventory fell from 150 REO properties last June to 37 this month. What an amazing thing to have so much inventory that it allows for the direction of the real estate market. Banks have found methods to not only receive government funding, increase profits but now also command higher prices by using the supply and demand law. I am sure that this is just as UFO’s, Bigfoot and the Loch Ness Monster… a figment of the public’s imagination which fuel stories told over C.B. radios on cold desert nights.

Take for example the following story from the Cleveland Ohio Business News July 23rd, 2009 by Teresa Dixon Murray titled Federal Reserve Bank of Cleveland researcher debunks 10 myths of subprime mortgage crisis. This of course coming out post the governments push to become the “New” sub-prime guy on the block as July 20th, 2009 HousingWire.com item titled Fannie Mae Moves Up Start Date for 125% LTV HARP Loans notes. Not only is Fannie Mae moving up the HARP but the U.S. Treasury is using it as a major sell point to congress while some debate if the Fed is not losing popularity in the great Washington D.C. mystery infested woods some refer to as Congress.

Per the The Big Picture Blog item titled Is the Fed About to Lose On “Systemic Risk” Legislation? By Chris Whalen and dated July 24th, 2009 it is noted how “secretive the U.S. Central Bank is…. Kind of reminds you of Men In Black… and therefore how the other agencies are making a push not to give power to the one entity. The piece also does a wonderful job in pointing out what most of us feel about Barney Frank… but that we will save for another post and believe me… that post is coming just as Bigfoot walks.

However The Big Picture Blog was not the only voice making its point, Federal Chairman Bernanke (speaking to several small businesses in Kansas City, MO) made a push for “Super Cop” role. This of course while soothing small business that is suffering and dealing with the fact that they are less important than the Big Banks of the world (who now can control the real estate market with tractor beams). Per the Associated Press item by Jeanne Aversa dated July 26th, 2009 titled Bernanke had to “hold my nose” over bailouts, the Chairman stressed that he was “disgusted” and “understood” small business frustration… and to think that they say UFO’s don’t exist (Bluebook Project).

As for Table Talk With Apella, well this little appraisal management blog has always been kind of a freak… believing in things like UFO’s, Bigfoot and Loch Ness Monsters… but Chupacabra… well that might be just crazy and yet based on the recent actions of the government even Chupacabra is starting to be more believable. Sure… it is a regular thought process that should a business fail that a smaller and better business will replace it, that markets will work themselves out in the end and that small business makes up for the bulk of national product but maybe not… maybe the debunkers are right. Perhaps it is all just our imagination. Sure we are disgusted and frustrated as a small business, that now must suffer the heavy cost of regulations and tax burdened but what’s more is the pure be-wonderment of what we are seeing.

Perhaps all those refinances were not to fund water toys and boats or vacations or huge SUV’s or put a kid through an ever expanding collage cost system (still yet another mystery SwiftEconomics.com Blog Why is Colege Tuition so Expensive? Peter Schiff Explains 24th, 2009) perhaps there really wasn’t any greed in the design of the adjustable mortgage encouraging a commission plan in 24 months. Perhaps as appraisers all those request to “bump” the value just a couple of grand really did not happen and the loan to value amount based on stated incomes did not rise by 4 times in 5 years. Perhaps there were not attempts by several parties to make it aware to the government before bad things happened with no results and that Barney Frank and others in congress did not make cold hard cash hand over fist from the likes of Fannie Mae and Freddie Mac. Perhaps it is just an old back swamp folk story about the big bank wage packages that were maintained as banks fell like flies. And they say there ain’t no UFO’s or Bigfoots… I swear by my C.B. radio.

Until the next post, thanks for reading and keep watching the skis regardless of what the Federal Reserve says.

July 26^th, 2009 marks the 19^th anniversary of the Americans with Disabilities Act. For those in the real estate and lending industries and who are required by law to hold knowledge and abide by under the Fair Housing Law (HUD) this marks a great day. As the event approaches the twenty year mark for both those affected by disabilities and real estate related professional July 26^th makes for some wonderful opportunities.

Apella is please to do its part in raising awareness and take part in celebrating the anniversary signing of this law. The anniversary allows for those in the real estate industry to be reminded that they may need to freshen up on Fair Housing Law training and why it is so important.

The date also allows for the opportunity for real estate professionals to raise awareness to the greater risk during emergencies that many people with disabilities face. Awareness can be raised with the use of disaster supply kits, family communication plans, handing out working fire detectors and promoting methods for people to gain help in emergency situations primarily with communication tools.

The anniversary allows for the promoting of participation in volunteer programs that include the recruitment of those with disabilities while contributing to the community.

For more information on the act it is encouraged to the readers to visit the ADA home page and also take the time to learn the history of the act (see here).

While Apella strives to keep the community connection post commercial free. For those in the real estate industries that may need a good source to refreshed up their Fair Housing Education. They can visit the main Apella web page for educational partners that provide such real estate related Fair Housing Education.

It should be noted that Apella would like to remind those visiting Table Talk With Apella that Monday July 26^th, 2009 makes for a proud day to reach out to the Veterans who may have become disabled while serving the United States of America.

The anniversary of the signing of the Americans with Disabilities Act truly marks a major event in this country. Real estate professionals please do your part in conveying this great act.

For appraisers employment for a real estate market has always been part of assessing market conditions. In assessing market conditions there are several factors that need to be monitored however one of the appraiser’s most important is the “basic” and “non-basic” job base for a community. For those that may not remember what basic and non-basic is “Basic Industry: Industry that sells its products outside the community, bringing money into the community and Non-basic Industry: Industry that sells its products within the community; it does not bring money into the community”. This is why appraisers need to monitor unemployment rates just as closely as they would mortgage rates.

Two post that have came out with in the month, of which both are from the Rain City Guide Blog, touch on two key factors that appraisers incorporate in their business and product every day. Ardell DellaLoggia’s post dated July 6th, 2009 titled Price per Square foot revisited and Rhonda Porter’s post dated July 2nd, 2009 titled Thursday’s Rates following the Jobs Report. One covers the cost and pricing of inventory and the other points to the effect of unemployment rates on the stock market that in turn drives rates. Both of these post perform a great job of reminding appraisers to elements of their daily job.

More recent is the press release put out by U.S. Department of the Treasury Assistant Secretary for Financial Stability Herbert M. Allison titled Written Testimony dated July 16th, 2009. In the written statement the recent programs developed by the government are covered that address “affordable mortgage payments for borrowers”. While this is important, for appraiser more so the following, HAMP incorporates “Under the program, servicers must reduce the borrower's first lien mortgage to a 31 percent debt-to-income (DTI) ratio, meaning that the monthly mortgage payment is no greater than 31 percent of gross monthly income”. What this means for appraisers is now appraisers must monitor medium income for their markets closer.

Medium income which is affected by unemployment rates will now also hold a greater impact on market purchase power based on lending standards. This takes us back to the old days when banks based home loans on a percentage of monthly income. In yet another recent Rain City Guide Blog Post from Jillayne Schlicke dated July 14th, 2009 titled Everyone Does Not Qualify for a Loan Mod, Ms. Schlicke state “If a homeowner’s monthly income has dropped so low, to the point where they really can’t qualify to repay the modified loan, this loan modification will not be approved nor should it”. Table Talk With Apella cannot help to wonder if Secretary Allison is not reading Ms. Schlicke’s work, if so then good for the Treasury and better yet for the country.

Two things that appraisers must monitor medium income for is 1) affordability of the market and 2) lending effecting market. Both of these take play on a real estate market by directly affecting the “purchase pool” of a market. In states such as Michigan who as of today posted 18% unemployment rates for 10 to 25 percent of the state’s counties, there is a direct correlation to home prices. Appraisers are reporting that a major driving factor is in relation to two (2) income based households rated at $10.00 per hour wage for 40 hours per week ($800.00/month mortgage payment).

This is interesting as there has been a major push by the democrat ran Michigan State Government to raise minimum wage to $10.00 dollars per hour (this is on top of the $7.25 per hour hike that took effect nationally today). Of course for Michigan and other states that has high unemployment rates, the loss of population to other states that do have jobs also drive the purchase pool numbers. Unemployment rates take hold on a real estate market in more than one fashion.

Appraisers are starting to see a buying pool based on medium income that goes hand in hand with the 31% DTI rate. The market is showing what the population can afford (or get loans for). The 31% number was established with the FDIC experiment with Indy Mac, then was incorporated by FHFA (HUD) and now has been adopted by the Feds at Fannie and Freddie. This number will become a very important part of appraisers daily routine should they truly be monitoring local market conditions.

Yesterday a Bloomberg.com Pod Cast Titled MFR’s Shapiro Sees Recovery Tied to Consumers, Income, Labor notes the direct effect of the consumer on basic and non-basic industry. Appraisers need to become more and more of an economist in monitoring employment, consumer indexes and must pay close attention to the life cycles of businesses in their community. By doing these things they will be better able to report to the client overall market conditions.

Until the next post, thanks for reading, now let’s all get back to work.

Yesterday Kris Berg of Inman News post titled Real Estate Checklist gone wild really made for a great read. The point she made (need for broker policy change so to enhance process) fell in line with this post that has been developed over really the last couple of weeks. This post has been inspired from several noted items and conversations with different real estate professionals. The topic is the up and coming changes in the real estate industries.

Among real estate bloggers and a few others this really is not a new topic per say. For the most part it has been covered or discussed in just about every facet. Here on the Table Talk With Apella blog it was covered early on in the blogs history and to some extent this post is a revisit of the original message. Real estate sales professionals will need to evolve into a different kind of service provider. Becoming something other than what is now “a transaction coordinator”.

On the subject of real estate evolution, Realonomics Blog has been touching on the subject for more than a year now. One of the more recent items put out by the forward thinking blog is an item titled The four “Bs” dated March 21st, 2009. The item does a wonderful job of covering the evolution of the real estate sales industry starting in the 1700’s to present. The piece reminds us that two things are always present in the evolution of an industry… the ability to understand the past and the role of technology.

The industry is changing and most would agree with that. Some in the real estate sales industry may fully realize that stated fact, others may not and still others may realize it but may not fully understand to what degree. The latter two will most likely not evolve and in turn become extinct in the real estate sales industry.

In a recent news item on CNBC July 20th, 2009, titled State of Housing and Credit, LendingTree is featured and the new service features that they have launched. Of an important note, LendingTree calls out the dramatic loss of real estate professionals, lenders and real estate appraisers due to market downturns. In one’s mind it may be the thinning of the herd or it may be natural selection.

Technology does have an effect on industry and production effectiveness. Not only can this at times be seen on an industry level but at times it can be viewed over the whole of an economy. Case being that in the early nineties the United States production efficiency had increased from the 1970s without substantial increases in labor. The fact left most baffled until they realized that the reason for the lack in labor need was the barcode and scanner.

Two very recent items of note that involve technology are Redfin posting a profit as an On Line Broker (July 10th, 2009 The Naked Truth is Out: Redfin is Profitable) and the increasing questing of those in real estate to the needs of the industry. Shortly after the Redfin announcement Bloodhound Blog raised the question in a July 18th, 2009 post by Greg Swann titled With MLS listings available everywhere on the internet, why do you need a buyer’s agent? The post makes great sense in asking the very “industry needs” question.

As noted at the start of this post, this is not a new topic among the real estate blogs. In a dated item from October 6th, 2007 Mark Eibner posted on Broker IPTV a video interview titled Will Google Replace Realtor.com. For those who have read this far… marks these words spoken on Table Talk With Apella… Google in the very near future will change the world as we know it and more so the real estate industry willing or not.

Among the coverage of how the National Association of Realtors cannot evolve, discussions on why there are those that are still using the news print to market and if the print newspaper will survive in the age of internet video there are those that may be evolving in the right direction for remaining in the real estate sales industry.

In yet another IPTV production titled Metrolist MLS system Strives to be the heartbeat of transaction dated December 1st, 2008 Metrolist Board Member Bruce Gardner discloses the desire for the MLS to be the core of customer relationship management.

This thought process is where real estate sales professionals really need to evolve. More than a transaction coordinator and more than a property manager, real estate sales professionals will need to become lifetime home assistance and service network providers. Some are already providing this to some extent in specialized real estate markets such as found in senior citizen markets (i.e. Florida, Arizona and Nevada).

The fact lies in that real estate sales brokers and agents are not receiving their money’s worth in the current NAR or MLS or at least to the most in return on investment. As home buyers find that the heavy lifting is removed from the real estate transaction via the internet and digital documents and as sellers find cost savings in online and/or discount brokers, real estate sales pros are going to have to add value of services to the consumer.

Will the real estate sales professional evolve into a full home service provider? One that maintains the property throughout the life of the homeowner, maintain services such as yearly home inspections, yearly appraisals and coordinates with attorneys and financial planners… full real estate service provider that handles all communications with home remodelers, landscapers as well as contractors for maintenance more than property management. Service providers that shop for best mortgages and insurances that protect the home and homeowner and that maintain full homeowner association relationships including lobbing. Real estate sales professionals will need to consider becoming a real estate service provider that works with design and construction professionals that in turn can deliver cost and energy savings to the homeowner economically. 

The recent post titled Defining a Brand Through Business Strategy found on The XBroker Blog July 13th, 2009 talks on the development of brand in the eyes of the consumer. The post in some form supports the idea being stressed in this item by comparing the “traditional broker brands” to those of Redfin and of the future. The development of services will define the new brand and perception as far as to what a real estate sales professional is to the consumer.

As technology and the internet changes the real estate industry those involved will most certainly need to evolve.

Of course there are those that will stress that they are needed due to the lack of the “do it themselveser’s” ability or desire and that will hold to be true for some time now… but will it in the next ten years? Visit YouTube or EBay or Craig’s List or any countless other medium for the “do it selfer” to access… the argument for the cause weakens daily.

As the FBS Blog points out in the post titled Visionary Bill Chee dated July 15th, 2009 the NAR failed to foresee the future even when warned and several in the real estate sales industry are the same in lacking foresight. That is just the nature of any industry but for real estate it may serve to be truer than for most others. The question really is… if you are in the real estate industry are you going to be one of those that evolve?

Until the next post, thanks for reading and we will be seeing you around in the future.

 

Until the next post thanks for viewing

Green green everywhere! When the yard meets the roof and the roof is the yard. Of course green roofs have been around for quite some time with major industries starting to incorporate them into their buildings. Case being in Michigan is the Ford Company going green on top a few years ago. Common in Europe and sprouting up throughout major metropolitan areas across the United States green roofs are becoming more and more popular. For appraisers it is a long way from the days of the earthborn homes made common in the 1970’s.

The Techy Tuesday post for this week actually came about from an item published in the Toledo Blade Friday July 17th, 2009 titled Making Your Home More “Green” which talks about The American Society of Landscape Architects (ASLA) raising awareness to the need for sustainable environmentally sensitive design. The Toledo Blade piece touches base on green roofs however lists several other areas that homeowners can benefit from the ASLA awareness program.

Items in the article include:

• Use of trees and vegetation to cut air conditioning use
• Shading windows
• Strategically placed trees or trellises complete with vines
• Use of asphalt and pavers
• Use of native plants to reduce watering needs
• Use of Mulch, rain water tanks and gray water
• Cooking outside and composting

In an archived item found on the Lowes site Robert McGarvey’s article titled A Sustainable Landscape dated March of 2008 covers several areas that can help homeowners and landscaping professionals in establishing a “Green” yard. The piece covers everything from plants to pesticides to water and energy conservation.

Both items are worth checking out and may even educate or remind folks in their green efforts.

Until the next post, thanks for reading and here’s to your green thumb… roof… yard… and home.

Over the last couple of weeks various blogs and media sources have covered new requirements and regulations that may lead to lending being on a respirator longer. This comes in play at the same time Fannie Mae is either moving up scheduled programs or launching new incentive programs that almost seem to be an attempt to lend assistance to an increasingly ailing industry.

Both the San Francisco Chronicle report dated July 19th, 2009 titled New rules require disclosure of mortgage fees by Kenneth Harney and the item titled Fannie Mae Toughens Guidelines On 2- Unit Homes, Trailing Spouses And Retirement Portfolios by Dan Green dated July 20th, 2009 found on Daily The Mortgage Reports Blog cover changes put in place by Fannie that take effect in September of 2009.

The above mentioned reports steals air from the lending world balloon and is added to by AP Real Estate writer Alan Zibel article titled Foreclosures keep soaring as unemployment becomes main cause of housing woes as reported by the Los Angeles Times dated July 16th, 2009 and which also goes hand in hand with The Phoenix Real Estate Guy Blog item titled Phoenix Foreclosures: Trends, Stats and Charts oh my! By Jay Thompson dated July 20th, 2009.

Last but not least, these items follow a press release from the U.S. Department of the Treasury that states that the survey on Monthly Bank Lending showed outstanding loan balances were flat in May and that there was modest growth in new loan originations pending the 21 banks surveyed. The survey appears to counter claims by the TARP banks that they are in fact making loans. The press release likewise puts air into the claims by some that banks are shoring up their own balance sheets instead of lending or buying loans on the secondary market.

Alas… Lenders Catch Your Breath

LendingTree.com Launched a new website on Monday that seeks to assist their 200 some lending partners in getting loans closed (See Video Here). LendingTree clearly notes that while apps are up there are difficult times currently and ahead for lenders.

“I am from the Government and I am here to help you!”

In a move that seems to acknowledge the dire need the Implode-O-Meter Blog Reports a Housingwire.com item from July 20th, 2009 titled Fannie Mae Moves up Start Date for 125% LTV HARP Loans. The move by Fannie Mae is a direct result from the press release (and new urgency to curtail six million future foreclosures) from the U.S. Department of the Treasury, written testimony titled Stabilizing the Housing Market from Assistant Secretary for Financial Stability Herbert M. Allison dated July 16th, 2009.

Yet there appears to be no noted results that show the effect on the lending world post Citi buying loans on the secondary market other then FHFA has had the pleasure of stating that FHA loans now make up for 35% of the market.

Clearly from the Treasury Assistant Secretary’s press release the Chairwoman of the FDIC, S. Bair can take a deep sigh and if nothing else smile as the HAMP plan is based on her efforts (not to say we told you so but Table Talk With Apella has backed the Chairwoman from the start).

So the question remains, will the programs and efforts come in time to breathe new life in the lending industry? That still remains to be seen. One thing is for certain, as unemployment continues, foreclosures continues, continued home value depreciation and tightening lending requirements continue the difficulty for the lending world to breath will also continue.

Until the next post, thanks for reading and may we all just have the opportunity to catch a breather.