My New Blog

Most of you are now being affected by the "soft market" requirements being implemented by the investors. I am going to provide you with some information you may want to pass on to your appraisers as many of them are getting really upset at what is being asked of them. PLEASE KNOW that this is being required by the investor, it is NOT something that we would be asking for otherwise. Almost every market is now being affected and being referred to as a "soft market" even if we don't think it is, so here is the verbiage I was given to pass along:

This is what an appraiser should put in their report if they can, if not, we need a detailed explanation as to why the requirements were not met and if it resulted in an adjustment to the property value.

* At least 2 comps MUST be verifiable through MLS as arms length transactions

* At least 2 comps that have closed WITHIN the last 90 days

* At least 1 active listing or pending sale MUST be provided

* Comps MUST be mapped on the appraisal

* Days on the market for the subject property and the comps MUST be provided (DOM for comps may not exceed the "Marketing Time" box checked by appraiser)

As you all know we are in a very difficult time with property values, and investors are really cracking down and requiring this. If we can avoid having to pull an AVM or order a review, then we should avoid it. MOST of them are coming back with reduced values, and sometimes very significant reductions in value. MI companies have already stopped providing MI on 100% financing as the values have started dropping, and we want to avoid having a borrower's transaction go sideways because their value comes in low. Thanks so much and please feel free to ask any questions you may have.