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| May 2003 |
A Publication of
ELLIOTT® & Company Appraisers |
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HUD Appraisal
Accountability Rule |
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The U.S. Department of Housing and Urban Development
(HUD) has issued a new rule earlier this year, requiring responsibility on
the lenders part for faulty appraisals.
“The proposed rule, FR-4722 Lender Accountability for
Appraisals, makes lenders accountable for the quality of appraisals
performed by the appraisers the lender hires,” according to the HUD Web
site. “This rule seeks to strengthen HUD’s regulations concerning the
responsibilities of lenders in the selection of appraisers to perform
appraisals on properties that will be security for FHA insured mortgages.”
The rule goes on to say that lenders who submit
appraisals to HUD that fail to meet FHA requirements could be sanctioned
by HUD’s Mortgagee Review Board.
So, what do YOU think of this rule? Is
it fair to lenders? Should the lenders be held accountable for the
mistakes of state certified appraisers who are specifically approved by
HUD prior to the lenders hiring of them to perform appraisals? Are some
lenders or brokers pressuring for inflated appraisals? If so, what should
be done about this?
E-mail your comments to the editor of this
newsletter at
kevin@elliottco.com. |
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Census Break
Downs Homeownership By Age Groups |
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 The U.S. Census bureau’s breakdown of the homeownership
category by age in this country is as follows: under 25 years – 22%; ages 25-29
– 38.9%; 30-34 – 56.5%; 35-39 – 64.6%; 40-44 – 70.8%; 45-49 – 75%; 50-54 –
78.3%; 55-59 – 80.7%; 60-64 – 82.4%; 65-69 – 82.3%; 70-74 – 81.7%; and 75 and
over – 78.4%.
The bureau reported a slight increase in homeownership in
the first quarter of 2003 compared to the fourth quarter of 2002 when it was
67.8 percent. Despite the soft economy this country has experienced in recent
years, the latest reported homeownership rate of 68% is the highest this country
has ever had. |
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House
Happenings |
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 Fannie
Mae has been pulling ahead of Freddie Mac in early 2003 as far
as acquisition of loans. In January and February, Fannie Mae
purchased over twice as much in loans as Freddie Mac, making it
Fannie Mae’s highest share between the two organizations in
decades. … Flipping is out; property flipping, that is. As of
June 2, the Federal Housing Administration will cease from
insuring single-family loans where the real estate involved has
been resold within 90 days. … Federal Reserve Board Chairman
Alan Greenspan has expressed concern over the capital adequacy
of Fannie Mae, Freddie Mac and other GSEs. “In the case of GSEs
and other large regulated financial institutions, funding
liquidity and market liquidity risks need to be considered,
given the significant roles these institutions play in market
functioning,” he wrote U.S. Rep. Richard Baker of Louisiana.
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Quotes
of Wisdom and Wit |
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“People demand freedom of speech to make up for freedom of
thought, which they avoid.”
– Soren Aabye Kierkegaard
“No man’s credit is as good as his money.”
– Edgar Watson Howe
“Money is better than poverty, if only for
financial reasons.” – Woody Allen
“If opportunity doesn’t knock, build a
door.” – Milton Berle
“Patriotism is not a short, frenzied
outburst of emotion, but the tranquil, steady dedication of a
lifetime.” – Adlai Stevenson
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ELLIOTT® & Company Appraisers
currently offers appraisal service throughout all 50 of the United
States. Clients are encouraged to place orders directly to any
office local to properties to be appraised or to the central office
for assignment.
Orders may
be placed via telephone, fax or through the company's Web site. All
Internet orders will be processed through the central office.
Some
Offices Are Independently Owned and Operated
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3316-A Battleground Avenue
Greensboro, NC 27410
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