“Amid continued falling home prices, U.S. homebuyers are negotiating even more discounts at the bargaining table, according to July’s Zillow Real Estate Market Reports. Buyers paid 3.3 percent, or a nearly $7,039, less than the last listing price on homes for sale(1) during the month of July. That is down slightly from 3.5 percent, or [...]

Appraisal reports are not being transferred  by lenders. The Home Valuation Code of Conduct (‘HVCC’) passed by congress has stated that appraisals should be portable from one lender to another.  However, in practice this is not the case.  I recently experienced mortgage wholesaler CMG Mortgage not transfering an appraisal.  Today, I read that some mortgage lenders are refusing to [...]

Wall Street Journal (NY) (07/23/09) P. A6; Hagerty, James R. Fannie Mae and Freddie Mac have clarified their new appraisal code, noting that it compels mortgage lenders to use appraisers with experience in the geographic areas where they get assignments. Brokers have complained about a growing number of appraisers traveling outside the areas they know [...]

CNNMoney.com:  The National Association of Realtors reports that 17% of its members say they have recently lost one sale due to an appraisal coming in way below a purchase price, and 20% of members say they have lost more than one deal because of low appraisals.

American Society of Appraisers says in a letter dated July 1, 2009, to the Secretary of HUD that many qualified appraisers are declining to perform FHA assignments. This results from fee restrictions imposed by the FHA with Mortgagee Letter 97-46. This forces appraisal management companies to use less experienced and less qualified appraisers to perform FHA assignments. [...]