[Editor's Note: I've been taking a little time off from Appraisal Scoop and so apologize for not keeping up with the "normal" flow of articles. This article by Bryan Reynolds is a little late getting posted but is still great food-for-thought!] Celebrate Appraisers Independence, Not Yet!!! by Bryan S. Reynolds, AQB Certified USPAP Instructor The 4th of July is around the corner and millions of Americans will celebrate their Independence. However should the appraiser be celebrating their appraiser independence as a result of the HVCC or any other pending or proposed legislation? Although the number of requests to “hit the number” may be fading, appraisers are certainly shackled by the client dictating requirements many of which are unreasonable and unfounded. Yet when clients demand appraisers to jump it appears many appraisers typical response is How High? It's time for appraisers to stand up, become truly independent and learn to say no! Let’s have the tail quit wagging the dog. When you are asked to do something you should not do or something perverse have the courage and backbone to say no. Recently I appraised a property on 13 acres with a portion of the site being in a flood hazard zone. The client received a flood certification indicating the improvement was not located in the flood zone. After repeated requests, which turned into demands, to have me change the first page of the URAR to check the box no under flood zone I was successful in speaking directly to the underwriter. If you get to speak with the underwriter I have found most are pretty reasonable people. After providing her with the Fannie Mae Guideline, as listed below, she said thank you and nothing further was needed from me. Special Flood Hazard Areas Fannie Mae’s appraisal report forms provide an area for the appraiser to indicate whether the property is located in a Special Flood Hazard Area that is identified on the Federal Emergency Management Agency’s (FEMA) Flood Insurance...

Note: the BLS started keeping state records in 1976. From the BLS: Michigan again reported the highest jobless rate, 15.2 percent, in June. (The last state to have an unemployment rate of 15.0 percent or higher was West Virginia in March 1984.) The states with the next highest rates were Rhode Island, 12.4 percent; Oregon, 12.2 percent; South Carolina, 12.1 percent; Nevada, 12.0 percent; California, 11.6 percent; Ohio, 11.1 percent; and North Carolina, 11.0 percent. The Nevada, Rhode Island, and South Carolina rates were the highest on record for those states. Florida, at 10.6 percent, Georgia, at 10.1 percent, and Delaware, at 8.4 percent, also posted series highs .

Earnings season continues to be on a solid track with upside surprises from IBM, GOOG, BAC, GE, and MAT. However, if we refer to Q2 reports as Revenue season in terms of gauging economic activity, the quarter so far from companies that have reported is more of a mixed bag. The discrepancy is similar to what we saw in Q with a majority of companies beating EPS estimates but missing revenue estimates. It’s a tribute to corporate America’s ability to keep a lid on costs and improve margins but also highlights the tough economic environment. Most importantly, guidance on the economic outlook remains cautiously optimistic. June Housing Starts are expected to total 530k, little changed with May but still above the record low of 454k in April. In terms of a market that still has too much inventory, let’s root for less starts and permits. The sustainability of any US recovery still comes down to home prices and the consumer.

Mortgage defaults in Florida are nothing new. Even my four-year old niece is aware that there is a problem with condos in Miami. However a call from a friend prompted a closer look. This fellow owns a house in a 600 home gated community in Collier County FL. This place has all the amenities and has been around for fifteen years. Two years ago the minimum house price was $1mm and the max was $3mm. Because of the relative age and stability of the resident members it was believed that values would not be impacted as they were in newer and more speculative communities.