by Bill McBride on 12/01/2014 09:09:00 PM
Monday, December 01, 2014
Oh no! From the WSJ: Dodgy Home Appraisals Are Making a Comeback
An estimated one in seven appraisals conducted from 2011 through early 2014 inflated home values by 20% or more, according to data provided to The Wall Street Journal by Digital Risk Analytics, a subsidiary of Digital Risk LLC. The mortgage-analysis and consulting firm based in Maitland, Fla., was hired by some of the 20 largest lenders to review their loan files.During the bubble, the appraiser always seemed to "hit the number" - no matter how crazy. I haven't seen anything like that in my area.
The firm reviewed more than 200,000 mortgages, parsing the homes’ appraised values and other information, including the properties’ sizes and similar homes sold in the areas at the times. The review was conducted using the firm’s software and staff appraisers.
Bankers, appraisers and federal officials in interviews said inflated appraisals are becoming more widespread as the recovery in the housing market cools.
• All day, Light vehicle sales for November. The consensus is for light vehicle sales to increase to 16.5 million SAAR in November from 16.3 million in October (Seasonally Adjusted Annual Rate).
• At 10:00 AM ET, Construction Spending for October. The consensus is for a 0.5% increase in construction spending.
Posted by Bill McBride on 12/01/2014 09:09:00 PM