The Harris Company, Residential Appraiser-Appraisal Blog, 310.337.1973, Southern California, harris_curtis@sbcglobal.net

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FHA EXTENDS ‘ANTI-FLIPPING WAIVER’ TO HELP STABLIZE HOUSING MARKET:
Measure continues effort to boost home values and accelerate resale of vacant properties:

In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Federal Housing Administration (FHA) Commissioner David H. Stevens today extended FHA’s temporary waiver of the agency’s ‘anti-flipping rule.’ The extension announced today is intended to accelerate the resale of foreclosed upon homes in neighborhoods struggling to overcome possible property abandonment and blight.
With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. Early last year, FHA temporarily waived this regulation through January 31, 2011. FHA today posted a notice extending this waiver through the remainder of 2011. This action will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
“As I noted when we first announced this policy change early last year, because of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,” said Stevens. “Today I can report that this policy change has been effective. Since the original waiver went into effect on last February, FHA has insured more than 21,000 mortgages worth over $3.6 billion on properties resold within 90 days of acquisition.”
FHA research finds that in today’s market, acquiring, rehabilitating and reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.
Stevens added, “Because of past restrictions, FHA borrowers have often been shut out from buying affordable properties. This action enables our borrowers, especially first-time buyers, to take advantage of this opportunity and buy a home that has recently been rehabilitated. It will also help to move more foreclosed properties off the market and reduce the number of vacant homes in neighborhoods throughout this country.”
The extension announced today is effective through December 31, 2011, unless otherwise extended or withdrawn by FHA. All other terms of the waiver will remain the same, and HUD continues to invite public comment on it. The waiver contains strict conditions and guidelines to assure that predatory practices are not allowed.
To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver continues to be limited to those sales meeting the following general conditions:
• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Read the waiver: http://www.hud.gov/offices/hsg/sfh/currentwaiver.pdf

____________________________________________________________________________________________

Bulk subscriptions:
Some industry folks have asked, “How do I sign up my entire staff for FHA email updates?” It is easy… Just list your staff email addresses like this:
aaa@xyz.com
bbb@xyz.com
ccc@xyz.com

You can send in one email address or thousands. Email your list to: jerrold.h.mayer@hud.gov

If you have a mortgage or real estate industry friend who you want to subscribe to the national hoc reference guide mailing list, there are 3 other ways to sign up: 1. send them this link: http://www.hud.gov/offices/hsg/sfh/ref/hsgregst.cfm they can sign up for the email list there; or 2: forward them this email; or 3: Visit: http://www.usa.gov/ and subscribe at: http://apps.gsa.gov/FirstGovCommonSubscriptionService.php
To unsubscribe – go to: http://portal.hud.gov/portal/page/portal/HUD/subscribe/mailinglist and click on “National Homeownership Center Reference Guide” and follow the unsubscribe instructions on that page.
____________________________________________________________________________________________

For FHA technical support, please contact the FHA Resource Center: http://www.fhaoutreach.gov/FHAFAQ/ Search our online knowledge base and find answers to our most commonly asked questions. Use “live help” to get on-line technical support. You can also get email technical support at: info@fhaoutreach.com or phone FHA toll-free between 8:00 a.m. and 8:00 p.m. ET (5:00 a.m. to 5:00 p.m. PT) at: (800) CALLFHA or (800) 225-5342. Call FHA TDD at: (877) TDD-2HUD (877) 833-2483).

For all FHA publications visit HudClips at: http://www.hud.gov/offices/adm/hudclips/index.cfm You can order hardcopies at: http://www.hud.gov/offices/adm/dds/index.cfm You can also find all FHA forms on the HUDClips website at: http://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/hudclips/forms

You can find a directory of states that are serviced by the four FHA Homeownership Centers (HOC) on the web at: http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm

To find the FHA S/F Reference Guide on-line please visit: http://www.hud.gov/offices/hsg/sfh/ref/hsgrcont.cfm

Find out about FHA training by visiting our Events and Training calendar at: http://www.hud.gov/offices/hsg/sfh/events/events.cfm

Do you want to find out about current HUD Contracting Opportunities? To obtain a listing of the current opportunities please visit: http://portal.hud.gov/portal/page/portal/HUD/program_offices/cpo

Do you want to find out about career opportunities at HUD? Visit: http://www.usajobs.opm.gov/

Find out about grant opportunities by visiting HUD’s Funds Available website at: http://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/grants/fundsavail

For information on Presidentially Declared Disaster areas and to learn how HUD can help, please see: http://www.hud.gov/offices/hsg/sfh/nsc/disaster.cfm

This list does not provide HudHome property listings. To see the latest list of all HudHomes nationwide please visit: http://portal.hud.gov/portal/page/portal/HUD/topics/homes_for_sale

This list will often provide training opportunities and event announcements for non-profit and local government HUD partners. HUD does not endorse the organizations sponsoring linked websites, and we do not endorse the views they express or the products/services they or their community/business partners offer. For more information on HUD’s web policies please visit: http://www.hud.gov/assist/webpolicies.cfm

Thank you!!!
.

Thank you for subscribing to Mercury Network’s Appraisal Fee Reference(TM) report. We’ll send the updated reports to this e-mail address. Download the current report here: http://www.mercuryvmp.com/download2.php?f=alamode_MedianFeeReport.pdf

If you have any questions, don’t hesitate to send an e-mail to analytics@MercuryVMP.com or call 1-800-434-7260.

Sincerely,
Jennifer Miller
EVP, Product Management
a la mode, inc.

State Board of Equalization

Notice of Letters to Assessors

You have subscribed to the State Board of Equalization Notice of Letters to Assessors (LTAs).

LTA No. 2011/008 – Property Tax Information Directory, dated January 27, 2011, has been posted to our website.

It can be viewed at:

http://www.boe.ca.gov/proptaxes/pdf/lta11008.pdf

Selling Guide Announcement and Updates Issued

Fannie Mae has issued the following Announcement:
• SEL-2011-01: Selling Guide Updates
We have simultaneously incorporated the changes into the Selling Guide.
You can access the updated online and PDF versions of the Guide from the Selling and Servicing Guides page on eFannieMae.com.

Google drops real estate listings
Search giant cites low use, proliferation of search sites
Search giant Google will no longer support real estate listings uploaded to its classifed listings site on Google Maps, the company announced today.
Consumers will no longer be able to find for-sale, foreclosure, or rental properties through the search function on Google Maps, and real estate professionals will no longer be able to upload their listings to Google Base, the company’s classifieds site, which is being replaced by Google Shopping APIs and will not support real estate listings.
Read full story here.

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New FHA Mortgagee Letter:

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000
ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER
January 21, 2011
MORTGAGEE LETTER 2011-08
TO: ALL APPROVED MORTGAGEES
SUBJECT: FHA Single Family Insurance Claims Accounts Receivable Subsystem (ARS) Remittances: Pay.gov Implementation

The purpose of this mortgagee letter is to announce a change in the remittance process for over claimed amounts of FHA single family claims. This modification of the existing process is being made in response to the Department of the Treasury’s mandate for all agencies to switch from their current lockbox services to Treasury’s Pay.gov collection service…

To read this mortgagee letter and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ view the 2011 letters and click on the letter of your choice. Mortgagee Letters from previous years can be found on the same page.

AND

New Federal Register Notice:

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5411-N-08]
TITLE: Credit Watch Termination Initiative; Termination of Direct Endorsement (DE) Approval
AGENCY: Office of the Assistant Secretary for Housing–Federal Housing Commissioner, HUD.
ACTION: Notice.

SUMMARY: This notice advises of the cause and effect of termination of Direct Endorsement (DE) Approval taken by HUD’s Federal Housing Administration (FHA) against HUD-approved mortgagees through the FHA Credit Watch Termination Initiative. This notice includes a list of mortgagees which have had their DE Approval terminated…

To read this new Federal Register Notice in its entirety please visit: http://edocket.access.gpo.gov/2011/pdf/2011-1527.pdf

____________________________________________________________________________________________

Bulk subscriptions:
Some industry folks have asked, “How do I sign up my entire staff for FHA email updates?” It is easy… Just list your staff email addresses like this:
aaa@xyz.com
bbb@xyz.com
ccc@xyz.com

You can send in one email address or thousands. Email your list to: jerrold.h.mayer@hud.gov

If you have a mortgage or real estate industry friend who you want to subscribe to the national hoc reference guide mailing list, there are 3 other ways to sign up: 1. send them this link: http://www.hud.gov/offices/hsg/sfh/ref/hsgregst.cfm they can sign up for the email list there; or 2: forward them this email; or 3: Visit: http://www.usa.gov/ and subscribe at: http://apps.gsa.gov/FirstGovCommonSubscriptionService.php
To unsubscribe – go to: http://portal.hud.gov/portal/page/portal/HUD/subscribe/mailinglist and click on “National Homeownership Center Reference Guide” and follow the unsubscribe instructions on that page.
____________________________________________________________________________________________

For FHA technical support, please contact the FHA Resource Center: http://www.fhaoutreach.gov/FHAFAQ/ Search our online knowledge base and find answers to our most commonly asked questions. Use “live help” to get on-line technical support. You can also get email technical support at: info@fhaoutreach.com or phone FHA toll-free between 8:00 a.m. and 8:00 p.m. ET (5:00 a.m. to 5:00 p.m. PT) at: (800) CALLFHA or (800) 225-5342. Call FHA TDD at: (877) TDD-2HUD (877) 833-2483).

For all FHA publications visit HudClips at: http://www.hud.gov/offices/adm/hudclips/index.cfm You can order hardcopies at: http://www.hud.gov/offices/adm/dds/index.cfm You can also find all FHA forms on the HUDClips website at: http://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/hudclips/forms

You can find a directory of states that are serviced by the four FHA Homeownership Centers (HOC) on the web at: http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm

To find the FHA S/F Reference Guide on-line please visit: http://www.hud.gov/offices/hsg/sfh/ref/hsgrcont.cfm

Find out about FHA training by visiting our Events and Training calendar at: http://www.hud.gov/offices/hsg/sfh/events/events.cfm

Do you want to find out about current HUD Contracting Opportunities? To obtain a listing of the current opportunities please visit: http://portal.hud.gov/portal/page/portal/HUD/program_offices/cpo

Do you want to find out about career opportunities at HUD? Visit: http://www.usajobs.opm.gov/

Find out about grant opportunities by visiting HUD’s Funds Available website at: http://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/grants/fundsavail

For information on Presidentially Declared Disaster areas and to learn how HUD can help, please see: http://www.hud.gov/offices/hsg/sfh/nsc/disaster.cfm

This list does not provide HudHome property listings. To see the latest list of all HudHomes nationwide please visit: http://portal.hud.gov/hudportal/HUD?src=/topics/homes_for_sale

This list will often provide training opportunities and event announcements for non-profit and local government HUD partners. HUD does not endorse the organizations sponsoring linked websites, and we do not endorse the views they express or the products/services they or their community/business partners offer. For more information on HUD’s web policies please visit: http://www.hud.gov/assist/webpolicies.cfm

Thank you!!!
.

The next public meeting of the Appraiser Qualifications Board (AQB) is approaching. Please take the time to register for this meeting if you plan to attend.

Location:
InterContinental Tampa
4860 West Kennedy Blvd.
Tampa, FL 33609
Friday, February 25, 2011
9:00 a.m. – 12:00 p.m.

Meeting Agenda:
• Second Exposure Draft of Proposed Revisions to the Future Real Property Appraiser Qualification Criteria
• First Exposure Draft of Proposed Revisions to the Personal Property Appraiser Qualification Criteria
• Second Exposure Draft of an Interpretation to the Real Property Appraiser Qualification Criteria
• National Uniform Licensing and Certification Examinations
• Course Approval Program Activity
• Undergraduate Degree in Real Estate Review Program

Individuals who wish to address the AQB regarding any agenda item(s) are asked to submit a written request to the Chair outlining the agenda topic(s) to be addressed. These requests should be forwarded to The Appraisal Foundation, via email to magdalene@appraisalfoundation.org or fax to (202) 347-7727 to the attention of the AQB.

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New Notices for HUD Approved Housing Counseling Agencies on Client Management Systems:

With the completion of the FY10 annual 9902 reports and as we complete submitting the 1st quarter of the FY11 9902 reports, we noticed many agencies are still submitting their reports manually in HUD’s Housing Counseling System (HCS). You are reminded that you should use a Client Management System (CMS) that allows you to transmit your HUD data electronically into HCS. It is HUD’s directive for all agencies to submit their data electronically for FY11. Those using CounselorMax have the ability to do so now. Those using HCO by Fannie Mae will be able to do so shortly as Fannie Mae is working closely with us and is near completing their development. We have 13 other CMS already connected to HUD and a few more making progress.

HUD has noted that agencies with compliant CMS are still not submitting their data electronically. Please do so right away. Keep in mind that agencies should still access HCS to check their data and to validate their profiles. It is the agencies’ responsibility to push their CMS provider to comply with HUD requirements. Without you making demands to have their product compliant, the CMS development will drag on. Be reminded that your CMS should be at least using Agency Reporting Module (ARM) version 3.1 but every CMS should now be improving to version 4.0.

For more information on Client Management Systems please visit: http://www.hud.gov/offices/hsg/sfh/hcc/cms/index.cfm

AND

Two New Federal Register Notices:

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR- 5411-N-07]
TITLE: Credit Watch Termination Initiative Termination of Origination Approval Agreements
AGENCY: Office of the Assistant Secretary for Housing–Federal Housing Commissioner, HUD.
ACTION: Notice.

SUMMARY: This notice advises of the cause and effect of termination of Origination Approval Agreements taken by HUD’s Federal Housing Administration (FHA) against HUD-approved mortgagees through the FHA Credit Watch Termination Initiative. This notice includes a list of mortgagees which have had their Origination Approval Agreements terminated…

To read this new Federal Register Notice in its entirety please visit: http://edocket.access.gpo.gov/2011/pdf/2011-1360.pdf

AND

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5493-N-01]
Title: Mortgage and Loan Insurance Programs Under the National Housing Act–Debenture Interest Rates
AGENCY: Office of the Assistant Secretary for Housing–Federal Housing Commissioner, HUD.
ACTION: Notice.

SUMMARY: This notice announces changes in the interest rates to be paid on debentures issued with respect to a loan or mortgage insured by the Federal Housing Administration under the provisions of the National Housing Act (the Act)…

To read this new Federal Register Notice in its entirety please visit: http://edocket.access.gpo.gov/2011/pdf/2011-1358.pdf

AND

FHA Training:

January 25, 2011 – Webinar: FHA Refinance General Guidelines. Presenters will discuss Recent Updates, Streamline Refinances, “Cash-Out” & “Rate & Term” Refinances, as well as Refinances for Borrowers in a Negative Equity position. An emphasis will be places on changes to the Streamline Refinance guidelines. Registrants must have internet access. All times are MDT. Registration required, no fee. For more information: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=697&update=N

February 15, 2011 – Santa Ana, CA. Live Housing Counseling Training, “From the Nightmare to the American Dream”. This course covers the basics of how to be an effective counselor, (HUD, NeighborWorks/CalHFA minimum requirements) will give all participants a good description of the different resources available to First Time Homebuyers & how to get access to them (Down Payment Assistance, First Look, CHDAP, CalHFA & FHA financing, Self Help USDA financing, grants, WISH/IDA’s, subsidy assistance, etc) Additionally, this course will prepare counselors on how to coach borrowers & make them aware of the potential for a bundle of conditions the Real Estate market calls for, before a full approval & funding of a new first mortgage loan. Will also include basic information about how to establish strong partnerships, specially with non-profit developers, financial institutions, localities & real estate professionals. Finally it will also provide participants with Healthy Homes basics & the basic information on how your potential borrowers can acquire energy efficient new homes & how to get a rating for existing energy efficient retrofitted properties. Open to non-profit organizations or government entities. Registration required. To Register please visit: http://www.rcac.org/doc.aspx?708

February 15-16, 2011 – Oklahoma City, OK. Early Delinquency Servicing Activities & HUD’s Loss Mitigation Program Training. This training includes coverage of: HUD Handbook 4330.1 REV-5, Chapter 7, Delinquencies, Defaults, Mortgage Collection Activities & Initiation of Foreclosure & HUD’s Loss Mitigation Program. Additionally, overviews will be presented pertaining to Extension of Time Requests & Variances, Single Family Default Monitoring System. Registration required, no fee. For more information: http://www.hud.gov/offices/hsg/sfh/nsc/training.cfm

February 17, 2011 – FHA 203(k) Webinar. This FREE webinar will provide a review of qualifications and the application process for 203(k) consultants, provide update on policies & procedures and discuss eligible properties, possible uses of the 203(k) loan & appraisal reporting requirements. This webinar is intended for current & prospective 203(k) consultants, appraisers & underwriters. Registration required, no fee. All times are in MST. More info at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=709&update=N
February – March 2011 – Webinar Series on FHA Programs. Housing Counselors are invited to attend these webinars on FHA Mortgage programs. Presented by the FHA Santa Ana Homeownership Center. This series covers the different mortgage loan programs within FHA & how they may help the clients you serve when purchasing or refinancing a home. Registration required, no fee. More info at: http://www.hud.gov/offices/hsg/sfh/events/sca031111.pdf
____________________________________________________________________________________________

Bulk subscriptions:
Some industry folks have asked, “How do I sign up my entire staff for FHA email updates?” It is easy… Just list your staff email addresses like this:
aaa@xyz.com
bbb@xyz.com
ccc@xyz.com

You can send in one email address or thousands. Email your list to: jerrold.h.mayer@hud.gov

If you have a mortgage or real estate industry friend who you want to subscribe to the national hoc reference guide mailing list, there are 3 other ways to sign up: 1. send them this link: http://www.hud.gov/offices/hsg/sfh/ref/hsgregst.cfm they can sign up for the email list there; or 2: forward them this email; or 3: Visit: http://www.usa.gov/ and subscribe at: http://apps.gsa.gov/FirstGovCommonSubscriptionService.php
To unsubscribe – go to: http://portal.hud.gov/portal/page/portal/HUD/subscribe/mailinglist and click on “National Homeownership Center Reference Guide” and follow the unsubscribe instructions on that page.
____________________________________________________________________________________________

For FHA technical support, please contact the FHA Resource Center: http://www.fhaoutreach.gov/FHAFAQ/ Search our online knowledge base and find answers to our most commonly asked questions. Use “live help” to get on-line technical support. You can also get email technical support at: info@fhaoutreach.com or phone FHA toll-free between 8:00 a.m. and 8:00 p.m. ET (5:00 a.m. to 5:00 p.m. PT) at: (800) CALLFHA or (800) 225-5342. Call FHA TDD at: (877) TDD-2HUD (877) 833-2483).

For all FHA publications visit HudClips at: http://www.hud.gov/offices/adm/hudclips/index.cfm You can order hardcopies at: http://www.hud.gov/offices/adm/dds/index.cfm You can also find all FHA forms on the HUDClips website at: http://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/hudclips/forms

You can find a directory of states that are serviced by the four FHA Homeownership Centers (HOC) on the web at: http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm

To find the FHA S/F Reference Guide on-line please visit: http://www.hud.gov/offices/hsg/sfh/ref/hsgrcont.cfm

Find out about FHA training by visiting our Events and Training calendar at: http://www.hud.gov/offices/hsg/sfh/events/events.cfm

Do you want to find out about current HUD Contracting Opportunities? To obtain a listing of the current opportunities please visit: http://portal.hud.gov/portal/page/portal/HUD/program_offices/cpo

Do you want to find out about career opportunities at HUD? Visit: http://www.usajobs.opm.gov/

Find out about grant opportunities by visiting HUD’s Funds Available website at: http://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/grants/fundsavail

For information on Presidentially Declared Disaster areas and to learn how HUD can help, please see: http://www.hud.gov/offices/hsg/sfh/nsc/disaster.cfm

This list does not provide HudHome property listings. To see the latest list of all HudHomes nationwide please visit: http://portal.hud.gov/portal/page/portal/HUD/topics/homes_for_sale

This list will often provide training opportunities and event announcements for non-profit and local government HUD partners. HUD does not endorse the organizations sponsoring linked websites, and we do not endorse the views they express or the products/services they or their community/business partners offer. For more information on HUD’s web policies please visit: http://www.hud.gov/assist/webpolicies.cfm

Thank you!!!
.

New Appraisal Report: Measuring the Price Change in Local Single-Family Housing
HOUSTON, Texas (Jan. 24, 2011) — In today’s uncertain real estate market, does an accurate valuation of single-family housing require a new procedure?

The answer is yes, according to new research by Real Estate Professor Donald Epley at the University of South Alabama.

The report — titled “Measuring the Price Change in Local Single-Family Housing” — was funded in part by The Appraisers Research Foundation (TARF).

Dr. Epley introduces and explains a new procedure using complete population of sold properties.

The appraisal profession needs a new technique “for the accurate estimate of residential price appreciation that relies on the complete population of sales,” Epley states, “as opposed to a sample, using current technology to access courthouse records.”

Epley continues: “It should be theoretically correct, understandable, and require minimum expense to maintain in a typical appraisal office. Perhaps the most important step is to incorporate the new technology that exists even in smaller markets. Adopting this approach will emphasize to the public that the appraiser is an analyst of market trends used in the final estimate of value.” This research illustrates such a procedure.

In the new procedure, Epley explains, a municipal price change is estimated for the complete sales population, a second bracket price bracket trend is extracted for the subject property, and a third location price trend is extracted for the subject and comparable neighborhoods. The final price estimate is derived from all three concurrently. The adjustment used is justified by movements in the demand and supply conditions for the total community, the price range of the subject, and the location of the subject neighborhood.

In the report, Epley compares various techniques for the estimate of residential price appreciation, including repeat sales, hedonistic regression, medians and trimmed means.

Donald R. Epley PhD CCIM MAI is a Distinguished Professor of Real Estate and Director of the Center for Real Estate Studies at the University of South Alabama’s Mitchell College of Business in Mobile, Ala. He has served on the Education, Body of Knowledge, and Liaison Committees with the Appraisal Institute. He was elected as a Trustee to the Appraisal Foundation, was appointed to the Executive Committee, and served as Chair of the Publications Committee. He is Past President of the American Real Estate Society, and served a term as Editor of The Journal of Real Estate Research. He is the author or co-author of ten textbooks and more than 100 journal articles.

For a link to this study go to the Research Results page on The Appraisers Research Foundation’s website and click on: Identifying Sources of Local Changes in Residential Prices and How to Determine Which Source is Most Credible in Estimating the Current Value of Your Subject Property.

The Foundation is currently seeking proposals for research projects to fund. Topics of interest include:

• Trends in housing designs and demands.
• Conversion of big box properties.
• Changing consumer trends and the impact on property use and value.
• Provenance issues resulting from Internet sales of fine arts.

See all topics of interest

For information on applying for a research grant, go to the Foundation’s website at http://www.appraisersresearch.org/grants.

For more information on this report, contact the author at depley@usouthal.edu.

U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
WASHINGTON, DC 20410-8000
ASSISTANT SECRETARY FOR HOUSINGFEDERAL
HOUSING COMMISSIONER
www.hud.gov espanol.hud.gov
January 12, 2011
MORTGAGEE LETTER 2011-07
To: ALL APPROVED MORTGAGEES
ALL FHA ROSTER APPRAISERS
Subject: Elimination of the Master Appraisal Report (MAR)
Purpose of
Of this
Mortgagee
Letter
This Mortgagee Letter announces the elimination of the Master Appraisal
Report (MAR) as an acceptable appraisal reporting procedure in the valuation
of one to four unit single family properties to be security for Federal Housing
Administration (FHA) insured mortgages. Additionally, this Mortgagee
Letter retires forms HUD-91322 (MAR), HUD-91322.1 (MAR, Attachment
Number 1), HUD-91322.2 (MAR, Amendment) and HUD-91322.3
(Statement of Appraised Value) as well as HUD Handbook 4115.3, Master
Conditional Commitment Procedure.
Effective date As of January 12, 2011, no new case numbers may be assigned in which the
appraisal report is a MAR and any case numbers that have been previously
issued in connection with a MAR and which have not been assigned to a
specific individual property may not be used. For those cases numbers that
have been issued in connection with a MAR but not assigned to a specific
property, Mortgagees must obtain a new case number in the Case Number
Connection Screen in FHA Connection. In determining the maximum
mortgage amount for an individual unit within a larger housing project,
Mortgagees must ensure that each individual unit, which is to be security for a
FHA-insured mortgage, is appraised on an individual basis.
Background A MAR is comprised of forms HUD 91322 through 91322.3 and an
appraisal(s) performed on a model(s) within a Planned Unit Development
(PUD), Condominium or Subdivision. The MAR consists of value estimates
of individual unit/models; individual option(s) values and individual lot
2
values for premium lots. MARs may only be used for five or more lots/units in the same phase or project of a development and can only be used for proposed construction. Lenders may use reconsideration to alter values of one or more model or options or the entire MAR. Historically, lenders and builders have used MARs to reduce appraisal costs and loan processing times and achieve consistency in value for the same model.
Elimination of the MAR
Until the release of Mortgage Letter 2009-30, which reduced the validity period to 120 days for all appraisals performed for purposes of FHA-insured financing, MARs had a validity period of 1 year and this validity period could, in some cases, be extended for an additional year. The shortened appraisal validity period largely removed the advantages of using MARs. As
economic instability continues to impact many segments of the economy and the housing market in particular, the Department has determined that it is in the best interest of the Insurance Fund to prohibit the use of MARs and to require an appraisal be performed on each individual unit within a larger housing project to determine the maximum mortgage amount of the property to be security for the mortgage.
Information Collection Requirements
Paperwork reduction information collection requirements contained in this document are pending determination by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB Control Number 2502-0493. In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB Control Number.
Questions
If you have questions concerning this Mortgagee Letter, please call the FHA Resource Center at 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number via TDD/TTY by calling 1-877-TDD-2HUD (1-877-833-2483).
Signature
___________________________________________________
David H. Stevens
Assistant Secretary for Housing-Federal Housing Commissioner