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Brian Coester, Coester Appraisal Group

The Uniform Collateral Data Portal (UCDP) and Uniform Appraisal Dataset (UAD) deadlines are right around the corner and with the constant changes in appraisal regulations over the past years it’s easy to get lost in it all and just say ‘My Appraisal Management Company is taking care of this.’

The reality is — with these new UCDP and UAD changes, the updates are probably not being handled properly and you are probably not ready for the changes; changes that are taking effect December 1, 2011.

The UCDP is a part of Fannie Mae and Freddie Mac’s Loan Quality Initiative (LQI) that started these programs over two years ago under the Collateral Data Delivery (CDD) program. Brian Coester, CEO of Coester Appraisal Group, has been conducting presentations and educational seminars for local Mortgage Bankers Associations (MBAs) around the country. Coester expressed his shock at the lack of preparation by both Appraisal Management Companies (AMCs) and lenders. “We had six AMCs at our last MBA seminar and none of them had any idea about what was going on nor were they registered to handle the files for their clients. We’ve been preparing for this for more than a year and it’s shocking that a such a big change would go unnoticed or unaccounted for."

Coester also warns that lenders are still unprepared and a Wells Fargo correspondent rep at one of the UCDP seminars confirmed this. Coester states, "The reps have indicated their correspondents are just getting around to looking at this. The problem arises because the time it takes to register and get what you need set-up and done, is 7-10 business days. Now they are telling people 20 business days, which falls just before the December 1, 2011 transition date. If lenders don’t jump on this they may not be able to close loans or sell loans at all.” Fannie Mae and Freddie Mac require registering for the UCDP which most lenders have not yet completed. “They think they don’t have to register or aren’t going to be held responsible for this. Most of the feedback though, is that they their investor would be handling this; the reality is that’s not the case." says Brian Coester.

Coester is fully registered for the UCDP and will be handling the complete end-to-end delivery, review, and submission files for its clients. "With us it’s pretty simple: login to the UCDP portal, type in our name, add us a Lender Agent, and you’re done. Very few companies will be able to say that it was that easy for them and we are glad we can help our clients." says Brian Coester. Coester admits that he has been working on the project for over a year now.

About Coester Appraisal Group:

Coester Appraisal Group is a nationwide Appraisal Management Company specializing in high quality appraisal reports that comply with all industry guidelines and regulations. With its headquarters in Rockville, Maryland, Coester Appraisal Group was founded in 1970 as a local appraisal company but has since developed into a formidable force in the appraisal management segment. For more information, please visit Coester Appraisal Group online at http://www.CoesterAppraisals.com.

 

 

 

 

 

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Kenneth Harney via Washington Post

When you apply for a mortgage to buy a house, how often does the lender ask detailed questions about monthly energy costs or tell the appraiser to factor in the energy-efficiency features of the house when coming up with a value?

Hardly ever. That’s because the big three mortgage players — Fannie Mae, Freddie Mac and the Federal Housing Administration, who together account for more than 90 percent of all loan volume — typically don’t consider energy costs in underwriting. Yet utility bills can be larger annual cash drains than property taxes or insurance — key items in standard underwriting — and can seriously affect a family’s ability to afford a house.

A new, bipartisan effort on Capitol Hill could change all this dramatically and for the first time put energy costs and savings squarely into standard mortgage underwriting equations. A bill introduced Oct. 20 would force the big three mortgage agencies to take account of energy costs in every loan they insure, guarantee or buy. It would also require them to instruct appraisers to adjust their property valuations upward when accurate data on energy efficiency savings are available.

Titled the SAVE Act (Sensible Accounting to Value Energy), the bill is jointly sponsored by Sens. Michael Bennet (D-Colo.) and Johnny Isakson (R-Ga.). Here’s how it would work: Along with the traditional principal, interest, taxes and insurance (PITI) calculations, estimated energy-consumption expenses for the house would be included as a mandatory underwriting factor.

For most houses that have not undergone independent energy audits, loan officers would be required to pull data from either previous utility bills — in the case of refinancings — or from an Energy Department survey database to arrive at an estimated cost. This would then be factored into the debt-to-income ratios that lenders already use to determine whether a borrower can afford the monthly costs of the mortgage. Allowable ratios probably would be adjusted to account for the new energy/utilities component.

For houses with significant energy-efficiency improvements built in and documented with a professional audit, such as a home energy rating system study, lenders would instruct appraisers to calculate the net present value of monthly energy savings — i.e., what that stream of future savings is worth today in terms of market price — and adjust the final appraised value accordingly. This higher valuation, in turn, could be used to justify a higher mortgage amount.

For example, Kateri Callahan, president of the Alliance to Save Energy, a nonprofit advocacy group and a major supporter of the new legislation, estimates that a typical new home that is 30 percent more energy efficient than a similar-sized, average house will save about $20,000 in utility expenses over the life of a mortgage. Under the Bennet-Isakson bill, appraisers would be required to add those savings to the current market valuation of the house. In this instance, Callahan says, the increase in value would be about $10,000.

Dozens of housing, energy and environmental groups have endorsed the new legislation including appraisers, large home builders, the U.S. Chamber of Commerce, the U.S. Green Building Council, the Natural Resources Defense Council, green-designated real estate brokers, the Institute for Market Transformation and the National Association of State Energy Officials, among others.

Business groups such as the U.S. Chamber are backing the legislation because they see it as an employment generator that requires no federal budget outlays, no new taxes or programs. A joint study by the American Council for an Energy-Efficient Economy and the Institute for Market Transformation estimated that 83,000 new jobs in the construction, renovation and manufacturing industries could be stimulated by the legislation if the new underwriting rules were phased in over a period of years.

But not all interest groups are lining up behind the bill. The National Association of Realtors expressed concern that it might hamper a real estate recovery by complicating the mortgage process. “NAR supports efforts to promote energy-efficiency in housing and believes it’s something that all consumers should strive toward,” the group said. “However, we believe that homeowners should move toward energy efficiency at their own pace, without a mandate that impedes their ability to qualify for a mortgage or causes them to incur substantial additional costs to purchase a home, especially while the housing market continues to recover.”

Another group whose members and clients could be affected by the bill, the Mortgage Bankers Association, declined to comment for the record, saying it is still evaluating the bill’s provisions.

But one might ask: In a fractious, polarized Congress, could this bill actually make it through this session? The co-sponsors are optimistic and supporting groups say there is substantial bipartisan support — a rarity — for the idea in both the House and Senate.

In the meantime, for homeowners who think their energy-efficiency and cost-saving improvements should be worth something, there is no rule barring you from asking a qualified appraiser or a lender to assess the added market value of those features. You can get your house rated and documented and insist they do precisely that.

Or you can invest in documented improvements that save on utility expenses — a worthy goal in its own right — and hope that the federal agencies see the light and change their underwriting and valuation procedures before you go to sell. Sooner or later, this is going to happen.

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Daniel Fisher, Forbes.com

The media business must be nerve-wracking, what with its up-and-down fortunes and constant threat of being outflanked by the next iPad-delivered Internet service. Maybe that explains why Liberty Media’s John Malone pours so much of his extra cash into land.

Earlier this year Malone passed fellow media mogul Ted Turner to become America’s Biggest Landowner with 2.2 million acres, thanks to a giant investment in New England timberland. It capped a quick ascent for the cable-television magnate, who joined the list of the nation’s land barons last year, shoving aside ranchers and timber magnates, some of whom have owned their acreage for generations. He entered the list at No. 5 after buying New Mexico’s 453-square-mile Bell Ranch in 2010, then passed Turner earlier this year after buying 1 million acres in New Hampshire and Maine from private equity firm GMO Renewable Resources.

Malone blamed heritage, not nerves, for his love of the asset whose supply will never increase. As he told Forbes writer Monte Burke in March: “My wife says it’s the Irish gene. A certain land hunger comes from being denied property ownership for so many generations.” Turner, contacted by The Land Report magazine for its annual list of the nation’s largest landowners, said he was happy to hand over the title. “I consider John a good friend and have great respect for him,” Turner said.

This list of powerful landowners is compiled by Land Report researchers with the assistance of Fay Ranches, a Western land brokerage, the list includes the usual family timber dynasties as well as the owners of the King Ranch in Texas , once considered unimaginably huge but now, at 911,000 acres dwarfed by the holdings of Turner and Malone.

No. 2, of course, is Turner, the CNN founder who began buying ranches in the 1970s and now controls 2 million acres in New Mexico, Colorado , Montana , Florida and several other states. If $1 billion separates the men from the boys in terms of raw wealth, the new land barons can judge themselves by the number of Rhode Islands they own. Turner has almost three, including the spectacular Vermejo Park Ranch straddling the border of New Mexico and Colorado which is nearly as large as the Ocean State all by itself. Malone credits his fellow media magnate for giving him “this land-buying disease.”

At his customary spot in the Top 5 at No. 3 is Archie “Red” Emmerson, whose Sierra Pacific Industries boosted its holdings to almost 1.9 million acres this year. The forest products company , now entering its third generation of Emmerson management, is the second largest U.S. timber producer and works closely with the U.S. Fish and Wildlife Service to preserve species on its land. Emmerson and his father, Curly, began their march into the ranks of big time landowners in 1949 when they leased a California sawmill. Emmerson later borrowed $460 million to buy 522,000 acres in northern California, holdings that have since spread into Washington .

At No. 4 is recent entrant Brad Kelley, a Tennessee cigarette magnate who poured the profit from the $1 billion sale of his company into 1.7 million acres of land in Florida, Texas and New Mexico. Below him by half a million acres is the Irving family of Canada, who own a little less than 1/20th of the state of Maine (plus a bunch more in Canada). The descendants of thrifty Scottish immigrants, the Irving’s are in lumber for the long haul; they’ll plant some 28 million seedlings in their forests this year.

Here are America’s five largest landowners:

#5 Irving family Owns: 1.2 million acres in Maine.

These Canadian descendants of a Scottish sawmill operator are secretive and all business. They’ve amassed roughly a 20th of the state of Maine and will plant 28 million seedlings this year to keep the timber coming.

#4 Brad Kelley Owns: 1.7 million acres in Texas, New Mexico and Florida

This Nashville, Tenn., farmer’s son sold his Commonwealth Brands cigarette company for $1 billion in 2001 and began investing in land. Big time. The Land Report estimates the tightlipped Kelley owns 1.7 million acres. Most recently he’s reported to have bulked up his holdings with ranchland in the Big Bend region of Texas.

#3 Archie "Red" Emmerson Owns: 1.87 million acres in California and Washington

In 1949 Emmerson and his father, Curly, leased a sawmill and built the business into Sierra Pacific Industries. Red borrowed $460 million to buy 522,000 acres in California, a position since increased to almost 2 million acres. When he was briefly the nation’s largest private landowner, Red joked that Ted Turner "will probably go out and buy more land." He was right, but Emmerson is close behind.

#2 Ted Turner Owns: 2 million acres in New Mexico, Colorado, Montana , Florida and several other states.

An ardent conservationist, Turner began buying ranches in the 1970s and revived the nation’s bison herd to 55,000 head on his ranches across the upper Great Plains. No regrets about losing the title as the nation’s No. 1 land baron to John Malone: "I consider John a good friend and have great respect for him," Turner said.

#1 John Malone Owns: 2.2 million acres in Colorado, New Mexico, Wyoming, Maine and New Hampshire.

The cable-television billionaire was outed as one of the nation’s largest property owners by The Land Report two years ago and dramatically increased his holdings last year with the purchase of New Mexico’s 453-square-mile Bell Ranch. Now he passes longtime No. 1 Ted Turner with the purchase of 1 million acres of timberland in New Hampshire and Maine from an investment firm.

 

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Evan Nemeroff, National Mortgage News

A whistleblower lawsuit filed by two mortgage brokers has been unsealed in Federal District Court in Atlanta claiming that 13 banks and mortgage companies have cheated veterans out of hundreds of millions of dollars.

According to the lawsuit, lenders allegedly hid illegal fees in veterans’ home mortgage refinancing transactions related to the Interest Rate Reduction Refinancing Loans program. This program was created to allow veterans to take advantage of low interest rates and protect them from paying excessive fees and charges in the refinancing transaction.

The lawsuit claims that the lenders repeatedly violated the rules of the IRRRL program by charging veterans unallowable fees and then deliberately concealing this information from the VA to obtain taxpayer-backed guarantees for the loans. The lenders also allegedly falsely certified to the VA, in writing, that they were not charging unallowable fees.

In the lawsuit, the brokers are claiming that the lenders have been fraudulently reporting on HUD-1 statement forms undisclosed attorneys fees and other unallowable fees on the line for the actual cost of title examination and title search. The lawsuit says that lenders are reportedly charging $525 to $1,200 for title examination and title search fees, when the total cost should only amount to $125 to $200.

Lenders are permitted to charge veterans for recording fees and taxes, fees for a credit report and other “reasonable and customary amounts,” according to VA rules, but cannot charge attorneys’ fees or settlement closing fees in refinancing transactions involving VA loans.

“The false statements and fraudulent conduct are blatant,” said Marlan Wilbanks, co-lead counsel in this whistleblower case. “The banks simply reduced the charges for unallowable fees to zero, and then added those fees in the spaces where allowable fees were to be shown. Veterans don’t know what the usual and customary charges for those allowable fees are, and the VA understandably relied upon the banks to comply with VA regulations, rather than digging into every loan transaction. The banks took advantage of that reliance to cheat veterans and taxpayers.”

Since 2001, the VA has guaranteed over 1.1 million IRRRL loans. According to the Office of Inspector General for the Department of Veterans Affairs, the nationwide default rate for IRRRLs is 18% or more, with approximately more than 100,000 loans going into default every year. Nearly half of the VA loans that default result in foreclosure proceedings, costing the VA about $22,000 for each loan and also massive damages for American taxpayers and veterans.

Under the False Claims Act, the lenders would be liable for all damages resulting from those fraudulently induced guarantees of IRRRL loans, as well as penalties of up to $11,000 for each violation of the act.

The defendants in this case include Wells Fargo, Countrywide Home Loans, Bank of America, JPMorgan Chase, Mortgage Investors Corp., PNC Bank, First Tennessee Bank National Association, Irwin Mortgage Corp., SunTrust Mortgage, New Freedom Mortgage Corp., GMAC Mortgage and Citimortgage,

“This is a massive fraud on the American taxpayers and American veterans,” said James Butler Jr., co-lead counsel of the Atlanta law firm Butler, Wooten and Fryhofer. “Knowing they weren’t allowed to charge the fees, the banks and mortgage companies inflated allowable charges to hide these illegal without telling the veterans who were the borrowers or the VA they were doing so.”

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Jon Prior, Housing Wire

Roughly 150 protesters gathered at the Hyatt Regency in Chicago Monday afternoon, protesting the Mortgage Bankers Association as some of the the trade group’s members looked on and snapped photos.

Thousands more from various groups organized around the city, including Daley Plaza and Federal Plaza. A pastor from a nearby suburb who identified himself as Russell, arrived at the Hyatt and picked up a sign from the Southsiders Organized for Unity and Liberation. It was a cardboard cutout of JPMorgan Chase (JPM: 32.40+4.38%) CEO Jamie Dimon that read: "Wall Street Bank Robber."

The likenesses of Bank of America‘s (BAC: 6.54 +8.46%) Brian Moynihan, Countrywide‘s Angelo Mozilo and others were also seen bouncing above the chants and a marching band.

"Of my congregation of 270, about 30% are facing foreclosure," Russell said. "They come to me and my church, and we organize them and try to direct them to all the available programs and mediation sessions. But the banks continue to undermine that."

While Russell said SOUL and other community groups have been organizing protests since 2005, the recent uprising from Occupy Wall Street and other areas rejuvenated them to try and catch a more unified wave of dissent.

A SOUL organizer, who called himself Toby, made some final preparations for his speech through the megaphone. Even some curious MBA members gathered nearby on the hotel steps behind security to watch the crowd and listen to Toby.

"While we are out here desperately looking for jobs, they’re in there trying to figure out how to make more money off of us," he yelled into the megaphone.

One mortgage banker, who wouldn’t give her name, shook her head. "This is the wrong place to do this. We’re trying to figure out how to help them."

Others were more critical. Another banker pointed out to his colleague different union members he thought he saw in the crowd. Another scolded some protesters for bringing their children to the rally.

One technology vendor, who wouldn’t be identified, said he was sympathetic and that some previous members of this very trade group "got away scot-free."

"There’s just no jobs," he said. "What would you do?"

Another banker, who also wouldn’t give his name, said the recent wave of protests was even routine. Coming out of crises and recessions, there is always a wave of descent before the eventual recovery.

The MBA itself put out a statement Monday morning in advance of the protest, highlighting the 3,000 members who assembled in Chicago to revamp the U.S. housing system.

"We all recognize that our industry faces a trust deficit with policymakers and the public and that people in our industry contributed to the events that led to the financial crisis," the MBA said. "The mortgage professionals who have gathered in Chicago this week are about sustainable homeownership and ensuring access to affordable mortgage credit for qualified borrowers."

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Level Architects: House with Slide[s]

via Design Boom


‘house with slide’ by level architects | all images courtesy level architects

Yokohoma-based atelier level architects has completed ‘house with slide’, a three-story family residence that features a continuous circulation route that utilizes both stairs and the playground equipment. Circumscribing the volume of the house, the playful layout places the living spaces at the core of the house with a number of access points along the course.


living area on the second level

Since the circulation is placed at the outer edge of the design, the interior is largely lit using
vertical openings in the roof. a centrally-placed courtyard with sliding glass doors illuminate
the living room with natural daylight while creating a small play area for the children of the house.
rounded corners of the layout encourages the light to wash around edges to further light the space.


slide exit into the living space


(left) stairs up to the top of the slide

(right) slide

third floor hall way connecting the stairs and slide


living room with light courtyard


(left) light courtyard

(right) washroom with roof light

entrance and slide exit to the right


(left) library

(right) slide and hallway

exterior


circulation diagram

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Homes of the Future!

A Look Ahead at New Homes of 2015

By Erika Riggs, Zillow

If you had asked someone in the 1960s what the home of 2015 would look like, chances are they imagined something akin to The Jetsons’ home complete with Rosie the Robot and other space-age appliances that dressed and fed the family.

But, rather than space-age technology, the biggest thing that is expected to change in future single-family homes is the size.

“Homes will get smaller,” says Stephen Melman, Director of Economic Services at the National Association of Home Builders (NAHB) in Washington D.C. “We asked builders, ‘what do you anticipate the new home size would be by 2015?’ ”

According to the results of the study, surveyed home builders expect new single-family homes to check in at an average of 2,150 square feet. Current single family homes measure around 2,400 square feet, which is already a decrease from the peak home size in 2007 of 2,521.

While the decrease in home size has a lot to do with the recession, many believe that the real estate changes will stick around even after the economy and home values get back on solid ground.

z_greatroom_v2

This Sherman Oaks, CA home has a great room, encompassing dining, living and family rooms.
Photo: Zillow

“Although affordability is driving these decisions, smaller homes are a positive for builders,” said Melman. “It allows for more creative design, more amenities, better flow. It’s an opportunity to deliver a better home.”

z_control4-7-screen_v2

Home digital control panels can help manage security and energy consumption.
Photo: Control4

Other things that make up the home of 2015? No more living room. According to the survey, 52 percent of builders expect the living room to merge with other spaces and 30 percent believe that it will vanish completely to save on square footage. Instead, expect to see great rooms — a space that combines the family and living room and flows into the kitchen.

Expect to see more:

  • spacious laundry rooms
  • master suite walk-in closets
  • porches
  • eat-in kitchens
  • two-car garages
  • ceiling fans

Expect to see less:

  • mudrooms
  • formal dining rooms
  • four bedrooms or more
  • media or hobby rooms
  • skylights

Many of these changes reflect a desire for builders and consumers going green. Smaller space means more efficient heating and cooling. Ceiling fans distribute heat evenly while skylights, on the other hand, release heat.

However, as builders look to go green, they’ll be installing energy-efficient windows and compact fluorescent and LED lighting, as well as water-efficient appliances and plumbing.

Additionally, many new homes will have the baby boomer population in mind with walk-in showers, ground-floor master bedrooms and grab bars.

“A bigger share of the new homes will be purchased by people 55 or 65 and older,” said Melman. “They’re more likely to have more cash for a down payment, but they’re empty nesters, so they don’t need five bedrooms.”

 

 

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By Matt Sailor, How Stuff Works

After huge upheavals in the housing market throughout the 2000s, the market showed signs of leveling off by late 2010 and early 2011. Still, despite hopeful economic indicators, as of 2011 a full third of all houses on the market were distressed properties — those whose owners have defaulted or are about to default on their mortgages . Largely because of desperation on the part of the owners of these properties, and their lenders, distressed homes can be much cheaper than comparable homes for sale. There are a few basic types of distressed properties.

In a short sale, a property is headed for foreclosure, and the owner of the home tries to sell the house for lower than what is owed on the mortgage. The lender takes a hit on the price to avoid foreclosure and cut its losses. When prices in the area have plummeted so far that it would be nearly impossible to sell the house for the value of the mortgage, short sales give lenders and homeowners a way out of the loan agreement.

At a foreclosure auction, banks and other lenders auction off properties that have been repossessed from owners who defaulted on their mortgage loans. Auctions are held at public facilities like courthouses and are best left to investors with large amounts of cash to spend. Individual buyers should usually steer clear, since all bids have to be backed up with a check in-hand for the entire sale price . Even more frightening is the fact that houses at auction are usually purchased site unseen.

An REO (real estate owned) foreclosure is what people are usually talking about when they describe a property as a "foreclosure." This is a bank- or lender-owned home that you purchase directly from the lender in a process similar to typical home sales.

All distressed properties have the same basic advantages and disadvantages. On the plus side, a distressed home will typically be priced significantly lower than it would be sold for if it weren’t distressed . But these houses won’t necessarily be dirt cheap. Widespread foreclosures drive down prices of non-distressed homes, so you might not need to seek out distressed homes to get a bargain . On the down side, distressed homes take more time and effort at virtually every stage of the process, require a large amount of paperwork and frequently need major repairs . Read on to learn when you should go for it, and when you shouldn’t, when it comes to distressed property purchases.

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