I got to catch up with Bob Dorsey, Chief Data and Analytics Officer of FNC which he is a co-founder.  Bob is a principal force behind their US residential housing price index that combines public record data and data collected from appraisal reports submitted to lenders.

The index takes a different approach than the primary indices already in use, namely Case Shiller, FHFA and NAR Existing Home Sales.  It’s an intriguing approach to refine the accuracy of measuring housing markets.

Last week I wrote a post on Matrix called [Shortsighted] Appraisal Institute Decides To Leave Appraisal Foundation where I expressed my frustration at the rift between The Appraisal Foundation and one of its sponsoring organizations, The Appraisal Institute.  I thought high drama was the purview of real estate brokers and economists.  The situation seemed to have morphed into a he-said, she-said type debate. I am concerned that in a time of unprecedented housing market turmoil we are left with no leadership as an industry and no ability to participate in the debate to shape our future.

To my surprise David C. Wilkes, Esq., CRE, FRICS, Chairman of The Appraisal Foundation commented:

Well balanced views and comments on the matter, Jonathan. I’m seeing quite a lot of misinformation and misstatements of the facts (in some cases amazingly far from the truth) among the online discussions and emails out there. I am happy to speak directly to any appraiser groups that may have concerns or questions and clear up any confusion.

Not able to let a podcast guest opportunity to pass me by, I reached out to David to have a conversation.  He agreed and I very much appreciated his candor and clarity.  Among his many accomplishments, David is

In this podcast David provides insights on The Appraisal Foundation, how it works, what this rift is about and how this situation could be resolved.

I will be extending an offer to the Appraisal Institute to present their views on this issue as well.

Think lender pressure on appraisers is a distant memory?  Think again.  Here is some commentary on a new report that indicates appraisal fraud is up 50% over the past year.  It is laid out in Kenneth Harney’s excellent column in the Washington Post.

“Despite 2009 restrictions, mortgage and appraisal fraud spiked”

I also provide commentary on a recent episode with a bank client we now refuse to work with who pressured our firm to raise the appraised value of a property or they would not pay us for services already rendered.

In fact, they didn’t really understand what they were saying.

Last month I spoke to and interviewed Tony Pistilli, a certified real estate appraiser on the Minnesota Department of Commerce Real Estate Appraiser Advisory Board.  He’s got a possible solution to the current appraiser – appraisal management company conflict.  Its all about conforming to RESPA and preventing banks from shifting the burden to appraisers to pay for bank compliance.

Its the first logical solution I’ve heard.  The banks are essentially making the appraiser pay for their RESPA compliance by taking it out of the appraiser’s fee, often 50% of the stated appraisal fee.  The consumer is being mislead by the appraisal fee stated by the lender at time of mortgage application.

• - Appraisers and borrowers are paying for services the banks receive, not the bank.
• - Banks should pay for the services received from the AMC’s who manage the appraisal process.
• - Appraiser’s fees should be market driven.
• - Banks should be held accountable for the quality of the appraisal.

He’s been spreading the word through all the channels/usual suspects in the blogosphere.  Here’s my original post, including his article:

[HVCC and AMCs Violate RESPA?] Here’s a possible solution

His views seemed to have been picked up by the Appraisal Institute, the largest appraisal trade organization in the US, in their letter to HUD looking for clarification on RESPA and the disclosure of fees paid by consumers.  Here’s the FAQ on the new RESPA rule.

Hugh Kelly joined me today for the podcast.  I’ve known Hugh for quite a while and greatly admire his insights.

Hugh is an Associate Clinical Professor of Real Estate in New York University’s Masters Degree Program in Real Estate Investment and Development. He heads his own consulting practice, Hugh F. Kelly Real Estate Economics, which serves national and international real estate investment and services firms, governmental organizations, law firms, and not-for-profit agencies. Prior to establishing this consultancy, he was chief economist for Landauer Associates, where he worked for 22 years until early 2001.

Hugh also serves as the President of the Board of Brooklyn Catholic Charities’ affordable housing development corporation, which has built and manages 3,000 units of low-income family, seniors, and special needs housing. He is a member of the Counselors of Real Estate, the National Association of Business Economists, and the American Philosophical Association. He has spoken to virtually every major real estate organization in the United States, as well as to audiences in Canada, the U.K., France, the Netherland, and Germany.

We served together on the New York City Council Finance Committee Economic Advisory Board and our firms have worked together on several consulting projects.

Hugh provides perspective on affordable housing, his recent Ground Zero consulting, MBA programs and their relationship to the credit crunch among others.  He’ll join me again in the near future to expand the discussion on affordable housing.

I had a “fantastic” conversation with Dr. Bill Rayburn who is the co-founder, Chairman & CEO of FNC, Inc. Their value proposition has been on collateral side of mortgage origination. He’s a fascinating industry leader who pulls no punches.

In this podcast I speak with Joseph Palumbo, SRA, Director of Valuation and Appraisal Management, Weichert Relocation Resources. He manages a nationwide vendor network and an in-house staff of certified review appraisers.

We talk relocation industry, USPAP, HVCC, today’s appraiser and finding $5 in both your pockets.

I spoke at length with Michael Falsetta, EVP of our commercial real estate valuation firm Miller Cicero, a 17 year expert on the Brooklyn new development space.

As a native Brooklynite, he’s got a lot to say about the most populous NYC borough.

He recently started a blog, 21Elephants.com covering the residential new development market in Brooklyn.

As an added bonus, I got some details about the world record for riding every mile of NYC subway system (in about 25 hours).

John Cicero has more than twenty five years of commercial real estate valuation experience and is my business partner and managing principal in our firm Miller Cicero, LLC, a commercial real estate appraisal firm covering the New York City region.

John talks cap rates, market trends of various types of commercial properties, his recent market report for Massey Knakal and the political movement in Albany that is of great concern to income property investors in New York state.

Don’t fret, John bifurcates everything to those outside the cap rate mainstream.