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March 2, 2004  
WaMu pares down appraisal staff

 

We read with interest a
report last month that Washington Mutual had made a round of job cuts that significantly touched the top-volume lender's appraisal division. We confirmed through Washington Mutual spokesperson Adrian Rodriguez last week that about 200 have been relieved from the lender's nationwide appraisal staff, leaving the department at a little over 500.

Also no longer with WaMu is First Vice President and Chief Appraiser Sue Potteiger. Potteiger, a member of the Appraisal Institute Residential Database Board of Directors, championed the development of OptisValue at WaMu, the AI Ready interface powered by FNC, Inc.'s Collateral Management System. Rodriguez was not at liberty to discuss the terms of her departure.

Rodriguez stressed that WaMu is still very committed to the home loan process. It is unclear whether Potteiger's and 200 appraisal staff's departure will have an impact on the data-aggregating valuation system WaMu has used.

Why Wi-fi? Because it's scary easy

Return with us now to those thrilling days of yesteryear — 1997! Back then, we brought the industry's first EDI servers online, and people said we'd taken leave of our senses. Printing reports, taping maps and photos to template pages, photocopying and faxing to clients was a cumbersome process but it was a familiar cumbersome process. Besides, a prescient argument went, brokers and loan officers would be reluctant to go for "e-mailed" reports.

It did take time to go from 2,000 appraisals routed through our Project 2000 EDI servers that first month in 1997 to the two million per month they handle now, and a lot of clients still haven't cut the fax line cord. But appraisers have two main features, we think you'll agree: They're skeptical, and therefore clinical and dogged in their evaluation of something; and they'll try just about anything that will let them turn reports around more quickly. Wireless technology certainly does that.

Everyday wireless applications and field tools abound. The problem was that originally, these tools were developed for computer experts who happened to be away from the office. Certainly not for people who had jobs, and therefore no time to get an associate's degree in computer science. Happily, the times they are a'changin'. Today, "plug and play" really means plug it in, and you're ready to play.

Wireless technology, commonly referred to as Wi-Fi, is no longer for just the gadget geeks and early adopters. If you have a cell phone, you can get high speed Internet in the field. Pocket PCs with Wi-Fi cards that give you field Internet access combined with other important timesaving functions to deserve a serious look, even for the Wi-Fi shy.

This very minute there are appraisers who are sitting in their cars reading this newsletter. No, they're more likely sending their reports and sketches and handwritten notes from their Pocket PCs to their laptops. Those same appraisers are then downloading their location and flood maps, selecting, sizing and placing their subject photos, and putting the final touches on the sketch. That being done the notes are saved in the workfile, the report e-mailed to the office, the car put in drive and it's off to the next stop. We could have sold that ten years ago as a plot line for a sci-fi movie. Now, it's the workflow of many Wi-Fi-enabled appraisers. (Field tools that save you time and don't break the bank was the impetus for our development of Pocket TOTAL. Pocket TOTAL on your Pocket PC literally saves you 30 minutes per appraisal. And it doesn't take an advanced degree to use.)

But what about price? It's one thing for wireless technology to be easy to use, and another if you're paying through the nose. Digital cameras aren't the only things whose prices have bottomed out recently. Good Pocket PCs cost little more than $200. Pretty much every wireless application you could want runs less than $75, and the monthly service won't break the bank, either. And the best time to invest time and money into a new productivity tool is before you need it to differentiate your service level and turn times to keep getting plum assignments.

There are hundreds of places to thoroughly research any techno-tool you're interested in, starting these days with some of your colleagues. Not only have they probably tried stuff that didn't work that they can warn you about, but even the most grizzled is likely to have a cell phone or Pocket PC recommendation for you. The Yahoo WinTOTAL and Pocket TOTAL user group is a great resource to discuss Pocket TOTAL, Wi-Fi and other timesaving tools with fellow appraisers. Invest some time in learning about some of these tools and you'll be glad you did.

Inflated appraisal funding the presumptive Democratic nominee?

We're apolitical here at a la mode e-News, as we mentioned last week, and this isn't our Super Tuesday gotcha!, it just happens to have been reported by the Boston Herald last week (in a story found online now only in the paper's pay-per-view archives).

As was widely reported in December, Democratic frontrunner Sen. John Kerry obtained a mortgage on his Beacon Hill townhouse to finance his then-foundering presidential bid. Federal election laws place no limits on the ability of a candidate to finance his campaign with his own money. But when the candidate is married, as Kerry is to Heinz Catsup heiress Teresa Heinz Kerry, he may only leverage half the value of jointly owned property. So, Kerry was only allowed by law to use a mortgage for up to half the value of his and his wife's property to finance his campaign.

The Herald reported in its February 25 edition that Kerry obtained a $6.4 million mortgage to fund his campaigns in Iowa and New Hampshire. To that end, the Kerry campaign says Mellon Bank obtained an appraisal on the townhouse pegging the value of the property at $12.8 million.

However, the Herald reported, "Boston's Assessing Department puts the value of the swank, five-story mansion - with six fireplaces, five bedrooms, a private elevator and roofdeck - at $ 6.6 million as of Jan. 1, 2003. The assessed value actually dropped from 2002's figure of $ 6.95 million."

As we all know, assessment values are often more conservative than the Senator, to say the least, and notably unreliable in helping form a sales-comparison opinion of value. "It's not unusual to see assessments at about 90 percent of the market," City Assessor Ron Rakow told the paper. City workers had visited the property to check its condition in July 2002, noting that the home was in excellent condition with a modern kitchen and modern bathrooms and "elaborate" interior finish, meaning, the paper concludes, it is unlikely that the appraiser found anything new enough to have doubled the house's value.

The paper researched two recent sales in the neighborhood, finding a plus-20 percent and a plus-69 percent sales price over assessed value.

Kerry campaign spokesperson Michael Meehan told the Herald he would not provide a copy of the appraisal. "You can ask the bank if they will turn over the appraisal," he said.

If you're interested in the full text of the story, get Nexis, like we have! No, actually, go to the Herald's website and search the archives for the headline "Kerry loan twice as nice" from the February 25 edition. Pay per view articles run $2.95.

Early returns favor Bush

Last week, our "challenge" (see this week's, to the right) had a Super Tuesday theme: Tell us who you're supporting right now for the presidency in this fall's election. If the election were held today, and only appraisers who wrote to respond to last week's challenge were allowed to vote, President Bush would win reelection in a landslide!

Forrest O. from Knoxville, Tenn. wrote, "George W. Bush has restored honor and integrity to the office of President with unapologetic moral standards based on his faith and respect for his position. President Bush has clearly demonstrated that he is a man of his word and unfailing in his resolve to restore a measure of safety from the terror threat. He has and will continue to foster healthy capitalism by reducing government's burden on small businessmen (like me). He is truly a leader that this country needs desperately. GO 'W'!!!!"

In a similar vein, Billie N. from Ft. Myers, Fla. said, "This man has had more disasters thrown his way than anyone since Roosevelt. Many are the result of the lack of support for human intelligence. He has handled each with cautious, steady leadership. We can not build countries overnight, nor can we find every terrorist hiding in a hole somewhere. In spite of the media bashing I still support this man as he is truly a great president."

Mike J. from parts unknown said, "Are you kidding? Is their another choice? How many appraisers out there really want higher taxes? President Bush has lowered taxes at the same time that he has carried on the war on terrorism."

Dick H. from western Ohio, shaping up to be a battleground state, stumped for John Kerry. "He can (will) beat Bush the current appointed President. Bush is a complete spineless idiot. Picks only on very small individuals/countries. The guy is totally useless. This by a long time Republican who is changing to become a Democrat and help clean out the Congress, Senate and White House too. Bush, Cheney and the Saudis are all too cozy."

Larry H. from parts unknown wrote succinctly, "I am supporting Sen. John Kerry. My son works for him. Is that short enough?"

Thanks to all who wrote!

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Briefs

Mercury clients outsource less


Last month we reported on a
San Francisco Chronicle article about big-volume mortgage lenders "outsourcing" their appraisal review clerical functions to India. Our customers who do a lot of business through the Mercury Network could be heard saying, "I hadn't noticed."

This is likely because Mercury performs a complete E&O check on your report when you're ready to transmit it, giving you an opportunity to fill in blank fields, correct formal errors and the like before it ever gets in front of your client. This cuts down dramatically on reviewers' phone calls, whether from Boston or Bombay. As ten states go to the polls today to pick a presidential candidate who is promising to restore trade barriers, toughen privacy laws or eliminate tax breaks for outsourcing companies, remember that the power is in your hands.

Insist your lenders become acquainted with Mercury and do business with you that way. Unless they don't like faster, more complete, more professional reports, fully E&O checked and even checked against their own business rules in some cases, it's what's best for them - and our industry, too.


Property values aren't stopping

Average U.S. home prices increased 7.97 percent from the fourth quarter of 2002 through the fourth quarter of 2003. Appreciation for the most recent quarter was 3.67 percent, or an annualized rate of 14.67%. The figures were released yesterday by Armando Falcon, Jr., Director of the Office of Federal Housing Enterprise Oversight (OFHEO), as part of OFHEO's House Price Index (HPI). The HPI is a quarterly report analyzing housing appreciation trends.

The appreciation shown in the 4th quarter HPI is more than two percentage points higher than the increase in the previous quarter and the appreciation is geographically widespread. During the period, all but two states saw prices rise and even states that had been lagging the nation as a whole experienced a substantial acceleration in house price growth.

"The fourth quarter surge is particularly impressive right now because it comes on the heels of much more moderate increases earlier in the year," said Falcon. A stronger economy and continued low mortgage rates contributed to the growth in prices. "Rising incomes and borrowing costs below 6 percent extended a prolonged period of rapid house price gains," said Patrick Lawler, Chief Economist at OFHEO.


New WinTOTAL product manager
Jimmy Voegele was promoted to Product Manager for WinTOTAL recently. Jimmy is a five-year a la mode veteran, who joined us as a senior developer and spent the last two years as lead programmer and developer for WinTOTAL. Mike Unser had been double dipping as WinTOTAL PM since taking on the responsibility of being the companies' Product Line Manager almost two years ago. Now Mike will focus full time on the entire product line. Congratulations, Jimmy!

This week's challenge


Have you ever made an effort to market your services to consumers — home buyers or homeowners? Maybe you market yourself as an expert in what their house should list for, or what would be a fair offer for a buyer. Or maybe outside the realm of home buying and selling — have you stumped for work in divorce, estates and property disposition, net worth calculation, arbitration or litigation? We're interested in hearing from appraisers who have successfully worked this niche and learning how they go about landing business from home owners or buyers. We're also interested in hearing from people who have wanted to do this but have run up against some barrier. What was it?

Let us know your best strategies for marketing your service to "consumers" instead of lender clients, or what stands in your way of doing that. We'll run the best ideas next week, identifying you by your first name and last initial only, and where you're from, so be sure to let us know that.

Send your challenge response to the editor: mattb@alamode.com. Also send any tips or feedback you might have.

To remove yourself from our list, click here.  (It really works.)