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The Appraisal Subcommittee unanimously rejected a temporary waiver request from TriStar Bank of Dickson, Tennessee, during a special meeting April 23 in Washington. The Appraisal Institute led industry efforts opposing the bank’s request for a waiver of certification requirements, which would have allowed appraisals to be completed by non-certified appraisers.
Randal Quarles, the Federal Reserve’s vice chairman of supervision, testified April 17 before the Senate Committee on Banking, Housing, and Urban Affairs about regulatory changes that increase banking efficiencies, citing the recent increase in the appraisal threshold for commercial real estate loans, which he said posed no threat to safety and soundness.
Wells Fargo on April 17 agreed to pay a $1 billion fine to settle allegations from the Consumer Financial Protection Bureau that it routinely charged homebuyers excessive “rate-lock” fees, Reuters reported. The bank, which also was accused of force-placed auto insurance, agreed to settle without admitting or denying wrongdoing.
The Tennessee Department of Commerce & Insurance, which includes the state’s Real Estate Appraiser Commission, published on its website April 17 a Q&A focused on real estate evaluations performed by state-licensed and state-certified appraisers.
Commercial real estate prices are 11 percent higher now than at their pre-Great Recession peak, which has Federal Reserve governors concerned about CRE financial stability, Business Insider reported April 16. CRE prices more than doubled between May 2009 and September 2017, but have since dropped 1.7 percent.
Residential construction and sales increased in March despite several districts citing low inventory as negatively impacting sales, the Federal Reserve reported April 18 in its newest Beige Book. Commercial results were mixed, with some districts reporting steady activity and others reporting market softening.
Industrial property values increased 13.1 percent last year while other commercial property types averaged 7 percent gains, according to commercial real estate firm Cushman and Wakefield, National Real Estate Investor reported April 13. The national cap rate for class A+ product is 5.4 percent.
The U.S. hotel sector saw a 2.2 percent increase in gross operating profits last year despite a decrease in revenue, according to real estate services firm CBRE, MBA NewsLink reported April 19. This marks the eighth consecutive year of increases, which were achieved by limiting operating expenses.
U.S. real estate is expected to perform better this year than previously predicted, according to economists who contributed to an Urban Land Institute forecast released April 18. The forecast provides predictions for such economic indicators as property investment returns, vacancy and rental rates and housing starts and prices.
Cap rates for triple net leased assets during the first quarter dropped 22 basis points to a new low 6.03 percent, according to an April 19 report from investment brokerage NNNet Advisors, MBA NewsLink reported. An increasing spread between asking prices and final sale prices contributed to the drop.
Mortgage rates during the past week reached their highest point of the year, marking the largest weekly increase since February, Freddie Mac reported April 19 in its Primary Mortgage Market Survey.
The Appraisal Institute’s National Nominating Committee is scheduled to interview five candidates for 2019 AI vice president in Chicago May 9, and the committee is expected to then nominate one or more individuals for 2019 vice president at the Board of Directors’ meeting May 10-11.
The Appraisal Institute announced April 25 that its elected officers participated in and contributed to major industry events during the month.
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