Appraisal Institute News

Mar 01, 2023 08:30 AM

Economy Surprisingly Strong but Weaker Conditions Loom: Data

The overall economy is performing better than expected this year and the housing market is doing well, but weakening conditions are anticipated, Fannie Mae’s Economic and Strategic Research Group reported Feb. 21. They noted that the economy could fall into a modest recession during the second quarter.

Feb 08, 2023 08:30 AM

Federal Reserve Bumps Interest Rates a Quarter Point, Anticipates Further Increases

The Federal Reserve on Feb. 1 raised interest rates another quarter point to a target range of 4.5%-4.75%, the highest since October 2007, CNBC reported. This is the eighth increase since March 2022 as the Fed works to keep inflation in check.

Feb 08, 2023 08:30 AM

Waters of the US Rule Could Affect Property Rights, Appraisals

A new rule from the Environmental Protection Agency and the Corps of Engineers that defines “waters of the United States” will take effect Feb. 28 and define the boundary between waters that are subject to federal jurisdiction and those that are subject to state, tribal and local control. The rule has the potential to change real property rights and affect opinions of highest and best use.

Feb 08, 2023 08:30 AM

FinCEN: Be Wary of CRE Purchases from Sanctioned Russians

The Financial Crimes Enforcement Network on Jan. 25 sent an alert to financial institutions warning them to look out for potential commercial real estate purchases made by Russian investors who have been sanctioned. FinCEN specifically warned against vulnerabilities based on a review of the Banking Secrecy Act.

Jan 25, 2023 08:00 AM

Office Vacancy Gap Expected to Widen This Year as Firms Seek Newer Properties: JLL

The vacancy gap between older and newer office buildings is widening due to companies seeking new properties that are more sustainable and have higher-quality amenities, JLL reported Jan. 16. The occupancy rate for new properties in the U.S. has held steady at around 16% while vacancies in older buildings rose from 13.5% to 19%.

Jan 25, 2023 08:00 AM

Apartment Demand Negative for the First Time Since ’09: Data

Net demand for apartments went negative in 2022 — the first time since 2009 — due to lower consumer confidence and higher inflation, according to data from RealPage, MBA NewsLink reported Jan. 17. Rental demand was also weakened by historically low renter turnover, a smaller percentage of people behind on rent and no flight to affordability.

Jan 25, 2023 08:00 AM

CRE Distress Market Unlikely to Materialize in 2023: Analysts

Conditions are not ideal for the distressed commercial real estate debt market to take off this year, dashing the hopes of investors who want to cash in, according to an analyst with RSM US, GlobeSt.com reported Jan. 13. Federal Reserve data showed that defaults on CRE loans stayed below 1% through Q3 2022, and that reaching the 9% default rate seen during the Global Financial Crisis is unlikely.

Jan 11, 2023 08:00 AM

Federal Reserve Expected to Push Rates Past 5% in 2023, Survey Results Reveal

Ongoing inflation concerns likely will cause the Federal Reserve to raise interest rates to 5.25-5.5% this year, according to Bankrate’s Fourth-Quarter Economic Indicator poll published Jan. 4. The average rate projection of 5.35% is up from the 4.71% forecast in the third-quarter survey.

Jan 11, 2023 08:00 AM

FHFA Must Step Up Efforts to Combat Appraisal Bias: Report

A report from the Federal Housing Finance Agency’s Office of the Inspector General found that the FHFA isn’t doing enough to stop appraisal bias, HousingWire reported Dec. 23. The report suggested changes the FHFA should make, including alerting state regulators and licensing authorities when cases of appraisal bias are discovered and when complaints are filed about appraisals.

Jan 11, 2023 08:00 AM

Biden Signs Bill Revising Valuation Process for VA Mortgages

President Biden on Dec. 27 signed HR 7735, the Improving Access to the VA Home Loan Benefit Act of 2022, which streamlines the valuation process for U.S. Department of Veterans Affairs mortgage loans by allowing desktop appraisals and appraisal waivers in some situations. Critics have complained that the VA homebuying process can be unnecessarily slow due to appraisals having to be handled in-house.

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AI News

Economy Surprisingly Strong but Weaker Conditions Loom: Data

Federal Reserve Bumps Interest Rates a Quarter Point, Anticipates Further Increases

Waters of the US Rule Could Affect Property Rights, Appraisals

FinCEN: Be Wary of CRE Purchases from Sanctioned Russians

Office Vacancy Gap Expected to Widen This Year as Firms Seek Newer Properties: JLL

Apartment Demand Negative for the First Time Since ’09: Data

CRE Distress Market Unlikely to Materialize in 2023: Analysts

Federal Reserve Expected to Push Rates Past 5% in 2023, Survey Results Reveal

FHFA Must Step Up Efforts to Combat Appraisal Bias: Report

Biden Signs Bill Revising Valuation Process for VA Mortgages