Sometimes, we all need a break…set…match…and love.
— Geetima Das Krishna (@GeetimaK) July 25, 2020
This is going to be an appraisal-heavy issue of Housing Notes today…
But I digress…
THE CON Documentary Goes Live On August 5th at 8PM EDT
True or False: the homelessness problem in California is only because of Big Tech and a surge in drug use? False! Massive foreclosure and evictions following 2008 are one of the biggest contributors. Join the Aug. 5 global live premiere + Q&A: thecon.tv/event @theconseries
NPR: Housing Numbers Show Strength But The Economy Is Struggling
From one of my favorite regular podcasts: The Indicator: The Coronavirus Housing Boom
Pushing ‘Coprimary Homes’ Into The Housing Lexicon
My friend Mike Simonsen, founder of Altos Research, continues to try to get me into the Urban Dictionary with my phrase “Co-Primary.” Click on the following tweet for the thread and a lot of other suggestions for the phrase.
Real estate thought leaders need to come up with a term for the Truckee/Missoula/Bend-type communities that stand to benefit from virtual work shifts.
— Conor Sen (@conorsen) July 29, 2020
Mike’s Altos Research metrics seem to confirm that it is a pattern we are seeing now in the housing market.
(For earlier appraisal industry commentary, visit my old clunky REIC site.)
Please Donate to the Ryan Lundquist Go Fund Me Effort If You Can
@NorCalRushfan put together a @gofundme for @SacAppraiser Ryan Lindquist to help with medical expenses from his current illness. Ryan is a good friend, a good person and a role model to residential appraisers everywhere. Please help if you can. https://t.co/a0E8b9ZjQf pic.twitter.com/PjsTXLYfYN
— Jonathan Miller (@jonathanmiller) July 27, 2020
Appraisal Institute Is Opening Their Sham Election Process For Us To See The 2 VP Candidates Present
The following note was sent out yesterday by the Appraisal Institute. Their new effort seems to be an attempt to misdirect that AI National overruled the publicly announced candidate Craig Steinley (vetted by the National Nominating Committee (NNC)) in a sham petition process. Michael Tankersley was not the nominating committee choice but now, somehow, he is on equal footing with Craig Steinley despite the NNC not thinking so. Shouldn’t Tankersley be ashamed of himself? This sham self-dealing election to keep Jim Amorin in power is unethical and morally wrong. This now officially broken organization thinks that its membership will assume that operational executives are being transparent by sharing this event with the public. The decision has already been made and this is just theatre, as I have chronicled in prior posts. You can catch up on all of it here. I hope the Board of Directors does the right thing and votes for the NNC choice and not become responsible for AI National’s further demise.
The Appraisal Institute Board of Directors will hold an election for the 2021 vice president during the morning session of its third quarter meeting Aug. 6 and host a general open session in the afternoon. Registration is open for both meetings.
The meeting will begin at 9 a.m. CDT, and the vice president nominees will make their presentations to the Board at the start. Once the presentations have concluded, the Board will go into Executive Session. AI professionals who have registered to attend this meeting will be able to rejoin it at approximately noon CDT for the election of the vice president.
AI professionals must register for all meetings they wish to attend. If you wish to attend the vice president presentations and election beginning at 9 a.m. CDT and the general open session beginning at approximately 1 p.m. CDT, you will need to register for both. Please note that space is limited.
You will receive a confirmation email with your own unique link to join a session once you have registered.
AI Professionals with Past Service as Directors of the Appraisal Institute Show Support For Craig Steinley
This July 29, 2020 letter was written from AI Professionals with Past Service as Directors of the Appraisal Institute to express their support for Craig Steinley, the only vetted and selected candidate by the nominating committee. They give many reasons for their support of Craig, but this one stood out to me:
The current petition is even more damaging and detrimental to the nominee and the organization because, for the first-time ever, it is cloaked in anonymity and secrecy. And, it is diminishing, rather than enhancing, our external image and influence at a time when other far-reaching issues demand the Board’s attention and action.
Here is the letter [PDF].
ASC Extends the North Dakota Waiver for Another Year
This week the Appraisal Subcommittee voted to extend the North Dakota waiver for another year with a 6 to 1 vote. The overarching reason to extend was because of the COVID outbreak prevented them from meeting in person this year. HUD was the only agency to take issue with this and I have to say I agree with their reasoning. North Dakota had 7 months to come up with a solution before COVID hit. I’m not taking ASC to task on this though because there is some validity to the COVID excuse.
My assumption is that there is no solution beyond simple economics. North Dakota is largely a rural state and the economics of inadequate fees make it very difficult to have timely coverage. This is a challenge across all rural markets yet North Dakota claims they are different and were unable to come up with why and how to solve it over seven months. And that’s because this is purely a political ploy for the ND banking lobby who got the governor to opt-in because the banks don’t want to pay market rates for appraisals. Well, that’s not how the economy works. Prediction: 1 year from now North Dakota still won’t have a solution and they won’t get an extension.
Looks like I was correct. Even though ND had 7 months before the pandemic to come up with answers, they offered no solutions. The pandemic bought ND time and ASC showed patience. The only solution appears to be economic and many other rural markets seem to be just fine. #politics https://t.co/Dz8i56DZdT
— Jonathan Miller (@jonathanmiller) July 30, 2020
The Appraisal Foundation Seems To Be Claiming They Don’t Need Oversight?
There was an email passed around by Jeremy Bagott recently about the TAF’s collection of PPP funds that caught my attention. Bagott, the author of “Dispatches from the Cosmic Cobra Breeding Farm” that came out earlier this year was essentially a takedown of the Appraisal Foundation (TAF) via “incorporation by reference.” Initially, I was intrigued when the book came out but the author came across too strong on Dave Bunton’s compensation to which TAF responded and it took a lot of the wind out of the sails of the book marketing process.
The author sent the following email about the TAF acceptance of PPP money which seemed problematic to me, especially since all the meeting travel is not occurring right now because of the pandemic.
Bagott’s recent email made me concerned so I opted to surf the ASC web site (hey, I also watch C-SPAN in my free time) and I stumbled across two documents posted in July:
The first was an email from ASC Executive Director Jim Park, providing a practical guide to TAF on what they will be looking for. After all the ASC is the link between Congress and TAF and ASC is responsible for TAF’s oversight. This is clearly and succinctly outlined in Title XI.
Here’s the summary page of Title XI on the ASC web site as it relates to the relationship between ASC and TAF.
(b) Monitoring and reviewing Foundation. The Appraisal Subcommittee shall monitor and
review the practices, procedures, activities, and organizational structure of the Appraisal
Here’s Jim Park’s July 1st email.
I bring all this up because of what I read after the Jim Park email.
TAF is strongly pushing back with the argument that “monitor and review” do not equal “oversight.” In other words, they are saying that Congress created TAF to be on its own and not be accountable for its actions to the public/taxpayer/consumer yet they set the standards for valuation across the U.S.
Here’s the TAF letter:
This rationale really alarmed me.
The TAF opines against having oversight…
While putting safeguards in place, Congress refrained from being too
intrusive into the operations of the private, non-profit organization by limiting the
federal government’s role to a level of “monitoring and review” instead of giving it
Even more distressing is that TAF gets very personal against Jim Park and his team – the reading of this following section was an out of body experience. I’ve met and spoken with Jim Park and his staff at many meetings and find everyone very professional. I’d like to see these TAF claims made under oath.[The following in Bold, my emphasis]
Here’s an excerpt.
Over the past year, the Foundation has witnessed an increasingly heavy handed and
authoritarian approach from ASC staff while performing monitoring activities. The policy
and guide purport to ratify that approach and codify it for the future. Their unprofessional
behavior has become commonplace including:
• Giving unsolicited opinions during private work sessions about decisions the ASC
staff would like the Board to take.
• Disrupting private work sessions with ongoing chatter inappropriately laced with
• Confronting board members at breaks during in-person meetings with veiled
threats emphasized by finger wagging.
• Making calls to Foundation board members and support staff prying into issues
unrelated to Title XI and circumventing Foundation leadership.
• Making false statements in an attempt to strong-arm Foundation decisions to
conform to staff wishes.
And look at who TAF cc’d in the letter? My goodness.
Now absorb this lecture on ASC expected conduct at the end of the letter:
When attending Foundation private meetings, sessions, or briefings,
o ASC staff shall refrain from speaking unless specifically requested to do
so by the Chair or President.
o ASC staff shall not state or imply directives.
o ASC staff shall not attempt to exert undue influence on the issues
The tone of this letter is completely unprofessional and frankly, bizarre, yet was signed by the Board of Trustees, Leila Dunbar and TAF, David Bunton. I don’t know Leila but this letter’s tone doesn’t sound like David to me.
TAF is an organization that sets standards for appraisers nationwide and to behave this way is unacceptable. I’ll be interested to see how they navigate going forward. I think TAF’s world just got a lot more difficult.
OFT (One Final Thought)
This ad is so good pic.twitter.com/T4n9YKNt6y
— Pablo Pérez (@PabloPerezA) July 31, 2020
Brilliant Idea #1
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Brilliant Idea #2
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See you next week.
Reads, Listens and Visuals I Enjoyed
- HNA Group Sells Third Condo at Extell Development's One57 at Loss [The Real Deal]
- The Coronavirus Housing Boom : The Indicator from Planet Money [NPR]
- The Porch Puzzle [Curbed]
- How Much Is COVID-19 Hurting NYC Real-Estate Values? [NY Magazine]
- Chinese EB-5 Investors In Hudson Yards Fear ‘Perpetual Nonpayment’ [The Real Deal]
- The Eviction Ban Worked, but It’s Almost Over. Some Landlords Are Getting Ready. [Propublica]
- A Foreclosure Crisis Could Still Happen [Curbed]
- Jumbo Mortgages Are No Longer the Cheapest Mortgages Around [Wall Street Journal]
- Billionaires in New York could pay $5.5 billion a year under new tax [CNBC]
- Epstein Mansions in New York and Palm Beach for Sale for $110 Million [NY Times]
My New Content, Research and Mentions
- A Rockaway Life [NY Times]
- Hamptons Real Estate Prices Jump with New Yorkers Fleeing Pandemic [The Jewish Voice]
- The typical price for a Hamptons house just went up by a record amount, and it's at the highest level in more than 13 years [Business Insider]
- Rachael Ray Sells Southampton Estate for $3.25 Million [Mansion Global]
- Second-Quarter Hamptons Home Sales Dip 13 Percent [27 East]
- How a remote work boom and city exodus might reshape rural America [Yahoo Finance]
- New York’s Rents Drop as Vacancies Increase. Could Rent Regulation be Next Thing to Fall? [The City]
- Do sellers ever agree to rent-to-own deals? Yes, a few—when there's a downturn [Brick Underground]
- 2020 is the summer of booming home sales — and evictions [Washington Post]
- Home prices set new records as inventory falls across Long Island [The Real Deal]
- Los Angeles luxury real estate market back in full swing after virus shutdown [Business Times]
- 5 ways the coronavirus has changed suburban real estate [Chicago Tribune]
Recently Published Elliman Market Reports
- Elliman Report: Houston Sales 2Q 2020 [Miller Samuel]
- Elliman Report: Venice + Mar Vista Sales 2Q 2020 [Miller Samuel]
- Elliman Report: Malibu + Malibu Beach Sales 2Q 2020 [Miller Samuel]
- Elliman Report: Los Angeles Sales 2Q 2020 [Miller Samuel]
- Elliman Report: North Fork Sales 2Q 2020 [Miller Samuel]
- Elliman Report: Hamptons Sales 2Q 2020 [Miller Samuel]
- Elliman Report: Long Island Sales 2Q 2020 [Miller Samuel]
Appraisal Related Reads
- Previous AI Sham Election Victim Shares What Happened [Appraisers Blogs]
- Standards Rule Proposed Revision Undercutting the Appraisal Profession [Appraisers Blog]
- Summer Heat Amid a Pandemic-July Newsletter [DW Slater Company]
Extra Curricular Reads
- Off the Charts – The Big Picture [Ritholtz]
- Bono and the Edge Serenade Their Ungrateful Crew With ‘Stairway to Heaven’ [Vulture]
- New York Is Getting Loud Again [NY Magazine]
- Lonely Days for Sports Mascots [The Atlantic]
- Coronavirus in New York City [The City]
- Empty Towers, No Power Lunches: Ghostly Midtown Is Omen for N.Y.C. [NY Times]
- Alex Winter Doesn’t Mind if You Only Know Him From ‘Bill & Ted’ [MEL Magazine]
- Olivia de Havilland’s Real Hollywood Legacy [The Atlantic]
- Defining the ’90s Music Canon [Pudding Cool]