Brian Coester – News – Week in review for September 10th, 2018.
“Tomorrow is promised to no one” – Clint Eastwood
Clint Eastwood said it, and he was right. Tomorrow is promised to no one so you must seize the day today. So much of the time we put off tasks until tomorrow. We say to ourselves that we will do the laundry tomorrow, call that person back tomorrow, workout tomorrow, develop that product tomorrow or start that diet tomorrow. Pretty soon your life becomes a whole bunch of tomorrows that never became a reality. All we honestly have in life is the moment and the day. If you find yourself behind on your tasks or if you have a habit of leaving things undone let us change that now. Don’t put off the simple stuff for tomorrow stay up late, burn the midnight oil and get it done today!
Mortgage Applications on the Move:
Purchase applications increased during the week of August 31st, but overall mortgage activity fell according to the Mortgage Bankers Association. The purchase and refinance mix stayed relatively stable and consistent with previous months.
Podcasts: John Maxwell Leadership Podcast:
Episode 9: Momentum Breakers vs. Momentum Makers (Part 2)
Quote from the Podcast:
“Some men succeed based on what they know, some men succeed because of who they know, but very few succeed based on who they are.”
Joe Rogan Podcast with Elon Musk:
A must watch for any fans of comedy, culture, technology, business, and life!
2008 Financial Crisis:
Several of the top housing groups are pushing the Trump administration to enact permanent GSE reform. In a letter signed by some of the senior housing groups which include the the Mortgage Bankers Association, the National Multifamily Housing Council, the National Association of Realtors, the United States Conference of Mayors, and more than two dozen others, the groups write that many of the GSE reforms enacted after the housing crisis have served to stabilize the housing market, but the groups worry that the newfound stability could be undone without a permanent solution.
Freddie Mac CEO Steps Down:
Inside the Beltway:
Nintendo will automatically save all games in the cloud when the Nintendo Switch Online Membership launches later this month. There was a belief that only some games would be supported, but Nintendo confirmed all games would have cloud saves automatically enabled. –NINTENDO LIFE
Artificial Intelligence is a huge element of technology right now. Right now you are in the test phase of AI, and they are still trying to understand the impact.
AI will affect not only companies but countries as we move into a more digital era. Leaders in AI adoption could capture an additional 20 – 25 percent in net economic benefit as a result of the passage. Companies that adopt AI will have a significant advantage in cash flow as well as execution.
February 26th, 2018
This episode of Coest2Coest we sat down with Jared Preisler from DataMasters.
- General Market outlook for 2018. view clip
- The aging appraiser population. view clip
- The use of MLS photos vs. Original Photos for comparables. view clip
- The three approaches to value – Cost, Income, and Sales Comparison approach. view clip
- The full episode can be found on our Youtube Channel. Please subscribe!
3 Approaches to Valuation:
- The sales comparison approach is the foundation for the real estate professional’s CMA, Comparative Market Analysis.
- The cost approach is a real estate valuation method that surmises that the price a buyer should pay for a piece of property should equal the cost to build an equivalent building. In cost approach appraisal, the market price for the property is equal to the cost of land plus cost of construction, less depreciation.
- The Income Approach is one of three major groups of methodologies, called valuation approaches, used by appraisers. It is particularly prevalent in commercial real estate appraisal and business appraisal. The fundamental math is similar to the methods used for financial valuation, securities analysis, or bond pricing.
About Jared Preisler:
Jared Preisler is an entertaining, dynamic and knowledgeable speaker that never fails to deliver. A combination of years of real estate experience as an appraiser, realtor, and investor, coupled together with a ‘No BS’ attitude to getting things done, Jared is as energetic on stage, as he is empathetic towards realtors and other real estate professionals in general. He is the CEO of J. Leland & Company which has been serving the greater Wasatch Front since 1996. They provide accurate, objective analysis, professional service, and communication at reasonable rates. Services include: current, prospective and retrospective valuation of residential properties, vacant land and building lots for use in Estate and tax settlement, Primary and Secondary Lending markets, FHA, Divorce, Bankruptcy, Investment. We also provide consulting and litigation support. Education and training DataMasteUSA.com has over thirty years’ experience creating appraisal software for the real estate industry. Our revolutionary system helps real estate appraisers save both time and money by completing real estate appraisal forms quickly and easily — without mistakes.
Coest2Coest is the weekly live broadcast with Brian Coester and Fritz Schaper, discussing all things with all people! See you in the Lions Dens Fridays at 2:00 pm EST! Please Subscribe to the Youtube Channel and Catch the full episodes and clips.
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Jared Priesler and Brian Coester – Coest2Coest Automated Transcript
There is some fear of interest rates going up, and you know, it’s those impact, most, most of the buyers. There are qualifications contingent on interest rate and that that could affect, especially later towards the end of the year. The other exciting trend, not necessarily a market trend, but we’re starting to get a lot of questions about bifurcated reports, about somebody else doing the inspection company and then the appraiser doing some desktop. You know, we get invited to be on a lot of different panels. We have appraisers that participate in a lot of events, and they’ll call us to see what our take is on that. The market’s been good for awhile. As a lender, I think investors are getting more comfortable with, with something a little bit less than a full 1004. As the market changes that might change too.
Got it, I remember back in the eighties, GE (General Electric), was trying to do this. But there’s a difference with FNMA (Fannie Mae) trying to do it, it’s a little different, right? Because it’s not, it’s an independent company.
My personal opinion in regards to the home inspection companies going to inspect the house and the appraiser’s not going to the house. I mean, what they’re really talking about is the old trainee model. Most appraisers had two or three trainees that were run out there doing inspections, and he was, either writing up the report, assisting the write up of the report and supervising it. And that’s where this sort of hybrid approach is coming from.
Brian: And I’m just thinking to myself like, is it more practical, as an AMC, let’s just say for us to go and hire some home inspector or some real estate agent or some certified inspector to go out and inspect this property. And then have us assign it to an appraiser to write it up or more practical for the appraiser to have a local trainee going out there doing the inspection and then turning it in after the appraiser reviews it? A lot of independent companies have designed a new form, and they got the desktop form, but other than in the secondary market, I don’t know if anybody’s using. Other than a default servicing or REO situation. Even the companies and banks that we know that do home equity lines of credit, they get Drive-By of Full 1004 appraisals still, you know?
Yeah. I’m not sure. I know that there’s a, there’s a group that is doing the home inspection where it’s a non- trained valuation professional that’s doing the inspection side. I know that in there, I don’t know what they’re using those for those reports. So I used to have a home inspection company. One of the things I would be concerned about is what looks average to the home inspector might be very different than what’s average for the appraiser and indeed what’s a C4 or C3, to Fannie and Freddie and, and where, how do you, how do you determine what that, that connection is and the consistency we’re being held to a consistency standard that home inspector might not wondering. You might say, hey, this is average condition. I’m in a neighborhood of, of, you know, $500,000 houses and granite countertops is very average and the next time he’s in a $200,000 neighborhood and Formica countertops are very typical and says, Yup, that’s average for this area also. So the appraiser gets that and sees, oh, average, and now we’re very different.
Yeah. And, and I think to that point, so appraisers average, uh, it’s, it’s one of the things, I mean, you see Moody’s a report that they downgraded
a headline for it. I didn’t, I didn’t have a chance yet to dig into the report, but yeah, I saw that headline.
Yeah. And so, I mean, the, the gist of it is, is, is Moody’s is, came out and said there’s additional risk associated with nonappraisal based on the alternative evaluation. I mean, that’s the gist of it, right? Which I think everyone would agree with. Um, and it’s interesting because it’s, you know, personally, right? Like when you think about, you know, am, right? So that’s one end of the spectrum, right? And then you’ve got the full appraisal, which is the, the, the, the, the other end of the spectrum, the desktop version. And desktop appraisal is a nice, let’s say, median, right?
And by the way, leave populate those desktop forums. If you got an appraiser out there, this hates typing those in a call us, we can help them customize those forums as well.
No, I think everyone, I think every shameless plug. Exactly, exactly. Hey, I was actually going to say that, but I didn’t, I didn’t want to say that. Hey. So yeah, exactly, exactly. But then there’s no issue with that. I mean it’s, it’s, it’s, there’s a huge benefit to it. And I think, I think there is something where I’m the desktop full and let’s say Avm, there is a need for like, like just common sense would say there is a need for alternative products, right? Like the [inaudible] and just-just having the [inaudible] just like when you just think, forget about appraisal valuation of collateral, right? Like the appraiser side is just wanting the idea of just having an arm and full appraisal, widely used is not really practical, right? The idea of saying, okay there’s arm, and then you’ll have your desktop valuation, and then you’ll have your full appraisal.
Speaker 2: 06:51
And then the desktop valuation with um, some sort of inspection is, is a safer bet. But then the full appraiser, a getting the appraiser to go out there and do it himself. His is the most kind of, let’s say I’m the safest, most accurate bat. And I just wonder. So it’s the kind of like paper, right? So when, when, when the computers came out, let’s say the 19 [inaudible], when I went back in the seventies, I remember this when the computers came out, um, you know, everyone thought the paper was going to go away, right? But it actually, the reverse happened. Now it’s starting to get paperless. But the reverse happened. I mean, they had paper for everything. Everything needed a printer and a cop. And by the way, we’re paperless now because of smartphones on the cloud, not because of computers. Correct. Correct. Correct. Correct. In the scanners and all these other things.
Speaker 2: 07:41
And so there’s a part of me that thinks that with this desktop and alternative evaluations in multiple products being offered by an appraiser, number one, you have more to sell, which is important, right? But number two, that, you know, with a lower price point or with a different turn time with a different product offering me, you know, you’re going to, you, they’re going to be able to, uh, collateralize a lot more things, right? And then a negative example, right? Where like bitcoin and the blockchain technology has enabled, like in countries like Egypt, right, where people have owned the land for a thousand years, and everyone has a house, right? Just they don’t, like everyone has a house with people or what, what blockchain technology has been able to do is they’re able to call [inaudible] the government. There is no record of who owns the land. There are no deeds.
Speaker 2: 08:37
This is thousands of years passed down generation to generation hieroglyphics, summer, right? For summer. Um, what has been able to do with block chain is use that to collateralize a, the house meaning like there’s a record associated now so they can get a loan on it. Well, something like if you’re gonna applies for a $50,000 line of credit at your bank and you’re gonna do it all online, you’re gonna go to ABC lender dot. Well, I mean, you know, to your point, speed is important. It is important. It’s a factor with, with loans. If you want to buy a house, I mean if you want to get something, well, having a desktop valuation offering to where you can get it relatively quickly and is accurate, I think is going to enable more appraisals to be ordered at some level. Right? Just different types. I
Speaker 1: 09:33
think when you have an appraiser touching it.
Last week’s guest was Dale Gallant, Division Vice President at Alterra Home Loans. Dale who has been in the mortgage industry for over 20 years has done all types of sales. This episode covers how he goes about building his business, forming relationships with realtors and gives tips on how he got started in the industry.
Dale Gallant: Tips for Originators
Dale Gallant on Coest2Coest – Full Episode
About Dale Gallant:
Dale Gallant has over 20 years of experience in most facets of the mortgage business and is a well-rounded professional in the industry. From starting out as a loan officer to owning his own successful mortgage brokerage firm, he has worked hard over the years and knows what it takes to succeed in this business. His wealth of industry knowledge and experiences that he has accumulated throughout the years has enabled him to become a successful industry executive and will help to navigate the future of this ever-changing market.
About Brian Coester:
Brian Coester is the founder and CEO of CoesterVMS, a nationwide appraisal management company that designs, implements and oversees a full range of services and technology solutions for the mortgage banking industry. CoesterVMS currently serves 10 of the top 20 mortgage lenders in America. CoesterVMS has been named twice to Housingwire’s top 100 Tech Companies and three times to Inc 500/5000 fastest growing companies in America.
CoesterVMS combines proprietary and compliant technology with the best customer service to offer the most streamlined process to our appraisal partners and lenders. This approach helps us reach our ultimate goal of delivering the most accurate appraisal reports within the time frames of the mortgage transactions. CoesterVMS provides clients the tools to navigate the valuation process in an evolving lending environment. Through innovative technology and customized service strategies, our mission is to serve as the engine that runs the real estate valuation industry. We are your partner for success.
You can listen live by following http://go.pardot.com/e/310061/