From HousingWire:

Appraisals may soon not be required on certain home sales of $400,000 and under

Certain home sales of $400,000 and under may soon not need an appraisal, as federal regulators are close to approving a proposal to increase the threshold at which residential home sales require an appraisal for the first time since 1994.

In November, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve released a proposal that would increase the appraisal requirement from $250,000 to $400,000, meaning that certain home sales of $400,000 and below would no longer require an appraisal.

Now, the proposal is just one step away from being finalized and adopted as proposed.

Earlier this week, the FDIC published the final rule on the matter, stating that the rule is approved as proposed.

Now, it’s important to note that the new rules do not apply to loans wholly or partially insured or guaranteed by, or eligible for sale to, a government agency or government-sponsored agency.

That means that loans sold to or guaranteed by the Federal Housing AdministrationDepartment of Housing and Urban DevelopmentDepartment of Veterans AffairsFannie Mae, or Freddie Mac would still require an appraisal, per each agency’s rules.

But despite that fact, the change would have a sizable impact on the real estate market, as according to the OCC, the new rules would apply to approximately 40% of home sales.

As one might expect, financial institutions, financial institution trade associations, and state banking regulators “generally supported” the proposal. Meanwhile, appraisers, appraiser trade organizations, individuals, and consumer advocate groups “generally opposed” the proposal.

Other commenters noted that the rule could have an outsized impact on certain consumer groups, such as low-income individuals, members of certain minority groups, or first-time homebuyers, because those borrowers are more likely buy homes in the lower price range, and would therefore be more likely to buy a home without an appraisal.

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44 Responses to Insanity

  1. denss dunnigan says:


  2. SundayCalmness BeforePumpkinVomit says:

    Normally, all the juicing and continued attempt to keep the financialization machine going would end in a 2009 Minsky moment.

    However, the fact that full power de-chinazation and de-facto de-globalization/protect your turf is in full power. This means that there is a way higher than normal probability that all the mal-investment normally created by the fogginess of the QE Exponantial/ Zero Interest offer my actually be re-routed very accidentally into a very likely great investment as the musical chairs are re-arranged in the dancing hall.

    Meaning that manufacturing is back on. When all is done and said, the odds of highly advanced technological 3-D printers/automated factories for on-demand/customized products attached next to an Amazon or Amazon like warehouse somewhere in this country, will be exponentially more efficient and profitable than building an even like factory or even slightly less advance cheaper to build factory in some central american or asian or african 3rd world country who’s educational knowledge, social intelligence, rule of law and dictatorial government is on the lower end of curve, and might have been THE advantage when you needed the physical labor. In short physical labor is not as important as it has been in the last 100+ years. So no need to kiss up to the Vietnamese Communist Party.

    Finally, India’s government is becoming more Hindu-nationalist. So just matter of time, if not already happening that many of the China tech stealing shenanigans is already happening in the Indian halls of power as they see their Hindu-Nationalist Indian power ascension, think Pakistan like with its Islamist aiding freenemy agendas.

  3. Not SundayCalmness... says:

    Did not FedEx and or UPS in conjunction with Amazon put up some prototype warehouses with 3D printers in them to explore the order, 3d print ship model? 3D organ printing being played with now so maybe with a Prime membership you can get next day on a body part.

    Based on your post, negative int rates on mortgages to keep the housing market going?

  4. SundaCalmness AfterDinner says:

    In his nutty insane way. Trump has done the Churchill to Hitller with China, while everyone else has been pretending doing a McMillan. All the news are calling Trump a loonie for yelling the naked emperor has no clothes.


    Chinese tanks will be rolling in Hong Kong way sooner than later as per commie protocol. The mask is off for the CCP, they are going to get super aggressive, they got no choice as their economy is imploding and they need to show their “will to power” and that they are no going to do a Gorbachev. The only thing now is for everyone to realize and accept that “oops, we were had and this free market bs with commies was the result of some nice blackmail, pay off and really good pharmaceutical grade schedule one stuff”.

    The realization that there will never be again a high concentration of cheap labor and the economies of scale achieved under the control of a police state to do all the awful manual labor required for all the less than $10 Walmart trinkets and guarantees Apple humongous profits per unit is about to surface in the next 60 days.

    By Xmas time, the realization that WalMart and parts of Amazon’s business model is kaput unless someone find a robotic way to build those cheap trinkets to replace China’s manual labor and economies of scale. The only thing that will get made in 3rd world is toxic chemical waste related stuff.

    These are the transitory points in business thoughts that we will be hitting soon.

    The amount of capital reallocation and investment required for all the new factories, staff education and training, might balance itself out with the ongoing Global Central Banks and soon the Federal Reserve zero interest world.

    In short, folks, it might actually all work out, except for a few wars here and there a probably some cheap radioactive Kias sedans and LG washing machines.

  5. Libturd, seen crazy things done with ping pong balls. says:

    Not sure what made more sense? The nonsense spam ads, or the nonsense Sunday posts.

  6. D-FENS says:

    I can’t wait until Trump starts nuking hurricanes. It’s going to be awesome.

  7. XRumerTest says:

    Hello. And Bye.

  8. Bitchslap says:

    Appraisals are fake anyway. Who cares.

  9. Walking Bye says:

    Nonsense Sunday posts? Looks like someone has been drinking some Newark Tap. Or or starting vacation early with a bottle of Grims Wiskey Water made in Clifton (99% lead free)

  10. 3b says:

    What is the benefit of buying a home without an appraisal?

  11. Juice Box says:

    Appraisal by ROBOT in WSJ over the weekend.

    Your Next Home Might Be Appraised by a Robot

  12. Juice Box says:

    3b – No walk through? I can imagine the Robot flying overhead doing a drive-by appraisal will miss the stench of cat litter and Pall Malls and the smell of the must in an unfinished basement. Condition of the property makes most of the difference between an updated house and not in older neighborhoods. I can imaging Banks, realtors and sellers want this drive-by robot appraisal because if the appraisal value is lower than expected, the transaction can be delayed or even canceled by the buyer.

  13. Juice Box says:

    Millenials are going to pay full price for your double wide? Think again especially of there is a recession.

    “The median age of home-buyers has risen all the way to 46….

    “The toxic combination of lower earnings and higher student-loan balances—combined with tight credit in the recovery years—has led to Millennials getting shut out of the housing market, and thus losing a seminal way to build wealth. The generation’s homeownership rate is a full 8 percentage points lower than that of the Gen Xers or the Baby Boomers when they were the same age; the median age of home-buyers has risen all the way to 46, the oldest it has been since the National Association of Realtors started keeping records four decades ago.”

  14. Juice Box says:

    Salon piles it on says the Next Recession could be worse than 2008.

    “As the corporate media bangs the drum of imminent recession, we need to take a look at how tens of millions of American households that live paycheck to paycheck are situated for another choreographed downturn.

    It will tell you all you need to know about the predatory nature of late-stage vulture capitalism, over which Donald Trump presides as its orange mascot. What jumps out when you look at the data is just how phony the “longest recovery” has been — the one for which Joe Biden wants to take a victory lap.

    Lost ground

    The stark reality is that in the last decade or so the rich have gotten richer as the rest of the country has sunk deeper and deeper into debt, with little to show for it except rent receipts.

    As we head into the next downturn, whenever it happens, tens of millions of American families are hanging on the edge of economic oblivion. Thanks to the Trump tax cut, their government will be too much in debt to throw them a lifeline.

    The $20 trillion in lost American household wealth that came from the unprosecuted theft of household wealth during Wall Street’s Great Foreclosure caper had generational consequences that linger and still define many lives today.”

  15. grim says:

    Why does the smell of cabbage and pall malls even matter when the dirt is 75% of the purchase price?

  16. Juice Box says:

    Grim square footage and upgrades are only 25% of the price on smaller homes sub 400k?

    So Land is 300k and improvements 100k? What kind of house can you build for $100k?

  17. Michaelnib says:

    exigency a websitte? [url=]vistaprint website builder[/url], [url=]factoring company[/url],[url=]ebay fortnite account[/url]

  18. JCer says:

    Juice, in general yes in this particular area(NYC metro) the old house at 400k is of very little of the value. Now in a place like Indiana it is not the case the home is the item of value and for the most part the land is worth very, very little in most places.

  19. JCer says:

    Juice I was very surprised my sister just bought a home, she’s a millennial and there was no appraisal for a 400k mortgage on a 500k home. So clearly this is already starting………..

  20. Fast Eddie says:

    Why does the smell of cabbage and pall malls even matter when the dirt is 75% of the purchase price?

    Because it’ll take $100,000 to get the place to a point where the kids won’t die from toxic shock syndrome.

  21. Fast Eddie says:

    By the way, I can decipher the aroma between Chesterfields/Rheingold and Cabbage/Pall Malls.

  22. Juice Box says:

    Insanity isn’t here yet however, they still need to take a chainsaw to the lending regulations and lower the rates.

  23. Libturd, seen crazy things done with ping pong balls. says:

    Sadly, the appraisal probably protects idiot buyers from overpaying more than it protects the lender.

    Growing up, I distinctly remembering learning about a government having a role to protect the consumer. One by one, these protections are being removed. Nothing is clearly as damaging as the continued existence of the monopoly known as Amazon. The Wall Street bailout, which pretty much told our brilliant financial alchemists that you will get a get out of jail free card, even when risking the stability of the financial markets without hedges. In this case, the Feds actions against Wall Street was akin to a parent taking their child to a baseball game during out-0f-school suspension.

    As voters, we continue to rally behind the candidates who raise the largest war chests almost entirely from hidden corporate blood money donations and then stupidly question how economic swings in the economy resulting in continued generational damage can be allowed to happen again and again.

    Of course, it all won’t matter one bit when I’m living the Pura Vida.

  24. Juice Box says:

    The cry grows louder… up the helicopters.

    “unacceptable deflationary risk scenario”

  25. abeiz says:

    on the topic of dirt versus home,

    A developer bought the lot across from me for $702K, razing it immediately and erecting two side by side town homes for $929K each.

    my understanding of his cost/profit structure ends there but I am very curious how much he netted per unit.

  26. Libturd, seen crazy things done with ping pong balls. says:


    It is mind blowing how cheap it is for a contractor to build a home vs. what they charge YOU to have a home built. It’s kind of sickening actually. The costs are always changing, but the average single family home costs between 200-300K to build. We plan to push out our 3rd floor to the back and change a finished attack into a master bedroom, walk in closet and a full bath. I guarantee you it ain’t getting done for less than 150K out of my pocket. Unfortunately, it’s one of those necessary things we have to do as we inherited Gator’s brother and it will be hard to sell our place with the one and one half baths it currently has.

  27. chicagofinance says:

    Campus beat: Secular Colleges Are Anything But

    “All secular colleges and universities instruct students in religious doctrine and instill religious values in them,” writes Jeremiah Poff in The College Fix, in a profile of theologian Chad Pecknold. But the religion that’s on offer on the quad today isn’t one of the monotheistic faiths like Judaism, Christianity and Islam. Rather, it’s “a form of pantheism” in which certain “holy grails — think LGBTQ and abortion rights — are sacrosanct.” Like the ancient varieties of pantheism, this new version “insists that ­everything is divine,” especially sexually transgressive mores and modes of life. How do we know we’re dealing with a campus religion? Just challenge “one of the [pantheistic] holy ideas,” Pecknold tells Poff, and “you will wear the scarlet letter.”

  28. 3b says:

    Where is this deflation in the US? I just don’t see the risk?

  29. Blue Ribbon Teacher says:

    My uncle was a lifelong carpenter. He bought a small crappy house on LBI about 7 years ago. Then, he bought another property, bulldozed the home, and handbuilt a new modern home on it while he lived in the crappy home. He even put my aunt to work. He had the house up and running in 8 months and the cost was minimal.

  30. 3b says:

    46 is the median age of a first time home buyer now? How old are the kids if we assume they are buying for suburban school etc
    So people pushing 5o are taking out 30 year mortgages or at least some of them? It’s crazy in my opinion.

  31. 30 year realtor says:

    The dirt value is changing. The lack of buyer pool for large, high tax homes and zoning restrictions are impacting the value of the dirt. Can’t just assume the biggest structure you are permitted to build is going to be marketable at a profitable price. Tons of lightly used similar inventory at very attractive prices.

  32. A Home Buyer says:

    “Free” Water Pipes for Newark.

    Taking 180 million out now and they’ll figure out which federal government agency to pass the bill to later.

    What could go wrong?

  33. 30 year realtor says:

    Assuming you live in Fort Lee, Cliffside Park or Palisades Park. A friend builds those in all 3 towns and tells me values are retreating on those units. Prices falling faster than builder can reduce the asking price.

  34. Grim says:

    Wonder who the contractors who got the contract are related to, or throwing kickbacks to.

  35. grim says:

    And what happens when homes still come up testing for lead levels, due to the internal plumbing and fixtures?

  36. Fast Eddie says:

    And what happens when homes still come up testing for lead levels, due to the internal plumbing and fixtures?

    It’s Trump’s fault.

  37. Juice Box says:

    3B – re: where is the deflation? I will one up Pumpkin and quote myself.

    “We are now in an environment where there’s way too much conjecture about future growth. That makes people nervous. When people are nervous they slow down and take actions with much more caution and that can affect spending and credit. If this continues we will slow further, it is our natural reaction and our life long conditioning to scary “news” that most folks just don’t understand. Yield curve, stock market drops, trade war, etc. etc the scary news seems never-ending.”

    Just the expectation for a decline in prices is deflation. Because of this, it is held, consumers postpone big ticket items like buying a second home or a boat or a new car yada, yada, yada. In our financialized economy it’s the rich consumer who starts to pull back first in spending.

    Perhaps a bad selling season in the Hamptons will trigger deflation?

  38. Juice Box says:

    Grim – ban testing.

  39. Libturd, seen crazy things done with ping pong balls. says:

    Anyone notice Murphy’s public image campaign about NJ Transit?

    Here’s another article showing how THEY ARE ALL THE SAME.

  40. Leftwing says:


    A stock market sell-off worse than December could arrive in a week, says analyst –

  41. Libturd, channelling ExPat says:


    I like how he noticed the same market pattern I noticed. Unfortunately, I don’t subscribe much to TA. But it is uncanny. I’ll be happy if I’m anywhere near the top.

  42. The Great Pumpkin says:

    The Risks of Buying a Home That’s Too Big
    The larger the house, the more you’ll pay in utility bills, property taxes, insurance and repairs (and the more you’ll have to clean).

  43. JCer says:

    Pumps, I have a very large home. In this area the costs are overstated, repairs, maintenance and utilities aren’t the killers it is still Essex county property taxes. Which will only get worse with the continued Newark give aways. They mismanage their water system and now we get to pay to have it replaced.

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