Appraisal Bill Passes, Lenders Want to Eliminate DTI Cap, and Other Appraisal News

Appraisal Bill Passes, Lenders Want to Eliminate DTI Cap, and Other Appraisal NewsThe House overwhelmingly passed the appraisal bill known as the Homebuyer Assistance Act of 2019. Alternative valuations could drive up costs for real estate consumers. A coalition calls for the elimination of the DTI requirement from QM lending rules. Some housing markets are more at risk for a downturn than others. Keep reading for the latest in appraisal industry news.

Appraisal bill passes with bipartisan support

The Homebuyer Assistance Act of 2019 passed with overwhelming bipartisan support in the House. The bill is supported by many major appraisal trade associations, including The Appraisal Foundation (TAF). In a press release on Friday, TAF stated, “this bill expands opportunities for state-licensed appraisers to once again perform appraisals for FHA loans without having to become state-certified.” Get the scoop here.

Lenders want to eliminate DTI cap

Four of the biggest mortgage lenders in the U.S.—Bank of America, Quicken Loans, Wells Fargo, and Caliber Home Loans—are leading a coalition that is calling on the CFPB to do away with the Qualified Mortgage (QM) rule’s debt-to-income ratio requirement. Read the full story here. Get additional commentary here.

Want appraisal industry news and insights delivered to your inbox? Subscribe to our newsletter.

Alternative valuations could drive up consumer costs

While alternative valuation solutions could speed up the lending process, they could also make the mortgage a higher-risk product and drive up interest rates for consumers. HousingWire sat down with David Lykken, Transformational Mortgage Solutions founder and chief transformational officer, to discuss how new valuation products are affecting the housing industry. Read the interview here.

Housing markets at risk for a downturn

Another recession is inevitable. Though it won’t be a repeat of 2008, housing markets in certain parts of the U.S. are more at risk than others. According to Redfin’s “Housing Downturn Risk Score” assessment, the metro areas least at risk for a real estate dip during the next recession are Rochester, Buffalo, and Hartford. The metros most at risk for a housing downturn are Riverside, California, Phoenix, and Miami. Get more details here.

Enjoy this article? Subscribe to our blog or follow us on Facebook and Twitter to see more content like this—including articles, resources, and the latest in appraisal news.

Want to contribute to our blog? Apply here to reach thousands of readers on a weekly basis and establish yourself as a thought leader in appraisal!

More than 200,000 real estate professionals got their start with McKissock. See what they are achieving.

Hear what they have to say.

See More Reviews