CFPB Reverses Pandemic Flexibilities, Nearly 40% of Homes Are Selling Above Asking Price, and More Appraisal News

House real estate, mortgage graph with ascending price arrow and woman's hand

The CFPB reverses several temporary pandemic flexibilities put in place last year to protect consumers. A record-breaking 39.2% of homes sold above list price in March, with San Jose, Sacramento, and Salt Lake City among the top real estate markets driving the all-time high. A new report finds that online auctions reduce REO holding times by 52%. Dustin Harris (a.k.a. The Appraiser Coach) writes that Fannie Mae is not coming out with any new appraisal forms. Read on for the latest in appraisal news.

CFPB reverses pandemic flexibilities, vowing enforcement

Effective Thursday, April 1, the Consumer Financial Protection Bureau (CFPB) has rescinded seven of its temporary policies originally put in place to protect consumers during the COVID-19 pandemic, according to this HousingWire article. With the temporary pandemic flexibilities now reversed, the CFPB is to exercise the “full scope of its supervisory and enforcement authority” on HMDA, appraisals, and more. Read the full story here.

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More homes than ever are selling above asking price

According to this story from Redfin, “Nearly 40% of homes in the U.S. are selling for more than their asking price, the highest share on record.” San Jose, Sacramento, Salt Lake City, Austin, and Denver are driving the all-time high, with three out of five homes selling above their asking price in the past month. “Nationwide, 39.2% of homes sold above their asking price in the four weeks ending March 21, a record high that comes as the pandemic-driven housing boom continues and a lot of buyers vie over limited inventory,” says the report. Find more details and charts here.

For additional info, see Redfin’s housing market update from last Friday.

Online auctions reduce REO holding times

This DSNews article states that “online auctions reduce REO holding times by 52% or 139 days,” according to Auction.com’s 2021 Seller Strategy Report. Auction says the report identifies distressed disposition strategies that yield better outcomes for mortgage servicers, distressed homeowners, and underserved neighborhoods. “Shorter REO holding times not only mean lower carrying costs and less risk for the servicer; they also mean much-needed affordable inventory can be returned to the retail market faster,” said Walter Skrzynski, SVP, Auction.com. Read the full story here.

Interested in REO appraisals? Check out our top-rated CE course, Appraisal of REO and Foreclosure Properties.

Fannie Mae is not developing new appraisal forms

“Despite what rumors you may have heard, Fannie Mae is not coming out with any new appraisal forms,” says Dustin Harris (a.k.a. The Appraiser Coach) in this article written for Appraisal Buzz. “Of course, I am playing with you a bit,” he continues, “they are coming out with a new portal of course—just not new forms.” Harris goes on to discuss how the reporting process will change, and whether this change is a good thing. Read the full article here.

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