Introduction and Course Overview & Objectives Introduction of instructor Attendance Acquaint students with content and text Lecture (15 minutes) 0-15 Chapter 1 How Did We Get Here? Overview Pg. 1, PPT 2-5 15 18 Contributors to the Real Estate Crisis Inflated Home Values Risky Loans Refinancing Yield Spread Premiums Fraud Lending Before the Bubble Burst Changes on Wall Street Underwriters Aftermath of Bubble Bursting Lending Appraisal Pg. 2-5, PPT 6-16 Pg. 5-7, PPT 17-20 Pg. 7-10, PPT 21-22 Some of the causes of the current real estate crisis What the lending industry was like before the bubble burst How the bubble burst has affected the lending industry 18 23 23 25 25 30 Summary/Q&A Pg. 10 30 35 Quiz Pg. 11, PPT 23-32 35 45 Chapter 2 Flipping Overview Pg. 13, PPT 33-36 45 47 The Flipping Process Legitimate Flips Illegitimate Flips Flipping New Houses The FHA and Flipping Fraud Appraisers and Fraud Pressure Put on Appraisers USPAP as Fraud Prevention Common Fraud Scenarios Involving Appraisers Pg. 14-17, PPT 37-41 Pg. 17-20, PPT 42-45 What property flipping is, and what makes it legal or illegal How appraisers are affected by, or involved in, fraud How USPAP helps to prevent fraud 47 52 52 60 Summary/Q&A Pg. 21 60 65 Quiz Pg. 22, PPT 46-55 65 75
Chapter 3 Fraud and Predatory Lending Overview Pg. 23, PPT 56-59 75 77 Predatory Lending Main Street vs. Sub-Prime Lending Other Predatory Practices Fraud and Conspiracies Identity Theft One-Stop Shopping Pg. 24-29, PPT 60-66 Pg. 29-30, PPT 67-70 How lending varies depending on the lending institution, and how those differences lead to fraud opportunities 77 85 Various fraud schemes 85 90 Summary/Q&A Pg. 31-33, PPT 71-76 90 95 Quiz Pg. 34, PPT 77-86 95 105 Break 105 110 Chapter 4 Foreclosures and REO Listings Overview Pg. 35, PPT 87-91 110 115 What is Foreclosure? Cash for Keys Physical Eviction The Trash Out Securing the Property Appraising and Otherwise Valuing the Property As-Is Value As Repaired Value Quick Sale Value Rapidly Changing Markets Competing Listings Fannie Mae s 1004MC Form REO, Foreclosure, and USPAP Pg. 36-37, PPT 92-94 Pg. 37-42, PPT 95-101 Pg. 42-45, PPT 102-103 An overview of the foreclosure process The real estate professional s role in the foreclosure process When to determine the as-is value, as repaired value, or quick sale value of a property Why the rapidly changing market requires special forms when performing an appraisal 115 130 130 145 145 155 Summary/Q&A Pg. 45 155 160 Quiz Pg. 46, PPT 104-113 160 170
Chapter 5 Valuing Foreclosures (Case Study) Overview Pg. 47, PPT 114-115 Lecture 170 180 Your Assignment Pg. 48, PPT 116 How to look at market data 180 190 Pg. 48-50, Research and MLS data to help value 190 200 PPT 117-122 the subject property going Property Pg. 51, PPT 123 through foreclosure 200 205 Inspection Time for Independent Independent Pg. 52, PPT 124-125 205 215 Analysis Analysis Q & A PPT 126-136 Group Discussion 215 230 Lunch Break 60 minutes Chapter 6 As-Is vs. As Repaired Overview Pg. 53, PPT 137-140 230 232 From One Extreme to Another Estates as Foreclosure Subjects Pre-Foreclosure Decisions The Totally Trashed Property The Neighborhood Condition Market Conditions Buyers: Owner/ Occupiers vs. Investors The Cost Expert The Lender s Decision Property A Property B Property C Cost of the Lender s Decision Pg. 54-55, PPT 141 Pg. 55-60, PPT 142-150 Pg. 60-61, PPT 151 That foreclosures and REO properties can be in many different conditions How the foreclosure timeline can affect a property s condition The factors to take into consideration when appraising a foreclosed or REO property How the lender makes its decision and that it may not always follow an appraisal s conclusions 232 240 240 255 255 270 Summary/Q&A Pg. 61 270 280 Quiz Pg. 62, PPT 152-161 280 290
Chapter 7 The 1004MC Form (50 minutes) Overview Pg. 63, PPT 23-32 290 292 About the 1004MC Form Requirements Why Did Fannie Mae Develop This Form? Analyzing a Market Issues and Problems The Pool Using the 1004MC Form Absorption Rate Meaningful Analysis Anomalies in the Market Covering Yourself: Reviews and AVMs The Bottom of the 1004MC Form More Disclaimers Pg. 64-65, PPT 166-168 Pg. 65-67, PPT 169-171 Pg. 67-69, PPT 172-175 Pg. 70-72, PPT 176-188 The purpose and intent of Fannie Mae s 1004MC Form The major issues and problems regarding the 1004MC Form How to use the 1004MC Form How to protect themselves and their appraisals by using adequate comments in their analysis 292 297 297 300 300 315 315 325 Summary/Q&A Pg. 73 325 330 Quiz Pg. 74, PPT 189-198 330 340 Break 340 350
Chapter 8 Future Challenges for Appraisers Overview Pg. 75, PPT 199-202 350 352 HVCC Appraisers and Pressure The HVCC What Is it and What Is it Not? AMCs Pushback on the HVCC Fannie Mae and Freddie Mac Respond The Appraiser and the HVCC New Business AVMs and Other Products BPOs The Appraiser and AVMs and BPOs Changes to USPAP Changes to the Ethics Rule Changes to the Competency Rule Pg. 76-77, PPT 203-206 Pg. 77-79, PPT 207 Pg. 79-81, PPT 208-209 Pg. 81-82, PPT 210-211 Pg. 82-84, PPT 212-213 What the Housing Valuation Code of Conduct (HVCC) is and its purpose How the HVCC affects the appraisal and real estate industry What opportunities are available for appraisers outside of traditional lending appraisals The changes to the 2010-2011 USPAP and what it means for appraisers 352 360 360 365 365 370 370 380 380 390 Summary/Q&A Pg. 84 390 400 Quiz Pg. 85, PPT 214-223 400 410 Course Conclusion Wrap-up Distribute certificates (if applicable) 410 420 Total Class Minutes 420 Total Class Hours 7