Mary Cummins, Real Estate Appraiser, Real Estate Appraisal, Los Angeles, California, Mary Cummins.

Mary Cummins is a real estate appraiser in Los Angeles, California with 38+ years of experience. Cummins provides real estate appraisals for banks, lenders, mortgage brokers, Appraisal Management Companies (AMCs), lawyers, Courts, factors and private parties for lending, lawsuits, probate, estate planning, divorce and all types of litigation. Cummins provides 1004, 1073, 1025 and other form reports, narrative reports and historical appraisals besides real estate research and appraisal advice.

Tuesday, April 8, 2025

Only Four Permits Issued in Palisades Fire Area in 90 days by Mary Cummins Real Estate Appraiser

92 days post fire and only four permits have been issued to rebuild in the Palisades. Two of the permits are just smaller repairs. These people are forced to rebuild and repair. These aren't all developer spec homes. It will cost over $70,000 each in permit fees to rebuild. The City needs to keep promises about waiving some fees and slashing red tape and time frames. This is going to be a long expensive haul no matter what the state and local politicians have promised. It always is.

A quote from the article "Although this area has been branded as uber-wealthy, the majority of Palisadians were middle-class, 25 percent were senior citizens, and the majority don’t have the money it will cost to rebuild. Unless there is some financial assistance, people will not be rushing to pay for plans to rebuild."

I work in this area. The wealthy people live in the rarer larger luxury homes on the ocean, coast or in the hills with full ocean, coast views. Most homes are older average sized standard construction tract homes with no views in the flats. Most homeowners are not uber wealthy. Sadly if they can't afford permit fees, they can't afford construction fees or holding costs. They will be forced to sell their lots and move to a much less expensive area.

One resident said they had received an invoice for $1,338 for a permit fee for the Grading Department to review a soils report. These homes already had approved soils reports for the previous home on file. They had to spend at least $10,000 for a new soils report. The time and money involved in new construction is crazy. I hate to say I told ya so, but I said that it'll take as much time if not longer than the Malibu Woolsey fire to recover and rebuild. As of February 2025 "Fewer than 40% of the 465 homes destroyed by the 2018 Woolsey fire in Malibu have been rebuilt." The scale of the Palisades fire is much, much larger. It'll take even longer and cost a lot more.

Full article from Westside Current.

#losangeles #palisadesfire #palisades #permits #marycummins #realestateappraiser

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.

Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin

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Mary Cummins of Cummins Real Estate Services has been in real estate since 1983, over 35 years. She is licensed by the Bureau of Real Estate Appraisers. Mary Cummins was an agent and broker licensed with the California Department of Real Estate selling residential income, commercial buildings, raw land and homes for Merrill Lynch Realty in Beverly Hills and Westside Properties in Los Angeles before concentrating on appraisals. Mary Cummins currently provides real estate appraisals, expert witness testimony, historical research, legal real estate research for mortgage brokers, banks, lawyers, factors, insurance companies, financial consultants and private individuals. Mary Cummins was born and raised in Southern California. Cummins attended Beverly Hills Good Shepherd Catholic School and Beverly Hills High School. Besides being on the Dean's list, Mary Cummins was a top ten national swimmer and competed on the men's water polo team. Mary Cummins began college at the age of 15 attending the University of Southern California on scholarship, majoring in Psychology/Sociology. http://www.animaladvocates.us http://www.facebook.com/AnimalAdvocatesUSA

Sunday, April 6, 2025

Is my Condo Blacklisted by Fannie Mae, Freddie Mac Lenders? List of Requirements by Mary Cummins Real Estate Appraiser

Ever since the 2021 Surfside condo collapse in Miami, Florida lenders are worried about the condition of older condominium projects. Lenders do not want to loan on a project where their equity is not secured by a livable building in good safe condition. For this reason many older condos are denied funding backed by Fannie Mae and Freddie Mac.

Mae and Mac maintain a "mortgage blacklist" of condo complexes deemed ineligible for their mortgage programs. I've emailed them asking for it but they refuse to share it publicly. The condo projects are denied due to concerns about inadequate insurance, structural issues or insufficient reserves. This makes it difficult for owners to sell or refinance using these loan programs. This "blacklist" is basically a list of condo complexes which have been denied funding based on these requirements. This does not affect non Mae and Mac mortgages but if the project doesn't meet these requirements, they may still be denied by other lenders.

The most important thing a condo owner can do to prevent their condo from being blacklisted is fully research the project before you buy, sell and as you own it. Be sure to get a copy of all documents especially the budget, inspection report and the condo reserve report. A good condo project will have all future repairs noted with 70% of the future repair costs already paid in a reserve fund. The funds come from the HOA dues.

The problems arise with older buildings which need more and more repairs as they age. HOA dues don't always cover the increasing expenses so dues must be raised from time to time. Special assessments are needed for the larger unplanned repairs. Some condo owners don't want to pay increased HOA dues or assessments because they are on fixed incomes. Condo owners must vote for special assessments. This is what happened with Surfside condos. They knew they needed major repairs but the collective owners refused to vote for the larger HOA dues and special assessments to get the needed work done. The building also had structural issues when it was first built which needed to be repaired.

Here's a more detailed breakdown of what Mae and Mac need to see before they will fund a condo. I got this information from Fannie Mae and Freddie Mac websites.

Reserve Fund Requirements:

Minimum Reserve:

Fannie Mae and Freddie Mac require that a condo project have a reserve fund that is at least 10% of the annual operating budget.

Reserve Study:

A current reserve study, conducted by a qualified professional, is essential to determine the adequacy of the reserve funding plan.

Funding Plan:

The reserve study should include a funding plan that outlines how the association will reach and maintain the minimum reserve level.

Reserve Study Content:

The reserve study should include an inventory of major components, a financial analysis, and an evaluation of the current reserve fund adequacy.

Reserve Study Frequency:

It's recommended to have a reserve study performed and updated every three years by a qualified professional.

Reserve Study Compliance:

The reserve study must meet or exceed requirements set forth in any applicable state statutes.

Delinquency Requirements:

Delinquency Limit: No more than 15% of the total number of units in a project can be 60 or more days delinquent in the payment of their HOA assessments.

Other Important Considerations:

Critical Repairs:

Mortgages secured by units in condominium or cooperative projects in need of critical repairs are not eligible for sale to Freddie Mac.

Lender Review:

Lenders are now required to review all structural and mechanical inspection reports, including reserve studies, completed in the prior three years from the loan project review.

Unfunded Repairs:

Lenders are prohibited from issuing loans for complexes with unfunded repairs totaling $10,000 or more per unit.

Special Assessments:

Lenders must obtain and review information for any special assessments imposed by condominium associations to determine if they address a critical repair.

Insurance:

The project must have insurance that complies with the applicable requirements.

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Mary Cummins

Saturday, April 5, 2025

AEI Finds Waiver Bias in GSE Appraisals by Mary Cummins Real Estate Appraiser

Interesting new study out by American Enterprise Institute (AEI) shows appraisal waivers have more bias than human appraisers. They are more likely to hit the needed loan to value (LTV) target to qualify for lower refinance rates and approvals.

"Evidence of Potential Gaming of Appraisal Waivers: Waivers Demonstrate More Anchoring than Human Appraisals. It is well known that LTVs are heavily anchored to certain percentages. Anchoring is the use of a value that ones knows in order to make a decision or value estimate. In the case of refis, these anchor points interact with the applicant’s perception of home value and the refinance amount and any cash proposed to be extracted from the home."

Appraisers don't know the LTV target or needed refinance value. The borrower who estimates the value of their own home obviously does. The borrower with help from the lender submits an estimate of value when using appraisal waivers. Looks like confirmation bias to me. I think these waiver robots need to take a mandatory CE class on bias just like appraisers. That will surely fix the problem ;-)

Read the full study here. Lots of great stats and charts like the one above.

https://www.aei.org/research-products/report/prevalence-of-gse-appraisal-waivers/

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Mary Cummins

Friday, April 4, 2025

Court Dismisses Discrimination Claims Against Appraiser by Mary Cummins, Real Estate Appraiser

Henley's Motion to Dismiss, Doc. #28, is SUSTAINED.

Link to case below

"A federal judge has dismissed all claims against an appraiser and their firm in a lawsuit alleging discrimination in a home valuation. The court found that the plaintiffs failed to establish a viable legal claim against the appraiser, ruling that their allegations did not sufficiently demonstrate wrongdoing under applicable laws.

The case centered on a disputed appraisal that plaintiffs claimed was racially biased. However, the judge determined that the appraiser’s valuation process did not support a claim of discrimination. With this ruling, the appraiser and their firm are no longer part of the lawsuit.

While claims against the appraiser were dismissed, the court allowed certain claims against a bank to proceed, focusing on the bank’s lending policies and loan approval decisions. These claims will be evaluated further as the case moves forward. Specifically, the plaintiffs claim the bank applied different loan-to-value (LTV) ratios based on race and national origin, offering more favorable terms to white borrowers. They also allege the bank refused to finalize a loan application with better terms due to discriminatory policies. Additionally, the plaintiffs argue the bank maintained a policy preventing borrowers from appealing appraisals they believed to be discriminatory. The bank contends that loan denials were based on credit history rather than discrimination, the court determined that the plaintiffs presented enough evidence for these claims to proceed.

Negligent Hiring, Training, and Supervision

The court also allowed claims against the bank regarding negligent hiring, training, and supervision of employees. Plaintiffs argue that bank employees failed to properly evaluate loan applications, process appraisal appeals and oversee contracted appraisers. The court found that these allegations were specific enough to warrant further examination.

Implications for Appraisers

This case—Carlos Turner, et al. v. Henley Appraisals, LLC, et al. (Case No. 3:23-cv-371) in the U.S. District Court for the Southern District of Ohio Western Division—highlights the importance of clear appeal mechanisms for borrowers who suspect discrimination and raises questions about lender oversight of the appraisal process. Appraisers should stay informed on evolving legal standards and lender policies to ensure compliance and fairness in their work."

Link to case ruling. Large file but only 28 pages.

https://cases.justia.com/federal/district-courts/ohio/ohsdce/3:2023cv00371/286793/33/0.pdf

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Mary Cummins

Wednesday, April 2, 2025

Caruso Palisades Village Will Reopen Beginning of 2026 by Mary Cummins Real Estate Appraiser

Rick Caruso stated today that the Palisades Village will reopen in the beginning of 2026. Caruso said they are waiting for the properties around them to be cleared of the toxic remains of the fire. They don't believe it will be safe until the cleanup is complete. They will also be refurbishing the mall.

Caruso stated that the 130,000 sf Palisades Village located at 15225 Palisades Village Lane in Pacific Palisades, California survived for a number of reasons. The Village which has 40 boutiques, restaurants and shops was built in 2018. It was built to survive wildfires. Caruso also hired his own private fire fighters and water teams to fight the fire.

www.palisadesvillageca.com

https://caruso.com/our-portfolio/palisades-village/

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Mary Cummins

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Tuesday, April 8, 2025

Only Four Permits Issued in Palisades Fire Area in 90 days by Mary Cummins Real Estate Appraiser

Sunday, April 6, 2025

Is my Condo Blacklisted by Fannie Mae, Freddie Mac Lenders? List of Requirements by Mary Cummins Real Estate Appraiser

Saturday, April 5, 2025

AEI Finds Waiver Bias in GSE Appraisals by Mary Cummins Real Estate Appraiser

Friday, April 4, 2025

Court Dismisses Discrimination Claims Against Appraiser by Mary Cummins, Real Estate Appraiser

Wednesday, April 2, 2025

Caruso Palisades Village Will Reopen Beginning of 2026 by Mary Cummins Real Estate Appraiser