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, October 29, 2024

FHFA Allows Alternative Valuations with Higher LTV Ratios by Mary Cummins Real Estate Appraiser Los Angeles California

mary cummins, real estate appraiser, los angeles, california, real estate appraisal, fhfa, ltv, avm, appraisal, real estate,low income, poc, great recession, foreclosure

The Federal Housing Finance Agency FHFA has expanded the eligibility for alternative appraisal methods on purchase loans by increasing the allowable maximum loan-to-value (LTV) requirements. The maximum LTV ratios will increase from 80% to 90% for appraisal waivers and from 80% to 97% for inspection-based appraisal waivers.

“To be clear, the expanded eligibility of appraisal waivers does not constitute an expansion of a credit box, but rather it will allow more first-time home buyers, and particularly low- and moderate-income first-time homebuyers, to recognize the benefits associated with appraisal waivers,” Naa Awaa Tagoe, deputy director of the division of housing mission and goals at the FHFA, said on stage."

More purchase loans will not utilize a regular inspection appraisal by a licensed real estate appraiser. They will be using non-licensed non-appraiser property inspectors and AVMs Automated Valuation Methods similar to Zillow. This means lenders can use their AVMs, in house approval departments to get higher values so they can approve more loans so they can make more money. These loans will be riskier to new buyers, investors and the government. The housing industry players have been directly lobbying the government to do this for years now under the guise of helping lower income "save money" and fighting nonexistent "appraiser bias."

Never forget the Great Recession. Real estate prices were booming and fewer lower to mid-income, first time buyers could afford to buy a home. The people complained it was discrimination against lower income and POC. There is a correlation between lower income and POC. The correlation is based on socioeconomic factors and not race. There are also plenty of lower income non POC.

The government stepped in to "help" by lowering credit and loan requirements. More lower income first time buyers were then able to buy a home at the peak of the market for almost no money down. They had very little to no savings and were spending most of their income on home expenses. They were set up for failure by the government while lenders made lots of money. Lenders support relaxing requirements so more will qualify so they can make more money. Lenders lobby the government to reduce requirements while saying they just want to help poor people. This actually helps wealthy people at the expense of poor people just like payday loans.

The real estate bubble of course burst and those people ended up underwater. Low teaser rate loans adjusted, some had financial emergencies and they couldn't pay their sky high mortgage, insurance, property taxes and property maintenance. It was cheaper to rent than own. The real estate market collapsed and people lost their homes in foreclosure. They lost more than just the cost of the home due to associated costs and fees. The psychological effect on the families was devastating. Oddly enough the people and government blamed appraisers even though it was the fault of the government and the bubble bust real estate market driven by buyer demand. Appraisers just report the market. We don't set it.

Today we're in a similar though slightly different situation. We're in another real estate upswing caused by previous lower interest rates and severely restricted supply due to rate lock. Everyone wants to buy a home that will appreciate 50% like they have in the last few years. They are again complaining to the government that it's discrimination against lower income and POC because they can't afford to buy a home today.

People are blaming the government for the wealth gap which they say is mainly caused by the home ownership gap. The wealth gap is mainly caused by the income gap. Owning a home alone is not the cause of the wealth gap. You need to be able to first afford to buy and own a home by having higher income, more savings and good credit. Higher income, savings, good credit must come first otherwise you just saddle yourself with debt and higher monthly costs you can't afford. You'll lose your home if you have one financial emergency.

Government did the same thing with student loans. "If you get a college degree, you'll make more money. Here are loans so you can afford to go to college." You'll also end up with $100,000 high interest debt which make it impossible to pay bills, have children, start a business or save to own a home. The correlation between having a degree and higher income is related to first being able to afford to pay for and go to college. It's not the degree itself as many people have realized. Same with owning a home.

The government again responds by lowering loan requirements. Now you can put almost nothing down and get stuck with hefty mortgage payments, rising insurance costs, high property maintenance costs and rising property taxes at the top of the market. Property taxes, insurance increase as property value increases. Insurance costs are through the roof today due to natural disasters exacerbated by climate change. The appraisal waivers and use of value acceptance, AVMs make the loans even riskier for buyers and investors. It's even riskier today as we are at the peak of the market. Two to five years ago and it would have made a little sense. The government always reduces regulations at the peak of the market because of lack of affordability and politics.

AVMs will over value lower priced properties which are generally in inferior condition, inferior locations, smaller than average, have deferred maintenance, include buyer concessions for repairs/costs... These are the properties lower income people are buying because they can afford them because they cost less. The government is again setting these people up for failure. They always do this at the peak of the market.

I was screaming from the rooftops about this issue before the Great Recession. I'm now screaming from the mountain tops. Nothing will change. The government is hurting the people they claim they want to help.The election year campaign promises to get votes is making it worse. You know they will again blame real estate appraisers for a downswing even though we didn't appraise the properties that are most likely to be foreclosed. It's déjà vu all over again.

https://www.fhfa.gov/news/news-release/fhfa-announces-updates-to-enterprise-policies-on-appraisals-loan-repurchase-alternatives-and-pricing-notifications

November 1 Jeremy Bagott just wrote a good piece on this.

https://mailchi.mp/257006d81c5f/days-from-election-agencies-make-good-on-final-sop-to-housing-lobby-10896727

https://www.housingwire.com/articles/fhfa-to-allow-alternative-appraisal-methods-on-purchases-up-to-97-ltv/

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

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

Monday, October 28, 2024

Appraising Homes with Solar Power Systems Class AjO by Mary Cummins

I just took the Solar PV: Technology and Valuation class offered for free by AjO Classes and sponsored by CA IOUs (California's Electric Investor Owned Utilities). It was very interesting and I learned a lot. They of course explained everything we should know about inspecting and appraising the value of a solar power systems. Then they went into using the three different approaches to value, i.e. sales comparison, cost and income.

You need a bit of data in order to determine the value. That data isn't always readily available for the comp properties. You can use cost or income approach if there's isn't enough market data in your area. If you give most weight to sales comparison approach, cost and income data are only supportive so ...

In order to calculate the value of a solar power system (not solar thermal for heating water) you need to know if it's owned versus leased, power of the system size in kWh and age. Assume 25 year life. Leased systems add no value. You'll need to collect data such as contract with power size, original price, current price of similar new system and maybe power rates. There are free online calculators available.

I'm pretty sure the solar people got together to try to help educate the agents and appraisers about the value of solar systems in home values. Most don't mention it or include data or value. This upsets sellers and solar companies. They want people to see the value in the systems. I was always taught to do regression analysis to see if there is a market reaction. Issue again is sufficient data.

A few takeaways. You need a bit of data to appraise the value of a solar system. You need to know power, age of solar system of comps. As rates continue to rise the value of solar systems will increase. The cost of new solar systems has come down dramatically. If you depreciate an older system, it will probably be higher than buying new. Use the lower of the two values. People buy homes with solar systems for more than just energy cost savings. I highly recommend the class.

"Appraisers and Realtors will advance their credibility and competency to better serve their clients with solar-powered homes.

Newly constructed homes have been required to have solar as of 2020 and existing home installations remain on an ongoing upward trend.

How much value does solar add?

What is the most essential number we need related to valuation?

While saving money is the primary motive for homeowners to invest in solar, CA building codes and energy policies are key market drivers as goals prioritize decarbonization; all-electric buildings powered by solar.

Attendees will be better equipped to represent solar assets accurately in sales, competently determine value, and be credible guides for buyers and sellers.

Course Highlights

The first question to ask about solar systems

The most important number to obtain related to valuation

How to determine value of solar PV: 3 appraisal approaches

Key points to include in listings and appraisal reports

How utility rates impact purchasing decisions and value

Components of solar systems and what to look for during inspections

Context: CA energy policy

Resilience: Solar plus storage to leverage TOU rates and power through extreme events

Future influencers: Evolving challenges in managing our power grid

Access to free online tools to inform and improve professionalism

Learning Objectives

Answer essential questions regarding the valuation of a solar system

Indentify components of solar systems

Be aware of variations in utility rates and their impact on value

Understand motives and market influencers of homeowner decisions

Determine the value of solar PV systems: 3 appraisal approaches

Accurately represent solar in listings including vital points to inform value

Stakeholder’s shared pool of knowledge to support fair valuations

Target Audience:

Real estate appraisers

Agents

Lenders

Related associates

Learning Level: Intermediate

*Course is designed for those familiar with valuation principles

Continuing Education Credits: 3 hours continuing ed. BREA, DRE, BOE "

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Mary Cummins

Saturday, October 12, 2024

Cause of Lack of Trees in South Los Angeles, Mary Cummins, Real Estate Appraiser

I just read the LA Times article "Study reveals attitudes about lack of trees in South LA." FTR I live in South Los Angeles in an area that has both a lot of trees and no trees. I choose my walking route based on the streets that have trees that can provide me with sun protection and protection from the summer heat. I can feel the huge temperature difference when I walk the two blocks with no trees to get to the one block with trees. The areas in SLA with trees have nice well maintained homes. The areas without trees have less well maintained homes, apartments, commercial and industrial buildings.

My first issue with the article is it starts off with a very racist comment by an alleged community leader. It's as follows: "Our lack of trees is not an accident or coincidence. It is a result of historic patterns of discrimination, disenfranchisement and racist planning practices." This is false. There is a lot more to the history of South LA and trees. Yes, racism and discrimination exist in Los Angeles but there has never been a policy where no trees were planted in areas because of race.When you automatically accuse everyone of racism and discrimination they are less inclined to want to help. You are attacking the people from whom you are asking for help which makes no sense.

First some history. Originally this land belonged to Native Americans for tens of thousands of years. Later the Spaniards stole the land from the Native Americans calling it New Spain in 1542. Spain claimed the specific area of California in 1769 and Los Angeles was established in 1781. Mexico got their independence from Spain in 1810 and controlled the land. California became a nation in 1846 independent from Mexico. In 1850 California became a US state. California was a free state and didn't have slavery but did have Native Americans and Mexicans.

Southern California was mainly rolling hills with sage scrub and grassland. Most of South Los Angeles didn't have a lot of trees naturally. The area is mainly flat land. It was used for farming because it was flat with few trees. The few trees were near creeks and rivers or in the higher hills. We are in Sunset Climate Zones 18–24. Only very hardy small trees, shrubs grow in the flat areas naturally though we have larger oaks, sycamores, pine trees, fan palm trees... near areas with more water. We are not a forest but a drier desert area without a lot of natural trees.

Around 1880 they started building a lot of homes. Most developments cut down native plants, trees then planted a lot of non native trees around the homes and lining the streets on the parkways. Some still exist today but sadly trees don't live forever so many have died. Many trees were not good choices for our climate, drought conditions so they died.

From 1880 to 1940 most of South LA was middle class to more affluent. Around 1900 some more expensive developments didn't allow blacks, Mexicans, Indians... The LA Sugar Hill case ended housing segregation in 1945. School segregation ended 1947. Fair Housing Act was 1968. This happened all over the entire US.

Starting around 1945 some people left South Los Angeles and moved to more affluent newer areas. The reasons are because the housing stock was getting older and dilapidated as most homes were built 1880-1920. It was caused partly by the real estate cycle of decline. People wanted to move to newer developments. It was also caused by scaremonger tactics from real estate investors who scared some white people causing "white flight." They were told their properties would be worth pennies once other people such as blacks lived near them. Property values went down and continued to go down as the area fell into disrepair which is called decline in real estate cycles. People weren't maintaining the homes or the trees.

As the property values went down making it more affordable the percentage of blacks, Latinos went up. There is a correlation between income and race. Whites make more money than blacks, Latinos. People who make more money have more money and buy more expensive homes in more expensive areas. This has nothing to do with the Planning Department. Over time more POC lived in these more affordable areas of South LA. Over time the population has become mainly Latino then white then black. LA City Census shows 64% Latino then white, black equally. It varies by poll type and specific area. Little Honduras is more Latino.

Lower income people tend to live in cheaper smaller homes, duplexes and apartments. For this reason there is a higher density of people in lower income areas. Because of income correlation this means there are more blacks, Latinos in these areas. People buy what they can afford. There are also lots of poor whites here. This explains the people to tree ratio in the Times article. It's not racism but economics 101.

Some people, neighborhoods, cities, organizations would plant new trees as older ones died from age, bark beetles, drought, damage from utility line tree maintenance programs... Those are generally middle income areas and up in Los Angeles. Many times the homeowner, property owner planted a new tree to replace dead ones in front of their property. Legally property owners are responsible for maintaining the parkway and trees in front of their property. That is the little strip of land between the street and sidewalk. People are supposed to maintain the city trees on their parkway though the city will trim it. Many in lower income areas do not maintain the trees on the parkway. Most people are lower income tenants in these areas. Tenants don't maintain anything. Landlords don't live there and don't really care. Not as many are owner occupied homes. Property owners are the main reason there are no living trees on the parkways in those areas.

Property taxes from specific areas generally pay for city repairs and improvements in those specific areas. These areas have lower values so they have less revenue from property and other taxes. They have less money in their budgets for tree planting. Generally politicians will pass new programs based on what the constituents want. They take polls. The people living in the areas wanted more police protection, general clean up, affordable housing, parks, school improvements... They did not want the few city dollars spent on new trees. It's what they wanted. Tenants and landlords vote equally.

After many years with no new trees planted and older ones dying there are fewer trees in South LA today. Some nonprofits and neighborhood organizations started fundraising to buy and plant trees in South LA. They planted some trees. Many were not watered or cared for and they died. Some were stolen. Others were vandalized. I've seen all of this first hand. I'd replant the ones ripped out by vagrants. I'd water some. I picked up two that were knocked over by cars, replanted and restaked them only for them to later be stolen. I saw someone load one in a truck but he had no license plate so I couldn't report it like that would have done anything anyway.

Some see new trees as a sign of "gentrification" so they destroy the trees which is crazy. Gentrification is just the real estate cycle of revitalization. It's been happening all over the world since the beginning of time. People get pushed out of more expensive areas so they move into adjacent areas which are more affordable. This causes home prices and rents to go up in those areas. Some existing tenants will have rent increases as the area improves. I've found in my area which is mainly Latino that more affluent Latinos are replacing less affluent Latinos. It has nothing to do with race or color but money. It's based solely on economics. In one case middle income Latinos moved into an area of lower income Latinos. The lower income Latinos broke windows, graffiti'd the businesses of the middle income Latinos because they didn't want their rent to rise. What really gets me is the lower income people who own the property are happy as hell to sell for 10x what they paid for it. It's only a few tenants who complain. Since the beginning of time people would just move to another area they can afford but today they protest and blame others and call people racists.

All that said we do need more trees in South Los Angeles and other areas with few trees. The City of Los Angeles has had tree planting programs called "City Trees," "Million Trees LA" for years. They give away free trees all the time. In 2006 the goal was to plan a million trees in a few years. It was not that successful because people didn't care for the trees and they died. They were also not the best trees. I saw one which was a purple potato vine bush pruned into a tree. They are ugly if you don't prune all the time and they provide no shade. I think the tree provider just wanted to make a lot of money off the city.

Any program for new trees must work with the community where they will be planted. People need to sponsor and volunteer to maintain the trees block by block. I can only handle the blocks I walk which is two miles a day. It should probably be a paid group of tree guardians which would also provide some jobs to locals. They need to talk to the homeowners and the homeless people living around the trees. The city, block club, tree group, community organization...can all work to plant and cultivate the trees but if homeless people, vagrants, others steal and destroy them, there will never be enough trees. As areas are revitalized there will be more successful tree plantings.

After I wrote this I took a walk in my area of SLA. I noticed trees were dead in front of apartment buildings, commercial buildings more than homes. Apartment and commercial building owners don't generally live at the property they own. They don't care about trees. They also probably don't realize it's their responsibility to maintain the parkway. No one enforces maintenance of the parkway or trees. One idea to aid in enforcement would be using Google maps street view. You can clearly see if there are trees just looking at the maps. They now even have green colored areas for trees on the maps. Sure Google would write a quick script to get addresses that don't have trees so notices about free trees could be sent with their property tax statements. Or maybe the city can instead of giving away free trees for people to plant on their private property they can go plant some on the parkways where they are missing. They will need to maintain them and should be drought tolerant, hardy and a type of tree people won't want to steal. No one waters the parkway in lower income areas.

An education campaign about maintaining the parkway might help. Another idea would be to make it mandatory to have a tree of certain species on parkways every so many feet maybe 25'. Average lot is 50 wide so two trees in front of each house away from street signs, utility wires sounds good. One would just have to enforce the tree mandate. If someone doesn't plant or request to have a tree planted by the city or doesn't maintain a tree, they can be fined, have a fee added to their property tax. A professional organization can then be paid to plant and maintain trees. At the last house I owned I added a sprinkler system to my parkway. I also paid an arborist to give me advice to make my tree healthier.

The problem with my idea is that lower income people will complain about having to pay a fine or do work to plant or maintain a tree. They will scream discrimination and blame it on the "racist" city. I have no faith that anything can be done because the people complaining about lack of trees don't want to do anything about it. They don't even want to maintain the parking strip which is their legal and financial responsibility. After following the tree issues for years I throw my hands in the air on this one.

Here is the LA Times link or you can read it for free via Yahoo news by searching the title.

https://www.latimes.com/environment/story/2024-10-11/there-is-no-easy-fix-study-reveals-attitudes-about-lack-of-trees-in-south-l-a

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Mary Cummins

Wednesday, October 2, 2024

Chicago Urban League, Chicago Association of Realtors, Preparing for An Appraisal, Comments by Mary Cummins, Real Estate Appraiser

I attended Chicago Urban League, Chicago Association of Realtors Zoom webinar today on Preparing for an Appraisal. Good questions and answers. Below is the summary. My notes, comments below that. I'll post link to video if, when they release it.

"Preparing for An Appraisal.On October 2nd from 7:00-9:00 PM, join the Chicago Urban League's House and Wealth Committee for part one of a three-part virtual series. During the event, you will gain valuable insights into the appraisal process and learn how to advocate for fair valuations.

Learn from top experts in the real estate field on how to prepare for an appraisal and advocate for your property’s value. Whether you’re a Realtor, Realist, or a homeowner, this virtual event is packed with valuable insights.

Moderated by the Chicago Association of Realtors President Elect and Chair of the Chicago Urban League’s Housing and Wealth Committee, Lutalo McGee, our esteemed panelists include,

President Sanina Jones of the Dearborn Realtist Board (DRB),

President Erika Villegas of the Chicago Association of Realtors (CAR) and

Tiffany Jimenez of the National Association of Hispanic Real Estate Professionals (NAHREP) Chicago

Tom Schurer of Real Valuation Services

This 3 part series represents a joint effort of the CUL, CAR, DRB, NAHREP, NHS, RAINBOW PUSH AND NAACP- South Side to empower real estate professionals and consumers about the appraisal process and how best to advocate for home buyers and sellers to ensure they receive a fair valuation based on industry best practices."

Mary Cummins notes and comments on the meeting.

Question: Can I advocate for my value, for what I think it's worth?

Answer: Panelists said yes. Some said you can offer comps, contract. Appraiser said "Nobody knows a home better than the homeowner. It's a matter of pride."

Question: Why do consumers think they can't talk to the appraiser?

The panelists said you can and should talk to the appraiser about your value and what you think it's worth.

I sent in this comment: "Borrower can give comps, contract, list of improvements ....but can't try to influence the value. "1090.5. (a) No person with an interest in a real estate transaction involving an appraisal shall improperly influence or attempt to improperly influence, through coercion, extortion, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan."

My comment: It's a crime and you will be denied your loan if the appraiser feels you tried to influence their value. Don't say "I need $xxx,000 to get the loan," "the house is easily worth $xxx,000." Feel free to give list of similar homes of the same size, condition which have recently sold in the same area. Don't state a dollar value for fear appraiser may think you are trying to influence.

Question: Can I ask appraiser if they know the area, are competent?

Answer: Yes, but be nice and polite.

Question: Should I communicate with the appraiser in writing or on the phone?

Answer: Put things in writing so it will be included in the work file. Send it to them before the inspection. (My comment. Be polite and factual. Don't try to influence the dollar value).

Roberto Interiano, Lender, then read my comment and others agreed.

Question: Can I order my own appraisal if it doesn't have to do with a loan?

Yes, if you just want to know the value. The bank has to order their own appraiser for their appraisal for a loan.

Question: What should I have ready for the appraisal?

If you are selling, make sure your house is in show ready condition. Have any documents ready for inspection such as the survey, list of improvements.

Question: Should I remove photos from my home?

Answer: Erika Villegas: Yes, remove religious and political items. Remove personal photos because the listing photos could end up on the internet. Remove photos of people because there have been media articles which show some didn't get the "proper value" because of photos of some people.

My comment: All real estate agents tell all sellers to remove personal items, clutter and make sure home is clean and presentable. This is especially important for listing photos, showings. There are a lot of media articles out there about people white/black washing their homes to remove any trace that the owner may be black, Latino... Some articles say the value went up because of, after white/black washing. That is probably not the cause of the value change. It's a false narrative caused by the media, politicians and others.

Lutalo McGee: What about removing personal photos?

Sanina Ellisa Jones: An appraisal is subjective. It's problematic and why appraisals come in lower in our (POC) economy, community. It's because of racism, redlining, discrimination from early 1900's. The maps said risk is equal to blacks. African Americans were marked red, hazardous. It's no longer legal but still subjectivity exists from that practice. Take down religious, political items. I shouldn't have to remove my face because the value could be lower. Homes are devalued based on who lives there. We shouldn't have to do it but we should do it for the value. Values shouldn't be based on photos.

My comment: Appraisers value the home and not the occupants. Home appraisal is a math formula. AVMs use the same formula but appraisers have all the data needed to ascertain value. We generally don't even know race, color of owner, borrower or of the comp homes that sold, are listed. It's a false narrative. That said I agree that you should remove personal items, photos, religious, political items for the listing photos, showings. Buyers want to imagine themselves in the home and not you. They want a blank slate. Homes look bigger without clutter. There are many articles about this online. Appraisers blur all photos that include people, religious items, political items, things such as gun collections, "personal" items... Even if you don't remove your photos, items, we will blur them.

Her definition of redlining is also incorrect. 70% property in HOLC map area D or red were owned by white people. While blacks, Latinos ... lived there whites owned most of the property. Whites were the main ones who had to pay higher interest rates to get the loans. Race wasn't included in all maps. Race was one of many, many factors included in the maps. We use all those same factors today except race. The factors i.e. property age, condition, value, predicted depreciation, income of residents, location near hazardous sites, freeways...are still used today. If you removed race from those maps, they were still just as accurate for risk. Race had NOTHING TO DO with the value or risk. 1935 HOLC program brought lots of money to those areas. Before this there were no loans or they were small and super expensive. Most areas in D zones are now totally refurbished and many are affluent areas. The HOLC program money actually helped. There is a lot of research which proves this but everyone likes to repeat the false stories. I remember when I first heard about redlining around 1983. I also believed that false shit until I did some research and educated myself. Here's an article I wrote about redlining citing the research.
https://mary--cummins.blogspot.com/2021/05/redlining-in-home-loan-financing-mary.html

Lutalo: Should people put an appraisal pkg together?

Sanina: The listing agent advocates for the home value. Have a CMA, floor plan, survey, size, neighborhood details, upgrades, remodel, energy features to show appraiser how listing agent determined the list price.

My comment: The listing agent should already have a property package. Appraisers are open to receiving data. A list of similar sold, listed comparables is good. List of improvements, floor plan if available, survey, energy features... A list of maintenance items is fine but appraisers assume properties are maintained. Maintaining your property doesn't give you extra value.

Appraiser Tom Schurer: Tell the appraiser if there are multiple offers. Let the appraiser know what's happening in the community, developments.

Lutalo McGee: What about new rehabs in area where there aren't any new rehabs sold.

Schurer: You make time adjustments on closed sales, use pending sales.

Lutalo: What do appraisers look at when determining value? What should homeowners do to their homes to prepare?

Schurer: Paint it. It gives a good clean feel. Kitchen, baths drive home values, school district, neighborhood. Nice curb appeal.

My comment: If your home desperately needs a paint job, do it. Just don't expect 100% return on investment. Appraisers look mainly at location, size, bed/bath count, kitchen/bath condition in that order. Don't add a new kitchen/bath for an appraisal. You won't get 100% return on investment in terms of value. It's good to do it anyway if most homes have renovated kitchens, baths and you can enjoy it while you live there.

Question: What if appraiser asks for Tidewater?

Answer: Schurer: It means the appraiser needs help. They can't get value needed. They ask agent for help. Reconsideration Of Value ROV process. The new program looks good. Should be done by end of October and we can talk about it.

My comment: Tidewater: If the VA appraiser believes that the actual home value will be lower than the listing price, they will invoke tidewater. This is simply a heads up that gives the listing agent 48 hours to support the listing price. The agent will then provide similar sold comparables which support the list or contract price. I've found most of the time someone enlists Tidewater, contract/list price was over market value.

Question: How do we navigate AI.

Answer: Schurer: AI will change our world and real estate. RE is a people business. We laughed at early AVM like Zillow. It's real good these days. My future will be reconciling data sets, not giving opinion of value. I will just say why a dataset is wrong for the value of a home (how would he know if he didn't appraise it?) We will still need our smart human brains. Play along. Don't be afraid.

My comment: AI, AVMs are only as good as the data they have. GIGO, Garbage In Garbage Out. AVMs only work with newer, median size, median priced homes in average to good C3 condition. They don't work on older custom homes in fair/vastly improved condition with no view/views on irregular lots... We will still need appraisers for those types of homes.

CEO Urban League Karen Freeman Wilson: We need to know historical context, how the past affects the present. We need to know how to eliminate barriers to home ownership.

My comment: Totally agree.

The next webinar in the series will be with appraiser Chris Posey. Posey will teach us how to read an appraisal report and spot red flags. My coment: Chris Posey is very experienced and knowledgeable. He'll be giving great advice.

Saturday, September 28, 2024

Racist Los Angeles Planning Report - "Historical Housing and Land Use Study" written by Architectural Resources Group, comments by Mary Cummins Real Estate Appraiser

mary cummins, real estate appraiser, real estate appraisal, los angeles, california, planning, zoning, architectural resources group, katie horak, elysha paluszek, morgan quirk, racist, racism, historical housing land use study

I just started reading the land use report "City of Los Angeles Historical Housing and Land Use Study" written by Architectural Resources Group, Inc., Katie E. Horak, Elysha Paluszek and Morgan Quirk which was paid for by the Los Angeles City Planning. This "report" is not only racist but it makes clear the authors don't understand real estate and basic economics. Yes, racism exists. Yes, the world, US and LA have a racist past and still deal with racism today. That doesn't mean income and wealth disparities today in LA are caused by and can be fixed by the current actions of Los Angeles City Planning and Zoning Dept. I now see why the city was reluctant to share this ridiculous report linked below. I also see why it took so long for ARG which is controlled by a 100% white leadership corporation to finish and release the report. Even they knew the report written by lower level writers was too extreme. They should have stuck to the facts instead of adding the slanted racist commentary.

https://planning.lacity.gov/odocument/3eaaa5ce-d96c-4325-a1b8-557218bbd0f5/Historic_Housing_and_Land_Use_Study.pdf

This was the alleged goal of the report. "Architectural Resources Group (ARG) was retained by the City of Los Angeles to prepare this Study as part of the update to the 2021-2029 Housing Element of the General Plan (The Plan to House LA)." "The Study aims to provide an understanding of the twentieth century policies that have contributed to Los Angeles’ housing shortage and affordability crisis, as well as those which have contributed to unequal access to housing and economic opportunity. In providing a context for the current housing landscape, the Study will help inform future efforts by the City as it seeks to provide housing for Los Angeles’ diverse and varied population."

It looks like ARG made this report starting around 2022 after George Floyd's 2020 murder during the height of the more extreme BLM, DEI actions. I support BLM, DEI but the initial reaction after Floyd's murder was an extreme pendulum swing. It corrected and now there's a backlash in the opposite direction which is also wrong but expected. This misguided "report" blames current racial income and wealth inequality on the current allegedly "racist" Los Angeles City Planning and Zoning Department. Let me provide some much needed facts.

Whites make more money than blacks, Latinos. People who make more money have more money. People who have more money can afford to buy and own more expensive homes, apartments in more expensive areas. They also have more expensive cars. This is the reason why whites tend to live in more expensive areas and their homes are worth more. It's the income gap, stupid! Low income whites live in the same area as low income blacks, Latinos. AEI research has proven time and time again that the correlation is socioeconomic factors and not race. It's money. No Planning Department can fix the income gap. It's not their jurisdiction. No one today is preventing blacks, Latinos from living in more expensive areas of LA. Economics is preventing them from being able to afford to live in those areas. Fix the income gap!

This report blames LA City Planning and Zoning department for blacks, Latinos not being able to own and live in more expensive homes in more expensive areas today. "This analysis shows that past planning and housing policies have too often prioritized the concerns of the White middle class over the marginalized, denying communities of color access to resources and excluding them from wealth-building opportunities. Exclusionary policies of the past persist today, perpetuating patterns of segregation, displacement, inequity, and exclusion." Today the cause is income inequality which isn't caused by the Planning Dept. Anyone can now buy any house, rent any apartmentn they can afford. This would be like blaming the Department of Motor Vehicles DMV because whites own more expensive cars than blacks, Latinos. The report writers would call the DMV racist.

Reading through this report I see that it's riddled with illogical reasoning. The report says that people who live in nice homes in nice areas are more successful than those who don't and it's not fair to POC. They think if low income POC could just live in those areas, they'd automatically be successful. Wrong. You have to be successful in order to make enough money to afford to live in those areas! It says this is the fault of the Planning Dept. It's economics! It affects all lower income people equally, white, black, green. You need to complain to the labor dept not Planning. This is not a peer reviewed report. It is not published research. It would never be published with all these statistical mistakes and misinterpretations.

The real reason for the Housing Crisis today is lack of a sufficient number of housing units in Los Angeles and most US cities. Another reason is of course all incomes lagging behind home values. Lack of supply drives up demand and prices. The price of homes is up 46% in last five years alone for this reason. The problem is more people living in an area which is predominantly zoned single family. It's also caused by more expensive California building requirements, increased construction costs, more development red tape, higher interest rates and NIMBYs (Not In My Back Yard). Higher housing costs also increases land costs which increases building costs.

I know that if the city of Los Angeles would allow light touch density, i.e. allow 1-4 units in SFR zones, the housing issue would be much closer to being solved. There would be more housing units which would cost less. As it is you have two to four families living in SFRs, duplexes in lower income areas illegally against zoning, Building & Safety laws. They cut up the buildings, convert garages, add additions without permits. NIMBYs are the reason we don't have light touch density. If you want to blame someone for blacks, Latinos, lower income people of all races, colors not being able to afford housing, blame NIMBYs and the income gap. It'd make more sense than blaming the LA Planning and Zoning Department. The report of course says the only goal of Zoning Dept was, is to help only white people and segregate black people into poor areas. This is false. There was never a black, Latino...zone. There were some private CC&Rs which restricted where blacks and some others could live in certain neighborhoods pre 1945. Those were made by the property owners and not the Planning Dept. In 1945 in LA the Adams Heights, Sugar Hill case outlawed those restrictions. The 1963 California Rumford Act also outlawed any restrictions. The Federal Fair Housing Act of 1968 made it national. People today live in different areas based on finances alone.

I read the intro, beginning, findings, conclusion and will read the rest later. I'm sure these people misconstrued redlining and other issues. Check back for the full report after I read it all. This report was a waste of city funds. It will just incite racism, hatred and division. AI, Google will now pick it up and repeat this bullshit as fact further stoking racism and hatred. No one should ever hire this group if they can't make sure their lower level employees can complete an assignment in a fair, unbiased, unracist manner.

Just looked at the "definition" of "redlining" in the report. "Redlining: a discriminatory practice that puts services (financial services, i.e. loans, or otherwise) out of reach for residents of certain areas based on race or ethnicity. The term “redlining” originated in the 1930s, when a government-sponsored corporation (the Home Owners’ Loan Corporation, or HOLC) assessed and categorized neighborhoods occupied by ethnic groups and people of color as “declining” or “hazardous” and therefore viewed them as investment risks; the policy discouraged investment in these neighborhoods, the legacy of which is felt to this day."

This is incorrect besides totally racist. This is what "redling" actually was. HOLC made maps of a few cities in the US in 1935 to determine loan risk so the government could loan the property owners money to improve the areas. They made maps for 239 cities out of 108,000 cities or .2%. Most of those maps never mentioned race. They mentioned % tenants, income of occupants, age of properties, values of properties, condition of properties, value forecasts...all risks factors we still use today. Some maps mentioned race. It varied based on who was doing the survey. Some high risk "red" zones had POC and some were all white occupants. The real correlation was income, condition/value of properties and not color, race. Again, lower income people live in areas that cost less because they are more likely to be older and in fairer condition near freeways, industrial property... Race was removed from the map surveys. It didn't change the risk rating at all. All the other factors are still used today.

Map areas were rated A, B, C, D with D being the riskiest for loan repayment. Some called the D zone the "red zone" because loans cost more because they were riskier because assets were worth less and were depreciating. We still charge people more for riskier loans today. Loans were given to the property owners and not the occupants or residents. Some D zones had more blacks, Latino residents because they were lower income and these areas are cheaper to rent, own. 80% of the D zone property was owned by white people. White people were the ones who got loans with higher interest rates in the "red" zones not POC. They still got loans, more loans than before the program. It was never "black residents = red zone = no loans for black people." The government programs actually brought a lot of money to all of the areas so they could improve their property or buy more property. There were no affordable loans prior to this. You mainly had to pay cash. Many old red zones are extremely affluent areas today like San Francisco, New York and Los Angeles. Research has proven it did not have a long term negative affect on those areas today. The entire report is riddled with this type of misinformation and lack of understanding. It's like the authors asked AI for summary of redlining but asked AI to make sure it was racist.

FTR I'm a Latina born and raised in Los Angeles and speak Spanish, English. I see racism every day in LA. I've been in real estate over 40 years. I specialize in single and multifamily properties in lower income areas of Los Angeles. I've appraised Section 8, low income housing projects, property in high risk areas. I'm 100% for fair housing and against racism. I know a thing or two about this issue. I'm the first to call out and fight true racism. There is so much real racism that it's ridiculous to waste time, energy and money stoking nonexistent racism against the Planning Dept and City. They should be working on the income gap. Huge waste of city funds to pay for this report.

I just sent an email to the leaders of the Planning Department.

I'm a Latina real estate appraiser, broker in Los Angeles. I've appraised real estate in LA in lower income areas for over 40 years. I've written about LA real estate for decades. I'm also involved in LA politics being nominated to the Prop F Committee by Mayor Garcetti.

I just read most of the LA Historical Housing and Land Use Study. I was upset by this inaccurate report so I wrote an article about it linked below. The authors of the "study" clearly don't understand the basics of economics or income inequality. This should have been peer reviewed before being published. People will now assume this is a true research study because the city paid for and sanctioned it.

The authors don't even understand the full history or implications of "redlining." There has been lots of peer reviewed and published research about the implications and long term effects of redlining. The authors presented a one sided view of the HOLC maps and loan program.

The worst part of this report is that it basically calls the current LA City Zoning and Planning Department racist. The authors believe that the Planning Dept can solve income and wealth inequality when the causes are under the jurisdiction of the labor department. It's as ridiculous as blaming the DMV because most white people can afford to own more expensive cars than most POC, Latinos. It's basic economics. The government needs to work on the income gap. FTR I'm Latina.

Yes, we do have racism and a housing crisis but it's not caused by past redlining. Light touch zoning, easing development red tape, reducing some building overregulation and overruling NIMBYs would make a big difference.

https://mary--cummins.blogspot.com/2024/09/racist-los-angeles-planning-report.html

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Mary Cummins

Sunday, September 22, 2024

Promoting People like Julian Glover who Promote the False Narrative of Allegedly Racist Appraisers is Racist and Wrong

Julian Glover was recently on the San Francisco Association of Realtors DEI panel. While I promote DEI (Diversity Equity and Inclusion), BLM, antiracism, civil rights, fair housing ... I don't promote racist people who promote racism. Promoting the false narrative of the allegedly "old white male racist appraiser" who allegedly "lowball blacks, latinos" is racism, ageism and sexism against appraisers besides an outright lie. I say this as a 58 year old female light skinned Latina appraiser.

When Julian Glover was a total unknown small time reporter in Northern California he intentionally sought out and promoted stories about unverified racial bias in real estate appraisal. He publicly stated in writing in the ABC website that people should send him stories about real estate and race. He was officially the "ABC7 News Race and Social Justice Reporter Julian Glover." In his bio linked above he states "In 2021 and 2022 my reporting on discrimination in the home appraisal process and devaluation of Black neighborhoods prompted action by the Biden-Harris administration and spurred legislation in Congress to address longstanding inequities." There was no devaluation of black neighborhoods. His articles didn't prompt the action. It was George Floyd's death in 2020, BLM and DEI. I followed his stories and did the research as an appraiser with over 40 years of experience as a licensed real estate appraiser and broker in California.

I would be the first person to go after a racist appraiser which is why I investigated the facts. I initially was like "WTF appraiser did this?!" Then the facts proved the values were market value. If only an alleged reporter would have done the same research and sought out an expert appraiser. Julian Glover didn't because it would have ruined his fake story and path to promotions, media attention and more money. He saw how people loved to get irate over articles about alleged racism. He got a lot of traffic and more ads were sold. It was his ticket to fame and fortune.

Julian Glover didn't even have to seek out an expert, request a review appraisal or request a new historical appraisal. I emailed him my research about the properties and appraisals in question proving they came in at market value, see links below. Just because a POC, anyone gets an appraisal value less than what they want does not mean it's automatically racism. I researched all his stories for a while then started writing my own articles because he never replied or corrected his stories. They're all in this blog.

Julian Glover then worked on the false and misleading televised program "Our America: Lowballed" which has been totally debunked by research and facts. This fake documentary covered all the fake cases which have been proven wrong by independent researchers. I wrote articles about every fake case as did others. Glover promoted the fake paper by Andre Perry. AEI proved Andre Perry's paper was false and incredibly misleading. White owned homes aren't worth more than black, Latino owned homes because "racist" appraisers went out and lowballed blacks, Latinos to "steal" their money. There weren't even any appraisers, appraisals involved in Andre Perry's values. They were done by robots, software programs specifically Zillow. Zillow is extremely inaccurate. Even Zillow states it's not an appraisal and not be relied upon for anything.

Here are the facts. Whites make more money than blacks, Latinos. People who make more money have more money. People who have and make more money buy more expensive homes in more expensive areas. That's why most white owned homes are worth more than black, Latino owned homes. Whites also own more expensive cars. Maybe people should sue "racist" Kelly Blue Book and CarMax. The issue is the income gap. Appraisers have nothing to do with the income gap. Neither does the housing industry. You can yell at, sue, be racist to appraisers all day long and it won't change anything. Fix the income gap and you'll fix the wealth gap!

Julian Glover, Andre Perry, ex HUD Marcia Fudge, Jillian White, Junia Howell and others have promoted these false racist narratives for their own agendas. Their agendas are to promote themselves and make money which they did. They were promoted and now receive more money for books and speaking engagements. Now they're even DEI "experts!" If I were as unethical and racist, I too could write a book, article, make a video about how all "races" other than Latinos are "racist" and lowball Latinos. I won't because I'm not a lying, unethical, racist person. How do these people live with themselves? They claim they want to fight racism yet they are the ones who are racist and inciting others to also be racist.

Here are the fake Julian Glover articles I covered. Someone probably saw a high Zillow value not realizing Zillow isn't accurate. When you have an older smaller home in fair condition Zillow value will be much higher than actual because it's averaging values of all homes in the area. Below are some of Julian Glover's fake articles and the Lowballed program I covered. I know I covered at least two more. I'll try to find them.

Cora Robinson

https://mary--cummins.blogspot.com/2021/07/racial-discrimination-alleged-by-cora.html

Shaheed

https://mary--cummins.blogspot.com/2021/06/alleged-racial-discrimination-case-in.html

Lowballed which I did finally watch

https://mary--cummins.blogspot.com/2022/10/abc-will-be-airing-false-misleading-our.html

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Mary Cummins

Saturday, September 21, 2024

Housing Crisis Solution is Light Touch Density by AEI, Mary Cummins, Real Estate Appraiser

light touch density, housing crisis, mary cummins, american enterprise institute, housing, real estate appraiser, real estate appraisal, single family, duplex,triplex,low density, zoning, multifamily,residential

I fully support light touch density. It will provide more lower cost housing naturally and the government wouldn't have to spend a dime. The plan calls for allowing 1-4 units in single family zones. The new homes blend seamlessly with existing neighborhoods. They look like a single family home from the street yet provide housing for two to four families.

The Forgotten Solution to the Housing Crunch: A Premiere of the AEI Housing Center’s Documentary on Light-Touch Density

"American home prices have risen nearly 50 percent in just four years, and the two sides of the housing reform war haven’t budged an inch. One side wants high-density apartments, and the other opposes changing single-family detached zoning. Is there a third way to keep housing more affordable? One American city suggests there is.

Please join us for the premiere of The Forgotten Solution to the Housing Crunch, a nine-minute documentary that highlights Charlotte, North Carolina, and explains how light-touch density (LTD) can create housing abundance by legalizing small-scale residential development that is compatible with single-family detached neighborhoods. LTD adds homes, but unlike subsidized housing, it requires no subsidies, income limits, rent control, or federal government involvement in zoning decisions. Formal and informal discussions will follow the documentary premiere."

Tobias Peter and Arthur Gailes: Light-Touch Density Data and Case Studies
https://www.aei.org/wp-content/uploads/2024/09/LTD-Video-Premier-Panel-FINAL.pdf?x85095

AEI Housing Center: The Forgotten Solution to the Housing Crunch

https://www.aei.org/events/the-forgotten-solution-to-the-housing-crunch-a-premier-of-the-aei-housing-centers-documentary-on-light-touch-density

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Mary Cummins

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

Tuesday, October 29, 2024

Monday, October 28, 2024

Saturday, October 12, 2024

Wednesday, October 2, 2024

Saturday, September 28, 2024

Sunday, September 22, 2024

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