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

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California
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Sunday, November 12, 2023

Caltrans Rents Area Under 10, 5, 60, 405 Freeways in Los Angeles, California by Mary Cummins Real Estate Appraiser

fire, 10 freeway, los angeles, california, downtown,  real estate appraisal,real estate appraiser, mary cummins ,real estate,appraisal,fire,california,appraiser,los angeles,caltrans, freeway Photo: Caltrans
fire, 10 freeway, los angeles, california, downtown, 
real estate appraisal,real estate appraiser, mary cummins ,real estate,appraisal,fire,california,appraiser,los angeles,caltrans, freeway Photo: Caltrans

UPDATE 11/22/2023 As expected the freeway is not repaired. It's only braced. It will take months to repair the freeway. "Though the shored-up freeway is safe for drivers again, repairs for the damaged overpass will take months, officials said. None of the damaged columns that hold up the overpass east of Alameda Street have been repaired yet, according to Caltrans spokesperson Michael Comeaux.

“Columns damaged by the fire will need to be repaired. The repair strategy may vary between individual columns depending on the extent of damage. The repairs will include the removal of any damaged concrete, patching of the damage, and wrapping the columns with steel casings,” Comeaux said in an email."

"The fire has drawn scrutiny to the state’s open-air lease program. On Wednesday, Caltrans announced inspectors assessed 601 leased sites across the state and of 38 sites that pose a potential risk, only a few present a specific fire or safety risk."

An engineer with Caltrans who was not authorized to speak publicly said 45 columns show clear evidence of spalling, the technical term for the cracking and disintegration of concrete when it is exposed to extremely high temperatures. The heat evaporates water molecules inside the concrete, which makes the material weak and brittle.

Construction crews will have to remove the damaged concrete from each column. In many cases, the engineer said, that damage extends to the reinforcing metal known as rebar that is embedded inside the concrete and spirals around vertical lengths extending from the foundation to the freeway overhead.

Engineers have identified eight columns where the heat of the fire reached far deeper into the concrete. For those columns, crews will have to remove not only the compromised concrete but also the spiral of rebar, the engineer said.

Once the damaged concrete and steel have been removed, the columns will be rebuilt, most likely with steel jackets similar to those used in seismic retrofits of bridge columns (an earthquake review in the 1990s did not lead to jackets being placed around the columns at this location). Grout or concrete will then be injected between the jacket and column."

https://www.latimes.com/california/story/2023-11-22/downtown-los-angeles-10-freeway-fire-repairs

11/18/2023 Authorities release photo of person of interest in the alleged arson fire of the 10 freeway. Mayor Karen Bass said it was definitely not a homeless person. This looks like a homeless person to me. I'm in that immediate area all the time. I see the people down there. I was there last week and saw a homeless guy light a wood pallet on fire for no reason. They don't just do it to keep warm but because they can. People dump shit and trash on the street. Homeless light it on fire especially at night. Someone dumps an old tv that doesn't work. They will beat and crush it then light it on fire as a fun activity like a school bonfire. Once I found a dead dog that'd been put in a shopping cart, lit of fire then pushed down the street into a fence. I'm pretty sure the dog was dead before they lit it on fire or at least I hope so.There are young'ish men down there with mental illness and lots of anger. They will destroy and burn something just as an outlet, to rage against "the man" or just for fun. All those wood pallets, stacks of boxes, trash were begging to be burned. If you go down there, you will see fire marks on all the overpasses. 



https://ktla.com/10-freeway-fire/10-freeway-arson-suspect-description-released/

11/16/2023 Governor Gavin Newsom said the freeway will be open by next Tuesday November 21, 2023! The supports weren't as badly damaged as first thought. 

Per various articles "state officials filed a lawsuit against Apex saying the company owes $78,000 (or $600,000) in unpaid rent." "Apex Development Inc. has leased the land under I-10 since 2008. One condition of Apex’s contract stipulated it not allow flammable or hazardous materials to be stored there."

“Apex rented and improved the rundown yard and made substantial capital investments during the period that it had possession of the yard,” D’Attaray said. “Caltrans inspected the premises periodically, at least once a year, and CalTrans was fully aware of the sublessees and their operations. Even the State of California’s Fire Marshall inspected the premises.”

He said Apex had also repeatedly called the fire department to report fires started by homeless encampments, including along the fence line and at other yards."

https://apnews.com/article/freeway-fire-los-angeles-interstate-10-newsom-3ab9682a866c4e60b80b2d5d185847ac 

11/15/2023 Caltrans knew of an incident where portion of Interstate 85 in Atlanta collapsed after combustible material stored under the interstate caught fire. That incident closed the interstate for six weeks. They wrote a policy directive based on that incident which prohibited storage of flammable materials under bridges and required access for inspections. Engineers stated Caltrans knew about the problem but can't get under the bridges to inspect because of all the junk. In all honesty there is not much in a tightly packed warehouse that isn't combustible. These areas aren't even enclosed so you can't block off a fire like you can in a building. There should at least be smoke, fire, CO detectors, fire sprinklers and fire fighting equipment easily accessible and functioning.

https://www.latimes.com/california/story/2023-11-14/l-a-facing-more-traffic-gridlock-amid-signs-of-hope-over-10-freeway-closure

11/14/2023 Governor Newsome said the freeway will open in 3-5 weeks. "Inspectors determined the section of the freeway affected would not need to be demolished and replaced, allowing workers to focus instead on repairing the existing structure, Newsom told reporters. That means reopening the freeways will take a matter of weeks, he said, rather than the months long endeavor some were initially bracing for." He later said maybe only 4/5 lanes will be open initially.

https://www.cnn.com/2023/11/13/us/i-10-freeway-la-fire-closure-tuesday/index.html

11/13/2023 Fire Department is now saying arson may be the cause. They also stated flammable hand sanitizer from Covid was being stored at the location. 

There is no real address, legal description, Assessor's Parcel Number APN I can find to use to see if there are complaints in Building and Safety ladbs.org . Generally people file complaints based on real address, APN or legal description there which are investigated. Maybe people can't file or view complaints on Caltrans property because it's under a state and not a city, county jurisdiction? Caltrans just said there is no property tax so there would be no APN. That would be a big problem because all building and safety, fire investigations are complaint driven by site location. There are no annual property inspections. Clearly we can't trust the California Department of Transportation to do the complaints and investigations. They should have used emergency powers to clear or safeguard the site. Sadly the entire area down there is very similar. There are many, many shoddy storage facilities under the freeway with homeless camps.

Caltrans own press release of the fire states the address is 1700 E 14th St which is blocks away. The site is in District 7. https://dot.ca.gov/fix-10

Recent article noted one property was leased by Calabasas based Apex Development Inc which was subleasing storage without permission from state and federal authorities. The company stopped paying rent and was out of compliance with the lease.

I see 85 lawsuits involving Apex Development in lacourt.org Below is the eviction lawsuit which is recent by state of California. It includes the companies on the site that burned. The ONLY cause for eviction on the form is non payment of rent. It's not for violations of terms of the lease. Obviously not paying rent is a violation of terms of lease. It's not for allowing the site to be a danger to people and property. Caltrans should have filed emergency eviction for unsafe premises.

I'll post docs in a sec. I see a previous lawsuit 20STCV42245 filed by Apex against Caltrans. It was dismissed. I see another suit against Caltrans 23STCV15418 for breach of contract that's recent for interference with contract and unjust enrichment 06/2023. Apex appears to be litigious. I don't know if they have cause for the suits. I was hoping to find a lease agreement but none were filed or maybe they were filed under seal. I don't know if Apex is claiming Covid hardship for rent payments. 

Case Number:  23STCV22798

THE PEOPLE OF THE STATE OF CALIFORINA, ACTING BY AND THROUGH THE DEPARTMENT OF TRANSPORTATION VS APEX DEVELOPMENT, INC., A CALIFORNIA CORPORATION, ET AL.

Filing Courthouse:   Stanley Mosk Courthouse
Filing Date:  09/20/2023
Case Type:  Unlawful Detainer/Commercial (not drugs or wrongful eviction) (General Jurisdiction)
Status:  Pending

Next hearing. 02/15/2024 at 08:30 AM in Department 37 at 111 North Hill Street, Los Angeles, CA 90012 Case Management Conference 

Many parties didn't reply and defaults were filed.

APEX DEVELOPMENT INC. - Defendant

CHOI DANIEL - Attorney for Plaintiff

D'ATTARAY MAINAK - Attorney for Defendant

EAGLE WOOD SERVICE - Defendant

ECO-RAIN TANK OF AMERICA - Defendant

GLUCK STEVEN M - Attorney for Defendant

KATZ JEFFREY E. - Attorney for Defendant

LARA ALFREDO MENDOZA - Defendant

MAX RECYCLING - Defendant

MCA TRUCKING - Defendant

NOWAID ANTHONY - Defendant

PACIFIC EXPRESS PALLETS - Defendant

SERAFIN DISTRIBUTION - Defendant serafindistribution.com/home 1361 Lawrence 
http://serafinsdistribution.com/contact-us

THE PEOPLE OF THE STATE OF CALIFORNIA - Plaintiff

TORRES TAURINO M. - Defendant claims to live at 1361 Lawrence

Below are jpgs of main current eviction lawsuit.








Another article stated 100 columns of the freeway were damaged. Nine or ten were damaged severely. They don't know if they will have to tear down the overpass or just retrofit it. I believe some of these were previously retrofitted after the 1994 earthquake. The original freeway was built 1933-1957 or so.

ORIGINAL: November 10/11, 2023 (just after midnight) there was a huge pallet fire under the Santa Monica 10 freeway at Alameda and 14th Street which shut down the freeway and interchange. Many have asked why there were wood pallets under the freeway. People don't seem to realize that the California Department of Transporation Caltrans leases the area under the freeways in Los Angeles for warehouse purposes. 10 Freeway on Wikipedia

Based on current law, "Authorizes Caltrans to lease to public agencies or private entities the use of areas above or below state highways. Generally, leases to private entities have to be made on the basis of competitive bids and at fair market value." They can also lease them for less than fair market value if it's for the public good such as a park, homeless shelter...

Currently most of the area under the 10 in this area is warehouse property that caters to fashion industry. If you drive by you will see auto storage, shipping storage, large machinery storage, wood pallets, trash... I would assume all tenants must have adequate fire protection, insurance and abide by Building and Safety and Fire Department regulations. Any major fire under this old 10 freeway could cause a lot of damage besides disrupting traffic to the area. The 1994 earthquake caused a section between LaCienega and Venice to collapse because the supports were made pre 1971 before they were earthquake proof. Other areas needed repairs and retrofitting. The original section was built around 1955 or 1957. I'm not positive. We're still talking about a 70 year old overpass. When I was there day after fire a block away I saw what appeared to be retrofitting and reinforcement of another overpass few blocks away. 

We shall see if Caltrans changes their lease agreement terms after this fire. They should be able to take emergency action against any lessee, sub-lessee who violates the law due to the potential hazards to humans, property and the transportation system.

If you look at these storage sites under the freeway, not all are enclosed with walls. Perhaps the ones not enclosed with solid walls are not considered structures legally so they don't have to abide by Building and Safety regulations? Many just enclose the properties with chain link fencing with barbed wire on top. Perhaps there are not regulations for such enclosures? Clearly there should be. At the very least they need smoke, fire detectors that would not be set off with smoke, exhaust from autos. 

The address of the burned properties appear to be subleases located at 4205 E 14th St, Los Angeles, CA 90021 near Lawrence St and 14th St. Also 1349, 1361 Lawrence. Legal tract is 23269. Close APN is 5167-017-004. Thomas Guide map TG634G7. 5166-004-****. Tract H. N. ELLIOTT'S NINTH STREET TRACT.  It's council district 14 Kevin DeLeon. Zone is PF-1XL. Sign says "we buy pallets" and "Serafin's Distribution." They tried to get a permit to build a building for a scrap yard in 2014 and were denied. Previous building permit was 1925. Maybe it was built in the 30'sand renamed in the 50's. Below is Google satellite image of site, parcel maps and street view. For these two sites to burn makes me think it was a fire accidentally started by homeless people. It's been getting colder at night in the 50's. Google street images shows lots of homeless, cars, car tires stacked, wood pallets.All these things are highly flammable and difficult to extinguish especially under the enclosed freeway.













Here is the Google map of the burned site. Look at street and satellite view for the area. Lots of places full of pallets, trash, cars and homeless people. Years ago when I went to a motorcycle show that was in an industrial site they made me remove all gas from my motorcycle and tape the gas cap shut or else they wouldn't let my motorcycle in the show. It was because of Fire Department and insurance purposes. I'm sure all those cars had gas and oil in them besides batteries, tires which burn for long periods of time.

Because Caltrans is government they pay no property taxes so there is no assessor's parcel map I can yet find for the site. This is all I see. If you hover over it, it says "no information available." I'm trying to get an address to see if there were complaints about fire dangers or other Building and Safety violations. If there is no address, you can't really file a complaint. There must be something. I'll post when I find it.


Here are photos from Serafindistribution.com which shows interior. Their site states they have boxes, paper products, labels, janitorial supplies...



Here is one such current advertisement for warehouse rental under the 10 freeway blocks from the fire, see photo below. This property is for sale with a ten year renewable land lease from Caltrans. 

"Naomi Freeway Distribution1600-1650 S Naomi Ave 39,372 SF Industrial Building Los Angeles, CA$3,890,000 ($99/SF) Warehouses  California  Los Angeles  1600-1650 S Naomi Ave, Los Angeles, CA 90021 Owner User - Investor Opportunity Located Minutes From Downtown, Arts District & Vernon Divisible into 4 Units, Power 1,200 Amp 240 V Service - Ground Level Doors Cal Trans Ground Lease Expires: 5/11/2031 - 10 Yr Option Concrete Block Construction. Owner Use - Investment Property - 5 Warehouse/Distribution Units - Land is Leased From Cal-trans - Newer Concrete Block Construction - Retail - Wholesale Possible - Garment - Cannabis Uses. 20,000 SF Can Be Occupied at Closing. Heart of Downtown Los Angeles Industrial Area Santa Monica Freeway (10) At Central Avenue Exit" https://www.loopnet.com/Listing/1600-1650-S-Naomi-Ave-Los-Angeles-CA/3612898/ POSS INT LOCATED AT 1650 NAOMI AV LOS ANGELES OWNED BY STATE DEPT OF TRANSP 5130 013 000


 #caltrans #california #transportation #fire #marycummins #realestateappraiser #realestateappraisal #losangeles #freeway #landlease #fire


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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Friday, August 25, 2023

Important Alleged Discrimination Case Against Wells Fargo, Comment by Mary Cummins

wells fargo, racial discrimination, lawsuit, cv 00990, mortgage discrimination, mary cummins, real estate appraiser, real estate appraisal, credit, black, latino, white,complaint
wells fargo, racial discrimination, lawsuit, cv 00990, mortgage discrimination, mary cummins, real estate appraiser, real estate appraisal, credit, black, latino, white,complaint

Peter Christensen just wrote an article about this very important legal case. Wells Fargo is being sued for racial discrimination for rejecting mortgages of some black, Latino applicants. The lawsuit is based on appraisals and credit. They cite Andre Perry's false and misleading paper as evidence. This looks like a shakedown lawsuit to get WF to cough up a few bucks "without admitting guilt." This is what the false narrative of the alleged racist appraiser and real estate industry has given us. The government promoting the false narrative for their political agenda has caused this frivolous lawsuit. We all know based on AEI's research that blacks, Latinos are more likely to be rejected for loans based on socioeconomic factors and appraisal value. Blacks, Latinos have less income, less wealth, lower credit scores which is why they buy less expensive homes in less expensive areas. 

"In March 2022, Bloomberg News published an article entitled “Wells Fargo Rejected Half Its Black Applicants in Mortgage Refinancing Boom” (registration required). Bloomberg’s researchers had combed through the data for 8 million conventional loan refinance applications in 2020 reported by lenders under the Home Mortgage Disclosure Act. The researchers saw stark differences in Wells Fargo’s approval rates for White, Black and Hispanic refinance applicants. They found that Wells Fargo approved 72% of applications from White applicants but only 47% from Black applicants. In contrast, Rocket Mortgage approved 86% of White applicants and 79% of Black applicants. For Hispanic borrowers, Wells Fargo’s approval rate was 53% versus a 79% industry average for Hispanics. Some might jump to an explanation here like “Black and Hispanic borrowers may not have the same average financial means as Whites.” Bloomberg’s research, however, showed that Wells Fargo’s approval rate was lower for Blacks in high income brackets than for Whites in low brackets.

After publication of the article, a half-dozen class actions were filed swiftly against Wells Fargo by Black and Hispanic borrowers who had been denied loans. The Federal District Court in Northern California consolidated these cases earlier this year under the new title In re Wells Fargo Mortgage Discrimination Litigation, U.S. District Court, N.D. Cal., Case No. 3:22-cv-00990.

The primary legal claims in the consolidated case are brought under the federal Fair Housing Act and Equal Credit Opportunity Act. And, the alleged damages could be substantial – borrowers denied loan refinances in 2020-2021 may have lost out on saving tens of thousands of dollars on their mortgages by being unable to lock in historically low interest rates. The operative complaint in the case principally alleges a story about disparate treatment and impact in Wells Fargo’s mortgage determinations, including the bank’s use of flawed “centralized, universal, race-infected lending algorithms” or “digital redlining.” But part of the plaintiffs’ theory is also based on alleged bias in the appraisals relied on by the bank.

Here’s a key allegation pertaining to appraisals:

Wells Fargo knowingly incorporates, without adjustment, appraisals that have been shaped by years of race-based valuation standards or appraisals affected by race-based criteria. Homes in majority Black neighborhoods are worth an average of 23% less than homes in neighborhoods with “very few or no Black residents” and of similar home quality. (Citing Dr. Andre Perry’s research at Brookings “The Devaluation of Assets in Black Neighborhoods.”).

As a result, the plaintiffs allege that “Wells Fargo’s discrimination . . . has forced those who received below-market appraisals from Wells Fargo to abandon the process with Wells Fargo and turn elsewhere.”

"Plaintiffs Aaron Braxton, Paul Martin, Gia Gray, Bryan Brown, Elretha Perkins, Christopher Williams, Ifeoma Ebo and Terah Kuykendall-Montoya, individually and as representatives of a nationwide class of similarly situated applicants for original purchase mortgage, refinance and other home mortgage loans (collectively, “Plaintiffs” or the “Class”), 

Go to the below link for the rest of this important article and lawsuit.

https://www.valuationlegal.com/2023/08/the-most-significant-appraisal-discrimination-case-doesnt-name-an-appraiser-as-a-defendant/

Copy of lawsuit from same site.

https://www.valuationlegal.com/wp-content/uploads/2023/08/In-re-Wells-Fargo-Discrimination-Amended-and-Consolidated-Complaint-Fair-Housing-ECOA-3-24-23.pdf


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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Wednesday, August 23, 2023

Appraisal Institute Presentation on Historical Homes at Wrigley Mansion, Pasadena, California by Mary Cummins

wrigley mansion, pasadena, california, 391 orange grove, rose parade, tournament of roses, mary cummins, real estate appraiser, real estate appraisal, historical homes, historic, properties
wrigley mansion, pasadena, california, 391 orange grove, rose parade, tournament of roses, mary cummins, real estate appraiser, real estate appraisal, historical homes, historic, properties

Southern California Chapter of the Appraisal Institute gave a presentation by Charles Baker on Historical Homes. It took place at Wrigley Mansion in Pasadena, California. This is the Tournament of Roses Headquarters at 391 S Orange Grove, Pasadena, CA. Beautiful home and gardens. While I don't agree with everything AI does they do offer great classes and education. Linda Whittlesey President of the SoCal Chapter organized the event and did a fantastic job. 








Mary Cummins Los Angeles




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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Friday, August 11, 2023

AEI Report Shows Andre Perry's Paper is Fraudulent. Same Difference in Home Values in White Areas.

This is from an email from Jeremy Bagott, MAI. AEI used Andre's Perry own dataset and methodology to study race and home values.  February 2023 the report was updated. Andre Perry previously stated the main difference in home values between white and black is race alone. Perry blamed that on home valuations. AEI's research has proven the main difference is caused almost entirely by socioeconomic factors and not race. I've been yelling this from the mountain tops since Perry's paper first came out but AEI has nailed it down with facts and independent research. People who make more money have more money and buy more expensive homes in more expensive areas, period. 

Maybe lower income white people should be yelling about home value differences compared to higher income white and black people. Maybe they should be demanding money, free homes, cheap loans, debt relief like Andre Perry and his following have been doing. "Rich white people have stolen $46,000 from every poorer white person's home value in the US!" Maybe all poor people need their own type of reparations for being trapped by low wages and poverty for generations. It won't solve the problem because the income gap is the main cause for everyone but the story will probably sell online media ads. We need to reduce the income/wealth gap among everyone. AEI stated this in their summary but the government will not listen to facts for some reason on this issue.

https://mailchi.mp/0b513ed845f9/report-finding-of-bias-in-home-valuations-fails-by-own-measure-8037698

"REPORT: FINDING OF BIAS IN HOME VALUATIONS FAILS BY OWN MEASURE

VENTURA, Calif. (August 11, 2023) – In an updated refutation of the findings of Brookings Institution researcher Andre Perry, Edward Pinto and Tobias Peter of the AEI Housing Center demonstrated just how broken the Brookings research was.

Perry’s 2018 research, titled “The Devaluation of Assets in Black Neighborhoods,” pinned the nation’s racial wealth gap on 80,000 state-licensed real property appraisers.

Unfortunately, these now-discredited findings have been levered by housing-industry lobbyists, partisan policymakers, agitators and grievance groups to malign the nation’s 80,000 real property appraisers and hollow out America’s mortgage underwriting safeguards.

A dataset provided to Pinto and Peter earlier in the year by Perry allowed the AEI Housing Center to fully refute the latter’s conclusions.

While their original refutation was still largely correct, Pinto and Peter have now updated their key findings and takeaways using the new dataset. To the surprise of no one, their redacted study found that what Perry et al. had characterized as race-based differences in home valuations were almost entirely due to socio-economic status, not racial bias by real estate appraisers.

Using the dataset and Perry’s own methodology, Pinto and Peter created a simple case study of so-called “entirely white” tracts (tracts demographers rate as 97.5% white or greater). In those tracts, racial animus, by definition, is ruled out as a factor. The duo then compared high and low socio-economic status in these so-called all-white neighborhoods and found differences as large as – or even larger than – the ones Perry et al. incorrectly attributed to racial bias.

But much damage has been done by Perry’s now-discredited findings. Perry’s 2018 report took the nation’s real property appraisers from the table and onto the menu. The flawed findings have most recently served as a pretext to justify the current administration’s whole-of-government effort to insert race into every corner of the mortgage underwriting process, including collateral valuation.

Pinto and Peter determined:

• That while lower socio-economic status may leave blacks at a large income (and wealth) disadvantage relative to most whites, this is not due to any statistically relevant bias in home appraisals

• The primary remedy would be policies that work to address the income and wealth gap, not those that scapegoat appraisers.

• The focus should be on increasing financial security, creating generational wealth, and shrinking the socio-economic gap through sustainable home ownership. This is largely a buying power issue, not a valuation one. To do otherwise risks repeating the mistakes of the past."


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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Real Cause of racial home value gap is the Income Gap by Mary Cummins Real Estate Appraiser

The ACLU wrote about the racial wealth gap. They noted the income gap, homeownership rate gap and mortgage gap. They didn't once blame any of this on real estate appraisers. Imagine that. #black #white #IncomeGap #wealthgap #homeownershiprate #race #money  

https://www.aclu.org/news/racial-justice/visualizing-the-racial-wealth-gap

I just read an article on the income gap. It said there is almost no white, black income gap for poor and lower income individuals. There is a smaller income gap for the middle class. “What this shows is that 97 percent of the overall racial wealth gap is driven by households above the median of each racial group.” This would mean most of the income, wealth gap is coming from the top earners. It's a class gap. I would bet that most of the income, wealth gap is coming from the super rich who are mainly white. "The richest 10 percent of white households who own 75 percent of all white wealth. Indeed, over two-thirds of racial gap reflects the differences in assets held by the top ten percent of households in each group. Class, not race is the major driver of wealth inequality." https://www.aei.org/op-eds/the-racial-wealth-gap-myths-and-realities/ Most of the wealth gap is caused by difference in the top ten percent in each group! It's probably mainly caused by some very rich white people. 

"White average wealth ($929,800), which is more influenced by very rich families and does not characterize the typical experience, is 6.7 times greater than Black average wealth ($138,100)." This means that most white people should be complaining about the income, wealth gap between low to mid income and upper class. That's where the biggest gap exists. 80% of the gap is coming from the top 10%. Instead of wasting time on the wealth gap between white, black we need to look at the wealth gap between everyone under the median compared to the top 10%. I bet most wealth in the country is concentrated in the top 1-3%. And I was correct, "Federal Reserve data indicates that as of Q4 2021, the top 1% of households in the United States held 32.3% of the country's wealth, while the bottom 50% held 2.6%."

I will try to see if I can figure out what the income, wealth gap would be if we omitted the super rich with net worths over $5,000000. Multi-millionaires and billionaires could be skewing the data. They are. "Federal Reserve data indicates that as of Q4 2021, the top 1% of households in the United States held 32.3% of the country's wealth, while the bottom 50% held 2.6%." https://www.pewresearch.org/social-trends/2020/01/09/trends-in-income-and-wealth-inequality/

The income gap is directly related to the homeownership rate. The current homeownership rate for Black and Hispanic homeowners now stand 29 and 23 percentage points lower than the 73% white homeownership rate. This again is all related to socioeconomic factors i.e. income.

There would probably still be a gap because of other socioeconomic factors such as married/single but it would probably be less.We really need to figure out the real problem so we can find a real solution. Blaming the income, wealth gap on appraisers, racism is just wasting time and money that could be better help working on issues that could change things.

I wrote about the the real cause of the home value gap earlier which is the income gap. I need to update it based on AEI's updated research and new article on income/wealth gap. Their recent research shows that whites and blacks who make more money have more money and buy more expensive homes in more expensive areas. There is almost no racial income, wealth gap under median income, wealth. Most of it comes from the top 1%. The wealth gap is mainly from stocks, investments of the top 1% who are mainly white. It's not from home values. All whites, blacks, Latinos...should be complaining about having less income, wealth and owning less valuable homes. It feels like people are trying to pit blacks against whites by spreading this false narrative supported by totally fraudulent paper by Andre Perry. Are super wealthy white people using Andre Perry to stoke the flames of a race war so people won't realize the real issue is the wealth gap between the top 1% and everyone else? 

https://appraisersblogs.com/the-real-cause-of-the-home-value-gap-is-the-income-gap

It's so frustrating to see HUD get bamboozled by lenders and politicians into thinking the cause is appraisers and appraisals. No one else seems to think so including other government departments. The lenders have just been using the false narrative of the alleged racist appraiser to be able to use AVMs Automated Valuation Methods. AVMs make lenders more money. They can also get the value they want so they can close the deal. AVMs are bad for buyers, government, economy, stock market and investors.

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.


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Thursday, August 3, 2023

AEI Response to PAVE Task Force AVM. Appraisers Are Not Racists and Don't Lowball Blacks, Latinos, comments by Mary Cummins

UPDATE 11/03/2023AEI proves once again that HUD, US Government lied about appraisers allegedly low-balling people of color. This is exactly what appraisers have been saying all along. "We find that seemingly large differences in the share of under-valuations–appraisals where the appraised value is below the contract price– received by people of color are almost entirely or entirely due to differences in geographies where people, regardless of race or ethnicity, reside. When comparing appraisals for people of color to those for non-Hispanic white people within the same census tract, we find that there are no or minimal differences.

This analysis suggests that commonalities in people’s experiences in buying a home (e.g. first-time home buyer status) or local market conditions (e.g. the presence of a market frenzy or seller concessions) are far more important than differences in people’s race or ethnicity when it comes to determining who receives an under-valuation and who does not. This suggests that studies by FHFA, Brookings, or Freddie Mac with their singular focus on appraiser racial bias have misdiagnosed the issue." #AEI #americanenterpriseinstitute #marycummins #realestateappraiser #realestateappraisal #HUD https://www.aei.org/research-products/report/confirming-alternative-explanations-for-appraisal-under-valuations-new-evidence-from-appraisal-level-data/

ORIGINAL: American Enterprise Institute (AEI) made some important independently researched statements in their comment letter about the PAVE Task Force, AVMs and real estate appraisers. It shows with verified facts the flaws in the research cited by PAVE. The research cited by PAVE was poorly done by the Urban Institute, Andre Perry then twisted to meet the agenda of UI, Perry. I have no issues with promoting the interests of black people. I'm Latino and promote the interests of Latinos, Blacks, Asians, women, lower income, homeless... I do have a problem with people falsifying research to promote an agenda with racist lies which hurt innocent people. Below are a few important issues raised in AEI's comment letter to the PAVE Task Force.

1. AEI stated First Time Buyers (FTBs) tend to overpay for properties. There are also more seller concessions. This would explain appraisals being at market value which is lower than contract price. I see this all the time because I appraise in these areas. It's not the result of biased, racist appraisers.

Urban Institute, HUD, PAVE stated that "racist old white male" appraisers were intentionally low balling blacks and Latinos. Their "proof" was a difference in contract price and appraisal values in census tract areas with more Blacks, Latinos. I'd commented at the time it was probably because there is a correlation between race and income. Whites make more money than blacks, Latinos. People who make more money have more money and buy more expensive homes in more expensive areas. Areas which are predominantly black, Latino are lower income areas with many first time buyers. 

"The presence of first-time homebuyers (FTBs) or the use of seller concessions could affect the sale price relative to the AVM. Our analysis in “Exploring Alternative Explanations for Appraisal UnderValuation” shows a significantly higher share of FTBs in tracts with lower levels of non-Hispanic White residents. This is significant because the literature shows that FTBs tend to overbid for a home by approximately $3,000, or about 1% of the contract price for the average home compared to repeat buyers and that they use a higher share of seller concessions, which can amount to 2.01-3% of the property price."

2. The letter noted that homes in lower priced areas that are more likely to be predominantly black, Latino are generally in lower rated condition which would be C4, C5 rating as opposed to C3 and above. I see this every day in my inspections of these areas. Again, it has to do with money. The more money you have, the more you will spend to properly maintain and upgrade your home.

"Even though the paper controls for home quality as measured by an exterior condition rating, we found in other work that exterior condition ratings can be quite different from interior condition ones. We also found that home interior quality can be a significant factor in the difference between an AVM and a home’s sale price and that for a small number of properties with extreme conditions that difference was significant."

3. The letter also again stated that AEI found no effect of race on appraisal value

"We have pointed out serious flaws in numerous studies that purport to show widespread appraiser bias or systemic devaluations of neighborhoods." https://www.aei.org/research-products/report/exploring-alternative-explanations-for-appraisal-under-valuation/

They suggest "To better measure and document appraiser racial bias, we once again propose reviewing every appraiser for racial bias and deliberate inaccuracies based on a comprehensive review of their past refinance appraisals. To that end, we have demonstrated a working methodology in “A Blueprint for Mass Screening Appraisers for Racial Bias and Inaccuracy Based on an Atlanta, GA Study” that could be implemented today by either FHFA, Fannie Mae, or Freddie Mac.Ultimately, the goal of public policy should be to identify biased and inaccurate appraisers and to prosecute the former and to educate and retrain the latter."

I fully support this. Please, fairly audit everyone's appraisals. I'd be the first to take racist appraisers out behind the woodshed. Take away their license, charge them with actual crimes and send them to prison. Stop blaming every appraiser for racism and bias. What really irks me is that these people are claiming racism and bias when they are doing exactly that to real estate appraisers. If you're against racism, bias, you should be against ALL racism or bias against everyone or else you're a hypocrite.

https://www.aei.org/research-products/report/a-response-to-the-recommendations-of-the-pave-working-group/

https://www.aei.org/wp-content/uploads/2023/08/A-Response-to-the-Recommendations-of-the-PAVE-Working-Group-FINAL-1.pdf?x91208


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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Wednesday, August 2, 2023

Appraisers Can't Use Demographic Census Tract Data Yet Government Uses it to Attack Appraisers by David Towne

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Another great article by real estate appraisal expert Dave Towne cited below. He states what many have noted since the government started mentioning census tracts and appraisal values. Appraisers can't and don't use census tract report data in selecting comparables or valuing properties. We are not allowed to consider personal demographics. We can only consider properties in a market area similar to the subject property. Neighborhoods, market areas do not correlate with census tracts! Census tracts were made by the government to gather personal demographics of the inhabitants in specific tiny areas to compare changes over time. They are a more recent artificial constructs of government which have nothing to do with determining appraisal values.

The first census tracts in the US were made in 1906 in New York. In 1934 they were standardized and expanded to a few major cities. "The goal of the criteria has remained unchanged; that is, to assure comparability and data reliability through the standardization of the population thresholds for census tracts, as well as requiring that their boundaries follow specific types of geographic features that do not change frequently. The Census Bureau began publishing census tract data as part of its standard tabulations beginning with the 1940 Census." 

For all we know the original tracts may have included some type of "redlining" based on race, nation of origin, primary language spoken, income levels... The "redlining" may have just been a correlation of less wealthy people living near the railroad tracks, polluted industrial areas and wealthier people living near the city center or a beautiful lake. Income, wealth correlate with race but race is not the cause.

The 1934 tracts have not changed but neighborhood boundaries, home values and real estate have definitely changed. Sometimes even the physical boundaries have changed with new freeways, aqueducts, dams, large government projects, dedicated parks, removal of train tracks... These areas also change as different areas go through the real estate cycles of growth, stabilization, decline and revitalization. Home values go up and down. Different people move in and out.

Appraisers use market areas sometimes called neighborhoods to selected comparables to value a subject property. WE DO NOT USE CENSUS TRACTS! The census tract number is auto-filled by a software program in the report. That's the only mention and use of census tracts. The government is the one who requested that data for their own loan use which is why it's in the form. Now they are misusing it to mischaracterize appraisers as alleged "racists" who "lowball" blacks and Latinos. Independent research by AEI has proven that race is not a factor in appraisal values. Whites make more money than Latinos and Blacks. If you make more money, you have more money and wealth. If you have more money, you will buy a more expensive home in a more expensive area. The main value of real estate is LOCATION, LOCATION, LOCATION. 

When we search for comparables for a subject property some use a half mile radius from subject. Some go one mile. In rural areas they go a few miles. For a high density condo area you might just use 1/4 mile radius. Some appraisers use known neighborhood boundaries which could be two streets, railroad crossing, major boulevard, freeway or the ocean. It depends upon the subject property. If I were appraising a home in the N 600 block in the flats of Beverly Hills, I would search N 500-700 then probably go two blocks east and west of the subject for starters. If I needed to go wider, I'd only go east or west and not north or south. North is much more expensive because they are larger estates. South is much smaller tract homes on much smaller lots. I don't look at or search census tracts. I'd have to figure out how to do that if my MLS could even do that. In fact this census tract of Beverly Hills is the first one I've ever looked at in my life just now. There are ten census tract maps in the map below.

Below is the census map which includes Beverly Hills, zoning map of Beverly Hills and zip code map. They're all different. I'm using this because I grew up here and know all the different market areas very well. Some of the areas in the census maps are commercial only and worth trillions of dollars. People don't live in those areas. They are stores, offices, medical centers in the golden triangle. Some of the areas in the census map are Beverly Hills and some are the city of Los Angeles. Beverly Hills property is easily worth twice Los Angeles property even if it's just across the street for many reasons yet they're in the same census tract. 

There's a thick line running down the middle of two census tracts. That's Sunset Blvd. Properties north of Sunset are worth 2-3x as much as properties south of Sunset. I could go on and on. The purpose is to show you that census tracts have nothing to do with real estate appraisal values. Three homes in the same tract could easily be worth $300,000 (small studio condo in Los Angeles), $2,000,000 small tract house south of the long gone rail road tracts on Santa Monica Blvd or $50,000,000 home above Sunset. Census tracts don't correlate with value. They should only be used to talk about people. 

I think the problem with census tracts and home values first started with fraud Andre Perry. He used Zillow Zestimate home values in different census tracts and compared them with the predominant race of people in the census tract area. His goal, agenda was to show that black owned homes are worth less than white owned home due to "old white racist male" appraisers intentionally low balling black people. No appraiser appraised any homes in his paper. He used only inaccurate Zillow values. He also just used the majority percentage of blacks in each area. He then cherry picked and twisted the results to fit his agenda. The results of his fraudulent study showed that whites make and have more money than blacks, latinos. Whites can afford to buy more expensive homes in more expensive areas. We've known about the income and wealth gap for years. It's caused by income and socioeconomic factors but not race or real estate appraisers. AEI research which disproves Andre Perry's fraudulent paper.


Census map of Beverly Hills. Ten maps which include Century City, Sherman Oaks and Los Angeles cities.


Map of the city of Beverly Hills broken up by zip codes just so you can see the outline of the city.




Below is Dave Towne's article. I asked his permission to share it. I'd link to it but he posts it in an appraisal group which is not public.

"Not to gloat, but I seem to be the only appraiser in the US who has observed and reported how people-oriented DEMOGRAPHIC CENSUS TRACT DATA reported by FHFA, the GSE’s and other entities is being used to tar and feather appraisers.  I have written about this topic at least 2x in the past.

The latest is this 8/01/23 INSIGHTS newsletter, in the link, from FHFA ...... the ‘conservator’ of Fannie Mae and Freddie Mac:

Blog | Federal Housing Finance Agency New Measures in the UAD Aggregate Statistics: Opportunities to Explore Data on Comparable Properties and Structural, Lot, and Neighborhood Characteristics (fhfa.gov)

Here’s what’s in that (screen shots of the document):




Appraisers don’t appraise properties with CENSUS TRACTS as a paramount data point.  Most of us don’t even know where the tract boundaries are.

The Census Tract Number on the appraisal form is only there so that the LENDER and their regulators can track loans made in Tracts.

Because the ‘researchers’ cannot get into the minds of appraisers to determine how comps are selected, all the ‘researchers’ can do is fall back on this DEMOGRAPHIC metric.  That’s unfair to appraisers.  “We” appraisers are not allowed to use or consider people-oriented DEMOGRAPHICS in reports.

But what’s conveniently overlooked in this metric is the econometric status and other factors that play into where people choose to live and how baseline property valuations are done, starting with the local jurisdiction Assessor.  Those baseline factors started decades ago, long before most appraisers got into the business.

Buyers also don’t use Census Tracts as a determining factor on where to buy their home, unless magically the Tract corresponds with other geographic or personal factors the buyer considers important.  Builders/developers in most cases don’t purposely put up new housing based on Census Tract demographic info.

What’s been happening since 2018 or before is the likes of Andre Perry and Elizabeth Corver-Glenn, Ph.D, etc., have incorrectly used Census Tract people-oriented DEMOGRAPHIC info to inform Congress and others that “We” appraisers are valuing properties all wrong and it must be stopped.

Because of this, Census Tracts are becoming the de facto element “We” must acknowledge and that other people think is proper.

In short, using only this people-oriented DEMOGRAPHIC based data item to judge appraisers is just plain wrong.

Dave Towne, MNAA, AVAA, AGA "  

About David Towne

Certified Residential RE Appraiser at Towne Appraisals

AGA, MNAA, Accredited Green Appraiser - Licensed in WA State since 2003

https://www.linkedin.com/in/dave-towne-4a65226/
https://www.towneappraisals.com/

http://www.e-appraisersdirectory.com/Washington_Appraisers:Towne_Appraisals-48-2989-0-0-1864.html

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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