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| June 2003 |
A Publication of
ELLIOTT® & Company Appraisers |
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Second
Homes Are More Popular
for Leisure and Investment |
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Research by National Mortgage News indicated that
many residential lenders are experiencing a significantly higher
percentage of their business involving loans for second homes. These
second homes can be either used for vacation homes or as investment
property.
“Second home volumes are up significantly,” Chase Home Loans president
David Ferriter told National Mortgage News executive editor/associate
publisher Paul Muolo. “It used to be about 5% of our total business. Now
it’s 10%.”
Ferriter’s Edison, NJ, company, which is the fourth largest U.S.
residential lender, has seen its second-home-mortgage business grow a
whopping 675% in the past five years.
The National Association of Realtors (NAR) reported that the typical
second-home buyer is 61 years old and enjoys a household income of over
$75,000.
“When you look at the source of funds for people who bought a second home
since 2000, equity in stocks or bonds were used by 16% of the
respondents,” said NAR executive vice president Dennis Hanlon. “For people
who bought second homes prior to 2000, the sale of stocks or bonds
accounted for only 7% of the buyers.”
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Proposed Money Laundering Rule
Draws Objections |
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 The
Appraisal Institute (AI) and the American Society of Appraisers (ASA) have come
out against the inclusion of appraisers in a proposed rule by the U.S.
Department of the Treasury Financial Crimes Network (FinCEN) concerning
money-laundering risks proposed by people “involved in real estate closings and
settlements.” FinCEN lists appraisers among this group of people much to the
chagrin of the two appraisal organizations.
“The potential for real estate appraisers to be involved in money laundering
transactions is virtually nonexistent,” the two organizations said in a joint
comment letter to the Treasury. “The appraisal is a service that is typically
performed for a financial institution for a fee. Since the appraisal report
itself is not an asset, it cannot help with the conversion of illegal money into
real estate. At no time do real estate appraisers assist with the conversion of
funds from one form of asset to another.”
The letter also noted that the Uniform Standards of Professional Appraisal
Practice do not call upon appraisers to identify the source of the buyer’s
equity investment. In fact, acquisition of this type of information is not part
of the expertise of appraisers. |
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Quotes
of Wisdom and Wit |
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“By working faithfully eight hours a day, you may get to be a
boss and work 12 hours a day."
– Robert Frost
“Wealth is not his that has it, but his that
enjoys it."
– Benjamin Franklin
“Those who never retract their opinions
love themselves more than they love the truth.” – Joseph
Joubert
“Some people are so afraid to die they
never begin to live.” – Henry Vandyke
“The hardest years in life are those
between 10 and 70.” – Helen Hayes
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ELLIOTT® & Company Appraisers
currently offers appraisal service throughout all 50 of the United
States. Clients are encouraged to place orders directly to any
office local to properties to be appraised or to the central office
for assignment.
Orders may
be placed via telephone, fax or through the company's Web site. All
Internet orders will be processed through the central office.
Some
Offices Are Independently Owned and Operated
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3316-A Battleground Avenue
Greensboro, NC 27410
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