Monthly Archive: July 2015

Calling on Licensed & Certified Residential Appraisers - Be the Change - Imagecredit Flickr - Simon Greening 0

Calling on Residential Appraisers

Calling on Licensed & Certified Residential Appraisers Appraisers, The Appraisal Foundation seeks candidates for its Boards. We need a diversity of ‘license types’ to serve on these Boards. Your service time and travel expenses are covered. I just completed an analysis for the current members on the Appraiser Qualifications Board. Individually, they are all nice and very qualified people, but they are ALL Certified General appraisers. In the US there are fewer CG’s than there are License or Certified Residential appraisers. The composition of the AQB has been largely dominated by CG’s for years. These are the folks who have mandated...

The "Property Prices Reach All Time High" Hype - Imagecredit Flickr - FaceMePLS 2

The “Property Prices Reach All Time High” Hype

“Property Prices Reach an All-Time High” Oh really? The subject line is a press release headline put out by a national sales organization. Do you buy into the hype, or do you actually do local comparable property market research to verify trends? I just completed an appraisal on a property I appraised 2 years ago. I did a 5 year market study on comparables then, and found the market for that type of property had been DECLINING at that time. I did another 5 year market study on this same property this time around. And guess what? The property values for this type...

Proposed Amendments to the Sentencing Guidelines in Mortgage Fraud Cases 1

Convicted for Committing Fraud Unknowingly?

Appraisers need to have intent in order to be convicted of fraud… I have recently read several different posts and articles on the Internet stating that some appraisers have committed fraud unknowingly. Some describe instances of stating condition to be average when the property needed work, or “tweaking” the numbers to make the deal work. First of all it is important to note, the FBI defines mortgage fraud as “any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan”. By that definition, such fraud can clearly be committed by both...

AMC Dangers: Appraisal Management Companies (AMC) are changing how our profession works 4

AMC Dangers to the Consumer

Appraisal Management Companies (AMC) are changing how our profession works. It’s important to know exactly how they are affecting the real estate process, especially if you are a home-owner, looking for real estate or are involved in another part of the property. Who does an Appraiser work for? An appraiser works for “The Client” named in the report who ultimately responsible for the appraiser’s compensation. It is important to realize that while a borrower may have paid a lender or third party the cost of the appraisal, “The client” remains the only party authorized to use the report. The appraiser...

AQB Changing Course on Appraiser Qualifications? 60

AQB Changing Course on Appraiser Qualifications?

Is AQB Potentially Changing Course on Appraiser Qualifications? Appraisers & others, The Appraisal Qualifications Board (AQB) is one of the voluntary Boards under The Appraisal Foundation. Their role is to analyze, debate, review, and decide the minimum qualifications necessary for a person to become an appraiser. While all who currently or in the past have served on this Board, are individually good and experienced people, collectively by Board action they have nearly caused residential appraising to grind to a halt due to their highly restrictive policy decisions. Yes, this a strong statement, and ‘halting’ won’t happen until the majority of current...

Appraisal Fee Disclosure - Call To Action - CFBP requesting comments 8

Appraisal Fee Disclosure – Call To Action

Important – Call to Action This must be done by Tuesday July 7 The Consumer Financial Protection Bureau (CFPB) is requesting comments on the proposed amendment to the “Know Before You Owe” mortgage disclosure rule, which proposes to move the rule’s effective date to October 3, 2015. We feel it is very important that the appraisal fee be disclosed separately from any add on fees such as an AMC fee. Recently 23 state appraiser coalitions including the Louisiana Appraisers Coalition worked together and submitted a letter to the CFPB about making it a requirement to separate the fees of the...

Appraisal Institute Seeks Separation of Appraisal and AMC Fees 3

Separating Appraisal Fees from AMC Fees

Disclosures regarding payments for appraisal management services versus appraisal fees On July 1, 2015, the Network of State Appraiser Organizations (NSAO) submitted a joint letter in response to the CFPB request for comments on the proposed amendment to the “Know Before You Owe” mortgage disclosure rule, which proposes to move the rule’s effective date to October 3, 2015. It specifically addresses the lack of requirement to mandate disclosure to the consumer that the fee paid for an “appraisal” be clearly defined and break down what portion is being paid to the lenders’ third party appraisal management company and which portion of the fee is...

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