Category: Appraisal Organizations

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AMC Oversight Bill Signed into Law in Illinois

New AMC Law in Illinois August 31, 2011 – Illinois became the 29th state to enact a law that provides for comprehensive oversight of appraisal management companies. Gov. Pat Quinn signed Senate Bill 1539 into law Aug. 26, and it took effect immediately. Under the new law, AMCs are required to register with the Illinois Department of Financial and Professional Regulation, which would have significant authority to “ascertain the qualifications and fitness of applicants for registration and pass upon the qualifications of applicants for registration” and allow AMCs to be disciplined for “professional incompetence” and “gross malpractice.” In addition, the...

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Appraisal Institute New Residential Green and Energy Efficient Addendum

On September 29th, the Appraisal Institute released a form intended to help analyze values of energy-efficient home features. It is the first of its kind intended for appraisers’ use. The industry leader in green valuation, the Appraisal Institute issued the form as an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for mortgage lending purposes. Used by Fannie Mae, Freddie Mac and the Federal Housing Administration, Form 1004 is completed by appraisers to uphold safe and sound lending. Currently, the contributory value of a home’s green features is rarely part of the equation. “This...

USPAP 2012-2013 0

2012 – 2013 USPAP Now Available

The Appraisal Foundation (TAF) announced that the 2012 – 13 edition of the Uniform Standards of Professional Appraisal Practice (USPAP) is now available. The 2012-2013 edition of USPAP will be valid for two years, effective January 1, 2012 through December 31, 2013. According to a TAF press release “the new edition includes the standards of professional practice for all appraisal disciplines as well as guidance from the Appraisal Standards Board (ASB) in the form of USPAP Advisory Opinions and USPAP Frequently Asked Questions (FAQs).” As with the prior edition, the new edition includes the standards of professional practice for all...

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Exposure Draft: Adjusting Comparable Sales for Seller Concessions

The best way for valuation professionals and the public to make a difference in their profession is to offer comments to the Boards of The Appraisal Foundation when exposure drafts are released for comment. The Appraisal Practices Board (APB) has recently released its first Exposure Draft entitled Adjusting Comparable Sales for Seller Concessions. All interested parties are encouraged to comment in writing to the APB before the comment deadline of December 2, 2011. Written comments on this Exposure Draft can be submitted by mail, email and facsimile:

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CHASEing USPAP

Chase has turned a lot of appraisers into state appraisal boards. They’ve been responsible for nearly 20% of the Illinois caseload since 2008. The volume ebbs and flows from one quarter to the next. Not all of their complaints are good. Then again, not all of them are bad, either. All of their complaints insist that the original appraisal was too high. In their complaint submissions to us, they generally include a letter to the original appraiser that predates the complaint by months. In Chase’s complaints to us they typically include an appraisal review of some type. The standard review is a form 2000 as completed by an Illinois appraiser. Sometimes those reviews...

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UAD is Data Mining Nothing More

This article was published in the September 2011 issue of the IllinoisAppraiser Newsletter Blue Pill – Red Pill If you’re reading this on September 1st, you’re probably sitting in front of an unfamiliar drop-down menu on your appraisal software or frantically thumbing through Appendix D looking for an answer that isn’t there. Today is D-Day. Actually, UAD-Day. While Fannie Mae and Freddie Mac slide another deck chair over to catch a better view of the ice berg they’ve already hit three years ago, appraisers around the country are wrestling with Fannie & Freddie’s latest contribution to mind-numbing, muddled, mortgage malaise;...

Danger of 1004MC 2

Danger of 1004MC

1004MC : Danger! If you conduct appraisals for residential lending, you are familiar with the 1004MC. Many appraisers rely upon the data which populates the form for conclusions (e.g., trends for Property Values and Prices, relationship between Supply & Demand, etc.) which are later communicated on page 1 of a Fannie Mae appraisal report form. Of course, the data and analysis in the 1004MC are, in part, used by the appraiser in analysis in the Sales Comparison Approach. What could go wrong with this scenario? The correct answer is plenty, resulting in the appraiser communicating misleading opinions and conclusions. What...

VaCap Second Letter to Attorney General Cuccinelli Regarding UAD 0

VaCap 2nd Letter to Attorney General Cuccinelli RE UAD

VaCap Second Letter to Attorney General Cuccinelli Regarding UAD 08/29/2011 Kenneth T. Cuccinelli, II Office of the Attorney General 900 East Main Street Richmond, VA 23219 Re: September 1st Implementation by GSEs Dear Sir: In a letter dated July 19th, 2011, the Virginia Coalition of Appraiser Professionals (VaCAP) brought to your attention the serious concerns that we have about the impending implementation of new appraisal reporting requirements by the Government Sponsored Enterprises (GSEs), which are The Federal National Mortgage Association (FNMA) and The Federal Home Loan Mortgage Corporation (FHLMC). Since Fannie Mae and Freddie Mac control a very large percentage...

VREAB Letter to FHFA Calling for Delay of UAD Implementation 0

VREAB Letter to FHFA Seeking Delay of UAD Implementation

VREAB Letter to FHFA Calling for Postponement of UAD Implementation August 29, 2011 Mr. Alfred M. Pollard, General Counsel Federal Housing Finance Agency Dear Mr. Pollard: At its August 16, 2011, meeting, the Virginia Real Estate Appraiser Board (Board) received public comment from a number of Virginia appraisers expressing their unease with the September 1, 2011, implementation of the Uniform Appraiser Database (UAD) by Fannie Mae and Freddie Mac under the direction of the Federal Housing Finance Agency (FHFA). These and other Virginia appraisers have concerns that conforming to the UAD might lead to misleading appraisal reports as the UAD’s...

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The Appraisal Foundation Responds to August 12 Wall Street Journal Article

On August 12, 2011 the Wall Street Journal published an article entitled “Judgment Call: Appraisals Weigh Down Housing Sales.” The Appraisal Foundation has submitted a letter to the editor in order to clarify several aspects of the article. August 17, 2011 The Editor The Wall Street Journal 1211 Avenue of the Americas New York, NY  10036 Dear Editor: We  are  contacting  you  in  reference  to  an  article  written  by  S.  Mitra  Kalita  and  Carrick Mollenkamp that appeared in The Wall Street Journal on Friday, August 12, entitled “Judgment Call: Appraisals Weigh Down Housing Sales.” As the Congressionally-authorized organization that establishes...

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