Category: Appraisal Organizations

Appraisal Institute members in Capitol Hill 2

Members of AI Urge Congressional Action on 3 Bills

Nearly one hundred members of the Appraisal Institute went to Capitol Hill May 23 to urge Congress to act on three bills that could significantly impact the valuation profession. Attendees of AI’s annual Leadership Development and Advisory Council, held May 22-24 in Washington, D.C., lobbied lawmakers and their staffs on S. 3047, the Expanding Homeowners Refinancing Act; H.B. 3461/S. 2160, the Financial Institutions Examination Fairness and Reform Act; and S. 3085, the Responsible Homeowner Refinancing Act of 2012. S. 3047 builds on President Obama’s proposal — announced during his 2012 State of the Union address — that home loans not...

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June 30th Is Fast Approaching

Have you taken your 2012-2013 National USPAP Update yet? Section 1455.160: (Paraphrased) A real estate appraiser must complete the 7-hour National USPAP Update Course or its equivalent within 6 months after the effective date of USPAP. Those real estate appraisers issued a license more than 6 months after the effective date of USPAP shall complete the 7-hour National USPAP Update Course within 6 months after licensure. This has been Illinois law since January 20, 2011 which means that it was meant to begin with the 2012-2013 release of USPAP. I get a lot of appraisers who say the following: “But,...

Seasoned Professionals Wake up call 3

Wake Up Call for Seasoned Professionals

Rookie mistakes by seasoned professionals are inexcusable. Here’s a disturbing trend that the board is seeing more frequently: Appraisers who do not know how real estate works. What do I mean by that? There are complaints pouring in where the appraiser doesn’t know how to read contracts, riders, leases, zoning restrictions, blue prints, or listings. I’m not talking about complex documents or Associate Trainees struggling with their first few assignments. I’m referring to seasoned professionals who’ve been in the business for five, ten, or even thirty years. We have complaints where appraisers can’t tell when they’ve been presented with a...

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Residential Appraising in a Declining Market

APB Valuation Advisory #3: Residential Appraising in a Declining Market The Appraisal Foundation is pleased to announce that the Appraisal Practices Board (APB) has adopted “APB Valuation Advisory #3: Residential Appraising in a Declining Market.” The APB is an independent Board of The Appraisal Foundation, which is responsible for developing voluntary guidance on recognized valuation methods and techniques. APB Valuation Advisory #3: Residential Appraising in a Declining Market, includes guidance on: How Should an Appraiser Define a Declining Market? What Databases are Available to Support a Market Trend Conclusion? What are Some Alternative Value Definitions? Defining a Market vs. a...

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Sense is like courtesy it is no longer common!

I dealt with an old question recently that I felt was pertinent and worthy of repeating. The question arose in Brooklyn, NY when an underwriter demanded that the appraiser include the basement area as part of the gross building area when comparing the subject to the comparable sales. After all they reasoned, Fannie Mae guidelines, i.e. Property and Appraisal Guidelines, XI 405.07 state, “Gross building area, which is the total finished area (including any interior common areas, such as stairways and hallways) of the improvements based on exterior measurements, is the most common comparison for two-to four-family properties. The gross...

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Cert 22 With a Twist

I’ve written about this before but it’s well worth repeating. Please keep in mind, this is and has been the position of the Illinois board. If you appraise a property for Client A, and two years later, Client B wants you defend your report, you’re not required to answer their queries about the report created for Client A. What if Client B threatens to blacklist you for not cooperating in the review? When does the client relationship end with Client A? USPAP states: An appraiser must protect the confidential nature of the appraiser-client relationship. That seems clear enough. So, who...

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Memo to KY AMCs

Memorandum to Kentucky Registered AMCs Regarding Appraiser Independence, Objectivity, and Impartiality From: Larry Disney, To: Kentucky Registered Appraisal Management Companies and Credentialed Appraisers, Date: March 29, 2012 Subject: Appraiser Independence, Objectivity, and Impartiality The Kentucky Real Estate Appraisers Board staff has received calls from Kentucky credentialed appraisers in the past two weeks concerning the following issue that is being propagated by Appraisal Management Companies: When appraising one unit residential properties and reporting the results of the appraisal development using a 1004 Fannie Mae form, the appraisers are told that if the cost approach is developed and reported, regardless of reasoning,...

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TAF Response RE Gag Rule

TAF Response to Columbia Institute eVIP Appraisal News April 6, 2012, Mr. George Harrison, The Columbia Institute Dear Mr. Harrison: This is regarding an item that appeared in the “Ask George” column in the April 2 edition of eVIP Appraisal News. The question and answer relates to Appraisal Sponsors of The Appraisal Foundation apparently being under some type of constraint regarding freedom of expression. You have made a similar claim in a previous column and we thought that it was time to correct the record. You state that “The Appraisal Foundation has a restriction clause – gag rule – in its...

Top to Bottom Complaint Primer 0

Top to Bottom: Complaint Primer

“Why don’t you write about the complaint process from start to finish?” Howard Richter, MAI of IACREA made a great suggestion for an article. “Why don’t you write about the complaint process from start to finish?” Okay, Howard. Let’s do it! Whether complaints come from homeowners, lenders, AMCs, other government entities, they all find their way to my desk via Complaint Intake. The two-page complaint form is on-line and was designed to make it easy for the complainant and for the Department to get to the heart of the problem. Complaints come in all shapes and sizes. Some are vague...

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Questions & Comments RE Customary and Reasonable Fees

Where To Direct Questions and Comments Regarding Customary and Reasonable Fees The appropriate agency to receive your concern about a creditor’s compliance with the Truth in Lending Act (TILA), including the requirement for the creditor or the creditor’s agent (including an AMC) to pay an appraiser a customary and reasonable fee, is the agency that enforces TILA with respect to the creditor. With respect to insured depository institutions of more than $10 billion and their affiliates, the Consumer Financial Protection Bureau (CFPB) is the appropriate agency. For other non-depository institutions, the appropriate agency to receive the complaint is the CFPB...

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