Category: Uniform Standards of Professional Appraisal Practice

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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,...

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What is the FDIC Suing Appraisers About? Some Examples of the FDIC’s Specific Allegations?

The FDIC continues to sue residential appraisers in connection with origination appraisals and review appraisals performed for failed lenders between 2003-2009 on loans now in default. It may be helpful, or scary, for appraisers and AMCs to see for themselves exactly what kinds of alleged USPAP violations or other errors the FDIC is claiming in lawsuits against appraisers. Therefore, I have copied below the FDIC’s actual allegations against several appraisers. These are word-for-word the entirety of the FDIC’s claimed errors against these appraiser defendants. Please don’t shoot the messenger. I’m a lawyer, not a USPAP expert, but even I know...

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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...

Petition Opposing Coercive and Abusive Behavior of Chase Bank and Other Lenders Against Appraisers 8

Petition Opposing Coercive & Abusive Behavior Against Appraisers

Petition Opposing Coercive and Abusive Behavior of Chase Bank and Other Lenders Against Appraisers Please consider signing the online petition launched by John Dingeman opposing the coercive and abusive behavior of Chase Bank and other lenders against appraisers. Stop Intimidating, Threatening, and Bullying Appraisers Chase Mortgage Banking, like other financial institutions have come into possession of appraisals where a loan has been assigned or sold to them. If Chase had any issues with these appraisals during the underwriting process when the loans were written, they would have asked the appraiser’s “Client” for clarification, explanations, and/or corrections. With every foreclosure, Chase...

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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,...

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...

Proposed Amendments to the Sentencing Guidelines in Mortgage Fraud Cases 1

Sentencing Guidelines Proposal

Proposed Amendments to the Sentencing Guidelines Speaking at a March 14 hearing in Washington, D.C., the Appraisal Institute urged a federal judicial agency to require the use of real estate appraisals when calculating loss in mortgage fraud cases. In prepared written testimony, Appraisal Institute President Sara W. Stephens, MAI, told the U.S. Sentencing Commission, “We believe the Commission should adopt a special rule for determining the fair market value of real property if the mortgaged property has not been disposed of by the time of the sentencing. However, this rule should require use of real estate appraisals prepared by qualified...

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For Clarity Sake

Once again I find myself harping on the original intent of USPAP. The purpose of the Uniform Standards of Professional Appraisal Practice (USPAP) is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. It is essential that appraisers develop and communicate their analyses, opinions and conclusions to intended users of their services in a manner that is meaningful and misleading. (quoted from the Preamble of USPAP). Why is it then that GSE’s can then dictate forms, like the MC Addendum (or affectionately known as the Market “Confusion” Addendum)?

Small business cash crunch 0

Small Business Cash Crunch

Appraisers & their frustration with cash flow… I recently attended the Association of Texas Appraisers (ATA) Mid-Year Meeting in New Braunfels, TX. I met many wonderful ATA members and the meeting was well organized.  Much of the meeting consisted of discussions on Texas Appraiser Licensing Certification Board (TALCB) commission activities, technology tools for appraisers, and USPAP. Since the topic of cash management rarely is presented in any appraisal meeting or event (but it should), I took the time during the networking sessions to learn more about the financial successes, struggles, and conditions of appraisers and their businesses. Some appraisers shared they are...

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Thing of Value

Pay for an assignment? “Never. It’ll never happen!” It happens all of the time. While most appraisers would never dream of violating the Management portion of the Ethics Rule by paying for work…many do it every day without giving it any thought. Management: An appraiser must disclose that he or she paid a fee or commission, or gave a thing of value in connection with the procurement of an assignment. Comment: The disclosure must appear in the certification and in any transmittal letter in which conclusions are stated; however, disclosure of the amount paid is not required. In groups or...

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