States Back LREAB Against FTC
States Support Louisiana Real Estate Appraiser Board against the FTC
States (and appraisers) are very interested in the outcome of the LREAB vs FTC to protect their own sovereign actions.
On July 11, 2018, the states of Mississippi, Idaho, Iowa, Rhode Island, and Utah filed an amicus brief with the United States Court of Appeals for the Fifth Circuit supporting the Louisiana Real Estate Appraiser Board. See the entire brief here or below.
The outcome of this will impact each and every one of us. As we reported a few days ago, one lender, BB&T, has opted to step up and follow the Veterans Administration Fee Schedule. We are anticipating more lenders and amcs to follow as this case has the potential to be very ugly for many lenders and their agents, the appraisal management companies. Jail time could be in the future for some. Lenders who use appraisal management companies many even require the AMC to follow the Veterans Administration Fee Schedule.
Did Fannie and Freddie Fail the Stress Test? According to an article in American Banker, the two GSEs could need a $78 Billion dollar bail out in the event of an economic crisis. Well it does not seem an appropriate time to start relaxing safe and sound practices with waivers, hybrids and the elimination of the 1004MC. Do they care?
On Friday, Voice of Appraisal released a show about the changes in the IRS requirements for valuations of donated items including real estate. The IRS will only accept a value determined by an appraiser, just the opposite of the direction of other branches of the government. Maybe the IRS has a better understanding of what can go wrong. John Russell, Senior Director–Government Relations and Business Development for ASA, is the guest and talks about how the Treasury Department’s proposal is harmful to the economy. Phil and John discuss how appraisers can benefit from the Treasury being clueless.
It is important for each of us to share this podcast with all your agent contacts. This could keep them out of some legal trouble.
Fannie Mae Says No More 1004MC? While most appraisers see this as a good thing, many lenders and amcs are still going to require it. If by chance your client or amc does not require it, a complete and detailed market analysis is going to be expected. Charts, graphs, and a detailed discussion is going to be expected. This is an area where you could get yourself into a bit of trouble if you short the analysis; especially in a shifting market.
- Please forward samples of Hybrid Appraisal Products you come across to VaCAP. We want to analyze the various types and forward them to the VREAB to help with the committee’s recommendations on these products.
- Contract Analysis Spread Sheets are due by September 30th. Download the spreadsheet with samples here.