Fannie Mae Releases New Selling Guide
In April of 2013, Fannie Mae released its updated Selling Guide. “Appraiser Independence Requirements” and “Appraiser Selection” sections were updated…
Tagged: appraiser independence
Appraiser Independence
Hire an Independent Property Appraiser for an Unbiased Evaluation Dealing in real estate requires a lot of knowledge about property markets. Not all buyers and sellers are well-acquainted with such matters. In such cases, it becomes important to hire a third party like a property appraiser who holds expertise in such matters. Why an Appraiser? Involving a property appraiser brings an element of impartiality in property dealings. When you deal directly with the opposite party
NAIHP Promotes New Appraisal Rules on Capitol Hill
NAIHP acknowledges neither HVCC nor Appraiser Independence rules require the use of AMC’s. The conflict of interest rules contained in the “Interim Final Rule on Appraiser Independence,” were designed to establish a firewall between a loan production department ordering valuations of residential real estate and appraisers, who perform valuations. The Federal Reserve Board (FRB), who established the Interim Final Rule to replace the Home Valuation Code of Conduct (HVCC) in October of 2010, recognized it was not always practical to separate these functions in small financial institutions, which is why the FRB created two sets of firewall requirements: one for...
NAHB Recommends Reform of Residential Appraisal System
February 20, 2013 – Serious problems in the residential appraisal process must be addressed in order to restore confidence in the residential real estate market and to establish a foundation for sustainable growth of the U.S. economy, according to a new white paper from the National Association of Home Builders (NAHB). Appraisals are regulated by the states, so standards and requirements vary greatly, resulting in a system that is inconsistent, confusing and does not serve consumers well. The white paper, “Comprehensive Blueprint for Residential Appraisal Reform,” addresses these problems. It is the work of an Appraisal Working Group formed by...
CoesterVMS Flat Fee Appraisal Structure Controversy
Lately, there has been some controversy surrounding the announcement of CoesterVMS implementation of a flat fee appraisal structure which went into effect on January 1. The announcement appeared on CoesterVMS Blog on January 7: CoesterVMS, a nationwide appraisal management company, has implemented the appraisal industry’s first ever flat fee model for residential appraisals. Under the flat fee model, which took effect on January 1, 2013, all conventional appraisals for mortgage lenders are priced at $450 while FHA appraisals are $475*. Customarily, appraisal management companies utilize a tiered fee structure, whereby prices are determined based on the property type or the...
Petition RE the Interim Final Rule on Appraiser Independence
The National Association of Independent Housing Professionals (NAIHP) led by Marc Savitt is petitioning the Consumer Financial Protection Bureau and is asking those harmed by the Interim Final Rule on Appraiser Independence to sign and forward the online petition. To Consumer Financial Protection Bureau (CFPB), Richard Cordreay, CFPB Director: Allow NMLS loan originators to order appraisals directly from appraisers Consumers and small business are being significantly harmed by the Interim Final Rule on Appraiser Independence. Consumer costs have increased by over 2.8 Billion dollars a year; thousands of small business residential appraisers have gone out of business, as the rule diverts...
Possible USPAP Changes
The Uniform Standards of Professional Appraisal Practice (USPAP) is always a work in progress. If you haven’t heard, the Appraisal Standards Board (ASB) is hard at work considering potential changes for the 2014 –’15 edition. On Aug. 15, 2012, the Board released a second exposure draft covering these proposed changes. The ASB’s work plan for the 2014-’15 edition of USPAP includes reviewing and revising as needed the following areas of USPAP: Reporting and Communication Requirements Reporting Options Retirement of Standards 4 and 5 Other revisions and additions as needed to ensure clarity and relevance The deadline for comment on this...
Letting the AIR Out!
After all it’s AIR; not a vacuum. First, HVCC is dead. Dead and buried. It died back in 2010. Second, even when it was still plaguing the profession, it never stated that appraisers couldn’t or shouldn’t talk to real estate agents or brokers. Ever. I still have a copy of the HVCC because you never know when revisionist history will appear. Eventually, AIR took its place. AIR stands for Appraiser Independence Requirements. I have a copy of AIR. It resembles HVCC in many ways but, again, it doesn’t say a single word about appraisers being prohibited from chatting up or...
New Trade Association Announces Launch to Support Appraisal Industry
Announcing the Official Formation of the National Association of Appraisal Management Companies (NAAMC) Providence, RI (PRWEB) August 31, 2012 Filling a long missing void in the ever-changing Appraisal and Residential Home Mortgage sectors, a collection of Industry-leading Appraisal Management Companies joined forces to create a unique and extremely necessary organization exclusively committed to supporting all entities impacted in the Residential Appraisal and Valuation industries. Officially formed in late July 2012, several months’ pre-launch due diligence was completed by the sixteen Founding Members of the National Association of Appraisal Management Companies (NAAMC). This non-profit trade association is officially incorporated in Delaware and...
AGA Statement to House Financial Services Committee Hearing
The American Guild of Appraisers Statement to House Financial Services Committee Hearing Madam Chairman and Members of the Committee, on behalf of the American Guild of Appraisers/OPEIU Guild 44 (AGA) thank you for the opportunity to submit this statement in connection with today’s hearing on the real estate appraisal profession and the regulation of appraisers and appraisal practice. The AGA is a membership organization that seeks to represent the interests of appraisers related to federal and state regulation of appraisal practice and to industry practices that impact on appraisers and appraisals. In addition, working closely with other like-minded organizations including...
