Some Good News…For a Change?

Some Good News…For a Change? – 2nd Annual List (A Work-In-Progress)

Last year, around Thanksgiving, I had put together a list of some positive things going on for appraisers. It was/is all-too-rare that we hear positive news regarding the appraisal profession. There is an awful lot of complaining that goes on, most of it justifiable, but little good news that gets shared. Part of the problem is that there is no central source for information regarding our profession which appraisers might utilize in order to find out what is going on across the country and affecting our profession, and could be used to enhance our industry and the citizens in each of our own states.

Most of any good news is being generated on a state basisFrom what I have seen, most of any good news is being generated on a state basis. Every small victory in one state can be viewed as a seedling for development and further improvement in 49 other states and other territories.

What you see here is a draft, as I am hoping that those reading this might submit any suggested changes / corrections / additions to the document, which would help make it more accurate and more beneficial to all of us, and I would then put out the update before the end of the year. Some of the information is obviously redundant from last year.

Please feel free to email me at w…@compuserve.com with any other good news you wish to share and have added to the list, or your comments. And keep in mind, these tidbits are only based on information I have come across. Who knows how much other good news there is, waiting to be shared?

Happy Thanksgiving!

Alphabetically by state:

• Alabama – Appraisers have to be paid within 45 days.
• Arizona – Requires appraisers to indicate in their reports the amount of their fee for any AMC appraisals.  Appraisers have to be paid within 45 days. Also, prohibits any party who hires or engages an appraiser from requiring appraisers to sign an indemnification agreement.
• Colorado – Requires appraisers to indicate in their reports the amount of their fee for any AMC appraisals.
• Delaware – Appraisers have to be paid within 45 days.  Also, AMC cannot prohibit appraiser from reporting the fee paid to the appraiser within the report.
• Georgia – Appraisers have to be paid within 14 days by AMCs.
• Illinois – Prohibits AMC from requiring an appraiser to sign any sort of indemnification agreement that would require the appraiser to defend and hold harmless the AMC or any party hiring the appraiser.
• Kansas – Appraisers have to be paid within 45 days.
• Kentucky – Set up an “appraisal management company recovery fund,” to which AMCs have to contribute, with the fund going to provide restitution to appraisers who suffer pecuniary losses.
• Louisiana – Granted the right to their state appraisal board to determine whether or not an AMC operating in the state has paid an appraiser a Reasonable and Customary fee.   Also, had conducted a survey of Reasonable & Customary Fees, the results of which should benefit their appraisers.
• Maryland – Appraisers have to be paid within 60 days.
• Mississippi – Appraisers have to be paid within 60 days.  State Appraisal Board to audit AMC’s for Customary and Reasonable fees.
• Missouri – AMC cannot prohibit appraiser from reporting the fee paid to the appraiser within the report.
• Montana – Appraisers have to be paid within 60 days.
• Nebraska – Appraisers have to be paid within 60 days.
• New Hampshire – AMC cannot prohibit appraiser from reporting the fee paid to the appraiser within the report.
• New Jersey – Gov. Christie vetoed BPO legislation, which would have greatly expanded use of BPOs and CMAs, to the detriment of appraisers, citing the confusion such a bill would create.
• New Mexico – Appraisers have to be paid within 60 days.
• New York – Columbia Society of Real Estate Appraisers became a sponsor of the Appraisal Foundation.  Not much of anything else here, since New York is a non-AMC legislation and non-mandatory state, but hopefully that will change soon.
• North Carolina – In August, 2014 the NC Appraisal Board sanctioned an AMC for non-payment to appraisers within 30 days.  AMC was fined $1,000, with the action being publicly announced.
• North Dakota – Appraisers have to be paid within 45 days.  Also, AMC cannot prohibit appraiser from reporting the fee paid to the appraiser within the report.
• Oklahoma – Appraisers have to be paid within 60 days.  Also, AMC cannot prohibit appraiser from reporting the fee paid to the appraiser within the report.
• Oregon – Appraisers have to be paid within 45 days (however, appraiser and AMC can agree to different payment schedule).
• Tennessee – Appraisers have to be paid within 60 days.
• Texas – Appraisers have to be paid within 60 days.  Also, AMC cannot prohibit appraiser from reporting the fee paid to the appraiser within the report.
• Utah – In August, 2014, published the results of a comprehensive survey with lenders and appraisers regarding Customary & Reasonable appraisal fees, the results of which should benefit their appraisers.
• Vermont – AMC cannot prohibit appraiser from reporting the fee paid to the appraiser within the report.
• Virginia – Requires the appraisal fee to be indicated within the report.  After July 1, 2014, AMCs have 30 days to pay any and all appraisal fees.  Otherwise, they will be fined up to $10,000 for each occurrence.  In November, 2014, Governor of Virginia approved Appraisal Management Company Regulations.  Public forum to be open from 12/1/14 to 12/31/14, with regulations having an effective date of 2/1/2015.
• Washington – Last year, the state of Washington raised its minimum bond requirement for AMCs from $25,000 to $100,000, presumably as a direct result of the bankruptcy of several AMCs.

Also, of the 50 states plus District of Columbia, in 37 of them it is mandatory that certified or licensed appraisers are required for any service for which an opinion of value (evaluation or appraisal) for real property is developed.

Miscellaneous:

In June, 2014, 13 State Appraisal Organizations^* signed a letter in response to the Agencies’ (which included Dept. of the Treasury, Federal Reserve, FDIC, Bureau of Consumer Financial Protection, & Federal Finance Housing Agency) request for comments on the Proposed Minimum Requirements for Appraisal Management Companies. Included in the letter was the statement that it was unacceptable that AMC’s owned or controlled by a federally regulated entity are treated differently from those independently owned. The letter also called for the prohibition of “Broadcasting” appraisal orders by AMC’s, and pointed out the negative influence of AMC’s, including downward pressure on fees and turn times, as regards independent appraisers.

^* The 13 Appraisal Organizations were from Arizona, California, Georgia, Idaho, Illinois, Maryland, Mississippi, North Carolina, Ohio, South Carolina, Virginia, Washington, and West Virginia.