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Minimum Requirements for AMCs

Proposed Federal Regulation of Appraisal Management Companies (Minimum Requirements for AMCs) I hear a lot from appraisers concerning their interactions with various appraisal management companies (AMCs). Many keep wondering why appraisers are licensed and strictly regulated while it seems that AMCs for the most part have been left to do whatever they want. That was the case for a while; today the majority of states have already imposed regulations on AMCs. Currently, as part of the Dodd-Frank Act, a group of agencies are working together to set federal guidelines for AMCs. They are looking for feedback on these proposals and...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / CFPB

Good news appraisal profession 5

Good News….For a Change?

Appraisers to be paid within… It 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 our citizens in our own state. From what I have seen, most of any good news is being...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Customary & Reasonable Fees

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The Cost Approach – An Approach to Value, Without Worth, Really?

Back to Basics (Part 2): The Cost Approach – An Approach to Value, Without Worth, Really? The foundations of appraisal were based upon three independent approaches to value. A system, when developed correctly, presents a check and balance within the report. The idea being that when an appraiser takes the time to develop each report, the data will show three independent motivations and three separate value conclusions. Nonetheless, the conclusions will support one another because the underlying principle for each approach is the principal of substitution. For the purposes of valuation or real estate appraisal, the principle of substitution is...

Appraisal / Appraisal News / Appraisers News / Real Estate Owned / REO

Back to The Basics - “Preaching” About the Basics of This Industry 0

Back to The Basics

…“preaching” about the basics of this industry… The more I read residential mortgage related appraisals, underwriter comments and comments from the quality assurance departments from major lenders, the more I have come to realize that it is far beyond time to get back to “preaching” about the basics of this industry. For those of you who have been in the business back when you would take the photos, pull it out of the camera, wait a few moments before you pulled the front off the photo before coating it with the “magic wand” to keep it from fading (thank you...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / UAD / Uniform Appraisal Dataset

You Need This In Your Reports 6

You Need This In Your Reports

Please consider utilizing the following statements in your reports… In my years of appraising, I have had had to argue with many Lenders, Attorneys, and general pains in the butt. What many of us have found is that when Banks screw up, they come knocking at your door. What we need to do as appraisers is to state the separation of Lending liability to appraisal liability. Please consider utilizing the following statements in your reports after your statements of intended users that is required in your reports. I have been using this for years in my reports as it returns...

Appraisal / Appraisal News / Appraisers News / E&O / Errors & Omissions

Confidential Information Sharing with Another Appraiser & USPAP 1

Sharing Report with Fellow Appraisers a USPAP Violation?

Is Sharing a Report with a Fellow Appraiser a Violation of USPAP Confidentiality?…Appraisers routinely share confidential information & communicate assignment results with other appraisers… Appraisers frequently are faced with chances to make mistakes related to confidentiality. The Confidentiality Section of the ETHICS RULE of Uniform Standards of Professional Appraisal Practice (USPAP), as published by the Appraisal Standards Board (ASB) of the Appraisal Foundation and enforced by the North Carolina Appraisal Board, provides the rules for appraisers in North Carolina. Appraisers often are reminded about and advised how to avoid the pitfalls of communicating with property owners, real estate brokers, lenders...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / ASB / NCAB

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State of the Appraisal Profession & Residential Market Overview

In March, I once again traveled to Modesto, CA, and attended the Annual Spring Conference of the Appraisal Institute’s Northern California Chapter. This month, I will share some useful and interesting information from the presentations. The conference focuses on the California market, but many of the presenters also covered topics related to the national market. The first session was “State of the Appraisal Profession”; the speaker was Lance Coyle, MAI, and SRA who is national president-elect of the Appraisal Institute. He started by giving a brief history of the profession and pointed out that significant changes came to the profession...

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisal Organizations / Appraisers News

Should Appraisers Carry Weapons on the Job 4

Should Appraisers Carry Weapons on the Job?

Individual right to possess and carry firearms The Second Amendment to the United States Constitution protects the rights of individuals to keep and bear arms. In the twenty-first century, the amendment has been subjected to renewed academic inquiry and judicial interest. In District of Columbia v. Heller (2008), the Supreme Court handed down a landmark decision, expressly holding the amendment to protect an individual right to possess and carry firearms. In McDonald v. Chicago (2010), the Court clarified its earlier decisions that limited the amendment’s impact to a restriction on the federal government, expressly holding that the Fourteenth Amendment applies...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / SCPAC / South Carolina Professional Appraisers Coalition

A Journal Piece of Appraiser Independence (Part 2): Appraisal Independence Violated 2

Appraiser Independence Violated

A Journal Piece of Appraiser Independence (Part 2): Appraisal Independence Violated History is an important reminder to us all of what went wrong and what went right. When history is known we tend to skip the mistakes we made. We can either choose the right path for the wrong reason, the right path for the ‘right’ reasons and, we can take the wrong path in a similar manner. The MARKET needs to take the right path for the ‘right’ reasons. In years of late 1998 and 1999 several ideas were brought forth to a Forum filled with Individual Appraisers carrying...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Automated Valuation Models

Appraiser Independence Appraisal Independence 4

A Journal Piece of Appraiser Independence

A Journal Piece of Appraiser Independence (Part 1): Where Do We Go From Here? Buyer Beware! Where is the Value? (PART 1) In the years of 2007/2008, the ideologue of, “Appraiser Independence” had become popular for the real estate market’s economic agents and the processes it relies on to function properly. The idea gained respect, due to the perseverance of Real Estate Appraisers carrying out their Independence, during the decade of 2000-2010. The Home Valuation Code of Conduct (HVCC) was introduced according to prevailing design and initiative:  the advancement of a market in need for an inspired and renewed sense of...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Automated Valuation Models