Category: Appraisers News

February 24, 2012

What is the Statute of Limitations for a Lawsuit Against an Appraiser in my State?

The statute of limitations period for a professional negligence claim against an appraiser ranges from 10 years in one particular New England state down to 1 year in a certain Southern state. Application of the “discovery rule” also varies widely. In 2012, most lawsuits against both residential and commercial appraisers continue to relate to appraisals performed at or near the peak of the real estate price bubble, 2004 to mid-2008. Appraisers dragged into these claims often ask us about the relevant statutes of limitations. The question is usually something like: “I did the appraisal in 2005, more than five years...

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

February 22, 2012

NAR Adopts Broader Valuation Policy

The National Associaiton of REALTORS® (NAR) continues its holistic approach to valuing real property with the adoption of its Responsible Valuation Policy. The document is the culmination of NAR’s efforts to consider all methods of valuing real property. NAR previously hosted two valuation summits and two working groups were convened. Members from across NAR’s policy structure had input in the document and included representation from the Professional Standards, Real Property Valuation/Appraisal, Federal Housing Policy, Conventional Finance and Lending, Commercial, and Business Issues Committees. Input was also provided by RPR. The document will serve as the foundation for NAR’s policy position...

Appraisal / Appraisal News / Appraisers News / Automated Valuation Models / AVM / NAR

February 21, 2012

Comparable Sales in Declining Markets

Appraisal Institute Helps Appraisers Choose Comparable Sales in Declining Markets The nation’s largest professional association of real estate appraisers published guidance to help appraisers know when and how to use distressed sales, such as foreclosures, as comparable sales. Such knowledge is particularly crucial in the current market where distressed sales are common, creating complex valuation challenges. The Appraisal Institute noted that appraisers often use comparable sales (or “comps”) to help develop an opinion of value. But in today’s distressed real estate market, many potential comparable sales represent foreclosed properties. Some owners have complained their home’s values have fallen because appraisers...

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

February 20, 2012

Developing and Reporting Exposure Time

Did you know that the 2012 USPAP has a new development and reporting requirement? Effective January 1, 2012; when exposure time is a component of the definition for the value opinion being developed, the appraiser must also develop and state in the report an opinion of reasonable exposure time linked to that value opinion. The following is the exact language in the USPAP; DEFINITIONS Exposure Time: estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / ICAP / Illinois Coalition of Appraisal Professionals

February 15, 2012

Why are Lenders not Allowing Trainee Appraisers?

Appraisalbuzz recently posted a ‘White Paper on Training the Next Generation of Appraisers. I thought it was a good enough read to repost to my subscribers. Please read the article HERE and see my comments below: I commend the authors of this well-thought out article. Though I do not agree with every suggestion contained within, I support the general purpose of the article and I thank those who have taken the time to put it together. There are some great suggestions and ideas in this article and every appraiser ought to read it and be a part of implementing a...

AARO / Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / Association of Appraiser Regulatory Officials

February 14, 2012

Preventing Mortgage Fraud & Foreclosure Scams

Free FHA Webinar for Appraisers on Preventing Mortgage Fraud and Foreclosure Scams The Federal Housing Administration (FHA) is offering a webinar on February 28, 2012 on Preventing Mortgage Fraud and Foreclosure Scams: February 28, 2012 – Preventing Mortgage Fraud and Foreclosure Scams Webinar. The webinar will provide information on the detection and prevention of Mortgage Fraud and Foreclosure Scams and is presented by the Department of HUD, Federal Reserve Bank, Federal Trade Commission, and the Federal Deposit Insurance Corporation. The intended audience includes Mortgage Industry (lenders, housing counselors, real estate agents, appraisers);Regulatory/governmental entities; and Consumers. Registration required, no fee.

Appraisal / Appraisal News / Appraisers News / Federal Housing Administration / FHA / Tutorials

February 13, 2012

NAIHP Exposes AMC Tax Evasion / RESPA Violations

AMCs violating RESPA NAIHP recently discovered many Appraisal Management Companies (AMC’s), are operating without authority in most states and have failed to pay state income tax. When businesses are formed, they are required to register with their Secretary of State, for authority to conduct business. That registration alerts the State Tax Department you exist and may be responsible for certain taxes. The same holds true if you operate outside your home state, according to Marc Savitt, NAIHP President. “Most AMC’s are only registered in a handful of states, but operate nationwide. If you’re not registered, you’re not paying taxes,” said...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Home Valuation Code of Conduct

February 11, 2012

Signed or Unsigned that is the Question

There is an interesting discussion taking place on some of the forums over the last 9 days with regard to USPAP 2012-2013. Whether or not the additional certifications require a signature. Before weighing in on an esoteric discussion, I would like to remind everyone that the first and foremost intent of USPAP is clarity. To provide an opinion in a manner that is clear, easy to understand, and professionally derived. Therefore, as long as you pay attention to the particulars of USPAP and provide your reports in a manner that is clear, easy to understand, and professionally derived you should...

Appraisal / Appraisal News / Appraisers News / Uniform Standards of Professional Appraisal Practice / USPAP

February 11, 2012

AMC’s Filing Complaints Against Appraisers

AMC’s are sending in complaints on appraisers… From ICAP – Illinois Coalition of Appraisal Professionals “Good afternoon ICAP’ers, I am writing to our residential members regarding a growing problem that ICAP is concerned with regarding lenders and AMC’s filing complaints against appraisers. THE SETUP: You receive a call from a lender or an AMC who wants to talk to you about an appraisal assignment you recently completed for them. The call usually comes from the QC Department at the post closing stage of the loan. They start questioning you on your line item adjustments. All the comparables are on smaller...

ACOW / AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations

February 9, 2012

Urge your Representative to Vote for Regulation of AMCs

Urge your Representative to Vote for HB 210 Regulation of AMCs Hello VaCAP! As you know, VaCAP leadership has been working hard with VAR and the VAR Appraisal Alliance to help draft and support an AMC regulation bill. This bill is currently in the Virginia House of Delegates, and will cross over to the Senate on February 15th. Since many local realtor associations now require appraisers to be full members in order to obtain access to their MLS systems, VaCAP has many members who are also members of VAR. If you are a member of VAR, your dues have helped...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisers News