ASC Extends the ND Waiver for Another Year
On July 29, 2020, the Appraisal Subcommittee voted to extend the North Dakota waiver for another year with a 6 to 1 vote. The overarching reason to extend was because of the COVID outbreak prevented them from meeting in person this year. HUD was the only agency to take issue with this and I have to say I agree with their reasoning. North Dakota had 7 months to come up with a solution before COVID hit. I’m not taking ASC to task on this though because there is some validity to the COVID excuse.
My assumption is that there is no solution beyond simple economics. North Dakota is largely a rural state and the economics of inadequate fees make it very difficult to have timely coverage. This is a challenge across all rural markets yet North Dakota claims they are different and were unable to come up with why and how to solve it over seven months. And that’s because this is purely a political ploy for the ND banking lobby who got the governor to opt-in because the banks don’t want to pay market rates for appraisals. Well, that’s not how the economy works. Prediction: 1 year from now North Dakota still won’t have a solution and they won’t get an extension.
Looks like I was correct. Even though ND had 7 months before the pandemic to come up with answers, they offered no solutions. The pandemic bought ND time and ASC showed patience. The only solution appears to be economic and many other rural markets seem to be just fine. #politics https://t.co/Dz8i56DZdT
— Jonathan Miller (@jonathanmiller) July 30, 2020