Tagged: appraisal news

August 23, 2013

NJ Governor Vetoes BPO Cites Consumer Confusion

NJ Governor Vetoes BPO Legislation, Cites Consumer Confusion On Aug. 19, New Jersey Gov. Chris Christie vetoed bill S. 2551, legislation that would have significantly expanded the ability of the state’s real estate professionals to provide broker price opinion and comparative market analysis services. In his veto message to the Legislature, Christie said, “While I appreciate the desire to facilitate additional business for real estate licensees in the state of New Jersey, I am concerned about potential consumer confusion.” The Appraisal Institute chapters in New Jersey testified in strong opposition to this bill when it was going through the legislative...

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

August 22, 2013

Former Chief Appraiser Sues AMC

Former Chief Appraiser Sues Appraisal Management Company Over Alleged Appraisal Independence Violations With respect to appraisal management companies (AMCs), based on the large volume of appraisal regulatory and legal matters that we track, I feel comfortable stating that there is no material governmental enforcement of the appraisal independence rules adopted in the Dodd-Frank Wall Street Reform and Consumer Protection Act (or in the earlier rules adopted by the Federal Reserve Board in 2008 as part of Regulation Z). Neither the Consumer Financial Protection Bureau nor any state attorneys general have undertaken any significant investigations or taken any significant legal actions...

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

August 21, 2013

The Risk of Using One Data Source

With appraisers being asked to do more work for the same amount of money and with lawsuits against appraisers being more prevalent today than ever before, it is increasingly important for real estate appraisers to check and double check the data they use when preparing a report. Since many appraisers are still feeling the economic impact of the real estate downturn on their bottom line, more and more are looking to reduce the cost of the data they use. While this may seem to be a simple and sound economic decision, it can lead to some serious negative consequences. USPAP...

Appraisal / Appraisal News / Appraisers News / E&O / Errors & Omissions / Uniform Standards of Professional Appraisal Practice

August 15, 2013

Trainees Hiring to Remain Weak

Appraiser Trainees Hiring to Remain Weak: AI Survey Hiring of real estate appraiser trainees will remain weak for the next one to two years, according to an Appraisal Institute survey released July 17. About one-fifth (21 percent) of commercial appraisers said they would add full-time trainees; fewer than one-tenth (9 percent) of residential appraisers said they would do so, according to the survey of U.S. real estate valuation professionals conducted in May and June. Commercial appraisers account for less than one-third of practicing U.S. appraisers. According to the survey, 93 percent of the residential appraisers who employ trainees employ one...

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

August 8, 2013

Free Webinar on FHA Appraisal Requirements – Property Type

On August 28, 2013, the Federal Housing Administration (FHA) is offering a 90-minute webinar on FHA Appraisal Requirements. Webinar will cover: The lenders and appraisers responsibilities as it relates to FHA guidelines The marketability and value of the property and information about “For Your Protection Get a Home Inspection” Minimum Property Requirements Minimum Property Standards Appraisal Protocol This webinar is designed for appraisers, underwriters, loan officers, processors, brokers, agents, any interested parties, and any individuals new to FHA. Registration is required. Please hold on to the e-mail you receive after you register, you will need it to access the webinar....

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

August 7, 2013

Appraiser Confidentiality: USPAP Absurdity

Appraiser Confidentiality: Loose Lips, Big Claims, USPAP Absurdity, and Subpoenas Allegedly “Loose Lips” Cause a Big Claim. A recent and relatively big appraiser liability claim involved a commercial appraiser’s alleged breach of confidentiality. The damages paid to the plaintiff were significant. According to the plaintiff’s complaint (my recounting of the facts here is simplified), a lender had engaged the appraiser to perform an appraisal for a construction loan to the developer of a shopping center. Some of the information received by the appraiser included lease commitments from prospective tenants. The anchor tenant was a well-known retailer. The appraiser completed the assignment, but...

AI / AMC / Appraisal / Appraisal Institute / Appraisal Management Companies / Appraisal News

August 1, 2013

Suggestions for Real Appraisal Reform

As a risk management firm which has been serving real estate appraisers for over 20 years, we are in a relatively unique position in terms of offering suggestions how to improve the current residential real estate appraisal process. To offer some perspective, during our history we have had close to 20,000 appraisers as members of our risk management family and we have been actively involved in the resolution of close to 2000 claims brought against appraisers, both inside and outside of the courtroom. Furthermore, our management team has been around long enough to witness not only the most recent collapse...

Appraisal / Appraisal News / Appraisers News / E&O / Errors & Omissions / Uniform Standards of Professional Appraisal Practice

July 23, 2013

My Main USPAP Issue – Letter to ASB

My Main USPAP Issue – Statement Letter to the ASB The purpose of USPAP is to promote and maintain a high level of public trust in establishing requirements for appraisals and “reliable” valuations. The problems is, however, that it is subjective. Assuming one can support the conclusion or opinion; beauty is in the eye of the beholder, or in this case, the appraiser. Likewise, evaluation and selection is in the eye of the appraiser – which is why two different and reasonable and competent appraisers can reach two different, but equally credible opinions, on the same property. And that is...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / ASB / Automated Valuation Models

July 22, 2013

Upcomming AMC Licensure

AMC Licensure in Virginia On July 1, 2014, every AMC wishing to continue operating in Virginia will be required to apply to the Virginia Real Estate Appraiser Board for a license to conform with recently passed AMC laws. Hopefully, the VREAB will prudently and completely vet these business PRIOR to the issuance of a license. It is my understanding the VREAB staff is leaning towards granting licensure upon application without any substantive vetting of the applying AMC’s. It is also my understanding that appraiser members of the VREAB are opposed to this administrative position and understand the importance of pre-licensing...

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

July 19, 2013

Independent Contractors vs. Employees Pros and Cons

Business owners must determine whether to hire appraisers as employees of the company or as independent contractors. Because many appraisers are self-employed or run small businesses with few staff, recruiting and staffing employees can present a unique set of challenges. Business owners must determine whether to hire appraisers as employees of the company or as independent contractors. According to a recent article in Valuation magazine, businesses are increasingly taking the independent contractor option whenever possible due to the significant savings and flexibility for the employer. However, there are pros and cons to both angles. Benefits for appraisal firm owners and...

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