Real Estate Appraiser Tips » HVCC ISSUES

Home Appraisers: The Myth Of Geographical Competency! Why Did AMC Hire Appraiser 3 Hours Roundrip?

http://realestateappraisertips.info/ — Thu, 28 Oct 2010 17:24:45 +0000

http://www.realestateappraisertips.com/ – Home Appraisers: The Myth Of Geographical Competency! Why Did AMC Hire Appraiser 3 Hours Roundrip?

Today is October 28, 2010. I thought the lessons of HVCC and now Dodd-Frank were supposed to have made a difference! I thought “Geographical Competency” was supposed to be the new buzz word of the year 2010 and that AMC’s (Appraisal Management Companies) were supposed to be hiring appraisers closely located to subject properties, with the most experience!

GUESS AGAIN!

The map below shows the driving distance of 1.35 hours each way. Round trip, that’s over 3 hours.

I just received a phone call from a mortgage broker with some questions about an appraisal that was recently completed. It wasn’t my appraisal in question. The mortgage broker hired an AMC to procure that 3rd party appraisal. That AMC hired an appraiser located some 89 miles away or 1.35 hours one-way. From the information provided and the broker’s concern, the report failed the geographical competency issue and failed to use more recent 2010 comps located in the subject’s same development and instead used one older 2009 comp. That is an active market with ample sales and listings.

Yes, this happened in latter 2010! And, the fee was between $450 to $500 for the appraisal.

In October 2010, The Myth Of Geographical Competency lives on!

The Appraisal Show: Bill and Tinna Break Down The Interim Final Rules

http://realestateappraisertips.info/ — Thu, 21 Oct 2010 13:25:31 +0000

http://www.realestateappraisertips.info/ - The Appraisal Show: Bill and Tinna Break Down The Interim Final Rules!

Tinna and Bill break the 132 page rule down to a short video Click Below To Watch Video!

Home Appraisers Video: New HVCC Rules are Here…TBWS Says Conflict of Interest Provisions Installed!

http://realestateappraisertips.info/ — Tue, 19 Oct 2010 10:29:02 +0000

http://www.realestateappraisertips.info/ - Home Appraisers Video: New HVCC Rules are Here…TBWS Says Conflict of Interest Provisions Installed!

Click Above To Watch The Video…..But There’s More Below!

Frank Gregoire, with Appraiser Active Blog, also wrote about the Freddie Mac version here: Freddie Mac – Appraiser Independence Requirements Announced

Dave Towne, with Towne Appraisals and Appraiser Education Services, also wrote about this topic below:

“Appraisers……

Well, the long awaited “Interim Final Regulations” mandated by the Dodd-Frank law have been released. See below for the synopsis, and PDF attached.

But you wanna know a secret……….they aren’t really in effect yet……..they are ‘optional’ and not mandatory until April 2011, another 6 months from now. And more public comments will still be reviewed, so what you see today can potentially still be modified further.

The game playing continues….see the Interim Final Regulations to be published in the Federal Register. (see the PDF attached…132 pages I have not read yet)

In the mean time, both FannieMae and FreddieMac have issued their own Appraiser Independence Requirements (AIR) [which are the same]….see my msg from Fri, 10/15. Those are in effect NOW. However, the AIR makes NO MENTION OF C & R FEES.

I will state this again: appraisers can charge any fee they wish, any time they wish, to any client. It’s up to the client to accept or reject that fee, and engage the appraiser for the assignment if they agree to pay that fee.

Dave Towne, Towne Appraisals, Mount Vernon, WA, 360-708-1196 and Appraiser Education Service

Release Date: October 18, 2010

For immediate release

The Federal Reserve Board on Monday announced an interim final rule to ensure that real estate appraisers are free to use their independent professional judgment in assigning home values without influence or pressure from those with interests in the transactions. The rule also seeks to ensure that appraisers receive customary and reasonable payments for their services.

The interim final rule includes several provisions that protect the integrity of the appraisal process when a consumer’s home is securing the loan. The interim final rule:

Prohibits coercion and other similar actions designed to cause appraisers to base the appraised value of properties on factors other than their independent judgment;

Prohibits appraisers and appraisal management companies hired by lenders from having financial or other interests in the properties or the credit transactions;

Prohibits creditors from extending credit based on appraisals if they know beforehand of violations involving appraiser coercion or conflicts of interest, unless the creditors determine that the values of the properties are not materially misstated;

Requires that creditors or settlement service providers that have information about appraiser misconduct file reports with the appropriate state licensing authorities; and

Requires the payment of reasonable and customary compensation to appraisers who are not employees of the creditors or of the appraisal management companies hired by the creditors. [This appears to mean that ‘staff’ appraisers are not covered by these rules. Hmmm – very interesting!]

The interim final rule is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Compliance will be mandatory on April 1, 2011. Public comments are due 60 days after the interim final rule is published in the Federal Register, which is expected soon.”

Home Appraisers Video: The Appraisal Show For 10-18-2010 Covers New Appraiser Independence Requirements

http://realestateappraisertips.info/ — Mon, 18 Oct 2010 18:30:59 +0000

http://www.realestateappraisertips.info/ - Home Appraisers Video: The Appraisal Show For 10-18-2010 Covers New Appraiser Independence Requirements!

Tinna and Bill Discuss 2010-14 (Appraiser Independence Requirements –A.I.R), Picture of the Week, and FHA misses.

Some Interesting Comments From Those That Viewed This Video @ http://www.thinkbigworksmall.com/mypage/archive/8074/54126:

“5pence: (October 18, 2010 10:45am)
Isn’t it crazy that they decide appraiser independence without consulting appraisers?

JUSTFRANK101: (October 18, 2010 7:35am)
The A.I.R. was written by Appraisal Management Companies, if not written PAID FOR by Appraisal Management Companies. If we as Appraisers have no rights then we must reduce the percentage of the FEE the AMC takes from the job we are doing and demand a 30 day net – this is total bull people wake up!”

Appraisal Summit 2010 Video: Global Thought Leader Panel discusses Frank-Dodd Bill

http://realestateappraisertips.info/ — Sat, 09 Oct 2010 01:45:21 +0000

http://www.realestateappraisertips.info/ - Appraisal Summit 2010 Video: Global Thought Leader Panel discusses Frank-Dodd Bill. Representing Home Appraisers was Bryan Reynolds, Reynolds Appraisal Service.

Click On The Panel Image To Watch This Video!

From http://globaldms.com/expo.htm :

“Global DMS broadcasted this live panel event from the exhibit hall floor during the welcome reception at the Appraisal Summit and Expo on September 22. The panel aired live over the internet which allowed for interaction from both the people who attended the Appraisal Summit and Expo in Las Vegas, as well as people who watched the panel live on the internet.

This panel featured a lender, an Appraisal Management Company (AMC), and an appraiser, which offered a unique point of view from various industry participants as it relates to the Frank-Dodd Bill and appraisal independence.

Panel participants, seated from left to right below:

Tony Pistilli, US Bank, Minneapolis (lender)
Matthew McHale, Global DMS (moderator)
Brian Coester, Coester Appraisal Group (AMC)
Bryan Reynolds, Reynolds Appraisal Service (appraiser)

Our next panel will take place October 25th from 7:30 – 8:30 PM EST at the MBA’s 97th Annual Convention & Expo in Atlanta. More details will be posted shortly at http://live.globaldms.com“

Home Appraisers: UnitedTech EVP says the cost of appraisals are going to go up rapidly and dramatically!

http://realestateappraisertips.info/ — Fri, 01 Oct 2010 06:13:07 +0000

http://www.realestateappraisertips.info/ – Home Appraisers: UnitedTech EVP says the cost of appraisals are going to go up rapidly and dramatically!

Hello Home Appraisers! I wanted to let you know about a new interview released by HousingWire of UnitedTech Lender Services Executive Vice President, James “Kevin” Raney.

The link to the entire interview is at: UnitedTech EVP: New regulations will push higher appraisal costs onto borrowers. In this interview, Mr. Raney discusses the changes companies are having to make with the implementation of the Dodd-Frank Act. Specific to home appraisers is this section below:

“What are you seeing that is significant in the market right now?

There is a tremendous bubble of unresolved delinquent properties out there. I think there was a beginning of a stabilization of the residential markets. We’re also seeing the beginnings of some stabilization in the commercial markets. The fear that lingers out there is a very real dynamic, and I think the potential is very real for a double-dip, particularly in the residential arena.

Because of the current economic environment or the underlying strength int eh commercial sector, we’re seeing more loans workout on the commercial side that may help avoid the huge collapse that everyone is predicting on that side. But residentially, I think it’s a very tenuous time, and it’s a time to move cautiously.

The resulted impact on the ultimate cost of the borrowers, because the way that’s structured right now, there’s really no way to avoid that being passed onto the borrowers. The cost of appraisals are going to go up rapidly and dramatically. That’s going to further hinder originations as far as I’m concerned.

That legislative control environment is certainly a challenge as well.”

Any comments from home appraisers?

The Appraisal Show: Ennie Meenie lots of Fannie Freddie

http://realestateappraisertips.info/ — Wed, 29 Sep 2010 03:42:53 +0000

http://www.realestateappraisertips.info/ – The Appraisal Show: Ennie Meenie lots of Fannie Freddie!

Fannie’s new Appraiser Independence Requirements, GSE’s Uniform Appraisal Dataset, Picture of the Week. Tinna and Bill discuss Fannie plans for the sunsetting of HVCC – Bill McKnight

Dave Towne: Dodd-Frank Establishes New Law Enforcement

http://realestateappraisertips.info/ — Thu, 09 Sep 2010 09:28:43 +0000

http://www.realestateappraisertips.info/ - Dave Towne: Dodd-Frank Establishes New Law Enforcement

Appraisers (and others)……

The Dodd-Frank law (the Act) establishes a new layer of governmental oversight and enforcement for mortgage related transactions, and other financial situations.

An overview of the enforcement provisions are in this article from Lexology, written by Thomas Elkind:

http://www.lexology.com/library/detail.aspx?g=2f82b512-9e3f-48e9-89b3-9743ae46f6fb&utm_source=Lexology%20Daily%20Newsfeed&utm_medium=Email&utm_campaign=Lexology%20subscriber%20daily%20feed&utm_content=Lexology%20Daily%20Newsfeed%202010-09-08&utm_term=

Here’s a synopsis as it relates to appraisers, appraisals, mortgage lenders, AMC’s, etc. –

- Consumer Financial Protection Bureau (the “Bureau”) will become the primary enforcer of the provisions of the Act

- Broad investigatory powers; will hold hearings, and will litigate violations of the Act, other Federal consumer finance laws, and of its own regulations in the courts

- Investigate all matters relating to “fair lending”; joint investigations with HUD or with the Attorney General

- Bureau has broad powers to conduct hearings and proceedings against anyone, both to enforce compliance with the Act and, and to enforce any other Federal law regarding consumer finance

- Proceedings may be brought by the Bureau against any “covered person” or “service provider” as these terms are defined by the Act – basically anyone involved in consumer lending

- If certain records reviewed during investigations are found to be incomplete, the Bureau may issue a temporary order requiring the cessation of certain activities

- The Bureau can institute a civil action against anyone for any violation of any Federal consumer financial law in state or Federal courts, within three years from the date that the violation is discovered

- The Bureau itself cannot conduct criminal prosecutions. It must transmit evidence of criminal activity to the Attorney General

- Civil money penalties can be assessed in court and administrative proceedings

- The Act creates a Bureau that will have broad and far-reaching power to enforce its provisions

The Appraisal Show For September 7, 2010: Get the Government Out of our Business Decisions

http://realestateappraisertips.info/ — Wed, 08 Sep 2010 10:48:49 +0000

http://www.realestateappraisertips.info/ - The Appraisal Show For September 7, 2010: Get the Government Out of our Business Decisions!

This Week, Bill and Tinna discuss the Appraisal Institute’s suspension as a sponsor of the Appraisal Foundation, reaction to TAVMA’s letter requesting a delay in the implementation of the customary and reasonable fee provision of the Financial Reform Act, Picture of the Week and an out-take.

Don’t Forget To Check Out http://www.theappraisalshow.com/ and leave a comment! ALSO, BE SURE TO PASS THIS VIDEO AROUND TO OTHER APPRAISERS YOU KNOW AS WELL!

Appraiser Active Blog: TAVMA’s Plea To FED To Delay Customary Fees Shows REAL Desperation!

http://realestateappraisertips.info/ — Wed, 08 Sep 2010 10:11:38 +0000

http://www.realestateappraisertips.info/ - Appraiser Active Blog: TAVMA’s Plea To FED To Delay Customary Fees Shows REAL Desperation!

Now here’s an appraiser that cares about our profession and takes action to help improve the profession – Frank Gregoire, Appraiser Active Blog!

Appraisers, it’s highly recommended that you head over to Appraiser Active Blog and read Frank Gregoire’s commentary on TAVMA’s plea to the FED to delay the implementation of Customary and Reasonable Fees. I had no idea that TAVMA was in such a weak position, which is to our benefit.

Frank explains the letter and adds comments such as:

“It was inevitable, but the plea from TAVMA’s Executive Director, Jeff Schurman to Federal Reserve Board Chairman Ben S. Bemanke is remarkably lame and pitiful.”

“TAVMA’s plea to Bernake becomes REALLY desperate with their offering of this reason for delay:…”

“TAVMA, get off your knees and get with the program.”

“My fellow appraisers, it’s time to fire up the letter writing machine and let Ben Bernake know what the real story is.”

Read Frank’s entire article: TAVMA to FED: Please Delay Rule on “Customary and Reasonable Fee – Updated. Be sure to leave a comment on Frank’s Blog and please share Frank’s article with other appraisers you know.

About Frank Gregoire (Click Below To Be Able To Click On Frank’s Links):