http://www.realestateappraisertips.info/ – Bankrate.com: Summary Of Real Estate Appraisal Rules Changes In Dodd-Frank Act 2010
I have provided a few snippet paragraphs from this two page article below. Read the full article here: Real Estate Appraisal Rules Changing
“According to Lucien Salvant, a spokesman for the National Association of Realtors, or NAR, in Washington, D.C., the law is intended to:
*Strengthen appraiser independence.
*Sunset a problematic industry agreement known as the Home Valuation Code of Conduct, or HVCC.
*Regulate appraisal management companies.”
“Buyers, sellers can inform appraisers
That said, the end of the HVCC should help to clear up widespread confusion over who can present information — including data about recent sales — to an appraiser.
“The intent of the HVCC was to put a firewall between the lender and appraiser, but it put up such a big wall that everybody was afraid to talk to appraisers,” Salvant says. “The (new law) does say that Realtors and sellers and buyers can talk to (appraisers).”"
“Appraisal management companies
The new law also regulates appraisal management companies, or AMCs. AMCs aren’t new, but they have gained more control over real estate appraisers and appraisals in the 15 months since the HVCC was implemented.
The financial reform law requires federal oversight of AMCs controlled by federally regulated financial institutions. It also requires state registration of all other AMCs, according to the Appraisal Institute.”
“Questions to ask (editor’s note: should be rephrased “Questions AMC’s should be asking those appraisers they intend on hiring for the appraisal order”)
If there is an upside to the confusion over appraisals, it’s that homebuyers, sellers and homeowners are now more aware of these issues, says Richard Koestner, a partner at Koestner, McGivern & Associates, an appraisal firm in Davenport, Iowa. He says they are more likely to ask questions about the appraiser’s experience and expertise and calls the development “encouraging.” He also offers a few examples of questions buyers and sellers might want to ask:
How long have you been an appraiser?
How many appraisals have you completed?
How often do you appraise homes in this area?
How familiar are you with the local market?
Where do you get the data that you use in your appraisal reports?”
Read the full article here: Real Estate Appraisal Rules Changing
If you enjoyed this article, you might also like...:
- Real Estate Appraiser Tips: New Home Appraisal Regulations Stricter than HVCC
- Appraisal Summit 2010 Video: Global Thought Leader Panel discusses Frank-Dodd Bill
- Appraisers: House Passes Dodd-Frank Wall Street Reform and Consumer Protection Act
- Real Estate Investors Daily: HVCC, AMCs and the Appraisal Industry; a view from the inside
- Dave Towne: Appraisers Dodd-Frank Bill Has A Bright Fee Light
Bankrate.com: Summary Of Real Estate Appraisal Rules Changes In Dodd-Frank Act 2010
by http://realestateappraisertips.info/ on August 27, 2010
http://www.realestateappraisertips.info/ – Bankrate.com: Summary Of Real Estate Appraisal Rules Changes In Dodd-Frank Act 2010
“According to Lucien Salvant, a spokesman for the National Association of Realtors, or NAR, in Washington, D.C., the law is intended to:
*Strengthen appraiser independence.
*Sunset a problematic industry agreement known as the Home Valuation Code of Conduct, or HVCC.
*Regulate appraisal management companies.”
“Buyers, sellers can inform appraisers
That said, the end of the HVCC should help to clear up widespread confusion over who can present information — including data about recent sales — to an appraiser.
“The intent of the HVCC was to put a firewall between the lender and appraiser, but it put up such a big wall that everybody was afraid to talk to appraisers,” Salvant says. “The (new law) does say that Realtors and sellers and buyers can talk to (appraisers).”"
“Appraisal management companies
The new law also regulates appraisal management companies, or AMCs. AMCs aren’t new, but they have gained more control over real estate appraisers and appraisals in the 15 months since the HVCC was implemented.
The financial reform law requires federal oversight of AMCs controlled by federally regulated financial institutions. It also requires state registration of all other AMCs, according to the Appraisal Institute.”
“Questions to ask (editor’s note: should be rephrased “Questions AMC’s should be asking those appraisers they intend on hiring for the appraisal order”)
If there is an upside to the confusion over appraisals, it’s that homebuyers, sellers and homeowners are now more aware of these issues, says Richard Koestner, a partner at Koestner, McGivern & Associates, an appraisal firm in Davenport, Iowa. He says they are more likely to ask questions about the appraiser’s experience and expertise and calls the development “encouraging.” He also offers a few examples of questions buyers and sellers might want to ask:
How long have you been an appraiser?
How many appraisals have you completed?
How often do you appraise homes in this area?
How familiar are you with the local market?
Where do you get the data that you use in your appraisal reports?”
Read the full article here: Real Estate Appraisal Rules Changing
If you enjoyed this article, you might also like...: