Thursday, January 27, 2011

ACOW and Your Industry

We have a membership drive going for ACOW.

We need a volunteer or two to call individual appraisers and talk to them about ACOW and try to drum up some more membership, so we have someone representing us in Olympia.

If you would like to help in this effort, please let me know and I will get you the list and instructions.


Michael Imes, IFA

Support the Organization that Supports You

Good afternoon,

In December all Seattle Chapter members were sent by mail and e-mail a letter and assessment invoice for their payment of ACOW 2011 dues. To date 17% of Seattle Chapter members have contributed. We need 100% participation from you in order to keep ACOW a strong and active presence in Olympia.

“ACOW plays a vital role in Washington State appraisal politics,” says ACOW President Justin Slack, SRA, “ACOW has been very active in 2010 and will again be in 2011.” As we move into the new legislative session, we are reminded that ACOW provides an extremely important voice for real estate appraisers:

§ Vigilantly monitoring proposed legislation and regulations that may have an impact on appraisers

§ Supporting or opposing various bills or regulations that impact our profession in Olympia and nationally

§ Working to educate legislators and government agencies on appraisal-related issues

§ Educating and communicating with members of the appraisal profession or with any persons concerned with valuation of real or personal property in Washington about legislative and regulatory issues

§ Fostering and promoting the appraisal profession to the general public through education, research, and publications

If you have not yet made your contribution, you can do so online at or you can complete and return the attached printable form. If paying by check, please make it out to ACOW.

Thank you very much for your time and your support.

Seattle Chapter, Appraisal Institute

Three easy steps to reduce your liability

LIA Claim Alert: Three easy steps to reduce your liability:


NAIFA Class - RCW 18:310

Washington State’s New AMC Law – RCW 18:310

What Are Your Peers Doing?

Class Description

AMC: The participant will be informed of the history, writing, activity, that brought about the law. Now that the law is passed, the participant will be given the details of the law and what they should be aware of. A discussion and Q&A portion will also be included at the end with inclusion of the Dodd‐Frank Bill and its ramifications.

Peers: This is a seminar panel style moderated Q&A session involving different industry participants. The class will be an open format of Q&A regarding the challenges and requirements for appraisers in preparing reports and how the current market, industry, and regulatory issues affect reporting.

Instructor: AMC Class ‐ Stan Sidor, Kidder Matthews

When: Friday, February 18th, 2011
Where: Silverdale Beach Hotel - 3073 NW Bucklin Hill Rd, Silverdale


Full Day Class (2‐4 hour classes) Lunch Provided:
Designated Member: $80.00
Associate Member: $100.00
Non‐Members: $110.00

1/2 Day Class (1‐4 hour class)w/Lunch:
Designated Member: $45.00
Associate Member: $55.00
Non‐Members: $60.00

Send Registration to:
Michael Imes,
Mail: PO Box 1372 or Fax: 253.857.6817
Gig Harbor, Wa 98335 Email:
Make checks payable to: Olympic Peninsula Chapter, NAIFA

AI webinar on GSEs' residential form changes

Webinar is TOMORROW - register now!

On December 17, Fannie Mae and Freddie Mac announced a new loan initiative that will require that all appraisal reports on loans for sale to government-sponsored enterprises (GSEs) be delivered consistently with an appraisal dataset and through a data portal. Under the new loan initiative, the GSEs will require that all appraisers provide more complete and consistent data through appraisal report forms to assist in collateral risk management.

Attend this webinar and be prepared for the new requirements!

Participants of this webinar will:

  • Learn about the new Uniform Mortgage Data Program, which includes the Uniform Appraisal Dataset and the Uniform Collateral Data Portal
  • Understand how appraisal report forms will change and why
  • Find out what lenders and appraisal software vendors are doing to implement these changes
  • Learn what appraisal data standardization means
  • Hear from the experts how electronic data delivery will be implemented

CE CREDIT: Appraisal Institute members who attend will receive 2 hours of Appraisal Institute continuing education credit. Completion certificates will not be sent. This is not approved for state continuing education credit.


Robert Murphy, director of Collateral and Valuation Policy, Risk Policy and Reporting, Enterprise Risk Management, joined Fannie Mae in 2000 with an extensive background in the real estate appraisal field that began in 1978. Learn more

Dawn Molitor-Gennrich, SRA, is co-owner of Heyn, Molitor-Gennrich, LLC. She is an AQB certified USPAP instructor and experienced appraisal education developer with extensive speaking and teaching experience. Learn more

Elizabeth Green, director of, will be launching a new generation of innovative tools developed for the residential valuation community. Learn more

Timothy Dick is a collateral policy manager within Freddie Mac’s Credit & Counterparty Risk Management division. Learn more

Justin Slack, SRA, is a review appraiser for HomeStreet Bank, a regional bank based in Seattle, WA. HomeStreet will be implementing the Uniform Mortgage Data Program ahead of this year's anticipated start date. Learn more

Are you a member of the Appraisal Institute? If not, join today and start enjoying all the benefits membership can offer, including discounts on education. Questions? Call us at 888-7JOINAI.

Tuesday, January 25, 2011

Appraisal Complaint National Hotline

1/20/2011 Appraisal Complaint National Hotline

Click here to view the ASC Press Release regarding an appraisal complaint hotline as prescribed in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

12/14/2010 Voluntary Disciplinary Sanction Matrix

Click here to view a voluntary disciplinary sanction matrix. This is voluntary guidance intended to assist state appraiser regulatory agencies in enforcement cases.



Thursday, January 20, 2011

Freddie Mac Appraisal Review Reminders

Freddie Mac Appraisal Review Reminders

Shadow Inventory Jumps More Than 10 Percent

November 22, 2010, Santa Ana, Calif.

CoreLogic (NYSE: CLGX), a leading provider of consumer, financial and property information and business services, reported today that shadow inventory of residential property as of August 2010, reached 2.1 million units, or eight months worth of supply, up from 1.9 million, or a five-months' supply, from one year earlier. With visible inventory remaining flat at 4.2 million units, the change in shadow inventory increased the total supply of unsold inventory by 3 percent.

Shadow Inventory

CoreLogic estimates shadow inventory, sometimes called pending supply, by calculating the number of properties that are seriously delinquent (90 days or more), in foreclosure and real estate owned (REO) by lenders and that are not currently listed on multiple listing services (MLSs). Shadow inventory is typically not included in the official metrics of unsold inventory.

According to CoreLogic, the visible supply of unsold inventory was 4.2 million units in August 2010, the same as the previous year. The visible inventory measures the unsold inventory of new and existing homes that were on the market. The visible months' supply increased to 15 months in August, up from 11 months a year earlier due to the decline in sales during the last few months.

The total visible and shadow inventory was 6.3 million units in August, up from 6.1 million a year ago. The total months' supply of unsold homes was 23 months in August, up from 17 months a year ago. Although it can vary and it depends on the market and real estate cycle, typically a reading of six to seven months is considered normal so the current total months' supply is roughly three times the normal rate.


Winter 2010 HUD Newsletter

FHA has just released its newsletter for Winter 2010

You may find a link on the home page, or go directly to the newsletter at

Monday, January 17, 2011

A Warning Story for Appraisers

January 4, 2011 1:21 PM

(From Michael Imes)

From an appraiser we all know...

I was asked to inspect and provide a Certificate of Final Completion (Form 442) on a high rise complex in Bellevue. On the surface, no problem.


* The bank ordered the 442 via their wholly owned AMC. (warning)

* The AMC, based on instructions from the bank, was willing to pay a whopping $100. (warning)

* Prior to this, I've have had no connection with the buildings at all; No appraisals, no construction inspections - zip nada. (warning)

* So me providing a certificate that says the buildings are complete according to the original appraisal is a bit odd, but possible with a lot of additional information. (warning)

* Oh and there are two 42 story towers involved with this 442 and they
thought $100 was sufficient for "my time." (warning)

After numerous conversations with numerous people at the AMC and bank, we
settled on a much higher fee and a total inspection of all units. Still they grumbled.

The units in the buildings were a mixture of: metal studs only, some sheet rocked and some 100% finished. Numerous balconies did not have railings (remember 42 floors). I stated such on my inspection report.

Then it started:

* Phone calls and emails, from the AMC and the loan officer, demanding that I certify the building complete.

* We won't pay you until you complete the 442.

* "You didn't do your job correctly"

* "You will give us what we hired you for or will never hire you again" blah blah blah!

In one of my conversations, trying to explain reality to them, I said:

"Let me explain it this way - If I sign off and the building goes into foreclosure, I'd be taking full responsibility for my "Certificate of Completion." If this goes sideways I'm responsible for my statements and the difference between the completed value and the unfinished as-is value. I'm not going to lie about this."

And they told me: "That's not going to happen, this developer has more money than God and will never go into foreclosure, so don't worry, just sign off on the 442."

No! And that was the last 442 I've ever completed for this AMC and their lender.

Now, as Paul Harvey says, for the rest of the story:

I wonder which appraiser signed off on these buildings being "complete?"
His life is about to go sideways and become an economic wipeout.


In my opinion, they were looking for a sucker to take the fall and the responsibility for a multi-million dollar loss. Don't be that sucker, stand up for what's right. Sometimes saying "NO" is the easiest and best money you never made!

Do your job right and don't let a bad AMC or bank tell you how to do it. You likely know more about the business than they do.

Richard Hagar SRA

Maybe no one signed off on it. It wouldn't be the first time a lender falsified records or ignored regulations. There's money to be made, remember? -Michael Tabor

Michigan Association of REALTORS® Buys AMC

"The acquisition of Midwest AMG makes it a wholly owned "for profit" subsidiary of the MAR using only REALTOR® appraiser members. This means in addition to industry "best practices," those doing appraisals will be held to the higher standards dictated by REALTOR membership. It is through this melding of standards that Midwest AMG and the Michigan Association of REALTORS® intend to create the 'Gold Standard' for appraisal services.

This means in addition to industry “best practices,” those doing appraisals will be held to the higher standards dictated by REALTOR membership."


Dodd-Frank Repeal?

A bill has been introduced in the House of Representatives to repeal the Dodd-Frank Law. If enacted, it would:

~~reinstate the HVCC, which won’t really change anything since virtually every entity in the mortgage lending field has adopted its provisions which actually began with FIRREA in 1989 … but portions of FIRREA were never properly enforced until HVCC became the ‘hammer’

~~eliminate the ‘Customary and Reasonable’ requirement for appraiser fees, which unfortunately has been watered down by the FRB in its Interim Final Rules to the point that it gives little fee protection to appraisers

Representative Michelle Bachman has introduced the following legislation to repeal the Dodd-Frank Act:

112th CONGRESS, 1st Session H. R. 87

To repeal the Dodd-Frank Wall Street Reform and Consumer Protection Act.


January 5, 2011

Mrs. Bachmann (for herself, Mr. McClintock, Mr. Posey, Mr. Akin, and Mr. Issa) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Agriculture, Energy and Commerce, the Judiciary, the Budget, Oversight and Government Reform, Ways and Means, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned:


To repeal the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,


The Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203) is repealed and the provisions of law amended by such Act are revived or restored as if such Act had not been enacted.

Sunday, January 16, 2011

Proposed Revisions to Appraiser Qualification Criteria

Second Exposure Draft of Proposed Revisions to the Future Real Property Appraiser Qualification Criteria

Comment Deadline: February 18, 2011

Tougher requirements for new appraisers.

1. Proposed Revision to Require Education and Experience as Prerequisites for the Examination
2. Proposed Revision to College Degree Requirements and Removal of "In Lieu Of" Option for College-Level Education
3. Proposed Requirement for Background Checks
4. Proposed Revisions Pertaining to College Degrees in Real Estate
5. Proposed Revision to 7-Hour National USPAP Update Course
6. Proposed Removal of Segmented Approach to Criteria Implementation
7. Proposed Restriction on Continuing Education Course Offerings
8. Proposed Revisions to Distance Education Requirements
9. Proposed Revisions to Trainee Appraiser Qualifications
10. Proposed Supervisory Appraiser Requirements
11. Proposed Revisions to Guide Note 1 (GN-1)

I wonder if anyone is thinking about no new appraisers in the future...


AQB Proposed Revisions to Appraiser Qualification Criteria

The Appraiser Qualifications Board (AQB) has issued the following Exposure Draft:

Second Exposure Draft of Proposed Revisions to the Future Real Property Appraiser Qualification Criteria


Issued on January 14, 2011. Written comments requested by February 18, 2011.

Send Comments to

Tuesday, January 11, 2011

Mortgage Snags Ahead as Appraiser Ranks Dwindle

From American Banker | Wednesday, December 22, 2010

"The ranks of the appraisal profession are shrinking fast. For home lenders, that spells higher costs, longer turnaround times and poorer appraisal quality in future years."

"While there's less appraisal work to go around these days than there was a few years ago at the height of the housing market boom, lenders fear that when the market does rebound, there won't be enough qualified appraisers available to do the job for them."

Click here to read

Monday, January 10, 2011

Viewpoint: Home Appraisal's Communication Gap

Viewpoint: Home Appraisal's Communication Gap
By Jennifer E. Schnell, an appraiser

From American Banker, Dec. 30, 2010

"With more focus being placed on the quality of appraisals and rapidly changing federal compliance regulations, appraisal management companies are being forced not only to keep up with and comply with the latest regulations, but to adhere to the special instructions requested by individual lending institutions, leaving them with a lengthy to-do list per appraisal.

However, when lenders submit meticulous lists of things they expect from comparables, it sometimes becomes difficult for the appraiser to meet all these demands.

Demands that generally mirror Fannie Mae guidelines are easily met in some markets. In other markets those guidelines cannot be met. When a guideline cannot be met, it's the appraiser's responsibility to explain to the reader of the report the reasons for not meeting a specific guideline.
Too often appraisers claim they're surprised by special instructions after they have completed their analysis and filed their report. This should never happen!

While it is the appraiser's job to identify the intended use and the intended user and all the special instructions before they accept an assignment, the lender must be as specific in its instruction as it would like the report to be."

Click here to read the entire article

Sunday, January 9, 2011

Appraiser Law Blog Predictions 2011

From Dave Towne:

Peter Christensen, a representative of a major E&O insurance provider, has made 11 predictions concerning AMC’s, but which will potentially affect appraisers. You can find his blog article

He mentions some key concerns facing appraisers, and I have added my own perspective:

a- AMC’s may be sued by lenders if it can be shown that improper appraisals were provided on properties covered by required ‘repurchases’ as a result of being foreclosed. You can be certain that the AMC will come after the appraiser in those instances.

b- Some appraisers still in the business are changing E&O carriers, and not including ‘prior acts’ coverage for previous appraisals. Some appraisers are leaving the business and not carrying ‘tail’ insurance for prior appraisals. In both cases, appraisers can face severe financial hardship if the lender, AMC or state investigator decide to come after the appraiser – which probably will happen when the fir starts to fly. Quickly selling everything and moving to a country without diplomatic relations or an extradition treaty with the US might be a good option.

c- Some AMC’s have ‘hold harmless’ clauses in their appraiser vendor agreements which require the appraiser to defend the AMC’s conduct. If the AMC is sued by a lender, the AMC will probably try hard to shift some of the blame to appraisers based on the hold harmless clause. Be careful about what you sign if your desire is to work for more AMC’s.

(NOTE: in WA state’s AMC Registration law which will become effective on July 1, this wording is included as a prohibited action: (o) Requiring an appraiser to sign any indemnification agreement that would require the appraiser to defend and hold harmless the appraisal management company or any of its agents, employees, or independent contractors for any liability, damage, losses, or claims arising out of the services performed by the appraisal management company or its agents, employees, or independent contractors and not the services performed by the appraiser.)

d- Deficient appraisal reports where a ‘reasonable basis to believe a USPAP violation has occurred’ must be reported to state regulators. Appraisers are encouraged to pay closer attention to USPAP reporting requirements. While Lenders are ultimately responsible for appraisals they accept, if they use an AMC for appraisal ordering, you can bet the AMC will begin even more ‘anal exams’ of reports. Expect to see more QA/QC notices.

Take the few minutes to read Peter’s blog for more information.

Saturday, January 8, 2011

NAIFA Courses - Tacoma Feb 7-8 2011

Hi to all – If you have a distribution list for appraisers, can you please forward this flyer? We are very excited about these classes, and we are pleased to have been able to keep our prices low. WE ARE DONATING HALF OF OUR PROFITS TO ACOW, and we expect this to be very profitable with a huge turnout.

Our day one instructor for our Social Media Marketing for Appraisers is phenomenal – I have taken several of his classes at Green River Community College. This is a HOT topic. Mr. Kirk Davis will lead you through the maze that makes up the Social Media Marketing world. This curriculum was designed specific to our industry and is accredited for 7 CE credit hours through Green River Community College. It is a subject that is timely, relevant and fun. The seven hours of this class will leave you energized and inspired. You might even feel a tinge of optimism about the possibilities for the future of your appraisal business – now wouldn’t that be a bonus?

On day 2 we have our morning session led by our very own Gary G. Walker, IFA, who will lead us through 4 hours of CE in Spreadsheet Bootcamp. Gary is a well respected and very experienced Certified General appraiser and a NAIFA trained Appraisal Instructor who knows his stuff about Microsoft Excel. This class is geared towards the residential appraiser. I for one can’t wait for this class. This is a skill set I need help with and I look forward to being more competent in this area in 2011! The day 2 afternoon session (4 hour CE) is a panel discussion What Are Your Peers Doing? that is intended to bring practical information for improving your appraisal product. What should and should not be included in the appraisal report? Has the industry standard changed over the past 1-3 years? This promises to be a lively afternoon as panel members share their differing opinions.

Thanks all – here’s to starting out 2011 with positive forward momentum!

Linda McCabe