Thursday, August 25, 2011

Openings on the Real Estate Appraiser Commission

At this time there are two vacancies on the Real Estate Appraiser Commission.

If you are interested in applying for one of these positions please provide a letter of interest that outlines your background and experience in the appraising profession including:

The number of years you have conducted real property appraisals.

The names of any professional organizations to which you belong.

The name and type of any additional professional licenses you currently possess.

A brief description of what you could contribute to the Commission as a member.

Please include a copy of your current resume; mail or email your application documents to:

Ralph C. Birkedahl, Program Manager
Real Estate Appraiser Program
PO Box 9021
Olympia, WA 98507-9021


Wednesday, August 24, 2011

UAD Deadlines

1. September 1, 2011 (appraisal effective date): Appraisals must comply with the UAD data standardization requirements

2. December 1, 2011 (loan application date): Lenders must deliver full UAD-compliant electronic appraisal report data (if appraisal required) and expanded loan delivery data

3. March 19, 2012 (loan delivery date): Lenders must deliver full UAD-compliant electronic appraisal report data (if appraisal required), and loan delivery data must be provided in industry-standard ULDD format (unless manually entered in Loan Delivery)

For more info:

Tuesday, August 23, 2011

UAD Updates

Appendix D (as of Aug. 11):

FAQ’s (as of June 2011):

The Appraisal Foundation (TAF) released a free video recently previewing the 2012-13 changes to the Uniform Standards of Professional Appraisal Practice (USPAP). The 23 minute video includes:

- revisions to the definitions of "Client", "Extraordinary Assumptions",Hypothetical Condition", and a new definition of "Exposure Time"

- Creation of a new RECORD KEEPING RULE and related edits to the Conduct Section of the ETHICS RULE

- Revisions to Advisory Opinion 21

- Revisions to STANDARDS 7 & 8

Tuesday, August 16, 2011

NAR Encourages Bar of AMC Indemnification Clauses

In a letter to the heads of the Department of Housing and Urban Development, Federal Financial Institutions Examination Council, Veteran's Administration and the Federal Housing Finance Agency, NAR President, Ron Phipps, encourages the bar of indemnification clauses used by Appraisal Management Companies (AMCs).

An excerpt:

"Appraisers provide an independent and impartial analysis of the market, and acredible opinion of the value of real property. This analysis is a critical component of the mortgage transaction and, in recent months, has become thesubject of unnecessary pressure. The mounting use of indemnification clauses by AMCs may be interfering with the appraiser’s independence and objectivity. In many cases, appraisers are asked to sign contracts that include language to indemnify and hold harmless the AMC against any suit, threat, or claim on any work product or service provided as part of the contract agreement. In some instances, the appraiser is even required to indemnify the lender and the AMC for amounts equal to their costs in repurchasing a mortgage loan, regardless of any proof of culpability on the part of the appraiser."


Monday, August 15, 2011

Appraising in a fallen housing market

Letter to the Editor, Seattle Times, August 10, 2011

Discrepancy in Article

In response to “The age of appraisal aggravation” [Real Estate, July 31], as a professional appraiser, I wanted to point out a discrepancy in the article.

While many of the people interviewed for the article stated that appraisers have been responsible for providing valuations that do not support sale prices, appraisals completed for mortgage transactions are not technically provided to confirm or support a sales price; they are used to assist lenders in making underwriting decisions.

Credible and realistic value opinions help to stabilize real-estate loans and investments, which promotes socially desirable real-estate development. Appraisers are particularly valuable because they are an objective and unbiased source of real-estate information. Unlike some other real-estate professionals, the appraiser performs a professional service for a fee rather than for a commission contingent on the value conclusion, the approval of a loan or the eventual sale of the property.

One buyer interviewed even stated that the appraisal “protected me from buying a home whose price was grossly overvalued.” It was a shame that this quote was the last line of the article, because while the sale didn’t transpire at this price, the lender (and buyer) learned the market value of the property.

— Justin Slack, president, Appraisers’ Coalition of Washington, Seattle


Sunday, August 7, 2011

America's 10 Sickest Housing Markets

From Wall Street 24/7 Complete article here: SOURCE

These are America's ten sickest housing markets.

1. Tucson, AZ
Homeowner vacancy rates: 6.8% (1st)
Rental vacancy rates: 15.9% (6th)
Total housing units: 440,909
Unemployment: 7.8%

2. Indianapolis, IN
Homeowner vacancy rates: 5.2% (5th)
Rental vacancy rates: 13.5% (10th)
Total housing units: 757,441
Unemployment: 7.8%

3. Memphis, TN
Homeowner vacancy rates: 4% (9th)
Rental vacancy rates: 13.5% (11th)
Total housing units: 550,896
Unemployment: 10.1%

4. Atlanta, GA
Homeowner vacancy rates: 5.4% (4th)
Rental vacancy rates: 11.8% (17th)
Total housing units: 2,165,495
Unemployment: 9.7%

5. Baton Rouge, LA
Homeowner vacancy rates: 3.9% (11th)
Rental vacancy rates: 13% (12th)
Total housing units: 329,729
Unemployment: 8.4%

6. Dayton, OH
Homeowner vacancy rates: 4.7% (7th)
Rental vacancy rates: 10.7% (23rd)
Total housing units: 385,160
Unemployment: 9.3%

7. Detroit, MI (Tied for 8th)
Homeowner vacancy rates: 2.4% (32nd)
Rental vacancy rates: 17.2% (3rd)
Total housing units: 1,886,537
Unemployment: 11.6%

8. Kansas City, MO (Tied for 8th)
Homeowner vacancy rates: 3.7% (13th)
Rental vacancy rates: 11% (22nd)
Total housing units: 883,099
Unemployment: 8.4%

9. St. Louis, MO
Homeowner vacancy rates: 3.3% (19th)
Rental vacancy rates: 11.4% (18th)
Total housing units: 1,236,222
Unemployment: 8.6%

10. Oklahoma City, OK
Homeowner vacancy rates: 5.2% (6th)
Rental vacancy rates: 9.6% (34th)
Total housing units: 539,077
Unemployment: 4.9%

Monday, August 1, 2011

Consumers and Appraisers – Republicans Filibuster

The senate is in charge and are holding up any nominee to head the Consumer Financial Protection Bureau.

From Mike Konzal:

"...[The three] major strengths [of the the Dodd-Frank Act ] a director, funding and accountability with a focus on consumer protection — are exactly what the Republicans want to dismantle. No doubt they are trying to stall and annoy the implementation of Dodd-Frank and prevent the CFPB from doing all its work — of course they are — but if there were three critical points where they could significantly weaken what the CFPB can do, these would be those three.

They are essentially violating their oath of office by promising to keep anyone from running the agency unless some changes are made."

So what does this mean to appraisers?

Nothing new and nothing being done about the ‘Customary and Reasonable Fee” provision enacted by Dodd-Frank.

As usual we are in another waiting game with our hands tied.

Again, I urge you to get involved. Stay up to date with the news and join your local appraiser coalitions! Contact your state licensing agency, congress and other regulators. Only together can we win this battle against the appraisal management companies that are destroying our industry.

Bryan Knowlton
California Real Estate Appraiser

The entire blog post is here: Source