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TOPICS, COMMENTS OR CONCERNS OF THE APPRAISAL INDUSTRY

October 24th, 2018 2:05 AM

Appraisers Take on Washington DC:

Independent Fee appraisers representing 15 different states were well represented in Washington DC this past weekend. Appraisers from  Virginia,  North Carolina, South Carolina, West Virginia, Ohio, Louisiana, California, Illinois, South Dakota, Michigan, Utah ,Rhode Island,  Maryland, Delaware and Washington State joined together in DC  for several gatherings.  To sum it up simply… Positive Unity among all. 

On Friday, three members of VaCAP attended the Appraisal Standards Board Meeting. This meeting was live streamed, so hopefully you were able to watch live.  Lots of discussions on the proposed changes to the 2020-2021 USPAP. There are a lot of changes… 90 pages to be exact!  VaCAP encourages each of you to take the time to read through the exposure drafts (there are two). A third exposure draft will be coming out in December. 

The proposed changes are substantial in some areas and minor tweaks in other areas; however, the structure is changing. Be on top of this and submit your comments when the third exposure draft is released. Do not take this lightly, realty think it through!  

Two members of VaCAPs’ Executive Board attended the Association of Appraiser Regulatory Officials (AARO) Conference.  The event had many appraisers, amcs and regulators present. Appraisers have become more involved with AARO over the past few years and have been an integral part of the conferences.  This was a 4 day event and very informative.  

The Professional Organization Committee, chaired by Karen Emerle (ICAP) presented a program on education reciprocity among the 55 jurisdictions. Charlie Gress (OCAP) was a key presenter. Both Charlie and Karen are active members of the Network of State Appraisal Organizations (NSAO) Congratulations for a great presentation!


 
   Charlie Gress (OCAP) Presenting 




      
         Phil Gray (ACOW) comenting


To recap some other highlights: 


Hybrid Appraisals were a big topic – Many Regulators are concerned about their compliance with their state statutes and are starting discussions on them. The definition of an appraisal in each state seems to be a big issue in allowing a third party to complete the inspection.  Some AMC’s are also seeing these products as problematic for everyone. Fannie Mae presented their justification on why they are pushing hybrid appraisals.  A look of disbelief was on many Regulators faces.  It is if they were asking “how could Fannie Mae be so far off track.“

AMC National Registry:  Regulators and AMC’s both are attempting to determine best practices on compliance. At the moment, it appears an honor system will be used.  Some states have started auditing amc’s and are establishing their own best practices. This is going to be a work in progress for many years it seems.

PAREA-Educational Training Modules- TAF is working on virtual training modules to give appraisers more diversity on training.  This is going to be a great tool for new appraisers coming into the profession.

Standardization of CE Approval among States-
the idea is to reduce the burden on each state to approve each CE course. If the standards were consistent among the states, once a state approved a course, other states could approve as well without a re-examination of the materials. A huge benefit to Regulators, education providers and appraisers.

Best practices was a central theme of AARO. Regulators, appraisers and amcs working together for the good of everyone. Perhaps the most notable portion of the AARO Conference was learning how other states operate. Many we spoke with shared how they work closely with appraisal coalitions and other licensees to work together on the issues that arise.

VaCAP will continue to be part of AARO and other organizations in which we align. Thank you for your continued support. 


Please connect with VaCAP on LinkedIn  

We have some exciting things ahead and you definitely want to be a part of them!


Posted by Virginia Coalition of Appraiser Professionals on October 24th, 2018 2:05 AMLeave a Comment

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April 4th, 2018 7:43 PM

Originally posted on AppraisersBlogs 04/04/2018

Front and Center

Remember those dreaded book reports in grade school? Remember the oral presentations in front of the class? We did not think much of it then, but this was the beginning of public speaking.  Fast Forward to today:  Our appraisal reports are similar to those dreaded book reports except there is no oral presentation, no public speaking. No way to BS your way through it because you only read the Cliff Notes, not the actual book itself.

We have come a long way and today we write reports that speak to the reader.  No Cliff Notes, no text to highlight, but reports created by us based on our observations and research of the market. The standard forms do a simple basic function that are nowhere near adequate to tell our story, so appraisers expand to addendums, charts, graphs, photographs, etc. Appraisers tell the story of the property and the neighborhood. 

When USPAP was revised a few years ago requiring appraisers to disclose prior service, the software venders all came out with a USPAP Identification page. I, like many others, chose not to use this form and simply place my disclosure of prior service elsewhere in the report. After all, our reports were long enough.  Last week, The Appraisal Foundation issued a Q & A on this very topic. I actually took the time read this one as there were discussions on this very topic recently in some forums and there was definitely a division of opinions. 

Well, I must thank the Appraisal Foundation for clarifying what is expected and required. Not because I discovered I may not be in compliance by not having my disclosure as a signed certification, but I discovered a missed opportunity; a missed opportunity to tell another story.  A Story that has absolutely nothing to do with the value of the property; the story of my fee!

Many states require the appraiser to disclose the fee paid within the report.   I now use the USPAP Identification page for the prior service disclosure. I also utilize this page as my fee disclosure.  You see the center portion of this page clearly states:

 

“Comments on Appraisal and Report Identification”

Note any USPAP related issues requiring disclosure and any State mandated requirements

 

Well my State requires I disclose the fee I was paid for the completion of the appraisal.  Not only is my fee disclosed in this section, it is highlighted in BOLD type and is a larger font size.  This page is now the very first page in my report!

My fee is Front and Center on the very first page. The story of my fee has told to the consumer, not buried on page 26.  

 

TJ Elliot, Certified Residential Appraiser


Posted by Virginia Coalition of Appraiser Professionals on April 4th, 2018 7:43 PMLeave a Comment

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March 24th, 2018 9:32 PM
The Appraisal Subcommittee wants to hear from appraisers on Tristar Bank's request for appraisal waivers.  The comment period is open until April 9, 2018.  VaCAP has previously participated in a group letter with other organizations and expressed our concerns on this topic. We will once again be part of a group letter as well as send in our own comments. 

It is important for every appraiser to submit comments on how this is a dangerous slippery slope if the waiver is granted. Consumer protection is the issue and the door will be open for others to follow and this could really snowball, impacting non rural areas as well. See the  previously sent letter here

To post your comments, follow this link to the Federal Register for instructions. 

Posted by Virginia Coalition of Appraiser Professionals on March 24th, 2018 9:32 PMLeave a Comment

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The Appraisal Subcommittee Meeting scheduled for April 12 has been changed to April 23rd. Please make every effort to attend. Attendees must register prior to the meeting. See all the details here.




Posted by Virginia Coalition of Appraiser Professionals on March 24th, 2018 9:28 PMLeave a Comment

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