VanEd - Real Estate School News

US House Financial Services Committee Hearing on Appraisals

The subcommittee on Housing, Community Development and Insurance is holding a hearing entitled “What’s Your Home Worth? A Review of the Appraisal Industry” on June 20, 2019 at 2:00 PM. The hearing is open to the public and can be lived streamed. To find out more about this hearing, go to the US House Financial Services Committee website.

The subcommittee live stream can be found here or below.

 

 

May 1st Updates to the Real Property Appraiser Qualification Criteria could aid Appraisers

The Appraiser Qualifications Board of The Appraisal Foundation establishes the minimum qualifications for real  property  appraisers  in  the  United  States.  These qualifications  can  be  found  in  the Real  Property Appraiser Qualification Criteria.

Over the course of a number of meetings and after reviewing comments, the board recently changed the Real Property Appraiser Qualification Criteria.  A summary of these changes, which are effective May 1, 2018, can be found Appraisal Foundation Website.

New Requirements for an Appraisal License as of May 1, 2018:

1. An Associate’s degree (or similar college credit hours) is NO LONGER required for the Licensed Residential level
2. A chart of six (6) options now clarifies the acceptable college credit requirements for the Certified Residential license level

Ed Note: The RPAQC Summary of Changes is linked above. Their infographic below can also be used to identify your path to the appraisal license level you are interested in obtaining.  If you have questions, please contact us.

Download AF-NewProfessionalsinAppraising_FINAL

 

 

2017 Appraisal Institute Annual Fall Conference - Oct. 13th

The annual Real Estate and Appraisal Symposium Will be held Friday, October 13th at the San Francisco Marriott Marquis.  This years event will feature over 25 panelists and presenters.

– Opening Keynote – Mary O'Hara-Deveraux, PhD CEO & Founder, GlobalFORESIGHT

THE FUTURE: Outlooks & Trends Forces that Impact How We Work & Live

– Closing General Session  – Bay Area Housing and Traffic Crisis: Impacts, Consequences of Inaction & Most Viable Solutions

Select From 12 Breakout Sessions

Special Purpose Properties Case Studies in Residential Litigation It's a Bird, It's a Plane - It's Drones in the Air! Deep Learning, the Appraiser and the Paperless Office Residential Hot Topics: Compliance and Marketplace Issues Commercial & Residential Green Market Update Right of Way: Front-End Issues in the Process Understanding Legal Parcels & Descriptions: So What Makes it Legal? Measuring Real Estate Damages I Am a Real Estate Appraiser . . . Appraisals for Assessment Appeals Commercial Market Update

BEST VALUE RATE expires 9/8 – ACT NOW & SAVE up to $90!

Register Online

View List of Presenters Earn 6 Hours of CEC (BREA / AI / SBE)

– Sponsors Include – • Liability Administrators & Insurance Services • BBG • Valbridge Property Advisors  • ParcelQuest  • Berliner, Kidder & Trish  • Bradford Technologies  • AppraisalToday

Questions? Contact www.norcal-ai.org / 925.932.7753 / [email protected]

Finance Friday: Appraisal Institute Improves Tool to Aid Valuation of ‘Green’ Home Features

The recent updates to the Green Addendum from the Appraisal Institute may help real estate professionals demonstrate the value of green features of high performance homes. We are including the press release from AI here. Full story details and a link to the original article are also included. 

- AI News Releases - News | Appraisal Institute | CHICAGO -

(May 16, 2017) – The nation’s largest professional association of real estate appraisers today released an updated research tool to assist appraisers and users of appraisal services in understanding market reactions to green and energy efficient homes.

In updating the AI Reports® Residential Green and Energy Efficient Addendum, the Appraisal Institute intends to position appraisers to analyze data more efficiently and to report the analysis in a format that is more readable and consistent with mortgage industry information standards. 

The Appraisal Institute originally issued its Residential Green and Energy Efficient Addendum in September 2011 as an optional addendum to commonly used appraisal forms for loans sold and guaranteed by government-sponsored enterprises and government agencies. The Addendum was most recently updated in March 2013.

“The objective of this Addendum is to standardize the communication of the high performance features of residential properties,” said Appraisal Institute President Jim Amorin, MAI, SRA, AI-GRS. “The Appraisal Institute encourages builders, contractors, homeowners and third-party verifiers to complete the Addendum and present it to appraisers, real estate agents and lenders.”

The Addendum has been reorganized and updated to ease readability and to address continued industry developments in the valuation of green and energy efficiency, including solar systems. It also helps appraisers meet appraisal standards requirements for identifying property characteristics that are relevant to that property type and value.

Also, the Addendum can now be delivered in a digital form using a dataset specification that is based on the Mortgage Industry Standards Maintenance Organization (commonly known as MISMO) Reference Model v3.5, which enables it to be delivered and read electronically by end-user systems, including those used by mortgage lenders analyzing collateral risk.

“The Addendum can be attached to the MLS listing to provide sufficient detail on sales and listings to assist buyers, appraisers and real estate agents in understanding the high-performance features of the property,” Amorin said. “It also can be shared with the lender at the time of the loan application to assist them in understanding the property type. The lender may engage an appraiser with sufficient knowledge of the property type to provide an appraisal to meet secondary mortgage market guidelines.” 

Other advancements in the latest version of the Addendum:   

·         The accompanying materials include a field-by-field reference guide featuring definitions to all 140 fields found in the Addendum.

o    Users of the Addendum will now have a full reference for each field. This will help improve the application, readability and understanding of the Addendum and reduce interpretation variances within the industry.

·         The reference guide and data specification sheet will help appraisal software information technology companies to write scripts to auto-populate information from data systems used by appraisers (multiple listing services) to appraisal software programs, which can then be interpreted by end users and mortgage lenders. 

·         Parties utilizing the Addendum, including those providing information to appraisers can now utilize relevant components of the form.

For its efforts in updating the Addendum, the Appraisal Institute was recognized May 15 at the Better Buildings Summit 2017, as part of the U.S. Department of Energy Home Energy Information Accelerator in Washington, D.C.

Learn more about the Appraisal Institute’s industry leadership in green valuation.

Download the Appraisal Institute’s seven-page Addendum. 

 Full story originally published by the Appraisal Institute online at http://www.appraisalinstitute.org/appraisal-institute-improves-tool-to-aid-valuation-of-green-home-features-/?CategoryId=19#

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Fraud Alert: Appraiser Identity Theft

The Office of Inspector General (OIG) at the U.S. Department of Housing and Urban Development (HUD) uncovered a series of cases of appraiser identity theft. The schemes varied but resulted from someone using the State certification number of a Federal Housing Administration (FHA) roster appraiser. The FHA roster appraiser was unaware of the misuse until it came to light, usually by accident.

Most of the schemes happened when an FHA roster appraiser provided his or her personal identification number (PIN) for the desktop appraisal software to a colleague or supervisor. Providing the PIN was often rationalized because

• It was needed to keep the process timely,
• A fast turnaround was requested by the lender, or
• It was a contingency for when the roster appraiser was away or unavailable.

While these actions may seem innocent enough, they raise severe risks for misuse because the appraiser can never be sure the PIN will only be used with his or her knowledge and for legitimate purposes. Over the last couple of years, OIG has received more than a dozen reports of identity theft by colleagues or supervisors. Following are some case examples of the various schemes.

Washington. An FHA roster appraiser reported that someone conducted appraisals using his name. An OIG investigation found that reverse mortgage loan appraisals were performed by the appraiser’s former boss using the appraiser’s software PIN. The identity falsification was aided by a mortgage lender. The appraisal report used the FHA roster appraiser’s name but listed the phone and appraisal company of the former boss. The offender was convicted of 55 counts of identity theft and mortgage fraud and sentenced to 5 years imprisonment. He was also ordered to pay $20,250 to the certified appraiser and homeowners that were defrauded. The conspiring lender was sentenced to 90 days in jail and 6 months community service for mortgage fraud.

Illinois. A licensed appraiser used the name and license of two other appraisers when he signed off on appraisals that were used in fraudulent real estate transactions. The two appraisers whose identities were used were unaware that their names and license numbers were associated with the appraisals. The victims’ appraisal numbers and signatures were accessed by the perpetrator, who worked with the victims. The subject pled guilty to one count of forgery and was sentenced to 3 years in prison.

California. An appraiser fraudulently used the identity, name, and professional credentials of a FHA roster appraiser 170 times to perpetrate an FHA residential appraising scheme. February 2017 He presented a false email and resume, including the FHA roster appraiser’s name and certification number, to an appraisal company and pretended to be the certified appraiser. When an FHA staff review appraiser noted inconsistencies, she alerted the FHA roster appraiser, who removed his name from the roster. The phony appraiser then wrote a letter to the appraisal firm, purportedly from HUD, explaining why the certified appraiser’s name wasn’t listed and that the firm could continue to let him do appraisals. When interviewed by OIG special agents, the appraiser confessed to the schemes. In court, the appraiser pled guilty and was sentenced to 5 year’s probation and community service.

Despite the penalties for these fraudsters, reputational damage done to the appraisers can be hard to repair. Protecting your good name requires caution on your part.

All appraisers should be aware that on page 5 of the Uniform Residential Appraisal Report, they are certifying under a Federal criminal statute that the information on the form (including the identity of the appraiser) is true and correct.

Do’s and Don’ts

• Do review a list of your appraised properties often to detect any that were not conducted by you, especially after you leave an appraisal firm.
• Do follow up on any indication that an appraisal that you did not perform was entered in your name.
• Do file a report of suspected fraud on OIG’s Web site (https://www.hudoig.gov/reportfraud) or call your Special Agent in Charge in the Office of Investigation (https://www.hudoig.gov/about/where-were-located).

• Do not give your system PIN to another person.
• Do not leave your PIN where it can be accessed by someone.
• Do not do business with a company that requires you to give it your PIN.
• Do not use the PIN of another appraiser, even if it is on his or her behalf.
• Do not sign an appraisal that you have not personally performed.

 Original Post can be found online at https://www.hudoig.gov/sites/default/files/Fraud%20Alert%20ID%20Theft%20Appaisers.pdf

Email phishing scams target Appraisers with threat of a complaint

 

How the Scam Works Cybercriminals are sending emails to appraisers indicating that a complaint has been filed against them.  The email continues describing an investigative process and indicates a, “requirement” of the licensee to reply in seven days or there will be regulatory consequences.   The email creates an anxiety so the reader opens the link with the attached complaint and procedures.  Once the link is clicked the cybercriminals have an open lane to your computer and that’s how cybercriminals get the malicious code on your computer.   How to protect yourself from email phishing scams The National Cyber Security Alliance says cybercriminals have become quite savvy in their attempts to lure people in and get you to click on a link or open an attachment.  Take a few minutes and learn to protect yourself and your license against email phishing attacks.   Learn more about how to protect yourself from phishing scams online at http://staysafeonline.org/stay-safe-online/keep-a-clean-machine/spam-and-phishing.

 

Third exposure draft of USPAP 2018-19 Released - Comments Due this Month

Comments due January 27 on third exposure draft of USPAP 2018-19 | Business Valuation Resources

The Appraisal Foundation has announced that the Appraisal Standards Board (ASB) has issued the third exposure draft of proposed changes for the 2018-19 edition of the Uniform Standards of Professional Appraisal Practice. Some of the issues under consideration deal with the definition of report and communication of assignment results. There’s also a proposed revision of the definition of appraisal review, as well as splitting the existing Standard 3 into two standards.

 

Written comments are requested by Jan. 27, 2017, and can be sent to [email protected].

 

Finance Friday: FHA makes Enhancements to Single Family Housing Policy Handbook 4000.1

The Federal Housing Administration (FHA) published the latest update to its Single Family Housing Policy Handbook 4000.1 (SF Handbook). The update contains enhancements that continue to make the SF Handbook a comprehensive and consistent source for FHA Single Family Housing policy.

Also concurrent with this update, the previously published sections covering Claims and Disposition for Title II forward mortgages became effective today. These were the last major sections needed for mortgagees and other stakeholders in FHA transactions to use the SF Handbook as a full, end-to-end resource for Title II forward mortgages. Condominium Project Approval policies, to be a subsection of the SF Handbook’s Origination through Post-Closing/Endorsement section for Title II forward mortgages, is still in progress.

Policy Updates
The September 30th SF Handbook update contains technical changes for consistency and clarity, and several policy updates. The SF
Handbook September 30th Transmittal, available in FHA’s Online Housing Policy Library, includes the following key updates:

 Origination and Underwriting: an increase from $5,000 to $10,000 for the maximum amount that buyers of HUD realestate
owned (REO) homes are required to place into escrow for repairs on HUD REO properties that do not meet FHA’s minimum property standards. This change may increase the number of borrowers willing and able to qualify for FHA financing when purchasing a HUD REO property needing repairs.

 Appraisal and Property Requirements:

— Additions related to residential Water Purification Systems, and the addition of a Notice of Water Purification System sample document, are not policy changes, as they are contained in FHA regulations. These additions do, however, enhance the
comprehensive nature of the SF Handbook and its consistency with regulations.

— The addition of language regarding the Appraisal Effective Date, which cannot be a date before the FHA Case Number assignment, adds specificity to the SF Handbook on this operational practice.

 Servicing: Changes throughout the Servicing and Loss Mitigation section revise policy to integrate into the SF Handbook policy changes announced in Mortgagee Letter 2016-14. These changes must be implemented, as announced in Mortgagee Letter 2016-14, by December 1st, 2016.

 Quality Control, Oversight, and Compliance for Mortgagees with Multifamily Authority: exceptions to the Quality Control, Oversight, and Compliance section clarify that certain sections do not apply to mortgagees with: Originate Multifamily authority; Service Multifamily authority; or Service/Originate Multifamily authority; nor to Multifamily operations when a mortgagee has both Single Family and Multifamily authority. This change addresses Multifamily mortgagee requests for clarity on this issue.

New and Updated Supplemental and Model Documents
Concurrent with the September 30th SF Handbook update, FHA made the following supplemental and model documents available on its Supplemental Documents and Model Documents web pages, respectively:

 Added Borrower Notice of Water Purification System supplemental document, which contains sample language that mortgagees may choose to use to comply with FHA’s individual residential water purification systems policies;

 Updated Single Family Default Monitoring System Reporting Codes and Termite Treatment Exception Areas supplemental documents; and

 Updated HUD Earnest Money Forfeiture and Return Policy model document.
In addition, the three SF Handbook waivers noted below expire as of September 30th, 2016. FHA has not extended these waivers, as the provisions they contain have been incorporated into the SF Handbook:

 Single Use of Signatures;

 MIP Factor for 203(k) Loans and Simple Refinance Transactions; and

 FHA Model Mortgage.

Previous versions of the updated supplemental and model documents, and the expired waivers referenced above, can be accessed for research purposes on FHA’s Single Family Housing Supplemental Documents Archive web page.

To see this notice online or find more information, visit http://portal.hud.gov/hudportal/documents/huddoc?id=SFHB_Online_9_30_16Update.pdf

Boo! Don't get scared off the VINE by the ZOMBIES in our favorite stories from October!

Happy Halloween Everybody!

This month our team spent time helping new affiliates, volunteering on two state exam reviews, performing with children in penguin suits, attending conferences and updating 3 programs (including more than 20 courses!).  Feels like there were a full 31 days in this month. We also had our first zombie sighting in months. So there's that.

And during all of that there was still news and information being presented. Here, in absolutely no particular order, are our favorite items.

 

ARELLO Names Bruce Wooley Investigator of the Year

The Texas Real Estate Commission (TREC) is pleased to announce former TREC Chief Investigator, Bruce Wooley has been named 2016 Investigator of the Year by the Association of Real Estate License Law Officials. Click here to read the full story.

 

Zombies overrun home of sales rep Chris DeLuca

REMOnline posted how there will be a gory zombie doctor’s office, a graveyard with ghosts and zombies, a human meat market, a living dead daycare, a torture chamber and a giant jumping spider all taking over the home of the Sutton Group Heritage sales rep.  The event is for a good cause so if you're in the Ontario area we suggest you go.  

As for us - Thank you for the heads up - we will NOT be attending. #Zombies

 

Real Estate Groups Concerned About APB 'Green' Guidance

The Real Estate Roundtable announced Sept. 9 that it led a real estate industry comment letter to the Appraisal Practices Board stating concerns about its first draft of the “voluntary” guideline Valuation of Green and High Performance Property: Commercial, Multifamily and Institutional Properties.

In its letter, the coalition noted several “significant” concerns about the draft.  You can read more online by clicking here.

 

New EcoBroker® Course Launched

From our perspective, one of the most exciting new Continuing Education courses to come along in a while is the new EcoBroker: Trends in Sustainability update course. This new course covers current issues including Solar leases and financial concerns regarding today's Sustainable homes. The course also discusses key risk reduction issues using what EcoBroker® fondly calls the Liability Reduction Paradigm.

Learn more about this new course by clicking here.

 

Vine. Donzo.

With Twitter announcing that Vine is going the way of the Model A Ford, we wanted to make sure first that all our vines would be saved. Then we saw that "The company insists that they will be working alongside creators to make sure that all questions are answered and that the discontinuation is done “the right way” (if such a thing exists). In the meantime, Vine will be sharing updates and information via their Twitter account."

                                                                                #DeadOnTheVine

We actually thought that was a pretty good hashtag.

 

Fun Facts about the World Series

In Game 4 of the world series Jason Kipnis of the Cleveland Indians became only the third player from a visiting team to hit a 3-run home run at Wrigley Field in Chicago, home of the Cubs. Can you guess the other two?

Jimmie Foxx and Babe Ruth.   Pretty good club to join Jason - congratulations.   

 

Tour the Haunted Ghost Town That Could Be All Yours (If You Dare)

Zillow Porchlight posted on how you could have an abandoned school, general store, and homes all to yourself ... except for the ghosts.  It seems that you'll have to share those. "Along with the sprawling acreage and historic buildings, Johnsonville’s buyers will also be inheriting some ghosts — or at least the stories that people have about them."

As for us, the stories are fine. Not sure about the ghosts, but hey, it's Halloween, right? 

 

Global Real Estate Summit

The Institute of Real Estate Management has already posted a video about next Octobers IREM Global Real Estate Summit. 

Collaborate - Innovate - Differentiate is the theme for the Summit which is planned for October 10th, 2017 in Chicago.

 

 

Registration opens Spring 2017 - click here for more information. (Ignore the blatant pitch to send the author to Chicago next Fall)

 

 

 

Think we missed a story that we should have included? Let us know. Email us stories at [email protected] and we'll make sure to consider them!

Instructors: Appraisal Institute seeks proposals for presentations for its 2017 International Conference

The Appraisal Institute is seeking proposals by October 28 for presentations for the joint AI-Appraisal Institute of Canada 2017 International Valuation Conference, June 8-11, in Ottawa, Ontario, Canada. Submit your proposal at: www.appraisalinstitute.org/presentations!

 

All topics submitted will be considered. To give you an idea of what some of our attendees are looking for, based on the most popular 2016 Annual Conference sessions, attendees were interested in the following topics:

Business Best Practices New Technology and Resources Expert Testimony Appraisal Review Trends for Appraisers and Lenders Green Buildings

Market Analysis Review Expectations and Regulatory Impact Residential Sessions International Valuation Property Rights

To see what sessions were offered at previous annual meetings, please click here.

Learn more and submit proposals at https://www.myappraisalinstitute.org/AnnualMeeting/Call_for_Presentations.aspx.