VanEd Newslog

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 ASBComments@appraisalfoundation.org.

 

Notes From the Field: Communicating with an Appraiser -The Mythical Creature of Real Estate

A couple of real estate professionals and a couple of of lenders stand in a huddle at a conference.

"In the old days" as the story begins, "we used to be able to talk to the appraiser and tell them what we knew about the property that made it different from the other comps. Today..."

As the voice trails off we know the rest of the story will fit into one of three categories:

1. with what the government..... (insert almost anything here) OR
2. all my appraisals are wrong; OR
3. it's like the appraisers themselves have vanished, almost into thin air

So Let's take a quick look at answers to each of these possible statements: 

While discussing the politics of the appraisal regulations is a great place to start, the rules which were required by Dodd-Frank, TILA, GSE Servicing guidelines and USPAP have all been around now since at least 2010. Not a lot has actually changed in the appraisal arena since then, either, so we should all have a handle on the fact that regulation is the necessary legislative outcome of any type of financial crisis.

In this case a LOT of legislation. But no worries - homes are still selling and in many markets prices are going up and sales are happening quicker. Some markets are downright HOT!  Others, still a slow burn. It seems that the government did not effectively shut down the housing market or the appraisal industry, so likely, that rules out Option #1 as the culprit to almost any story.

Item #2 is always an interesting take. The appraiser was working far from home, the didn't select the right comps, the used the wrong approach to determine their value conclusion... there are a hundred similar comments on blogs and in articles from all across the country. But are they valid?

It seems highly unlikely that in any given time period and any given marketplace that ALL of the appraisals will be "wrong". More likely is that this real estate professional's fee hinged on a transaction that did not close because the house was under contract for more than the appraisal concluded the property was worth. But could it have been wrong? YES! Appraisers make mistakes, come to conservative valuations, do not have enough recent comparables or perhaps misread another comp data sheet. Mistakes do happen in all areas of life - real estate is no exception.

So take the Lenders point of view: The appraisal is lower than the contract price. Either the buyer is willing to overpay given market conditions, perceived value or desire, or there is a serious concern over the contract price. The lender does not likely know the buyer personally, and knows that the underwriter does not care about perceived motivation, only property value, so they'll choose "Concern over contract price" every time. So the real estate professional or the buyer or the seller may need to try to change the valuation by correcting information. But how do we do that? First let's look at the third possible statement.

Item #3 - All the Appraisers have vanished. They are a Myth. You can't find them and have no idea who they are because they were hired by some Appraisal Management Company who has no public facing website. So they just are not reachable.

Well, while it is true that the number of appraisers has shrunk from a high of over 100,000 appraisers just a few years ago to just over 81,000 today, they do exist. And, as it turns out, they have phones. And email. Some are even on twitter. And guess what?

You can call them. And email them. And tweet at them. It is absolutely NOT illegal, wrong or a violation of rules and regulations.

Since Dodd-Frank outlines fines that could be imposed on real estate licensees and lenders for violating appraiser independence rules, most people in the industry have become fearful of even talking to the appraisers. That was not the intent of the law, and it is simply not true.

What you can't do is harass them, make negative comments about them online or try to influence them to come to a value conclusion that you desire. Lenders, servicers and real estate licensees do have to follow the rules regarding contact with the appraiser, but those rules allow you, the real estate professional, to share comps you think they might be able to use and to highlight information about a property that is being appraised as long as you do this prior to the appraisal assignment being completed. You can also contact the appraiser to correct errors in the report.

To a point. Here is the information as stated in Dodd-Frank:

The requirements of subsection (b) shall not be construed as prohibiting a mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, consumer, or any other person with an interest in a real estate transaction from asking an appraiser to undertake 1 or more of the following:

1. Consider additional, appropriate property information, including the consideration of additional comparable properties to make or support and appraisal.

2. Provide further detail, substantiation, or explanation for the appraiser’s value conclusion.

3. Correct errors in the appraisal report.

 

For a millennia (or so it seems) real estate agents sent sold sheets to appraisers to help guide them in what comps the real estate agent used to price the property being sold. And today, real estate agents should be sending over the comps they used to price the property being sold.

What you should NOT do is fairly simple;

After an appraisal assignment is completed the appraiser may not discuss the results with anyone other than the client who ordered the appraisal. This will typically be the lender (or whoever ordered the appraisal), so a real estate broker looking to correct misinformation in a report or who  wants to ask questions will probably need to contact the lender and let the lender bring those issues up with the appraiser. 

Is this practical? Typically not, but it's your transaction and your price point is being challenged. If you have supporting information, you should send it over. It doesn't hurt, and you won't be fined. And while sometimes the value conclusion may seem to come from a "mythological" source, assuredly the appraiser is real. And when they make a mistake they should be informed about it. 

And here's a Pro Tip: If you and an appraiser are using the same information and same or similar comparable properties, a difference in valuation may simply be due to variations in adjustments. If you think a parking space in a condo is worth $5,000 and the appraiser determines through investigation it is only worth $1,000 you are not likely to raise the appraisal valuation by $4,000. Instead you should adjust your own comparables or re-investigate that specific market adjustment item. Arguing a point like this simply will not help.

p.s. If you do decide to take to social media to comment on a specific appraiser or identify them in a blog post, you should also be prepared to be considered to have been harrassing the appraiser. Or charged with an ethics violation. Or a license law violation.  Almost ALL negative commentary about an appraiser individually, either online or off (so no dinner party discussions either!), will be an entry point for a violation to be charged. Don't do this. Ever.

2014-15 USPAP updates adopted, process & changes explained by Appraisal Institute (video)

2014-15 USPAP updates adopted, process & changes explained by Appraisal Institute (video)

Bevy of upcoming events in Real Estate and Appraisal shower April with opportunities to learn

April is one of the busiest months of the year for real estate and appraisal industry conferences, events and courses. Take a look at the list of events that all lead up to the NAR Mid-Year conference next month in Washington, D.C. Have an event that you think VanEd should look in to? Let us know!

Check out these upcoming events:

This month starts off with a bang - RETSO - Real Estate & Technology South kicks off a long month of conferences when it opens on April 4th - 5th in Atlanta, GA. This conference is for those who want to design a unique business model that allows them to transform their business in the coming year. Learn more by clicking here. Can't make it in time? Don't worry - we'll be posting and following along on the VanEd Newslog beginning on April 4th.

 

The Colorado Association of REALTORS® Spring Business Meetings will be held in Vail April 9th - 11th. You can learn more by clicking here (we suggest you skip the meetings and instead take advantage of the REThink: The Future of Real Estate event, CYPN bowling and the CYPN Ski Day, not to mention that the biggest end-of-season bash in the Rocky Mountains, Spring Back to Vail is a week of fun in the sun and takes place April 8-14, 2013. That is probably where we'll be.)

Register and learn more online by clicking here.

 

ARELLO Mid-year meetings: The Association of License Law Officials will hold their Mid-year meetings in Scottsdale, Arizona April 10th - 13th. VanEd will be there, so look for an update on the industry issues that regulators are concerned about. Click Here for information.

 

The Nebraska REALTORS® Association Annual Convention & Exhibition will be held April 15th - 17th in La Vista, Nebraska. Join fellow members for the largest and most comprehensive conference held in the state, and see presenters such as Nobu Hata and Melanie McLane. Learn more and register online by clicking here.

 

CREC Annual Update Course - 2013 - this live classroom course will be held April 17th at 1:00pm in Glenwood Springs, CO and is open for registration now. Limited seats are available, so students should register early. Steve Stazel is instructing. For a course outline and to register, click here. Or visit http://VanEd.com/Classroom for other options.

 

For Instructors: TRETA - The Texas Real Estate Teachers Association - is holding their annual conference April 18th - 20th in Bryan, Texas. Speakers scheduled to appear include Carmel Streater, Charles Jacobus and Dr. Jim Gaines, Sr. Economist from the Texas A&M Real Estate Center. This conference is also approved for 9 hours of TREC MCE Elective Credit. Learn more online by clicking here. 

 

REALTOR® Nationwide open house weekend: REALTORS® accross the country will be holding open houses on the weekend of April 20th - 21st during Nationwide Open House Weekend. Thousands will open their doors and use this time to get people into listings and to educate the public about the soon to expire tax credits. REALTORS® can find more information online by clicking here.

 

The Association of Apprisal Regulatory Officials (AARO) will hold their Spring conference in Austin, Texas from April 27th - 29th. Industry officials will hear about all the upcoming rule and policy changes and how they may effect the regulatory environment. Find out more online by clicking here.

 

All of this leads up to the NAR mid-year conference in May:

The REALTORS® Midyear Meetings & Trade Expo is where NAR members take an active role to advance the real estate industry, public policy, and the association. Join us in Washington, DC, for special issues forums, committee meetings, legislative activities, and the industry trade show. This years schedule runs from May 13th - 18th. Find more information or register online by clicking here.

 

Have questions or comments?  Know of an event we don't know about? Let us know! Send us an email at info@vaned.com.

The most successful people in Real Estate use VanEd.  See what they say by clicking here.



Appraisal Foundation releases pamphlet for lenders: A Lender's Guide to USPAP

A recent press release from the Appraisal Foundation highlighted new consumer and lender informational pamphlets. These can be used by real estate brokers to help consumers understand the appraisal process. Take a look and see if these would be of benefit to you in your practice. A copy of the Appraisal Foundation press release is below for the lender related pamphlet.

Washington, DC — The Appraisal Foundation, a national non-profit organization dedicated to the advancement of professional valuation and protecting the public trust, has released two new pamphlets benefitting consumers and lenders. 

Appraisers, Appraisals & You: A Lender’s Guide to USPAP was developed for lenders working in the loan underwriting process. This pamphlet provides insight to lenders in working with appraisers as well as an overview of the entire appraisal process.

 

Single copies of pamphlets are available from the Foundation by a downloadable PDF (free), a flip-book version (free) and in print edition (limited quantities available for bulk purchasing). For more details on ordering bulk copies, please visit the following links: 

To purchase Appraisers, Appraisals & You: A Lender’s Guide to USPAP:

https://netforum.avectra.com/eweb/shopping/shopping.aspx?site=taf&webcode=shopping&prd_key=5f82e97c-58d3-4eb0-a8b4-fd0bf9936dea

The Foundation wishes to acknowledge the excellent work of the Publications Committee Chair Steve Elliott and Publications Committee members responsible for developing these publications.

 

Appraisers, Appraisals & You: A Lender’s Guide to USPAP: Chairman Stephen Thode, Alyce DeJong, Lawrence Netterville and Dennis Black

The most successful people in Real Estate use VanEd.  See what they say by clicking here.

 

 

 

Upcoming conferences and training events

If you are still looking for good conferences or training to attend this summer these events top our list of 'things to do'. Don't forget to contact us to see where we will be and find out how to connect with us while you're there! 

Looking for some sort of Quasi-Governmental run webinar training on short sales? We know you are! The FHA’s National Servicing Center (NSC) is pleased to announce the Preforeclosure Program (PFS) Webinar Training for Real Estate Professionals. The training is being offered on a regional basis to offer more local and regional assistance, so check online to see when your regional training is being offered http://bit.ly/J4XjHb. 

Looking for some appraisal information in July? Then don't miss the public meeting of the ASB: Appraisal Standards Board on Friday, July 13th in Denver. Register online at http://bit.ly/JfCnwn  

The Aspen Board of REALTORS® is hosting two live VanEd continuing education classes on July - Ethics for REALTORS® and the CREC Annual Update Course are both scheduled for July 26th in Aspen. Visit http://VanEd.com/Aspen for details and to register for one or both of these live classes.

Agent reboot - July 31st in San Fransisco is the next agent reboot (from Inman News & held the day before Connect opens). Learn all about mobile, video, blogs and gadgets that can help boost your business and increase productivity. The program travels to Oklahoma City in September and Austin in October as well. http://www.agentreboot.com/

Inman Connect - San Francisco - Held August 1st - 3rd this year the connect conference will blow you away with new information and innovations that can immediately help feed the techie in you - http://www.realestateconnect.com/ (note: agent reboot will be held the day before)

Instructors can close out a great summer by gathering and the recently announced REEA 2012 Conference, "Phoenix Rising: The New REEA Experience" on the campus of Morehead State University August 10th - 13th. This event is sure to be better than expected with announcements on the DREI program and the new REEA structure happening at a rapid pace. Find out more online at http://www.REEA.org.  

The Texas REALTORS® Convention is the biggest, most sought after event of the year for real estate professionals all over Texas and you're invited. You can even order a commemorative shirt! Join thousands of Texas REALTORS® for education, training and one of the largest industry exhibit halls anywhere on September 9th! Click the logo for more information.

With so much going on in the real estate, mortgage and appraisal industries it is more important than ever to stay up to date on rules and technology. Have an event scheduled that we missed here? Let us know! email us at info@vaned.com and we will be happy to look at it!

First exposure draft of 2014-15 USPAP Changes posted online

The Appraisal Standards Board has published the first exposure draft of the suggested changes for the 2014-15 edition of the Uniform Standards of Professional Appraisal Practice (USPAP). The Appraisal Foundation has posted th draft online. The ASB is accepting comments on the exposure draft until July 6th, 2012. Comments may be sent to the ASB via Fax or Email at the following;

email: ASBComments@appraisalfoundation.org    fax: (202) 347-7727

This exposure draft includes:

    Proposed Retirement of STANDARDS 4 and 5 (including proposed edits to the Conduct section of the ETHICS RULE)
    Proposed Revisions to the DEFINITION of "Assignment Results"
    Proposed Revisions to the DEFINITION of "Report"
    Proposed Revisions to the RECORD KEEPING RULE
    Proposed Revisions to Scope of Work Acceptability section of the SCOPE OF WORK RULE
    Proposed Revisions to the DEFINITION of "Scope of Work" and the SCOPE OF WORK RULE
    Proposed DEFINITION of "Scope of Report" and SCOPE OF REPORT RULE
    Report Options (includes separate proposals for two report options, and for a single report option)
    Proposed Revisions to the COMPETENCY RULE
    Proposed Revisions to the PREAMBLE on when the standards apply

Link:  https://appraisalfoundation.sharefile.com/d/s06679aeff2d40dab
Issued on May 24, 2012
Written comments requested by July 6, 2012

Post Midyear & Summer events that will help boost your business

If you have the time this busy summer these events top our list of 'things to do'. Don't forget to contact us to see where we will be and find out how to connect with us while you're there!

After the successful NAR Midyear legislative meetings and expo (held May 15th - 19th) it's not too soon to start planning for any and/or all of the following events;

 

Looking for some sort of Quasi-Governmental run webinar training on short sales? We know you are! The FHA’s National Servicing Center (NSC) is pleased to announce the Preforeclosure Program (PFS) Webinar Training for Real Estate Professionals. The training is being offered on a regional basis to offer more local and regional assistance, so check online to see when your regional training is being offered http://bit.ly/J4XjHb. 

Agent reboot - June 6th in Portland, OR is the next agent reboot (from Inman News) Learn all about mobile, video, blogs and gadgets that can help boost your business and increase productivity. The program travels to Oklahoma City in September as well. http://www.agentreboot.com/

 

Mortgage Tech Summit: Denver - On June 7th & 8th Join mortgage and real estate professionals from around the state as they focus on lead generation, efficiency and marketing tools. Apps and utilities too. Don't miss out on what is certain to be the top mortgage marketing event of the year in Colorado. http://MortgageTechSummit.com for more information.

AFIRE - Awesome Females in Real Estate - Join 100 of the most talented and inspiring women leaders at the 6th Annual Awesome Females in Real Estate Conference in Scottsdale, Arizona June 20th - 22nd. Learn more and register at http://realestatecoach.com/afire/.

Looking for some appraisal information in July? Then don't miss the public meeting of the ASB: Appraisal Standards Board on Friday, July 13th in Denver. Register online at http://bit.ly/JfCnwn  

 

The Aspen Board of REALTORS® is hosting two VanEd continuing education classes on July - Ethics for REALTORS® and the CREC Annual Update Course are both scheduled for July 26th in Aspen. Visit http://VanEd.com/Aspen for details and to register for one or both of these live classes.

Inman Connect - San Francisco - Held August 1st - 3rd this year the connect conference will blow you away with new information and innovations that can immediately help feed the techie in you - http://www.realestateconnect.com/ (note: agent reboot will be held in San Francisco on July 31st)

Instructors can close out a great summer by gathering and the recently announced REEA 2012 Conference, "Phoenix Rising: The New REEA Experience" on the campus of Morehead State University August 10th - 13th. This event is sure to be better than expected with announcements on the DREI program and the new REEA structure happening at a rapid pace. Find out more online at http://www.REEA.org.  

With so much going on in the real estate, mortgage and appraisal industries it is more important than ever to stay up to date on rules and technology. Have an event scheduled that we missed here? Let us know! email us at info@vaned.com and we will be happy to look at it!

VanEd offers USPAP courses online - 7hr & 15hr available for lowest price

Need USPAP?  Make it easy on yourself—our 7-hour & 15-hour USPAP courses are online.  

Enroll now and receive the already discounted course--$119 for the 7-hour online course, $199 for the 15-hour course and we will INCLUDE a downloadable USPAP MANUAL!  The course can be done completely at your pace and a certificate will be available in your student account immediately upon completion.  

 Best course, best price!—www.vaned.com

 CLICK HERE to select your state and sign up for USPAP today! 

 Feel free to contact us with any questions at info@vaned.com. Find out why the most successful people in real estate choose VanEd.