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January 23, 2012

Sara W. Stephens, MAI, President, Suffering From Agnosia

Sara W. Stephens, MAI, President
of Appraisal Institute Sara W. Stephens, MAI, President, Suffering From Agnosia

 

Agnosia

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Agnosia
Classification and external resources
ICD-10R48.1
ICD-9784.69
MeSHD000377

Agnosia (a-gnosis, or loss of knowledge) is a loss of ability to recognize objects, persons, sounds, shapes, or smells while the specific sense is not defective nor is there any significant memory loss.[1] It is usually associated with brain injury or neurological illness, particularly after damage to the occipitotemporal border, which is part of the ventral stream.[2]

Inability to tell the difference between a Market Transaction and a Non-Arms Length Transaction.

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January 20, 2012

Don’t Shoot the Messenger, Shoot the AI, MAI, SRA, Appraisal Institute Member

Don’t Shoot the Messenger(-Shoot the AI, MAI, SRA, Appraisal Institute Member, OR IT'S MANAGEMENT.)    

Appraisers Not at Fault for ‘Low’ Home Values

Many in the real estate industry have tried to blame the market’s distressed condition on appraisers, saying that appraisers are at fault for producing opinions of value that don’t match a home’s listing or contract price, delaying a recovery in the housing market. In fact, appraisers are undertaking the same thorough research and thoughtful analysis that they always have in order to continue producing reliable, credible opinions of value.(is this a JOKE?) 

Appraisals aren’t intended to confirm a home’s sales price.

Appraisals completed for mortgage transactions are used to assist lenders in making lending decisions. Buyers and sellers often have emotional value attached to a home or are unaware of the market. They shouldn’t assume an appraisal is somehow "wrong" if it doesn’t match the listing or contract price. There’s no reason to assume the contract price is the "correct" price simply because it’s higher than the appraisal.

Appraisers don’t set the real estate market; they reflect what’s happening in the market (WHILE THIS MAY BE TRUE IT IS IMPERATIVE THAT THEY KNOW THE DIFFERENCE BETWEEN MARKET VALUE AND A DISTRESSED/SALVAGE VALUE. )

Think of the appraiser as a mirror, reflecting the market – and the market is depressed as home prices have fallen far below values of a few years ago. Reliable, credible opinions of value help stabilize real estate loans and investments, promoting socially desirable real estate development.

Appraisers work not for buyers or sellers, but for lenders. (THE APPRAISER WORKS FOR THE LENDER!  NOT IN MY PRACTICE, IN MY PRACTICE WE ARE AN INDEPENDENT PARTY THAT HAS ONLY ONEOR TWO BOSSES, MARKET VALUE AND USPAP.  THE APPRAISAL INSTITUTE HAS ALWAYS WORKED FOR THE BANKS, WHEN THEY WANT VALUES TO GO UP THEY COMPLY, AND NOW WHEN THE BANKS DO NOT WANT TO MAKE REAL ESTATE LOANS, THE APPRAISAL INSTITUTE FRADGUENTLY HAS KEEP VALUES VERY LOW BY NOT USING MARKET TRANSACTIONS AS COMPARABLE.  IF YOU THINK I AM BLOWING SMOKE ASK HER HOW MANY AI, MAI, APPRAISAL INSTITUTE MEMBERS HAVE DEGREES IN FINANCE, RATHER THAN REAL ESTATE.) 

The appraiser’s client for appraisals completed for mortgage transactions typically is the lender – not the buyer or seller. Lenders order appraisals to get a stronger understanding of risk relating to the underlying collateral offered in a mortgage. Neither the lender nor the consumer benefits by entering into a mortgage that is more than the value of the property.

Appraisers are independent, third-party experts (AN EXPERT IS ONE WHO HAS BEEN SO DESIGNATED BY A TRIER OF FACT IN A COURT OF LAW, NOT THE APPRAISAL INSTITUTE) with no motive to be biased. (IT IS NOT A MATTER OF BIAS BUT A MATTER OF IGNORANCE AND COMPLISITY.) 

Appraisers are particularly valuable because they are an objective and unbiased source of real estate information. Unlike some other real estate professionals, appraisers perform a professional service for a flat fee – rather than for a commission contingent on the value conclusion, the approval of a loan or the eventual sale of the property.

Appraisals sometimes are assigned to the least qualified, least competent appraisers. (AI, MAI, APPRAISAL INSTITUTE MEMBERS. ) 

Federal regulations and policies require a "firewall" between appraisers and lenders. To perform this "middleman" function, lenders often turn to appraisal management companies. AMCs’ business models are based on keeping as much of the appraisal fee as possible and paying as little as possible to the appraiser performing the appraisal. This can lead to the least qualified, least competent appraisers – including those from other cities or even other states without sufficient knowledge of the local market – being hired to perform complex appraisals.

(DO YOU REALLY WANT TO USE ONE OF THESE FOLKS (appraisal institute) THAT DOES NOT EVEN KNOW THE DEFINITION OF MARKET VALUE) Especially in a distressed market, competent and qualified appraisers – such as designated members of the Appraisal Institute – should be hired for difficult assignments.

Designated members of the Appraisal Institute have achieved levels of education, experience, standards, ethics and peer review above those of licensed or state certified appraisers. Those qualifications are particularly valuable when facing challenging valuation assignments … such as those found today.

(HOW DO YOU ADJUST FOR DISTRESSED SALES WHEN ESTIMATING MARKET VALUE?  ASK HER, THE CURRENT PRESIDENT OF THE APPARISAL INDTITUTE HOW IT IS DONE.  YOU ARE NEITHER COMPETENT OR QUALIFIED IF YOU USE DISTRESSED SALES AS COMPARABLES, THIS HAS BEEN A HARD AND FAST RULE SINCE I GOT IN THE BUSINESS, IN THE 70'S.)  Appraisers know how to use distressed sales as comparables.(THEY ALSO NKOW HOW TO KILL YOUR DEAL, FIGHT BACK, SUE, HIRE SOMEONE WHO KNOWS THE DEFINATION OF MARKET VALUE!) 

Qualified, competent appraisers are capable of using their experience and education to determine when – and how – to use distressed sales (such as foreclosures) as comparable sales. These appraisers know what adjustments to make, if any, when using distressed sales as comparables. In some markets, distressed sales are so prevalent that it would be improper not to use them as comparables.

 

LETS GET REAL, BANKS DO NOT WANT TO MAKE LOANS WITH THESE LOW RATES AND THEY HAVE A HIRED GUN!  THE APPRAISAL INSTITUTE AND THE APPRAISAL FOUNDATION TO DO THEIR DIRTY WORK.  FOR MORE CONSULT THE HARRIS COMPANY, REA/C http://www.harriscompanyrec.com

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January 19, 2012

Comparable Factors

Comparable Factors

Five factors are usually considered when determining comparables:

  • Conditions of Sale -- Did the comparable recently transact under conditions (e.g. -- arms length, distress sale, estate settlement) which are consistent with the standard of value under which the appraisal is being performed?
  • Financing Conditions -- Was the comparable transaction influenced by non-market or other favorable (or even unfavorable) financing terms? For example, if the comparable sold with a below-market interest rate provided by the seller, and if the standard of value (e.g. -- market value) assumes no such abnormal financing, then the appraiser may need to adjust the comparable price by an amount equal to the estimated impact of the favorable financing.
  • Market Conditions -- This is often referred to as the time adjustment and accounts for changing prices over time.
  • Locational Comparability -- Are the comparable and the subject property influenced by the same locational characteristics? For example, even two houses in the same neighborhood may have different views which cause one to be more valuable than the other.
  • Physical Comparability -- This includes such factors as size, condition, quality, and age.
  • http://en.wikipedia.org/wiki/Comparables
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December 31, 2011

Body of Knowledge Issues. AI/MAI/Appraisal Institute/Foundation, 19th Century Thinking

Body of Knowledge Issues. AI/MAI/Appraisal Institute/Foundation, 19th Century Thinking

By Don Epley, MAI Director

Center for Real Estate Studies University of South Alabama

Abstract

"The two current bodies-of-knowledge used by appraiser candidates to qualify for a designation and to practice the profession contain topics in need of discussion and revision to estimate property value accurately. This paper identifies the most pressing topics and makes recommendations to improve the appraiser’s understanding and practice of the profession."

The entire article is available in PDF format: Body of Knowledge Issues.

http://www.appraiserresearch.org/fileadmin/user_upload/body-of-knowledge-issues/Abstract_20111010143708.pdf

 

You will have to read this nonsense for yourself.  For some reason I could not cut and paste which would make it easier for me to address each of my concerns, individually and crongrically.  Basically it is the most ridiculous paper I have read in the past 30, no 40 years.  It starts out with the rationalization that the mai, appraisal institute members did not use statical analysis because the data was not available.  I have been in the industry since the 70's and know full well that this data was available.  They then, as they do know, lack the expertise to use statistical inference effectively.  They have always maintained that appraisal was an "ART," this postulate makes it impossible to attempt a scientific approach to real estate valuations.  In fact it would be more appropriate to use statistics when valuing Goya vs. Rembrandt.

 

He blasts the National Association of Realtors, the Federal House Finance Agency, and the Chase-Shilling indices, but cannot produce a better one available from his potentiates, the appraisal institute/foundation.   

 

He talks about real estate statistics as if it were the production of Ball Barings, where you produce a million items, and accept or reject, the product line with a sample of ten thousand.  The first year statistics student knows that stastical analysis does not produce reliable results with small population.  Ah!. . .   READ IT THEN WE CAN DISCUSS IT FURTHER.

 

Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO Consultant

CTAC LEED Certification

The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*

1910 East Mariposa Avenue, Suite 115
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 Cell

WebSite: http://www.harriscompanyrec.com

Resume: http://www.harriscompanyrec.com/CURRICULUMVITAENAME2011a.pdf

Commercial Appraiser Blog: http://harriscompanyrec.com/blog/

We Make a Simple Pledge to

Communicate, in a timely fashion, each appraisal, analysis, and opinion without bias or partiality

Abstain from behavior that is deleterious to our clients, the appraisal profession, and the public

Hold paramount the confidential nature of the appraiser/consultant - client relationship

and

Comply with the requirements of the Uniform Standards of Professional Appraisal Practice and the
Code of Professional Ethics of the National Society of Real Estate Appraisers

IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership http://www.orea.ca.gov/html/fed_regs.shtml#Statement7 Membership in an appraisal organization: A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization, including the appraisal institute.

CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal

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December 24, 2011

Happy New Year, AI MAI, Appraisal Institute

Happr New Year, AI MAI, Appraisal Institute

http://harriscompanyrec.com/blog/appraisal_institute/

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December 21, 2011

"Father Forgive Them (John S. Brenan) For They Know Not What They DO!"

"Father Forgive Them (John S. Brenan) For They Know Not What They DO!"

 

The following article written by the National Association of Home Builders (NAHB) is spot-on.  It was followed up by communicate from John S. Brenan of the Appraisal Foundation/Institute (forgive me but most times it is hard to tell them apart) which for the most part is rambling and incoherent.  Why is it so hard for these imbeciles to understand that in order to measure "MARKET VALUE" YOU NEED "MARKET SALES!!!!!"  I have requested a copy or John S. Brenan's resume so that we can get to the bottom of this issue once and for all.   http://www.icapweb.com/upload/121311%20NAHB%20Response.pdf  He obviously does not understand Real Estate or Real Estate Markets.

 

Home > Newsroom > Flawed Appraisals Killing Home Sales, Hampering Housing Recovery

Flawed Appraisals Killing

Home Sales, Hampering

Housing Recovery

Normal View

December 8, 2011 - One out of three builders are reporting losing signed sales contracts during the

preceding six months because appraisals on their homes are less than the contract sales price, according to

a recent nationwide survey conducted by the National Association of Home Builders (NAHB).

“The inappropriate use of distressed and foreclosed sales as comparables in determining new home values is

needlessly driving down home prices, killing home sales, causing more workers to lose their jobs and

delaying a housing and economic recovery,” said NAHB Chairman Bob Nielsen, a home builder from Reno,

Nev.

 

Too often, due to faulty appraisal practices, brand new homes with sparkling appliances and interior

upgrades get compared to a distressed property that has been sitting vacant and in disrepair. The result, in

many cases has been that the new house winds up getting appraised at less than the cost of construction.

That is precisely what is occurring in today’s marketplace, according to the NAHB survey, where a full 60

percent of respondents reported they were experiencing appraisals coming in below their contract sales

price.

Of those reporting that they had encountered this problem, 53 percent said the appraisal amount was actually

less than the cost of building the home.

“This is not only unfair and unreasonable, but it perpetuates the cycle of declining home values, drives more

home owners underwater, harms local economic activity and acts as an obstacle to the recovery of the

housing market,” said Nielsen.

 

These appraisal practices are a major contributing factor to the current acquisition, development and

construction (AD&C) lending crisis that has choked off credit for home builders and threatens to prolong the

current housing downturn.

Falling appraised values for land and subdivisions under development have led some financial institutions to

stop lending to developers and builders, to demand additional equity and even to call performing loans.

Since Sept. 2009, NAHB has held four appraisal summits in Washington with representatives of federal

banking regulators, the appraisal industry, the housing finance industry, the real estate and housing sectors

and others to find solutions that will allow appraisers to develop realistic valuations based on sales that are

truly comparable.

 

The need to give top priority to addressing the complexity of property valuations in distressed markets and

impediments to the flow of appropriate information on homes between appraisers and interested parties was

discussed during the most recent summit, which occurred on Oct. 19.

 

“Major reforms in appraisal practices and oversight are needed to ensure that appraisals accurately reflect

true market values and don’t contribute to price volatility or harm aspiring home owners and move-up

buyers,” said Nielsen. “We will continue to work with all stakeholders in this debate to find solutions.”

With the decline in home prices appearing to have ended or be coming to an end in most parts of the country,

resolving the appraisal and credit crunch issues remain a top priority for the association.

NAHB’s latest Improving Markets Index has shown modest signs of improvement in scattered housing

markets where employment is gaining and distressed properties are not as numerous.

New-home construction stands ready to serve as an engine for economic recovery. Building 100 single-family

homes creates more than 300 full-time jobs and provides $8.9 million in federal, state and local tax

revenues.

 

“Resolving inappropriate appraisal practices and restoring the flow of credit to home builders will not only help

to put America back to work, it will provide badly needed tax revenues that is essential for local governments

to support schools, police and firefighters in communities across the land,” said Nielsen.

 

Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO Consultant

CTAC LEED Certification

The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*

1910 East Mariposa Avenue, Suite 115
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 Cell

WebSite: http://www.harriscompanyrec.com

Resume: http://www.harriscompanyrec.com/CURRICULUMVITAENAME2011a.pdf

Commercial Appraiser Blog: http://harriscompanyrec.com/blog/

 

We Make a Simple Pledge to

Communicate, in a timely fashion, each appraisal, analysis, and opinion without bias or partiality

Abstain from behavior that is deleterious to our clients, the appraisal profession, and the public

Hold paramount the confidential nature of the appraiser/consultant - client relationship

and

Comply with the requirements of the Uniform Standards of Professional Appraisal Practice and the
Code of Professional Ethics of the National Society of Real Estate Appraisers

 

IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership http://www.orea.ca.gov/html/fed_regs.shtml#Statement7 Membership in an appraisal organization: A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization, including the appraisal institute.

 

CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal

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December 20, 2011

mai Stephen J. Vertin Exposes the appraisal institute ineptitude

"mai Stephen J. Vertin Exposes the appraisal institute ineptitude

THEY (ai, mai, appraisal institute) HAS BEEN IN BUSINESS SINCE DEBACLE I AND ARE JUST NOW GETTING AROUND TO TEACHING THEIR MEMBERS THE DIFFERENCE BETWEEN REAL AND PERSONAL pROPERTY, REDICulious!!!  Aparently this course is very similar to all their courses, short on facts and long on theory, i.e. just made up stuff.

Stephen J. Vertin, MAI's Avatar
Join Date: Jan 2002
Location: 203 North LaSalle Street, Suite 2100, Chicago, Illinois
State: Illinois
Professional Status: Certified General Appraiser
Posts: 2,187
DefaultFundamentals of Separating Real and Personal Property

"Last week I took the new AI course Fundamentals of Separating Real and Personal Property from Intangible Business Assets. I did not put this in the educational forum section since it applies heavily to commercial work.

I believe this is the future in AI's development into business valuation. They promise courses will follow. It makes sense since many future businesses will not have real estate and the fact of 2014 changing accounting standards. You would not believe the sentiment that the future of RE appraising is doomed because of existing and coming governmental regulations.

The class was heavy in theory. If you are looking for a calculator class this is not it. It is great for understanding the basics and a must for appraisers doing real estate appraisals with intangible components. I applaud the effort to unite terminology covering some of the most basic issues used in most general practices. A must do in 2012 for those who have not taken it. Further it is required for SBA loans on such properties. The Chicago class last week was the second given."
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December 17, 2011

ai, appraisal institute, mai seeks to continue its control over the Appraisal Industry

ai, appraisal institute, mai seeks to continue its control over the Appraisal Industry

 

" A related provision in the HERA Act requires FHA appraisers to have “demonstrated verifiable education in the appraisal requirement established by FHA1”.  "FHA has contended that state certification suffices for this requirement2, and on this point, (ai, mai, appraisal institute) we disagree."  http://appraisalinstitute.org/newsadvocacy/downloads/ltrs_tstmny/2011/AI-ASFMRAonFHAStateCertified.pdf

 

2 According to ML 08-39, “Moreover, FHA has determined that appraisers meeting the AQB criteria, as required by the FHA Appraiser Roster regulations, have “demonstrated verifiable education in the appraisal requirements established by FHA” under the new law.” Available at http://www.appraisal.state.az.us/userfiles/file/12%2008%20FHA%20Mortgagee%20Ltr.pdf

 

Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO Consultant

CTAC LEED Certification

The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*

1910 East Mariposa Avenue, Suite 115
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 Cell

WebSite: http://www.harriscompanyrec.com

Resume: http://www.harriscompanyrec.com/CURRICULUMVITAENAME2011a.pdf

Commercial Appraiser Blog: http://harriscompanyrec.com/blog/

 

We Make a Simple Pledge to

Communicate, in a timely fashion, each appraisal, analysis, and opinion without bias or partiality

Abstain from behavior that is deleterious to our clients, the appraisal profession, and the public

Hold paramount the confidential nature of the appraiser/consultant - client relationship

and

Comply with the requirements of the Uniform Standards of Professional Appraisal Practice and the
Code of Professional Ethics of the National Society of Real Estate Appraisers

 

IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership http://www.orea.ca.gov/html/fed_regs.shtml#Statement7 Membership in an appraisal organization: A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization, including the appraisal institute.

 

CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal

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appraisal institute, mai, ai IN CYA MODE

appraisal institute, mai, ai. . .

IN CYA MODE

 

For years we have advocated that Appraisers should not use non-armslength (reo, short sales, listings, and probate) sales transactions to determine "Market Value."  This practice has devastated the Real Estate Market.  For the same amount of time this practice has been promoted by the appraisal institute, mai, ai, and it's members.  The following Guide Note 11 was published in November of this year.  It is an obvious attempt to cover their posterior.  We encourage Realtors, Bankers, Mortgage Brokers, and HOME OWNERS to up the pressure and proceed with any and all civil actions against the ai, appraisal institute and its members.  This "organization" has proven year after year, that their only objective is make their members and clients part of the 1% club. 

 

The Harris Company, REA/C vows to provide our assistants to defeat these frauds and incompetents at the ai, appraisal institute, mai, and its members.

 

"Comparable Selection

Appraisers must consider all relevant transactions that have occurred in the market area and then determine which of those transactions should be used in the sales comparison analysis to arrive at a credible value opinion for the subject property. The best comps are those that are most similar to the subject property in terms of location, size, condition and other features that buyers and sellers believe make a difference to price. After selecting the best comps, the appraiser adjusts for material differences between each comp and the subject property. The appraiser must analyze each comp to GUIDE NOTE 11 48 Appraisal Institute Guide Notes

ascertain what adjustments are needed. Factors that may require adjustment include atypical buyer/seller motivations and sales concessions.

When the objective of the assignment is market value, ideally each comp selected for use in the sales comparison approach should have sold under the conditions specified in the definition of market value being used. For example, the buyer and seller should have been typically motivated. The seller should not have been under any compulsion to sell, nor the buyer under any compulsion to buy. The marketing effort and exposure time on the market should have been typical for that property type in that market. Payment should have been in cash or terms equivalent to cash; i.e., the seller should not have granted cash or non-cash concessions to bring a sale at the stated price.

When the conditions of the sale do not reflect the conditions outlined in the market value definition, either (1) the appraiser must consider making adjustments for such differences if it is to be used as a comp, or (2) the sale must not be used as a comp.

Distressed Sales as Comparables

Distressed sales such as foreclosure sales and short sales are common in a declining market. Depending on the severity of the local market downturn, some, many, or even all sales that occur do so under distressed conditions.

Appraisers cannot categorically discount foreclosures and short sales as potential comps in the sales comparison approach. However, due to differences between their conditions of sale and the conditions outlined in the market value definition they might not be usable as comps. Foreclosures and short sales usually do not meet the conditions outlined in the definition of market value. A short sale or a sale of a property that occurred prior to a foreclosure might have involved atypical seller motivations (e.g., a highly motivated seller.) A sale of a bank-owned property might have involved typical motivations, so the fact that it was a foreclosed property would not render it ineligible as a comp. However, if the foreclosed property was sold without a typical marketing program, or if it had become stigmatized as a foreclosure, it might need to be adjusted if used as a comp. Further, some foreclosed properties are in inferior condition, so adjustments for physical condition may be needed

As is always the case in selecting sales to use as comparables, appraisers must investigate the circumstances of each transaction, including whether atypical motivations were involved, sales concessions were involved, the property was exposed on the market for a typical amount of time, the marketing program was typical, or the property condition was compromised. Adjustments might need to be made for these circumstances. When it is necessary to use a distressed sale as a comp, the appraiser must carefully analyze the current local market to determine if an adjustment for conditions of sale is needed. If no adjustment is warranted, the lack of adjustment should be explained.

Physical condition and conditions of sale are two distinctly different factors that must be considered separately. They may be related to some degree in a distressed market, but not necessarily. An appraiser must not assume, for example, that a property was in inferior condition simply because it was a foreclosure.

The level of investigation needed to meet the requirement for sufficient diligence is generally more than is needed in non-distressed market situations. Further, supporting such adjustments can be particularly challenging when there are few current transactions to analyze. Competency in performing such investigation and analysis are required."

 

Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO Consultant

CTAC LEED Certification

The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*

1910 East Mariposa Avenue, Suite 115
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 Cell

WebSite: http://www.harriscompanyrec.com

Resume: http://www.harriscompanyrec.com/CURRICULUMVITAENAME2011a.pdf

Commercial Appraiser Blog: http://harriscompanyrec.com/blog/

 

We Make a Simple Pledge to

Communicate, in a timely fashion, each appraisal, analysis, and opinion without bias or partiality

Abstain from behavior that is deleterious to our clients, the appraisal profession, and the public

Hold paramount the confidential nature of the appraiser/consultant - client relationship

and

Comply with the requirements of the Uniform Standards of Professional Appraisal Practice and the
Code of Professional Ethics of the National Society of Real Estate Appraisers

 

IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership http://www.orea.ca.gov/html/fed_regs.shtml#Statement7 Membership in an appraisal organization: A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization, including the appraisal institute.

 

CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal

 

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December 15, 2011

Appraisal Institute, mai, sra, Launches Investigation Into Appraisal Fraud

Appraisal Institute, mai, sra, Launches Investigation Into Appraisal Fraud
Richard Hagar wants copies of appraisals

My comment: He sent me this email yesterday.

I’m trying to obtain copies of appraisals, as many as possible from all across the US.

Somewhere in your office, is there an appraisal that you can send me?
These appraisals can be:
• Bad appraisal that should be turned in to the state;
• An appraisal that was performed by someone that was not geographically competent;
• An appraiser that blew the value or failed to follow USPAP or;
• An example of a good appraisal.

I don’t care where it came from, how you obtained it, I just want to have them.

Why? I’m trying to put together a study of appraisals. Did bad appraisals cause a loss, did good appraisals save a bank from collapse.

How many were USPAP compliant and who ordered it (AMC or direct)?
2001-2011 preferable.

So if you have an appraisal that you can send me (PDF, email, regular mail) I’d like to have it.

Richard Hagar SRA
rh@americanappraisals.com
or
7433 SE 27th Street
Mercer Island, WA 98040

comment: FYI, Richard Hagar is an expert on appraisal fraud. And, an excellent speaker and instructor. And, does a lot of work for attorneys. by AnnO'Rorke, mai ai, appraisal institute

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November 14, 2011



Professional Liability Lawsuits
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As receiver for a failed financial institution, the FDIC may sue professionals who played a role in the failure of the institution in order to maximize recoveries. These individuals can include officers and directors, attorneys, accountants, appraisers, brokers, or others. Professional liability claims also include direct claims against insurance carriers such as fidelity bond carriers and title insurance companies.

The FDIC follows the policies adopted by the FDIC Board in 1992, Statement Concerning the Responsibilities of Bank Directors and Officers, which can be found at http://www.fdic.gov/regulations/laws/rules/5000-3300.html#fdic5000statementct, and require Board approval before actions are brought against directors and officers.

Professional liability suits are only pursued if they are both meritorious and cost-effective. Before seeking recoveries from professionals, the FDIC conducts a thorough investigation into the causes of the failure. Most investigations are completed within 18 months from the time the institution is closed. Prior to filing the claim, staff will attempt to settle with the responsible parties. If a settlement cannot be reached, however, a complaint will be filed, typically in federal court.

As receiver, the FDIC has three years for tort claims and six years for breach-of-contract claims to file suit from the time a bank is closed. If state law permits a longer time, the state statute of limitations is followed.

Professionals may be sued for either gross or simple negligence. The Supreme Court has ruled that the FDIC may pursue simple negligence claims against directors and officers if state law permits (Atherton v. FDIC). Federal law preempts state law that insulates directors and officers from gross negligence or worse conduct. Bank directors are allowed to exercise business judgment without incurring legal liability.

Not all bank failures result in Director and Officer (D&O) lawsuits. The FDIC brought claims against directors and officers in 24 percent of the bank failures between 1985 and 1992.

From 1986 through 2009, the FDIC and Resolution Trust Corporation collected $6.2 billion from professional liability claims. Over that same time, they spent $1.5 billion to fund all professional liability claims and investigations. Early in the process of professional liability claims, expenses will often exceed recoveries due to the costs incurred in handling new investigations. Professional liability program recoveries lag expenses by several years until settlements occur and judgments are awarded.

As of November 14, 2011, the FDIC has authorized suits in connection with 37 failed institutions against 340 individuals for D&O liability with damage claims of at least $7.6 billion. This includes 16 filed D&O lawsuits (2 of which have settled) naming 124 former directors and officers. The FDIC also has authorized 23 other lawsuits for fidelity bond, insurance, attorney malpractice, appraiser malpractice, and RMBS claims. In addition, 177 residential mortgage malpractice and fraud lawsuits are pending, consisting of lawsuits filed and inherited.

For additional background on Professional Liability Suits, please see Chapter 11 of "Managing the Crisis: The FDIC and RTC Experience" http://www.fdic.gov/bank/historical/managing/history1-11.pdf.

Authorized D&O DefendantsDamage Claims ($ millions)*
Authorized through 2010109$2,488.9
January 201110$60.2
February 201111$15.0
March 201128$1,007.9
April 201129$198.2
May 201121$92.7
June 201130$2,895.9
July 201110$54.6
August 201118$33.9
September 201128$375.1
October 201114$125.1
November 201132$217.1
Total340$7,564.6

*Losses typically exceed these amounts and may result in higher damage claims in filed lawsuits. Recovery on these claims is dependent upon available recovery sources, such as insurance and personal assets, and competing claims.

D&O Suits Filed

  1. FDIC as Receiver of IndyMac Bank, F.S.B. v. Van Dellen, et al., Case No. 2:10-cv-04915-DSF-SH (U.S. District Court for the Central District of California Filed Jul. 2, 2010).
  2. FDIC as Receiver of Heritage Community Bank v. Saphir, et al., Case No. 1:10-cv-07009 (U.S. District Court for the Northern District of Illinois Filed Nov. 1, 2010).
  3. FDIC as Receiver of 1st Centennial Bank v. Appleton, et al., Case No. 2:11-cv-00476-DDP-PLA (U.S. District Court for the Central District of California Filed Jan. 14, 2011).
  4. FDIC as Receiver of Integrity Bank of Alpharetta, GA v. Skow, et al., Case No. 1:11-cv-0111 (U.S. District Court for the Northern District of Georgia Filed Jan. 14, 2011).
  5. FDIC as Receiver of Corn Belt Bank and Trust Company v. Stark, et al., Case Number 3:11-cv-03060-JBM–BGC (U.S. District Court for the Central District of Illinois Filed Mar. 1, 2011).
  6. FDIC as Receiver for Washington Mutual Bank v. Killinger, et al., Case No. 2:11-cv-000459 (U.S. District Court for the Western District of Washington Filed Mar. 16, 2011).
  7. FDIC as Receiver for Wheatland Bank v. Spangler, et al., Case No. 10-cv-4288 (U.S. District Court for the Northern District of Illinois Filed May 5, 2011).
  8. FDIC as Receiver of IndyMac Bank, F.S.B. v. Perry, Case No. 11-cv-5561-ODW-MRWx (U.S. District Court for the Central District of California Filed Jul. 6, 2011).
  9. FDIC as Receiver of Haven Trust Bank v. Briscoe, Case No. 1:11-mi-99999-UNA (U.S. District Court for the Northern District of Georgia Filed Jul. 14, 2011).
  10. FDIC as Receiver of Michigan Heritage Bank v. Cuttle, Case No.2:11-cv-13422-BAF-MKM (U.S. District Court for the Eastern District of Michigan Filed Aug. 8, 2011).
  11. FDIC as Receiver of The Columbian Bank and Trust Co. v. McCaffree, Case No. 2:11-cv-02447-JAK-KGS (U.S. District Court for the District of Kansas Filed Aug. 9, 2011).
  12. FDIC as Receiver for Cooperative Bank v. Willetts, Case No. 7:11-cv-00165-BO (U.S. District Court for the Eastern District of North Carolina Filed Aug. 10, 2011).
  13. FDIC as Receiver for Silverton National Bank, N.A. v. Bryan, Case No. 1:11-cv-02790-JEC (U.S. District Court for the Northern District of Georgia Filed Aug. 22, 2011).
  14. FDIC as Receiver for First National Bank of Nevada v. Dorris, Case No. 11-cv-01652-GMS (U.S. District Court for the District of Arizona Filed Aug. 23, 2011).
  15. FDIC as Receiver for Alpha Bank v. Blackwell, Case No. 11-cv-3423 (U.S. District Court for the Northern District of Georgia Filed Oct. 7, 2011).
  16. FDIC as Receiver for Mutual Bank v. Mahajan, Case No: 1:11-cv-07590 (U.S. District Court for the Northern District of Illinois Filed Oct. 25, 2011).
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November 09, 2011

UAD Uniform Appraisal Data

http://www.harriscompanyrec.com/files/Curtis_Rosenthal.pdf

UAD Uniform Appraisal Data

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November 07, 2011

Are predetermined Appraisal ADJUSTMENTS Legal/Ethical

Are predetermined Appraisal ADJUSTMENTS Legal/Ethical? Please see attached Predetermined adjustments provided
by
Curtis - Rosenthal, Inc. (MAI Appraiser Los Angeles) LLC. an MAI Firm. You be the judge and get back with us or call
them for this years update. If your property was acquired by the Los Angeles World Airport (LAWA) you had better read
this!
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Appraisal Institute and Racial Discrimination,


Posted by Cochise
Commercial Appraiser http://www.harriscompanyrec.com/files/http___mccoynet.pdf


It appears that discrimination is something that the Appraisal Institute knows a lot about. In fact they use to be called T
he American
Institute of Real Estate Appraisers
until they were sued, for discrimination, by the Federal Government. They then changed their
name to the Appraisal Institute, same pig, different shade of lipstick.
(The MAI Appraiser Standard, Larry A Mc Coy, MAI)
Application Local governments are not immune from proscriptions of Title VIII, and may be sued. United States v Black Jack ...
provides for actions against states and political subdivisions as well as actions against private transactions and practices;
comprehensive purpose of Fair Housing Act)... would be diluted if it were to apply only to actions of private individuals and entities. ...
applies to appraisers of real estate. United States v American Institute of Real Estate Appraisers etc. (1977, ND Ill) 442 F Supp
1072, 24 FR Serv 2d 880, app dismd (CA7 Ill) 590 F2d 242, 48 ALR Fed 657. 42 USCS ? 3604(a, b, d)’

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October 26, 2011

RACISM STILL ALIVE AND WELL AT THE APPRAISAL INSTITUTE

RACISM STILL ALIVE AND WELL AT THE APPRAISAL INSTITUTE

 

Don't believe it?   Check out their latest propaganda.  A house organ with 14 pages, 31 photos and several hundred folks.  No Blacks!  Get the Picture?

Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO Consultant

CTAC LEED Certification

The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*

1910 East Mariposa Avenue, Suite 115
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 Cell

WebSite: http://www.harriscompanyrec.com

Resume: http://www.harriscompanyrec.com/CURRICULUMVITAENAME2011a.pdf

Commercial Appraiser Blog: http://harriscompanyrec.com/blog/

 

We Make a Simple Pledge to

Communicate, in a timely fashion, each appraisal, analysis, and opinion without bias or partiality

Abstain from behavior that is deleterious to our clients, the appraisal profession, and the public

Hold paramount the confidential nature of the appraiser/consultant - client relationship

and

Comply with the requirements of the Uniform Standards of Professional Appraisal Practice and the
Code of Professional Ethics of the National Society of Real Estate Appraisers

 

IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership http://www.orea.ca.gov/html/fed_regs.shtml#Statement7 Membership in an appraisal organization: A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization, including the appraisal institute.

 

CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal

 

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October 25, 2011

Appraisal Institute Busted for RACISM

Appraisal Institute Busted for RACISM

Appraisal Institute Busted for RACISM

LEXSEE 442 F SUPP 1072

UNITED STATES OF AMERICA, Plaintiff, v. THE AMERICAN INSTITUTE OF REAL ESTATE APPRAISERS OF THE NATIONAL ASSOCIATION OF REALTORS, THE SOCIETY OF REAL ESTATE APPRAISERS, THE UNITED STATES LEAGUE OF SAVINGS ASSOCIATIONS, and THE MORTGAGE BANKERS ASSOCIATION OF AMERICA, Defendants

No. 76 C 1448

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION

442 F. Supp. 1072; 1977 U.S. Dist. LEXIS 12760; 24 Fed. R. Serv. 2d (Callaghan) 880

 

November 23, 1977

CASE SUMMARY:

 

PROCEDURAL POSTURE: Defendants, institute and other organizations and individuals, filed a motion in the court for leave to intervene and oppose a proposed settlement agreement between plaintiff United States and the institute arising from a lawsuit under the Fair Housing Act (Act), 42 U.S.C.S. § 3601 et seq. The settling parties applied for entry of the proposed settlement order, approval of a settlement agreement, and a confidentiality order.

OVERVIEW: The United States filed a lawsuit against the institute and the other organizations pursuant to 42 U.S.C.S. § 3613, to secure relief from alleged violations of the Act, Title VIII of the Civil Rights Act of 1968. The institute's motion to intervene as of right under Fed. R. Civ. P. 24(a)(2) was before the court. The court denied the institute's motion to intervene, but granted an individual's motion for leave to intervene permissively under Fed. R. Civ. P. 24(b) solely for the purpose of contesting the legality of the settlement agreement insofar as it infringed his constitutional right to freedom of speech. The court approved the settlement order, the agreement, and the confidentiality order between the United States and the institute. The court found that the United States had stated a claim for relief under the terms of the Act. The court determined that the failure to submit the proposed settlement order to the membership for approval did not evidence inadequacy of representation, in light of the by-laws and a state statute. The court concluded that the institute's entry into the settlement agreement did not amount to a failure to fulfill its duty to represent its members.

OUTCOME: The court denied the institute's motion to intervene and oppose a proposed settlement arising from the United States' lawsuit against the institute and the other organizations and individuals under the Act. The court approved the settlement order, the settlement agreement, and the confidentiality order between the United States and the institute and ordered their immediate entry.

 

JUDGES: [**1] George N. Leighton United States District Judge.

OPINION BY: LEIGHTON

OPINION

[*1076] Memorandum

Before the Honorable George N. Leighton United States District Judge

This cause is before the court on the motion of F. Gregory Opelka and 71 other individuals for leave to intervene and oppose a proposed settlement agreement between plaintiff United States and defendant American Institute of Real Estate Appraisers (hereinafter "AIREA" or "Institute"). Also, the settling parties have applied for entry of the proposed settlement order, approval of the settlement agreement and a confidentiality order between the United States and AIREA. For the following reasons, the motion to intervene as of right under Rule 24(a)(2), F.R.Civ.P., is denied; but the court grants Opelka leave to intervene permissively under Rule 24(b), F.R.Civ.P., solely for the purpose of contesting the legality of the settlement agreement insofar as it may infringe his constitutional right to freedom of speech. Further, the settlement order, the agreement, and the confidentiality order between the United States and AIREA are approved; their immediate entry is ordered.

I.

On April 16, 1976, the United States filed [**2] this suit against four organizations: The American Institute of Real Estate Appraisers, the Society of Real Estate Appraisers, the United States League of Savings Associations, and the Mortgage Bankers Association of America, pursuant to 42 U.S.C. § 3613, to secure relief from alleged violations of the Fair Housing Act, Title VIII of the Civil Rights Act of 1968, 42 U.S.C. §§ 3601, et seq. [hereinafter the "Fair Housing Act"]. The complaint alleges that since the effective date of the Fair Housing Act, defendants have engaged in unlawful discriminatory practices by promulgating standards which have caused appraisers and lenders to treat race and national origin as negative factors in determining the value of dwellings and in evaluating the soundness of home loans; and by failing to take adequate steps to correct the continuing effect of past discrimination and ensure non-discrimination by appraisers and lenders whose practices are subject to the influence or authority of the four organizations. Defendants' practices, it is alleged, have made dwellings unavailable to persons because of race and national origin; denied home loans to such persons; and have interfered with their [**3] exercise and enjoyment of rights secured by the Fair Housing Act in violation of 42 U.S.C. §§ 3604(a), 3605, and 3617. The United States seeks injunctive and declaratory relief from these alleged violations. Jurisdiction is invoked under 42 U.S.C. § 3613 and 28 U.S.C. § 1345.

After extensive negotiations, which included development of an affirmative action program, 1 the United States and AIREA have agreed not to seek a litigated resolution of their controversy. Instead, they have applied for entry of a settlement order which incorporates a proposed settlement agreement and affirmative action program. The agreement is divided into two parts: (1) the affirmative action program (Pts. I-VI); and (2) a plan for implementation [*1077] of the agreement and resolution of the litigation (Pts. VII-VIII).

1 The affirmative action program is, to a large extent, the product of negotiations between AIREA and the United States Department of Housing and Urban Development's Office of Fair Housing and Equal Opportunity, Office of Voluntary Compliance (hereinafter "OFHEO/OVC").

[**4] In the affirmative action section, it is agreed that AIREA will adopt three fundamental policy statements:

(1) It is improper to base a conclusion or opinion of value upon the premise that the racial, ethnic, or religious homogeneity of the inhabitants of an area or of a property is necessary for maximum value.

(2) Racial, religious or ethnic factors are deemed unreliable predictors of value trends or price variance.

(3) It is improper to base a conclusion or opinion of value, or a conclusion with respect to neighborhood trends, upon stereotyped or biased presumptions relating to race, color, religion, sex or national origin or upon unsupported presumptions relating to the effective age or remaining life of the property being appraised or the life expectancy of the neighborhood in which it is located.

AIREA is to implement these stated general policies through specific changes in its textbook, The Appraisal of Real Estate, through review and, if necessary, prompt revision of its other instructional materials, courses, and seminars to ensure that they reflect the policy statements. Further, AIREA is to prepare, for use in its courses, an educational memorandum [**5] which explains civil rights legislation pertinent to the real estate appraisal profession. It is to develop special seminars for its members and the general public concerning appraisal of real estate and explaining the general policies and educational memorandum. AIREA agrees to add new explanatory comments to Canon 4 of Regulation 10 of its Code of Professional Ethics and Standards of Professional Conduct. The comment is to clarify its position with respect to appraisal practices and its commitment to the stated general policies. In addition, it will add to the explanatory comments to Canon 5 a new reporting rule which provides, in part:

All written appraisal reports relating to residential real estate which state that a neighborhood is undergoing decline or is about to undergo decline must contain the specific facts or reasoning upon which the . . . conclusion . . . is based.

A similar provision is made requiring that the specific facts or reasoning upon which similar oral appraisal reports are based must be contained in the appraiser's files. AIREA will issue a new interpretation of Canon 6 which states that it is not improper for an appraiser to permit a government [**6] agency investigating alleged unlawful activity to have access to appraisal reports. The decision to permit or deny such access is reserved to the appraiser. AIREA agrees to maintain a procedure for review of the appraisal reports relating to residential real estate in order to ensure that members and candidates understand the general policies. It will also expand its recruitment and scholarship outreach program which is aimed at acquainting women and minority group members with opportunities in the real estate appraisal profession.

The implementation section of the settlement agreement provides a termination date at which time the parties will petition the court for dismissal of AIREA from the litigation. AIREA is to advise the OFHEO/OVC and the United States of each material step taken to implement the agreement. However, it is provided that no part of the agreement

shall be interpreted to limit AIREA's right to implement its plans or publish or distribute any materials which it has developed [pursuant to the affirmative action plan] without prior approval of Justice.

The United States will, however, be placed on AIREA's mailing list and, subject to the confidentiality [**7] order, will have access to AIREA's files which relate to the settlement obligation. AIREA may, at its sole option and discretion, obtain review and comments of the United States regarding any material it plans to distribute pursuant to the agreement.

The parties shall remain subject to the continuing jurisdiction of the court during the term of the agreement. The agreement is enforceable by court order, should the [*1078] parties disagree as to its interpretation following negotiations attempting to resolve the dispute. The settlement order specifically provides that it and the agreement

[do] not in any way affect any of the defendants to this action other than AIREA and shall not be deemed to limit or prejudice the rights of the United States or any of said other defendants to apply for any relief they deem appropriate whether or not such relief is different than or in addition to the remedies provided for herein.

Similarly, the agreement provides:

Except as expressly provided for herein and in the Settlement Order, this Settlement Agreement does not constitute a determination of the rights of any party to this litigation.

F. Gregory Opelka, [**8] an AIREA member, filed suit in the Circuit Court of Cook County, Illinois, against AIREA challenging its power to enter into the settlement agreement. On March 29, 1977, the circuit court issued an order restraining AIREA from executing the documents intended by the United States and AIREA to resolve the controversy between them. On March 31, 1977, this court entered a temporary order restraining Opelka from attacking the settlement agreement in any state or other federal court. The temporary restraining order was converted into a preliminary injunction on April 8, 1977. Shortly thereafter, Opelka moved for leave to intervene as a party defendant in this action.

Opelka's motion alleges that his interest as a member of AIREA is inadequately represented in this action because he and other AIREA members have not been given an opportunity to exercise their right to review and vote on the proposed settlement agreement. The complaint he seeks to file addresses itself solely to the propriety of the settlement. It alleges that the agreement has the effect of binding all AIREA members to its provisions in the practice of their profession and would violate their first amendment rights; [**9] that the governing council exceeded its authority under AIREA by-laws by entering into the agreement; that the agreement constitutes an amendment of the existing code of professional ethics; and that it constitutes a violation of the by-laws in that the agreement amounts to an amendment of the by-laws without proper notice to members. Therefore, Opelka seeks an order compelling AIREA to submit the settlement agreement to its members for their review and restraining AIREA from entering into it, prior to membership approval.

The United States and AIREA assert that Opelka cannot intervene as of right, but have no objection to his intervention, on a permissive basis, for the purpose of contesting the settlement agreement. 2 Opelka and the Society of Real Estate Appraisers (hereinafter "SREA" or "Society") oppose entry of the settlement order and agreement.

2 Both the United States and AIREA devote some attention in their briefs to opposing Opelka's intervention as a full party defendant. However, because Opelka's motion and proposed pleading indicate that he wishes to intervene only for the purpose of opposing the settlement agreement, the court finds intervention as a full party defendant is not proposed nor at issue here. See Rule 24(c), F.R.Civ.P.

[**10] II.

SREA's first, and fundamental, objection is that the court lacks jurisdiction to enter the settlement order because the Fair Housing Act does not apply to appraisers. While the court rejected that contention when it denied SREA's motion to dismiss, the court takes this opportunity to hold that the Fair Housing Act does apply to appraisers of real estate and that this court has jurisdiction over this action under 42 U.S.C. § 3613 and 28 U.S.C. § 1345. And having jurisdiction, it can grant declaratory judgment relief pursuant to 28 U.S.C. §§ 2201, 2202. SREA's principal argument is that because sections 804(a) and 817 of the Fair Housing Act, 42 U.S.C. §§ 3604(a), 3617, do not mention appraisers or the appraisal process, the Act does not reach the activities of appraisers. In pertinent part, these provisions declare:

[*1079] § 3604. Discrimination in sale or rental of housing

[It] shall be unlawful -

(a) To refuse to sell or rent after the making of a bona fide offer, or to refuse to negotiate for the sale or rental of, or otherwise make unavailable or deny, a dwelling to any person because of race, color, religion, sex, or national origin.

§ [**11] 3617. Interference, coercion, or intimidation; enforcement by civil action

It shall be unlawful to coerce, intimidate, threaten, or interfere with any person in the exercise or enjoyment of, or on account of his having exercised or enjoyed, or on account of his having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected by section 3603, 3604, 3605, or 3606 of this title. This section may be enforced by appropriate civil action. (Emphasis added.)

It is clear from the plain language of the provisions that appraisers are not exempted from their coverage; both sections are unrestricted with respect to the class of persons subject to their prohibition. The "otherwise make unavailable or deny" language of section 804(a) has been applied to a variety of conduct to prohibit all practices which have the effect of denying dwellings on prohibited grounds. For example, section 804(a) applies to racially exclusionary land use practices by a municipality. United States v. City of Black Jack, Missouri, 508 F.2d 1179 (8th Cir. 1974), cert. denied, 422 U.S. 1042, 45 L. Ed. 2d 694, 95 S. Ct. 2656 (1975). It applies to "redlining" [**12] by financial institutions. Laufman v. Oakley Bldg. & Loan Co., 408 F. Supp. 489, 493 (S.D. Ohio 1976). It applies to delaying tactics and discouragement of rental applications used by resident managers and rental agents, and top management and owners who fail to set objective and reviewable procedures for rental applications. United States v. Youritan Construction Co., 370 F. Supp. 643, 648 (N.D.Cal. 1973), aff'd as modified, 509 F.2d 623 (9th Cir. 1975). Finally, it applies to racial "steering". Zuch v. Hussey, 366 F. Supp. 553, 556-57 (E.D. Mich. 1973).

The "or interferes with" language of section 817 has been similarly broadly applied to reach all practices which have the effect of interfering with the exercise of rights under the Act. See, e.g., Smith v. Stechel, 510 F.2d 1162 (9th Cir. 1975); United States v. City of Black Jack, Missouri, supra; Laufman v. Oakley Bldg. & Loan Co., supra at 497-98. The Act requires a liberal construction if the statute is to prohibit effectively "all forms of discrimination, sophisticated as well as simple-minded. . . ." Williams v. Matthews Co., 499 F.2d 819, 826 (8th Cir.), cert. denied, 419 U.S. 1027, 42 [**13] L. Ed. 2d 302, 95 S. Ct. 507 (1974). Given a broad interpretation of these provisions, it becomes clear that the United States has stated a claim for relief under their terms. The promulgation of standards which cause appraisers and lenders to treat race and national origin as a negative factor in determining the value of dwellings and in evaluating the soundness of home loans may effectively "make unavailable or deny" a "dwelling" and may "interfere" with persons in the exercise and enjoyment of rights guaranteed by the Act. When such denial or interference occurs as a result of considerations relating to race or national origin, sections 804(a) and 817 are transgressed. 3

3 The court further notes that it has jurisdiction to enter the settlement order and agreement under the teaching of Bell v. Hood, 327 U.S. 678, 681-82, 90 L. Ed. 939, 66 S. Ct. 773 (1946). As was stated in Grabinger v. Conlisk, 320 F. Supp. 1213, 1217 (N.D. Ill. 1970), aff'd, 455 F.2d 490 (7th Cir. 1972):

When a claim is alleged to arise under the Constitution or laws of the United States, the federal district court must entertain the suit except when the alleged claim appears to be immaterial and made solely for the purpose of obtaining jurisdiction or where it is wholly insubstantial and frivolous.

[**14] III.

Absent a statutory right of intervention, Rule 24(a)(2) of the Federal Rules of Civil Procedure requires the applicant to establish three elements as a prerequisite to intervention as of right: (1) an interest in the subject matter of the lawsuit; (2) the potential [*1080] for impairment of that interest; and (3) the inadequate representation of that interest by existing parties. See 3B Moore's Federal Practice, para. 24.09-1[1] (2d ed. 1977); 7A C. Wright & A. Miller, Federal Practice & Procedure, Civil §§ 1902, 1908 (1972); Comment, Intervention in Government Enforcement Actions, 89 Harv. L. Rev. 1174 (1976). Opelka argues that he has an interest in the entry of the settlement agreement and order which may be impaired by this court's disposition of the matter in that his right to commercial free speech and the economic conditions of his practice may thereby be affected. The gist of his argument is that the settlement agreement and order, if approved by this court, will bar him from utilizing racial and ethnic factors in making appraisals of residential real estate and thereby force him to ignore socioeconomic realities. He also argues that because the agreement [**15] binds all individual AIREA members, those who are jointly designated members of both AIREA and SREA will be placed in the untenable position of either adhering to SREA practices or complying with the settlement order. These arguments misapprehend the "interest" and "practical impairment" requirements of Rule 24(a)(2) as well as the substance and reach of the proposed settlement before the court.

The "interest" requirement of Rule 24(a)(2) has been recognized as "primarily a practical guide to disposing of lawsuits by involving as many apparently concerned persons as is compatible with efficiency and due process." Nuesse v. Camp, 128 U.S. App. D.C. 172, 385 F.2d 694, 700 (1967). The requirement is satisfied by something less than a specific legal or equitable interest in the chose. See, e.g., Cascade Natural Gas Corp. v. El Paso Natural Gas Co., 386 U.S. 129, 132-36, 17 L. Ed. 2d 814, 87 S. Ct. 932 (1967); Johnson v. San Francisco Unified School Dist., 500 F.2d 349, 352-53 (9th Cir. 1974); Smuck v. Hobson, 132 U.S.App.D.C. 372, 408 F.2d 175 (1969); Nuesse v. Camp, supra. As one court has observed:

If barriers are needed to limit extension of the right [**16] to intervene, the criteria of practical harm to the applicant and the adequacy of representation by others are better suited to the task. Smuck v. Hobson, supra, 408 F.2d at 180.

In this case, however, the asserted interest and its impairment are intimately bound together. For Opelka's interest is no different from that of all members of AIREA or all jointly designated members of AIREA and SREA, a fact which is emphasized by the addition of 71 such individuals as proposed intervenors by amendment to the complaint for intervention. The interest asserted is one that involves not being bound by the terms of the proposed settlement agreement and order. However, the terms of the agreement and order make clear that no individual member of AIREA is bound as such. The agreement and order direct AIREA to take certain actions. But since these actions are to be taken by the organization as such, there is no apparent way in which Opelka, or any member of AIREA or SREA, could violate the agreement and order and thereby become subject to enforcement proceedings.

In Smuck v. Hobson, supra, the court rejected efforts by a former superintendent of schools and a member of the [**17] Board of Education of the District of Columbia to intervene as of right or to appeal a district court order which had found that the Board had, in a variety of ways, acted unconstitutionally in administering the school system. The court concluded that the ex-superintendent did not have an interest sufficient to allow intervention because:

The original decision was not a personal attack upon [him], nor did it bind him personally once he left office. Smuck v. Hobson, supra, 408 F.2d at 177.

The board member was found to have no appealable interest because the Board had been sued as a collective entity and the order was enforceable against the Board alone as such. Id. at 178. So too, here, Opelka has no separate interest as an individual in the [*1081] litigation which could be affected by the settlement order since the order cannot be enforced against him nor can he violate it. See also Rios v. Enterprise Ass'n Steamfitters Local U. 638, 520 F.2d 352 (2d Cir. 1975).

However, even assuming that Opelka satisfies the "interest" and "impairment" requirements, his application for intervention is legally insufficient because he does not show that his [**18] interest is one which may be inadequately represented by an existing party. The burden of establishing inadequacy of representation rests on the applicant. Trbovich v. United Mine Workers of America, 404 U.S. 528, 538 n.10, 30 L. Ed. 2d 686, 92 S. Ct. 630 (1972). And although that burden is minimal, it must nonetheless be met. Commonwealth of Virginia v. Westinghouse Electric Corp., 542 F.2d 214, 216 (4th Cir. 1976).

Opelka alleges that the governing council of AIREA is adverse to himself and to the Institute. He claims this inadequacy of representation is shown by the alleged "nonfeasance" of the governing council in failing to apprise him and other AIREA members of the litigation's development and to provide them with an opportunity to review or to vote on the proposed settlement agreement. 4 The United States argues that Opelka's interests, and that of all voluntary members of the Institute, are adequately represented by AIREA.

4 Opelka also alleges that the governing council lacked power to enter into the settlement agreement and hence its acts are ultra vires. There is no merit in this contention. See Ill. Rev. Stat. ch. 32, § 163a4(b), (p). The Institute's by-laws vest control of its affairs in the governing council, except that the membership elects the council and approves all amendments to the by-laws.

[**19] In United States v. Board of School Commissioners of Indianapolis, 466 F.2d 573 (7th Cir. 1972), the court of appeals affirmed a district court's denial of a petition to intervene in a school desegregation case by a corporation, Citizens of Indianapolis for Quality Schools ("CIQS"). CIQS sought to challenge the entry of a consent decree and stipulations between the government and the school board. The court conceded that requirements of interest and impairment had been met, but found the proposed intervenors had not demonstrated that their interest was inadequately represented by the school board. The court established a standard for determining the adequacy of representation:

[Representation] is adequate if no collusion is shown between the representative and an opposing party, if the representative does not have or represent an interest adverse to the proposed intervenor and if the representative does not fail in the fulfillment of his duty. Id. at 575.

The proposed intervenors' claims that the school board, by entering into the consent decree and stipulation, had "failed to assert [the proposed intervenors'] interests as vigorously and effectively [**20] as they would have had they been parties to the litigation" were insufficient to establish inadequacy of representation. Id. Opelka's claims are likewise insufficient.

Opelka does not allege directly that there is any collusion between the United States and AIREA; and it is clear that there is none. As United States v. Board of School Commissioners of Indianapolis, supra, demonstrates, entry into a proposed settlement does not constitute such collusion per se. Here, AIREA initially responded to the complaint by filing an answer which, in addition to denying the substantive allegations of the complaint, raised statutory and constitutional defenses. The proposed settlement agreement and order is the product of negotiations between AIREA and the United States Department of Housing and Urban Development, scheduled prior to this litigation and continued thereafter, with the Department of Justice joining the negotiations. The court cannot conclude that the decision to enter into the settlement order rather than engage in what promises to be, in light of proceedings thus far, extensive, costly and complex litigation, evidences in any way collusion on the part of AIREA and [**21] the United States.

[*1082] Equally clearly, AIREA does not have or represent an interest adverse to petitioner. The purpose of a professional organization is to further the interests of its members. Where a party litigant is charged with representing the proposed intervenor's interests, a compelling showing is required to demonstrate that this representation is inadequate. United States v. International Business Machines Corp., 62 F.R.D. 530, 536 (S.D.N.Y. 1974), citing 7A C. Wright & A. Miller, Federal Practice & Procedure Civil § 1909 (1972); Shapiro, Some Thoughts on Intervention Before Courts, Agencies, and Arbitrators, 81 Harv.L.Rev. 721, 748 (1964). In Stadin v. Union Electric Co., 309 F.2d 912 (8th Cir. 1962), cert. denied, 373 U.S. 915, 10 L. Ed. 2d 415, 83 S. Ct. 1298 (1963), a shareholder sought to intervene as a party plaintiff in two civil antitrust actions brought by his corporation. Following the refusal by the board of directors and shareholders to bring certain suits, the shareholder sought to intervene, alleging that the directors' refusal to bring suit and purchase of certain equipment on behalf of the corporation "at rigged prices" was [**22] not in good faith and was a breach of trust; and that the corporation's attorney and director inadequately represented the shareholder's interest because he was not on friendly terms with the shareholder and had voted against the shareholder's proposals. Noting that the allegations of the proposed intervenor were to be taken as true, the court nonetheless added the caveat that this

does not mean . . . all statements in pleadings of this kind are to be accepted as true irrespective of their nature or content. . . . [Only] matters well pleaded . . . are entitled to the preferential status of assumed truth. Conclusory statements are not. Id. at 917.

The court then examined the shareholder's allegations, finding:

[They] speak of management's voting against the Stadin resolution and they charge that this bespeaks condonation and bad faith. These latter characterizations are only the pleader's conclusions. . . . We cannot escape the conclusion that Stadin's complaint as to inadequacy of representation lies largely in the area of asserted disagreement between lawyers as to how litigation should be conducted. Mere difference of opinion among attorneys [**23] is not of itself inadequate representation within the meaning of the Rule. If it were, intervention as of right would become almost automatic. Id. at 919.

Piercing the allegations of Opelka's complaint, the court finds the asserted inadequacy of representation is only the pleader's conclusion based on a difference of opinion as to how this litigation should be conducted. Opelka points to the Institute's failure to keep members apprised of the litigation's progress and concludes that its failure to present the proposed settlement agreement to AIREA membership for approval demonstrates inadequacy of representation. But the governing council had no such obligation. The by-laws of the Institute vest control of its affairs in the governing council. Relevant state law confers on the Institute the power "[to] sue and be sued, complain and defend, in its corporate name." Ill. Rev. Stat. ch. 32, § 163a4(b). The failure to submit the proposed settlement order to the membership for approval does not evidence inadequacy of representation, in light of the by-laws and state statute. Opelka makes no allegation of bad faith, but only of bad judgment, in that he believes the governing [**24] council has not asserted the membership's interests as vigorously and effectively as he would have. That he would have utilized different litigation tactics does not mean that the governing council does not adequately represent his interests in this litigation as a member of AIREA.

AIREA's entry into the settlement agreement does not amount to a failure to fulfill its duty to represent its members, for much the same reasons as discussed above. In Alleghany Corp. v. Kirby, 344 F.2d 571 (2d Cir. 1965), writ of cert. vacated as improvidently granted, 384 U.S. 28, 86 S. Ct. 1250, 16 L. Ed. 2d 335 [*1083] (1966), shareholders sought to intervene in a derivative action following a decision by the board of directors not to petition for a writ of certiorari. The court declined to determine the issue of adequacy of representation on the basis of the soundness or improvidence of the board's decision to terminate the litigation. The court stated:

Adequacy of representation . . . depends not on our assessment of whether the Board should have authorized a certiorari petition, but rather on whether shareholder interests were fully and fairly considered when the Board reached [**25] its decision. Stated somewhat differently, the mere fact that a particular decision is adverse to certain interests does not necessarily mean those interests were not adequately represented in the decision-making process or in the decision itself. Id. at 574.

In this case, AIREA's entry into the proposed settlement agreement does not mean that it failed in its duty to represent membership interests. And, absent allegations of collusion or bad faith, the court will not delve into the decision-making process of the governing council nor into the soundness of its decision to terminate this litigation rather than pursue it to judgment on the merits. The fact that Opelka's opinions did not prevail in the governing council does not mean that those opinions were not fully and fairly considered. Accordingly, the court concludes that he is not entitled to intervene as of right to challenge the settlement agreement.

IV.

The court thus turns to a determination of whether Opelka should be permitted to intervene on a permissive basis. The court notes that the numerous objections to the settlement agreement and order raised by Opelka are also raised by the Society. Where the proposed [**26] intervenor merely underlines issues of law already raised by the primary parties, permissive intervention is rarely appropriate.

Additional parties always take additional time. Even if they have no witnesses of their own, they are the source of additional questions, objections, briefs, arguments, motions and the like which tend to make the proceeding a Donnybrook Fair. Crosby Steam Gage & Valve Co. v. Manning, Maxwell & Moore, Inc., 51 F. Supp. 972, 973 (D.Mass. 1943).

Therefore, the court declines to allow full-scale intervention which will inevitably bring about delay, repetition and the clouding of issues involved in the original cause of action. See Stadin v. Union Electric Co., supra at 920.

However, it is appropriate to allow Opelka to intervene to address the merits of the settlement agreement. The district court's discretion under Rule 24(b), F.R.Civ.P., includes the latitude to limit intervention to particular issues. Van Hoomissen v. Xerox Corp., 497 F.2d 180, 181 (9th Cir. 1974); Ionian Shipping Co. v. British Law Ins. Co., 426 F.2d 186, 191-92 (2d Cir. 1970). Opelka has indicated that, if granted leave to intervene, he will adopt the [**27] arguments made and authorities cited in his memorandum of law in support of his application for leave to intervene and in opposition to the proposed settlement order. The primary parties to this litigation have no objection to Opelka's permissive intervention so long as it is limited to challenges to the settlement he makes in his memorandum. Accordingly, the court grants Opelka leave to intervene on a permissive basis, limiting that intervention to the arguments raised by him that the settlement agreement and order infringe his first amendment rights.

V.

In many respects, a consent decree is a contract between the parties thereto. United States v. ITT Continental Baking Co., 420 U.S. 223, 236-37 n.10, 43 L. Ed. 2d 148, 95 S. Ct. 926 (1975). Although it must have judicial approval, a court reviewing such a decree does not inquire into the precise legal rights of the parties. See Florida Trailer & Equipment Co. v. Deal, [*1084] 284 F.2d 567, 571 (5th Cir. 1960). However, the court must be certain that "there has been valid consent by the concerned parties and that the terms of the decree are not unlawful, unreasonable, or inequitable." United States v. City of Jackson, [**28] Mississippi, 519 F.2d 1147, 1151 (5th Cir. 1975).

It has been recognized that consent decrees are "highly useful tools." Id. at 1151. While waiving their right to litigate the issues involved in the suit, parties "save themselves the time, expense, and inevitable risk of litigation." United States v. Armour & Co., 402 U.S. 673, 681, 29 L. Ed. 2d 256, 91 S. Ct. 1752 (1971). Most important, however, "the agreement reached . . . embodies a compromise; in exchange for the saving of cost and elimination of risk, the parties each give up something they might have won had they proceeded with the litigation." Id. "[The] inherent nature of a compromise is to give up certain rights or benefits in return for others." MacDonald v. Chicago Milwaukee Corp., 565 F.2d 416, 429 (7th Cir. 1977). Hence, a consent decree is not a precise delineation of legal rights.

With these principles in mind, the court turns to decide whether the proposed settlement agreement and order in this case are valid. First, the court finds that AIREA consented to the agreement and order. The agreement and order are the result of extensive negotiations not only between AIREA and the United States, but [**29] between AIREA and OFHEO/OVC. AIREA and HUD had agreed, prior to institution of this litigation, that possibilities of developing an affirmative action program for AIREA would be explored. After this suit was filed, the United States initially sought to terminate the discussions, but later consented to their continuance, provided government representatives could be present. As negotiations proceeded, the United States and AIREA found that settlement could be reached. AIREA agreed to adopt the statement of general policies which it had determined reflects sound appraisal practices; the United States determined to its own satisfaction that the policies satisfy the requirements of the Fair Housing Act. The court thus finds that there had been a valid consent by the concerned parties. Second, the court finds that, as to AIREA, the terms of the decree are not unlawful, unreasonable, nor inequitable. While it is true that the parties may have surrendered certain rights and benefits they might have vindicated or obtained through litigation, the surrender was in return for other rights and benefits.

The Society of Real Estate Appraisers raises several objections which, it argues, bar [**30] the court's approval of the settlement agreement and order. First, SREA argues that judicial approval of the settlement agreement and order places a judicial imprimatur on a specific theory of real estate appraisal, thereby stifling the exchange of ideas within the profession and condemning alternative theories. This argument overstates the effect of the settlement agreement and order. A consent decree is not a litigated judgment on the merits. The court's approval of the settlement agreement and order is not the judicial adoption of the real estate appraisal policies adopted by the parties therein. Rather, it is an approval of a compromise between the parties as validly consented to and not unlawful.

Second, SREA argues that the court's approval of the settlement agreement and order will irreparably prejudice SREA's defense to this action. In United States v. City of Jackson, Mississippi, supra, the United States and black municipal employees brought separate suits to remedy alleged racial discrimination in employment. The district court rendered judgment in the government's suit on a consent decree providing for injunctive relief and back pay to incumbent and former employees. [**31] In rejecting the employees' motion to intervene and to block the decree on the ground that its stare decisis effect would impair their efforts to obtain relief, the court stated:

This argument gives insufficient consideration . . . both to the significant differences between a consent decree and [*1085] a litigated judgment on the merits and to the good sense of the federal trial bench. . . . We cannot assume that courts will not recognize the special characteristics and purposes of consent decrees. To the contrary, we believe that courts fully understand that such decrees do not purport to be definitive statements of the parties' legal rights and will accord them little or no weight in the determination of the rights of persons not party to them. Id. at 1151-52.

Cf. Air Lines Stewards & Stewardesses Ass'n, Local 550 v. American Airlines, Inc., 455 F.2d 101, 106 (7th Cir. 1972). So too, here, the settlement agreement and order between the United States and AIREA should have no effect on the determination of SREA's rights.

Third, SREA argues that entry of the order will adversely affect SREA professionally. The Society argues that it will suffer [**32] lost business and diminished enrollment because potential clients and students will fear that by working with SREA they will be violating federal law. SREA also argues that appraisers who are joint members of AIREA and SREA will be placed in an untenable position and may resign from SREA to avoid violating federal law. Again, this argument overestimates the consequences of a consent decree. Moreover, it is speculative.

Opelka joins in SREA's objections, which this court rejects, and raises several of his own. He argues that, by the terms of the agreement and order, he may neither consider or communicate ideas pertaining to racial and ethnic factors which he believes to be relevant to the appraisal profession. Thus, he argues, the order impermissibly infringes on his first amendment rights. See Linmark Associates, Inc. v. Township of Willingboro, 431 U.S. 85, 97 S. Ct. 1614, 52 L. Ed. 2d 155 (1977). The short answer to this argument, as discussed in Part III, supra, is that the order does not bind him because he is not a party. It cannot be enforced against him nor can he violate it. Under these circumstances, it does not violate his first amendment rights.

The fact [**33] that Opelka, as a member of AIREA, is bound by its by-laws does not change this court's view for these reasons. First, there is nothing in the record to indicate the by-laws of the Institute have been altered by the settlement agreement and order. Second, without the force of governmental sanctions behind the by-laws, it is unclear that any first amendment problem is necessarily raised by the Institute's requirement that he comply with its by-laws or professional canons as a condition of continued membership. See Cannon v. University of Chicago, 559 F.2d 1063, 1068-71 (7th Cir. 1977); Driscoll v. International Union of Operating Engineers, Local 139, 484 F.2d 682, 690 (7th Cir. 1973), cert. denied, 415 U.S. 960, 39 L. Ed. 2d 575, 94 S. Ct. 1490 (1974); compare Jackson v. Metropolitan Edison Co., 419 U.S. 345, 42 L. Ed. 2d 477, 95 S. Ct. 449 (1974). Third, and most importantly, whether in the future Opelka may be adversely affected, and his legal rights infringed, by some AIREA action, either pursuant to the settlement agreement and order or otherwise, is a question that is not ripe for decision. We cannot adjudicate that issue on the basis of predictions about the [**34] possible conduct of either Opelka or AIREA; their behavior turns on contingencies and requires guesses about the future. In substance, Opelka requests this court "to provide [him] with guidance for the future rather than to resolve a pending or threatened controversy between adverse parties. [The court has] no power to render such advice . . . ." Hanover Township Federation of Teachers, Local 1954 v. Hanover Community School Corp., 457 F.2d 456, 463 (7th Cir. 1972). Therefore, whether, at some future date, AIREA might act in some way as to infringe Opelka's legal rights is a question this court cannot reach. For the reasons stated, the court hereby approves the settlement order, the agreement, and the confidentiality order between the United States and AIREA and orders their immediate entry.

George N. Leighton, United States District Judge

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September 28, 2011

mai appraiser

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September 24, 2011

High Performance Green Building: What’s it worth? Theddi Wright Chappell, MAI, Appraisal Institut, "CANNOT BE QUANTIFIED."

High Performance Green Building:

What’s it worth?

 

"Though the exact impact of the green strategies employed at Alley24 East on the project’s market value cannot be quantigied. . . "  http://cascadiagbc.org/news/GBValueStudy.pdf

Theddi Wright Chappell, MAI, Appraisal Institute

 

 

,

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September 20, 2011

Debacle III

Debacle III 

Sale or Financing Concessions

Note: This field, comprised of two lines, is used to capture sale type, financing type,

and any concessions. The information must be entered on line 1 and line 2 as

indicated.

 

Line 1

The appraiser must indicate the sale type for each comparable property. If more than

one sale type applies to the comparable property, the appraiser must start at the top of

the list and identify the first sale type that applies. The valid values are:

 

ABBREVIATED

ENTRY

 

SALE TYPE

REO REO sale

Short Short sale

CrtOrd Court ordered sale

Estate Estate sale

Relo Relocation sale

NonArm Non-arms length sale

ArmLth Arms length sale

Listing Listing

 

Note, The appraiser may report any other relevant information regarding the sale type,

including whether more than one sale type applies, elsewhere in the appraisal report.

 

Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO Consultant

CTAC LEED Certification

The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*

1910 East Mariposa Avenue, Suite 115
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 Cell

WebSite: http://www.harriscompanyrec.com

Resume: http://www.harriscompanyrec.com/CURRICULUMVITAENAME2011a.pdf

Commercial Appraiser Blog: http://harriscompanyrec.com/blog/

 

We Make a Simple Pledge to

Communicate, in a timely Fashion, each appraisal, analysis, and opinion without bias or partiality

Abstain from behavior that is deleterious to our clients, the appraisal profession, and the public

Hold paramount the confidential nature of the appraiser/consultant - client relationship

and

Comply with the requirements of the Uniform Standards of Professional Appraisal Practice and the
Code of Professional Ethics of the National Society of Real Estate Appraisers

 

IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership http://www.orea.ca.gov/html/fed_regs.shtml#Statement7 Membership in an appraisal organization: A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization, including the appraisal institute.

 

CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal

 

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September 02, 2011

IV. FREQUENTLY COMMITTED SINS (by MAI-Appraisal Institute- AI appraisers) IN VALUING CONSERVATION EASEMENTS

IV. FREQUENTLY COMMITTED SINS IN VALUING IV. FREQUENTLY COMMITTED SINS (by MAI-Appraisal Institute- AI appraisers)

CONSERVATION EASEMENTS

Below is a short list of

some common problems found in limited scope reviews of more than 80 purported “qualified

appraisals” of conservation easements at the end of 2003.

Many, while not fatal, highlight appraisers’ lack of familiarity with the Treasury Regulations;

these are easy to correct. Others are considered to be more serious technical flaws. These "sins"

can be informative when completing or reviewing easement appraisals.

1. Serious Technical Issues

A. Appraising the wrong property. Care should be taken that the appraisal's legal description

reflects the area covered by the easement. In addition, there are instances in which the

appraiser does not value all of the donor’s and their family’s property before and after

imposition of the easement (thus it doesn't reflect "enhancement" value as described

above).

B. Relying entirely on the Subdivision Development Analysis technique (which bases the

easement's "before" value on revenues generated by the development of the property). In

order to be valid, the subdivision development plan must be a permitted use according to

local zoning codes, must be technically feasible, and must be a likely form of

development given the local market. Many Subdivision Development Analyses are

frequently supported by:

inadequate land use plan without engineering input and lacking substantiated

development costs.

poorly supported forecasts of lot sale prices,

poorly supported lot absorption forecasts,

poorly supported discount rates,

inadequate profit allocation

C. Appraisals of second- or third-phase easements where the impact of the earlier easements

was improperly accounted for. This is one of the common problems associated with the

phasing of easements (placing an easement on only a portion of the property, with the

intention of doing additional easements in the coming years).

D. Ignoring or omitting existing zoning or property restrictions, such as covenants, deed

restrictions, rights-of-way, or other pre-existing limitations on use of the property.

A Conservation Easement Appraisal Guide Page 34

2. Lack of Familiarity with the Treasury Regulations

A. Using the wrong definition of market value

B. Failure to state that the appraisal was prepared for the income tax purposes of the donor

C. Easements with effective dates beyond the 60-day shelf life of their appraisal's effective

dates of value

3. Other More Serious Issues Not Directly Related to Appraisals

A. Appraisals of conservation easements without evident conservation purpose. Easements

without obvious conservation values and purpose risk not qualifying under Internal

Revenue Code 170(h) and as such, risk not qualifying for Colorado's state income tax

credit.

B. Clever division of family-owned lands intended to maximize donors’ tax credits and to

avoid the issue of "enhancement" values. The phasing of easements is not uncommon and

should only be considered by a land trust if each phased easement can stand alone on

conservation values and purpose. However, it is not acceptable to shelter properties

through various names or other methods in order to skirt the constraints of the tax credit

rules or to avoid the enhancement value.

 

IV. FREQUENTLY COMMITTED SINS (by MAI-Appraisal Institute- AI appraisers)

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August 30, 2011

John S Brenan, Appraisal FOundation

From: Curits Harris [mailto:harris_curtis@sbcglobal.net]
Sent: Tuesday, August 30, 2011 1:27 PM
To: 'wsj.ltrs@wsj.com'
Subject: Editor: Appraisal Foundation Letter of August 17, 2011

 

Editor,

RE: John S. Brenan https://appraisalfoundation.sharefile.com/d/sd41485a674242298
Director of Appraisal Issues

 

Your article was on the mark!  These folks at the Appraisal Foundation/Appraisal Institute are totally lost.   Please see the following statement by Sara  http://financialservices.house.gov/UploadedFiles/071311stephens.pdf  President of the Appraisal Institute.  She is arguing against a PROPOSED federal law that would outlaw the use of Non-armslength sales transactions, when appraising market value.   Also, it was reported that Four States have already banned this process.   I have been in the Real Estate Business since 1984 and never used a non-armslength sale as comparable to a Market Transaction, all one has to do is read the Definition of Market Value. 

 

1 Interagency Appraisal and Evaluation Guidelines, December 10, 2010

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

(1) buyer and seller are typically motivated;

(2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest;

(3) a reasonable time is allowed for exposure in the open market;

(4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

(5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

 

REO's, Probate Sales, Gifts, and other Distressed Property Sales do not come close to meeting this definition.  Maybe one could, although I would not, argue that no (4) payment in cash, is acceptable.   Besides where are his citations?  I have never read in any publication that this was an acceptable practice.  In other words, they are making this stuff as they go along.

 

He, Brenan, speaks of a bifurcated market, duh!, what he calls bifurcated is actually two markets, one fair and the other distressed.  Just as you would never use a Fair Sale to value a distressed property (i.e. for salvage value) you should never use a distressed sale for a fair market sale. 

 

One last comment,  Of course distressed sales affect the fair sale market but to use distressed sales as comparable further extirpates the problem, forcing a downward arithmetic move to a geometric one.  PLEASE KEEP UP THE GOOD WORK, THE REAL ESTATE MARKET HAS BEEN SEVERELY NEGATIVELY IMPACTED BY THE APPRAISAL FOUNDATION/APPRAISAL INSTITUTE.

 

P.S

If you wish to discuss this issue any further my contact information is below.

 

Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO Consultant

CTAC LEED Certification


The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*

1910 East Mariposa Avenue, Suite 115
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 Cell

WebSite: http://www.harriscompanyrec.com

Resume: http://www.harriscompanyrec.com/CURRICULUMVITAENAME2011a.pdf

Commercial Appraiser Blog: http://harriscompanyrec.com/blog/

A WORD OF CAUTION: When selecting an Appraiser, Consultant, or Expert please pay close attention to his Resume/CV

IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership http://www.orea.ca.gov/html/fed_regs.shtml#Statement7 Membership in an appraisal organization: A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization, including the appraisal institute.

CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal

 

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August 29, 2011

HOW THE APPRAISAL BUSINESS WORKS, CHRIS WILLIAMS, gEORGE hARRISON

Now this person George harrison attacks me re"

How the Appraisal Institute - mai - Destroyed the Real Estate Industry

Curtis D. Harris, BS, CGREA, REB • "How the Appraisal Institute-MAI Destroyed the Real Estate Industry."

All,
We are currently working on a book titled "How the Appraisal Institute-MAI Destroyed the Real Estate Industry." The book will discuss both Debacles I, which occurred in the 90's and affected mainly Commercial Properties that were only appraised by MAI-Appraisal Institute Members. And, Debacle II which occurred shortly after the MAI-SRA-Appraisal Institute entry into the Residential Appraiser Market. We are investigating their involvement with Tax Frauds in the Land Trust Tax Credit Program. Fraud and the overvaluation of real estate to close Real Estate Transactions and Mortgages. The fact that they were suspended and kicked out of the Appraisal Foundation, for their involvement in activities contrary to the Foundations Doctrine. Their, MAI-Appraisal Institute, present promulgation that appraisers should use non-arm's length sales transactions as comparables, contrary to logic, public policy, and law. The Fraud around their advertising that they are the best in the field, a real estate field, when very few of them have degrees in Real Estate. Their affiliation with Financial Institutions. Not to mention their latest report to congress which is full of lies and misrepresentations
http://financialservices.house.gov/UploadedFiles/071311stephens.pdf

The survival of the real estate industry depends on your assistance, the MAI-Appraisal Institute must go. If you can provide appraisals, information, or other documentation in support of, or rejecting, our premise please, please, contact me at the following email address. harris_curtis@sbcglobal.net

WE LOOK FORWARD TO YOUR COMMENTS AND A WRITTEN RESPONSE FROM sARA.

 

George HarrisonI think that Curtis is misguided, but if he should go through with the book he should take Paul's advice. Some of what is said is inaccurate. The SRAs were always residential appraisers, and while you can blame some AI members for the '80s debacle, this last round was mostly licensed/certified unaffiliated appraisers. I really hate to see such animus toward the AI at a time when it has spent so much of its resources reprsenting appraisers at state and national level. No, I'm not a member, and I have a lot of genuine complaints, but today I find myself (and every informed appraiser) to be aligned with, and supportive of, the AI.

1 hour ago

 I RESPOND:

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August 27, 2011

How the Appraisal Institute Destroyed the Real Estate Industry

How the Appraisal Institute Destroyed the Real Estate Industry

Curtis D. Harris, BS, CGREA, REB • "How the Appraisal Institute-MAI Destroyed the Real Estate Industry."

All,
We are currently working on a book titled "How the Appraisal Institute-MAI Destroyed the Real Estate Industry." The book will discuss both Debacles I, which occurred in the 90's and affected mainly Commercial Properties that were only appraised by MAI-Appraisal Institute Members. And, Debacle II which occurred shortly after the MAI-SRA-Appraisal Institute entry into the Residential Appraiser Market. We are investigating their involvement with Tax Frauds in the Land Trust Tax Credit Program. Fraud and the overvaluation of real estate to close Real Estate Transactions and Mortgages. The fact that they were suspended and kicked out of the Appraisal Foundation, for their involvement in activities contrary to the Foundations Doctrine. Their, MAI-Appraisal Institute, present promulgation that appraisers should use non-arm's length sales transactions as comparables, contrary to logic, public policy, and law. The Fraud around their advertising that they are the best in the field, a real estate field, when very few of them have degrees in Real Estate. Their affiliation with Financial Institutions. Not to mention their latest report to congress which is full of lies and misrepresentations http://financialservices.house.gov/UploadedFiles/071311stephens.pdf

The survival of the real estate industry depends on your assistance, the MAI-Appraisal Institute must go. If you can provide appraisals, information, or other documentation in support of, or rejecting, our premise please, please, contact me at the following email address. harris_curtis@sbcglobal.net

WE LOOK FORWARD TO YOUR COMMENTS AND A WRITTEN RESPONSE FROM sARA.

John O'Dwyer, MAI, MRICSThis comment is most likely not going yo last long as a post, but his dude Harris is a loose canon. His mind is a jumble and his opinions are most definitely extreme. As far as I know, but I can not be 100% certain, he has been ousted from other discussion groups. My advice is just don't play along!

 

Curtis D. Harris, BS, CGREA, REBHi John, didn't realize you were still in business. For all of you who do not know john, he is one of those frauds, mai, from the appraisal institute, posing as a real estate appraiser, He spends his free time following me all over the web.

This comes from his website, "JSO Valuation Group, Ltd. was founded in 1989 by John O’Dwyer, President. John has nearly 25-years of professional real estate experience (where is your resume john, still afraid to produce it. you work for a valuation group for 25 years? now where is your Real Estate Experience) He is a graduate from the University of Dublin, ( Yes folks that is Dublin Ireland, that tiny little brokeass-bankrupt island over there across the pond.) Trinity College 1984, majoring in real estate finance, town planning and economics ( We searched their website and could not find an offering for a real estate degree.) His experience began working as a senior appraiser in New York (1984-1987) and then as a senior loan appraiser in Chicago (1987-1989) (Now come on you disgusting fraud you graduated one day and the next you were a senior appraiser in New York, it must have been for a MAI Firm.) In 1989, John started his own appraisal company, JSO Valuation Group, Ltd. (Pretty good with at most 5 years of appraisal practice.)"

To cut to the chase john o’dwyer is a perfect example of what the appraisal institute - mai represents. A cluster of incopentent frauds. Rest assured he will be in the first chapter if not on the first page.

LIT john

 

John O'Dwyer, MAI, MRICSRest my case..... there is nothing more to say!

 

 

Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO Consultant

CTAC LEED Certification


The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*

1910 East Mariposa Avenue, Suite 115
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 Cell

WebSite: http://www.harriscompanyrec.com

Resume: http://www.harriscompanyrec.com/CURRICULUMVITAENAME2011a.pdf

Commercial Appraiser Blog: http://harriscompanyrec.com/blog/

A WORD OF CAUTION: When selecting an Appraiser, Consultant, or Expert please pay close attention to his Resume/CV

IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership http://www.orea.ca.gov/html/fed_regs.shtml#Statement7 Membership in an appraisal organization: A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization, including the appraisal institute.

CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal

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August 25, 2011

Ann O'Rourke, AI, Appraisal Institute, MAI, Promoutes Colusion between Appraisers and Agents

Ann O'Rourke, AI, Appraisal Institute, MAI, Promoutes Colusion between Appraisers and Agents 

10 Strategies For Improving Your Chances of Getting a Fair Appraisal

Here's a quote:

"2. Supply all potentially relevant data. "Basically, you can provide almost anything that you can think of that is going to support the value of the house," Mitchell said. This can include information on the market and absorptions as well as property specifications, home plans, and product details for the home or project in question.  You may also want to give the appraiser copies of recent HUD-1 statements if they aren't in the land records yet or examples of recently executed contracts. Allen W. Gardiner, who provided the appraiser perspective on the NAHB/Builder Partnerships webinar, agreed. "One of the biggest mistakes I find is that builders hide data," said Gardiner, who is vice president of residential at Jackson Claborn, a Plano, Texas-based real estate consulting and appraisal firm. "I would encourage you to provide all relevant data. If it was a low sale, let [the appraiser] know and explain how it is different from the others."

My comment: this article was written for home builders but I have been telling sales people about some of this for many years. It is particularly useful today when many appraisals are done through AMCs with low fees, fast turnaround, and out of the area appraisers. When an agent tells me that she "Doesn't want to do the appraisers job", I say "the appraiser gets $350 and you get how much if your deal closes"? (Ann O'Rourke)


click here to read
http://www.builderonline.com/business/10-strategies-for-improving-your-chances-of-getting-a-fair-appraisal.aspx

------------------------------------------------

How to Prevent a Low Appraisal - 9 tips

Here's a quote:

"5. Notes. Go through each individual comparable listing and write notes that compare it to the subject property. For instance, on my most recent appraisal, the specific property had a significant amount of upgraded features. So on each comparable I went through and wrote things like, "Paints need updating, subj. prop. is move in ready," "subj. prop. has upgraded kitchen or bathroom, this does not," or things like "subj. prop. has new, laminate flooring throughout the house, this comp has carpet throughout." Dates of installs, quality of material, etc. Write whatever you can."

"7. Give the appraiser what they ask for: If the appraiser asks for the RPA (Residential Purchase Agreement), send it to them. Don't forget. If they ask for the permits, get the permits and give the permits to the appraiser. I was recently asked for an RPA at an appraisal. Since I use DropBox on my iPhone and iPad, I immediately emailed the documents to the appraiser and he had them before the appraisal was over."

My comments: I always do this when meeting an agent for a relocation appraisal. Then I confirm with the listing agent on the sale. I like to call the listing agent to find out the "story" behind the sale. Whenever I give a presentation to real estate agents I always include tips on how to work with the appraiser. (Ann O'Rourke)

click here to read more
http://kevinpaffrath.com/how-to-prevent-a-low-appraisal


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August 23, 2011

rE How the Appraisal Institute - mai Destroid the Real Estate Industry

From: Michael J. Martin [mailto:mjmartin@martinpropertyresearch.com]
Sent: Tuesday, August 23, 2011 7:16 PM
To: harris_curtis@sbcglobal.net
Subject: re: after the horse is out

rE How the Appraisal Institute - mai Destroid the Real Estate Industry

of the barn............

 

after the horse is out of the barn, dumb ranchers shut the doors.............
    

  

Michael J. Martin, CFA, MAI

President
Martin Property Research, Inc.

1540 South Holly Street, Suite 4
Denver, CO 80222

Phone (303) 768-8366

Fax (303) 484-2421


 

  

Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO Consultant

CTAC LEED Certification


The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*

1910 East Mariposa Avenue, Suite 115
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 Cell

WebSite: http://www.harriscompanyrec.com

Resume: http://www.harriscompanyrec.com/CURRICULUMVITAENAME2011a.pdf

Commercial Appraiser Blog: http://harriscompanyrec.com/blog/

A WORD OF CAUTION: When selecting an Appraiser, Consultant, or Expert please pay close attention to his Resume/CV

IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership http://www.orea.ca.gov/html/fed_regs.shtml#Statement7 Membership in an appraisal organization: A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization, including the appraisal institute.

CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal

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I got my start, I remember that MAI was described to me as meaning "Made As Instructed" and

John FergusonThere are good and bad apples in any profession but being an appraiser I have seen a lot of bad appraisers both MAI and SRA. In the 80's, when I got my start, I remember that MAI was described to me as meaning "Made As Instructed" and most of the appraisers getting their ass chewed were the MAI appraisers. In California in the 90's we had our own crisis with Mello Roos Bonds and guess who did the bogus appraisals on those...yup MAI appraisers exclusivly. In the current crisis I know of some SRA appraisers that should be in prison for their part in approving fraudulent appraisals and getting in bed with the banks sales departments. On the AI itself I would like to know how it has helped us as a group, only a small percentage of appraisers belong to that organization. I think at one time they might have had some clout but how effective can an organization really be when they are almost broke? I agree with Bill on the book by Bethany Mclean and Joe it is awesome;-)                  http://www.linkedin.com/profile/view?id=24243343&authType=name&authToken=504a&trk=anet_mfeed_profile
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DIANE DiBERNARDO, Managing Director

DIANE DiBERNARDO, Managing Director

Diane DiBernardo brings an impressive spectrum of experience to the Argianas team with almost 20 years as a commercial real estate appraiser. Joining the Argianas team in 2010, Diane is responsible for training, reviewing and coordinating appraisal assignments for certain clients. She is an expert in ARGUS discounted cash flow software.

Diane's extensive experience includes the valuation of fee simple, leased fee and leasehold interests for a wide range of purposes including bank financing, internal asset management, estate planning, and litigation support. Her assignments have included all property types throughout the Midwest including existing and proposed single and multi-tenant office, retail, industrial and residential developments. Diane's familiarity with real estate income analysis is apparent in her appraisal work involving downtown office buildings, community retail centers, and entire residential subdivisions. Special purpose valuation and/or consulting assignments have included easements, billboard signage, self-storage facilities, barge terminals, hotels, golf courses, automotive service stations, and car washes. She is also familiar with the analysis of affordable and low-income housing with special financing and/or income tax credits.

On the road to obtaining the MAI designation, Diane has completed all three levels of appraisal experience which has been formally reviewed and accepted by the Appraisal Institute. She has successfully completed all the necessary coursework and the 16-hour comprehensive exam. With only the demonstration appraisal report remaining, Diane is expected to receive the coveted MAI designation in 2012.

Education
Diane earned her Bachelor Degree in Management from Northeastern Illinois University. She continues her education through various classes and seminars offered by the Appraisal Institute.

Professional Affiliations
Diane is an Associate Member of the Appraisal Institute and a Certified General Real Estate Appraiser in the State of Illinois.

 

NOW THIS IS HOW UNEDUCATED THESE FOLKS ARE: Diane DiBernardo • "Why would you post this nonsense on the Appraisal Institute's group page? I don't have time to repute every point, but how long do you think a degree in Real Estate has been available? You're showing your age, kid."  SHE ACTS LIKE A DEGREE IN REAL ESTATE IS SOMETHING NEW, I GOT MY DEGREE IN 1979 FROM CSULA, AND STARTED THE PROGRAM IN 1975.  SHE GOT A DEGREE IN MANAGEMENT AND PROFESS TO BE AN APPRAISER. 

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August 21, 2011

Sara W. Stephens mai, Appraisal Institute

Sara W. Stephens mai

SaraStephens_150x150.jpg

2011/2012 President, Appraisal Institute

"Stephens graduated magna cum laude from the University of Arkansas at Little Rock with a degree in mathematics and English. She has a master’s degree from the University of Arkansas at Fayetteville, where she also completed some post-graduate work. She taught calculus, advanced trigonometry and algebra in the Little Rock Public School District and at the University of Arkansas at Little Rock.

She is the owner and principal of Richard A. Stephens and Associates, the oldest appraisal firm in Little Rock. Along with her business partner and husband, Richard A. Stephens, MAI, SRA,(NEPITISUM) she maintains a practice offering a broad scope of services, specializing in eminent domain, litigation support and real estate tax appeal.

Stephens is one of eight members of the American Society of Real Estate Counselors in Arkansas, and the only woman invited to membership in Arkansas."

lET'S TAKE A CLOSER LOOK AT HER BACKGROUND, PLEASE.  SHE REPRESENTS "25,000" REAL ESTATE APPRAISERS WITH THIS BACKGROUND you gotta be kidding me.  SHE LIKE ALL THE REST ARE A BUNCH OF FRAUDS AND CROOKS!  BEWARE of the MAI-APPRAISAL INSTITUTE.

 

Sara W. Stephens mai, Appraisal Institute

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August 20, 2011

Is it any wonder? Look at her resume. Sara W. Stephens, MAI-Appraisal Institute

Is it any wonder?  Look at her resume. MAI-Appraisal Institute

 


Member_Image
  
Sara W. Stephens, MAI
Richard A. Stephens & Assoc., Inc.
President
Regions Center
400 West Capitol, Suite 1222
Little Rock, AR 72201
(501) 372-7513
Fax: (501) 372-7535
Cell: (501) 944-6744
swstephens@prodigy.net
Standards & Ethics Education Completed
Accepts Fee Assignments (more info)




Primary Market Area
State of Arkansas with ephasis on the Little Rock/North Little Rock MSA, particularly Pulaski, Perry, Lonoke, White, Faulkner and Jefferson Counties

Secondary Market Area
Northeast, Northwest, Southeast and Southwest Arkansas
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I have been asked, by Realtors and Realist, in the past what can we do? SUPPORT PASSAGE OF THIS BILL AND GET RID OF THE APPRAISAL INSTITUTE-MAI.

I have been asked, by Realtors and Realist, in the past what can we do?  SUPPORT PASSAGE OF THIS BILL AND GET RID OF THE APPRAISAL INSTITUTE-MAI.

 

(2) REALISTIC MARKET BASED APPRAISALS-

 

        (A) VALUATION STANDARD- The appropriate Federal banking agency shall require that entities used by financial institutions to assess the value of collateral, with respect to a real estate loan, associated with any viable project in such institution's lending portfolio utilize an as completed valuation to make such an assessment.

 

        (B) ARMS LENGTH TRANSACTIONS- The appropriate Federal banking agency shall require that entities used by financial institutions to assess or review underwriting standards and collateral values for real estate loans made by such institutions after the date of the enactment of this Act use comparable sales involving arms length transactions to make such an assessment or review.
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Wanna know Why you cannot get a SALE TO CLOSE? From the Mouth of the Appraisal Institute-President

Wanna know Why you cannot get a SALE TO CLOSE?  From the Mouth of the Appraisal Institute-President

Wanna know Why you cannot get a SALE TO CLOSE? From the Mouth of the Appraisal Institute-President

http://thomas.loc.gov/cgi-bin/query/z?c112:H.R.1755.IH:

C. Appraisers should be allowed to analyze all sales in a market, and their judgment and expertise

should be respected

In 2011, four bills were introduced in state legislatures (Illinois, Maryland, Missouri, and Nevada), and one bill was

introduced in Congress and referred to this Committee, to inappropriately legislate the appraisal process. Each

proposal would prohibit the use of distressed sales, such as foreclosure sales or short sales, as comparables in

an appraisal of a parcel of real property. While we sympathize with the plight of those in today’s real estate

market, we strongly oppose such bills, for they will only contribute to an asset bubble and place lenders at great

risk.

It seems reasonable to assume that distressed sales should not form the basis for market value opinions. But, in

some markets, they are such heavy weights on value that they must be considered along with appropriate

adjustments. Distressed sales such as foreclosure sales and short sales are common in a declining market.

Depending on the severity of the local market downturn, some, many, or even all sales that occur do so under

distressed conditions. Appraisers cannot categorically discount foreclosures and short sales as potential

comparable data in the sales comparison approach. However, due to differences between their conditions of sale

and the conditions outlined in the market value definition they might not be usable as market information.

Foreclosures and short sales usually do not meet the conditions outlined in the definition of market value. A short

sale or a sale of a property that occurred prior to a foreclosure might have involved atypical seller motivations

(e.g., a highly motivated seller). A sale of a bank-owned property might have involved typical motivations, so the

fact that it was a foreclosed property would not render it ineligible as meaningful comparable data that should be

considered in developing a credible appraisal. However, if the foreclosed property was sold without a typical

marketing program, or if it had become stigmatized as a foreclosure, it might need to be adjusted if used as

comparable evidence of value. Further, some foreclosed properties are in inferior condition, so adjustments for

physical condition may be needed.

As is always the case in selecting sales to use as comparable market information, appraisers must investigate the

circumstances of each transaction, including whether atypical motivations or sales concessions were involved,

the property was exposed on the market for a typical amount of time, the marketing program was typical, or

whether the property condition was compromised. Adjustments might need to be made for these circumstances.

When it is necessary to use a distressed sale as evidence of value, the appraiser must carefully analyze the

Testimony of Appraisal Institute President-Elect Sara Stephens, MAI, CRE

July 13, 2011

current local market to determine if an adjustment for conditions of sale is needed. If no adjustment is warranted,

the lack of adjustment should be explained.

Physical condition and conditions of sale are two distinctly different factors that must be considered separately.

They may be related to some degree in a distressed market, but not necessarily. An appraiser must not assume,

for example, that a property was in inferior condition simply because it was a foreclosure. The level of

investigation needed to meet the requirement for sufficient diligence is generally more than is needed in nondistressed

market situations. Further, supporting such adjustments can be particularly challenging when there are

few current transactions to analyze. Competency in performing such investigation and analysis is essential, which

is why we believe the best and most productive way to alleviate concerns about appraisals in complex markets is

to ensure that highly qualified appraisers– particularly those with advanced training, peer review, and competency

exams – are used by lenders and their agents.

Further, under federal and state law, appraisers are required to follow the Uniform Standards of Professional

Appraisal Practice (USPAP). USPAP Standards Rule 1-4(a) requires that appraisers "must analyze such

comparable sales data as are available." This means all sales, including foreclosures and short sales. In some

markets, there are so many distressed sales that they are the market and must be considered. When there is a

glut of distress sales in the marketplace, and those properties are truly comparable to the subject, it would be

misleading not to use them as part (or in some cases all) of the basis for a value conclusion.

USPAP further states that, "When compliance with USPAP is required by Federal law or regulation, no part of

USPAP can be voided by a law or regulation of a state or local jurisdiction."

As such, we urge that this Committee refrain from legislating the appraisal process and refrain from advancing the

appraisal provisions of H.R. 1755, as introduced.

Thanks!
Curtis D. Harris, BS, CGREA, REB
Bachelor of Science in Real Estate, CSULA
State Certified General Appraiser
Real Estate Broker
ASTM E-2018 Commercial Real Estate Inspector
HUD 203k Consultant
HUD/FHA Real Estate Appraiser/Reviewer
FannieMae REO Consultant

CTAC LEED Certification

The Harris Company, Forensic Appraisers and Real Estate Consultants
*PIRS/Harris Company and the Science of Real Estate-Partners*

1910 East Mariposa Avenue, Suite 115
El Segundo, CA. 90245
310-337-1973 Office
310-251-3959 Cell

WebSite: http://www.harriscompanyrec.com

Resume:

http://www.harriscompanyrec.com/CURRICULUMVITAENAME2011a.pdf

Commercial Appraiser Blog:http://harriscompanyrec.com/blog/

A WORD OF CAUTION: When selecting an Appraiser, Consultant, or Expert please pay close attention to his Resume/CV

IT'S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional Association Membership http://www.orea.ca.gov/html/fed_regs.shtml#Statement7 Membership in an appraisal organization: A State Certified General Appraiser may not be excluded from consideration for an assignment for a federally related transaction by virtue of membership or lack of membership in any particular appraisal organization, including the appraisal institute.

 

CONFIDENTIALITY/PRIVILEGE NOTICE: This transmission and any attachments are intended solely for the addressee. The information contained in this transmission is confidential in nature and protected from further use or disclosure under U.S. Pub. L. 106-102, 113 U.S. Stat. 1338 (1999), and may be subject to consultant/appraiser-client or other legal privilege. Your use or disclosure of this information for any purpose other than that intended by its transmittal is strictly prohibited and may subject you to fines and/or penalties under federal and state law. If you are not the intended recipient of this transmission, please destroy all copies received and confirm destruction to the sender via return transmittal

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August 13, 2011

Tim Bradley, mai, member of the appraisal institute, Jackson Hole Commercial Real Estate , Lier and Crook

Tim Bradley, mai, member of the appraisal institute, Jackson Hole Commercial Real Estate Lier and Crook

"In a sign of the times, the building was recently posted for foreclosure. The owners listed the building for $6,975,000 early this year, and the price has now dropped to $5,400,000." http://activerain.com/blogsview/1360304/jackson-hole-15-e-deloney-jackson-drug-building

 

"Thanks all for stopping by! Here's an update...the building ultimately sold for $4,500,000!

Lynn: I know. I used to live just a few blocks from the old theater on Greenville Avenue. Loved that neighborhood."

 

 

 

 

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August 02, 2011

Appraisal Institute President calls for Collaboration between Real Estate Agents and Appraisers

THE ENTIRE INDUSTRY IS CALLING FOR APPRAISER INDEPENDENCE.  NOT THE APPRAISAL INSTITUTE. 

 

"As such, there must be an increased emphasis on collaboration and data sharing between builders, loan originators, lenders, real estate agents, appraisers and all other parties involved in residential real estate transactions. " http://www.scotsmanguide.com/default.asp?ID=4699&part=1 

BY:

 

 

geovisit();<img src="http://visit.webhosting.yahoo.com/visit.gif?us1305930940" alt="setstats" border="0" width="1" height="1">
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April 13, 2011

Entire Deduction Disallowed Due to Numerous Appraisal Failures

Entire Deduction Disallowed Due to Numerous Appraisal Failures

In Boltar v. Commissioner 136 T.C. No. 14 (2011) the Court excluded the developer partnership’s experts’ appraisal as unreliable and irrelevant. The Court sustained the IRS allowance of only $42,400 out of $3,245,000 claimed as a charitable contribution deduction on the partnership return of Boltar, L.L.C. (Boltar) for a conservation easement on 8 land-locked acres in Indiana. Boltar’s experts failed to apply the correct legal standard by failing to determine the value of the donated easement by the before and after valuation method, failed to value contiguous parcels owned by a partnership, and assumed development that was not feasible on the subject property. The Court specifically stated that the appraiser qualifications were not in question. What motivated the Court to reject Boltar’s appraisals was the multiple failures and abuses in the appraisal methodology as well as significant factual errors affecting value. The Court stated, “The problem is created by their willingness to use their resumes and their skills to advocate the position of the party who employs them without regard to objective and relevant facts, contrary to their professional obligations.” And later, “…we need not blindly admit absurd expert opinions.” And finally, ” In addition, the cottage industry of experts who function primarily in the market for tax benefits should be discouraged.” At least from the context of the decision, the Court appears to be directing the last comment at those who enable abusive appraisals and tax schemes. Learn more by visiting http://taxtrials.com/, then click on Boltar. Note that this site has many tax opinions available.


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July 26, 2010

The Appraisal Institute shall be suspended as an Appraisal Sponsor effective September 15,

1155 15th Street, NW, Suite 1111
Washington, DC 20005
T 202.347.7722
F 202.347.7727
STATEMENT TO
THE SPONSORING ORGANIZATIONS OF
THE APPRAISAL FOUNDATION
The Board of Trustees of The Appraisal Foundation met in open session on Tuesday, June 15, 2010 to hear allegations that the Appraisal Institute had engaged in conduct detrimental to the interests of The Appraisal Foundation. The Board then went into Executive Session to deliberate the matter and subsequently recessed the meeting prior to the completion of its agenda. The Board reconvened on Monday, July 12, 2010 to
complete its work and we want to advise you of the actions taken by the Board of Trustees.
The following resolutions of the Board of Trustees were adopted by the required two-thirds majority as set forth in the Foundation Bylaws:

RESOLUTION #1
RESOLVED, that upon consideration of the information and materials presented to the Board of Trustees with respect to the conduct of the Appraisal Institute related to an amendment to Title XI, namely, “to maintain the independence of the Appraisal Standards and Appraiser Qualifications Boards and to avoid potential conflicts of interest, the Appraisal Foundation shall not directly or indirectly offer or sponsor any qualifying or continuing education courses for certified or licensed real estate appraisers beyond the National Uniform Standards of Professional Appraisal Practice course specifically required for licensure and certification” The Board of Trustees has concluded that the Appraisal Institute engaged in conduct materially and seriously prejudicial to the purposes and interests of the Foundation;

RESOLUTION #2
RESOLVED, that as a result of engaging in such conduct, the Appraisal Institute shall be sanctioned as follows:

1) The Appraisal Institute shall be suspended as an Appraisal Sponsor effective September 15, 2010 and ending on April 15, 2011;

2) Permission by The Appraisal Foundation to the Appraisal Institute to reproduce the Uniform Standards of Professional Appraisal Practice (USPAP) without charge and (b) its discount on the purchase price of USPAP shall be revoked for a period commencing September 15, 2010 and ending on July 1, 2012;

Statement to The Sponsoring Organizations

Page Two

RESOLUTION #3
RESOLVED, The Chair of The Appraisal Foundation shall promptly appoint a task force comprised of not less than three nor more than five members from the Board of Trustees to liaison with the Appraisal Institute during the period of suspension, or for such longer period as the Chair may determine, for the purpose of rehabilitating the relationship of the Appraisal Institute with The Appraisal Foundation as an Appraisal Sponsor.

The bylaws of The Appraisal Foundation outline a process for Sponsors who are about to be expelled or suspended from the Foundation to address the Board of Trustees. Section 5.04 (c) (ii) states:

“The Sponsor shall be given an opportunity to be heard (either orally or in
writing at the election of the Sponsor) not fewer than ten (10) days prior to the
effective date of any proposed suspension or expulsion. If requested by a
Sponsor, a hearing shall be held by the Board of Trustees to determine whether
the suspension or expulsion should take place. If a written statement is
submitted by the Sponsor, such written statement shall be considered by the
Board of Trustees prior to determining whether the suspension or expulsion
should take place.”

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June 25, 2010

Swing LOW sweet TIMOTHY (LOWE,) MAI, appraisal institute

Posted by cochise on June 25, 2010 at 19:12:09:  http://www.hwforums.com/2191/messages/746.html

Swing LOW sweet TIMOTHY (LOWE,) MAI, appraisal institute

"TIMOTHY LOWE, MAI, CRE, FRICS
WARONZOF ASSOCIATES, INC.
Principal
timothy lowe
As Principal with Waronzof, Mr. Lowe is responsible for
directing real estate consulting and valuation engagements
including strategy and best practice analyses, market and
highest & best use studies, market value and fair compensation
appraisals; acquisition due diligence; economic feasibility
analysis; and advanced financial analyses for large-scale project
development. Mr. Lowe’s practice includes emphasis in
litigation, investment analysis and counseling. His experience
includes appraisal and consulting engagements across the
continental United States, Alaska and Hawaii, Canada and
Argentina, and includes such notable properties and projects as
the West Edmonton Mall (Edmonton), South Coast Plaza
Shopping Center (Costa Mesa), AT&T Park (home to the San
Francisco Giants), Belmont Learning Center (Los Angeles), the
Kapolei City development in Hawaii, the Tren de la Costa
project in Buenos Aires, a 5 million acre natural resource
portfolio in Washington State, Ambassador College (Pasadena)
redevelopment, Two Wall Street (New York), Boeing Field
(Seattle), the Skywalker Ranch facility of director George Lucas
(San Francisco), the three million square foot Air Force Plant #19
(San Diego), the 40 mile long Peninsula Commute Rail Corridor
(San Francisco to San Jose), and the 4,000 acre Girdwood
Development & Disposal Plan project (Anchorage). Mr. Lowe is
a member of the Green Building Finance Consortium, an
industry group working to establish underwriting and valuation
guidelines for sustainable buildings.
Prior to founding Waronzof, Mr. Lowe was a Director in the Real
Estate Consulting and Litigation Practice with Deloitte & Touche
in Los Angeles, and earlier a Vice President and Chief Appraiser
with Arthur Gimmy International in San Francisco. He began
his career as an appraiser and consultant in Anchorage. Mr.
Lowe has been accepted as an expert witness in state and federal
courts in the areas of real estate and going concern valuation,
project feasibility and plan feasibility. Mr. Lowe is a designated
member of the Appraisal Institute (MAI), a member of The
Counselors of Real Estate (CRE) and a Fellow of the Royal
Institute of Chartered Surveyors (FRICS). Additionally Mr.
Lowe is an associate member of the Urban Land Institute and a
member of Lambda Alpha, the Land Economics Society."

I SEASE TO BE AMAIZED! HE DID ALL THIS, BUT WHERE ARE HIS QUALIFICATIONS? sWING lOW PLEASE COME CLEAN WHERE ARE YOUR QUALIFICATIONS?

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June 09, 2010

Announcement from USPAP, Uniform Standards of Professional Appraisal Practice

Announcement from USPAP, Uniform Standards of Professional Appraisal Practice
I would like to ask you to forward this invite for the USPAP group on LinkedIn to Appraisers and other users of Appraisal Services that you believe may benefit from being a member and may provide productive discussion.

Please FORWARD this invitation to others to become a part of the USPAP, Uniform Standards of Professional Appraisal Practice Group on LinkedIn. To find us on LinkedIn they can use this link http://www.linkedin.com/groupRegistration?gid=1873048

We now have 1,158 members now and growing. Our members include more AQB Certified USPAP Instructors than any group I am aware of, with the exception of The Appraisal Foundation itself. We also have multiple people in leadership from The Appraisal Foundation, the Appraisal Section of NAR, NAIFA, AI, ASA, FannieMae, Freddie Mac and numerous regulatory Appraisers and investigatory Appraisers, truly a unique mix. In addition to those there are many other Appraisers, lenders, AMC representatives, Appraisal school representatives and others with an interest in USPAP and what it is we do.

We welcome your participation and comments, so we might learn from you and share with you our collective knowledge and experiences.

Please take the next step and forward this invitation.

Regards,

Don

Donald J. Martin, SCRP, RAA, GAA, CDEI
Appraising Since 1977
Residential, Agricultural, Commercial & Industrial Appraisers
AQB Certified USPAP Instructor
Certified Distance Education Instructor
ERC Certified
FHA/HUD Certified
VA Fee Panel
IL Certified General Real Estate Appraiser Expires 09/30/11
IN Certified General Real Estate Appraiser Expires 06/30/12
WI Certified General Real Estate Appraiser Expires 12/14/11

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March 28, 2010

Pier Review of Office Appraisal by A. Brennon Chadwick, III, mai

Pier Review of Office Appraisal by A. Brennon Chadwick, III, mai

http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&gid=2103328&discussionID=16340384&goback=%2Eanh_2103328

We will be discussing the many errors in this appraisal. Please participate and show us how smart you are. I will be making numerious comments as we proceed. Thanks!

http://www.harriscompanyrec.com/files/02A_Jacksonville_Appraisal.pdf

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February 27, 2010

Wayne Foss, mai appraisal

Cochise007
Another good example of why the commercial appraisal business is so skrewed up http://www.hwforums.com/2191/messages/638.html Wayne Foss, mai appraisal

The Harris Company, REA/C, http://www.harriscompanyrec.com

 

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January 28, 2010

Sue the Appraisal Institute, MAI, SRA, SRPA

Sue the Appraisal Institute, MAI, SRA, SRPA, They make the following claims and typically produce a shody product, see: http://www.hwforums.com/2191/  They claim to have "the knowledge and experience to make sound 'real estate decisions.'"  Hell! they cannot even get the value right now they want you to think that they are qualified real estate consultants. Appraisers usually carry E&O insurance of up to Two Million Dollars, this may not seem like much but the Appraisal Institute has Deep Pockets, but you had better file early.  I feel the best way to get rid of these frauds is to sue them out of existence.  Please contact us for a free MAI, SRPA, SRA, appraiser review.

"Choose an Appraiser with the MAI, SRA or SRPA Designation

In today’s turbulent real estate market, you want a professional with the knowledge and experience to make sound real estate decisions. When you see the MAI, SRA or SRPA designation, you can rest assured you are making the right choice.

All Appraisal Institute members holding the MAI, SRA or SRPA designation are required to:

  • Complete rigorous education requirements, submit extensive specialized appraisal experience, demonstrate appraisal report writing abilities and potentially pass a comprehensive examination. All requirements to obtain the MAI, SRA or SRPA designations are significantly above the state and federal requirements.

  • Conduct his or her professional activities in accordance with the Appraisal Institute’s Code of Professional Ethics and are subject to a peer review process, which enforces the Code of Professional Ethics.

  • Adhere to strict continuing education requirements to ensure they are up-to-date with the evolving real estate field.

  • In addition, the Appraisal Institute’s MAI, SRA and SRPA designations have long been recognized by courts of law, government agencies, financial institutions and investors as marks of excellence in the field of real estate valuation and analysis. "
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January 08, 2010

MADE AS INSTRUCTED APPRAISAL BROUGHT TO YOU BY JOHN R PEXTON (mai, APPRAISAL INSTITUTE, ASSOCIATE)

MADE AS INSTRUCTED APPRAISAL BROUGHT TO YOU BY JOHN R PEXTON (mai, APPRAISAL INSTITUTE, ASSOCIATE) 

The asking price for the ranch at this time was $7.3 million. Court records go on to state that on Aug. 12, 2005, after it became clear the military was seeking an $8 million appropriation to purchase the ranch, Grommet had Newman write a letter to the guard stating that the new listing price was $7.7 million for the entire ranch.

Two appraisers - both certified appraisers in the State of Wyoming - were hired by the military to evaluate the ranch. Jim Hastings appraised the ranch at $7.5 million while John Pexton (mai, appraisal institute, associate) appraised the ranch at $7.95 million. http://www.pcrecordtimes.com/v2_news_articles.php?heading=0&page=72&story_id=1432

John R. Pexton (MAI, APPRAISAL INSTITUTE, ASSOCIATE)
Saddleback Appraisals
Owner
P.O. Box 30
107 North 6th Street
Douglas  WY  82633
(307) 358-4932
Accepts Fee Assignments (more info)

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November 15, 2009

Appraisal Adjustments, Curtis-Rosenthal, MAI, Appraisal Institute:

Appraisal Adjustments, Curtis-Rosenthal, MAI, Appraisal Institute: http://www.harriscompanyrec.com/files/Curtis_Rosenthal.pdf
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August 21, 2007

AI, Appraisal Institute, MAI, and Others Conspire to Influence public policy.

AI, Appraisal Institute, MAI, and Others Conspire to Influence public policy.

"This year we are proud to be joined by NAIFA because the more we can speak as a unified profession, the more success we will have in influencing public policy."


"Legislators and government officials will hear a unified voice from the real estate appraisal profession during 2007, thanks to an agreement signed by the four largest appraisal organizations in the United States.

http://www.thefreelibrary.com/Appraisers+on+same+page+in+Washington-a0161921774

Follow Ups:

 

Appraisers on same page in Washington.


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Link to this page
<a href="http://www.thefreelibrary.com/Appraisers+on+same+page+in+Washington-a0161921774">Appraisers on same page in Washington.</a>

Legislators and government officials will hear a unified voice from the real estate appraisal Real estate appraisal

An estimate of the value of property using various methods.
 profession during 2007, thanks to an agreement signed by the four largest appraisal organizations in the United States.

The Appraisal Institute, the American Society of Appraisers (ASA Asa (ā`sə), in the Bible, king of Judah, son and successor of Abijah. He was a good king, zealous in his extirpation of idols. When Baasha of Israel took Ramah (a few miles N of Jerusalem), Asa bought the help of Benhadad of Damascus and ), the American Society of Farm Managers and Rural Appraisers (ASFMRA), and the National Association of Independent Fee Appraisers (NAIFA NAIFA National Association of Insurance and Financial Advisors (formerly NALU)
NAIFA National Association of Independent Fee Appraisers
NAIFA Nevada Association of Insurance and Financial Advisors
) have signed an agreement that will enable the organizations to work cooperatively in the area of government relations.

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Under the agreement, the Washington, D.C. Office of the Appraisal Institute will be responsible for monitoring proposed real estate legislation and will keep members of all four organizations informed of relevant federal and state regulatory real estate issues.

"For the past few years, the Appraisal Institute has worked successfully with the ASA and ASFMRA in advocating for issues that are important to our members," said Don Kelly, the Appraisal Institute's chief external relations officer. "This year we are proud to be joined by NAIFA because the more we can speak as a unified profession, the more success we will have in influencing public policy."

The legislative issues and activities the appraisal organizations will pursue during 2007 include: Achieving appraisal licensing reform to ensure greater professionalism; Combating mortgage fraud by working with Congress and other organizations on solutions to the deficient regulatory structure for the appraisal and lending communities; Supporting appraiser independence as a consumer benefit; Promoting professional appraisers as a resource for a wide array of real estate concerns.

"The issues of mortgage fraud and predatory lending are likely to be near the top of the agenda for several Congressional committees," noted Bill Garber, director of Government Affairs for the Appraisal Institute. "It's important that the top real estate appraisal organizations speak with a unified voice to help enact change."

The Appraisal Institute represents more than 21,000 members worldwide. Members may hold the prestigious MAI MAI Mail (File Name Extension)
MAI Multilateral Agreement on Investment
MAI Maius (Latin: May)
MAI Ministerul Administratiei si Internelor (Romanian) 
, SRPA SRPA Senior Real Property Appraiser (Appraisal Institute)
SRPA Snake River Plain Aquifer
SRPA Sala de Recuperação Pós-anestésica
SRPA Special Registration Plate Account (license plate fund, North Carolina) 
 and SRA SrA
abbr.
senior airman
 designations. Appraisal Institute members adhere to a strictly enforced Code of Professional Ethics and Standards of Professional Appraisal Practice.

The American Society of Appraisers is an organization of appraisal professionals and others interested in the appraisal profession.

The American Society of Farm Managers and Rural Appraisers is a professionally trained group of farm managers, rural appraisers, review appraisers and accredited accredited

recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria.


accredited herds
cattle herds which have achieved a low level of reactors to, e.g.  agricultural consultants capable of providing expert guidance and assistance to farmland owners, farmers, and other groups which have caretaking responsibilities for farm lands and rural properties.

The National Association of Independent Fee Appraisers is a nonprofit professional association of real estate appraisers.

 agricultural consultants capable of providing expert guidance and assistance to farmland owners, farmers, and other groups which have caretaking responsibilities for farm lands and rural properties. The National Association of Independent Fee Appraisers is a nonprofit professional association of real estate appraisers.
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August 20, 2007

Are predetermined Appraisal ADJUSTMENTS Legal/Ethical?

Are predetermined Appraisal ADJUSTMENTS Legal/Ethical?  Please see attached
Predetermined adjustments provided by
Curtis - Rosenthal, Inc. (MAI Appraiser Los
Angeles) LLC. an MAI Firm.  You be the judge and get back with us or call them for this
years update.  If your property was acquired by the Los Angeles World Airport (LAWA) you
had better read this!
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