The Harris Company, Residential Appraiser-Appraisal Blog, 310.337.1973, Southern California, harris_curtis@sbcglobal.net

All-

New Webinar on FHA Refinance Guidelines:

August 11, 2010 – Webinar: FHA Refinances. This FREE Webinar will help you better understand the FHA Refinance general guidelines. Presenters will discuss Streamline Refinances, Cash-Out, & Rate & Term Refinances. Basic calculations will be included in this training for anyone wanting to improve their knowledge of FHA refinances. An emphasis will be on the changes to the Streamline Refinance guidelines. Registrants will receive an email confirmation prior to the webinar with a web link, a toll-free dial-in number, & instructions for participating in the training. Registrants must have internet access. All times are mountain daylight time. Registration required, no fee. More info at: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=550&update=N

AND

Loss Mitigation Training comes to Newark, NJ:
August 24, 2010 – Newark, NJ. Loss Mitigation Training at the HUD Newark, Newark Jersey Field Office. This training for HUD approved Housing Counseling Agencies will include a presentation of the basic loss mitigation options available to FHA Borrowers including Special Forbearance, Loan Modification, Partial Claim loans, FHA HAMP, Pre-Foreclosure Sale and Deed in Lieu of Foreclosure. Registration required, no fee. More info at: http://www.hud.gov/offices/hsg/sfh/events/philosmit.cfm

AND

HUD Housing Counseling Compliance Training comes to Las Vegas, NV:
September 9, 2010 – Las Vegas, NV. HUD Housing Counseling Compliance Training. Learn about HUD housing counseling regulations & compliance requirements. Sponsored by HUD, Rural Community Assistance Corporation & CCCS of South Nevada. Registration required, no fee. Registration is limited to non-profit & government organizations. More info at: http://www.rcac.org/events.aspx?575

AND

NeighborWorks training for Housing Counselors comes to San Diego CA:
September 13-17, 2010 – San Diego, CA. NeighborWorks Center for Homeownership Education and Counseling/HUD Multi-Course Training for Housing Counselors. Registration required, Scholarships are only available to staff of HUD-approved housing counseling agencies. More info at: http://www.nw5.org/training/schol_event.php?event=322

_________________________________________________________________________________________

> Subject: SOME GOOD LAWYERING….
>
> You have to love this lawyer……..
>
> A New Orleans lawyer sought an FHA loan for a client who was seeking
> to rebuild his home in the wake of Hurricane Katrina. He was told the
> loan would be approved if he could prove satisfactory title to a
> parcel of property being offered as collateral. The title to the
> property dated back to 1803, which took the lawyer three months to
> track down. After sending the information to the FHA, he received the
following reply.
>
> (Actual reply from FHA):
>
> “Upon review of your letter adjoining your client’s loan application,
> we note that the request is supported by an Abstract of Title. While
> we compliment the able manner in which you have prepared and presented
> the application, we must point out that you have only cleared title to
> the proposed collateral property back to 1803. Before final approval
> can be accorded, it will be necessary to clear the title back to its
origin.”
>
> Annoyed, the lawyer responded as follows:
> (Actual response):
>
> “Your letter regarding title in Case No.189156 has been received. I
> note that you wish to have title extended further than the 206 years
> covered by the present application. I was unaware that any educated
> person in this country, particularly those working in the property
> area, would not know that Louisiana was purchased by the United States
> from France in 1803, the year of origin identified in our application.
> For the edification of uninformed FHA bureaucrats, the title to the
> land prior to U.S. ownership was obtained from France, which had
> acquired it by Right of Conquest from Spain . The land came into the
> possession of Spain by Right of Discovery made in the year 1492 by a
> sea captain named Christopher Columbus, who had been granted the
> privilege of seeking a new route to India by the Spanish monarch,
> Queen Isabella. The good Queen Isabella, being a pious woman and
> almost as careful about titles as the FHA, took the precaution of
> securing the blessing of the Pope before she sold her jewels to
> finance Columbus ‘s expedition. Now the Pope, as I’m sure you may
> know, is the emissary of Jesus Christ, the Son of God, and God, it is
> commonly accepted, created this world. Therefore, I believe it is safe
> to presume that God also made that part of the world called Louisiana.
> God, therefore, would be the owner of origin and His origins date back
> to before the beginning of time, the world as we know it, and the FHA. I
hope you find God’s original claim to be satisfactory. Now, may we have our
damn loan?”
>
>
> The loan was immediately approved.
>

All-

To read a special message from FHA Commissioner Stevens regarding quality underwriting, please click here: http://portal.hud.gov/portal/page/portal/ver-1/HUD/federal_housing_administration/docs/From_The_Desk_Of_July_2010.pdf

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July 2010 Past Issues | Printer-friendly version | Advertise

Order Forms | Title Wizard | Consumer Library | Department of Insurance

> Message from the President
A Message From the President, Jeff Brown
It is with pleasure and pride that I recently accepted the CLTA’s appointment as President for the coming year. I thank Roger Jewkes for his professionalism and leadership over the last year, and I thank Craig Page and all of his staff for their hard work and continuing support.

> CLTA News
CLTA Committee Openings
Are you interested in shaping the title industry’s future by serving on one of CLTA’s important committees? We currently have vacancies on the following committees…

> Sacramento Report
CLTA Works with Author of Copy Services Bill
Assembly Bill 1373 (Lieu) would have potentially prohibited title companies from providing grant deeds and other documents to consumers, lenders, and realtors. …

Superpriority Proposed for Postponed Property Taxes
Assembly Bill 1718 (Blumenfield) modifies the senior citizen property tax postponement program. The current program, which was suspended in February 2009 for budgetary reasons, gives …

Transfer on Death Deed Bill Awaits Budget
Assembly Bill 724 (DeVore) establishes a new procedure for transferring real estate upon the owner’s death – based on a new deed form for a property owner to complete. A Transfer on Death (TOD) deed would name …

> Industry News
Federal Insurance Office in Financial Reform Package
A new Federal Insurance Office (“FIO”) is created by the financial reform legislation within the Treasury Department. The main purpose of the FIO seems to be …

Federal Mortgage Lenders Cast Doubt on Future Solar Loan Programs
Fannie Mae and Freddie Mac issued letters stating that Property Assessed Clean Energy, or PACE, programs may violate the mortgage lenders’ rules because counties receive …

Appraisals and Financial Reform
The financial reform legislation allows regulators to issue regulations on the portability of appraisals from one lender to another and has provisions for regulating …

> Court Cases
Deeds
Luna v. Brownell (B212757)
A deed transferring property to the trustee of a trust is not void as between the grantor and grantee merely because the trust …

Trustee’s Sales
Mabry v. Superior Court (G042911)
The court answered, and provided thorough explanations for, a laundry list of questions regarding Civil Code Section 2923.5, which requires a lender to explore options for …

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CALIFORNIA LAND TITLE ASSOCIATION
PO BOX 13968, Sacramento, CA 95853 / 1215 K Street, Suite 1816, Sacramento, CA 95814
(p) 916-444-2647, (f) 916-444-2851, www.clta.org, mail@clta.org

Background

Second Exposure Draft of proposed changes to the 2012-13 edition of USPAP

The ASB’s goal for the 2012-2013 edition of USPAP is to review and revise as needed specific identified areas of USPAP. These include reporting requirements, report options and a review of STANDARDS 7 and 8, which are the development and reporting standards for the appraisal of personal property. The Board is also considering other revisions and additions that may be necessary to ensure clarity and relevance.

First Exposure Draft of proposed changes to the 2012-2013 edition of USPAP:

In January, the ASB issued the First Exposure Draft of proposed changes for the 2012-13 edition of the Uniform Standards of Professional Appraisal Practice and Request for Public Comment. That exposure draft introduced a proposed new rule, the COMMUNICATION RULE, which addressed an appraiser’s communication responsibilities. Broader than the reporting Standards, the draft included two distinct versions of the proposed new Rule with different positions.

All the written comments that were received on the First Exposure Draft are available for public viewing on The Appraisal Foundation’s website at www.appraisalfoundation.org. The ASB also heard oral remarks at public meetings in Las Vegas on February 5, 2010, and in San Diego on April 30, 2010.

The Board received numerous and widely divergent written comments concerning the proposed COMMUNICATION RULE, both as a concept and regarding the different options. Opinions varied on the question of allowing draft, interim or preliminary communications. There were challenges to whether the COMMUNICATION RULE was necessary. There were suggestions on alternative ways to approach the issue, and most importantly, there were numerous comments that relayed how these proposed changes may impact current practice.

Comments ranged from those that were very strongly opposed to any provision that would allow for draft reports, in any form, to those who believed that there should be an unrestricted allowance for drafts with no record keeping requirements for those drafts.

The comments the Board received also showed a considerable diversity of opinions among appraisers, users of appraisal services and other interested parties in what the terms “draft,” “interim” and “preliminary” mean. The most obvious related to the meaning of draft report. Second Exposure Draft of Changes for the 2012-13 USPAP 3

There were many comments that addressed drafts and what constituted a draft report. To some, a draft was submitted to the client for acceptance in the appraiser’s assumed final form. If the client approved, the appraiser removed “draft” from the report label and resubmitted it. In other cases, the draft was an excerpt from a report that was sent as an interim submission. The comments indicated that some clients require drafts, while others consider any report a draft until it has their acceptance.

The First Exposure Draft also included a proposed revision to the definition of report. That revised definition was proposed to eliminate the linkage with “completion of an assignment” and to eliminate the limitation on how a report is communicated (“written or oral”). These edits also elicited many comments.

One issue related to the definition of report that became apparent after the First Exposure Draft was a common lack of understanding of the current definition of assignment results. The current definition is very broad and includes any opinion developed specific to an assignment. Assignment results are not, per USPAP, just the final opinion, recommendation or conclusion that is the ultimate objective of the assignment. Yet there seems to be a common misconception that assignment results are only the final opinion.

The Board’s underlying concern is always public trust. Looking at the issue of draft reports while giving highest priority to public trust, the ASB believes that USPAP should address preliminary communication of opinions and conclusions in appraisal practice. The Board also believes that appraisers must be accountable for their work. This Second Exposure Draft includes changes that attempt to achieve both of these objectives.

Getting Pinched by Charles E Jack, MAI Appraisal Institute
[ Follow Ups ] [ Post Followup ] [ Appraisers Talk Back ]

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Posted by Cochise on July 13, 2010 at 15:11:23:

” One thing I don’t like is that the Clark County Assessor charges $2,500 for a snapshot in time of the Assessor’s Parcel Layer. So I buy the parcel layer like once every couple of years unless I can bill it directly to a consulting or litigation job I’m working on. ”

Charles E. Jack Appraisal & Consulting, Inc. MAI, Appraisal Institute

“Admitting high geek factor over here…

Here’s some examples of what I’ve done with ARC GIS 9.3. (See attached.)

However, I find ARC very easy to use with the exception of perhaps the highly detailed features. Great book is ESRI’s “Getting to know ARC GIS Desktop”. Between that book and trial and error, I taught myself. Very easy in my opinion. But for those who are not electronically inclined it can be challenging… The book includes a free full version trial that will work for like 3-6 months or something. Real good deal if you’re just screwing around wanting to test a few things out…

One thing I don’t like is that the Clark County Assessor charges $2,500 for a snapshot in time of the Assessor’s Parcel Layer. So I buy the parcel layer like once every couple of years unless I can bill it directly to a consulting or litigation job I’m working on.

Shape files are readily available from Clark County GISMO…

http://gisgate.co.clark.nv.us/gismo/gismo.htm

(See GIS Data and GIS Data Subscr1ptions)…

Full real time data subscr1ption is probably beyond the reach of most local appraisers. Something like $15K-$20K or so. Probably would be over-kill for small projects. You’d have to need and want to use GIS on every single assignment in a larger office before this would start making sense.

Sincerely,

Charlie

—————————————————————-

Charles E. Jack IV, MAI

President

Charles E. Jack Appraisal & Consulting, Inc.

8324 Antler Ridge Avenue

Las Vegas, NV 89149-4505

Phone: (702) 395-5962

Fax: (702) 656-0610

Cell: (702) 595-6484

http://www.charlesjack.com

mailto:cejack@appraiser.net

MSN Messenger: charlesjack@hotmail.com”

The following information was added to the message board:

——————————————————————————–

Name: Cochise
E-Mail: cochise@justice.com
Subject: Re: TAF REMOVES NOSE (ai) TO SPITE FACE
Body of Message:
July 16, 2010

Private and Confidential Message to Appraisal Institute Members

Dear Fellow Members:

In my June 18 letter, I informed you that The Appraisal Foundation’s Board of Trustees and the Appraisal Institute’s Board of Directors met in Chicago last month to hear from each organization’s leadership concerning disagreements and miscommunication between the two organizations. The misunderstanding centers around discussions that our Government Relations Committee had with other sponsors’ Washington representatives, in response to a request from a Congressman’s office, on the financial workout legislation. As promised, I’m writing to update you on the situation.

The Appraisal Foundation’s Board of Trustees decided this week, largely because of our Washington-based discussions with other sponsors, to (a) suspend the Appraisal Institute as a sponsoring organization for seven months, beginning September 15, 2010, and (b) revoke the discounts on the purchase price of, and permission to reproduce, the Uniform Standards of Professional Appraisal Practice, for the period September 15, 2010, to July 1, 2012.

In accordance with the Foundation’s Bylaws, the Appraisal Institute has the opportunity to request a follow-up hearing before the Board of Trustees to present reasons why the discipline should not occur. Should our Board choose to request such a follow-up hearing, the Foundation has pre-scheduled it for September 1, 2010.

Regardless of the Trustees’ recent decision or the outcome of the upcoming hearing, the Appraisal Institute will continue to provide dedicated service not only to our members, but to the profession and, most importantly, to the public interest.

The Board of Directors, as the Appraisal Institute’s policy-making body, will determine what, if any, further action the Appraisal Institute will take in response to the Foundation Board of Trustees’ decision. We should all be proud of our officers and Board of Directors for how they have managed this situation. They have performed their roles with the highest degree of integrity and professionalism, and I am proud to serve alongside these outstanding colleagues. In addition, I could not be more pleased with how our national staff has performed under the very able leadership of our CEO, Fred Grubbe. Their professionalism and dedication serve the association and our members well.

Please remember that this message is directed only to you as members of the Appraisal Institute and should be maintained as a private and confidential communication. Please do not distribute to non-members. I will continue to keep you updated as we move forward.

Best regards,

Leslie P. Sellers, MAI, SRA
President

National Mortgage News
Daily Briefing: July 16, 2010

JPMorgan Chase Driving a Harder Bargain in Mortgage Short Sales
JPMorgan Chase & Co. is taking a hard line with some borrowers who want to sell their homes for less than they owe on the mortgage and avoid foreclosure.

Last month the third-largest mortgage servicer began notifying certain borrowers in preapproval letters for the so-called short sales that they will remain on the hook for the amount of debt not covered by the proceeds.
More Info: http://www.nationalmortgagenews.com/nmn_features/jpmorgan-chase-1019792-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610

Residential Mortgage Revenue Plunges at B of A
Bank of America lost $1.5 billion on its residential mortgage business in the second quarter with credit charges remaining high and loan production barely rising from the first quarter.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_135/bank-of-america-1019791-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
Private-Label Securities Could Fix Jumbo Illiquidity
Credit shortages in parts of the market such as the jumbo sector are a strong argument for finding a way to make private-label securitizationeconomically viable again, a panelist told attendees at a securities conference in New York.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_135/private-label-securities-1019795-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
Home Sales: Banks Now Outselling Builders
In a further sign that the housing market is in the tank, banks have been outselling home builders for the last 18 months, according to a new report from Housing Intelligence, an independent research and analytical firm.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_135/home-sales-1019793-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
Citigroup Mortgage Buybacks Top $210 Million
Citigroup paid out $210 million for loan buybacks in both the first and second quarters, according to company executives.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_135/citigroup-mortgage-buybacks-top-210-million-1019803-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
GE Capital’s RE Segment Loses $524 Million
The real estate segment at GE Capital lost $524 million in the second quarter of 2010, about twice as much as a loss of $237 million for the same period one year ago.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_135/ge-capital-1019797-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
Industry Gets Chance to Comment on FHA Changes
The FHA is seeking public comment on mortgage underwriting changes it plans to implement soon to reduce defaults and losses to the federal mortgage insurance fund.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_135/fha-1019798-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
FDIC Picks Colony Capital as Winning Bidder
The FDIC closed on a sale of 40% equity interest in a limited liability company created to hold assets with an unpaid principal balance of around $1.85 billion …
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_135/colony-capital-1019802-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
Mortgage Stocks Follow Market Down
Most mortgage stocks are following the same market trends that have pushing the Dow Jones Industrial Average down by an average of 200 points this morning.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_135/mortgage-stocks-1019801-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
Goldman Settles Subprime CDO Case with SEC
A few minutes after the Senate passed historic legislation to reform Wall Street, the Securities and Exchange Commission announced that Goldman Sachs had agreed to a record $550 million settlement of civil charges that the firm misled clients that lost $1 billion on a subprime CDO known as ABACUS.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_134/goldman-1019789-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
House Passes Flood Insurance Bill
The House late Thursday passed legislation to extend the National Flood Insurance Program for five years, increasing coverage on residential and commercial properties.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_134/flood-insurance-1019790-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
REIT Exploring Strategic Options
Prime Group Realty Trust, Chicago, said it is in the process of considering various financing and other capitalization and strategic alternatives for the company.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_135/reit-1019800-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
Senate Passes Landmark Regulatory Reform Bill
The Senate late Thursday afternoon passed the Dodd-Frank Wall Street Reform bill by a 60-39 vote, clearing the way for the president to sign the historic measure next week.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_134/reg-reform-1019776-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
New Mesirow Exec to Head CTL Group
Mesirow Financial Holdings Inc. of Chicago has hired Stephen Jacobson to build and lead its credit tenant lease team.
More Info: http://www.nationalmortgagenews.com/dailybriefing/2010_135/new-mesirow-exec-to-head-ctl-group-1019804-1.html?utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_Text_071610
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http://www.hwforums.com/2191/messages/790.html

TAF REMOVES NOSE (ai) TO SPITE FACE
[ Follow Ups ] [ Post Followup ] [ Appraisers Talk Back ]

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Posted by Cochise on July 16, 2010 at 11:21:05:

TAF APPRAISAL FOUNDATION,
ai aPPRAISAL iNSTTIUTE,

“There have been rumors of this happening but I just received this information from a reliable source that it has been done:”

“On Monday, July 12, 2010 that Board of Trustees of the Appraisal Foundation voted to suspend the Appraisal Institute’s sponsor rights for a period beginning September 15, 2010 to April 15, 2011. There is an appeal process that the Appraisal Institute is entitled to. The Appraisal Foundation has formally noted the Appraisal Institute of its’ decision.”

TAX COURT REJECTS TAXPAYER’S APPRAISAL AS “NOT QUALIFIED,” THUS SIDESTEPPING ANY EVIDENCE OF VALUE
Assuring the Quality of an Appraisal is More Important than Ever
By Howard A. Lewis, Executive Director

The United States Tax Court, in a memorandum decision (Scheidelman v. CIR, T.C. Memo. 2010-151, No. 15171-08), dated July 14, 2010, sustained deficiencies and penalties assessed against the taxpayer, disallowing deductions claimed for charitable contributions of an historic façade easement. Most tax valuation disputes center on the value of the property. The IRS rarely asserts deficiencies and even more rarely tries cases on the basis of the qualifications of the appraiser or the quality of the appraisal. I believe Scheidelman is an important signal, from the IRS and the Tax Court, and the appraisal community is well advised to take heed.

Notwithstanding the memorandum nature of the decision, the IRS and its appraisers will understandably see this decision as further reason to inquire deeply and analyze critically both appraiser qualifications and appraisal quality. In this instance, the IRS argued that the taxpayer’s appraisal did not satisfy the requirements of Regulation Section 1.170A-13(c), which specifies the elements required to be contained in a qualified appraisal. The fact that this matter involves a charitable contribution deduction is less important than the understanding that comes from an analysis of the Service’s approach to appraiser qualifications and appraisal quality. Most of the evidence at trial dealt with the valuation of the property. The Court opined, “Because we conclude that the Drazner report is not a qualified appraisal, we do not discuss this evidence or reach a conclusion as to the value of the easement.” I admit that I argued for years that the IRS should pay more attention to the rules governing appraiser qualifications and appraisal quality and, I admit, I am glad they are doing so. It makes the value of our profession’s education and accreditations more important than ever, and IBA is uniquely positioned to address the specific issue of “what constitutes a qualified appraisal?”