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

WHY!!! WE DO NOT USE REO, SHORT SALES, PROBATE SALES, PARTIAL INTEREST OR OTHER NON-ARMS LENGTH TRANSACTIONS AS COMPARABLE SALES. AND WHY WE DO NOT USE UNSUBSTANTIATED “TIME” ADJUSTMENTS

Market Value Defined
In appraisal practice, the term Market Value is defined by agencies that regulate federal
financial institutions in the U.S. That definition is the one found in USPAP and is given
as:

“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 and 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:

*buyer and seller are motivated;

*buyer and seller are well informed or well advised and acting in what they consider
their best interest;

*a reasonable time is allowed for exposure in the open market;

*payment is made in terms of cash in United States dollars or terms of financial
arrangements comparable thereto; and

*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.

(Source: Uniform Standards of Professional Appraisal Practice, Appraisal Foundation,
2000 Edition, page 160.)

HUD Selects 18 Lenders for Green Housing Pilot Program

Fri, 2011-04-22 12:18 — NationalMortgag…

Eighteen national, regional and local lenders will participate in a new two-year pilot program that will offer qualified borrowers living in certain parts of the country low-cost loans to make energy-saving improvements to their homes. Backed by the Federal Housing Administration (FHA), these new PowerSaver loans will offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including the installation of insulation, duct sealing, replacement doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.

U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan and U.S. Department of Energy Secretary Steven Chu announced the participating lenders during a tour of a family-run company that offers home energy audits and upgrades in Long Island, N.Y.

FHA’s list of PowerSaver-approved lenders includes Admirals Bank; AFC First Financial Corporation; Bank of Colorado; the City of Boise, Idaho; Energy Finance Solutions; Enterprise Cascadia; HomeStreet Bank; Neighbor’s Financial Corporation; Paramount Equity Mortgage Inc.; Quicken Loans; SOFCU Community Credit Union; Stonegate Mortgage Corporation; Sun West Mortgage Company Inc.; The Bank at Broadmoor; University of Virginia Community Credit Union Inc.; Viewtech Financial Services Inc.; WinTrust Mortgage; and W. J. Bradley Mortgage Capital Corporation.

http://nationalmortgageprofessional.com/news24788/hud-selects-18-lenders-green-housing-pilot-program

National City, Calif.—A California gym that mentors at-risk kids scored a knockout legal blow against eminent domain abuse in California. Yesterday, April 21, Judge Steven R. Denton of the Superior Court of California ruled in favor of the Community Youth Athletic Center (CYAC) and against National City, Calif., in one of the most important property rights cases in the nation. Carlos Barragan, Jr., who along with his father created the CYAC as a means of keeping local at-risk kids out of gangs, will join with other CYAC leaders at the gym at 10:30 a.m. California time to discuss the ruling with the media. The gym is located at 1018 National City Blvd., National City, Calif.
The Court struck down National City’s entire 692-property eminent domain zone in the first decision to apply the legal reforms that California enacted to counter the disastrous U.S. Supreme Court Kelo decision in 2005. This ruling, which found that National City lacked a legal basis for its blight declaration, reinforces vital protections for property owners across the state, and underscores why redevelopment agencies should be abolished.
The Court also ruled that National City violated the Due Process clause of the U.S. Constitution in failing to provide the CYAC with statutorily required information prior to an important public hearing.
Finally, in a holding with implications well beyond redevelopment law, the Court also held that when the government retains a private consultant to perform government functions—in this case, documenting the existence of alleged “blight” in National City—documents that the private consultant produces are public records subject to disclosure under the California Public Records Act. The Court also set a clear standard for what government agencies have to do in searching the records of their private consultants in response to a Public Records Act request.
“After Kelo, the California Legislature limited a city’s ability to declare ‘blight’ based on trivial things like ‘lack of parking’ and required real evidence and documentation from redevelopment agencies,” said Dana Berliner, a senior attorney with the Institute for Justice, which represented the CYAC for free. “National City completely ignored the new law when it decided to threaten the CYAC and nearly 700 other properties with eminent domain for private development. The Court’s decision holds that the new law placed real restrictions on redevelopment agencies and that National City violated the law. This is the very first case interpreting the changes to the law that went into effect on January 1, 2007, in response to the Kelo decision.”
Berliner said, “This decision will go a long way in protecting Californians throughout the state against eminent domain abuse.”
Clemente Casillas, the CYAC President, said, “I hope National City does the right thing now and throws in the towel so we can get back to focusing all our attention on helping to grow the kids in our community. The city can have redevelopment, but that has to be done through private negotiation, not by government force.”
IJ Senior Attorney Jeff Rowes said, “Redevelopment agencies always use private consultants to come up with blight studies. The Court ruled that the documents and data produced by those consultants are public records, just like government-produced documents. That ruling will help everyone trying to fight a blight designation of their neighborhood, and it will also help the media and anyone else trying to get more information about government projects. We’ve been saying for years that the city’s blight study lacked any information the CYAC needed to do a meaningful review. The court agreed, saying it was mostly jargon and that the city should have given the CYAC more time and continued the public hearing when the CYAC requested it.”
California Governor Jerry Brown has proposed eliminating local redevelopment agencies across the state. These agencies, which are run by the cities they reside in, have taken properties they didn’t own only to hand that land over to those with more political power. They have driven city after city in California to the brink of bankruptcy, often for nothing more than private gain.
“National City has been labeling this area blighted since the 1960s,” said Rowes. “This decision provides another example of a redevelopment agency that is out of control and should be abolished.”
The CYAC got almost everything it asked for in this lawsuit. The Court invalidated the city’s redevelopment plan amendment that authorized eminent domain, declared that the city violated the Public Records Act, declared that the city violated the CYAC’s due process rights, and gave the CYAC nominal damages. The CYAC is finally free from the threat of eminent domain for the first time in nearly four years.
Richard M. Segal, Brian D. Martin and Nathan R. Smith from Pillsbury Winthrop Shaw Pittman LLP in San Diego, acting as pro bono local counsel, put in extraordinary time and effort on the case.

http://ij.org/about/3779

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/rESUME2011.pdf
Commercial Appraiser Blog: http://harriscompanyrec.com/blog/
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

Federal Reserve Board to Clarify Customary and Reasonable Appraisal Fees

Click Here to Sign the Petition below

this email brought to you by Lender-List.com

To: Federal Reserve Board, U.S. Congress, Federal Financial Institutions Examination Council, Federal Trade Commission
Federal Reserve Board – Jamie.Z.Goodson@frb.gov; Lorna.M.Neill@frb.gov ; Virginia.Gibbs@frb.gov ; Walter.McEwen@frb.gov ; Will.Giles@frb.gov.

Subject: Potential violations of the prohibitions in TILA against the use of AMC fees as the basis for determining reasonable and customary appraisal fees.

On October 18, 2010, the Federal Reserve Board announced an interim final rule to Regulation Z of Title 12, also known as the Truth in Lending Act (TILA). One of the elements to Regulation Z is a binding requirement upon creditors and appraisal management companies to ensure that appraisers who are not employees of creditors or of the appraisal management companies receive customary and reasonable payments for their services.

In preparing this interim final rule, the Federal Reserve Board did not specifically identify which appraisal fee schedules, surveys or studies that would be appropriate to designate as a ‘‘safe harbor’’ for creditors and their agents to comply with the reasonable and customary fee requirements of TILA. In lieu of identifying these schedules, surveys or studies, the Board basically offered two alternatives to creditors and appraisal management companies; either conduct their own surveys of fees for a locale and operate off the presumption that those surveys are reasonably accurate (Presumption 1), or rely on other fee surveys or studies conducted by objective third parties such as government agencies, academic institutions, and private research firms and rely on the presumption that they are accurate (Presumption 2).

The specific language of both (TILA) and the FRB’s interim final rule specifically exclude the use of AMC fees as the basis for identifying the thresholds for reasonable and customary appraisal fees. In fact, the final interim rule specifically refers to this prohibition several times.

It is our assertion that there is no language in the “Presumption 1″ paragraphs that indicate that either Congress or the Board intended to allow the AMCs to include their own fees or those of other AMCs as the basis for reasonable or customary appraisal fees. We believe it is obvious that the term:

“…recent rates paid for comparable appraisal services…”

as stated in Presumption 1 *is not* synonymous with, nor should it be interpreted as:

“…recent rates paid by AMCs for comparable appraisal services…”

We also assert that ample evidence exists in the market in virtually all locales as to what local appraisers charge their non-AMC clients for such appraisal work. No AMC is compelled to actually wonder what fees the appraisers charge their non-AMC clients – all they have to do is pick up the phone and start asking.

As of the implementation date of the final interim rule, many appraisal management companies have made a good faith effort to comply with the requirements in TILA to ensure that the appraisers they engage are paid fees that are reasonable and customary for those markets. Some of these AMCs have accomplished this by employing Presumption 1 (conducting their own market surveys), while others have accomplished this by employing Presumption 2 (relying on other published fee schedules and surveys developed by objective third parties). Some AMCs have gone so far as to employ both methods as a means of ensuring their compliance. As appraisers, we applaud and support the good faith efforts of those AMCs that have chosen to adhere to the law as written.

Sadly, as of the implementation date of 04/2011, some AMCs have chosen to flaunt both the letter and specific intent of the law (TILA) as well as that of the interim final rule. Despite the specific prohibition against including AMC fees as part of those surveys, a few of the high profile AMCs have even gone so far as to erroneously assert that the final interim rule specifically allows them to reference their own fees and/or those of other AMCs in their surveys. This, despite the repeated references in TILA and the interim final rule to the contrary.

To the extent such violations are occurring in the market the results serve to undermine both the letter and intent of the law (TILA) as written. The “violator” AMCs have undermined the level playing field on which they compete in the market with other AMCs that are in compliance, not to mention seriously degrading the economic viability of the appraisers who actually perform the appraisals being used in these transactions. The damages to the professional appraiser community extend across all levels of experience and competency, and serve to induce some appraisers who work for the AMCs to attempt to compensate for these grossly substandard fees by sacrificing quality and due diligence for increased assignment volume. Obviously this has also had a negative impact on the utility of those appraisals as used by the creditors, not to mention the negative impacts on consumer interests and the federal banking regulatory interests.

Simply put, if a violator AMC is billing a consumer $500 or more for a comprehensive residential appraisal, that consumer’s interests cannot be well served on a consistent basis when that AMC makes their primary choice of appraiser based on a unilaterally imposed fee structure that is, in some cases, less than half of the prevailing rate being charged in the market to any other type of user. That some of the biggest AMCs are wholly-owned subsidiaries of the lending institutions they represent essentially amounts to an additional hidden fee being paid – by the consumers – to those lenders in those loan transactions.

We, the undersigned, represent a large number of licensed and certified real estate appraisers in the United States. We respectfully request that the Board take action to publicly reiterate the prohibitions contained in both TILA and the Board’s interim final rule against the reliance on any survey, conducted by any party, that unlawfully includes AMC fees and purports to use them as the basis, in part or in whole, for establishing the thresholds for reasonable and customary appraisal fees as referenced. In addition to public guidance, we also request that the Board act promptly and effectively to investigate complaints involving allegations of the blatant violations of these prohibitions as stated.

We thank you for your cooperation and assistance. Click Here to Sign the Petition

All-

New FHA Training Around the Nation:

April 2011 – FHA/CAMP Webinar Series. Introduction to FHA insured mortgage programs – Learn about: 1 to 4 unit property, condos, rehab programs, & the energy efficient mortgage program. Presented by FHA & CAMP. Computer & internet access required. Registration required, no fee. All times are Pacific Time. More info at: http://www.hud.gov/offices/hsg/sfh/events/sca042011.pdf

April 14, 2011 – Webinar: HUD REO M&M-III Protocol & the FHA 203-K Loan. Learn general principles of the REO M&M-III program and the 203-K & 203-K Streamline programs. This training will explain how the sale of HUD REO properties is accomplished and why the 203-K loan is a perfect vehicle to complete needed repairs, updates and upgrades. The 203-K & 203-K Streamline can also be used when purchasing or refinancing any one to four family property in need of updating or repairs. This training is designed for Loan Officers, Real Estate Brokers and Sales Agents. All times are Eastern Standard Time. Registration required, no fee. More info at: https://www1.gotomeeting.com/register/608432728

April 14, 2011 – Webinar: Writing a Successful Grant Proposal. This webinar is intended for HUD approved housing counseling & non-profit agencies. It will provide information on general nonprofit organizational development basics, such as review of HUD funding applications, breaking down & explaining the sections & their importance; overview of performance management, planning & organizational structure, including staffing & board make-up; & how to best describe organizational outcomes when submitting a grant application; tips & tools for developing a grant submission, staying on track & the keys to applying successfully. Registration required. No fee. All times are Pacific. Register at: http://www.visualwebcaster.com/FHA/77693/reg.html Register today, this webinar may fill up fast!

April 19, 2011 – Tampa, FL. HUD Loss Mitigation Training. Presented by HUD. This live training is for housing counselors. 8:30 am – 2:30 pm Eastern time
At the Children’s Board of Hillsborough County, 1002 East Palm Avenue, Tampa, FL 33605 To register, please email: Jose.c.parrilla@hud.gov Please Note: The completion of NSC’s Online EClass Training is a “prerequisite” prior to registering & attending any HUD live classroom training. The NSC EClass training date on your certificate is a required field when registering for live classroom training. Without a verifiable system date, the EClass System will not allow you to proceed with registration. Register for either of these training dates at: https://eclass.hudtulsa.org/ Additional information regarding EClass requirements can be found in Mortgagee Letter 2009-45. All FHA Mortgagee Letters can be found online at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

April 28, 2011 – Hollywood, FL. HUD Loss Mitigation Training. Presented by HUD. This live training is for housing counselors. Please Note: The completion of NSC’s Online EClass Training is a “prerequisite” prior to registering & attending any HUD live classroom training. The NSC EClass training date on your certificate is a required field when registering for live classroom training. Without a verifiable system date, the EClass System will not allow you to proceed with registration. Register for either of these training dates at: https://eclass.hudtulsa.org/ Additional information regarding EClass requirements can be found in Mortgagee Letter 2009-45. All FHA Mortgagee Letters can be found online at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

April 28, 2011 – Philadelphia, PA. HUD Live Loss Mitigation Program Training for HUD approved Housing Counselors. Please Note: The completion of NSC’s Online EClass Training is a “prerequisite” prior to registering & attending any HUD Classroom training. The NSC EClass Training Date on your Certificate is now a required field when registering for Classroom Training. Without a verifiable system date, the EClass System will not allow you to proceed with registration. Register for this training at: https://eclass.hudtulsa.org/ Additional information regarding EClass Requirements can be found in Mortgagee Letter 2009-45.

May 10-11, 2011 – Washington, D.C. NRMLA Washington Policy Conference. NRMLA’s Washington Policy Conference offers an opportunity to learn the latest Home Equity Conversion Mortgage (HECM) information and meet the policy makers who are shaping the future of the HECM business. Learn more at: http://www.nrmlaonline.org/
May 11, 2011 – Honolulu HI. HUD Housing Counseling Compliance Workshop. Presented by Rural Community Assistance Corporation & HUD. This live workshop is for program managers & housing counselors who are or will be responsible for using & tracking your agency’s HUD housing counseling program. Due to the popularity of this workshop & content, registration is limited to non-profit & government organizations. Registration required. For more information please contact Teresa Bardwell by email at: TBardwell@rcac.org

May 11, 2011 – Philadelphia, PA. HUD Live Loss Mitigation Program Training for HUD approved Housing Counselors. Please Note: The completion of NSC’s Online EClass Training is a “prerequisite” prior to registering & attending any HUD Classroom training. The NSC EClass Training Date on your Certificate is now a required field when registering for Classroom Training. Without a verifiable system date, the EClass System will not allow you to proceed with registration. Register for this training at: https://eclass.hudtulsa.org/ Additional information regarding EClass Requirements can be found in Mortgagee Letter 2009-45. All FHA Mortgagee Letters can be found online at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

May 12, 2011 – Jacksonville, FL. FHA Loss Mitigation Training. Presented by HUD. This live training is for housing counselors. Please Note: The completion of NSC’s Online EClass Training is a “prerequisite” prior to registering & attending any HUD live classroom training. The NSC EClass training date on your certificate is a required field when registering for live classroom training. Without a verifiable system date, the EClass System will not allow you to proceed with registration. Register for either of these training dates at: https://eclass.hudtulsa.org/ Additional information regarding EClass requirements can be found in Mortgagee Letter 2009-45. All FHA Mortgagee Letters can be found online at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

May 17, 2011 – Santa Ana, CA. FHA Loss Mitigation Program Training for housing counselors from HUD Participating Housing Counseling Agencies. The live training will cover the various foreclosure prevention provisions offered for FHA borrowers. Please Note: The completion of NSC’s Online EClass Training is a “prerequisite” prior to registering & attending any HUD live loss mitigation classroom training. The NSC EClass training date on your certificate is a required field when registering for live classroom training. Without a verifiable system date, the EClass System will not allow you to proceed with registration. Register for the training date at: https://eclass.hudtulsa.org/ Additional information regarding EClass requirements can be found in Mortgagee Letter 2009-45. Space is limited. All FHA Mortgagee Letters can be found online at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

May17-18, 2011 – Oklahoma City, OK. Early Delinquency Servicing Activities & HUD’s Loss Mitigation Program Training. This live training includes coverage of: HUD Handbook 4330.1 REV-5, Chapter 7, Delinquencies, Defaults, Mortgage Collection Activities & Initiation of Foreclosure & HUD’s Loss Mitigation Program. Additionally, overviews will be presented pertaining to Extension of Time Requests & Variances, Single Family Default Monitoring System. Registration required, no fee. For more information: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/training

May 19, 2011 – Denver, CO. A Day with FHA Underwriting. This FREE one-day live training will cover a wide spectrum of topics to include: Recent updates, Refinances, Real Estate Owned (REO) calculations & Transactions that affect the maximum Loan to value (LTV.) Interactive scenarios/discussions covering Credit, Liabilities, Income & Assets will be facilitated along with case studies for Purchases, Refinances, & REOs. Registration required, no fee. More info at: Registration required, no fee. For more info: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=811&update=N

May 20, 2011 – Denver, CO. The FHA Appraisal. This free one-day live class discusses FHA appraisal requirements including FHA Appraisal Protocol. Learn about the responsibilities of the appraiser & lender. Appraisers will gain an understanding of what to look for during the site visit & how to report readily observable deficiencies. Topics covered include FHA new construction appraisal procedures, property eligibility, manufactured housing, condominiums, income properties, 203(k), declining markets (Form 1004MC), appraisal updates (1004D) & sales concessions along with FHA appraisal review & sanction procedures. FHA. Approved for seven (7) hours of Continuing Education Credit from the State of Colorado. Registration required, no fee. For more info: http://www.hud.gov/emarc/index.cfm?fuseaction=emar.registerEvent&eventId=812&update=N

AND

FHA Webinar Archive:

Have you missed an FHA Webinar? Check the FHA Homeownership Center Webinar Archive for the current list of archived training webinars. Please bookmark and check the archive frequently for newly archived training presentations. You can visit the archive on-line on HUD website at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/talk/parc/phiarch

Fannie Mae wants to help more buyers afford to purchase their new home. That is why we are offering up to 3.5% in closing cost assistance for HomePath® properties beginning April 11 through June 30, 2011.
Eligibility Details
• Initial offers must be submitted on or after April 11, 2011.
o Buyers must be owner occupants (i.e., the home will be their primary residence), and buyers are required to sign an Owner Occupant Certification Rider to the Purchase Addendum with all initial offer submissions.
• Sale must close on or before June 30, 2011.
• Other restrictions apply. For more information about the offer including the terms and conditions, visit the Special Offers tab at HomePath.com.
Selling Agent Bonus
In California and Washington, there will be a $1,000 bonus available for selling agents whose buyers purchase and close on a HomePath property by June 30, 2011. See this flyer for details.
HomePath.com
Search HomePath.com today for the most updated list of properties. And remember, all owner occupants enjoy a 15-day preview of all HomePath properties — without competition from investors — through Fannie Mae’s FirstLookTM period.