Archive for December, 2011

Commercial/Residential Appraiser Training (NATIONWIDE)

Commercial/Residential Appraiser Training (NATIONWIDE)

——————————————————————————–
Date: 2011-12-16, 3:59PM PST
Reply to: job-pmb73-2756916827@craigslist.org [Errors when replying to ads?]
——————————————————————————–

All Appraiser Trainee’s

Beginning January 1, 2012 the Harris Company, Real Estate Appraisers and Consultants, and West Coast Appraisers will begin providing Appraisal Training for Residential and Commercial Appraiser Trainee’s. The fee for the training will me a minimum of $10.00 to $25.00 per hour depending upon the experience of the Trainee.

Residential Trainee’s should contact Eddy Lampkin at: Commercial Trainee’s should contact Curtis D. Harris at

TELEPHONE CALLS WILL NOT BE ACCEPTED. Residential or Commercial Appraisers interested in accepting Trainee’s should likewise contact the corresponding person. It is our vision that this program be available Nationwide. All respondents must include a Compressive Resume along with their request for admission.

We will be providing Appraiser Training only, NO EDUCATIONAL COURSES ARE OFFERED AT THIS TIME. Questions regarding Trainee Requirements MUST be directed to the Office of Real Estate Appraisers, The Appraisal Foundation, or the appropriate Regulatory Agency.

All Trainers and Trainee’s will be given unlimited access to all our Website’s, Blogs, and Social Networking Sites which will become fee based sites beginning mid-year 2012. Here’s wishing all of you much success in 2012.

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

• Location: NATIONWIDE
• Compensation: The fee for the training will me a minimum of $10.00 to $25.00 per hour dependin
• This is a contract job.
• OK to highlight this job opening for persons with disabilities
•OK for recruiters to contact this job poster.
•Please, no phone calls about this job!
•Please do not contact job poster about other services, products or commercial interests.
• OK to contact me about appearing in CL documentary series

PostingID: 2756916827

Comments

What’s Wrong with American Housing? the Appraisal Institute/Appraisal Foundation, MAI.

This is a “must read” for everyone in real estate, including brokers, appraisers, lenders, and yes even homeowners. It is not a direct condemnation of the appraisal institute/appraisal foundation, mai, but is illustrative of how their inane practices-the use of non-arm’s length transaction as sale comparables-have extirpated the downward move in real estate prices. One thing important to note is that when the author speaks of “normal” sales or prices is what we in the industry call “Market” sales or prices. All italicized items are comments from Curtis D. Harris, BS, CGREA, REB

FROM:
“Anthony Downs
The Brookings Institution
What’s Wrong with American Housing? the Appraisal Institute/Appraisal Foundation, MAI.
Foreclosures Are Suppressing Any Major Recovery in Housing Construction
Sales of foreclosed dwellings have increased greatly since 2006, from about 400,000 to almost two million in
2010. Foreclosure sales comprised a large percentage of all home sales in 2010, and will do so again in 2011. It
is difficult to determine exactly how many foreclosed homes have been sold monthly during any of the years from
2006 through April 2011. Realty Trac estimates that total housing foreclosure filings in each year were as shown
in the accompanying table “Calculating Normal and Foreclosure Sales and Prices, 2006-2010.” It usually takes
considerable time for each filing to result in seizure of the home by lenders and subsequent sales to buyers.
Roughly 25 percent of filings in any year result in foreclosure sales within that year; another 35 percent occur as
sales in the following year; the remainder are settled in some other way.

The National Association of Realtors (NAR) publishes the number of homes sold each year and estimates their
median prices. By subtracting the number of foreclosure sales from total sales, one can estimate the number of
homes sold that were not foreclosed. Realty Trac estimates the number of foreclosure filings each year and the
discount at which actual foreclosures are sold below “normal” prices. These inputs were used to construct the
accompanying table “Estimating Foreclosure and Normal Home Sales Prices by Trial and Error, Matching
Estimates to NAR Housing Data, With 30% Foreclosure Discount.”

This table shows that the percentage of all home sales each year consisting of foreclosure sales rose from 8.53
percent in 2006 to 40.2 percent in 2010. This huge increase in the share of all home sales coming from
foreclosures has greatly reduced the average price of all home sales together. Yet none of the three major
home price indicators explicitly takes into account the influence of the rising share of discounted
foreclosure sales upon either the average overall price or the price of normal, non-foreclosed home sales.
As a result, all three price measures over-estimate the price declines of non-foreclosed homes. In fact, in
2010, as best I can estimate, the sales prices of non-foreclosed homes actually rose slightly at the same time that
the three most commonly used price measures showed a slight decline in average housing prices (including
foreclosure sales).

These factors hugely undermined the willingness of possible home buyers to purchase homes. That offset the
decline in home prices that might otherwise have increased home buying incentives.
Three additional factors reinforced the unwillingness of many households to buy a home (reduced demand.) One was the large inventory of unsold homes, constantly replenished by additional home foreclosures. Potential buyers are reluctant
to buy if they believe home prices might fall farther. Another factor was competition from speculative investors
who were willing to pay all cash to buy homes – especially foreclosed homes being sold at large discounts. Such
investors hoped to rent the homes they bought out and later sell them at a profit after the economy recovered.

The Major Measures of U.S. Housing Prices Provide Misleading Information About What
Is Actually Happening to Such Prices
There are three major sources of information about current housing prices in the United States: the Case-Shiller
Index, the National Association of Realtors (NAR) data, and the Federal Housing Finance Agency (FHFA) Index.
The Case-Shiller Index, owned by Standard and Poor’s, is the home price measure most often cited in the media.
It uses matched pairs of two sales of the same homes over time to measure price changes accurately, not
distorted by comparing prices of different quality homes. ( Now one must remember, what is the likelihood of a home selling twice within a short period 2006-2010 if there is sufficient equity, as opposed to one which is underwater over that same period of time. I proposed that most of the paired sales used were foreclosure sales, reo sales, or short sales.) However, it gathers data from only 20 major metropolitan areas in the United States, despite the fact that in 2009 the Census Bureau stated that there were 366 metropolitan areas (each with 50,000 or more residents). The 20 metro areas included in the Case-Shiller Index contained 104.9 million residents, or 40.78 percent of the entire U.S. metro population in 2009. Since the total U.S. population was 307.745 million in 2009, Case-Shiller covered only 34.4 percent of the total U.S. population,
omitting two-thirds. Moreover, the 20 metro areas in the Case-Shiller Index included most of those that had the
largest home price increases from 2000 to 2006. Hence they showed much greater home price increases from
2000 to 2006, and much larger declines from 2006 to 2010, than were true of home sales in the entire nation. This
can be seen in the accompanying chart entitled “Comparing Three Home Price Indices, 1989-2008.” It clearly
shows that the Case-Shiller Index rose much faster than the other two from 2000 through June 2006, then fell
faster than the other two through about May 2009.

transactions in over fifty metropolitan areas across the nation. From these data, the NAR computes the median
sales price for all these areas combined. However, the NAR price estimate suffers from two problems. First, it
uses median prices for each area and for the nation as a whole, rather than average prices. Second, it does not
correct for shifts in the sample of home types involved in sales during each period—so the median price actually
computed for sales in one period can be influenced by a change in the mix of types of homes sold from one
period to the next. On the other hand, since NAR uses data from a much larger number of metro areas than
Case-Shiller, errors caused by shifts in the types of homes being sold in each period are in part offset by the
larger sample of actual sales in far more locations.

The third index is the Federal Housing Finance Agency’s estimate of home sales prices. Its sample is confined to
purchase transactions eligible for financing by Fannie Mae or Freddie Mac. But it also uses data from many more
metro areas, grouped by regions of the country. And it uses the same matched pair analysis as the Case-Shiller
Index to protect from errors caused by changes in the types of homes that are sold in each period.

None of these indexes distinguishes between sales of foreclosed homes and sales of “normal” homes not
involved in foreclosures. But foreclosed homes typically sell at much lower prices than the same homes would if
they were not foreclosed. Realty Trac estimates that the average foreclosure discount is 20 to 30 percent.
Therefore, as the share of foreclosed sales rises in the total number of sales – as has been happening for several
years – the overall prices based on both types of transactions combined tends to decline, even if the sales prices
of “normal” (that is, non-foreclosed homes) are not falling at all. Based on data from Realty Trac, I estimate that
the share of foreclosed sales in total home sales has risen from about eight percent in 2006 to over 40 percent in
2010. For every 10 percent rise in the share of foreclosed homes in total sales above zero, the price of all sales
combined declines by one-tenth of the discounted price of foreclosure sales compared to normal sales. This can
be seen from the accompanying chart entitled “Relation Between Foreclosures and Overall Price Declines.”

The chart shows foreclosures are sold at prices 30 percent less than normal sales. Hence for every 10 percent rise in
the share of foreclosure sales, the overall price of all sales will be 3 percent lower than it would be without
foreclosure sales. Thus, if foreclosure sales reached 40 percent of all sales, the overall price of all sales would be
reduced by 12 percent below normal sales (3 percent times 4). The Case-Shiller Index shows that home prices of
all homes sold from the fourth quarter of 2007 to the first quarter of 2008 declined by 12.06 percent. That drop in
the overall price could have been caused by a rise in the share of foreclosed sales in all homes, rather than a
genuine decline in actual home prices, including prices of normal (non-foreclosed) homes sold. This assumes that
foreclosed sales are discounted 30 percent below normal sales.

One thing to note here is that I believe a Lack of Demand and High Levels of Forclosures are two sides of the same coin and therefore both CRTIRICAL to current market conditions. Also i feel his Minor rating for inacurate indicies is underestimated consitering these values are improperly used by the appraisal institute/foundation on a regular basis, it to should have a CRITICAL rating. In the final analysis what we have learned is that during any period of time there may be numerious markets, but always two, a Normal/Fair Market, and a Distressed Market, and for sanity and economic reasons they SHOULD NEVER BE PRECEIVED AS ONE OR “BIFORCATED!”

http://www.brookings.edu/~/media/Files/rc/papers/2011/1228_housing_downs/1228_housing_downs.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

Comments

Commercial/Residential Appraiser Training (NATIONWIDE)

Commercial/Residential Appraiser Training (NATIONWIDE)

——————————————————————————–
Date: 2011-12-16, 3:59PM PST
Reply to: job-pmb73-2756916827@craigslist.org [Errors when replying to ads?]
——————————————————————————–

All Appraiser Trainee’s

Beginning January 1, 2012 the Harris Company, Real Estate Appraisers and Consultants, and West Coast Appraisers will begin providing Appraisal Training for Residential and Commercial Appraiser Trainee’s. The fee for the training will me a minimum of $10.00 to $25.00 per hour depending upon the experience of the Trainee.

Residential Trainee’s should contact Eddy Lampkin at: Commercial Trainee’s should contact Curtis D. Harris at

TELEPHONE CALLS WILL NOT BE ACCEPTED. Residential or Commercial Appraisers interested in accepting Trainee’s should likewise contact the corresponding person. It is our vision that this program be available Nationwide. All respondents must include a Compressive Resume along with their request for admission.

We will be providing Appraiser Training only, NO EDUCATIONAL COURSES ARE OFFERED AT THIS TIME. Questions regarding Trainee Requirements MUST be directed to the Office of Real Estate Appraisers, The Appraisal Foundation, or the appropriate Regulatory Agency.

All Trainers and Trainee’s will be given unlimited access to all our Website’s, Blogs, and Social Networking Sites which will become fee based sites beginning mid-year 2012. Here’s wishing all of you much success in 2012.

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

• Location: NATIONWIDE
• Compensation: The fee for the training will me a minimum of $10.00 to $25.00 per hour dependin
• This is a contract job.
• OK to highlight this job opening for persons with disabilities
•OK for recruiters to contact this job poster.
•Please, no phone calls about this job!
•Please do not contact job poster about other services, products or commercial interests.
• OK to contact me about appearing in CL documentary series

PostingID: 2756916827

Comments

POLICY CHANGES AFFECTING VALUE ADJUSTMENTS AND PHOTOGRAPHS

Veterans Benefits Administration Circular 26-11-21
Department of Veterans Affairs December 15, 2011
Washington, D.C. 20420
POLICY CHANGES AFFECTING VALUE ADJUSTMENTS AND PHOTOGRAPHS
1. Purpose. This circular announces changes to two issues – value adjustments to the
Department of Veterans Affairs (VA) Notice of Value (NOV) by Lender’s Staff Appraisal
Reviewers (SARs), and the requirement for interior photographs of subject properties.
2. Rescission of prior SAR authority to issue NOV at other than appraiser’s value estimate
a. In the past, the practice of allowing SARs to issue NOVs with a value up to five percent
higher or lower than the appraiser’s estimate was acceptable with supporting documentation. In
light of the challenging and volatile market conditions existing today, as well as rapidly
changing state regulatory requirements, it is important that professional, VA fee panel appraisers
be relied upon to provide market value estimates, as they are the individuals best qualified to
submit an objective, independent opinion of market value. VA staff may continue to make
adjustments to the NOV as necessary.
b. Effective immediately, SARs must issue the NOV at the appraised value reflected in
the appraisal report and may no longer issue an NOV that deviates from the fee
appraiser’s value estimate. Questions regarding appraisal errors, omissions, or discrepancies,
that arise during the initial review, should be handled by following normal procedures involved
in contacting the appraiser. If contact results in the appraiser uploading an amended appraisal
report with a changed value in webLGY, the SAR must issue the NOV at that changed (current)
value.
3. Requirement of VA fee appraisers to include interior photographs of the subject property
a. In order to bring VA valuation policy into alignment with current practices in the appraisal
industry, appraisers must include interior photographs of the subject property, which at a
minimum, show:
(1) The kitchen.
(2) All bathrooms.
(3) Main living area.
(4) Examples of physical deterioration, if present.
(5) Examples of recent updates, such as restoration, remodeling, and renovation, if present.
b. Additionally, appraisers are reminded of the following:
(1) Appraisal reports must include clear, illustrative, original photographs showing the front,
(LOCAL REPRODUCTION AUTHORIZED)
Circular 26-11-21 December 15, 2011
rear view (preferably including a different side view in each photograph), and a street scene of
the subject property and the front of each comparable sale.
(2) The subject and all comparables must be appropriately identified. Photographs of
comparable listings are not required.
(3) Include photographs of any improvement, site feature, or view affecting value.
(4) Acceptable photographs include clear, illustrative images. Copies of photographs from a
multiple listing service are acceptable only with an explanation why original photos are not
available, i.e. gated communities where access may require trespass to photograph, etc.
4. Rescission: This circular is rescinded January 1, 2014.
By Direction of the Under Secretary for Benefits
Michael J. Frueh
Acting Director
Loan Guaranty Service
Distribution: CO: RPC 2022
SS (26A1) FLD: VBAFS, 1 each (Reproduce and distribute based on RPC 2022)

Comments

Year-End Self-Assessment: How Did We Do on Our 11 Predictions for AMC Liability Risks in 2011?

Thursday, December 22, 2011
http://www.appraiserlawblog.com/2011/12/year-end-self-assessment-how-did-we-do.html
Year-End Self-Assessment: How Did We Do on Our 11 Predictions for AMC Liability Risks in 2011?

By Peter Christensen

One year ago, we offered 11 Predictions for AMC Liability Risks in 2011. Being at the end of the year, it’s time for self-assessment. How did we do on our predictions? It’s important because when we do a good job at our company (LIA Administrators & Insurance Services) in understanding where future liability risk will exist and in sharing that knowledge with our insurance clients, then we and our clients are better able to cover that risk with appropriate insurance or other risk mitigation. How does your insurance broker do?

Please keep in mind that predicting the risk of a liability event is not the same thing as predicting whether the event will actually occur. However, this assessment is based on whether the liability events actually did occur. Using that standard, my grade for our performance in the predictions is an “A-,” a good grade that I feel is deserved for the particular accuracy of our FDIC prediction.

Here is my assessment of how we did on each prediction that we made December 21, 2010 about AMC liability risks in 2011:

1.”Several AMCs will be sued by the FDIC.” We did well on this prediction. Two AMCs were, in fact, sued by the FDIC on May 9, 2011 for more than $100 million each. A third AMC’s appraisals have become the subject of another FDIC action, but the AMC is not named as a defendant.
2.”AMCs sued by the FDIC will discover that their professional liability policies are not sufficient or exclude claims by the FDIC.” I’ll give us this one. While I cannot verify this prediction with 100% confidence, I strongly suspect that the professional liability policies maintained by the two AMCs sued by the FDIC are not sufficient to cover the claims against them and/or are being depleted by other litigation affecting the companies. It’s also possible that no coverage currently exists under those policies because of the nature of the claims. In general, about 50% of the professional liability policies I see for AMCs exclude FDIC and other regulatory agency claims. AMCs are also generally under-insured (most do not carry any more insurance than an individual appraiser) or not insured at all for AMC services.
3.”A few AMCs will endure liability aftershocks relating to actual or threatened litigation by the purchasers of mortgage backed securities.” We did miss on this prediction. To my knowledge, no AMC was named as a defendant in any MBS litigation in 2011. I also don’t know of any indemnification lawsuits against AMCs by lenders defending MBS investor claims. However, several AMCs are referenced in MBS litigation against originating lenders, including in some of the 17 cases filed in September by the Federal Housing Finance Agency in relation to loans purchased by FannieMae and FreddieMac. It appears that AMCs may avoid being dragged in as defendants to that mess.
4.”More AMCs will be named as defendants in lawsuits filed by borrowers and lenders alleging claims about poor quality appraisals.” This prediction came true.
5.”We will see a few lenders sue AMCs to enforce appraisal ‘warranties’ which obligate the AMCs to pay losses and costs for mortgage repurchases and other losses blamed on faulty appraisals.” I think we did well on this prediction but our success is partly based on a legal technicality. The FDIC is standing in the shoes of failed lender Washington Mutual and, in that capacity as the receiver for WaMu, it is suing two AMCs for breach of the appraisal warranties given by those AMCs. Apart from that, I also do know of smaller claims by lenders against AMCs relating to appraisal warranties. (It’s worthwhile noting that the representations and warranties that many AMCs are presently offering in order to win appraisal work from lenders are placing the AMCs at much greater risk in the future — basically, some AMCs will sign anything to get a lender’s work, worry about the liability later, and view the potential liability shield provided by incorporation as their “insurance.”)
6.”Some AMCs will face liability because they do not understand current appraiser E&O issues.” We were correct on this one. To give one example, this year, I observed an AMC sued by a borrower because the AMC basically pushed the borrower’s claim into the lap of the appraiser — the appraiser never responded, soon left the business and no longer maintained E&O. The result was that the AMC became a defendant. Also, we’ve observed that most AMCs remain clueless that some of their panel appraisers are replacing their E&O insurance with “cheap” and “no frills” policies that do not provide claims coverage for their prior work (i.e., no “prior acts” coverage). These cheap policies are being marketed to appraisers based on the theme that AMCs and “lenders do not require prior acts.”

Comments

Appraiser Customary and Reasonable Fee Survey from OREP/Working RE

Appraiser Customary and Reasonable Fee Survey from OREP/Working RE

Directions: Please first select your state and then slect the closest metropolitan area(s) you work in for each question. Rural areas are included for each state. NOTE: This survey is for non AMC work. Fee quotes include the 1004MC form, as required by law. If you don’t provide a particular appraisal product, please leave that question blank.
Once you’ve completed the survey, please send the survey link to as many appraisers as possible and ask him/her to complete it. The value of this survey depends on participation.

*1. Which state do you work in? (Please come back to complete the survey again if you work in multiple states.)

Please allow a few moments for the page to load.
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Which state do you work in? (Please come back to complete the survey again if you work in multiple states.) Please allow a few moments for the page to load.Opt-In to Working RE Online- Get Survey Results
One issue every other week is delivered via email to keep you up to date with industry news as it happens. It’s free, you can opt-out at anytime and your information will always remain private. To opt-in, and to be notified when the results of this survey are posted, please email subscription@workingre.com with “Appraiser Newsletter” in the subject.

Comments

John S. Brenan, David S. Bunton

John S. Brenan, David S. Bunton

From: David Bunton [mailto:david@appraisalfoundation.org]
Sent: Tuesday, December 27, 2011 5:50 AM
To: Curits Harris
Cc: John Brenan; Staci Steward
Subject: RE: John S. Brenan, David S. Bunton

Mr. Harris: Thank you for your e-mail regarding recent correspondence by John Brenan regarding a position put forth by the National Association of Home Builders (NAHB). The opinions expressed by Mr. Brenan in his correspondence on Foundation Letter Head (sic) are those of The Appraisal Foundation and, with the exception of your correspondence, have been very well received. Regarding your Freedom of Information Act request, The Appraisal Foundation is a private non-profit organization and is therefore not subject to this act. Regards, Dave Bunton

[Curtis Harris]

Yes! I got an answer, not quite what I expected from the head of the Appraisal Foundation, but apropos for someone with his Political Training. ” The opinions expressed by Mr. Brenan in his correspondence on Foundation Letter Head (sic) are those of The Appraisal Foundation and. . .” ” A sic may also be used as a form of ridicule or as a humorous comment, by drawing attention to the original writer’s mistakes.” Here he is attempting to ridicule me for the improper use of the word Letterhead, but in his ignorance he has misused the word (sic) which is more correctly used in brackets and is always italicized, i.e. [sic]. What was it that I once heard about the crackpot who thought he was throwing a lug only to find out it was a boomerang?

In any event this was a ridiculous attempt by me to draw attention to a very important issue facing the real estate industry, real estate appraisers using non-arm’s length transactions to estimate Market Value.

From: Curits Harris [mailto:harris_curtis@sbcglobal.net]
Sent: Friday, December 23, 2011 10:23 PM
To: David Bunton
Cc: 8fad3708f17c60e0@typepad.com
Subject: John S. Brenan, David S. Bunton

Comments

David S Bunton, John S Brenan (Appraisal Foundation)

David S Bunton, (Appraisal Foundation)

I have made several demands for information on one of your employees, specifically John S. Brenan. Under the Freedom of Information Act, I further demand that you provide me a complete copy of your (David S. Bunton) and John S. Brenan’s Resume. You are also formally notified that Mr. John S. Brenan is responsible for the dissemination of information, on the Appraisal Foundation Letter Head, that is contrary to public policy and professional appraisal practice. This has lead me to believe that he is incompetent or unqualified for his position.

Additionally I have requested a copy of his job description and a statement of how these letters are relevant to his position, or who authorized there publication and distribution.

$ Mr. Bunton has served as the senior staff member of The Appraisal Foundation since May of 1990. As President, he is the chief executive officer of the Foundation. (Think we need TERM LIMITS?)

Prior to joining The Appraisal Foundation, he served as the Vice President of Government Affairs and Communications for the Federal Asset Disposition Association. He also previously served as a legislative assistant in the U.S. Senate for eight years and was a Congressional Chief of Staff in the House of Representatives for four years.

Mr. Bunton holds a BA degree in Government and Politics from the University of Maryland. (Just what the Appraisal Industry Needs!)

He is presently a member of: The Collateral Risk Network, http://www.collateralrisknetwork.com/speaker_david_bunton.php which was formed in late 2003 at the first annual Valuation Expo in Orlando, Florida. Attendance was approximately a half dozen or so lenders. Today membership stands at 281 members comprised of Lenders, Government Agencies, Wall Street, Vendor Management Companies, and Appraisers. (Their main objective is to transfer the bulk of appraisal work away from independent appraisers to Appraiser Management Companies and AVM developers. Mr. David S. Bunton you are a disgrace to our industry! Talking about the cat garding the chicken koop. Can we please get some sanity in this profession?)

http://banking.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=41c1c2ff-5353-44e1-b964-39945b6614ce

Your immediate response is appreciated. (appraisal foundation)

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

Comments

“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

Comments

Vol. 3, No. 2 December 2011 Appraiser Qualifications Board

Vol. 3, No. 2 December 2011
Appraiser Qualifications Board
Q&A
Vol. 3, No. 2 December 2011
The Appraiser Qualifications Board (AQB) of The Appraisal Foundation establishes the minimum education, experience and examination requirements for real property appraisers to obtain a state license or certification. The AQB Q&A is a form of guidance issued by the AQB to respond to questions raised by appraisers, enforcement officials, users of appraisal services and the public to illustrate the applicability of the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria in specific situations and to offer advice from the AQB for the resolution of appraisal issues and problems. The AQB Q&A may not represent the only possible solution to the issues discussed nor may the advice provided be applied equally to seemingly similar situations. AQB Q&A does not establish new Criteria. AQB Q&A is not part of the Real Property Appraiser Qualification Criteria. AQB Q&A is approved by the AQB without public exposure and comment.
General Requirements
Question:
I would like to get a Certified General appraiser credential. I am from another country and have a student visa, but don’t have a Social Security card or Taxpayer ID Number. If I fulfill the education and experience requirements, can I get a Certified General appraiser credential without possessing a Social Security card or similar document?
Response:
The Real Property Appraiser Qualification Criteria does not specifically address residency, citizenship or identification issues. However, be sure to check with the state appraiser regulatory agency in the state where you plan to seek the credential to confirm the state’s requirements for licensure, as states may have their own residency or citizenship requirements.
Appraiser Qualifications Board Q&A Page 2 of 5
Vol. 3, No. 2 December 2011
Experience
Question:
I am an Appraiser Trainee working towards my license. If I do not sign an appraisal report due to my company’s policies or a client’s assignment conditions, what verbiage is required in the report in order for the time I spent on the appraisal to count toward the experience requirements in the Real Property Appraiser Qualification Criteria?
Response:
If you provide significant real property appraisal assistance for a supervisory appraiser but do not sign the report certification, your supervisory appraiser must disclose that you provided significant real property appraisal assistance within the certification of the report. In addition, the supervisory appraiser must describe the extent of your assistance in the report (refer to the Uniform Standards of Professional Appraisal Practice [USPAP], Standards Rules 2-2 and 2-3, as well as Advisory Opinion 31, Assignments Involving More Than One Appraiser, for additional details).
Furthermore, the experience log you submit to your state appraiser regulatory agency must describe the work you performed in support of the hours of experience you claim for each assignment. Documentation in the form of reports, certifications, or file memoranda, or other evidence that the time you spent on the appraisal process is compliant with USPAP must be provided as part of the state experience verification process to support the experience claimed.
Qualifying Education
Question 1:
I am a state regulator responsible for evaluating courses submitted for qualifying education for state appraiser licensure and certification. I recently received a submission of a course entitled “Advanced Residential Applications and Case Studies.” I reviewed Guide Note 1 of the Real Property Appraiser Qualification Criteria and understand one of the subtopics for this course is “Advanced Case Studies.” What qualifies a case study as “advanced?”
Response:
An Advanced Residential Applications and Case Studies course should serve to provide the student with practical instruction demonstrating how to handle complex and high-value residential properties.
Appraiser Qualifications Board Q&A Page 3 of 5
Vol. 3, No. 2 December 2011
Guide Note 1 of the Criteria provides curriculum guidance including the following subtopics for this course:
A. Complex Property, Ownership and Market Conditions
B. Deriving and Supporting Adjustments
C. Residential Market Analysis
D. Advanced Case Studies
Thus, the case studies in this type of course should include issues dealing with complex and/or high-value residential properties such as:
• Atypical properties in a given market;
• Residences with unique architecture or historic properties;
• Properties which may be stigmatized due to internal or external circumstances; and/or
• Properties of such value and/or unusual characteristics that their competitive market may be regional as opposed to an immediate neighborhood.
Other advanced case study topics could include complex ownership situations, such as the appraisal of fractional interests in a property; material dealing with more complex market conditions such as declining neighborhoods within a generally improving market; properties affected by a government acquisition program; or properties within markets which may be impacted by foreclosure sales or tax sales.
Advanced case studies may involve advanced statistical analysis; appropriate handling of unusual sales concessions; atypical markets; and markets with scarce data.
Please be advised that the above is not meant to be an exhaustive list of possible topics for Advanced Residential Applications and Case Studies. Course developers are encouraged to explore a variety of topics relevant to complex residential issues in order to differentiate an Advanced Residential Applications and Case Study course from more basic level course topics.
Question 2:
I am an Appraiser Trainee preparing to get my Certified Residential credential. For my initial qualifying education to become a Trainee, I completed 80 hours of Basic Appraisal Principles and Procedures in 2003 from a proprietary school that no longer exists. My state appraiser regulatory agency said any courses taken before January 1, 2008 were no longer considered valid according to the AQB. Why can’t these original hours count toward the qualifying education requirement for my Certified Residential credential?
Appraiser Qualifications Board Q&A Page 4 of 5
Vol. 3, No. 2 December 2011
Response:
The current edition of the Real Property Appraiser Qualification Criteria went into effect January 1, 2008. However, the Criteria do not contain any provision that invalidates qualifying education successfully completed prior to that date. As with all AQB Criteria, states may create requirements that are more restrictive; if so, you’ll need to clarify this with your state. From the AQB’s perspective, courses that were eligible in 2003 would remain valid towards the 2008 Criteria.
Question 3:
I have been a commercial real estate professional for over 21 years, have my broker’s license and am a Certified Commercial Investment Member (CCIM). I am interested in pursuing a Certified General real property appraiser credential. I would prefer to do my education on my own time with an online educator. I have my Bachelor’s degree in business from a state university. With my licensing, education, and experience, is there a way to “fast track” the required coursework?
Response:
Many qualifying education (QE) courses required under the Real Property Appraiser Qualification Criteria are available online. Your state appraiser regulatory agency maintains a list of approved QE courses and providers. Also, it is possible your university may have sought and received QE approval from your state appraiser regulatory agency for some of the courses you took when earning your degree.
Alternatively, some of the education you completed for your other real estate credentials/designations might be approved by your state appraiser regulatory agency as real property appraiser QE. If so, you may already have some of the 300 hours of required QE for the Certified General credential completed.
Continuing Education
Question:
I am a certified appraiser in a state with a 2-year licensure cycle. As such, I am required to complete 28 hours of approved continuing education (CE) in order to be eligible to renew my certification. If I complete more than the required 28 hours, can I carryover the extra hours to my next certification renewal?
Response:
The Real Property Appraiser Qualification Criteria (2008) does not provide for any carryover of CE hours from one renewal period to the next. Specifically, under Section F. Criteria Specific to Continuing Education, Item 11 requires the instruction for which CE is sought to take place “…during the period preceding the renewal.”
Appraiser Qualifications Board Q&A Page 5 of 5
Vol. 3, No. 2 December 2011
The AQB Q&A is posted on The Appraisal Foundation website (www.appraisalfoundation.org)
For further information regarding AQB Q&A, please contact:
John S. Brenan, Director of Appraisal Issues
The Appraisal Foundation
1155 15th Street, NW, Suite 1111
Washington, DC 20005
(202) 624-3044
(202) 347-7727 fax
john@appraisalfoundation.org

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