Senate discussion of 2452 today.

[Michigan CG]

....looks like conversation this evening with no votes tomorrow or Monday......COULD be Tuesday morning......looks like decision before Friday of next week.....the important appraiser parts are by my current understandings; 1) "...a written appraisal of the property to be mortgaged, 2) "...performed by a qualified appraiser who conducts a physical property visit of the interior of the mortgaged property.", 3) "...qualified appriaiser defined...is certified or licensed by the State in which the property to be appraised is located..", 4) "...a creditor found to have willfully failed to obtain an appraisal as required....shall be liable to the consumer for the sum of $2000.", 5) "...failing to timely compensate an appraiser for a completed appraisal regardless of whether the transaction closes.", 6) "...asking an appraiser to provide 1 or more of the following services: ...provide further detail, substantiation, or explanation for the appraiser's value conclusion.", 7) "...each person who violates this section shall forfeit and pay a civil penalty of not more than $10,000 for each day such violation continues.", 8) "...Threshold Levels..and that such threshold level provides reasonable protection for consumers who purchase 1-4 unit single-family residences.", and 9) "....Mandatory reporting.-Any mortgage lender, mortgage banker, real estate broker, or any other person with and interest in a real estate transaction...believe an appraiser is violating applicable laws...".........interesting???.........best to all.........rs

RS.....I haven't followed this as much as maybe I should have, but are all of those things still in the proposed legislation? Has anyone tried to get them removed? If I am reading it correctly then the AVM would be dead, BPO's would be dead (NAR wouldn't like that), most likely the big Z would be dead.

What are the chances of this all passing in its current form?

 

[James R]

Senator Bob Menendez on the Senate Floor, "Blaming the homeowner alone is not right and its not fair, and it is econmically disasterous. Every broker, lender, realtor, every appraiser, regulator, credit rating agency, investment firm had a role in this storm. I will not let the blame fall to just the homeowner."

How about Fannie, Greenspan, & Congress??

Well we all did have a role. Some of us played the role of making it happen slower. :new_2gunsfiring_v1: Bob

 

[rcsone]

....my opinion is 100% of 98% of contents.....my comparison with the House version passed last month and sent to the Senate which was televised today is the same....google Thomas for HR 3837 or HR 3915(if they have not charged and re-changed the number, then look at Senate 3415 or 2452........bonding to my understanding was added to the Senate bill as it exists today and I am sure the House will agree due to size of their vote numbers of passage.........the Senate will probably vote 85+ for passage...veto proof in both houses....I have no good opinion on AMC's role, liability and bonding(s).....also not sure of Cuomo and the GSE's "separation of lending, appraisal referrals, AMC ownership/relationships after new Czar created.......think their agreement was just to get "air in baloon"........rest of the country and their politicians would naturally be antipathetic to New Yorker telling THEIR local gentry how to behave......would not be tolerated........just a shot fired into the air......lot of mysteries, but I do know there is change coming which creates winners and losers....best to all.........rs

 

[rcsone]

...I would be interested in how anyone thinks the independent appraiser/AMC relation will be influenced by Congessional passage of this bill.....best to all.....rs

 

[PropertyEconomics]

.......regardless of number, this contains "bonding" or bondage.......just figure $100,000 costs $10 for bond and $200,000 costs $20, and etc.........the expense of bond should vary by the credit and asset relations of the bond applicant......as of now E & O will disappear in my thinkings which will offset the majority of added expense(?)..........nearly?........partially?......donot know for sure, but I am confident the insurance companies have worked that out with their Senators for their "share" of the real estate pie......and I have never felt appraisers should not be accountable legally and financially for their responsiblities in work quality........let the punishments and costs incurr for the "profit players" of the industry........afterall, have not they profited by appraisal works most of us refuse to do and they should have their credit and ownings of this monetary world in high condition for this next suitibility examination for the coming RESPONSIBILITY INSPECTORS/CALCULATORS........any suggestions or thoughts on bonding and AMC's?....best to all...........rs

RS .. you have to answer these questions for yourself ... of all the appraisals you did last year what was the total value of the real estate you appraised?
Lets just run trhough theoretical numbers

300 Reports
Avg Value of Property $180,000
$54,000,000 in appraised property

1% Bond Required $540,000

Bond Cost 3% - 5% of total (I have read 1 - 20% but the most predominant is 3% - 5%)

Cost of Bond for an Appraiser $16,200 - $27,000

Cost to Homeowner $54 - $90 per appraisal.

Oh yeah .. you have to pay the fee up front .... Great Plan for Killing the profession.

 

[rcsone]

....believe the decimal point is wrong, PE, but I know better than to do so impolitely....the figure I believe will be closer to other surety bonds of $1 per $10,000 or $180,000 property would be $18.00 depending on appraiser's credit rating, background check, credentials and other assets. Just like criminal bonds' fees are basically 10% of amount....and the amount varies by seriousness, flight risk or whatever......but we have less "criminality" attached to our flights....or do we?

The bond's intention is not to pay for malfeasence the entire appraised value; it would only cover costs of unintended performance with intention, criminal activity covered by a different law of bonding........best to all..........rs

 

[Pittsburgh Pete]

RS .. you have to answer these questions for yourself ... of all the appraisals you did last year what was the total value of the real estate you appraised?
Lets just run trhough theoretical numbers

300 Reports
Avg Value of Property $180,000
$54,000,000 in appraised property

1% Bond Required $540,000

Bond Cost 3% - 5% of total (I have read 1 - 20% but the most predominant is 3% - 5%)

Cost of Bond for an Appraiser $16,200 - $27,000

Cost to Homeowner $54 - $90 per appraisal.

Oh yeah .. you have to pay the fee up front .... Great Plan for Killing the profession.

The bond requirement was removed from the legislation!!! But don't let me stop you guys!

 

[rcsone]

....donot know if I hope you are right or not.....will see......rs

 

[rcsone]

....and you are not......look at S2452--------Title IV--Good Faith and Fair Dealing in Appraisals----Section 401. Duties of Appraisers.----Sec.129C. Duties of Appraisers....(2) QUALIFYING BOND-The term "qualifying bond" means a bond equal to not less than 1 per cent of the aggregate value of all homes appraised by an appraiser of real property in connection with a home mortgage loan.....(A) the bond shall inure first to the benefit of the homeowners who have claims under this title...

There is more, but too much to type.....so Pittsburg Pete,a pair of less "giggles" is in order?....rs

 

[rcsone]

.....Tuesday, June 23rd, should be close to establishing a New World Order in the appraisal business.......the consolidation of minor differences between the House and Senate should happen quick quick legislatively, then it will be passed to the President for his signature prior to the July 4th recess......and as written it is to take effect, as I recall, 180 days from that signature date..........the prior percentage votes on its parts has been the highest bipartisan total of any recent legislation of width and breath.........veto proof passage by Wednesday evening???....Presidential acceptance announcement by Monday, June 21st?..........best to all.....rs