FHA policy Unconstitutional

[Lee Lansford]

...

Licensed appraisers in States where FHA is cutting them off without the one year grace period have good grounds to win in court...

And 7-10 years hence when the case is finally heard...what then?

 

[Lobo Fan]

I guess we will have to disagree on this issue. I suspect that practicality and pragmatism will determine the final outcome of this issue. When a mortagee letter comes out stating any policy changes, then we will all know for sure. Until such time it is all pure speculation.

Being certified in Albuquerque is not really that big of a deal. It makes more sense in Santa Fe where there are is a larger number of homes valued over $1 million.

As long as FHA deems me competent to perform their appraisals, I am not going to second guess their judgement. If that changes then I guess I will have to deal with it.

 

[PropertyEconomics]

I guess we will have to disagree on this issue. I suspect that practicality and pragmatism will determine the final outcome of this issue. When a mortagee letter comes out stating any policy changes, then we will all know for sure. Until such time it is all pure speculation.

Being certified in Albuquerque is not really that big of a deal. It makes more sense in Santa Fe where there are is a larger number of homes valued over $1 million.

As long as FHA deems me competent to perform their appraisals, I am not going to second guess their judgement. If that changes then I guess I will have to deal with it.

So what you are saying is you dont mind being in violation of both state and federal law?

 

[Lobo Fan]

I don't think I am in violation. It is not my responsibility to make that determination. I doubt you will find very many that would support your position. It is very extreme.

 

[PropertyEconomics]

I don't think I am in violation. It is not my responsibility to make that determination. I doubt you will find very many that would support your position. It is very extreme.

My view is extreme? When you know the law says you must be certified to perform FHA appraisals and yet you go ahead and do it anyway? That is extreme? I think its called aiding and abetting in the commission of a crime Lobo. Do as you wish ... but law is law.

 

[Mike Phillips]

I guess we will have to disagree on this issue. I suspect that practicality and pragmatism will determine the final outcome of this issue. When a mortagee letter comes out stating any policy changes, then we will all know for sure. Until such time it is all pure speculation.

Being certified in Albuquerque is not really that big of a deal. It makes more sense in Santa Fe where there are is a larger number of homes valued over $1 million.

As long as FHA deems me competent to perform their appraisals, I am not going to second guess their judgement. If that changes then I guess I will have to deal with it.

Well...I'm a taxpayer in Florida where they don't issue the Licensed ticket but my tax dollars still go to insure FHA loans in dozens of other states where the Licensed ticket is still alive and well.

Personally, I don't give a rat's *** what HUD thinks - and you can quote me. When and if HUD or any other entity comes up with an argument convincing me that a individual with "no less than 12 months" of supervised OJT (read 12 months + 1 day) is qualified to appraise any property, in any state, unsupervised, I promise I'll listen.

Until that time, as far as I'm concerned there is no ethical basis for your argument. Until you and many others are willing to acknowledge the truth in what I just said then let the law be enforced.

The fact is, HUD was allowing appraisers who were not qualified to be added to the roster. What is it that you don't get about that statement?

You know damn well an appraiser with 12 months of OJT isn't qualified to appraise anything. I wasn't qualified after only 1 year, you weren't qualified after one year and no other appraiser was qualified either.

FYI, we had the same debate prior to '89 before licensing/certification was enacted. Very accomplished RE agents and brokers who had been appraising off and on for decades were excluded from appraising because they refused to comply with appraisal licensing. All those RE agents and brokers had to do was jump through a few very simple hoops - they elected to whine about it and that was their decision to make.

This is not about you, or me or whether the law change upsests our little bowls of cherries. It is about keeping the unqualified OUT of this business - NOT letting them in in the first place.

 

[Mike Phillips]

PE -

Side note. When the axe finally falls, a mortagee letter issued, whatever, I'm predicting it will not be nearly as restrictive as many would like. This delay by HUD bothers the hell out of me and I'd be willing to bet they are squirming like crazy and searching high and low for loopholes.

One possible solution for the "liberal minded" among them would be to modify the rules regarding who can do FHA appraisals. That is, whether they will accept the inspections by a Licensed appraiser with a sign-off by a Certified. I haven't thought it out fully, but some varitaion in that direction is probably possible even if it would require an extensive modification of their rules and even if it was viewed as a direct violation of the spirit or intent of Congress.

Maybe that's just paranioa talking. I'm just not ready to believe it is a done deal and we are all just waiting for the memo.

 

[RSW]

Anon,

Back in 1999-2000 all of us that were on the FHA panel of appraisers were required to take a 50 question test in order to be able to continue doing appraisals for the FHA. Many of us had been doing them for years. None of us were grandfathered in. If we did not take the test , we were removed from the roster. This is the same thing that is going on right now. If you are licensed, you will be removed from the roster. If you want to remain on the roster you will have to become certified. It is as simple as that.

 

[Bama Bayou]

No! No where were there warnings about Licensed individuals not being able to do FHA appraisals. In fact I'd say that existing FHA Roster Members NEVER CONTEMPLATED there would be an issue.

Why would they? It would be stupid to remove those who have been doing FHA assignments for years upon years. So stupid, you wouldn't imagine that there would be a LAW removing them!

The first time I ever heard of the certified only requirement for FHA appraisers was when the bill came out of the Senate banking committee. Many arguments have previously been made on the forum about the need for licensed appraisers to get certified, but I don't recall anybody contemplating that Congress would force FHA to require it.

 

[BRCJR]

My view is extreme? When you know the law says you must be certified to perform FHA appraisals and yet you go ahead and do it anyway? That is extreme? I think its called aiding and abetting in the commission of a crime Lobo. Do as you wish ... but law is law.

PE, I usually think you are spot on on most topics. As we keyboard there is a HUD definition of 'certified" that would have to come into play, until their letter is public.


I do not think you can find anyone in contempt of the law until that time.

I will only agree, that a licensed is in violation, when you or someone else provides a defintion of 'certified" that Congress states they used in the law.

No guessing what definiton of certifed Congress utilized, but in writing.