What is this? "HB 2533 - appraiser is not required to comply with USPAP effective June 15, 2021".

[glenn walker]

I think several might want to jump their E&O policy unless your depending on taxpayers.

Texas is acting like an idiot in many regards. Have a bunch of taxpayers though. LOL

No TEXAS is behind the rest of the Country many States have already gone this way and by end 2022 my guess is all States will have similar provisions. When State Licensing and Boards were first established 1988-1989 NAR had to make sure there was a differentiation between an-Appraisal completed by a Licensed appraiser " V" a CMA=-Competitive Market Analysis or a Broker Price Opinion and to make sure that State Appraisal Boards had no authority-over Realtors and other real estate providers.

Fast forward: Lenders-GSEs and other agencies with the advent of "waivers" initially has some push back from some -State Boards saying they were appraisals. The GSEs quickly made clear they are not appraisals but computer generated and that ended that argument. Now the Lenders-money center banks-GSEs and everyone but appraisers want to open up the Evaluations markets and they want the USPAP club removed from appraisers heads doing them who are fearful their State Board may come after them.

My Guess is FHFA and FRT guidelines will become nationwide at some point and it will Be The Head Shot to outdated small State boards who all operate by their own weird rules. Once all States are on a level playing field and the deminimus loan levels are raised on FRT loans the traditional 1004 type appraisal will be only used on Rural-Complex or high loan balance properties. Whats interesting is the Evaluations has now fallen into the Commercial Camp too.

 

[George Hatch]

The bill isn't going to prevent or inhibit a conscientious licensee from adding in the elements of an appraisal into their eval assignment so it's not really a problem for the appraisers.

 

[Mejappz]

No TEXAS is behind the rest of the Country many States have already gone this way and by end 2022 my guess is all States will have similar provisions. When State Licensing and Boards were first established 1988-1989 NAR had to make sure there was a differentiation between an-Appraisal completed by a Licensed appraiser " V" a CMA=-Competitive Market Analysis or a Broker Price Opinion and to make sure that State Appraisal Boards had no authority-over Realtors and other real estate providers.

Fast forward: Lenders-GSEs and other agencies with the advent of "waivers" initially has some push back from some -State Boards saying they were appraisals. The GSEs quickly made clear they are not appraisals but computer generated and that ended that argument. Now the Lenders-money center banks-GSEs and everyone but appraisers want to open up the Evaluations markets and they want the USPAP club removed from appraisers heads doing them who are fearful their State Board may come after them.

My Guess is FHFA and FRT guidelines will become nationwide at some point and it will Be The Head Shot to outdated small State boards who all operate by their own weird rules. Once all States are on a level playing field and the deminimus loan levels are raised on FRT loans the traditional 1004 type appraisal will be only used on Rural-Complex or high loan balance properties. Whats interesting is the Evaluations has now fallen into the Commercial Camp too.

Including Zoe's state which has permitted Evals that don't comply with USPAP for some time now.

 

[Mejappz]

The bill isn't going to prevent or inhibit a conscientious licensee from adding in the elements of an appraisal into their eval assignment so it's not really a problem for the appraisers.

I don't know the details of the Texas bill--but the one in Florida only asks of the person completing the Eval that they act ethically and competently.

 

[DWiley]

Including Zoe's state which has permitted Evals that don't comply with USPAP for some time now.

That is correct. The appraisal certification law in TN has allowed non-USPAP compliant Evaluations since its inception. It really has not been a big issue. Many appraisers in our state also offer Evaluations as a service.

 

[glenn walker]

Regardless of anybody, s opinion on this issue. The state legislatures elected by the people have passed laws signed by the Governors of their State. Holding hostage bills passed by the people’s representatives by unelected wanna-be politicians is undemocratic.

We are not a Democracy we are a Republic and last I recall the public never in any State Voted for State Licensing Boards and there Directors are appointed not elected. They are all under administrative law. When it comes to Appraisals State Boards are Under The ASC which is a federal agency that oversees state licensing and certification of appraisers and appraisal management companies. The ASC is part of the Federal Financial Institutions Examinations Council (FFIEC), which coordinates federal banking regulators.

Translation : State Boards do what federal regulators tell them to do . They have some leeway when it comes to local and State issues but can be over-ridden. As the Financial players expand loan programs- waivers and Evaluations they want uniformity Nation Wide without individual State Boards telling them what Appraisers can or cannot do. In order to allow appraisers in-these States to do Evaluations without threat by their State Boards under USPAP Violations the laws have to be changed-Its a positive for appraisers otherwise they will lose all those Evaluations to Realtors and Brokers.

In my not so humble opinion -Rather than fight with Individual State Boards it's easier to lobby the State Legislators to pass Evaluation protections and get USPAP issues gone. The State Legislators know if they don't play ball some of those millions in Federal funds suddenly disappear. In my opinion I also think many believe the way Individual State Boards -USPAP and the entire structure is way outdated-ineffective and we need Nationwide Conformity.
I would not be surprised if Licensing in the next 5 years goes Federal where FHFA- and all agencies and Lending laws are more in conformity.

I think Jim-Bob- And Jake over in the Louisianan-Board and some other Pow-Dunk Boards have pissed off the Big Dogs In The Cages at the FTC and the Feds and bankers and GSEs have said enough we have to get control of these loose cannons. But, But, But, What we going to do with 55 State Boards ? who agree on nothing except and waste appraisers money and sell us USPAP every 24 months. Hey Jake Ya think the $600.00 Covid-19 exterior is on the way out ? Response: Yes we have a million Realtors Nationwide and lots of people we can train in a 5 days on-line courses on how to do evaluations and we here at NAR will offer free coursework-free legal hot-line and add another 100,000 to our membership-- Gee Angry-Cat you are so smart : ) LMAO

 

[Mejappz]

Appraisal Institute Advocacy In Action

Appraisal Institute advocates for you, making sure your voice is heard on Capitol Hill, in the state houses, and in your local communities.

www.appraisalinstitute.org

Many financial institutions do not want a USPAP-compliant appraisal when they are permitted to use non-USPAP compliant evaluations. Instead of using the most competent and qualified professional to obtain a market value opinion, financial institutions go to other non-appraiser professionals (i.e., internal bank staff, financial analysts, accountants, brokers/salespersons, etc.) to obtain real estate valuation information. This results in greater risk to the banking system and lost business for appraisers.

 

[TMG]

I smell liberals. USPAP probably doesn't mesh with diversity and higher values for certain markets.

 

[Mejappz]

We are not a Democracy we are a Republic and last I recall the public never in any State Voted for State Licensing Boards and there Directors are appointed not elected. They are all under administrative law. When it comes to Appraisals State Boards are Under The ASC which is a federal agency that oversees state licensing and certification of appraisers and appraisal management companies. The ASC is part of the Federal Financial Institutions Examinations Council (FFIEC), which coordinates federal banking regulators.

Translation : State Boards do what federal regulators tell them to do . They have some leeway when it comes to local and State issues but can be over-ridden. As the Financial players expand loan programs- waivers and Evaluations they want uniformity Nation Wide without individual State Boards telling them what Appraisers can or cannot do. In order to allow appraisers in-these States to do Evaluations without threat by their State Boards under USPAP Violations the laws have to be changed-Its a positive for appraisers otherwise they will lose all those Evaluations to Realtors and Brokers.

In my not so humble opinion -Rather than fight with Individual State Boards it's easier to lobby the State Legislators to pass Evaluation protections and get USPAP issues gone. The State Legislators know if they don't play ball some of those millions in Federal funds suddenly disappear. In my opinion I also think many believe the way Individual State Boards -USPAP and the entire structure is way outdated-ineffective and we need Nationwide Conformity.
I would not be surprised if Licensing in the next 5 years goes Federal where FHFA- and all agencies and Lending laws are more in conformity.

I think Jim-Bob- And Jake over in the Louisianan-Board and some other Pow-Dunk Boards have pissed off the Big Dogs In The Cages at the FTC and the Feds and bankers and GSEs have said enough we have to get control of these loose cannons. But, But, But, What we going to do with 55 State Boards ? who agree on nothing except and waste appraisers money and sell us USPAP every 24 months. Hey Jake Ya think the $600.00 Covid-19 exterior is on the way out ? Response: Yes we have a million Realtors Nationwide and lots of people we can train in a 5 days on-line courses on how to do evaluations and we here at NAR will offer free coursework-free legal hot-line and add another 100,000 to our membership-- Gee Angry-Cat you are so smart : ) LMAO

It's pretty simple.

(7) Notwithstanding any other provision of law, an appraiser may perform an evaluation of real property in connection with a real estate-related financial transaction, as defined by rule of the board, which is regulated by a federal financial institutions regulatory agency. The appraiser shall comply with the standards for evaluations imposed by the federal financial institutions regulatory agency and other standards as prescribed by the board. However, an evaluation may not be referred to or construed as an appraisal.

The problem in Florida is that appraisers have not received any guidance from the board. It's been five years. Last I heard someone sued either the board or the state. Mike who posts here occasionally knows more about the details.

 

[Mejappz]

Btw here is the Texas Bill.

https://capitol.texas.gov/tlodocs/87R/billtext/pdf/HB02533F.pdf#navpanes=0