Action Alert

[Pilgrum]

I just received an e-mail from AI urging the opposition of SB 330 – Socialized Appraisal Ordering, Public Disclosure of Appraisals, Prohibitions on Use of Distressed Sales as Comparables.

I do not know if this went out to non members or not.
I do know that all Nevada Appraisers should be aware of the consequences of the passage of this bill.

For example; It will require all real estate appraisals (both residential and commercial, including non-mortgage assignments) that are ordered in the state be assigned to appraisers through the Division of Real Estate (DRE) on a “next on the list” basis;
And you think working with AMCs is bad?
It will also require appraisers to provide copies of appraisals to any person upon request;

And it prohibits the use of short sales and foreclosure sales as comparables by appraisers when developing an opinion of the value of real estate. In some areas those sales ARE the market.

I believe this will, essentially, put all appraisers out of business.

A link, http://www.capwiz.com/appraisal/issues/alert/?alertid=38770501&type=ST Was provided to write your State Senator.

There are three other states that are considering similar legislature. You folks need to get on board as well. This nonsense must be stopped.

 

[William K]

I just received an e-mail from AI urging the opposition of SB 330 – Socialized Appraisal Ordering, Public Disclosure of Appraisals, Prohibitions on Use of Distressed Sales as Comparables.

I do not know if this went out to non members or not.
I do know that all Nevada Appraisers should be aware of the consequences of the passage of this bill.

For example; It will require all real estate appraisals (both residential and commercial, including non-mortgage assignments) that are ordered in the state be assigned to appraisers through the Division of Real Estate (DRE) on a “next on the list” basis;
And you think working with AMCs is bad?
It will also require appraisers to provide copies of appraisals to any person upon request;

And it prohibits the use of short sales and foreclosure sales as comparables by appraisers when developing an opinion of the value of real estate. In some areas those sales ARE the market.

I believe this will, essentially, put all appraisers out of business.

A link, http://www.capwiz.com/appraisal/issues/alert/?alertid=38770501&type=ST Was provided to write your State Senator.

There are three other states that are considering similar legislature. You folks need to get on board as well. This nonsense must be stopped.

So as long as they are not setting fees I would say this would be great, Just imagine the $10,000 , residential 1004 form with a bump up of $500 for a 1004MC form.
Can't wait for the next appraisal order next month!

 

[larryhaskell]

I just talked to a lobbyist (family friend) and she said that a senator from Las Vegas (Snyder) is pusing the bill and it will likely make it out of the Senate. She wasn't sure about the Assembly. The Assc. of Realtors is for the bill but they aren't going to get involved. The Appraisal Institute is involved and their lobbyist is J. J. Jackson from Las Vegas and his number is 702-733-7330.
Apparently Snyder is pushing this bill because he doesn't like appraisers using short sales or bank owned properties in appraisals because it keeps the values down. I assume he must be involved in real estate so its personal with him.

If I hear more I will share.

 

[VegasWayne]

Here's the official biography of Michael Synder, the sponsor of SB330. His education includes attending the Southern Nevada School of Real Estate and his occupation is listed as Real Estate Consultant, Development and Sales. The unintended consequence of this bill would be that no appraisal done in Nevada would be considered credible, so no loans would be approved.

 

[Pilgrum]

Here is Michael Cheshire's, President Nevada Commission of Appraisers of Real Estate
Response to the bill.

 

[Pilgrum]

ACTION ALERT​

I have learned from the Coalition of Appraisers in Nevada (CAN), that Senator Schneider has indicated his intent to amend AB524 to include some portions of SB330 (the foreclosure sale bill) and SB181 (the mandatory green CE bill). ​

SB 330 was not heard in Committee. The following is from
Michael Cheshire, President
Nevada Commission of Appraisers of Real Estate
March 30, 2011
As the bill is written there is a possibility that the Appraisal Standards Board (ASB) could decertify the Nevada Appraiser Licensing and Certification Program, if S.B. 330 is enacted. Nevada appraisals will no longer be compliant with the Uniform Standards of Professional Appraisal Practice (USPAP) which is a federal law requiring Federally Related Transactions (FTR’s) to be compliant. Additionally, this is Nevada law under NAC 645C.400. If this was to occur, virtually all residential and some commercial lending would completely shut down, as there would be no appraisers who could legally appraise property for FRT’s. This would have an extremely negative impact on economic recovery in this state. Appraisers would be put in the awkward position of having to choose which law to violate – the law prohibiting the use of distressed sales or federal/state law which requires compliance with USPAP. It is important that legislators understand that decertification is definitely a possibility and that no state can do anything to pre-empt federal law which requires compliance with USPAP. Further, the Jurisdictional Exception Rule of USPAP goes on to say that, “When compliance with USPAP is required by Federal law or regulation, no part of USPAP can be voided by a law or regulation of a state or local jurisdiction”.
Please refer to the separately attached letter from the Appraisal Standards Board to the Appraisal Subcommittee (ASC) regarding whether or not appraisals that exclude foreclosures and short sales are USPAP compliant.
Another point that the Commission would like to make is that there is a strong possibility that Fannie Mae, Freddie Mac, and FHA could simply stop accepting appraisals on mortgage loans originated in Nevada. This is because they require USPAP compliant appraisals and these appraisals will clearly not be USPAP compliant.

SB181 never made it out of committee
AB524 will be heard before the Senate Commerce, Labor and Energy Committee.

Wednesday, May 4th, 2011, at 1:00pm​

​

PLEASE CONTACT THE COMMITTEE MEMBERS AND AND ASK THEM TO OPPOSE THE BILL IF AMMENDED so it is clear that we are not opposing AB524 itself.
Any person proposing an amendment to a bill being heard by the committee must submit the proposed amendment electronically in pdf format no later than 5 P.M. the day before the meeting

Chair
Michael Schneider mschneider@sen.state.nv.us
Vice Chair
Shirley A. Breeden sbreeden@sen.state.nv.us
David R. Parks dparks@sen.state.nv.us
Alice Copening acopening@sen.state.nv.us
James Settelmeyer jsettelmeyer@sen.state.nv.us
Elizabeth Halseth ehalseth@sen.state.nv.us
Michael Roberson mroberson@sen.state.nv.us