AF New Appraisal Practices Board Appointment

[Mike Kennedy]

Appraisal Foundation Appoints Mark R. Linné, EVP at AppraisalWorld, to The Appraisal Practices Board: New Board to Issue Guidance to Appraisers on Emerging Valuation Issues

Trustees of The Appraisal Foundation, a congressionally authorized non-profit organization dedicated to promoting professionalism in appraising through the establishment of appraisal standards and appraiser qualifications, announced Saturday May 22, 2010 the appointment of Mark R. Linné to its newly established Appraisal Practices Board (APB).

In 2009, with the unanimous consent of The Appraisal Foundation Board of Trustees, it was agreed that a new board be established, similar in structure and composition to the already existing independent boards, the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB). According to the Foundation:

The purpose of this third board is to issue voluntary timely guidance to appraisers on emerging valuation issues that are occurring in the marketplace. This guidance will be of assistance to appraisers, appraiser regulators and educators. The new Board will enlist the help of market surveys to identify issues that need to be addressed and will empanel small groups of volunteer Subject Matter Experts (SMEs) to draft the guidance for review and approval by the Board.
​

The need for this type of guidance was underscored with the onset of the declining real estate market. Many appraisers had not previously faced this type of market condition and the impact of foreclosed properties and short sales. Because a majority of state licensed and certified real estate appraisers do not belong to a professional society, they had limited access to guidance. * Untrue. Independent Professional Appraisers avail themselves of ALL professional courses offered across the U.S. including those offered by appraisal organizations.

Mr. Linné, who is the Executive Vice President of Education and Analytics for AppraisalWorld, Inc, had previously served a representative to The Appraisal Foundation’s Industry Advisory Council (IAC) and served on its Appraisal Form Task Force and Alternative Valuation Task Force. The Appraisal Practices Board is expected to begin meeting in July, 2010.

 

[Pittsburgh Pete]

If only appraisal courses were what is offered by professional organizations. As a member of the AI I have access to the LUM library and numerous other resources that provide guidance and direction when tackling a tough assignment. Narrow view of what appraisal organizations have to offer.

 

[RSW]

Why not just have them post here on the Appraiser's forum for the answers?

 

[Pittsburgh Pete]

Great idea--and after several hundred posts the appropriate answer will be as clear as mud!

 

[Ken B]

No More Blank Checks - Mark Linne

Link doesn't work - google it.

 

[Pittsburgh Pete]

http://thefutureofvaluation.com/?p=27

Perhaps this one will work!

 

[Doug Smith SRA]

Fresh Winds

Mark has blog:

My guess is that this blog will quickly disappear, maybe even today. The AF does not care much for its members particpating in forums etc.

Mark Linne Blog

I am more than happy with the appointment. It means someone whose orientation is towards the quantitative is in a position to influence the direction of the industry. However, there will be those who will raise a hue and cry and will claim that any alternative to the 1004 will spell disaster.

Here is a clear statement from the blog. It may scare some, but I could not be more enthusiastic.

I’m going to Arizona on Friday to talk about Alternative Valuation Products.

What are Alternative Valuation Products? In a nutshell, the term is used to describe any product that provides a valuation to a lender, but is not intended to meet the guidelines or format of Fannie and Freddie. In other words-anything besides a 1004.

Ah yes-the venerable 1004. One of the most difficult challenges facing residential appraisers is that they have been forced down the cattle chute of conformity in what type of report they provide to clients. Maybe I’m making this statistic up-but I think that 93.675% of all residential appraisers provide a 1004 appraisal to any client-regardless of the intended use and the intended user. Lenders, lawyers, consumers-it’s always a 1004.

Does that make sense? Is the 1004 the all-purpose appraisal report format? I think not. The 1004 is intended for the needs of Freddie and Fannie. It meets their internal needs, their requirements. It’s not the all-purpose appraisal; but it is the default format for residential appraisals.

I have spoken to thousands of appraisers over the last several years. When I talk about the 1004 or forms in general – I mention that I think that forms have been the ruination of an industry; That residential appraisers have been pushed down a path that makes them really good form-fillers, but often stifles their skills at producing an appraisal. We have been focused far too long on the presentation layer – the report. We have been lead to believe that the report is the appraisal. We have lost sight (some of us at least) that it is the analysis, the process of determining the valuation of a given property that is our job. The form is merely the outcome of our appraisal findings. Form vendors have worked hard to make the form as efficient as possible and they have done a good job.

But at what cost? There are times when I am amazed that so many in our industry look to the 1004 and lament about appraisal fees that are dropping; that volume is down and that the industry is on the ropes.

But not all volumes are down. Last year, by some estimates, more than 12 million valuation products were completed by someone other than an appraiser. Say what? Exactly! These were alternative products that appraisers did not provide to their clients. These were products that for the most part could have been performed by appraisers. This is the alternative valuation product marketplace. Over a billion dollars is spent on these products. This is a billion dollars that could go into your pockets.

What are these products used for?

Here is the feedback from a top-ten lender on how they would like to use alternative valuation products:

1.As a replacement for BPOs in the valuation hierarchy for home equity origination.
2.An alternative to a URAR in non-agency (GSE) or portfolio loans (home equity, private client, consumer finance, community banking).
3.In default management as a replacement for one or all of the BPOs used throughout the process.
4.A replacement or alternative for current valuations in the loan modification programs.
5.Use in quality assurance programs to meet agency requirements.
6.As a second valuation for value dispute resolution and value reconciliation purposes.
I can already hear what you are saying beneath your breath. “The fees are too low.” “I can’t do those appraisals because I cannot meet USPAP requirements and provide that kind of report.” And worst of all-“these types of reports are destroying our industry.”

Nonsense.

My message is simple: alternative valuation products are needed by our clients, and they want appraisers to perform them. Others have seen the need (notably BPOs) and have provided them to their clients for years.

Doug

The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him.—Leo Tolstoy 1897

 

[Ken B]

http://thefutureofvaluation.com/?p=27

Perhaps this one will work!

Even better than "my" link...

 

[panappr]

Enjoyed reading the Comments............

 

[Michigander]

Any other appointments reported?