Mike Kennedy
Elite Member
- Joined
- Sep 28, 2003
- Professional Status
- Certified Residential Appraiser
- State
- New York
Nebraska Bankers Propose to Gut State Appraiser Licensing Law
Two members of the Nebraska legislature with strong ties to the banking sector have introduced a bill that would significantly expand the ability of real estate agents and brokers to perform broker price opinions outside of the real estate listing and sales process. Sponsored by Sen. Kate Mitchell, a board member of Cedar Rapids State Bank, and Sen. Dennis Utter, chairman of the board of Adams County Bank, Legislative Bill 818 was introduced at the request of the Nebraska Bankers Association.
Nebraska Bankers Propose to Gut State Appraiser Licensing Law
Two members of the Nebraska legislature with strong ties to the banking sector have introduced a bill that would significantly expand the ability of real estate agents and brokers to perform broker price opinions outside of the real estate listing and sales process. Sponsored by Sen. Kate Mitchell, a board member of Cedar Rapids State Bank, and Sen. Dennis Utter, chairman of the board of Adams County Bank, Legislative Bill 818 was introduced at the request of the Nebraska Bankers Association.
If L.B. 818 were to pass, brokers and agents would be permitted to perform BPOs for any lender or borrower who is obtaining or extending financing, so long as an appraisal is not required under federal law and no illusion is given by the agent or broker that the BPO is of equivalent quality to an appraisal. Circumstances where BPOs would then be permitted in Nebraska include residential finance transactions by non-bank lenders that fall below the federal de minimis threshold of $250,000, and some business loan transactions that fall under the $1 million federal threshold.
Currently agents and brokers in Nebraska are limited to performing BPOs for the purpose of “assisting buyers or sellers or prospective buyers or sellers in deciding the listing, offering, or sale price of the real property.” Valuation services provided for compensation require an appraisal certification or license and adherence to the Uniform Standards of Professional Appraisal Practice.
The Nebraska Chapter of the Appraisal Institute intends to vehemently fight this extremely unfavorable legislation and will highlight the fact that BPOs are not subject to any enforceable standards and that the training requirements for agents and brokers doing BPOs are very minimal. Since Nebraska has a unicameral legislature, there will only be one opportunity to defeat or amend the legislation, according to Scott DiBiasio, Appraisal Institute manager of state and industry affairs. In states with bi-cameral legislatures, there are usually multiple points in the legislative process where unfavorable legislation can be defeated or modified.
It is possible that similar legislative and regulatory proposals will be forthcoming in other states from the real estate and banking trade groups, Dibiasio said. The Appraisal Institute is encouraging chapters in other states to be extremely vigilant for similar proposals, and to be prepared in advance to respond, he said.
To view a copy of the introduced version of Legislative Bill 818, visit http://nebraskalegislature.gov/FloorDocs/Current/PDF/Intro/LB818.pdf .
Two members of the Nebraska legislature with strong ties to the banking sector have introduced a bill that would significantly expand the ability of real estate agents and brokers to perform broker price opinions outside of the real estate listing and sales process. Sponsored by Sen. Kate Mitchell, a board member of Cedar Rapids State Bank, and Sen. Dennis Utter, chairman of the board of Adams County Bank, Legislative Bill 818 was introduced at the request of the Nebraska Bankers Association.
Nebraska Bankers Propose to Gut State Appraiser Licensing Law
Two members of the Nebraska legislature with strong ties to the banking sector have introduced a bill that would significantly expand the ability of real estate agents and brokers to perform broker price opinions outside of the real estate listing and sales process. Sponsored by Sen. Kate Mitchell, a board member of Cedar Rapids State Bank, and Sen. Dennis Utter, chairman of the board of Adams County Bank, Legislative Bill 818 was introduced at the request of the Nebraska Bankers Association.
If L.B. 818 were to pass, brokers and agents would be permitted to perform BPOs for any lender or borrower who is obtaining or extending financing, so long as an appraisal is not required under federal law and no illusion is given by the agent or broker that the BPO is of equivalent quality to an appraisal. Circumstances where BPOs would then be permitted in Nebraska include residential finance transactions by non-bank lenders that fall below the federal de minimis threshold of $250,000, and some business loan transactions that fall under the $1 million federal threshold.
Currently agents and brokers in Nebraska are limited to performing BPOs for the purpose of “assisting buyers or sellers or prospective buyers or sellers in deciding the listing, offering, or sale price of the real property.” Valuation services provided for compensation require an appraisal certification or license and adherence to the Uniform Standards of Professional Appraisal Practice.
The Nebraska Chapter of the Appraisal Institute intends to vehemently fight this extremely unfavorable legislation and will highlight the fact that BPOs are not subject to any enforceable standards and that the training requirements for agents and brokers doing BPOs are very minimal. Since Nebraska has a unicameral legislature, there will only be one opportunity to defeat or amend the legislation, according to Scott DiBiasio, Appraisal Institute manager of state and industry affairs. In states with bi-cameral legislatures, there are usually multiple points in the legislative process where unfavorable legislation can be defeated or modified.
It is possible that similar legislative and regulatory proposals will be forthcoming in other states from the real estate and banking trade groups, Dibiasio said. The Appraisal Institute is encouraging chapters in other states to be extremely vigilant for similar proposals, and to be prepared in advance to respond, he said.
To view a copy of the introduced version of Legislative Bill 818, visit http://nebraskalegislature.gov/FloorDocs/Current/PDF/Intro/LB818.pdf .
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