FHA policy Unconstitutional

[Lobo Fan]

I am not fighting anything. I am working towards getting certified as you know. It is true that FHA has never before differentiated between licensed and certified and uses the term certified to include licensed appraisers. IMHO they will choose to sidestep that landmine as save themselves a lot of extra work and a potential series of lawsuits. FHA is overwhelmed by work right now. Do you really think they will willingly take on an issue that was not intended by the framers of the law?

 

[PropertyEconomics]

I am not fighting anything. I am working towards getting certified as you know. It is true that FHA has never before differentiated between licensed and certified and uses the term certified to include licensed appraisers. IMHO they will choose to sidestep that landmine as save themselves a lot of extra work and a potential series of lawsuits. FHA is overwhelmed by work right now. Do you really think they will willingly take on an issue that was not intended by the framers of the law?

Choose to sidestep the law? You are kidding right?
If you had attended the last meeting you would have learned that FHA/HUD has been in contact with the state board and YES .. one must be certified to be on the panel. ITS THE LAW .....

 

[James Micozzi]

FHA: The Housing and Economic Recovery Act (HERA) requires FHA-approved appraisers to be state certified or part of a national organization. FHA is expected to only consider certified appraisers for the roster but this could vary state by state for the next 12 months. States with high numbers of certified appraisers (approximately 29) will be required to implement the new rule immediately. The remaining states will have up to 12 months for licensed appraisers to get certification.

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This is patently unconstitutional. If there is anything that is certain about the Constitution
it is that the law has to be uniform throughout the country. MY BOLD You cant have one law for New York and a different law California.
Licensed appraisers in States where FHA is cutting them off without the one year grace period have good grounds to win in court.

BTW, my recent FOIA request for HUD's interpretation of the law were denied. HUD attorneys are claiming attorney/client priveledge and

"the attorney work product protects documents prepared in anticipation of litigation; therefore, this information is being withheld"

Oh really! so, what planet are you living on. there are tons of laws that different from state to state, on a variety of topics, etc. Show me in the Constitution where it states that the laws have to be uniform throughout the country. You can't because it is not the any article or amendment of the constitution. Now, I understand that you feel it is not fair that you are going to be excluded from the FHA roster based on you license level. Life isn't fair. Just get certified, it will be easier on you wallet than spending tens of thousands of dollars on a useless lawsuit.

 

[Lobo Fan]

Federal law does have to apply equally from state to state. FHA can choose to implement the law as they see fit. Sorry I missed your meeting. I was very busy that day and could not get there in time. The middle of the day schedule is often inconvenient for me. No, I cannot suggest a better time.

I still think that FHA will look at how much hassle this thing is going to be and either go back and get a correction from their buddy Barney Frank or just ignore it. With all that is going on right now, who will push enforcement?

Not FHA or the lenders. Maybe that herd of cats known as the certified elites. Not hardly.

 

[AnonApprsr]

Well, you can join the MBREA...

 

[PropertyEconomics]

Federal law does have to apply equally from state to state. FHA can choose to implement the law as they see fit. Sorry I missed your meeting. I was very busy that day and could not get there in time. The middle of the day schedule is often inconvenient for me. No, I cannot suggest a better time.

I still think that FHA will look at how much hassle this thing is going to be and either go back and get a correction from their buddy Barney Frank or just ignore it. With all that is going on right now, who will push enforcement?

Not FHA or the lenders. Maybe that herd of cats known as the certified elites. Not hardly.

Lobo ... you do realize as a holder of a License, and given that FEDERAL LAW says you must be certified to perform the appraisal, that doing so while still being licensed is a violation of not only federal law but also of USPAP which makes it a violation of State law in our state.
No matter what you THINK, the real key is that you and I dont matter .. the law does ... I personally THINK they knew exactly what they were doing and it will not be changed.
I find the licensed attempting to show themselves as being victims as being nonsense .. warning bells have been going off for well over 5 years on this issue ... the simple fact of the matter is most licensed have elected to ignore and now must pay the price. Thats not from an "elitist" certified .. thats simply the truth.

FHA by the way does not Implement Law .... they can interpret it, they can be wrong, but the law itself is pretty clear regarding certified vs licensed ... what may be subject to debate is the date of its implementation .. however, that to appears to be settled as the date the law became effective.

 

[AnonApprsr]

warning bells have been going off for well over 5 years on this issue

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!

 

[PropertyEconomics]

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!

Anon .. you would have to understand the license portion of the law to understand that for a number of years now the Feds have been pushing states to abolish the licensing provision of their law. Many have done so. This is much bigger than FHA its about abolishing the license level nation wide for all appraisal reports. The move has been in the works for a long time and many on this forum have been trying to tell licensed it was coming. Now its here on the FHA side ... expect it to happen in many more areas of appraisal. It WILL happen.

 

[AnonApprsr]

I don't agree that it was so obvious for FHA. It does NOT make any sense (AT ALL) to remove those who have been doing FHA assignments for over 5 years, and even 10 years. Ok, don't let any new Licensed Appraisers on the roster. I can dig that, but to remove the most experienced, and competent members from the roster? That's not right.

 

[PropertyEconomics]

I don't agree that it was so obvious for FHA. It does NOT make any sense (AT ALL) to remove those who have been doing FHA assignments for over 5 years, and even 10 years. Ok, don't let any new Licensed Appraisers on the roster. I can dig that, but to remove the most experienced, and competent members from the roster? That's not right.

Anon .. its LAW .. there is nothing that can be done about it EXCEPT for those appraisers to become certified.

Let me put it this way .. IF my goal was to make everyone certified in the country and those that could not become certified would no longer be doing government business .. what better way than to make it an FHA requirement. Perhaps there were many licensed they wished to remove from the panel but found far less liablity to do it in one fell swoop than by dong it one at a time. I wasnt in the meetings and I dont know what their reasons were, however, their intentions are quite clear. The Feds found a way to achieve a goal. Fair or not, its their rules that we must live by and they found a way to implement a strategy.