HB 2772 - Changes to Appraiser Regs

[Farm Gal]

full text House Bill 2772 of bill in pdf format

05/14/2008 Approved by gov

Will be effective upon publication 7/1/2008

Makes development and delivery of appraisal by non-appraisers subject to fine, excepting ONLY CPS's, attorneys, Insurance Agents, and Licensed Real Estate Brokers (comparative market analysis or broker’s price opinion to a
customer, client or third party for compensation in the ordinary course
of business.)

Also states that bankers can do whatever they want for in-house loans - but if they sell on secondary market they MUST acquire an appraisal by a properly licensed or certified "appraiser" as defined by law.


Most importantly - provides that

...or upon a finding that a person who is not a state certified or licensed appraiser has violated any provision of subsection (a) of K.S.A. 58-4103, and amendments thereto, may impose upon such appraiser or such person a civil fine not exceeding $1,000 for each violation.

 

[Mike Kennedy]

Good Law except it is apparently contradictory in the following aspect: appraisal v valuation (by non appraisers).......

Sec. 2. K.S.A. 58-4102 is hereby amended to read as follows: 58-
4102.As used in this act:
(a) ‘‘Appraisal’’ or ‘‘real estate appraisal’’ means an analysis, opinion
or conclusion prepared by a real estate appraiser relating to the nature,
quality, value or utility of specified interests in, or aspects of, identified
real estate. An appraisal may be classified by subject matter into either a
valuation or an analysis. A valuation is an estimate of the value of real
estate or real property. ​

An analysis is a study of real estate or real property OTHER than estimating value. <<<​

(c) ‘‘Broker’s price opinion’’ and ‘‘comparative market analysis’’​

means an analysis, opinion or conclusion <<<<<<<<<​

prepared by an individual licensed as a real estate broker or salesperson pursuant to K.S.A. 58-3034 ​

et seq., and amendments thereto, relating to the PRICE of specified interests
in or aspects of identified real estate property that is provided to a poten-​

tial customer, client or third party in the ordinary course of business.

__________________________________________________________________________________

IMO ......Estimated Value = Estimated Price $$. A value opinion IS a value opinion.

BPO/CMA/APPRAISAL all render Opinions of Market Value based exclusively, or primarily, on the Sales Comparison Approach to Value.

Market Value Opinion / Market Value Estimate / Market Value / Appraised Value/ Estimated Sale Price

are what they are = Appraisals.

The Semantic shield placed around real estate agents and brokers who APPRAISE daily........... without Equal Liability, Training, nor Ethical Reponsibilities of a Licensed Appraiser ARE most assuredly engaged in appraisal practice without an appraisal license - for $15-50 bucks a throw.

 

[Farm Gal]

Mike The alleged difference is that the BPOs are not supposed to be called or used as appraisals.

In all honesty I really don't care if banks and such elect to use the deminimus dodge to 'not require' an APPRAISAL.

Law doesn't require an appraisal below a certain threshold <shrug> why make folks pay for one. I just have a problem with the borrowers being charged for an appraisal and not getting what they paid for.

I also have headache and heartache over BPO's used and CALLED appraisals for divorce and other usues which really should have an APPRAISAL... instead of a brokers opinion.


In theory this will also hold the lenders minimally accountable!

 

[Greg Bell]

With HUD REO work you must respond to BPO'S when value differs more then 10%.
How do you respond to an arbitrary number made up from some newbie Realtor , it's nuts..

 

[Michigan CG]

Kansas led the nation in appraiser pressure; Iowa and Ohio followed. Hopefully this will also be followed by other states.