Interagency Appraisal And Evaluation Guidelines (iaeg)

[Raven59]

Evaluations and BPOs are permitted per Interagency Appraisal and Evaluation Guidelines (IAEG) for real estate transactions as long as the financial institution complies with the guidelines. If oversight is at the federal level, how are states able to add a level of regulation when federal law preempts state law?

Anyone can be used for an evaluation or BPO, if competent. What is the measure of competency? Seems IAEG competency requirements are vague and with little foundation. The exception would be the use of an appraiser.

 

[Meandering]

Evaluations and BPOs are permitted per Interagency Appraisal and Evaluation Guidelines (IAEG) for real estate transactions as long as the financial institution complies with the guidelines. If oversight is at the federal level, how are states able to add a level of regulation when federal law preempts state law?

Anyone can be used for an evaluation or BPO, if competent. What is the measure of competency? Seems IAEG competency requirements are vague and with little foundation. The exception would be the use of an appraiser.

being the regulation is was in effect in 2010, 9 years ago,

well,

states don't regulate banks, which are "interstate commerce" and federally regulated.

states regulate all the bank subcontractor individuals; Realtors, appraisers, inspectors, which the feds gave the states permission to regulate.

.

 

[Meandering]

Anyway,

those "evaluation" things, became an issue when the GSEs did away with their reps and warrants from the lenders. As long as the reps and warrants were in place, it was Appraisals all the way. No skin in the game, have the pizza guy do it.

So why did the GSEs do away with the reps and warrants of the lenders? Well, the government has an 80% ownership stake through their premium stock grab, so if the GSEs lose money it's only the tax payers that are majorly hurt by it, not "real" investors that own lots of expensive stock. See? economic recovery, baby.
.

 

[Raven59]

states regulate all the bank subcontractor individuals; Realtors, appraisers, inspectors, which the feds gave the states permission to regulate.

I'm not phrasing my question properly. I don't mean regulate banks. If a state attempts to regulate the people that can or cannot do BPOs or evaluations, is that in conflict with federal law? So our state law says the only person that can do an appraisal for a "fee" is an appraiser. Is the condition of the "fee" inconsistent with federal law for evaluations and BPOs? It seems the state cannot regulate the qualifications of the person who can provide evaluations and BPOs and remain consistent with federal law. Our current state law is being challenged stating it conflicts with federal law. The challenge - a financial institution can use anyone that is competent (meets the general competency requirements) set forth by IAEG. So if the state tries to regulate the person who does evaluations, like adding requirements to insure competency, doing so may be in conflict with federal law and could face the preemption federal challenge.

 

[chad hampton]

Things would be much more simple if they eliminated the other half dozen words or so that they use when they want an appraisal, but don't want to pay for one. When a federally regulated bank wants a piece of paper with a number on it, it should always come from an appraiser and always be considered an appraisal.

What a novel concept.

 

[Terrel L. Shields]

eing the regulation is was in effect in 2010, 9 years ago,

Same basic requirements as in 1994, except in 2010, banks were told to read the #@$%& thing and examiners told to enforced the #@$%& thing.

 

[Raven59]

Yes, I agree and understand what you are saying. I'm wondering why the state's have not been challenged on adding layers. We are being challenged that adding requirements like PA and NC are in conflict with federal law.

 

[Meandering]

I'm not phrasing my question properly. I don't mean regulate banks. If a state attempts to regulate the people that can or cannot do BPOs or evaluations, is that in conflict with federal law? So our state law says the only person that can do an appraisal for a "fee" is an appraiser. Is the condition of the "fee" inconsistent with federal law for evaluations and BPOs?

Federal Fair Labor Standard Act.

Can you be hired to work for no pay?

Can you have a "business" that produces, yet is not paid?

Do you know any lawyers?

.

 

[Terrel L. Shields]

Yes, I agree and understand what you are saying. I'm wondering why the state's have not been challenged on adding layers. We are being challenged that adding requirements like PA and NC are in conflict with federal law.

Evaluation companies here argue they are exempt from our registered appraiser laws because Evals are federal in character even for state banks (FDIC, not OCC regulated) We want to see if this is fixed in the Ledge next month.

 

[George Hatch]

The states regulate the appraisers, and are free to add pretty much anything extra they want on the appraisers. What they can't do is undermine the federal minimums, which an appraiser wouldn't be able to do in an appraisal assignment under the SOWR anyway.