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NAR - Appraisal Institute

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Francois K. Gregoire

Thread Starter
Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Frank - I was under the impression from the last FAR appraisal sub committee that the NAR Appraisal designation program was either a thing of the past or going away - did I misunderstand this?
FWIW, here is the report of the NAR Appraisal Committee to the NAR Board of Directors (November 16, 2007)

1. Tom Heinemann, co-staff executive, provided an update on recent legislative developments. On November 7th the House Financial Services Committee marked up H.R. 3837 the Escrow, Appraisal and Mortgage Services Improvement Act which contains sweeping changes to the regulation of the appraisal industry. H.R. 3837 accomplishes several NAR policy goals including: mandating that appraisal reports be made available to the borrower three days prior to closing; strengthening appraiser independence; defining improper influence in both the Truth in Lending Act, and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), and requiring greater openness and more detailed reporting from the Appraisal Subcommittee. H.R. 3837 would prohibit mortgage originators and those with an interest in the real estate transaction from improperly influencing the appraisal process which is defined as intimidation, bribery, coercion, collusion, extortion and non payment of services. It allows for those with an interest in the real estate transaction to ask the appraiser to provide substantiation, consider additional property characteristics, and fix errors. NAR supported an amendment that clarified that appraisal management companies are subject to the bills improper influence language and required that only licensed appraisers may review reports. The bill also empowers the Appraisal Subcommittee to issue binding regulations in the areas of temporary license recognition, information sharing, and enforcement. H.R. 3837 will likely be considered by the full House, as part of a broader mortgage reform bill. The Senate Banking Committee has also begun work on companion mortgage reform legislation.

2. Past Appraisal Committee Chair, Bob Galliher and Howard Glaser, a housing policy consultant, provided an update on the recent appraisal developments in New York State. Recently, New York's Attorney General Andrew Cuomo filed suit against e-Appraisal-IT, an appraisal management company accused of systematically pressuring appraisers to inflate values for Washington Mutual. The Attorney General subsequently subpoenaed Fannie Mae and Freddie Mac seeking their appraisal analysis for Washington Mutual loans.

3. Chairman Vic Knight reported on his meeting with the Finance Committee to have the Residential Accredited Appraiser (RAA) and the General Accredited Appraiser (GAA) designation program reintroduced into the NAR budget for 2008. Based on the three year budget that was approved by the Board of Directors in May of 2007, this self funded program was scheduled to sunset on December 31, 2007, as approved by NAR's Finance Committee. However, based on actions at the Appraisal Committee meeting in May, 2007, as well as discussions with the Appraisal Institute, it was deemed appropriate for this to continue as an activity within the Appraisal Program in 2008.

4. Committee members received reports from Joe Traynor, NAR appointee to the Appraisal Foundation Board of Trustees, regarding the meeting that took place November 8-10, 2007 in Washington, D.C.

They also heard an update from Frank Gregoire, NAR representative to the Mortgage Bankers Association's Appraisal Fraud Work Group charged with assessing the factors involved in valuation fraud and how those factors can be concretely addressed by the industry in order to reduce the incidence of fraud. The MBA Appraisal Industry Outreach Task Force was created and charged by the Mortgage Banker's Association as a part of an Industry Outreach Project to explore proactive, cooperative solutions to appraisal issues in mortgage fraud that are currently affecting the mortgage banking industry. Among Mr. Gregoire's recommendations to the task force that were accepted were cooperative development and offering of education for appraisers, real estate licensees and mortgage professionals on mortgage and valuation fraud and encouraging lenders to rely more on the competency and experience of appraisers than their fees and turnaround time.

5. The Committee heard a presentation by Timothy Forsythe, CEO, Forsythe Appraisals, LLC on the survey that was responded to by over 1200 certified residential and/or licensed appraisers representing all 50 states and DC and Puerto Rico. The survey revealed that appraisal pressure to increase residential property value for loan approval has increased by 35 percentage points since 2003, representing a 64% increase. Previous regulatory focus has been on lenders who have been under heavy scrutiny. The focus is now shifting to mortgage brokers and real estate agents/brokers based upon their current increasing role in appraisal pressure.

6. The Committee discussed the issues surrounding seller concessions and appraisal management companies, and noted that these were areas for further study.
 

Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
I received an e-mail letter today from the AI about negotiation for consolidation of the AI with the farm appraisers and some other group. No mention was made of merging with the NAR. I have not heard anything from AI about merging with the NAR. How can the AI be considering merging with the NAR and three other organizations at the same time? :shrug:
 

Francois K. Gregoire

Thread Starter
Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I received an e-mail letter today from the AI about negotiation for consolidation of the AI with the farm appraisers and some other group. No mention was made of merging with the NAR. I have not heard anything from AI about merging with the NAR. How can the AI be considering merging with the NAR and three other organizations at the same time? :shrug:
The proposal being considered by the National Association of REALTORS and the Appraisal Institute is AFFILIATION, not a merger. The organizations are talking about the Appraisal Institute becoming an AFFILIATE of the NAR, similar to the relationships between the NAR and the CCIM Institute, the Society of Industrial and Office REALTORS, the REALTORS Land Institute and the Counselors of Real Estate:

http://www.realtor.org/realtororg.nsf/pages/AboutUsRESpecialty?OpenDocument

Such an affiliation with the NAR would not prevent or preclude any merger of the AI with other associations or organizations.
 

Doug Trites

Junior Member
Joined
Oct 17, 2007
Professional Status
Certified Residential Appraiser
State
Michigan
Since most people on this board don't belong to the AI, why do you care what they do? You don't have a dog in the fight.

TC
The point is we do have a dog in the fight. It is my opinion that AI has lost its way and is not operating in the best interest of the Appraisal profession. They are in it for the money. Am I wrong in thinking that AI has been supporting AVM's? They now should be making good money through USPAP ed going through them. I feel they will sell the appraisers out to the highest bidder. Please let me know if I am off base.:(
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
The point is we do have a dog in the fight. It is my opinion that AI has lost its way and is not operating in the best interest of the Appraisal profession. They are in it for the money. Am I wrong in thinking that AI has been supporting AVM's? They now should be making good money through USPAP ed going through them. I feel they will sell the appraisers out to the highest bidder. Please let me know if I am off base.:(
That other dog has been crapping in my yard for way to long?
 
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