New Housing Bill/FHA Loans

[Doug Wegener]

State cerified

I agree, those writting the law should care more about the actual wording of the law.

However,

‘‘(A) be certified— 16
‘‘(i) by the State in which the prop- 17
erty to be appraised is located; or 18
‘‘(ii) by a nationally recognized profes- 19
sional appraisal organization;

I don't think being certified "by a nationally recognized professional appraisal organization" changes much since one must already be "state certified" as just one of many requirements for a designation. At least for designation with AI, ASA, and NAIFA.

Tom McClure, Ohio

I might be wrong but I dont believe you have to be "state certified" to have an IFA designaton with NAIFA. You have to have the same educational requirements but dont actually have to be state certified.

 

[Doug Wegener]

Correct

Yes, but the National Association of Real Estate Appraisers (NAREA) has a "Certified Real Estate Appraiser" (CREA) designation that only requires the designated memer to be a "State Residential Licensed Appraiser adhering to USPAP" or a "State Certified Residential or General Appraiser adhering to USPAP...it iwll be interesting to see if this qualifies under the statute.....seeing how the statute does not specify what constitutes a "Nationally recognized professional appraisers organization" and the NAREA claims 2,000 plus members with members in all 50 states, DC, and several US territories, it would seem that the NAREA meets the statuatory definition.

Thats correct and the only requirement is pay the $105 fee and be licensed.

It does appear that would meet the statutory definition. As I mentioned earlier HUD has authority to issue "interpretative" regulations which should name which organizations qualify.
Until they do, I dont believe we will have an answer to this question.

 

[Tom McClure]

Good point, timd

There are many appraisal designation mills out there and it will be a hoot to see how this shakes out. If one or the other is not permitted by FHA/HUD, they may get sue happy. This could be a real problem, due to very poor wording of the law.

Tom McClure, Ohio

 

[Tom McClure]

Doug, you are partially correct.

IFA Designation,

"Provide proof of State Certification, or meet the current education and experience requirements set by the Appraiser Qualifications Board (AQB) and pass the NAIFA comprehensive exam."

This wording was included to cover those states that did not have the "Certified Residential" licensing level for residential. A few states only had the "Licensed Residential" level available. So, NAIFA required those that only had a state license, must meet Federal Requirements (AQB) for Residential Certification and pass the NAIFA exam, as one of their designation requirements.

Tom McClure, Ohio

 

[timd354]

Good point, timd

There are many appraisal designation mills out there and it will be a hoot to see how this shakes out. If one or the other is not permitted by FHA/HUD, they may get sue happy. This could be a real problem, due to very poor wording of the law.

Tom McClure, Ohio

I think that there is no question that there will be lawsuits over this poorly drafted statute if FHA decides to take "certification" from the AI and NAIFA, but not the NAREA or other organizations that have a national membership...if these organizations meet the definition of "nationally recognized professional appraisal organization" as any organization of appraisers with members in all 50 states and DC clearly does, then I cannot see how the FHA can bar "certifications" from these organizations.

The AI should try to get a lobbyist that is better at drafting statutory language to be inserted into a bill next time.....this language, instead of increasing AI membership, it is going to increase the membership of NAREA and other orgnaizations like it.

 

[TJSum]

Maybe the national AMC's will start issuing "certifications" to their appraisers, how hard would it be for them to morph into a "nationally recognized professional appraisal organization". Maybe their lobbyists were behind this, the HVCC threw much of the conventional work in their direction, maybe this could force many of the Licensees their way for FHA work.

 

[Common Sense]

This is absolutely mindboggling to me. We all have to try and wreck our brains trying to figure out what this statement actually means. The powers that be like AI or the Appraisal Subcommittee should be easily able to clarify this issue for us. I mean what else do they have to do?

 

[Lobo Fan]

Certification does not really make sense because the FHA loan limits are well below $1 million dollars. Certification does not always mean better qualified, or certainly not more ethical. A good licensed appraiser can complete a solid FHA report as well as any certified appraiser. I expect that the authors did not understand the differences.

 

[timd354]

This is absolutely mindboggling to me. We all have to try and wreck our brains trying to figure out what this statement actually means. The powers that be like AI or the Appraisal Subcommittee should be easily able to clarify this issue for us. I mean what else do they have to do?

The AI and the Appraisal Subcommittiee did'nt pass this pathetically poorly written statute (though it is very possbile that the AI's lobbyists had a hand in writing it), so it is not up to them to figure out what it means....besides, what they think it means may have no bearing on how it will be interpreted by the regulators and/or the courts.

 

[Brad Pack]

Doug,

I wish I had the answer. Maybe Brad Pack can fill us in.

Don -

HUD HQ has drafted an interim response to those inquiring about this issue. I will post it here tomorrow. After HUD has issued its official/final response (via Mortgagee letter) I will convey my personal observations/opinions (as a private citizen/taxpayer/LICENSED APPRAISER) to those who tout their "certification" and or designation, as well as, the agenda of the appraisal organization's involved.