Our own Magna Carta

[Mike Kennedy]

What's the question? AMCs acting as contracted Agents are authorized by their BANK clients to access appraisal reports. Former "inhouse" quality control, review, processing functions (cost centers) have been contracted out by the BANKS. Bank-owned AMCs are now a Profit Center for the Banks. Independent AMCs provide a "cost competitive" service (hi volume low fee) resulting in LESS COST to their Bank Clients. Less cost enhances Bank gross profits. Either way - the Banks "win" (profit) and are still solely responsible for the actions of their AGENTS.

Along the way - elected officials representing Consumers abdicated THEIR responsibility to hold Banks accountable for THEIR actions and decisions.

THAT must be the Bullseye - ENFORCEMENT OF EXISTING FEDERAL AND STATE LAWS. Well-publicized, LEGAL AND LOBBY EFFORTS AT BOTH LEVELS EXERTING PRESSURE (via $$ contributions to campaigns and VOTES) to motivate legislators to do what they SWORE OATHS to do - on behalf of their constituents - AMERICAN CITIZENS ( that includes consumers, appraisers, realtors, and bank employees). Additional weapons - Class Action lawsuits by thousands, possibly millions, of AFL/CIO members who are CONSUMERS FIRST ........who have suffered due to the FAILURE of Lending Institutions to COMPLY WITH THE LAW.

See prior post advocating including not only the unions but all appraisal orgs, realtors, mortgage broker and CONSUMER organizations combined with ONE VOICE using LEGAL methods and POLITICAL pressure simultaneously.

The marches on Washington which ended the Vietnam War and finally granted Civil Rights to all - involved more than several hundred or thousands of Americans. The success of those movements ( and the original Labor Movement) took the combined efforts of MILLIONS speaking and acting in UNISON.

Food for thought.

 

[Meandering]

Yes, because USPAP does not include anything about contracted agents that I can find.

that includes anything owed to intended users, or clients as also being applicable to their contracted agents, including transmittal of reports. NO where in my USPAP can I find anything that sees we are bound to and must participate with a contracted agent.

Also please help me. I have been looking for your previous post concerning ammendments to title XI. I could not find it, but did find this website:

http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=20&DID=197&DOC=FILE.PDF

And did not see the information you reffered to.

I am not looking for a fight, only looking for all of the applicable information to evaluate for loopholes to this AMC issue before it spreads to the industry as a whole.

I respect your intelligence and the amount of knowledge you have concerning the law. Where you are is not far from here. We are putting together a meeting of our local appraisers in response to the one held in NJ last week. I am extending an invitation to you to come and speak at the meeting. If you will come, please go to the website and click the yes button.

The website is www.PoconoRealEstateNews.com

 

[Pamela Crowley (Florida)]

Don, and many others here, what a GREAT job you are doing!

These issues, if I'm not mistaken, can be put to vote with the membership. With the help of people like Mike Kennedy and the Guild / AFL-CIO attornies, we can make this happen and happen legally.

 

[Mike Kennedy]

§ 225.67 Enforcement.
Institutions and institution-affiliated parties, including staff appraisers and fee appraisers, may be subject to removal and/or prohibition orders, cease and desist orders, and the imposition of civil money penalties pursuant to the Federal Deposit Insurance Act, 12 U.S.C. 1811 et seq., as amended, or other applicable law.
[Codified to 12 C.F.R. § 225.67]
[Source: Section 225.67 added at 55 Fed. Reg. 27773, July 5, 1990, effective August 9, 1990]

http://www.FDIC.gov/regulations/laws/rules/6000-1700.html

§ 225.66 Professional association membership; competency.
(a) Membership in appraisal organizations. A state certified appraiser or a state licensed appraiser may not be excluded from consideration for an assignment for a federally related transaction solely by virtue of membership or lack of membership in any particular appraisal organization.
(b) Competency. All staff and fee appraisers performing appraisals in connection with federally related transactions must be state certified or licensed, as appropriate. However, a state certified or licensed appraiser may not be considered competent solely by virtue of being certified or licensed. Any determination of competency shall be based upon the individual's experience and educational background as they relate to the particular appraisal assignment for which he or she is being considered.

 

[Mike Kennedy]

Yes, because USPAP does not include anything about contracted agents that I can find.

that includes anything owed to intended users, or clients as also being applicable to their contracted agents, including transmittal of reports. NO where in my USPAP can I find anything that sees we are bound to and must participate with a contracted agent.

Also please help me. I have been looking for your previous post concerning ammendments to title XI. I could not find it, but did find this website:

http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=20&DID=197&DOC=FILE.PDF

And did not see the information you reffered to.

I am not looking for a fight, only looking for all of the applicable information to evaluate for loopholes to this AMC issue before it spreads to the industry as a whole.

I respect your intelligence and the amount of knowledge you have concerning the law. Where you are is not far from here. We are putting together a meeting of our local appraisers in response to the one held in NJ last week. I am extending an invitation to you to come and speak at the meeting. If you will come, please go to the website and click the yes button.

The website is www.PoconoRealEstateNews.com

Don& Marion - the Bullseye appears in the post prior to this one. Thanks for the invitation - I am a NEW YORKER ........and as I've posted this morning .......I am .......observing and awaiting replies from the Unions perhaps at the next NJ meeting ......to the questions I posed - PRIOR TO making my own, personal, decision. Regrettably, I am totally swamped with several legal appraisal cases due THIS WEEK - cannot get away to PA. Sorry.

Should I be convinced it is in the best interest of Ethical Appraisers - my voice (for whatever that's worth) will be heard loud and clear. Having no further info on either the OPEIU nor the Appraisers Guild from their website (couldn't even FIND one for the Appraisers Guild, I feel I am not qualified to render any opinions other than recommendations to plan the fight ......wisely, factually, and from a concerted "SINGLE BULLET" basis absent what will appear to be merely a group of disgruntled Appraisers complaining about fees they voluntarily choose to accept. That approach will break the "arrow" before the bowstring has been pulled all the way back.

I suggest we will have A SINGLE SHOT at capturing the necessary attention of policiticians AND CONSUMERS as well as other professionals in the RE Industry whom we MUST motivate to light the fire of change BRIGHT ENOUGH to accomplish something meaningful. Rhetoric alone will fail.

Facts matter. So far, minimal facts about the Guild, the OPEIU, and the currrent state of political clout of the AFL/CIO since the recent MAJOR split of several of their CORE Unions are available.

As such, I'll be glad to participate in threads on the topic. I will definitely attend local meetings which feature Senior Reps from the OPEIU, State Reps from the AFL/CIO, and Mr. Pompeo with hopefully at least several members of the NY Guild.

I believe it is wise to take a "devils' advocate" role designed to promote VERY CAREFUL consideration of .....FACTS....prior to leaping to any unsupported conclusions. Simply put, I do nothing unless I'm 100% behind it. I'm not there yet, but, remain optimistic yet skeptical absent concrete additional facts from all 3 unions. :icon_idea:

I do strongly advise those who havent recently actually READ Title XI (or perhaps never did) .....to get it and read it it. Also suggest heading to the OCC and FDIC websites ...and get the FACTS and the LAWS which apply to the current state of affairs in Mortage Appraising. The one Reg I posted above is just the conclusion but IS the ammo necessary once violations of preceding Regulation Violations are documented in support of any legal actions which WILL be required - in my opinion. http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=20&DID=197&DOC=FILE.PDF

my 0.02.

 

[Meandering]

§ 225.65 Appraiser independence.
(a) Staff appraisers. If an appraisal is prepared by a staff appraiser, that appraiser must be independent of the lending, investment, and collection functions and not involved, except as an appraiser, in the federally related transaction, and have no direct or indirect interest, financial or otherwise, in the property. If the only qualified persons available to perform an appraisal are involved in the lending, investment, or collection functions of the regulated institution, the regulated institution shall take appropriate steps to ensure that the appraisers exercise independent judgment and that the appraisal is adequate. Such steps include, but are not limited to, prohibiting an individual from performing appraisals in connection with federally related transactions in which the appraiser is otherwise involved and prohibiting directors and officers from participating in any vote or approval involving assets on which they performed an appraisal.

(b) Fee appraisers.
(1) If an appraisal is prepared by a fee appraiser, the appraiser shall be engaged directly by the regulated institution or its agent, and have no direct or indirect interest, financial or otherwise, in the property or the transaction.
(2) A regulated institution also may accept an appraisal that was prepared by an appraiser engaged directly by another financial services institution, if:
(i) The appraiser has no direct or indirect interest, financial or otherwise, in the property or the transaction; and
(ii) The regulated institution determines that the appraisal conforms to the requirements of this subpart and is otherwise acceptable. [Codified to 12 C.F.R. § 225.65]
[Source: Section 225.65 added at 55 Fed. Reg. 27773, July 5, 1990, effective August 9, 1990; amended at 59 Fed. Reg. 29501, June 7, 1994]

this is all from http://www.FDIC.gov/regulations/laws/rules/6000-1700.html

AGAIN, it says : "If an appraisal is prepared by a fee appraiser, the appraiser shall be engaged directly by the regulated institution or its agent, and have no direct or indirect interest, financial or otherwise, in the property or the transaction"

Does not say appraisers will be managed, will transmit reports to agents of the lender. It does not give the lender or the lender's agent to set/take fees for engagement of the appraiser.

The argument can be made that by virtue of ownership of a bank, or by default of employment contract AMCs do have an interest in the transaction.

 

[Mike Kennedy]

that's only ONE aspect pertaining to Bank-Owned AMCs..... Now you're catching on Marion.....used PROPERLY, JUDICIOUSLY, AND LEGALLY.... facts speak louder than yells absent .............them.

There's a whole lot more .....in them thar Documents...... for those willing to take the time to research 12C, Title XI, OCC & FDIC Regulations etc.

example: http://www.FDIC.gov/regulations/laws/rules/index.html

 

[Meandering]

Mike,
If you weren't so busy, you could still come to the Poconos, it is full of New York and New Jersey folks anyway, I'm sure you will be comfortable.

Neither Don's New Jersey Group or this PA group are meeting to engage whiners. Nobody has time for that.

Devil's advocate is a good position it opens eyes and ignites creativity of how to solve problems. Devil's advocate is part of the problem solving process that is imperative although seldom understood. But is greatly appreciated here.

We are not forming up to interperate the laws, that is job of lawyers.

The Guild and the AFLCIO have lawyers that might act if we are engaged in making changes. If we can point to some descripency that may exist in the law, then it might be worth exploring, else you are right, all we are left with is whinners. Our job is to bird dog were possibilities may lie, it is for lawyers to explore and engage.

We were exploring a list of what we want from the guild, our members, the real estate industry at large, and how it might be possible given what we already have for regulations. If we can put together a viabile list of reasonable wants based on the profession (and our perception of our profession) as an industry, we have a better fighting chance of being heard.

No one will take it seriously if we band together to say GET RID OF AMCs. Your input is helpful, and you are not being solicited as a ringer to lend credibility. But you're always welcome to attend any meetings here, even if you are a New Yorker, personally, I was raised in Jersey.

 

[Mike Kennedy]

Another week - sure. Booked solid this week. Almost moved to New Milford way back when - too far to commute to Wall Street back then. Nice Victorian Village, hit Shawnee once to ski - bout an hour n half or so. You have my condolences 'bout Joizey ( kidding:icon_mrgreen. When available be more than glad to drive over. Thanks for the invite.

 

[Meandering]

Fine,
You come, I'll buy the beer and you can meet all us ridge running rednecks in the boon docks.