Regulator wins TAF CEO position

[RCA]

Wow....from blasting out comp checks to estimates of value for waivers in a few short years....of one's most valuable asset.

I wonder how they do that.....with Zillow? Their realtor buddy with a CMA?

I'd like a link to that...

Most professions can't protect themselves from the competitive forces of the market place for long. Even doctors since a couple of decades now suffer the wrath of used-to-be innocuous hospital and insurance administrators.

We know where this progress is headed with respect to most (i.e. residential and to a lesser extent commercial) appraisal. We all know - or should. It is just progress.

Get your surfboard out and try to ride the waves.

 

[Surf Cat]

I don't like waivers from a business standpoint. But I understand the reasoning behind them.

Sure.... a borrower with a high percentage of equity acquiring a low LTV cash out refi should have access to a product which isn't the full monty.

But why the PDC when there are plenty of licensed, insured, experienced, appraisers whom can competently handle that task? Are the lenders really saving that much money?

How is this "progress" as RCA states, promoting public trust?

 

[Surf Cat]

The lenders look like they're doing okay to me....

 

[djd09]

Regulation and compliance

Appraisal group bucks regulators, hires new leader from within​

By Kyle Campbell March 26, 2024, 8:34 p.m. EDT 4 Min Read

Changes are coming to the appraisal profession's top rulemaking body – just not the kind

Appraisal group bucks regulators, hires new leader from within

Despite pressure from the Consumer Financial Protection Bureau, the embattled Appraisal Foundation tapped its longtime second-in-command to be its next president.

www.americanbanker.com

 

[Non Sequitur]

Regulation and compliance

Appraisal group bucks regulators, hires new leader from within​

By Kyle Campbell March 26, 2024, 8:34 p.m. EDT 4 Min Read

Changes are coming to the appraisal profession's top rulemaking body – just not the kind

Appraisal group bucks regulators, hires new leader from within

Despite pressure from the Consumer Financial Protection Bureau, the embattled Appraisal Foundation tapped its longtime second-in-command to be its next president.

www.americanbanker.com

And this:

"The head of the Consumer Financial Protection Bureau summarized his findings from a yearlong probe into the Appraisal Foundation. He says the "lawmaking body" is not accountable to the public or market forces."

Chopra: 'Insular' Appraisal Foundation unlikely to address bias

The head of the Consumer Financial Protection Bureau summarized his findings from a yearlong probe into the Appraisal Foundation. He says the "lawmaking body" is not accountable to the public or market forces.

www.americanbanker.com

What a mess our profession has become from the top down. Word is we're about to get ran over again, and our new regulatory structure may be worse than what we have now. Pay attention to the politics ladies and gents.

 

[djd09]

TAF flip the bird to the regulators...

 

[djd09]

What a mess our profession has become from the top down. Word is we're about to get ran over again, and our new regulatory structure may be worse than what we have now. Pay attention to the politics ladies and gents.

'Director Chopra also criticized The Appraisal Foundation’s governance structure, which he described as insular and favoring private interests. Specifically, until the end of last year, paying “sponsors” selected around half the members of The Appraisal Foundation’s Board of Trustees. Even after minor modifications to the bylaws, The Appraisal Foundation’s president acknowledged that sponsors, now renamed as “partners,” can nominate themselves as “public interest” trustees, and that the current trustees can elect a full slate of new trustees from companies contributing financially to the regulatory body. Lastly, Director Chopra expressed concerns about the lack of transparency in The Appraisal Foundation’s processes, including the selection of its President. Specifically, The Appraisal Foundation has stopped allowing ASC staff to attend closed deliberations of applicants to boards.'

they will go from bad to worse...deceiving to being deceived

 

[djd09]

CFPB Director Chopra Statement on Appraisal Task Force Report​

MAR 23, 2022

WASHINGTON, D.C. — Consumer Financial Protection Bureau Director Rohit Chopra issued a statement regarding the final report of the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE).
“Today’s report underscores the critical importance of fair and accurate appraisals in residential real estate. Discriminatory home valuations, whether computed by an algorithm or conducted in-person, undermine longstanding goals for fair housing and fair lending across our country.”
“I appreciate the work by Secretary Marcia Fudge and Ambassador Susan Rice in leading this effort. The CFPB will be taking a number of actions to further the work of the task force.”
“First, the CFPB will be taking an active leadership role in the Appraisal Subcommittee of the Federal Financial Institutions Examination Council. Congress has assigned important responsibilities to the Appraisal Subcommittee, and it is important to live up to these expectations. In particular, we will be closely scrutinizing the work of The Appraisal Foundation, which wields enormous power to set standards and levy fees on the professional appraiser community.”
“In addition, along with other federal financial regulators, we will be working to implement a dormant authority in federal law to ensure that algorithmic valuations are fair and accurate. We have already begun to solicit input from small businesses in order to develop a proposed rule, and we are committed to addressing potential bias in these automated valuation models.”
“We will also be taking additional steps through our research, through our supervisory examinations of financial institutions and their service providers, and through law enforcement actions. We welcome input and engagement from the public, the professional appraiser community, and across the residential real estate industry.”

who to trust...neither nor...maybe CFPB should hire relman to sort through this conspiracy

 

[Surf Cat]

Sounds like Chopra went from attack dog to lap dog. He might have been threatened in an alley by a couple of big dudes in rain coats that looked like they worked for Biden. That, or he got his palm padded to step in line and get with the program....

 

[Francois K. Gregoire]

'Director Chopra also criticized The Appraisal Foundation’s governance structure, which he described as insular and favoring private interests. Specifically, until the end of last year, paying “sponsors” selected around half the members of The Appraisal Foundation’s Board of Trustees. Even after minor modifications to the bylaws, The Appraisal Foundation’s president acknowledged that sponsors, now renamed as “partners,” can nominate themselves as “public interest” trustees, and that the current trustees can elect a full slate of new trustees from companies contributing financially to the regulatory body. Lastly, Director Chopra expressed concerns about the lack of transparency in The Appraisal Foundation’s processes, including the selection of its President. Specifically, The Appraisal Foundation has stopped allowing ASC staff to attend closed deliberations of applicants to boards.'

they will go from bad to worse...deceiving to being deceived

The Director claims "The Appraisal Foundation has essentially renamed Sponsors "Partners," whose nominees will almost certainly be added to the BOT. The Appraisal Foundation's new bylaws state that Partners can only nominate trustees. The bylaws permit up to 10 Partner-nominated candidates be put forward in a given election cycle, but do not limit how many total Partner-nominated Trustees can sit on the BOT. The Appraisal Foundation has publicly stated they intend to have between 9 and 10 Partner-nominated Trustees on the Board. Currently, 11 out of 12 Partners are former Sponsors. That means most or all Partner-nominated Trustees will be selected by these Sponsor-Partners."

It just so happens one of my TAF responsibilities is to chair the Trustee Nominating Committee (TNC) for 2024. For the upcoming cycle, there are only THREE Partner vacancies on the board of trustees. Four partners nominated a total of EIGHT individuals for those vacancies. Only three of those nominees will be elected to the board of trustees. That is not "most or all". It is in fact a minority of those nominated. There will be a maximum of 9 - 11 partner nominated trustees on the board at one time.

The Director claims "The Appraisal Foundation has stopped allowing ASC staff to attend closed deliberations of applicants to boards."

Maybe the Director of the CFPB should read the minutes of ASC meetings. See attached minutes of the September 15. 2021 meeting of the ASC. Pages 4 and 5.