The Appraisal Foundation And AI At It Again.

[Stephen J. Vertin MAI]

If this has been posted before, my apologizes. I don't have as much time as I use to and hardly get to read much on the forum as often as I wish. This link is directly off the Appraisal Foundation's website.

https://www.appraisalinstitute.org/assets/1/7/060515_Legislative_Alert_w_attachment_FINAL.pdf

However, as many members of AI know we all received a letter today stating basically that the above is a gross misrepresentation of what is going on. I do not feel comfortable posting the letter but someone may have a link to it on the AI website.

AI is claiming that the current structure is broken. Every two years they change rules and we have become one of the most regulated industries in the country in a matter of years. They also claim that the number of appraisers has dropped off 20 percent since mid-2000 and current regulations are preventing many from entering the industry and the AF takes little feed back from industrial participants. I actually believe these comments to be true.

AI also claims they have not introduced any bill or legislation in any means or manner and they have always and will remain to always have a presences in Washington. This is going to be interesting. I might be biased but it appears AF does not like anyone telling them what they should or should not do. Why would they say all this stuff if most of it is untrue otherwise?

 

[Meandering]

Using the governmental regulatory relief angle, AI is seeking to find a conservative Congressman to introduce the legislation, and a member of the Committee has shown interest.


Primary to these efforts is the dismantling of the current appraiser regulatory structure and the removal of USPAP as the sole Congressionally-authorized set of valuation standards to allow for more "competition" among standards setters. As many of you are aware, AI developed its own set of valuation standards last year.

Whining will get TAF no where.

The Federal Register has issued a comment period for the reduction act, including old and new regulations, and new final rules, including the AMC final rule not yet published. Also they are seeking comment on the redundancy or removal of:

Appraisals: Higher-priced Mortgages

12 CFR Part 34, Subpart G 12 CFR 226.43;12 CFR Part 226, Appx. N and O, and Supp. I [Reg. Z]

12 CFR Part 1026 [Reg. Z] 12 CFR Part 34, Subpart G

12 CFR 226.43; 12 CFR Part 226, Appx. N and O, and Supp. I [Reg. Z]. 12 CFR 226.43; 12 CFR Part 226, Appx. N and O, and Supp. I [Reg. Z].


Appraisals: Appraiser Independence

12 CFR 226.42;12 CFR Part 226, Supp. I [Reg. Z] 12 CFR Part 1026 [Reg. Z]

12 CFR 226.42; 12 CFR Part 226, Supp. I [Reg. Z]. 12 CFR 226.42; 12 CFR Part 226, Supp. I [Reg. Z].

The link to the Federal Register article is:
https://www.federalregister.gov/articles/2015/06/05/2015-13749/regulatory-publication-and-review-under-the-economic-growth-and-regulatory-paperwork-reduction-act

 

[Eli]

The power of the states is big and it is getting bigger by the minute. That is good for some and that is bad for some. Most AI members will benefit and a few will suffer (AMC). What is best for the public is what counts, which is skill and time input. Time input can even overcome skill with enough time input in some cases. Time and skill are a balance relative to the quality of output.

 

[Ken B]

http://blog.appraisalinstitute.org/a-special-message-from-the-AI-president/

The following is an exerpt:

Earlier this week, you may have received or at least heard of a letter from The Appraisal Foundation (TAF) titled “Legislative Alert.” This letter contained inaccurate and incomplete information. Therefore, here’s some information you should know regarding TAF’s letter.

Congressional oversight committees and a few Members of Congress have been reviewing appraisal regulation for several years, and the AI has been asked to offer its suggestions for improving the current system. Some of our suggestions are the following:

• A single national portal to handle licensing applications and renewals, while retaining state regulatory systems. This would simplify administrative burdens and remove barriers to entry.
• Move away from constantly changing USPAP every two years.
• Ensure transparency where public dollars are involved and uphold the highest ethical standards by removing conflicts of interest and self-dealing.

Contrary to what the TAF letter states, it is important to note that no legislation has been introduced. While the AI’s input has been solicited, the AI has not authored any legislation and all stakeholders, including TAF, will be given a fair opportunity to provide input, a process that we support. Let there be no doubt, however, that while we believe the current system should be scrutinized, we also believe that the system is in dire need of modernization.

It also is important to note that the Appraisal Institute’s only interest in this process is knowing that we are protecting and strengthening the appraisal profession.

 

[Stephen J. Vertin MAI]

This is my favorite part and so true:

"Since then, regulations and rules have been piled onto the appraisal community, sometimes with devastating effect. Few can objectively disagree that today, appraiser regulation is too multi-layered, too complex, too dysfunctional and too rules-laden. No other area of real estate is regulated as much as appraisers are regulated".

 

[Meandering]

Ensure transparency where public dollars are involved and uphold the highest ethical standards by removing conflicts of interest and self-dealing.

It also is important to note that the Appraisal Institute’s only interest in this process is knowing that we are protecting and strengthening the appraisal profession.

Move away from constantly changing USPAP every two years.



I like it!

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[Mike Kennedy]

"SUMMARY:
The Appraisal Institute(AI) is approaching members of Congress to sponsor legislation which will
essentially dismantle the current national appraiser regulatory system. Provisions being suggested by
the AI include the elimination of the Appraisal Subcommittee and the removal or significant dilution
of the Congressional authority of The Appraisal Foundation (TAF). Removal of the existing federal
element of the current appraiser regulatory system would cause a breakdown in the uniformity and
consistency in valuation services, at a time when the marketplace is calling for more uniformity,
not fragmentation."

http://www.georgiaappraiserschool.com/xSites/Inspectors/GeorgiaAppraiserSchoolLLC/Content/UploadedFiles/060515 Legislative Alert w attachment_FINAL.pdf

 

[Meandering]

We went over this already.

Go AI!

.

 

[Ken B]

circular argument erro

 

[Pittsburgh Pete]

Someone should have noted that the "summary" was attributed to TAF.