Tidewater Initiative Question?

[Calvin the Airedale]

I am not Mike but I can tell you that thius was thoroughly vetted with The Appraisal Foundation when it first came out and the answer from TAF was....."It does not violate USPAP". And, yes, if the VA wanted to they could make a jurisdictional exception. They fall within the categories for doing so. SEE ATTACHED

If by thoroughly vetted, you mean a conversation held off record between John Brenan and Gerry Kifer, then yes it was "thoroughly" vetted.

So thoroughly, in fact, that the AF has produced no memos, papers, or any other guidance on the conversations and thinking which took place.

Such back room governance and regulation is the worst sort for an organization tasked with setting appraisal standards. It may have been expedient, it may even be typical of the way things get done in DC, but it doesn't seem right and is just another example of the type of things which open the AF for criticism of its oversight and regulation.

 

[Don Clark]

Actually, what the NAR should do is lobby for the same treatment... POC - listing realtor... appraiser has to contact realtor if value is under the contracted SP ...

Lobby who? There are many entities that have jurisdictional exception. The Tidewater Iniative at least in part came about by complaints from Realtors. Since I was part of the original beta test(I live in the Tidewater Region) I know that was the case. We even had a joint meeting between VA Appraisers and local Realtors on the matter, actually as I recall, more than one meeting.

Did not realize you were an advocate for Realtors

Believe me, Realtors do have a powerful voice, and many of us appreciate them. Without them we would not have the work to do that we have. But, they can advocate for their own causes, they don't need our help.

 

[nicholz12]

If by thoroughly vetted, you mean a conversation held off record between John Brenan and Gerry Kifer, then yes it was "thoroughly" vetted.

So thoroughly, in fact, that the AF has produced no memos, papers, or any other guidance on the conversations and thinking which took place.

Such back room governance and regulation is the worst sort for an organization tasked with setting appraisal standards. It may have been expedient, it may even be typical of the way things get done in DC, but it doesn't seem right and is just another example of the type of things which open the AF for criticism of its oversight and regulation.

..... Agreed.

 

[Don Clark]

If by thoroughly vetted, you mean a conversation held off record between John Brenan and Gerry Kifer, then yes it was "thoroughly" vetted.

So thoroughly, in fact, that the AF has produced no memos, papers, or any other guidance on the conversations and thinking which took place.

Such back room governance and regulation is the worst sort for an organization tasked with setting appraisal standards. It may have been expedient, it may even be typical of the way things get done in DC, but it doesn't seem right and is just another example of the type of things which open the AF for criticism of its oversight and regulation.

See the attachement I produced. The VA has jurisdictional exception.

 

[nicholz12]

Lobby who? There are many entities that have jurisdictional exception. The Tidewater Iniative at least in part came about by complaints from Realtors. Since I was part of the original beta test(I live in the Tidewater Region) I know that was the case. We even had a joint meeting between VA Appraisers and local Realtors on the matter, actually as I recall, more than one meeting.

Did not realize you were an advocate for Realtors

Believe me, Realtors do have a powerful voice, and many of us appreciate them. Without them we would not have the work to do that we have. But, they can advocate for their own causes, they don't need our help.

I'm not an advocate ... I am just pointing out what I think are 'questionable' situations.

 

[Mike Kennedy]

1. Then why is it we cannot discuss values that appear they will not make the SP with an AMC, mortgage broker, etc. ?
What am I missing?

TITLE XIV—MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT OF 2010
Subtitle F—Appraisal Activities
SEC. 1471. PROPERTY APPRAISAL REQUIREMENTS.
Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et
seq.) is amended by inserting after 129G (as added by section
1464(b)) the following new section:

‘‘§ 129H. Property appraisal requirements
‘‘(4) REGULATIONS.— ‘‘(A) IN GENERAL.—The Board, the Comptroller of the
Currency, the Federal Deposit Insurance Corporation, the
National Credit Union Administration Board, the Federal
Housing Finance Agency, and the Bureau shall jointly prescribe
regulations to implement this section.
‘‘(B) EXEMPTION.—The agencies listed in subparagraph
(A) may jointly exempt, by rule, a class of loans from
the requirements of this subsection or subsection (a) if
the agencies determine that the exemption is in the public
interest and promotes the safety and soundness of creditors.
‘‘(e) VIOLATIONS.—In addition to any other liability to any person under this title, a creditor found to have willfully failed to
obtain an appraisal as required in this section shall be liable
to the applicant or borrower for the sum of $2,000.

SEC. 1472. APPRAISAL INDEPENDENCE REQUIREMENTS.
(a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by inserting after section 129D
(as added by section 1461(a)) the following new section:

‘‘§ 129E. Appraisal independence requirements
‘‘(a) IN GENERAL.—It shall be unlawful, in extending credit
or in providing any services for a consumer credit transaction
secured by the principal dwelling of the consumer, to engage in
any act or practice that violates appraisal independence as described
in or pursuant to regulations prescribed under this section.
‘‘(b) APPRAISAL INDEPENDENCE.—For purposes of subsection (a),
acts or practices that violate appraisal independence shall include—
‘‘(1) any appraisal of a property offered as security for
repayment of the consumer credit transaction that is conducted
in connection with such transaction in which a person with
an interest in the underlying transaction compensates, coerces,
extorts, colludes, instructs, induces, bribes, or intimidates a
person, appraisal management company, firm, or other entity
conducting or involved in an appraisal, or attempts, to compensate,
coerce, extort, collude, instruct, induce, bribe, or intimidate
such a person, for the purpose of causing the appraised
value assigned, under the appraisal, to the property to be
based on any factor other than the independent judgment of
the appraiser;
‘‘(2) mischaracterizing, or suborning any
mischaracterization of, the appraised value of the property
securing the extension of the credit;
‘‘(3) seeking to influence an appraiser or otherwise to
encourage a targeted value in order to facilitate the making
or pricing of the transaction; and
H. R. 4173—813
‘‘(4) withholding or threatening to withhold timely payment
for an appraisal report or for appraisal services rendered when
the appraisal report or services are provided for in accordance
with the contract between the parties.
‘‘(c) EXCEPTIONS.—The requirements of subsection (b) shall not
be construed as prohibiting a mortgage lender, mortgage broker,
mortgage banker, real estate broker, appraisal management company,
employee of an appraisal management company, consumer,
or any other person with an interest in a real estate transaction
from asking an appraiser to undertake 1 or more of the following:
‘‘(1) Consider additional, appropriate property information, ( << Reconsideration of Value )

including the consideration of additional comparable properties
to make or support an appraisal.
‘‘(2) Provide further detail, substantiation, or explanation
for the appraiser’s value conclusion.
‘‘(3) Correct errors in the appraisal report.

 

[Don Clark]

..... Agreed.

The blind leading the blind

It is perfectly within the spirit of, and the content and context of USPAP for any entity having Jurisdictional Exception to invoke such. If you don't like JE, then lobby for that, not take pot shots at the VA and TAF.

 

[Mike Kennedy]

See the attachement I produced. The VA has jurisdictional exception.

Hi Don, the pdf you posted references appraisal report formats. Is there a similar pdf specifically on the Tidewater Initiative? Thanks in advance.

 

[Mike Kennedy]

The blind leading the blind

It is perfectly within the spirit of, and the content and context of USPAP for any entity having Jurisdictional Exception to invoke such. If you don't like JE, then lobby for that, not take pot shots at the VA and TAF.

re post 36 above and JE

http://appraisersforum.com/showpost.php?p=1585759&postcount=6

 

[Don Clark]

Hi Don, the pdf you posted references appraisal report formats. Is there a similar pdf specifically on the Tidewater Initiative? Thanks in advance.

No, I believe that The Appraisal Foundation stated that a JE was not necessary for the TI. But, that was 2002 and my memory may be wrong. However, if an entity has the authority to invoke JE for one matter it would seem they could do so for another matter?