Title Xi 2004 Georgia's Board Was Correct!

[Bob Ipock]

Right. Title XI does not mention federal loan guarantees by name. However, the federal government does have agencies that do in fact guarantee loans "that could expose the United States government to financial loss". Those loans with a federal guarantee would likely all be covered under XI.

As I said, thoses states that choose not to comply are free to do so.



Our Mission (The ASC)

The ASC's mission is to ensure that real estate appraisers, who perform appraisals in real estate transactions that could expose the United States government to financial loss, are sufficiently trained and tested to assure competency and independent judgment according to uniform high professional standards and ethics.

 

[Couch Potato]

The federal government indirectly guarantees most loans. I give my money to the bank to let them make a loan to a third party. I don't get as much money as I would making the loan directly to the third party, but I have zero risk because the federal government guarantees I will get my money back.

 

[Ben Vukicevich SRA]

"The federal government indirectly guarantees most loans."

Tell that to CitiBank, et als. They'll be glad to hear that...and looking for a check from Uncle Sam. LOL

 

[Francois K. Gregoire]

The federal government indirectly guarantees most loans. I give my money to the bank to let them make a loan to a third party. I don't get as much money as I would making the loan directly to the third party, but I have zero risk because the federal government guarantees I will get my money back.

Greg,

That's a stretch. Agencies of the Federal Government insure deposits (at least a portion of the deposit) against loss in the event the bank, savings institution or credit union goes south. Uncle Sam does not guarantee the loan.

In addition, there are tons of loans made and held by non-banks. Do you include those in the claim that the feds indirectly guarantees most loans?

Those loans with a federal guarantee would likely all be covered under XI.

For certain, you can provide a cite for this supposition.

As far as mortgage loans are concerned, the only ones I know of that are "guaranteed" by an agency of the Federal Government are VA Guaranteed Loans. VA Loans = Federally Related Transaction (ASC definition)?

The other list of loans cited in a prior post may be "insured" by Uncle Sam. That process is a wee bit different than a guarantee, wouldn't you agree?

 

[Couch Potato]

Greg,

That's a stretch. Agencies of the Federal Government insure deposits (at least a portion of the deposit) against loss in the event the bank, savings institution or credit union goes south. Uncle Sam does not guarantee the loan.

In addition, there are tons of loans made and held by non-banks. Do you include those in the claim that the feds indirectly guarantees most loans?

I don't think it is a stretch at all. That guarantee is the only reason the federal government cares and has money at risk.

Although non-bank loans exceed bank loans in terms of dollar value, they do not exceed bank loans in number.

Uncle Sam does not guarantee any individual loan made by a bank (outside of a few specific programs), they guarantee everyone who contributed to the loan pool get their money back. It is not politically feasible to provide guarantees to the middle man that manages the loan pool, aka bank.

 

[Bob Ipock]

FIRREA and the ASC have been with us almost 20 years. Like it or not FIRREA is the law and ASC is the overseer.

State boards who have spent their entire existence fighting against FIRREA and the ASC have accomplished nothing at a huge cost of time, money and confusion to appraisers. Fighting the federal government should be left to state legislators and executive officials and judicial branches.

The STATE BOARDS were and are charged with developing systems that ensure that real estate appraisers involved in FRT's and/or that could expose the United States government to financial loss, are sufficiently trained and tested to assure competency and independent judgment according to uniform high professional standards and ethics.

In addition, these state boards are charged with SOLE RESPONSIBILITY for discipline of appraisers who fail to comply with USPAP and state appraisal regulations.

Most if not all state appraisal boards have FAILED and no other evidence is required than the huge amount of appraisal fraud and incompetence that is exposed on a daily basis in newspapers, web sites and appraisal board meetings.

Much of this fraud could have been prevented if state boards had begun strict compliance with consequences to appraisers unwilling to comply. However, it is difficult to discipline appraisers when state boards have spent so many $$ and so much time failing to comply with their mission.

FIRREA and the ASC are not about which loans are guaranteed or not, they are all about restoring public confidence........which must be currently at an all time low.

 

[Carnivore]

FIRREA and the ASC have been with us almost 20 years. Like it or not FIRREA is the law and ASC is the overseer.

Pretty much this only applies to the Lending community on a national level. Eveything else is at state level. If you want your state appraisers to conduct appraisals for FRT's, Gov agencies and GSE's then you must comply with minimum USPAP. States can(but choose not to) raise standards above USPAP. How we do things for appraisal work outside federal lending is governed solely by the state.

Thats how I read it.

 

[Bob Ipock]

In NC, your standards are USPAP.....not exclusive to FRT's.

SECTION 57A.0500
STANDARDS OF APPRAISAL PRACTICE
57A .0501 Appraisal Standards
Every registered trainee, and licensed and certified real estate appraiser shall, in performing the acts and services of a registered trainee, or licensed or certified real estate appraiser, comply with the following provisions of the "Uniform Standards of Professional Appraisal Practice" promulgated by the Appraisal Standards Board of the Appraisal Foundation: Definitions, Preamble, Ethics Rule, Competency Rule, Scope of Work Rule, Jurisdictional Exception Rule, Statements on Appraisal Standards, and Standards Rules 1, 2 and 3, all of which are hereby incorporated by reference. This incorporation by reference includes subsequent amendments and editions of those provisions.

 

[Fred]

State boards who have spent their entire existence fighting against FIRREA and the ASC have accomplished nothing at a huge cost of time, money and confusion to appraisers. Fighting the federal government should be left to state legislators and executive officials and judicial branches.

It seems like a non issue. You started out by digging up some old letter written by a guy who is not on the board any more - and this was key to me - lnking "fighting" TAF and the ASC with mortgage fraud. That's a pretty inflamatory and you haven't backed it up.

What's more, what you call "fighting" is what others might call democracy. Our job as responsible citizens and members of a "profession" is not to drop to our knees every time a government employee shows up to "help" or tells us what is "right." I have been "fighting" TAF for fifteen years. This has earned me recognition by varioius AF Trustees and ASB members who have read and responded to my letters and incorporated a number of ideas into USPAP.

Ideas are only valid when they can survive trial-by-fire in the adversairial arena we call democracy and due process. My response to the TAF's current request is still in draft form, but it's about 15 pages. I plan to continue to "fight" for what is right and best. I will tell them, though, that if they need a yes-man to call you. :icon_lol:

 

[Bob Ipock]

It was not me that brought up the old letter....it was the original poster.