A New Spin on Short Sale Fraud

This is a couple of weeks old, but is certainly timely. The podcast is about 18 minutes long, but you can listen while you search the interwebs for the perfect comparable sales.

Courtesy of the National Association of REALTORS.

Freddie Mac Investigator Robert Hagberg in a podcast from NAR Legal Affairs discusses some of the recent short-sale payoff fraud schemes, such as "flopping," that he’s seeing. He also discusses the various ways—good and bad—that real estate professionals are involved.


HERE is the LINK.

Florida Legislature - Major Fail

Appraiser Active has already posted about CS/HB 5007. The bill is making its way through the legislative committee process. The bill, originally with the title, "Reducing and Streamlining Regulations" includes amendments to statutes regulating several professions. Among them are real estate brokers and real estate appraisers. Two sections related to real estate with the potential to weaken consumer protection.

In addition, the legislature appears to be making an attempt to solve a problem related to how the Uniform Standards of Professional Appraisal Practice is interpreted by some Administrative Law Judges as a result of a Florida Appellate Court ruling. See pages13 and 14 of the Staff Analysis for the explanation.

Below is the language proposed. Other specific references to the Uniform Standards of Professional Appraisal Practice in Chapter 475 Part I and Part II are removed. I'm not sure if the amendments will do what is intended because the section below, from page 19 of the bill, is a major FAIL.

Section 19. Section 475.628, Florida Statutes, is amended to read:


475.628 Professional standards for appraisers registered, licensed, or certified under this part. The board shall adopt rules establishing standards of professional practice that meet or exceed nationally recognized standards of appraisal practice, including those standards adopted by the Appraiser Qualifications Board of the Appraisal Foundation. Each appraiser registered, licensed, or certified under this part must shall comply with the rules Uniform Standards of Professional Appraisal Practice. Statements on appraisal standards which may be issued for the purpose of clarification, interpretation, explanation, or elaboration through the Appraisal Foundation shall also be binding on any appraiser registered, licensed, or certified under this part.

 Please join me, and let your representatives know that the Appraiser Qualifications Board of the Appraisal Foundation does NOT adopt standards of appraisal practice. That would be the Appraisal Standards Board of the Appraisal Foundation.
 
I'm anxious to see what the Appraisal Subcommittee has to say about the proposed language.
 
 

Florida Legislature: Weaken Consumer Protection, Delay AMC Regulation

As if there are not enough negative vibes surrounding the appraisal profession, the Florida Legislature seems to be hell bent on weakening consumer protections in Florida's real estate and appraiser licensing laws, and delaying implementation of Appraisal Management Company registration and regulation.

CS/HB 5007 is making its way through the legislative committee process. The bill, originally with the title, "Reducing and Streamlining Regulations" includes amendments to statutes regulating several professions. Among them are real estate brokers and real estate appraisers. Although some new, necessary language was added to the Committee Substitute bill, there are two sections related to real estate with the potential to weaken consumer protection.

Section 21 of the bill effectively eliminates criminal penalties for certain violations or Chapter 475, Part I, and Sections 22 eliminates criminal penalties for certain violations of Chapter 475, Part II. The logic(?) is spelled out in pages 8 and 9 of the Staff Analysis.

After spending 8 years as an appraisal regulator, the explanation does not wash with me.

The second problem with the bill is the DELAY in the implementation of AMC Registration and Regulation until July 1, 2014. Take a look at the logic(?) presented on page 12 of the Staff Analysis.

This delay is unwise, unnecessary and foolish. Consumers, real estate brokers, real estate appraisers have been paying the price for the lack of AMC regulation. All the reasons for AMC regulation are still valid. Why does the legislature believe folks like THIS deserve to continue operating AMCs in Florida?

Alert the media, and let your representatives know that delay of AMC registration and regulation will hurt consumers.