Thursday, March 23, 2017

Is There Money in Owning an Appraisal Management Company?

There is not much for me to add to this column (alternate link HERE) about Appraisal Management Companies by Ken Harney. Let's just say, if, in fact "there's a tremendous amount of value" his industry (AMCs) brings to the table, consumers should be aware of it before being forced to pay.

Should consumers be concerned? Here's what HousingWire had to say about one of the biggest AMC players:

"CoreLogic revenue explodes thanks to growing property valuation business"


"According to CoreLogic, the company’s revenue jumped 30% in the second quarter, rising to $500 million from $386 million in the same time period last year."
Looks like the "value" is in owning and running an AMC.

Saturday, March 18, 2017

National Association of REALTORS Appraiser Survey

Back in January of this year, the National Association of REALTORS emailed their REALTOR - Appraiser members. The survey was developed by the National Association of REALTORS Research Department and conducted with the assistance of The Olinger Group. Assistance with wording and development of questions and answers was provided by the NAR Real Property Valuation Committee

Survey results were released yesterday. Please take a look at the publication, Appraiser Trends Study, and let us know what you think.

HousingWire has a synopsis of the findings they find interesting. The quote provided by Bill Brown, NAR President, is encouraging. “The work of an appraiser is indispensable to our industry. Appraisers provide the credible, outside opinion on a property value that agents, lenders, and ultimately the consumer depend on to guide them through a transaction.” 

Tuesday, February 28, 2017

Two New Florida Bills - Amendments to Chapter 475

Two nearly identical bills have been filed for the 2017 Session of the Florida Legislature. On the House side, HB 927 was filed by Rep. Bob Rommel on February 21, 2017. Senator Kathleen Passidomo filed SB 716 of February 16, 2017. The bills are nearly identical, and appear to be attempts to amend Chapter 475, Part II to conform with the Final Rule on Minimum Requirements for Appraisal Management Companies. 

The major difference in the bills appears to be:


  • The Senate Bill requires AMC compliance with the Truth in Lending Act (customary and reasonable fees). The House Bill does not have the same language. (see lines 503 - 505 of SB 716).
  • The House Bill tightens up the restrictions on registration of AMCs by removing the FREAB's discretion to grant registration "after a lapse of time and subsequent good conduct and reputation" for individuals (officers, directors, general partners, managing partners, owners, or persons with 10% or more ownership interests) associated with an AMC applicant. (see lines 297 - 300 of HB 927). The Senate Bill deals with applicants in Section 475.6245 - Discipline of appraisal management companies, and grants the FREAB discretion to deny an application or renewal in the event the above named individuals is guilty of or committed listed violations. (see lines 306 - 323 and 332 - 505 of SB 716).
The filed bills each limit the responsibility of AMCs to their activities related to "covered transactions" or appraisals for "secondary mortgage market participants". This is troubling as the "covered transaction" is means a consumer credit transaction secured by the consumer's principal dwelling. (See lines 154 -155 HB 927 and lines 157 - 158 SB 716).

Language repealing the Post License Education Requirement for Registered Trainee Appraisers is in both bills. As a result of the most recent Appraiser Qualifications Board Real Property Appraiser Qualification Criteria, the post license education requirement had outlived its usefulness. It was confusing to licensees, costly for course providers, and is an unnecessary barrier for trainee appraisers. 

We've got a starting point, and can expect some amendments. Give the bills a close look and let me know what you think. I'll try to keep up with them when they start going through the committee process.

Monday, February 27, 2017

Valuation Expo

Promotion of Appraisal Conferences and events is not a usual topic on Appraiser Active. Breaking a bit with tradition here because the upcoming Valuation Expo is in Florida, and your truly will be participating as a panelist. 

A number of interesting topics and speakers are on the schedule. On Monday, March 20, 2017, from 1:30 P.M until 5:00 P.M, along with  David Berenbaum and Bob Parson, I will be presenting Role of the Appraiser in the 21st Century.The Valuation Expo will be presented at the Caribe Royal in Orlando. Reserve your room here. 

Appraisal Buzz posted a brief preview of the presentation in their email blast today. Take a look. At the link, there is also information about registration, schedule of events, and even a 15% discount by using the code GREGOIRE with your registration. It will be nice to see folks in real life.