Dear Prospective Member,
Membership in the Appraisal Institute is both a privilege and a duty. Those who endeavor to become a member and ultimately earn an Appraisal Institute designation experience the many benefits of association and industry leadership dating back more than 75 years. Today, leadership by Appraisal Institute remains critically important due to various challenges facing our industry. I remain proud of our national significance and the impact Appraisal Institute has on legislative and regulatory fronts. We hope that you will wisely consider membership within the Appraisal Institute. I invite you to attend our next event, and ask that you make contact with me or any of the board members with any questions you may have. We are looking forward to meeting you.
Keith Russell, MAI
AI NATIONAL NEWS
The Appraisal Institute responded to two comment requests from federal agencies relating to housing finance issues.
The first letter encourages the Federal Housing Administration to implement an agency specific education requirement for placement on the FHA Appraiser Roster. This suggestion comes in response to ongoing concerns expressed to the GRC about the quality of FHA appraisal reports, and specifically, concerns about understanding of HUD-specific appraisal requirements. Click HERE for the link.
The second letter responds to a request for information from the Federal Housing Finance Agency on the current foreclosure crisis. Several proposals are being explored by federal agencies and in all, we advocated the use of professionally designated appraisers in REO appraisals, market rent analysis, and asset management. Click HERE for the link.
ADDITIONAL CHAPTER NEWS
The state Board has filed a proposed fee increase to conform with the Appraisal subcommittee's national registry fee increase. Click here for the document.
The Phoenix Chapter of AI has been working with CoAA and NAIFA to inform Real Estate Commissioner, Judy Lowe, about the misuse of BPOs by sales agents and brokers in Arizona. Commissioner Lowe and her staff met with representatives of the appraisal groups to discuss the misuse of the term “valuation” with regard to BPOs, plus the lack of education and guidance by the RE Department for misleading and poor quality work. There appears to be a lack of understanding by real estate agents of who their “client” is and what the “scope of work” entails. Tom Inserra, SRA, MAI, was instrumental in the preparation of a summary for the Commissioner that illustrates a significant conflict of interest between Frank-Dodd requirements that valuations be independent and unbiased and sales agent’s fiduciary responsibility to their clients that requires advocacy. The appraisers cautioned the commissioner, that real estate agents and brokers cannot be advocates and also provide independent, unbiased BPOs. Refer to the attached “Standards of Care in the Rendering of Price Estimate Valuation Services” which was presented to Commissioner Lowe to assist in an Advisory notice to sales agents and brokers, warning of recent law changes, appraisal law requirements and disclosures that need to be made a part of BPO reports. Refer to Realtor Valuation Services doc. Click here
These meetings prompted Commissioner Lowe to write the following Advisory to Arizona sales agents about their role in writing BPOs.
NAR’S 4/11 statement on Appraiser Independence and Customary and Reasonable Fees. Click Here