Citations and Your Good Name

In this video we take a look at how to address citations and what actions should be taken to uphold your good name.

ASB Issues Exposure Draft of Advisory Opinion 13

ASB Issues Exposure Draft of Advisory Opinion 13

The Appraisal Standards Board (ASB) of The Appraisal Foundation recently issued an exposure draft of proposed changes to Advisory Opinion 13. You may be thinking to yourself, why would they issue such an exposure draft now? There’s a good reason for this. Let me refresh your memory.

Advisory Opinion 13 is titled “Performing Evaluations of Real Property Collateral to Conform with USPAP” and it is intended to provide advice and guidance to appraisers when performing appraisals and evaluations for federally-regulated lending institutions. However, when the federal bank regulatory agencies issued revised Interagency Appraisal and Evaluation Guidelines on December 2, 2010, the advice contained in the prior version of AO-13 became outdated. The ASB then removed the outdated guidance of AO-13 from the 2012-2013 edition of USPAP, with the idea of issuing a revised AO-13 at a later date. Apparently, that date has arrived.

Here’s an excerpt from the proposed AO-13: “An evaluation, when performed by an individual acting as an appraiser, is an appraisal. In addition to complying with USPAP, the appraiser must be aware of and comply with any additional assignment conditions and reporting requirements imposed on the assignment.”

The complete exposure draft of the Advisory Opinion can be found here: https://appraisalfoundation.sharefile.com/d/s369fd55dd804257b

Please note that this is merely a draft that has been exposed for public comment. It is not definite or certain that this draft will be adopted in its present form. The ASB is currently seeking comments on this proposed Advisory Opinion, and they may make changes to it if they feel it is necessary.

Subject Property as a Comparable

In this video we address the question “If the subject of an appraisal assignment had recently sold, could it be a comparable sale for itself?”

FHA and HUD Rules for Pools

In this video we discuss the questions “Under FHA and HUD guidelines, how should the appraiser handle a swimming pool? Do the Minimum Property Requirements apply to swimming pools? How should they be handled in winter when they are covered, or winterized?”

Fannie Mae and Freddy Mac Rules

In this video we answer the question “Where can I find the complete rules for appraisers from Fannie Mae and Freddie Mac?”

NREIS Announces Closing, Layoffs

According to the Pittsburgh Business Times, National Real Estate Information Services (NREIS), a Pittsburgh-based appraisal and settlement services provider, has informed the PA Department of Labor and Industry that it will be laying off all of its 215 employees in its Pittsburgh office in mid-February 2013.

According to the notice that NREIS provided to the state, the layoffs would be “as a result of the dissolution and windup” of NREIS.   It is unknown whether the company’s other offices will be closed; however based on the wording in the notice provided to the state, it appears that the company will be ceasing all operations.

It is also not known how the demise of NREIS will affect appraisers who have outstanding invoices for appraisals performed for the company.  Because proper notifications have been made, this situation appears to be wholly different than when Express Financial Services, also of Pittsburgh, abruptly closed its doors in 2007, leaving appraisers on the hook for tens of thousands of dollars of unpaid fees.  Nevertheless, appraisers who have outstanding NREIS invoices would be wise to contact the company to inquire about payment arrangements.

Appraising the Unknown

This video discusses approaches to appraising properties with unknown factors. Some of the topics addressed are Scope of Work, confidentiality, extraordinary assumptions, hypothetical conditions and credible assignment results.