They’ve done it again! The Illinois Real Estate Appraisal Board has published another gem of an article in their August 2010 newsletter. So good is the article, in fact, that we felt compelled to reprint it here so that appraisers nationwide can enjoy it.
With the passage of H.R. 4173, lawmakers slipped in a statement referring to appraisers being paid a customary and reasonable fee for assignments in a given market area.
Well…that’s just dandy. What does that mean?
Don’t look to Congress to define it. They’ve already clapped their hands together like blackjack dealers at the end of a shift and moved on to something else.
Is it what an appraiser is paid by an AMC? Is it what a bank pays?
On July 21, 2010, President Obama signed H.R. 4173, which is known by its short title, the Dodd-Frank Wall Street Reform and Consumer Protection Act. It has been widely hailed as the most significant financial and lending reform since FIRREA in 1989.
Much has been made of the “appraiser-friendly” provisions in this new law; some of these are more meaningful than others. This law actually contains a series of amendments to existing federal laws, including the Truth in Lending Act (TILA), the Equal Credit Opportunity Act (ECOA), and the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).
Almost lost in the excitement and anticipation of the impending Dodd-Frank Financial Reform Bill, Fannie Mae issued Announcement SEL 2010-09 on June 30, 2010. This announcement related to updates to Fannie Mae’s selling Guide and provided additional guidance on several issues, many of which were appraisal-related.
Listed below are the most significant provisions for appraisers. They are, however, not the only issues addressed. A link to this announcement, which features clickable links to relevant portions of Fannie Mae’s Selling Guide, is available online at www.McKISSOCK.com/appraisal.
The ASC emerged as a big winner in financial reform, as its powers were greatly expanded. It now has the authority to make grants to state licensing and enforcement agencies for the purpose of aiding enforcement. The national registry fee paid by each appraiser is increased to a minimum of $40, and is capped at $80. The ASC also will maintain a registry of AMCs (more on that later). The ASC may temporarily remove an appraiser or an AMC from the national registry for an interim period, pending state agency disciplinary action, and it also has the authority to impose actions and sanctions on state enforcement agencies, as an alternative to “derecognition.”
The widespread use of Chinese-made drywall throughout the U.S. between 2004 and 2008 continues to become more apparent, as more and more homes are being found to have this type of drywall. Once thought to be a localized problem in the southeastern United States, the U.S. Consumer Product Safety Commission (CPSC) reports that it has received complaints about Chinese-made drywall in 37 states.
Drywall from several Chinese manufactures has been found to emit sulfurous gases, including carbon disulfide, carbonyl sulfide, and hydrogen sulfide. These gases commonly have an odor resembling rotten eggs; however the absence of odor does not mean that the drywall is free of these gases. Exposure to these gases can cause sickness in humans, most commonly respiratory infections, headaches, and sinus problems. The gases also react with copper, causing wiring, pipes, air conditioning coils, and appliances to deteriorate and fail prematurely.
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