July 2010 Board Meeting

[Valerie R. Lanier]

LOS NCPAC Members:

 

I wanted to update our members regarding this month’s recent Board Meeting.  Thank you for those of you who replied with issues that you would like to see addressed at the meeting.  I believe the minutes will be posted to the main NCPAC website, but in the meantime, here is a basic summary of the issues discussed. 

 

This year’s NCPAC conference will be held in Charlotte on October 1, 2010, with the possibility of a “meet & greet” and Board business meeting held the night before. 

 

A great deal of time was spent discussing recent legislation and its impact on appraisers.  The “Jenkins Bill” passed the Senate with all but one vote.  As many of you know, at the 11^th hour Wells Fargo came in and made some final changes in their favor.  The positives for appraisers are as follows:  1) we now have a foot in the door and have a base upon which to build future legislation; 2) the Appraisal Board, rather than the Banking Commission, will be in charge of the administration of the legislation; 3) “Appraisal Management” was defined such that small appraisal shops won’t be labeled as an AMC; and 4) AMC’s must have a certified appraiser on staff.  Important areas of the legislation that will need future amendments:  1) Appraisers will not be prohibited from including an invoice with their appraisal report; 2) The amount of the appraiser’s fee will show up on the HUD statement separate from any AMC’s fee (this is seen as a public trust issue and full disclosure is needed); and 3) “Customary and Reasonable Fees” can be defined as those assignments not received through an AMC.  There was discussion about utilizing a survey in each of our Chapter areas to define what is “customary and reasonable”. 

 

One of the Board members, David DesChamps, provided a copy of an engagement letter he has been using for each of his appraisal assignments.  A sample of his engagement letter will be available either through the main website or in the next Scope edition.  Given the last minute changes to the Bill by Wells Fargo which included the statement that appraisers won’t be paid if they do not complete the assignment, it would be in each of our best interests to start using engagement letters (if you don’t already) for each assignment so that the scope of the assignment is clearly defined (i.e. how many comps will be provided, etc.).

 

Also in regards to questions about geographic competence, the new Fannie Mae selling guide SEL-2010-09 stressed the importance of geographical competence.

 

Valerie R. Lanier

LOS Vice President

NCPAC Board Member

[Valerie R. Lanier]

Take a look at the SEL-2010-09 Fannie Mae selling guide & the final version of the ratified bill.