President s Message. By Gary R. Free MAI, SRA

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1 Utah Chapter News 2009 UTAH CHAPTER LEADERSHIP PRESIDENT GARY R. FREE, MAI, SRA VICE PRESIDENT DANIEL V. BRAMMER, SRA TREASURER WILLIAM E. LIFFERTH, SRA SECRETARY CHRISTOPHER T. DONALDSON, MAI, CCIM PAST PRESIDENT DARRIN W. LIDDELL, MAI, CCIM, MRICS DIRECTOR FRANKLIN B. CLAWSON, MAI DIRECTOR ERIC J. VAN DRIMMELEN DIRECTOR JOHN T. BLANCK ASSOCIATE LIAISON BEN LEFEVRE NORTHERN BRANCH CHAIR CHAD L. RIGBY, MAI SALT LAKE BRANCH CHAIR J. ALLAN PAYNE, MAI, SRA SOUTHERN BRANCH CHAIR STANFORD S. MCCONKIE, JR. REGION REPRESENTATIVE RICK R. LIFFERTH, MAI, SRA REGION REPRESENTATIVE GARY R. FREE, MAI, SRA RESIDENTIAL GUIDANCE/ADMISSIONS CHAIR BLAKE INGRAM, SRA GENERAL GUIDANCE/ ADMISSIONS CHAIR GARY M. SCHEFFNER, MAI MEMBERSHIP DEVELOPMENT & RETENTION JOHN M. ROMNEY, MAI EDUCATION CHAIR JOHN T. BLANCK 2009 CHRISTMAS PARTY CHAIR KRISTEN LOWE PUBLIC RELATIONS CHAIR ROLAND D.ROBISON President s Message By Gary R. Free MAI, SRA I would like to thank, recognize, and yes, applaud those who serve on local, regional and national boards and committees. During the past two years the Appraisal Institute, with the help of Bill Garber, our national political liaison, has been constantly in contact with legislators, government and industry leaders. They have actually taken many negative feeling topics (like HVCC) and turned them to advantages to our industry. Recently you should have received a news from the Appraisal Institute titled, Appraisal Organizations Call on FHA to Build on HVCC, address Brokers and AMC s. This group has taken on four major issues for appraisers. I will quote from the letter the last two regarding fees and AMC s. Thirdly, they called for the FHA to rescind HUD s Mortgage Letter The appraisal coalition pointed out that the pricing restriction in the Department of Housing and Urban Development s Mortgagee Letter is causing many experienced and qualified appraisers to decline FHA appraisal assignments ordered by appraisal management companies because of their belowmarket appraisal fees. And, finally, the groups told the FHA to develop rules and expectations relating to AMC s. The organizations recommended that FHA develop rules and expectations relating to appraisal management company practices, specifically prohibiting unreasonable turnaround times and establishing requirements regarding AMC hiring decisions. INSIDE THIS ISSUE: Presidents Message /2010 Education Calendar 2 Education/Associate News 3 Highlights and Updates 4 Utah Chapter 2009 Officers 5 UAA Update/Chapter Leadership Meetings 6 Newly Designated Mmbrs/Appraiser News 7 JDRF Walk 8 Vision and Mission 9 Last year, while at the leadership development conference (LDAC) in Washington, D.C. there was legislation before Congress to require a $20,000 cash bond for all appraisers. The bill included a hotline number for borrowers, not the lender, should they have a complaint against the appraiser. It was impressive to see over 40 appraisers walking from the Appraisal Institute to Capitol Hill. I was able to speak to the offices of Senator Hatch and Congressman Matheson regarding the problems of this bill. The bill was defeated and most appraisers never really heard about it. This type of lobbying is ongoing with the Appraisal Institute and I am impressed with the results we are seeing. The Appraisal Institute continues to grow in total numbers and new designations. Congratulations to the five new SRAs added to our chapter.

2 PAGE /2010 Education Calendar Course No. Course Title Date Time Location CE Hours Cost General Appraiser Mkt Analysis and Highest and Best Use October 23, 24, 26, (Sunday off) 8:00 am 5:00 pm Courtyard by Marriott S. Holiday Park Drive Sandy, Utah 30 $500 AI Members $550 All Others Advanced Sales Comparison and Cost Approaches Real Estate, Finance, Value and Investment Performance Seminar November 2 7, :00 am 5:00 pm Country Inn and Suites 999 North 500 West, Bountiful November 12, :00 am 4:00 pm Hilton Garden Inn 40 $625 AI Members $725 All Others 7 $175 AI Members $225 All Others 2010 Educational Offerings ** Watch for Early Registration Discounts!** Advanced Applications January :00 am 5:00 pm Country Inn and Suites 999 North 500 West, Bountiful Condemnation Appraising: Principles and Applications February 24 26, 2010 Ski Seminar 8:00 am 5:00 pm Hilton Garden Inn 40 TBD 22 TBD St. George Symposium March 27 and 28, 2010 TBD Abbey Inn, St. George TBD TBD Seminar April 2010 TBD TBD TBD TBD Gen Appraiser Site Valuation and Cost Approach April 23, 24, 26, and 27 (Sunday off) 8:00 am 5:00 pm TBD 30 TBD Bus Practices and Ethics May 6, :00 am 5:00 pm Hilton Garden Inn 7 TBD 7-Hour USPAP Update Course May 7, :00 am 5:00 pm Hilton Garden Inn 7 TBD 15-Hour National USPAP Course June 10 and 11, :00 am 5:00 pm Hilton Garden Inn 15 TBD RE Finance Statistics and Valuation Modeling General Appraiser Income Approach Part 1 Appraisal Curriculum Overview September 23 & 24, :00 am 5:00 pm Country Inn and Suites 999 North 500 West, Bountiful October 15, 16, 18, and 19, 2010 (Sunday Off) 8:00 am 5:00 pm Courtyard by Marriott S. Holiday Park Drive Sandy, Utah 15 TBD 6 TBD Nov 4 & 5, :00 am 5:00 pm TBD 8/15 TBD Seminar Nov 2010 TBD TBD TBD Notes: You may register online at The Utah Chapter reserves the right to change or cancel any of the above-listed offerings. Before making firm plans to attend, check with the Chapter Office.

3 PAGE 3 Education Notes Education Committee By Jeremie Snowder, MAI Education Vice Chair, 2009 Make sure to check the fall schedule for upcoming education, which includes a one-day seminar on Real Estate Finance, Value, and Investment Performance (Nov 12). For those pursuing designation under the old education requirements, our chapter is offering Advanced Sales Comparison and Cost Approaches (Nov. 2-7) and Advanced Applications (Jan ). The new 4-day General Appraiser Market Analysis & Highest and Best Use course is offered October 23 27, The Educational Courses for the 2010 education schedule have been set and I would like to particularly mention a new required course for all designated members with renewal cycles ending 2011 and beyond. The Appraisal Curriculum Overview course is a one-day program for SRA and RM renewal, and a two-day program for MAI, SRPA, and SREA renewal. The class reviews data analysis, land and site valuation, and applications of the approaches to value. Our chapter will be hosting the 2-day version at the end of next year in November 2010, just in time for 2011 renewals. Associate News By Ben LeFevre Associate Liaison, 2009 To all of the associate members working toward MAI: We want to know how many of you would be interested in a demonstration report writing workshop. This is an intensive week long workshop geared toward people who have started their demonstration report and have some of the work completed. If you are interested, call or Ben LeFevre at blefevre@irr.com or call ext. 110."

4 PAGE 4 Highlights and Updates Utah Chapter 2009 Christmas Party By Eric Van Drimmelen Director Don t miss the Utah Chapter Christmas Party December 2, 2009! The party will be held at the Little America Hotel. Watch the mail for your invitation. Branch Information and Upcoming Events Salt Lake Branch A big Thank You to John Potter and Allan Payne for the success of the Salt Lake Branch meeting held June 30 at Zions Bank in Salt Lake City. The attendees were pleased to hear about the City Creek Reserve s Twenty Acre Commercial/Residential Downtown Development Project presented by Mark B. Gibbons, President, City Creek Reserve. and a panel of experts. Following the presentation, the blinds were opened and the attendees were presented with a bird s eye view of the project from the top of the Zions Bank Building. Northern Branch Branch Meeting Dates TBD Chad L. Rigby, MAI, Branch Chair 1433 North Highway 89 Suite 104 Farmington, Utah Chadrigbymai@gmail.com Salt Lake Branch Branch Meeting Dates J. Allan Payne, MAI, SRA 8553 Sugarloaf Lane Sandy, Utah payne@payneappraisal.com Southern Branch Branch Meeting Dates: TBD Stanford S. McConkie, Jr, Branch Chair 393 East Riverside Drive, Ste 102 St. George, Utah stanmj@sutap.com

5 PAGE 5 Utah Chapter of the Appraisal Institute 2009 Officers Gary R. Free, MAI, SRA President Free and Associates garyf@freeandassociates.com Daniel V. Brammer, SRA Vice President DV Brammer and Associates dvbramm@comcast.net William E. Lifferth, SRA Treasurer William E. Lifferth, Inc billif@xmission.com Christopher T. Donaldson, MAI Secretary Cushman & Wakefield of Colorado, Inc chris.donaldson@cushwake.com Darrin Liddell, MAI Past President Integra Realty Resources-Salt Lake City dliddell@irr.com

6 PAGE 6 UAA Update By Frank B. Clawson, MAI Director The UAA recently hosted another successful Summer Symposium, held August 12, 2009 at the Grand America hotel. There were over 250 in attendance, and the appraisal industry (including our chapter members) was well represented. Devon Olson leads the UAA s Symposium Committee, and is to be thanked for his time, energy, and expertise. This year s speakers were Dr. Ed Pierzak of Henderson Global Investors, Dr. Kelly Matthews of Wells Fargo Bank, Scott Wilmarth and Jim Berry of CBRE, Jed Milburn of Apartment Realty Advisors, Troy Hardy of Coldwell Banker Commercial, Gary Wright of Wright Development Group, and James Wood of the David Eccles School of Business at the University of Utah. The presentations were informative and timely, albeit somewhat sobering in the midst of the downturn in the economy/real estate markets. The details of the presentations are too long to enumerate here. However, projection time periods for improving indicators generally ranged from late 2009 through James Wood pointed out drivers of economic growth in Utah, which look to favor our state once the recovery takes hold. These factors include the state s relatively good fiscal condition, quality of life, transportation advantages, national recovery, demographic growth (natural increase) and transition, and labor market advantages. Regarding our residential market, Gary Wright indicated housing below $300,000 (first-time buyer market) will be dominant for 3-5 years. Our chapter s Board of Directors recently approved Jeff Williams, MAI to serve as a UAA trustee. Jeff will replace the vacancy created by Tom Singleton coming off of the board. In addition, John Blanck will soon join the UAA Board of Trustees as our chapter s new liaison to the UAA. The UAA board welcomes Jeff and John. The UAA is currently preparing for next year s legislative session. Issues of note include monitoring HVCC related issues and Utah s recently passed AMC legislation, increased discussion and possible legislation regarding broker price opinions (BPO s), and possible constitutional changes that might allow for limited access disclosure of real estate transaction prices. The disclosure issue has had heightened attention due to issues relating to fairness in the real property assessments and recent intense pressure on assessors across the state. Finally, chapter members should be aware of recent changes at the Utah Division of Real Estate. Mark Steinagel accepted a position with the Division of Occupational and Professional Licensing. The UAA and our chapter leadership are appreciative of the leadership and efforts of Mark Steinagel as past Director. The new Real Estate Division Director is Deanna D. Sabey. Also, chapter member Jeanette Payne was recently appointed to serve on the state s Appraisal Board, along with existing board members Ronald Smith (Chair), chapter member Craig Morley (Vice-Chair), chapter member Paul Throndsen, MAI, and Debra Sjoblom. We appreciate the time and service of all the Appraiser Board members, and are looking forward to working with Ms. Sabey. Chapter Leadership Meetings By William E. Lifferth, SRA Treasurer I was privileged to attend the Chapter Leadership Program put on by the Appraisal Institute in August Turmoil gives us opportunity to make real changes. A visionary will look for ways to further his/her career. While many are reluctant to accept change, a real visionary will look for ways to further his/her career by making real changes. Following are some of the important issues discussed in these national meetings. MEMBERSHIP: Last year, there were 4,000 new members. As of August 2009, there have been 3,500 new members. Total membership is 26,545. Last year we had 120 new MAI designations, and 146 new SRA designations. As of August 2009, we had 68 new MAI designations, and 57 new SRA designations. Our national leadership is working to boost the prestige of the SRA. There is consideration for a new designation for review appraisers, however the national board put this issue on hold in the August board meeting. Many appraisers have the protection attitude, which is to discourage others from joining the profession. HVCC has taught us that new appraisers are entering the profession, with or without our help. It is much better we elevate the profession by inviting all appraisers to join with us so we have a united voice for the industry. Utah Association of Appraisers was designed to fill the need for a united voice, however the AI is in a much better position because of the organization. HVCC. Massive efforts have been made by the national and international leadership concerning the impact of HVCC. Appraisal Management Companies (AMC) have marketed their service as being required by HVCC, however AMC s are not required for all mortgage loans. Direct correspondence lenders are not required to use AMC, nor are FHA lenders. The use of AMC partners has decreased the quality of appraisals because of the AMC requirements of cheaper and faster appraisals. Commercial lenders in some parts of the country are using AMC partners. As an industry, we are making some progress to correct the problems created by AMC partners. Invite all appraisers to unite with Utah Chapter of AI to combat the negative influence of HVCC FINANCES: The downturn in the economy has caused financial losses for Appraisal Institute. The local chapter has experienced some losses, but not nearly as large as National. In 2008, National lost $1.6 $1.7 million. This year, National is looking at a Continued on page 7

7 PAGE 7 Continued from page 6 $1,000,000 loss. Currently, National is operating on a 4.5 month reserve, while some chapters have larger reserves Appraiser News Following is a summary of recent news items which pertain to the appraisal industry as published by the Appraisal Institute. ASSOCIATES: Dues paid by most associates go to National, and not the local chapter. Our local chapter has been providing services to our Associates, however chapters are wanting the national policy changed. Designated dues are higher than Associates. National has encouraged chapters to get more designations to improve the chapter finances. Presently, our Associates have the same level of chapter service as Designated Members. NATIONAL CHANGES: CFO William Zimmerman was hired to replace a department at National, thereby allowing the administrative staff to be decreased. AI President Jim Amorin reported all things are on the table concerning where financial cuts can be made. DESIGNATIONS: It is taking an average of years to earn the MAI designation currently. All designation candidates are encouraged to complete designation requirements quickly. MARKETING: There are marketing programs where National will participate in the cost of advertising. If any of our members have suggestions or connections where specific potential markets would be targeted such as the Bankers or Lawyers publications, please Contact our Chapter Executive Director Sheri Zaugg. WEB SITE: The Utah chapter, with the assistance of National, will be redesigning our chapter web site. INVOLVEMENT: The Utah Chapter board encourages all who Newly Designated Members By Sheri Zaugg Executive Director The Utah chapter of the Appraisal Institute is proud to present the following 2009 Designated members. Congratulations! The FHA is making policy changes which will be effective January 1, 2010 which include the following: prohibition of mortgage brokers and commission based lender staff from ordering appraisals; reduced appraisal validity period from six months to four months; allowance of a second appraisal to be ordered under limited circumstances when a borrower switches from one lender to another the restatement of additional appraisal portability standards, such as the requirement that the first lender must transfer the appraisal to the second at the request of the borrower. The FHA has issued five new Mortgagee letters regarding lender, appraisal management company and appraiser requirements relating to upcoming changes which can be accessed at offices/adm/hudclips/letters/mortgagee/index.cfm; and select documents to Mortgage fraud continues to be a problem having gone up 63 percent in the last year The U.S. Treasury Department has eased new tax rules to make it easier for distressed property owners to restructure loans in order to help avoid a wave of commercial mortgage defaults The Appraisal Institute has recently called on the Federal Housing Administration to reject the Home Valuation Code of Conduct provisions to focus on the enhancement of appraiser independence and closer monitoring of mortgage brokers and appraisal management companies. The letter was signed by the AI, ASA, ASFMRA, and NAIFA. This letter can be viewed at newsadvocacy/dowloads/ltrs_tstmny/2009/ai-asa-asfrma- NAIFA_onFHAHVCCProvisions.pdf The FDIC has added more than 100 lenders to its problem list Commercial real estate is anticipating huge problems as occupancy and rental rates decline and refinancing of CMBS loans becomes extremely difficult. Anthony D. Duncan SRA January 29, 2009 Loren K. Knaphus SRA February 19, 2009 Jeffrey R. Jorgensen SRA May 13, 2009 J. D. Rogers SRA June 6, 2009 M. Trenton Bodell SRA July 8, 2009

8 PAGE 8 JDRF WALK by Gary R. Free, MAI, SRA Thank you so much to all members that supported the JDRF walk. Team Appraisal Institute raised just over $3000 for the Juvenile Diabetes Research Foundation. Over 50 members and their families attended the walks, car show and other activities which were held on August 29 th in Salt Lake County. This was a great activity for the Chapter and we appreciate the donations, participation and interest.

9 PAGE 9 Utah Chapter Vision Statement The Appraisal Institute is the organization of choice for real estate appraisers and property consultants; the Utah Chapter exists solely for the benefit of its members. Utah Chapter Mission Statement: To help members achieve the highest level of success in their chosen profession, by providing the best education, support services, technological tools and business development Utah Chapter of the Appraisal Institute P.O. Box 1287, Centerville, Utah Phone: ; Fax: execdir@ai-utah.com Check the website at: