Issues Affecting the Appraisal Community

Transcription

1 Issues Affecting the Appraisal Community Jefferson L. Sherman, MAI, AI-GRS 2018 Appraisal Institute Vice President Ohio Coalition of Appraisal Professionals Summer Seminar June 19, 2018

2 Today s Highlights Industry changes Appraiser population trends Legislative and regulatory changes Adaptation system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 2

3 Industry Changes system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 3

4 Changing Forces Digital mortgages User needs & touch points system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 4

5 Appraiser Population Trends system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 5

6 U.S. Appraiser Population Last 5 years: about 2% annual decrease Primary reasons o Retirements o Fewer new entrants o Economic factors o Competing technology o Government regulation system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 6

7 Accessibility Issues Inaccessibility in some markets Over-regulation creates problems Improving attractiveness of profession system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 7

8 Regulatory & Legislative Changes system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 8

9 Appraisal Threshold Levels Paperwork Reduction Act review Agencies final rule o Commercial o Residential o Business system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 9

10 CRE Threshold Increase Expected but confounding Increased risk Evaluations Significant concerns system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 10

11 Evaluations Don t believe everything you read on the internet. Abraham Lincoln system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 11

12 Evaluations Required where appraisals exempt Interagency Guidelines qualifications requirements USPAP requirements exceed Exemption from USPAP system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 12

13 GSE Appraisal Waivers Loan purchases and refinances Race to the bottom system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 13

14 AI s Response FHFA should prevent implementation Higher risk for first-purchase loans Economic recovery imperiled system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 14

15 Federal Legislation S. 2155: banking regulation relief Signed into law May 24 Rollback of Dodd-Frank rules AI led efforts to revise bill o Allowance vs. exemption o Clarifying provisions o Rulemaking issues system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 15

16 Other Federal Legislation H.R o Higher Priced Mortgage Loans, USPAP Exemption H.R o VA Hybrid appraisals system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 16

17 Temporary Waiver Requests Oklahoma request withdrawn ASC denied Tennessee request o No shortage in market o Public comments show opposition o Only TriStar affected o Lack of urgency system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 17

18 Adaptation system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 18

19 Adaptation Staying current Technology integration Service industry talk with your clients Diversification of skills, services system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 19

20 Modernizing Appraisal Regulatory Structure Trend shows need for change Last update in 1989 Effect on appraiser population Appraisers choked by regulation system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 20

21 Impact of Regulation Layering effect of regulation o Background checks o Supervisor, trainee requirements o License renewal fees o Course requirements o Mandates to purchase rules system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 21

22 Appraisal Reform Vision Modernize appraisal oversight Improve enforcement Enhance appraisal quality system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 22

23 Recommendations for Change Appraisal Institute suggestions o Multi-state licensure o NMLS example system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 23

24 BUILDING OUR VALUE GAIN NEW SKILLS RAISE YOUR GAME system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 24

25 BUILDING OUR VALUE ABSENT QUALITY, WE WILL BE IRRELEVANT Jeff Sherman, OCAP, June 19, system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 25

26 BUILDING OUR VALUE (cont.) My challenge to you is to CHASE EXCELLENCE. By doing so, you accomplish two things: 1. You raise the value of your services, and 2. You raise the value and sustainability of OUR profession. If you do these things, YOU WILL SUCCEED AND SO WILL WE!!!! system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 26

27 Issues Affecting the Appraisal Community Jefferson L. Sherman, MAI, AI-GRS 2018 Appraisal Institute Vice President Ohio Coalition of Appraisal Professionals Summer Seminar June 19, 2018

28 APPRAISAL INSTITUTE Newest Book: Valuation by Comparison, Forms & USPAP referenced throughout the book. Numerous case studies. Focuses Sales Comparison Approach when data is limited. Discusses alternative methods and logic including: current listings, pending sales, expired listings and historical market activity of subject and the comps. ($40/$50) system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 28

29 APPRAISAL INSTITUTE - OHIO CHAPTER CLASSES: Introduction to Green Buildings: Principles & Concepts (Oct. 24) and Case Studies in Appraising Green Residential Buildings (Oct. 25) Instructor: Sandra Adomatis, SRA system, or transmitted in any form or by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written consent of the publisher. 29