CoAA News Flash!

Fannie and Freddie HVCC complaint forms/websites are up:

http://www.freddiemac.com/singlefamily/submitting_complaints.html

AMC UPDATE:

AMC REGISTRATION will begin this month. The Appraisal Board has worked very hard to put together a comprehensive Rules First Draft which is now available for review. An updated version was just posted 7/7/10. Go to the Arizona Board of Appraisal website at: http://www.appraisal.state.az.us/ to download the document.

CoAA appreciates the comments and input of all who have taken the time to review the Rules Draft document. With your help, we were able to successfully pass the AMC legislation. Since CoAA is working diligently with the Board to help them develop the Rules that are necessary to enforce the AMC law , we appreciate your ideas on the Rules.

CoAA is also working on the NEXT PROJECT, which is to help the Board put forth a plan for policy and legislative changes to the Appraisal Statutes and enhance the Board's operation. CoAA is also in the process of fund raising in preparation for legislation needed to implement these Board changes. We will have information out to you shortly for your review and comment regarding the Arizona Board of Appraisal.

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CoAA NEWS ALERT!

The Arizona Board of Appraisal posted the initial draft of the AMC Rules on their website yesterday. It is there for your download and review (www.appraisal.state.az.us).

Remember this is the FIRST DRAFT. Several errors were noted at the Rules meeting yesterday that will be corrected immediately. The Rules document has to meet many tests before it becomes final, including public review and comments, legal editing and review, etc. The soonest the Rules process can be completed is late this year. AMC registration will take place on schedule, in July, with licensing fees paid when the Rules are approved.

CoAA is working to make sure our law's intent flows into the Rules and that we cover all items carefully. As described to all in attendance at the AMC Rules meeting 6/29/10, Rules can further explain the color of Blue, but it cannot change the color of Blue to Pink. We can further explain the law's stipulations, but we not change its context.

Please respond to CoAA with any questions or comments you may have

The Finance Bill has some good things in it for us. Reasonable Fees, AMC licensing requirement, etc. But, with Senator Byrd's passing and another senator waffling due to last minute add-ins, they currently do not have enough votes to pass it. The bill may be going back to the drawing board for revisions to achieve the necessary votes to get it passed. We will keep you posted.

AND

HOT OFF THE PRESS.......

Some of the highlights:

1. Lender is held responsible for the appraiser selection, even if they were selected by an AMC.
2. Appraisers MUST be geographically competent and must have the necessary and appropriate data sources for the area in which the property is located.
3. The requirement for an appraiser to produce high quality work must always outweigh fee or turnaround time considerations.
4. Appraisal reports must now have interior photos of kitchen, all baths, main living area, physical deterioration and any recent updates, restoration, remodeling or renovation.
5. Both data and verification sources must be reported for each comparable sale - verification sources include but not limited to, buyer, seller, sellers or buyers agent, closing documents (HUD-1).
6. The lender can no longer change an appraised value. Only the appraiser can do that.
7. Lenders can talk to appraisers, and the appraiser must respond. This does not mean the loan production people can talk to the appraisers.
8. They corrected the way the 1004MC is calculated.

Selling Guide Updates and Additional Guidance on Appraisal-Related Policies

https://www.efanniemae.com/sf/guides/ssg/2010annlenltr.jsp

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/sel1009.pdf

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Senate / House Conference on H.R. 4173

Call to Action!

We need your help! The above mentioned conference is taking place now and we need you to contact your Congressman and Senators. The Finance Bill has been moving, having amendments added and edited. At this point section 4312 (Appraiser Independence Requirements) are not in the amendment. They MUST BE ADDED to the final version. Attached is a word document that you can customize and use when contacting your congressman and senators, and when asking them to support SECTION 4312 Appraiser Independence.

Also please review the bipartisan letter from five congressmen to the house and committee leaders which further amplifies our position on this amendment.

To find you’re Congressman:

1) Go to http://www.house.gov

2) Click on representatives

3) Scroll to your state

4) Select congress person’s website and communicate

To find you’re Senator:

1) Go to http://www.senate.gov

2) Click on senators

SOME GOOD NEWS…………

At this point in the evolution of Finance Bill, the following Customary and Reasonable Fee stipulation was accepted and is apart of HR 4137 (hurrah!). Here is what it says:

“(i) CUSTOMARY AND REASONABLE FEE.—

“(1) IN GENERAL.—Lenders and their agents shall compensate fee appraisers at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised. Evidence for such fees may be established by objective third-party information, such as government agency fee schedules, academic studies, and independent private sector surveys. Fee studies shall exclude assignments ordered by known appraisal management companies.

“(2) FEE APPRAISER DEFINITION.—For purposes of this section, the term ‘fee appraiser’ means a person who is not an employee of the mortgage loan originator or appraisal management company engaging the appraiser, and is—

(A) a State licensed or certified appraiser who receives a fee for performing an appraisal and certifies that the appraisal has been prepared in accordance with the Uniform Standards of Professional Appraisal Practice; or

(B) a company not subject to the requirements of section 1124 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) that utilizes the services of State licensed or certified appraisers and receives a fee for performing appraisals in accordance with the Uniform Standards of Professional Appraisal Practice.

“(3) EXCEPTION FOR COMPLEX ASSIGNMENTS.—In the case of an appraisal involving a complex assignment, the customary and reasonable fee may reflect the increased time, difficulty, and scope of the work required for such an appraisal and include an amount over and above the customary and reasonable fee for non-complex assignments.

Coalition of Arizona Appraisers

The Governor signed into law the Arizona AMC Bill on Tuesday! The Coalition of Arizona Appraisers is now moving forward to help in the writing and implementation of Rules and to help the Arizona Board of Appraisal manage this new task! More detail regarding procedures will follow in our newsletter.

Special thanks to Jay Delich for fearlessly spearheading the AMC project and to Ann Susko for working tirelessly to help create the Arizona AMC Bill. A special thanks also goes to the LaSota Peters team and to Elaine Arena (AI-Phx) for successfully lobbying the bill! Everyone worked very hard to make this happen.

Coalition of Arizona Appraisers

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