Attached is CoAA's newsletter.

Inside this issue:

• CoAA's Past, Present and Future
• Fannie Mae Announcement released 06/30/2010
• Flagstaff News

We are 450+ members strong and growing - pass the word around.  We are now working on positive changes to the Arizona Appraisal Law. We ask for your support with your comments, time and donations. We are working for you, the Arizona Appraiser! 

Thank you

CoAA is working for you! One of four Coalition Meetings (open to all appraisers) was held Friday, 8/13, to go over changes to the Az Appraisal Board (ABOA) policies, law and rules. We thank those in attendance for their time, suggestions and recommendations. Our next meeting is in Flagstaff this coming Friday, 8/20 (3:00 - 5:00pm at Jotini's on the Green). We encourage all appraisers to attend one of these meetings. It is important that we proceed with all your opinions in hand. After the community meetings and discussion, CoAA will put out a survey to all appraisers for feedback on these issues and then present them to the Board for their review and comments. We encourage all appraisers to put some thought into this topic, and communicate with us over the next month. If we are required to legislate some of these changes, we need to do it in ONE attempt, as ONE VOICE, and we will need to raise money to accomplish this task.

Note: CoAA is not affiliated with any other organizations. CoAA does not promote any designations, or political groups and persons. We are a Non-Profit established to represent the appraisers in Arizona with regard to improvements to our profession on a whole, and to legislate these improvements as needed. We do not offer courses or designations. We will be co-sponsoring several meetings or courses throughout the year, however, to raise monies for our legislative endeavors. CoAA does not discriminate based upon designation or lack thereof. CoAA IS LOOKING OUT for ALL appraisers in Arizona and we want to hear all of your opinions. And, CoAA is GETTING IT DONE! Arizona is a step ahead of the Finance Bill requirement that all AMCs be state licensed. CoAA had the foresight to charge ahead with AMC Legislation this past spring and we got it done!

Important Updates and Information:

Finance Bill 4173 is the biggest reform in appraisal history. It states that the AMCs have to re-negotiate their fee contracts with appraisers within 90-days and pay appraisers a customary and reasonable fee. This will go into effect 10/18/10, when HVCC also sunsets. Appraisers need to be cautioned that they should not sign agreements with AMCs to waive the C & R requirement. These actions are not legal and those AMCs should be reported to the Attorneys General Office (who is required to administer 4173) for this unacceptable practice. Appraisers should be encouraged to state their fees “at market”, and market is not now, it is what fees were paid prior to the AMC boom. This is your time to make things “right”!

- Main points

1. True national appraisal independence standards. Before this, only 3 states had such standards.

2. Sunsets the HVCC. It applies to ALL loans, not just Fannie and Freddie loans, and works to compensate appraisers at a customary and reasonable rate.

3. ASC reform

4. Regulates AMC's in 50 states and 5 territories.

5. FHFA & Consumer Protection Bureau are not part of the ASC (but are on the ASC Board) and sets the bar as to when a appraisal is required (threshold).

The median home price in America right now is $217,000 which means more than 1/2 of the homes in America do not require appraisals.

6. Subprime loans require the security be weighed for the safety of the public. Appraisals are needed if the home is flipped or turned over in 6 months, and often times a second appraisal will be required to make sure there is no collusion between the lender, developer, etc.

7. Allows appraisals to be portable from one lender to another.

8. FHFA and Consumer Protection Bureau have seats on the ASC board which increases the powers of the ASC to oversee the states and the ASC will look at whether the states are getting adequate funding to regulate. They will be creating a grant program to assist states in their enforcement program. ASC will put together a hotline (this was supposed to be part of the HVCC and was never implemented). It will create standards for AVM's. Expect National Registry fees to increase.

9. BPOs are not allowed for purchase of a home (primary use). Can be a supplementary tool but not primary.

10. Study by the GAO on appraisal issues will take as long as 18 months.

11. Customary and reasonable fees are a "gray area" and need to be independently developed through academic studies and independent private sector surveys; no AMC's in the calculations.

Complex assignments are excluded from the survey and are to be paid according to the complexity of the assignment.

Also note that just because the HVCC is sunsetting, Fannie, Freddie and FHA have already adopted portions of HVCC and have incorporated them into their guidelines. The bill is law, but there are still bugs to be worked out.

It is important for ALL appraisers to complete their work product carefully, accurately and with good documentation.

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