How TILA Affects Appraisers

Posted by: McKissock Date: Sep 22, 2016 9:00:00 AM

The Dodd-Frank Wall Street Reform and Consumer Protection Act is the largest reform of our financial regulatory systems since the reforms following the Great Depression. After the Great Recession, Congress passed Dodd-Frank in an effort to protect consumers and the overall financial stability of the United States. Changes in the Act affect nearly every financial regulatory agency in the country. Part of the Dodd-Frank reform was amending four federal statutes: TILA (Truth in Lending Act of 1968), FIRREA (Financial Institutions Reform Recovery and Enforcement Act), RESPA (Real Estate Settlement Procedures Act of 1974), and ECOA (Equal Credit Opportunity Act of 1974).

The most important amendment for appraisers is Section 1427, which changes TILA’s section 129E on appraisal activities. The amendments to TILA are designed to protect both consumers and appraisers from anything that may affect the integrity of an appraisal.

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Topics: Regulatory Changes

FHA Handbook: Comment Deadline Looming

Posted by: Dan Bradley Date: Aug 27, 2014 4:46:51 PM

As an FHA appraiser, have you ever read something in one of the FHA handbooks and thought, “This could have been explained more clearly.”  Have you ever wished you could communicate with HUD/FHA regarding their appraisal requirements?  Even if you don’t have an “in” with anyone at the U.S. Department of Housing and Urban Development, you now have a unique opportunity to make your voice heard.  But time is running out.

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Topics: Regulatory Changes

So You Want to Take on a Trainee Appraiser…

Posted by: Kamie Kennedy Date: Jul 24, 2014 10:30:00 AM

It is no secret that the appraisal industry is in a precarious place due to a dramatic decline in its workforce. One of the key drivers to reversing this trend is attracting young people into the industry; however, tightening profit margins and increased education and training requirements makes it a hard sell. And, this only became more laborious with the recent addition of another coursework requirement from the AQB for trainees and supervisors.  So, not only is it more work for the trainee, it is also a bigger commitment from you, a potential supervisor if you feel compelled.  And even though it’s vital to the growth of the appraisal profession, taking on a trainee is a big deal. This leads us to the obvious question: Is it worth it?   We asked our Senior Appraisal Instructor and two-time Supervisory Appraiser Tracy Martin to share with us some of her thoughts on her own  experience mentoring trainees:

Q: So far you’ve supervised two trainees in your career. How did you pick them?

A: "My first trainee was a family member, but I’m afraid that didn’t last very long. Part of a Supervisor’s role is to direct and correct his or her trainee, and my first trainee didn’t much like the idea of taking directions from his sister. Both of us went into it with the wrong motivations, and that’s the #1 way to kill a supervisor-trainee relationship.

My second trainee picked me. She had been working with another firm and wanted to switch, so she called me to ask about becoming my trainee. At first I told her I wasn’t interested, but she was persistent. As in, calling once a week for eight months persistent. Finally I gave in and said we would give it a try. Despite a rocky start, she brought something important to the supervisor-trainee dynamic that my first trainee hadn’t: she wanted to be there. We both had better motivations for making it work, and long story short, she’s now a partner in my firm."

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Topics: Regulatory Changes, Trends

Forms:Our Friend and Foe? The Return of the Dirty Dozen

Posted by: Kamie Kennedy Date: Apr 11, 2014 11:57:43 AM

Forms can be an appraiser’s friend in that they help you organize and expedite your work. However, forms can become a foe of an appraiser if the focus becomes on filling out the form versus providing information that is truly meaningful to the client. This "form mentality" can lead the appraiser to develop a false sense of security in regards to USPAP compliance of report content.

The Dangers of Form Mentality and SR 2:

To review, STANDARD 2 does not dictate the form, format, or style of real property appraisal reports. The form, format, and style of a report are functions of the needs of users and appraisers. The substantive content of a report determines its compliance with USPAP.  Even if you completely and accurately fill in all the blanks on a standard appraisal report form (even a UAD-compliant form) there is no guarantee that you have complied with STANDARD 2.

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Topics: Regulatory Changes

3 Reasons to Make Upgrading Your Appraisal License a 2014 Resolution

Posted by: Kamie Kennedy Date: Feb 27, 2014 2:38:00 PM

There are a slew of valid reasons to put off upgrading your appraisal license – time, money, effort, etc.  What’s another year, right? But there are 3 reasons why you might want to (re)consider this year as the year to get going on your upgrade to Certified Residential or Certified General. 

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Topics: Regulatory Changes