The Georgia Real Estate Appraisers Board (GREAB) consists of the following five members:
The Real Estate Commissioner acts as the Board's Chief Executive Officer. This blog will provide comments on current appraisal topics and summaries of the Board's Monthly meetings for interested appraisers and members of the public.
Saturday, 22 November 2008
Federal financial regulatory agencies have proposed new interagency appraisal and evaluation guidelines that will affect both residential and commercial real estate appraisers. The proposed guidelines are intended to clarify the agencies' real estate appraisal regulations and promote a safe and sound real estate collateral valuation program.
The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (FRS), Federal Deposit Insurance Corporation (FDIC), Office of Thrift Supervision (OTS), and National Credit Union Administration (NCUA) jointly published the guidelines on November 19, 2008. Interested parties may comment on the guidelines until January 20, 2009.
The guidelines will supersede the 1994 Interagency Appraisal Evaluation Guidelines, and incorporate subsequent revisions. The new rules will also reflect revisions to the Uniform Standards of Professional Appraisal Practice (USPAP) and the evolution of collateral valuation practices such as the use of automated valuation models (AVMs).
Highlights of the proposed changes include:
Wednesday, 19 November 2008
Fannie Mae has issued several new underwriting guidelines and revised some existing policies that will dramatically affect real estate appraisers. Fannie Mae, which is now under the control and direction of the newly created Federal Housing Finance Agency (FHFA), promulgated the new policies in its November 14, 2008 Announcement.
In reaction to the nation’s worsening economic crisis and uncertain real estate market, Fannie Mae will require real estate appraisers to provide data and analysis of market conditions on a new Market Conditions Addendum form which is to be included in every appraisal completed after April 1, 2009. The new form will require trend analysis to be completed in each appraisal with inventory analysis, absorption rates, and average sales prices shown for the prior seven to 12 months, prior four to six months, and current three-month periods.
The additional documentation will ensure that the appraiser is able to provide market-based data to support his or her conclusions regarding market trends that may affect the value of the subject property. Currently, neither FMLS or GAMLS provides access to all of the specific information required by the new guidelines. AREA has contacted both organizations and is waiting to hear if the groups intend to provide the required data to its appraiser customers.
The announcement appears to change the role of the “supervisory appraiser.” In an ambiguous statement, Fannie Mae's updated policy now requires "that if a supervisory appraiser signs the appraisal report as the appraiser, the supervisory appraiser must have performed the inspection of the property." Some appraisers are interpreting that to mean if the supervising appraiser signs on the left as the appraiser, he or she must have inspected the property (many appraisers would not see that as a "change" in policy). Other appraisers view the statement as a poorly worded requirement that the supervising appraising must now inspect all properties being appraised - that would be a change for many appraisers. Expect Fannie Mae to issue a clearer statement on the new requirement before April 1, 2009.
Updated guidelines alter a number of other appraisal practice for mortgage loan appraisals including a repair escrow for existing construction, new research and reporting requirements for current and prior listings of the subject property, a requirement to appraise the entire parcel for houses with excess land, and changes in time adjustments, verification of sales, neighborhood descriptions, and reporting the effective age. The recent announcement can be found at https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0830.pdf. Also, you will want to review the FAQs associated with the new rules.
This document and related issues shall be addressed in AREA's Declining Markets CE course.
Wednesday, 19 November 2008
Proposed Rule Change – The GREAB today considered a proposed rule to clarify requirements for appraiser instructor renewals. The changes make clear that instructors must have a minimum of 14 hours of instructional contact with students each calendar year or complete a seven hour instructor development workshop. In addition, each instructor must complete an additional 14 hours of courses approved by the Board for appraiser instructor continuing education (CE).
Credit toward the latter requirement will be given for attendance at the annual school meeting, an instructor development workshop, and any other course approved in advance for this purpose by the Board. Dick Viti, AREA’s Curriculum Director, has urged the Board to provide credit to the instructors of any appraiser instructor CE courses. He has also requested that attendance at the National USPAP Instructor Update course be automatically included as a Board approved CE course.
Number of Appraisers – The Board reported 97 fewer appraisers this month. The statewide total is now just 6,508. (The shrinkage in appraisers is consistent with AREA’s prediction of a shortage of appraisers in the near future).
FHA Roster – Appraisers on the FHA Roster are advised to renew early in their renewal month and this point was discussed by Commissioner Ledford. The commissioner explained to the Board that Georiga appraiser renewals are reported to the Appraisal Subcommittee (ASC) on the 15th of each month. Renewals after the 15th are not reported until the following month. Because FHA receives its renewal information from the ASC, an FHA Roster appraiser who renews a Georgia license after the 15th will actually drop off of the FHA Roster at the end of the month – and will have to reinstate. That may mean a licensed appraiser will be off of the Roster permanently due to the change made October 1st limiting new applicants to certified appraisers only.