ICAP members meet with members of Congress
ICAP members Joe Magdziarz, MAI, SRA, Kenneth Mrozek, SRA, Richard deVerdier, SRA, Alexandra Meade and Peter Poulos attended this year’s Leadership Development & Advisory Council (LDAC) held by the Appraisal Institute in Washington, DC, July 26-28, 2011.
More than 100 appraisers from around the country descend upon Capitol Hill to meet with their Congressman and Senators regarding the issues of Valuation of high performance properties and the use of hypothetical, “as-completed” values, when assessing the collateral of residential land acquisition, development and construction (AD&C) loans.
The ICAP members asked their Senators to co-sponsor the Sensible Accounting to Value Energy Act of 2011 (SAVE Act) which aims to ensure that energy costs are included in the underwriting process. The SAVE Act define such appraisal assignments as “complex”, which would require the use of competent appraisers, and help ensure that appraisers have access to building information (such as plans, specs, and energy ratings) to analyze the effects of such improvements.
Additionally, the ICAP members urged their members of the House of Representatives to oppose H.R. 1755, (as introduced). H.R. 1755 directs the banking regulators to rewrite the banking and appraisal guidelines to require use of hypothetical, “as-completed” values, when assessing the collateral of residential AD&C loans they intend to fund to completion; moreover, H.R. 1755 prohibits the consideration of any distressed sale, such as a foreclosure or short sale, as a comparable sale by an appraiser. It was their stance that this would establish a dangerous precedent of legislating the appraisal process. The ICAP members indicated to their members of the House of Representatives that they would support H.R. 1755 if the appraisal provisions were removed.
In addition, the participants shared ideas through a series of roundtable discussions about the appraisal profession. The Leadership Development & Advisory Council gave the Illinois appraisers a chance to positively affect the appraisal industry, network with other appraisers and allowed them to help set a encouraging the course for the future of the profession.