Collinsville ICAP Seminar Report
Herb Meyer, ARA – ICAP Director reports on the Collinsville ICAP Seminar held on June 12th at the Doubletree Hotel.
Ted Neff (ICAP Director) opened the day with a brief welcome and an introduction of Thomas Kneesel, SRA.
Chief Appraiser for Associated Bank
Collateral Underwriter from a Reviewers Perspective – Fannie Mae Approved Presentation
- CU as just one of several appraisal review tools
- Since implementation at Associated Bank, the number of appraisal resubmits for has now returned to 30%, same rate as pre-Collateral Underwriting
- The 15 and 25 percent net and gross adjustment rules have been officially removed
- Underwriters no longer consider fewer and smaller adjustments as a better appraisal
- A surprising amount of disparity between appraisers found in appraisal reports for square footage and room adjustments. Also in ratings such as quality of construction and condition. For example, different appraiser condition ratings for the same sale can range from C2 to C4.
- OCC is auditing banks to determine if the AMC’s are paying customary and reasonable fees. Tom indicated that it is the OCC’s duty (and other regulators) to complete these audits under Dodd Frank.
- Fannie Mae indicated that the reasons for appraisers being placed in a watch list have to do with some non-appraisal issues. One example was an appraiser that signs 200+/- appraisals per month and indicates in every appraisal that they physically inspected all of the properties that cover a 200 mile radius from the office.
Keith Wolf, SRA, AI-RRS.
Statistics: Gambling with your License
- Several AMV’s and other statistic providers were discussed
- Computer based statistical programs could support better and worse adjustments. The appraiser has to be responsibility to understanding how the programs work and how to make the adjustments meaningful.
- Focused around Standard 6 being Mass Appraisal and also Advisory Opinion 6 on Comparable Sales. Discussed confounding data and confidence ratings.
- Wolf indicated that the banks are charged with determining customary and reasonable fees by the Dodd Frank Law. He spoke briefly about the AMC that was recently charged with not paying customary and reasonable fees in Louisiana.
IL Program Director, USDA
Overview of USDA for Residential Appraisers
- FmHA’s need for appraisers to prepare appraisals for their loan programs including direct loans and loan guarantees for rural residential properties and houses in towns of low population.
- Covered topics regarding requirements in appraisals for the different types of loan products available from the Rural Development division of the USDA.
- Discussed the required components of the home inspection that the appraiser must complete and the requirements for licensed home inspectors.
- The water well inspections and when a borrower is required to connect to available public water and sewer. The water and septic inspections are dependent upon available procedures in each community.
- Mr. Ramsey is seeking appraisers for some highly specialized appraisals on subsidized multi-family residential projects. These properties have interest rate subsidies, extreme long loan amortizations and rental rate controls. They are typically senior housing and other low rent restricted properties where the rent is a percent of the occupant’s income.
Realtor and Owner of Your Home Team Real Estate
IAR Update on Southern Illinois Market Conditions
- Discussed the local housing market and the relationship between Realtors and Appraisers.
- Encouraged appraisers to talk with realtors and know what they can talk about
- Questions the appraiser can expect and don’t take it personal
ICAP’s Compliance Issues on Residential Appraisals
- Discussed Appraiser Compliance
- Appraisers should clean up templates and have multiple templates for various assignment types
- Reminded appraisers of requirement to report the appraisal fee in the report and explained how it helps banks and lenders understand the AMC fee structure