Category Archives: 2014 ICAP Seminars
ICAP’s 2014 Lisle Seminar Summary
ICAP 2014 Illinois Appraisers Update Seminar – Lisle
August 18, 2014
Lisle Sheraton Hotel, Lisle, Illinois provided the great venue we’ve come to expect each year for ICAPs 2014 Illinois Appraisers Update Seminar. On August 18, 2014, 303 professionals participated, making ICAPs 14th annual Lisle seminar another success. The morning started with registration, fresh fruit, breakfast sandwiches, and an opportunity to meet with exhibitors. A special thanks to the exhibitors this year and their efforts to help make this year’s Lisle seminar excel.
Vendor Showcase
ASA, American Society of Appraisers
CCAI, Chicago Chapter of the Appraisal Institute
Chicago Metropolitan Chapter of NAIFA
MRED, Midwest Real Estate Data
Rick Hilton, IFSA, 2014 ICAP Vice President and our host for the day, opened the seminar with a warm welcome to participants, thanking them for their support and attendance. Throughout the day Rick provided brief introductions for the seminar speakers, in order of schedule: Rich deVerdier, 2014 ICAP President, Ron DeVries, Barton DeLacy, Jim Blaydes, TJ McCarthy, John Brenan, John Torvi, Charlie Franklin, and Brian Weaver. Rich deVerdier, MAI, SRA, AI-GRS started the morning session thanking the exhibitors and presenters. He briefly explained a recent legislative victory with HB5709 and announced ICAP’s new Supervisor/Trainee Seminar offering. After a wonderful lunch, representatives from the vendor showcase were given an opportunity to address the seminar with a brief introduction of their services. Rich deVerdier was presented a plaque of appreciation for his service as ICAP 2014 President. Additionally all attendees participated in a drawing conducted by Rick. Vendor representatives presented winners with gifts donated by each respective vendor. The final opportunity to take advantage of the vendor showcase was during the afternoon break and Ice Cream Social, always a Lisle favorite.
Ron DeVries, MAI, SRA started out the morning session with a presentation on Multi Family Chicagoland. Ron started out with an overview of the Chicago and suburban market and compared it to trends nationally. He then presented an analysis of over 90,000 units in 10 different Chicago markets. Bottom line, the Chicago multi-unit residential market is recovering and projecting and even stronger 2015. True to his form, Ron not only presented the material, but also educated his audience on analyzing the multi-unit residential market, including; market indicators, market segmentation, and building classifications.
Barton DeLacy, MAI, CRE, FRICS, ICAP 2014 Secretary next encouraged appraisers to Grow you Practice – a Primer on Valuation Consulting. Barton suggested we look “inside the box” and exploit what we do already offer beyond just values. Furthermore, appraisers should look beyond appraisals for financial institutions and look towards consulting. Appraisers are trained to offer opinions that are competent, independent, impartial, and objective. “Imagine an appraisal, but without a value.” Consulting can be for only for a portion of the appraisal and not include an opinion of value. Barton particularly urged residential appraisers to explore this space, including litigation support, impact studies, market rent analyses, property tax consulting, and due diligence (prior to sale). Diversifying your business with consulting services will not only increase your production, but also your bottom line.
Jim Blaydes, SRA, Illinois Real Estate Appraisal Licensing Board Member, discussed Illinois Legislation Issues. He first took the opportunity to give a lesson on the legislative process in Illinois. Essentially, 1) Bill is Drafted (House or Senate), 2) Bill is Introduced into originating Chamber, 3) Bill is Referred to Committee, 4) Committee Hearing, 5) 2nd Reading, 6), 3rd Reading, 7) Sent to 2nd Chamber (approval or sent back to original Chamber), 8) If approved sent to Governor (sign or veto), 9) New Law. Jim then explained some of the legislative actions that ICAP has been involved with in 2014, including SB1841 and SB3044. Jim also explained ICAP’s involvement in helping to write the proposed language for the administrative rules for the AMC Act.
TJ McCarthy, SRA provided insight into some of the latest Fannie Mae activities. One area of particular interest for appraisers was the FM Appraiser Quality Monitoring Program. The program can place appraisers on a list that would require their appraisals to be subject to 100% review or a list of appraisers whose appraisals are no longer accepted by Fannie Mae. TJ also encouraged appraisers to read through Fannie Mae letter LL-2014-02: Property and Appraisal Requirements for Properties Located in Small Towns and Rural Areas. He suggested there is quotable text in the letter for appraisers working in rural parts of Illinois. He also explained more about the Supervisor and Trainee Requirements in Illinois related to the new required course.
After lunch, John Brenan, Director of Appraisal Issues for the Appraisal Foundation, provided an overview on the Appraisal Foundation (AF). The AF has nine appraisal sponsors, three affiliate sponsors, and one international sponsor. It is comprised of four Boards: The Appraisal Quality Board (AQB), the Appraisal Practices Board (APB), the Appraisal Standards Board (ASB), and the Board of Trustees which has oversight responsibility for the operations of the AF. There are also three advisory councils: The Appraisal Foundation Advisory Council (TAFAC), the Industry Advisory Council (IAC), and Valuers Global Forum (VGF).
Projects the APB have been working on include, but are not limited to: Collection and Verification of Residential Sales Data in the Sales Comparison Approach, Collection and Verification of Data used in the Sales Comparison Approach for Non-Residential Properties, Valuation Issues in Separating Tangible and Intangible Assets, Identification of Contributory Assets and Calculation of Economic Rents.
Notable initiatives include the partnership with Association of Appraiser Regulatory Officials (AARO) and the ASC which includes the investigator training courses, a five-year memorandum of understanding with the U.S. Department of Energy on Valuation of Green Buildings, creation of Alliance for Valuation Education, eLibrary and new courses development, creation of webinars, brochures and YouTube videos, and consistent USPAP enforcement. APB intends to look at the existing methods and techniques and develop an abstract for education.
John stated that out of approximately 85,000 appraisers nationwide, the AF only receives 30 to 35 respond to the various exposure drafts issued by the Boards. He stressed the importance of appraisers responding to requests for public. All comments are read by all members of the applicable board. For information on any of these topics please visit the AF at appraisalfoundation.org. Mr. Brenan can be contacted at john@appraisalfoundation.org.
John Torvi, Landy Insurance Agency and Charles Franklin, Franklin Law Group discussed Buy Back Claims made against appraisers and their Errors and Omissions (E&O) Insurance. It is not surprise that one of the top two E&O insurance claims is by primary loan originators for overvaluation after a loan defaults. John explained what he is seeing related to E&O claims. He strongly urged appraisers to read and understand their E&O Insurance as a risk management tool. Charles explained what they are seeing related to defending against these claims. He described the litigation process and options the appraiser may or may not have related to their defense. As usual, Charles baffled the audience with stories of real court cases.
Brian Weaver, Illinois Coordinator, presented Legislative Updates. During 2014 the Division of Real Estate was created, SB3044 passed, criminal background checks begin January 2015, and there were member changes to the Appraisal Advisory Board. The Illinois Governor signed an Executive Order on March 31, 2014 creating the Division of Real Estate resulting in a structural change and creating a Director of Real Estate. The Appraiser Act was amended through SB3044 to comply with the AQB criteria. Effective January 1, 2015, background checks for new licensees will be required. Other changes included in SB3044 pertain to BPOs and waiver valuations. The newest member appointed to the Illinois Real Estate Appraisal Licensing Board is Peter Poulos, MAI. Retiring from the Board is Timothy J McCarthy, SRA. Currently, there are 4,427 Illinois appraisers: 515 Trainees (94% in IL), 2,452 Certified Residential (91% in IL), and 1,460 Certified General (73% in IL). Brian gave a One Year Later status of AMC’s in Illinois. There are currently 189 AMC’s registered in Illinois. Since August 2013, approximately a dozen licensed AMCs have closed. Brian anticipates the total number of AMC’s in Illinois will either stay relatively the same or decrease as more AMCs leaving the business. Brian shared some interesting results of a survey sent to all registered AMC’s in Illinois related to an AMC Compliance Audit. Brian ended by stating the best way to contact himself or Mary Bates is by email, brian.weaver@illinois.gov and mary.bates@illinois.gov.
~~~Ken Mrozek, MAI, SRA
ICAP Announces the Normal, IL Supervisor—Trainee Course and On-Line Registration
To meet the locational demands of the supervisors and trainees of Illinois ICAP will be hosting a second Supervisor—Trainee Course, Friday, December 5th, 2014 at the 1st Farm Credit Central Office, Normal IL. The course is designed to walk you through the mutual expectations and state requirements of supervising a trainee and being supervised as a trainee.
The course will cover state law and regulations as well as managing the required documentation
Who must attend?
Anyone looking to supervise trainees after January 1, 2015 and anyone who plans to become a trainee after January 1, 2015.
Will there be CE?
Existing credential holders will receive 6 hours of CE.
Register at ICAP’s homepage (http://www.icapweb.com ) in the EVENTS box located on the right hand side of the page or by clicking here.
1st Farm Credit Central Office
2000 Jacobssen Drive
Normal 61741
ICAP’S Mailer & 2014 Membership Drive
Be on the lookout for ICAP’S 2014 mailer highlighting ICAP’s summer seminars. Every licensed appraiser in Illinois should be expecting this postcard in the mail which features a promotional code (ICAP) that allows new members to join ICAP for 50% the regular price.
Join ICAP today and qualify immediately for discounts on ICAP’s summer seminars. Appraisers can register for the seminars at http://www.icapweb.com/
Register for ICAP’s seminars at ICAP’s homepage ( http://www.icapweb.com ) in the EVENTS box on the right hand side of the page.
ICAP Beginnings
FROM: Michael MaRous, MAI (ICAP’s 1st President)
SUBJECT: ICAP Beginnings
In 1993, the former chapters of the American Institute of Real Estate Appraisers merged with the former Society of Real Estate Appraisers, with officers of Andy Brorsen, Roger TibbIe, Andrew Runge, and Michael Kowalski, and with Michael S. MaRous as President. Illinois state licensing had just been instituted, there was a new State Appraisal Board, and the first appraisal administrator, Larry Bullock, was appointed. There was significant pressure from the real estate brokerage, the mortgage brokerage, the government, and the legal communities regarding input and possible control of real estate appraisal regulations.
The Chicago Chapter of the Appraisal Institute (CCAI) officers directed President Michael MaRous to hire a professional lobbyist to interact with elected state representatives and state senators. The CCAI officers, even though the chapter represented over 1,000 individuals constituted either by designated members or candidates, realized their voice was not large enough or unified enough to have impact on the legislative community. It was clear to the officers that the state legislators wanted to hear only from one voice representing all real estate appraisers in the state of Illinois.
Based on this, in 1993 we reached out to the chapters of the National Association of Independent Fee Appraisers (NAIFA), the American Society of Farm Managers and Rural Appraisers (ASFMRA), and the American Society of Appraisers (ASA), to hold a meeting to discuss the political issues that faced the Chicago chapter of the Appraisal Institute. The meeting was held at the Holiday Inn in Joliet, Illinois, and the agenda that was presented included:
- Appraisal licensing,
- Appraisal regulation,
- Perception and comment from state legislators,
- Relationships with the state appraisal board, and
- Relationships with the state appraisal committee.
The meeting was well attended by all of the invited organizations and a lively discussion ensued. Due to the disparity in the number of members and in the economic strength of the various organizations, the underlying mood and attitudes were positive. All participants realized that unity on the political issues would be in the best interest of all the organizations. Additional meetings were scheduled and held to further explore setting up a unified organization. Significant work had to be done including:
- Starting a simple corporation,
- Employing minimal staff,
- Electing officers and a board,
- Considering a budget,
- Hiring a lobbyist,
- Beginning interface with the state appraisal board, and
- Considering a mission statement.
It was decided that the officers would consist of leadership of the respective organizations. Michael MaRous was elected as the first president; however, the term of the chairs would be limited. Roger TibbIe stepped forward to lead the first meeting with legal counsel and working on by-laws and incorporation, which was critical to the proper incorporation of the organization. It was quickly determined that L.A. Anderson and Donna Hungerford would be the key staff, the position which L.A. has held to this day.
A protocol was initiated for regular board meetings and the various responsibilities of the officers and the board members were determined. We were able to travel to Springfield and to meet with state legislators, to set up a regular attendance at the Governor’s annual golf outing, and to utilize our lobbyist to support our positions and to convey our opinions to the state legislators. The forming of ICAP was well received by legislators and gave us an immediate voice in participating in the rewrites of the state appraisal legislation, which was extremely important due to the size and strength of NAR, National Association of Realtors, which wanted more input and control, not necessarily to the benefit of the appraisal community.
The first year passed quickly and set a good tone for the future. Don Cochran of the American Society of Farm Managers and Rural Appraisers became president for the following 2 years. Brad Ellis followed, with Pat Alesandrini being the last member of the original officers to become the lCAP president. These gentlemen did an excellent job of continuing to fulfill the ICAP mission, to advance the lCAP goals, to create and improve communication with state legislators, and to be the representative for political action for appraisers in the state of Illinois.
We were fortunate that the CCAI had a relatively sound financial position and prepaid The ICAP membership dues of each of the CCAI members for many years. Larry Bullock was a very fair and outstanding appraisal administrator and was very supportive of ICAP. The idea of sponsoring a seminar with lCAP representatives for continuing education was well received by the appraisal community and provided significant financial support to ICAP. It is interesting to note that one of the original attendees and strong supporters of ICAP was Brian Weaver, our current appraisal administrator. Brian provided insight and was a very important member of early ICAP.
Michael MaRous, MAI (ICAP’s 1st President)
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