Michigan Association of REALTORS®

If this newsletter does not appear on your screen, click here.


A Letter To Our Members By Beth Graham, ePRO, LTG, TRC, PMN, 2008 MiCREA Chairman Recently while setting an appraisal appointment an agent asked if I would be checking the “declining market box”. I was taken aback by this question! How could this agent interfere with the assignment or appraisal process? What information is he/she receiving about “checking the box”? This statement has led me to great conversations with lenders and PMI reps and has led me to read great articles about declining markets and time adjustments. All of this reading and conversation has, of course, led to more confusion on the subject. Every situation/appraisal requires its own analysis and every situation/appraisal may take on a different school of thought. Some markets are clearly declining, many are flat and there are very stable pockets in some locations. This is a great time for appraisers to use our statistical tools, create graphs and take classes on declining markets & time adjustments. Are you confident with the “box” you check? Have you done your homework? Avoid giving general statements to agents and clients before doing your research! top REALTOR® Top Priorities Advance in Legislature The Michigan Legislature has moved two of our top 2008 MAR legislative priorities in recent weeks. Legislation that allows the Michigan State Housing Development Authority (MSHDA) to create a loan program to assist homeowners facing adjustments in their interest rate passed both chambers and is awaiting the Governor’s signature. The legislation would allow MSHDA to implement the “Save the Dream” refinancing program, which would be available through lenders and remain an option for individuals. The new program would aid those in danger of losing their homes by refinancing for more affordable payments. Every home spared from foreclosure not only helps the individual, but has a positive economic “domino effect” on communities, cities and the entire state. This legislation is truly a positive step in addressing the rising foreclosure rate in Michigan. The Agency Responsibility Act has made its way through Senate Committee, and is expected to be on track for a final floor vote this week. The bills would require real estate licensees entering into limited service relationships to provide a uniform statewide disclosure form. Once approved, the bills will be on their way to the Governor’s desk for signature. Once enacted into law, the implementation date for revised agency disclosure form as well as the check-off waiver is July of this year. The MAR has already started the process to update the forms. The MAR Public Policy Committee voted to fully support both of the ARA bills and MSHDA legislation, and the MAR Public Policy team has met with legislative leaders to stress the importance of passing these bills to promote homeownership while keeping industry standards high. Please visit our Advocacy page for further updates top Education Requirements for Upgrading Your License Under the new AQB Criteria, credentialed appraisers must complete the equivalent of 14 hours per license year of continuing education for each license year the credential is valid. However, there are often circumstances when an appraiser’s credential is valid for less than a full license year. If a licensee has held a new credential for 185 days or more the AQB states they are required to have 14 hours of continuing education. For continuing education cycle periods of less than 185 days, no hours of continuing education are required. Click here for more information. top New Appraisal Rules for Freddie, Fannie Fannie Mae and Freddie Mac have reached an agreement with New York Attorney General Andrew Cuomo that requires them to have independent appraisals of home values. Under the agreement, home appraisals have to come from assessors who don’t have formal ties with a lender or mortgage broker. Lenders wishing to sell their mortgages to the nation's two largest sources of home finance must make sure that they don’t rely on in-house appraisers and don’t own an appraisal firm itself, according to the agreement drafted by Fannie Mae. This agreement brings to an end a large portion of an investigation by New York State into how Wall Street bundled and sold millions of dollars of questionable home loans. The agreement has three tenets and applies to lenders nationwide: Under the newly created Home Valuation Protection, mortgage brokers are prohibited from selecting appraisers. Lenders can’t use staff appraisers or appraisal companies owned or managed by their companies. The code also entitles the borrower to one copy of an appraisal report, free of charge, within 3 days of the closing of the loan. Beginning Jan. 1, 2009, Fannie and Freddie will no longer purchase mortgages from lenders that use internal appraisers. Lenders will be required to represent and warrant that the appraisal report was obtained in a manner consistent with the New Home Valuation Protection Code. A clearinghouse of appraiser information will be created, with a separate board of directors, to monitor complaints from appraisers and consumers. All lenders will be required to provide post-purchase copies of appraisal documents to the clearinghouse. Lenders will establish a telephone hotline and e-mail address to receive complaints from appraisers and users of appraisal services on the improper influence or attempted improper influence of appraisers. Source: Reuters News, Patrick Rucker, and NATIONAL ASSOCIATION OF REALTORS® (03/03/08) top Your Appraisal Questions Answered Q: Lately, I have been approached by different lenders to change the name on a previous appraisal to their name. If I obtain a release from Lender A can I just readdress the report to Lender B? A: According to USPAP it is never permissible to “readdress” a report by simply changing the client’s name on a completed report, regardless of whether the first client gave a release. The request from Lender B must be treated as a new assignment. See USPAP. MiCREA would like to answer your questions. Please send your question to abates@mirealtors.com and it could be featured in an upcoming MiCREA enews with the answer. Let MiCREA be a resource for your professional needs and submit your questions today. top	MiCREA Monthly March 2008 • Chairman's Letter • REALTOR® Top Priorities Advance in Legislature • Education Requirements for Upgrading Your License • New Appraisal Rules for Freddie, Fannie • Appraisal Industry Q&A

A Letter To Our Members

By Beth Graham, ePRO, LTG, TRC, PMN, 2008 MiCREA Chairman

Recently while setting an appraisal appointment an agent asked if I would be checking the “declining market box”. I was taken aback by this question! How could this agent interfere with the assignment or appraisal process? What information is he/she receiving about “checking the box”?

This statement has led me to great conversations with lenders and PMI reps and has led me to read great articles about declining markets and time adjustments. All of this reading and conversation has, of course, led to more confusion on the subject. Every situation/appraisal requires its own analysis and every situation/appraisal may take on a different school of thought. Some markets are clearly declining, many are flat and there are very stable pockets in some locations. This is a great time for appraisers to use our statistical tools, create graphs and take classes on declining markets & time adjustments.

Are you confident with the “box” you check? Have you done your homework? Avoid giving general statements to agents and clients before doing your research!

top

REALTOR® Top Priorities Advance in Legislature

The Michigan Legislature has moved two of our top 2008 MAR legislative priorities in recent weeks. Legislation that allows the Michigan State Housing Development Authority (MSHDA) to create a loan program to assist homeowners facing adjustments in their interest rate passed both chambers and is awaiting the Governor’s signature. The legislation would allow MSHDA to implement the “Save the Dream” refinancing program, which would be available through lenders and remain an option for individuals. The new program would aid those in danger of losing their homes by refinancing for more affordable payments. Every home spared from foreclosure not only helps the individual, but has a positive economic “domino effect” on communities, cities and the entire state. This legislation is truly a positive step in addressing the rising foreclosure rate in Michigan.

The Agency Responsibility Act has made its way through Senate Committee, and is expected to be on track for a final floor vote this week. The bills would require real estate licensees entering into limited service relationships to provide a uniform statewide disclosure form. Once approved, the bills will be on their way to the Governor’s desk for signature. Once enacted into law, the implementation date for revised agency disclosure form as well as the check-off waiver is July of this year. The MAR has already started the process to update the forms.

The MAR Public Policy Committee voted to fully support both of the ARA bills and MSHDA legislation, and the MAR Public Policy team has met with legislative leaders to stress the importance of passing these bills to promote homeownership while keeping industry standards high.

Please visit our Advocacy page for further updates

top

Education Requirements for Upgrading Your License

Under the new AQB Criteria, credentialed appraisers must complete the equivalent of 14 hours per license year of continuing education for each license year the credential is valid. However, there are often circumstances when an appraiser’s credential is valid for less than a full license year. If a licensee has held a new credential for 185 days or more the AQB states they are required to have 14 hours of continuing education. For continuing education cycle periods of less than 185 days, no hours of continuing education are required.

Click here for more information.

top

New Appraisal Rules for Freddie, Fannie

Fannie Mae and Freddie Mac have reached an agreement with New York Attorney General Andrew Cuomo that requires them to have independent appraisals of home values.

Under the agreement, home appraisals have to come from assessors who don’t have formal ties with a lender or mortgage broker.

Lenders wishing to sell their mortgages to the nation's two largest sources of home finance must make sure that they don’t rely on in-house appraisers and don’t own an appraisal firm itself, according to the agreement drafted by Fannie Mae.

This agreement brings to an end a large portion of an investigation by New York State into how Wall Street bundled and sold millions of dollars of questionable home loans.

The agreement has three tenets and applies to lenders nationwide:

Under the newly created Home Valuation Protection, mortgage brokers are prohibited from selecting appraisers. Lenders can’t use staff appraisers or appraisal companies owned or managed by their companies. The code also entitles the borrower to one copy of an appraisal report, free of charge, within 3 days of the closing of the loan.
Beginning Jan. 1, 2009, Fannie and Freddie will no longer purchase mortgages from lenders that use internal appraisers. Lenders will be required to represent and warrant that the appraisal report was obtained in a manner consistent with the New Home Valuation Protection Code.
A clearinghouse of appraiser information will be created, with a separate board of directors, to monitor complaints from appraisers and consumers. All lenders will be required to provide post-purchase copies of appraisal documents to the clearinghouse. Lenders will establish a telephone hotline and e-mail address to receive complaints from appraisers and users of appraisal services on the improper influence or attempted improper influence of appraisers.

Source: Reuters News, Patrick Rucker, and NATIONAL ASSOCIATION OF REALTORS® (03/03/08)

top

Your Appraisal Questions Answered

Q: Lately, I have been approached by different lenders to change the name on a previous appraisal to their name. If I obtain a release from Lender A can I just readdress the report to Lender B?

A: According to USPAP it is never permissible to “readdress” a report by simply changing the client’s name on a completed report, regardless of whether the first client gave a release. The request from Lender B must be treated as a new assignment. See USPAP.

MiCREA would like to answer your questions. Please send your question to abates@mirealtors.com and it could be featured in an upcoming MiCREA enews with the answer. Let MiCREA be a resource for your professional needs and submit your questions today.

top

MiCREA Monthly
March 2008

• Chairman's Letter

• REALTOR® Top Priorities Advance in Legislature

• Education Requirements for Upgrading Your License

• New Appraisal Rules for Freddie, Fannie

• Appraisal Industry Q&A

720 North Washington Avenue • P.O. Box 40725 • Lansing, Michigan 48901-7925
800.454.7842 • Fax: 517.334.5568 • Contact us • www.mirealtors.com
Download Map