A Letter To Our Members

By John A. Meyer, SRA, 2007 MiCREA Chairman

I hope I helped to clear up some of the questions that have been raised with my letter last month regarding what MiCREA is and who its members are. We are trying to expand our influence within the REALTOR® community, and one of the best ways to do that is to use the power of numbers. A few people might get some things done, but a lot of people have more influence. Let’s use that influence in positive ways to make a difference out in local communities. How many of us have gotten involved in the local boards and committees where we can interact on a more personal level with the local brokers and salespeople? Sometimes I feel as though there is an adversarial relationship between sales people and appraisers. Things seem to go a lot smoother if everyone works for the benefit of the public, and getting to know one another as professionals will lead to better relationships and, from a selfish perspective, a better ability to discover and verify data. We are all REALTORS® after all.

We are working hard on the convention and educational offerings for appraisers. It looks like we may have 2 hours on Wednesday, September 26 and 4 or 5 hours on Thursday September 27, so keep watching the MAR information for the final schedule. I cannot stress enough how important keeping up with education is. In this market, we cannot rely on the old standby, financing appraisals, if we are going to stay busy. There are so many different needs out there for our services, and the only way to find out more about them is through education and experience. How many of you are doing relocation appraisals? How about getting involved with local attorney groups and finding out their needs with regards to divorces, estates, property line disputes, easements, etc. Speaking of easements, what about the Department of Transportation and other state agencies that need appraisals done?

The common element in all these various appraisal needs is being an informed and educated appraiser that is able to intelligently respond to the questions you are asked. The recently updated scope of work is allowing appraisers a lot of flexibility in approaching an assignment. Are you taking advantage of this?

Let’s get together at the convention and meet each other, discuss the latest changes in the market, and learn some new ideas. Let’s not just take continuing education to get hours, learn how to better serve your clients and expand your business!

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Your Appraisal Questions Answered

Q: If I am currently a state licensed or certified real property appraiser and do not intend to seek another state appraiser credential, how does the new AQB Criteria impact me?

A: As long as you maintain your current credential, the Criteria changes should not have any effect on you. Those impacted will be (a) individuals entering the profession (b) individuals seeking a different credential within their state, or (c) possibly those seeking a credential in another jurisdiction through reciprocity.

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SB 342 and 343

Mortgage fraud has skyrocketed in Michigan over the last few years. Every type of service vital to the housing industry has been deeply affected by those who engage in mortgage fraud activity. Legislation has been introduced in the Senate dealing specifically with appraisal fraud. Senate Bills 342, 343, and 356, introduced earlier this year, aimed to curb fraudulent acts that harm the appraisal industry, as well as the real estate market in Michigan. The legislation prohibits mortgage lenders from coercing appraisers to inflate the value of mortgaged property, thereby increasing the size of the mortgage loan. These bills also intend to have criminal penalties and hefty fines for those certain lenders who engage in this practice. All three bills passed out of the Senate and have made their way to the House Committee on Banking and Financial Services.

The MAR is keeping a close eye on the movement of these bills, and will keep you informed of any additional progress.

If you would like to view the bills, please click on the links below.

Senate Bill 342

Senate Bill 343

Senate Bill 356

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Comments on Appraising Charitable Property

The IRS asked how appraisals in charitable donations of real property should be governed and what qualifications are necessary for appraisers.

Learn More Here.

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Appraisal Education and Networking Opportunities at MAR's Convention & Expo

Following the success of last year’s Michigan Association of REALTORS® Annual Convention and Expo, MAR will be introducing an Appraisal Track to this year’s education sessions during convention. In addition to the returning technology, agent, management, commercial and legal tracks, the Appraisal Track will cover topics specifically relevant to appraisers, presented by distinguished speakers including, Craig Harrington and Carole Bullion. This three day event will be held Wednesday, September 26th – Friday, September 28th at the Soaring Eagle Casino and Resort in Mt. Pleasant.

The following sessions are included in the cost of registration, giving each attendee crucial insight from an appraisal perspective:

Thursday September 27

9:45 – 11:25 am – When Good Houses Go Bad with Craig Harrington

1:30 pm – 3:10 pm – Mortgage Fraud and the Real Estate Industry with Carole Bullion

In addition to several appraisal targeted education sessions, MAR will be hosting an Appraisal Meet and Greet the second day of convention before classes start. For updated information on subsequent Continuing Education approvals for convention, please visit MAR’s Web site at www.mirealtors.com. Everyone is encouraged to register online where you can also get an updated schedule of events, hotel information and sponsorship opportunities.

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MiCREA Monthly
June 2007

• Chairman's Letter

• Your Appraisal Questions Answered

• Appraisal Fraud Protection Legislation Introduced

• Comments on Appraising Charitable Property

• Appraisal Education and Networking Opportunities at MAR's Convention & Expo