My New Blog

2012...

Does anyone else feel this is going to be a great year? 

One thing we in this industry can all count on is change.  This appraisal and financial business is such a important part of the real estate industry that regulation and change has become common place. 

I have not been in the industry long, only 15 years, however I feel like a seasoned vet.  Many of my colleages are now on to other occupations and the changes and regulation keeps coming.  For those of us that have decided to pound it out we hope it is all well worth it in the end. 

I like many feel a sense of excitement for this coming year.  Sun Point Appraisals has a lot to be excited about and a new outlook for our future.  2011 has introduced us to many new opportunities and many new clients and I look forward to building on those relationships significantly this year.  As with any industry over regulated or not it all boils down to service.  We are out to blow away the competition and make our clients more faithful and evermore demanding of our services.

Happy New Year!!

H.R. 4173 Dodd Frank Act and how it should effect appraisers

APPRAISAL

• Appraisers are to be compensated at a rate that is reasonable and customary for appraisal services in the market area of the property being appraised.
• Home Valuation Code of Conduct (HVCC) sunsets when Consumer Financial Protection Bureau issues interim final regulations implementing the appraisal provisions of the Dodd-Frank Act.
• A subprime mortgage requires a written appraisal of the property to be mortgaged
• The applicant is entitled to one free copy of the appraisal.
• The applicant must be notified that the appraisal is prepared for the sole use of the creditor.
• It is unlawful to coerce, extort, collude, instruct, induce, bribe, or intimidate an appraiser in an attempt to influence the independent judgment of the appraiser.
• An appraiser may consider additional, appropriate property information including additional comparable sales to support an appraisal, provide further detail, or correct errors.
• Appraisal Qualifications Board (AQB) Qualification Criteria for licensed and trainee appraisers becomes mandatory for the states (currently voluntary).
• The Federal Housing Finance Agency (FHFA) and the new Consumer Financial Protection Bureau become members of ASC. The Office of Thrift Supervision is no longer a member of ASC because it is being merged into the Office of the Comptroller of the Currency.

This new bill is to "sunset" the recently enacted Home Valuation Code of Conduct (HVCC).  As with much change appraisers sit by and watch and do their best to stay on top of the many changes, both in the financial industry and USPAP. 

Somebody needs to create a website for the real estate industry to go to log in and check on the recent changes.  HUD alone has many constant changes to our industry in the form of Mortgagee Letters that slip by mostly unnoticed by appraisers.

Many appraisal firms are struggling to find the next assignment and then having to decide whether the fee offered is going to give them any profit at the end of the day.  Change has been the one constant over the past few years so appraisers and business owners in real estate have to be constant in their ability to survive and thrive with the change.

It is a new year.

2011 is expected to be a excellent year for Sun Point Appraisals, Inc.  We have acquired a few new clients and have cleaned up some staffing issues. 

As the industry is constantly changing so has the our list of clients.  2010 was a bit of a challenge as HVCC changed our whole client database and new relationships had to be started.  I have found even as the industry has changed and there seems a new way of doing business for the appraisal firm it is still very much a relationship based business.

Relationships between my clients and I is still priority one and has been what has kept my firm prospering.  I look forward to the growth and challenges of the new year.

This real estate industry has seen its highs and lows.  If you are ever having a slow day and cannot seem to get motivated just ask me and/or a realtor to let you know how many purchase transactions have occurred in your marketplace via the local MLS.  Then wala knowing even in slow times there are thousands of transactions happening will motivate you to figure out how do I get a little slice of the action.

Please call my office anytime to help you find information you may feel would benefit your business.  We are always looking to develop relationships and provide as much information and services as we can.

Paul Johnson/Sun Point Appraisals, Inc.