AI Among Groups Opposing Federal Banking Agencies' Action

by: NCAI

Tags

Feb

08

The Appraisal Institute on Feb. 4 was one of six organizations signing a comment letter that “strongly opposed” a proposal from the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency to raise the residential appraisal threshold from $250,000 to $400,000.

If the proposal is approved, nearly three quarters of residential real estate loans held in portfolio by depository institutions would be exempt from appraisal requirements. A high percentage of those loans are from rural areas.

The same proposal was evaluated and answered in 2017 as part of the process of the federally mandated Economic Growth and Regulatory Paperwork Reduction Act — a regulatory relief effort that encompassed four different notice and comment periods and six public hearings. At that time, the same agencies that are now proposing the increase said it “would not be appropriate” to increase the residential threshold considering safety and soundness and consumer protection concerns.

The “about face” is an apparent attempt by the agencies to pacify rural community banks that received discrete relief from Congress through EGRPRA. The valuation organizations that signed the comment letter have also requested a hearing on the proposal, but the agencies continue to deliberate on the issue.

In addition to the Appraisal Institute, the comment letter was signed by:

American Guild of Appraisers, OPEIU, AFL-CIO;
American Society of Appraisers;
American Society of Farm Managers and Rural Appraisers;
MBREA | The Association for Valuation Professionals; and
RICS.

Read the comment letter.

Registration Opens for 2019 LDAC Conference; Sponsorship Opportunities Available

by: NCAI

Category: National

Tags

National Programs

Feb

08

The Appraisal Institute opens registration Feb. 12 for its 2019 Leadership Development and Advisory Council conference, which will take place May 15-17 at the Washington Marriott at Metro Center.

LDAC is an innovative approach to valuation leadership development, and serves as an incubator of new ideas and helps to establish an appraiser presence in Congress with a day of lobbying on Capitol Hill. Registered attendees who participate in the complete LDAC program will receive Appraisal Institute continuing education credit.

Learn more about the 2019 LDAC conference and find registration information.

The Appraisal Institute also announced that it is offering sponsorship opportunities for LDAC. All money raised will be used to sponsor one of the numerous activities at the 2019 conference. A complete sponsor list will be published at the event and online.

Find more information on sponsorship opportunities.

Opportunity Zones Create Numerous Questions for Valuation Professionals

by: NCAI

Category: Industry

Tags

National Legislative

Feb

07

The Appraisal Institute recommends that its professionals pay close attention to investment trends associated with the Opportunity Zones that were created through last year’s tax reform legislation. The U.S. Department of the Treasury has certified 8,700 Opportunity Zones — a process performed in conjunction with state and local government agencies.

Opportunity Zones are designed to spur economic development by providing tax benefits to investors by allowing them to defer tax on any prior gains invested in a Qualified Opportunity Fund until the date on which the investment in a QOF is sold or exchanged, or until Dec. 31, 2026 — whichever comes first. There is a 10 percent exclusion of the deferred gain for QOF investments held for more than five years; when held for more than seven years, the exclusion is 15 percent and when held for 10 or more years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date the QOF investment is sold or exchanged.

The rules and regulations for this economic development tool are trickling out, including materials from the IRS. As a result, valuation-related questions are materializing as market activity within Opportunity Zones begins. One issue is the use of a sale from outside an Opportunity Zone as a comparable for one inside an Opportunity Zone, and vice versa. Additionally, data lags may necessitate fully informed market conditions adjustments. Appraisers likely also will be asked to segregate building and land values for tax planning purposes.

The IRS offers more information on tax issues with Opportunity Zones.

The Treasury Department provides a complete list of Opportunity Zones through its Community Development Financial Institutions Fund site. Many states offer information on local Opportunity Zones through their departments of commerce and economic development, such as this one from Illinois.

72 Members Received Designations from the Appraisal Institute During January

by: NCAI

Category: Membership

Tags

National Membership Local Designations

Feb

07

The Appraisal Institute designated 72 members in January, including; 1 who received MAI AND SRA designations; and 42 who received MAI designations; 7 who received SRA designations; 17 who received AI-GRS designations; 5 who received AI-RRS designations.

Congratulations to NC Chapter Members Richard Duane Earley, MAI and William (Bill) W. Johnson, MAI.

AI Opposes Residential Appraisal Threshold Increase

by: NCAI

Category: Legislative

Tags

National Legislative Residential

Jan

28

The Appraisal Institute, the American Society of Appraisers, the American Society of Farm Managers and Rural Appraisers and the Massachusetts Board of Real Estate Appraisers participated in bipartisan meetings with members of Congress Jan. 15, urging them to review a proposed increase to the residential appraisal threshold.

The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency have proposed raising the residential appraisal threshold from $250,000 to $400,000.

The Appraisal Institute is asking appraisers to voice their opposition to the proposed increase. AI created an action alert where its professionals and others can weigh in on this important matter. The action alert provides talking points that appraisers can use in their letters, and AI encourages appraisers to share their own stories and experiences when speaking against the proposal.

Use the AI action alert to make your voice heard.

If you have any questions regarding this issue, contact Bill Garber, AI’s director of government and external relations, at 202-298-6449 or by email at [email protected].

Appraisal Institute President Outlines 2019 Goals

by: NCAI

Category: National

Tags

Membership National

Jan

24

2019 Appraisal Institute President Stephen Wagner, MAI, SRA, AI-GRS, outlines the Appraisal Institute’s priorities for the year in the organization’s latest video.

As the Appraisal Institute continues to serve as the global valuation profession’s thought leader, the organization remains at the forefront of the most pressing issues facing appraisers today.

26 Members Received Designations from the Appraisal Institute in December

by: NCAI

Category: National

Tags

National Membership Designations

Jan

18

The Appraisal Institute designated 26 members in December, including five who received their MAI designations, seven who received their SRA designations, 12 who received their AI-GRS designations and two who received their AI-RRS designations.

Click here to view.

Appraisal Institute Recognizes 1 Individual as 'Volunteer of Distinction' for Q4

by: NCAI

Category: National

Tags

National Membership

Jan

17

The Appraisal Institute on Jan. 9 announced the recognition of one individual as a "Volunteer of Distinction" for the fourth quarter.

“The Appraisal Institute strongly objects to the FDIC’s proposal to raise residential appraisal thresholds,” said 2018 AI President James L. Murrett, MAI, SRA. “Congress just considered establishing a residential appraisal exemption and instead chose to enact a vastly different allowance involving appraisers in rural areas. This proposed rulemaking flies in the face of this action, and recreates the same type of environment that led to the housing crisis.

“By increasing the residential appraisal threshold from $250,000 to $400,000, FDIC would threaten the vital role that appraisers play in real estate transactions” said Murrett. “This action would undermine the crucial risk mitigation services that appraisers provide clients and users of appraisal services.

Murrett noted, “Raising the threshold means more evaluations will be allowed in place of appraisals. “The Appraisal Institute anticipates that will result in a return to the loan production-driven environment seen during the leadup to the financial crisis, where appraisal and risk management were thrust aside to make more – not better – loans. Apparently, the FDIC has learned nothing from that experience.

“Reducing regulations may seem to make sense initially, but the FDIC’s announcement raises significant safety and soundness concerns that the Appraisal Institute finds deeply disturbing,” Murrett said.

Some Economists See Looming Recession, but Goldman Sachs Says

by: NCAI

Category: Industry

Tags

National

Dec

20

By Kelsey Ramirez

Many economists are predicting the next recession could occur in 2020 or even 2019, but that’s not what Goldman Sachs is predicting.

Read Press Release | Read AI's Letter

72 Members Designated in October

by: NCAI

Category: National

Tags

National Designations

Nov

16

The Appraisal Institute designated 72 members in October, including; 1 who received MAI AND AI-GRS designations; and 34 who received MAI designations; 11 who received SRA designations; 17 who received AI-GRS designations; 9 who received AI-RRS designations.

Click here to view.

Appraisal Institute Presents at Key Industry Events in October

by: NCAI

Category: Membership

Tags

National

Nov

07

The Appraisal Institute announced Oct. 31 that its elected officers and others represented the organization at key events in October.

President James L. Murrett, MAI, SRA, attended Valuation Expo, Sept. 30-Oct.3, in Las Vegas, where he presented “What’s New at the Appraisal Institute.” AI also exhibited at this event.

Vice President Jefferson L. Sherman, MAI, AI-GRS, spoke at the Iowa Commercial Real Estate Expo, Oct. 2, in Des Moines on “Issues Affecting the Appraisal Community.”

President-Elect Stephen S. Wagner, MAI, SRA, AI-GRS, represented AI at the American Society of Appraisers’ International Appraisers Conference, Oct. 7-10, in Anaheim, California.

Murrett and CEO Jim Amorin, MAI, SRA, AI-GRS, represented AI at Expo Real, Oct. 8-10, in Munich.

Sherman presented at the joint FECOVAL/UPAV/Pan Pacific/IRWA meeting, Oct. 8-13, in Tijuana, Mexico, where he spoke on the “State of the Appraisal Profession” and “AI Body of Knowledge.”

Murrett presented at The European Group of Valuers Associations (commonly known as TEGoVA) Fall Meeting, Oct. 18-20, in Athens, Greece, about “Prospective Values.”

2016 AI President Scott Robison, MAI, SRA, AI-GRS, AI-RRS, spoke on the behalf of the organization at Remnin University in Beijing on “Appraisal Review in the U.S.” and at the China Institute of Real Estate Appraisers and Agents Annual Meeting, Oct. 25-26, in Beijing, on “Impact and Opportunity of Technology-Based Valuations on the Valuation Profession.”

AI also exhibited at the Land Trust Alliance Rally, Oct. 11-13, in Pittsburgh, and at the Mortgage Bankers Association Annual Meeting, Oct. 14-17, in Washington.

AI Professional Appointed to Missouri Real Estate Appraisal Board

by: NCAI

Category: Industry

Tags

National Legislative

Nov

02

By Liam Quinn

Missouri Gov. Mike Parson on Oct. 18 appointed Randy Bryson, SRA, AI-RRS, to the state's Real Estate Appraisers Commission. Bryson is president of Associated Property Analysts in Columbia and has been an appraiser since 1980.

Our Blog

Announcements

Upcoming Events