Yesterday, the US Government Accountability Office (GAO) released their report on real estate appraisals “Appraisal Subcommittee Needs to Improve Monitoring Procedures” as required per Dodd-Frank. GAO was tasked with 1) determining how the Appraisal Subcommittee (ASC) is carrying out its Title XI responsibilities, 2) ASC’s plans to implement Dodd-Frank provisions, and 3) regulatory dollar thresholds for determining when an appraisal is required.
GAO reports that one of the challenges faced by ASC is in the area of resources and planning. GAO cites the creation of a national hotline as one example of a Dodd-Frank requirement that could strain the ASC’s resources. ASC has noted that the number of appraisers is trending downward, which will inevitably impact the agency’s $2.8 million budget. The report also discusses the $250,000 regulatory threshold. While some debate the need to change the threshold, GAO states that it has little impact on the proportion of mortgages with appraisals because the Federal Housing Administration and the government sponsored enterprises (GSE) make up most of the market and require appraisals regardless of price. However, this could change with a more privatized market.
Happy New Year everybody!
The Federal Housing Administration (FHA) is offering appraisal training later this month and early next month. The January training is a Webinar so you can participate from anywhere. The February training is in Denver, CO so if you’re an appraiser heading for ski country this training is for you. Here are the particulars (provided by FHA):
January 17, 2012 – Webinar. Property Requirements for the FHA Appraisal. Have you ever thought, “Am I in compliance with HUD requirements if I do not inspect the subject’s attic?” This FREE webinar training is geared towards the FHA Single Family Roster Appraiser and will cover property inspection requirements to include neighborhood influences, site analysis, and improvements. Appraisers new to the FHA Roster, as well as seasoned professionals wishing to refresh their knowledge, will benefit from this in-depth look at property inspection requirements and HUD/FHA expectations. Register at here (this link can also be used to view the archived Webinar after January 17th). If you have questions you can E-mail the Denver HOC at firstname.lastname@example.org.
February 16, 2012 – Denver, CO. This FREE one-day “Live” class discusses FHA appraisal requirements including: FHA Appraisal Protocol, updates to FHA appraisal policy, and property eligibility. This course provides a refresher to seasoned FHA appraisers, and provides valuable information to appraisers new to the FHA roster. Industry participants including Underwriters and Loan Processors may also benefit. Attendees will receive 7-hours of continuing education acceptable for the State of Colorado appraisal licensing requirements. Class size is limited, first-come, first served. On the day of the class, check-in begins at 8:00 a.m. Class begins promptly at 8:30 a.m. Registration required no fee. More info available here.