The Appraisal Practices Board (APB) has issued the following exposure draft:
First Exposure Draft – Valuation of Green Buildings: Background and Core Competency
Issued on July 15, 2013
Written comments requested by September 20, 2013
Send comments to: APBcomments@appraisalfoundation.org
DEADLINE APPROACHING: August 1, 2013
FOR IMMEDIATE RELEASE
July 11, 2013
Paula Douglas Seidel
The Appraisal Foundation
direct phone 202.624.3048
Washington, DC– The Appraisal Foundation has begun its annual search for qualified candidates to serve on the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB). There are three vacancies on the AQB and two vacancies on the ASB. Completed applications for these vacancies must be received by August 1, 2013.
Background and Qualifications:
The Appraiser Qualifications Board (AQB) is responsible for setting minimum qualification criteria for state licensure and certification of real estate appraisers and has established voluntary qualification criteria for personal property appraisers. Familiarity with appraiser qualifications is a prerequisite of service on the AQB, and a minimum of ten years of appraisal experience is required. The AQB meets up to three times per year for approximately six days in total and individuals serving on the board are compensated for their time and reimbursed for travel expenses. Those selected for AQB positions will serve a term of up to three years commencing January 1, 2014.
The Appraisal Standards Board (ASB) is charged with developing, interpreting and amending the Uniform Standards of Professional Appraisal Practice (USPAP). Familiarity with USPAP is a prerequisite of service on the ASB, and a minimum of ten years of appraisal experience is required. The ASB meets up to four times per year for approximately ten days in total and individuals serving on the board are compensated for their time and are reimbursed for travel expenses. Those individuals selected for a position on the ASB will serve a term of up to three years commencing January 1, 2014.
How to Apply:
Applications for the positions outlined above are now available on-line at The Appraisal Foundation’s website at: https://appraisalfoundation.sharefile.com/d/s90875a8647946a9a.
If you would like to request an application via email or if you have questions, please feel free to contact Arika Cole (firstname.lastname@example.org). When requesting information on the applications via e-mail, please use the phrase “2013 AQB/ASB APPLICATION REQUEST” in the subject line, and please include your full name, email address and phone number.
In March, a joint study by the University of North Carolina at Chapel Hill Center for Community Capital and the Institute for Market Transformation (IMT) found that owners of ENERGY STAR-rated homes are one-third less likely to default on a mortgage than the average borrower. Home Energy Efficiency and Mortgage Risks used a sample of 71,000 home loans from 38 states and the District of Columbia, all derived from CoreLogic’s mortgage database. The sample was restricted to single-family, owner-occupied houses whose loans originated during 2002–2012 and were used for purchase only. The focus of the study was on owner likelihood to default or prepay and not on the contributory value of energy efficiency features.
“We were quite surprised by the numbers,” said Nikhil Kaza, assistant professor of city and regional planning at the University of North Carolina at Chapel Hill and one of the study’s authors. “We thought there would be some association between energy efficiency and mortgage risk, but we did not expect such a large association.”
More research is needed to determine causation, though a recent article from NBC’s Today Show, offers a telling anecdote. The Today Show profiles an Olympia, Wash., couple who paid a premium to make their 2,000-square-foot home energy efficient but were enjoying greatly reduced carrying costs as a result. “They pay a measly $70 a year to heat and cool the place,” the show’s Web site says.
The survey’s finding of a strong link between energy efficient homes and loan performance puts attention on underwriting practices that today don’t account for efficiency, said Center director Roberto G. Quercia, a co-author. “Consumer and industry acceptance of energy efficiency is high. But the lack of broad consideration of potential energy savings in the mortgage underwriting process still prevents many moderate- and middle-income home buyers from fully enjoying the cost savings,” said Quercia. “Since our study findings now show that energy efficiency is strongly and consistently associated with lower mortgage lending risk, lenders and policymakers have one more reason to promote it.”
IMT has been working for several years on the Sensible Accounting to Value Energy (SAVE) Act. The bill is an attempt to develop standards for valuing energy efficiency in the appraisal and mortgage underwriting processes. On June 6, 2013, Senators Bennet (D-CO) and Isakson (R-GA) introduced SAVE in the Senate as S. 1106. The GovTrack website summarizes SAVE as “a bill to improve the accuracy of mortgage underwriting used by federal mortgage agencies by ensuring that energy costs are included in the underwriting process, to reduce the amount of energy consumed by homes, to facilitate the creation of energy efficiency retrofit and construction jobs, and for other purposes.”
The NATIONAL ASSOCIATION OF REALTORS® has worked with IMT over several years to minimize the impact on older homes and worked to ensure that the proposed legislation did not stigmatize or disadvantage older homes in any way. On June 5, NAR send a letter to Senators Bennet and Isakson, applauding their efforts on the bill.