Louisiana 
Real Estate Appraisers
Coalition 
IN THIS ISSUE
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2nd Quarter-  2017
TITLE
LAREAC 2nd Quarter Newsletter
Good Day Appraisers,

There is quite a bit of information to share with you today so please pardon the long newsletter. 


Federal Trade Commission Files Administrative Complaint against LREAB

On May 31, 2017, The Federal Trade Commission announced that they have filed an  administrative  complaint against the Louisiana Real Estate Appraisers Board, alleging that the board was unreasonably restraining price competition for appraisal services in Louisiana. 

In the administrative complaint, the FTC alleges that the Louisiana appraisers board limits the freedom of individual appraisers and their customers to engage in bona fide negotiations to set appraisal fees for real estate appraisals in  Louisiana.

According to the FTC's complaint, the 2010 Wall Street Reform and Consumer Protection Act, popularly known as"DoddFrank", required appraisal management companies to pay "a rate that is customary and reasonable for appraisal  services performed in the market area of the property being appraised." The FTC alleged in its complaint that the appraisal board's regulations exceeded the scope of the federal mandate."

Bruce Unangst, Executive Director of the Louisiana Real Estate Appraisers Board (LREAB), said:

"Respectfully, the FTC is just plain wrong. By issuing this legally faulty and factually incorrect complaint, the FTC is seeking to punish a Louisiana state agency for following federal regulatory mandates. Specifically, Dodd-Frank regulations - intended to protect consumers by ensuring the integrity of home mortgage appraisals - require that state appraisal agencies ensure Appraisal Management Companies (AMCs) pay "customary and reasonable" fees for home appraisals. It is the federal government that put these requirements on state appraisal agencies, and our Board followed these federal regulations after an open, public and transparent rule making process. To now suggest that LREAB's good faith efforts to comply with federal law is some sort of shadowy price-fixing conspiracy is ludicrous. Congress and six financial regulatory agencies in Washington have directed Louisiana to do exactly what the FTC is now alleging is an antitrust violation.

"These claims distort the reality of the Board's conduct in an attempt to stitch together a conspiracy where none exists. We plan to vigorously contest these charges and defend the interests of Louisiana consumers while ensuring our state complies with federal appraisal independence regulations."

W. Stephen Cannon, Constantine Cannon LLP, Washington, D.C., counsel to LREAB, said:

"This is truly an overreach by the FTC, in direct contradiction to the federal government's focused and consistent efforts since the 1980s to ensure the integrity of the residential mortgage market. With this misguided attempt at antitrust enforcement, the Commission has placed both federal and state efforts to protect consumers from unsound mortgages in serious jeopardy. I have no doubt a judge will agree that the Board's actions to protect Louisiana consumers were appropriate and justified."

The Louisiana Appraisers Coalition has been and will continue to stay abreast of this case and believes that this complaint is a direct contradiction of the federal law of the Dodd/Frank Act. It appears that the Louisiana Real Estate Appraisal Board copied the federal law and has attempted to enforce these laws as mandated by the federal law and the final rules.  

It appears that some of the AMCs failed to follow the Dodd/Frank rules of selecting and compensating appraisers at a reasonable and customary fee according to the presumptions of compliance with the Dodd/Frank Act and "dictated" the fee that would be paid to the appraiser with no negotiation to allow a free market determination.  
 
The LREAC will continue to advocate on behalf of appraisers and ask that appraisers continue to report any issues to the LREAB by following the instructions on the LREAB website- LREAB Complaint Hotline-- Click to file a complaint 

The Louisiana Real Estate Appraisers Coalition has been and will continue to advocate for appraisers; however, the LAREAC needs your support to continue to advocate on behalf of all appraisers. Please join or consider making a donation to LAREAC. 

Join or Renew
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You can read the LREAB Statement FTC Press Release, FTC Complaint and the Response from Louisiana to the FTC's complaint below. 


LREAC Leadership Attends The 
Association of Appraiser Regulatory Officials (AARO) Conference
Spring 2017 AARO Conference


AARO Joe Mier, with LAREAC and a number of other appraisers from the Network of State Appraiser Organizations attended the Association of Appraiser Regulatory Officials (AARO). 

One of the main topics of the conference was the so-called "Appraiser Shortage" and possible solutions to the issue including alternative standards for getting more appraisers into the profession. As the opportunity arose, we made comments on the issue of "appraiser shortages" Our position is that it is not a training problem as prior to 2010 when there was a steady flow of new professionals entering the market. What's changed is the economics and liability factors involved with hiring and training new appraisers that have had an affect on the decreasing number of new professionals entering the market. 
 
The Appraisal Qualifications Board (AQB) held their normal meeting the morning that the AARO event begins and gave updates on various items but the main topic was the 3rd Exposure Draft of the minimum qualifications criteria. During the public comment period most appeared to NOT be in favor of drastic changes in the requirements, but acknowledge that the four-year degree for residential appraisers may need to change. The AQB said that they had received well over 100 comments and they read every one of the comments received. They would like to encourage appraisers to send in their comments during the comment period as they are reviewed and considered in the final decisions. 

Click Here to Read>> Proposed Changes to the Real Property Appraiser Qualification Criteria  the comment period has closed on the 3rd draft; however, there will be a 4th draft due a failure to adopt the previous one. Be prepared for the call to action on the 4th draft when the comment period is open for appraisers  to submit comments. 

We attended many of the breakout sessions and stood up for Appraisers as negative comments were mentioned in the presence of regulators in regard to appraisers. We insisted that these types of comments stop immediately especially when speaking in front of regulators that regulate appraisers. Do not paint all appraisers in a negative light when they may have been dealing with only a few "war stories" of negative experiences with appraisers on their appraisal panel. We insisted that the majority of appraisers are professionals and should be treated and represented in a professional manner. 

We also had opportunities  to have private discussions face to face with the leadership of TAF, ASC, AI and other appraiser organization leaders to give them feedback on what is actually happening to fee appraisers on a daily basis due to the over regulation and undue burdens placed on appraisers. 
 
The take away from AARO was that appraisers need to be engaged in their profession and make the time to attend events like AARO where discussions are taking place that will have an impact on the appraisal profession. One of the things that came to mind in that very large meeting room of probably 300+ people was that everyone in that room had a job that is connected to the appraisal profession. From the regulators, lenders, AMC, title companies and Appraisal Associations all of them have jobs due to the appraisal profession. We have to engage and stand up for ourselves and quit allowing others to speak for appraisers. 
 
 
Take a look at the Spring 2017 AARO Conference Agenda to get an idea of the topics discussed.

The next conference will take place on October 19-22, 2017 in Washington DC at the  Westin Washington DC City Center Hotel. We are encouraging appraisers to attend and engage in the discussions in a professional manner. 

New Appraisal Board Members Appointed
New board members to the Louisiana Real Estate Appraisal Board have been appointed by  Governor John Bel Edwards 

Picture below from left to right are: 

Seymon "Windy" Hartzog- New Member- 1st Congressional District- Residential Certified

Kara Platt 5th Congressional District - New Member- General Certified

James "Jim" Purgerson Jr. - At Large- Bank Representative

Cheryl Bella 6th Congressional District- General Certified

Clayton "Clay" Lipscomb At Large- General Certified

Janis Bonura- At Large- Residential Certified

Terry Myers 3rd Congressional District - New Member - Residential Certified

Margaret Young 2nd Congressional District - New Member- Residential Certified

Not shown here are 2 additional new members: 
Robert McKinnon Jr. - New Member- 4th Congressional District - AMC Representative- 

Rebecca Rothschild - New Member-At Large- General Certified 

2017 AP Board Members

Thank you, to each member of LREAB for your willingness to serve on the Louisiana Real Estate Appraisal Board. 

We would also like to say thank you to the past board members that have served on the LREAB. 
 The LREAB Considers Alternate Disciplinary Action for Minor Violations.
what's new
The Louisiana Real Estate Appraisers Coalition leaders have spoken to the board about an alternative for appraisers having minor violations that presently has to be reported to the Appraisal Subcommittee (ASC) as an on record "Disciplinary Action."

This action has caused major issues for appraisers when having to report Disciplinary Actions for minor items at renewal time or when applying to complete assignments for new clients. These issues such as a minor USPAP issue do not rise to the level of being reported to the Appraisal Subcommittee; therefore a suggestion for an alternative solution of education instead of a "disciplinary action" on the appraisers record be used to correct the issue. 
 
On February 20, 2017, The board discussed mandated education in lieu of disciplinary action, particularly those infractions involving minor violations. Mr. Henk VanDuyvendijk, the board investigator, spoke of such cases that have resulted in appraisers losing their livelihood.

Mr. VanDuyvendijk indicated that "The ASC has no problem with this type of alternative and it has worked quite well in other jurisdictions. In fact, one of the state approved education providers, currently has four (4) courses available for this purpose. The courses are four hours in length, with a final examination, and cannot be used for continuing education credit. The board voted and approved the allowance of education in lieu of formal disciplinary action being report to the ASC.

Thank you, LREAB for listening to our concerns and taking action on this very important issue. 

 


New Fee Survey Released from LREAB


T he following study was commissioned by the Louisiana Real Estate Appraisal Board, and was conducted using generally accepted research methods, models, and techniques. The survey of mortgage lenders who provided loans in Louisiana and licensed Louisiana real estate appraisers to collect information on typical residential real estate appraisal fees paid in Louisiana in 2016. 

Fee data was restricted to appraisal fees paid directly to licensed appraisers (i.e., not routed through appraisal management companies (AMCs) or third party providers, per guidance of relevant federal regulations for determining "customary and reasonable" fees.

The Louisiana Real Estate Appraisal Board (LREAB) commissioned this study to provide mortgage lenders and appraisal management companies doing business in Louisiana with a convenient, concise, and complete report meeting the requirements for "Customary and reasonable" appraisal fees under the  Alternative presumption of compliance detailed at:

Title 12 - Banks and Banking
Chapter X - BUREAU OF CONSUMER FINANCIAL PROTECTION Part 1026 - TRUTH IN LENDING (REGULATION Z)
Subpart E - Special Rules for Certain Home Mortgage Transactions
Section 1026.42 - Valuation independence
Sub-section (f) - Customary and reasonable compensation. (1) Requirement  to provide customary and reasonable compensation to fee appraisers.

Paragraph (f) (3) - Alternative presumption of compliance states:

"A creditor and its agents shall be presumed to comply with
 
 paragraph (f)(1) of this section if the  creditor or its agents determine the amount of compensation paid to the fee appraiser by relying on  information about rates that :

(i) Is based on objective third-party information, including fee schedules, studies, and  surveys prepared by independent third parties such as government agencies, academic institutions, 
and private research firms;

(ii) Is based on recent rates paid to a representative sample of providers of appraisal  services in the geographic market of the property being appraised or the fee schedules of those 
providers; and

(iii) In the case of information based on fee schedules, studies, and surveys, such fee  schedules, studies, or surveys, or the information derived therefrom, excludes compensation paid to  fee appraisers for appraisals ordered by appraisal management companies, as defined in paragraph  (f)(4)(iii) of this section."

 

This is for informational purposes only and is not directing anyone on business decisions that they would make when determining the fees that they would charge for the services that they provide. 

calendar
 
Louisiana Real Estate Appraisers Board 
2017 Meeting Calendar:

July 17, 2017
August 21, 2017
September 18, 2017
October 16, 2017
November 20, 2017
December 18, 2017

The board meetings are open to the public and public comment opportunities are available at each meeting. Everyone is encourage to attend and engage with your profession.  


Alternatives to Evaluations: Webinar Recording and Sample Reports
TAF 2
Alternatives to Evaluations: Webinar Recording and Sample Reports

The Appraisal Foundation is pleased to provide a  link  to the audio recording and materials from their recent webinar, Alternatives to Evaluations: Using Restricted Appraisal Reports in Your Practice.
AI Lobbies to Modernize Appraisal Regulatory Process

Capitol Building
AI's annual Leadership Development and Advisory Council conference, held May 3-5 in Washington, will lobby lawmakers to take legislative action to address appraisal modernization and the regulatory burdens that appraisers face. A hearing on the issue was held in November 2016, but so far no legislation has been introduced. 

Key issues the Appraisal Institute wants to see addressed:
  • Federal regulation.Appraisers are regulated by the states, but they also face significant federal oversight and constantly evolving standards and qualifications - is direct federal oversight necessary?
  • State-by-state portability.Appraisers often work in multiple states and in doing so they face increased regulatory obligations, including state-by-state background checks for renewals, reciprocity licenses and temporary practice permits in many situations. 
  • Uneven playing field.Where appraisals are not required by federal law, many states allow valuation services to be provided by individuals who may not be held to the same standard as appraisers. Rigid appraisal standards restrain appraisers from providing competing services for which they are the most qualified to perform. 
  • "Recipe" approach to appraisal.Appraisal "methods and techniques" should not be developed as a set of homogenous rules, and the valuation profession does not need additional rules and real estate industry stakeholders deserve better than to have all markets treated as the same.
  • Federal agency rules.Numerous rules affecting valuation professionals have been issued by federal agencies since the passage of the Dodd-Frank Act. Such rules merit congressional oversight.

The Commercial Corner

Commercial Appraiser News From the NAR

T he CRE® 2017-18 Top Ten Issues Affecting Commercial Real Estate
CRE Logo


The CRE 2017-18 Top Ten Issues Affecting Real Estate:
  1. Political Polarization and Global Uncertainty
  2. The Technology Boom
  3. Generational Disruption
  4. Retail Disruption
  5. Infrastructure Investment
  6. Housing: The Big Mismatch
  7. Lost Decades of the Middle Class
  8. Real Estate's Emerging Role in Health Care
  9. Immigration
  10. Climate Change
Click here for the rest of the story 

Commissioned by NAR, the ALERT Report explores potential roadblocks, risks and opportunities which could impact the commercial real estate industry in the coming years. Research was conducted by Swanepoel T3 Group and centers on key areas including capital markets, technology, e-commerce, sustainability, and more.  Download the report for free.


 Download the digital-only REALTORS┬« Legislative Meetings recap to see how members like you are making a difference for commercial real estate.

This special issue features members interacting with their congressional representatives and key takeaways from all of the governance, education, and networking at this year's meeting in D.C.



Supervisory Appraisers Needed



Help
There are a number of new appraisers that are searching for a Supervisory Appraiser in the area. 

If you are willing to be a supervisory appraiser please let us know and we will share that information in the appraisal community. 

Also if you are new appraiser professional and are looking for a supervisory appraiser please let us know and we will share that information in the appraisal community. The state is researching more ways that supervisory appraisers could help without having to employ or take on the liability of the trainee appraiser but give guidance and direction. 

We would also like to encourage all appraisers to join LAREAC to stay informed. 

We have one new professional this newsletter that is currently searching for a supervisory appraiser. 

Mr. Derek May of Denham Springs- I am attaching his resume below please feel free to reach out to Mr. May if you would like to get more details. 


Tips and Tricks 
Find Size of a Home Lot or Plat of Land

FindLotSize.com provides a map measurement tool as well as a street view (if available) of the property. All services provided by FindLotSize.com are free and registration is not needed.

FindLotSize.com also works on your iPhone or Android cellphone. To use enter www.findlotsize.com into your cellphone browser.

Find a Lot



Volunteer
You're invited to atte nd NOMAR Leadership & Volunteer Recruitment Meet & Greet with NOMAR, GSREIN, and CID leaders!
 FROM NOMAR--

Would you like to get more involved and potentially pursue a leadership role in NOMAR, CID or GSREIN?

DATE Monday, July 10
TIME 2 - 3:30 p.m.
LOCATION NOMAR: 3645 N I-10 Service Rd, Metairie 70002
   
The President of each organization will explain the role and responsibility of the Board of Directors for each organization and the value gained by serving in a leadership position. President-elects are invited to participate as well in order to help our recruits understand what is in it for them and why they should get involved.
 
Come and bring a friend. In this informal setting you will learn how to get involved to help shape the future of or organizations. We will also explain the qualifications needed to run for a director and how to fulfill them.

AGENDA
 
2 p.m.  Welcome and Introductions - NOMAR CEO Missy Whittington
  1. NOMAR President Josie DeGrusha
  2. NOMAR President-elect Cindy Callais
  3. CID President Matt Eaton
  4. CID President-elect Cres Gardner
  5. GSREIN President Ginger Wiggins
  6. GSREIN President-elect Dee Halphen
  7. NOMAR Staff: Rosemary Scardina, Nell Carmichael, Brooke Chandler   
2:05 p.m. The President of each organization explains the role and responsibility of the Board of Directors for each organization and the value gained by serving in a leadership position.
 
NOMAR President               Josie DeGrusha
CID President                       Matt Eaton
GSREIN President               Ginger Wiggins
 
After each presentation, there will be time for questions.
 
3 p.m. Current President-elects are welcome to give testimonials on the value gained by serving as a Director
 
3:15 p.m. Missy Whittington, NOMAR CEO - Overview of time commitment and the qualification requirements & information on how to meet those requirements. Q&A from attendees.
 
3:30 p.m. Conclusion of Event

NOMAR

Hurricane Season
2017 Hurricane Season is Here
The average life of a hurri cane is nine days and is most destructive during its first 12 hours onshore. A typical eye measures 20 miles across.

As we begin the 2017 Hurricane Season we remind everyone to make a plan personally and from a business standpoint. 

Business Checklist

Hurricane preparedness does not end at home. An often over-looked segment of hurricane safety is the workplace. Whether or not you are an employee or an employer, it is essential to take proactive steps in preparing for unpredictable storms and other disasters.

By taking the initiative to start planning early, you can create a plan that will have you fully prepared in the event of a disaster. While securing plans for your home and loved ones, take some time to focus on the future of your business or work place. Forty percent of small businesses that close due to hurricane damage do not reopen. In order to prevent your business from being another statistic, it is critical to prepare now.

To help, a Business Survival Plan has been compiled to serve as a comprehensive guide to safeguard your business. This Survival Plan provides steps to improve employee safety and protect property as well as important company information. It serves as an important tool to enforce your business' emergency plan in the event of any disaster. Keep this plan handy by printing it out and ensure you have covered all the relevant steps before the Hurricane Season begins.
Using these three key steps as guidelines will ensure you are prepared for any damages following any disaster. Furthermore, you should decide on a back-up location where your business could run smoothly if damages occur on the original site and discuss this with all employees. If your business is damaged remember to assess, document, and report them to your insurance company as soon as possible.
 
Step 1: Protect property
  • Invest in and install shutters or plywood in order to protect windows and doors from wind borne-debris.
  • Have the roof of your building evaluated to ensure it can withstand a storm.
  • Remove any branches or trees adjacent to your building that could potentially fall and damage it.
  • Sandbag any area that is subject to flooding.
  • Anchor and brace any large furniture (bookcases, shelves, filing cabinets) to wall studs.
  • Relocate any valuable or fragile possessions.
  • Secure all utilities including water heaters, gas tanks, and heaters and if necessary, raise them to higher locations to avoid water damages.
  • Secure electronics such as computers and other office equipment with straps or Velcro.
  • Turn off all the utilities prior to a hurricane making landfall if possible.
Step 2: Protect important documents and information
  • Designate important contacts to save that are crucial to business operations, such as employees, banks, lawyers, accountants, suppliers, etc.
  • Back-up documents that are not easily produced such as insurance documents, legal contracts, tax returns, and accounting statements to avoid water damage.
  • Seal these documents in waterproof containers onsite.
  • Save all your designated contacts and documents in an alternate, accessible off-site location.
Step 3: Keep A Preparedness Checklist
The below items should be gathered in one location at your place of business should a storm hit while you are on premises. This will help protect the safety of your employees should disaster strike during regular working hours and without ample notice.
  • Battery operated radio or television
  • Non-perishable three day food supply for you and your employees
  • Three day supply of water for you and your employees (One gallon of water per person, per day)
  • Coolers and containers for water and washing
  • Blankets, pillows, cots, and chairs
  • First Aid Kit and first aid manual
  • Flashlights, batteries, light-sticks
  • Tool kit (basic tools, gloves, etc.)
  • Camera and film for documenting damages
  • Whistle/signal flare to signal for help
  • Tarps, plastic bags, duct tape
  • Cleaning supplies, including mops, towels and garbage cans
  • Smoke alarms and fire extinguishers
  • Electric generator
  • Gas for vehicles, generators and other equipment
  • Cash, ATM cards, credit cards proper identification
  • Emergency contact information such as the nearest hospital and police, along with:
    • Life safety issues: 9-1-1
    • Small Business Administration (SBA): 1-800-359-2227
    • FEMA Tele-registration hot-line: 1-800-462-9029
    • Insurance company and agent's contact information
For more information about your business' survival guide, download  FEMA Business Toolkit or visit   FEMA: Plan & Prepare for tips and further examples of steps you can take to prepare your business.

LAREAC MEMBERSHIP IS SUPPORTING ADVOCACY OF YOUR PROFESSION

We invite ALL APPRAISERS to join LAREAC. 

Thank you, for being a part of LAREAC in 2017 together we are making a difference in the appraisal profession.

LAREAC has been advocating on behalf of appraisers to promote the appraisal profession, its image to the general public and users of appraisal services. 

LAREAC initiates discussions and analysis of issues affecting professional appraisers and monitors political action with the intent to influence legislation, regulation and public opinion toward the appraisal profession.

We have had LAREAC leadership in attendance at Appraisal Board Meetings to stay up to date on any issues that would have an impact on you.

We are inviting ALL appraisers to be a member of LAREAC, and if you are already a member, please make sure you renew your membership for 2017.

For only $99 you support the efforts of advocacy for your appraisal profession. Every dollar of your membership is used for advocacy on your behalf.

Thank you for supporting the Louisiana Real Estate Appraisers Coalition. May you be blessed with success in 2017.

Join or Renew
Do you have questions or suggestions? Let us know......


Until next time.....

Sincerely,
The Louisiana Real Estate Appraisers Coalition

"Together We Have A Voice That is Heard Loud and Clear"