What's Inside?
- TriStar Bank Waiver Update
- Taxes: DIY Could Cost You
- FHFA on the Value of AMCs
- Impact and Implications of Millennial Home Buyers
- Training the Next Generation
- New Tech: Adopt Early or Wait and See?
- Appraisal Qualifications Board Approves Revised Criteria
- Upcoming Events
The Winds of Change

Spring, a season marked by change and refreshing, exciting development is upon us. How fitting that the appraisal industry is following suit; from long awaited qualifications revisions and burgeoning technologies to an evolving housing market and everything in between this season is sure to bring exciting new opportunities for expansion, growth, and understanding.

Let's dive right into this first quarter installation of your NSREA Newsletter with an update on the TriStar Bank Waiver request.
The Appraisal Foundation Responds to TriStar ASC Waiver Request
In November of last year, TriStar Bank, a community bank in Tennessee, submitted a request to the Appraisal Subcommittee for a one-year waiver of appraisals for 2018. TriStar based its waiver request on an alleged shortage of appraisers which they claimed resulted in increased fees and slower turn times on appraisals (you can read the request letter here).

On March 16th, John S. Brenan -Director of Appraisal Issues within the Appraisal Foundation - responded urging the ASC to deny TriStar's request on the basis of the bank's inaccurate claims of appraiser unavailability and lack of evidence that that unsubstantiated appraiser shortage has raised the cost of appraisals. Brenan also reminds the ASC that allowances such as TriStar is requesting is precisely why FIRREA was established to begin with. Click here to read the full letter.

Similarly, in The Upside of Appraisal Waivers, SRA veteran and Appraisal Buzz contributor, Tom Boice likens TriStar's request to substitute trained and licensed appraisers for those on the "fringes of the real estate valuation" to a person "request[ing] a 'Medical Waiver' in which a non-licensed medical expert could serve as...doctors and surgeons."

To many it is apparent that lowering these standards would be reckless to say the least.

The deadline to submit your concerns with supporting views, arguments and written data is April 9th. Follow this link to submit.
Taxes, Better Left to the Pros?
The Appraiser Coach, Dustin Harris, discusses the benefits of delegation particularly as it relates to filing taxes. He explains how taking control of your own taxes could actually be more expensive than hiring a professional.

Click here to read his piece Off-Shouldering; The Key to Success.
FHFA Considers the Effectiveness of AMCs

This month the FHFA released a working paper which sought to determine whether or not appraisal management companies are value-adding by comparing them to lenders who conduct their own appraisals.

The verdict? FHFA concluded from their research that AMCs when compared to non-AMC appraisals "generally demonstrate a similar degree of overvaluation. At the same time, AMC appraisals are seen to be more prone to contract price confirmation and super-overvaluation." Which seems to answer the question of whether or not AMCs are adding value with no. The FHFA's working paper, which can be read here, goes on to discuss how AMCs can become more effective particularly in regards to quality assurance and acting as a firewall.

F or a summary of the FHFA's working paper check out this piece from DSNews.
Millennial Home Buyer's Impact

Last year millennials made up the largest group of home buyers at 34%, they also represented 68% of all first-time home buyers. So what exactly does this mean for the industry? Check out this Appraisal Buzz Magazine feature where Tim Evanko explores why millennials are purchasing homes despite problematic student loan debt and delaying marriage and children. The piece also discusses common expectations and misconceptions millennials have about the home buying process.

Such as they are "neither the GSEs, lenders, nor agents have a fiduciary responsibility to ensure the borrower's purchase investment is sound;" that leaves professional, independent appraisers as the best source for a value opinion that will better inform the buyer's decision. Click here to read more on the impact of millennials in the industry.
Training the Next Generation of Appraisers
If you've heard it once you've heard it a hundred times, the appraisal industry is graying; and while there are many contributing factors, there does not seem to be very much effort to reverse this trend. Enter Wells Fargo. Click here to read all about how the Real Estate Valuation Services within Wells Fargo has successfully revamped its appraiser training program and has gained a body of diverse appraisers with great initiative and fresh ideas.
New Technology: Pros and Cons of Being an Early Adopter

Technology is all around us, ever evolving and showing no signs of slowing down. Such advancements have not spared the appraisal industry. Often one is faced with the decision to either remain comfortable and continue to conduct business as usual or get ahead of the curve (and a jump on profitability) by implementing these new methods.

How does one know when to dive in and when to wait it out? What are the likely consequences for being an "early adopter"? According to Jeff Bradford, founder and CEO of Bradford Technologies, key to making this decision is the understanding that what you do as a valuation professional doesn't change; only how. If the how leads to better, faster, more economical valuations then one can hardly go wrong. Choosing not to adopt, Bradford says, "may be even more perilous." Click here to read more.
Appraisal Qualifications Board Approves New Criteria
On February 1st of this year, finally, after three years, several exposure drafts, many discussions, focus groups, meetings and comments, the AQB has approved criteria revisions allowing several options for entry into the residential appraiser profession.

This revised criteria includes significant changes to both educational requirements and hours of experience, all of which will go into effect May 1, 2018. Click here to view a summary of these exciting changes.
NSREA Board Meeting
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USPAP and Investment Analysis of Income Properties CE Classes
Date: April 25-27th
Location: Indianapolis, IN

14hrs Continuing Education Credits:
7hrs Investment Analysis of Income Properties
7hrs USPAP
More details to follow.
NAREB Mid-Winter Regional Conference
Date: April 12-14, 2018
Location: Sheraton Memphis
250 N Main St
Memphis, TN
Click here to register.
Realtist Week
Date: April 15-21st
Location: Renaissance
999 9th St NW
Washington, D.C.
Click here for the schedule of events.
ASB Public Meeting
The Appraisal Standards Board will hole a public meeting on April 20, 2018 in Las Vegas, NV.
Date: April 20th
Time: 9:00 AM-12:00 PM
Location: The Westin Las Vegas
160 E Flamingo Rd
Las Vegas, NV
Phone: (702)-836-5900
Click here to register for the live stream.
Appraisal Issues Task Force Meeting
The meeting will be chaired by PJ Patel (ppatel@valuationresearch.com).
Date: May 2nd
Time: 9:00 AM - 4:00 PM
Cost: $250 per person
Location: The Madison Hotel
1177 15th St NW
Washington, D.C.
Phone: (202) 862-1600
To book call (202) 862-1600 and ask for the AITF/The Appraisal Foundation meeting or click here .
The deadline for room reservations is April 1, 2018.
Click here for more information.
AQB Public Meeting
The Appraiser Qualifications Board will hold a public meeting on May 4, 2018 in Seattle, WA. This meeting is being held in conjunction with the Association of Appraiser Regulatory Officials (AARO). This meeting will focus on the implementation of the changes to the Real Property Appraiser Qualifications Criteria.
Date: May 4th
Time: 9:00 AM - 12:00PM
Location: The Westin Seattle
1900 5th Ave
Seattle, WA
Click here to register for the live stream.
Click here for more information.
Joint TAFAC and IAC Meeting
The Appraisal Foundation Councils (TAFAC and IAC) will hold a joint meeting on June 7, 2018 in Arlington, VA.
Date: June 7th
Time: 9:30 AM - 6:30 PM
Location: Crystal Gateway Marriott
1700 Jefferson Davis HWY
Arlington, VA
Phone: (703) 920-3230
The cut off date to make your room reservation is May 9, 2018.
Click here for more information.
NAREB Convention
Date: July 25-28th
Location: Atlanta Hilton
255 Courtland St NE
Atlanta, GA
Click here for more information.
2018 Congressional Black Caucus
Date: September 19-23rd
Location: Washington, D.C.
Click here for more information.