Winter 2017
Quarterly Edition

'Tis the Season! The season to look upon the happenings of this year and posture ourselves for the next. As we reflect on 2017, one feature certainly rings out, change. It has been a year of many changes and adjustments, especially within our industry.

Technologies, policies, methodologies and more have evolved seemingly everyday. It is our organization's chief aim to serve our members by educating on these matters and providing the opportunity to make the most of them to grow your business.

We believe some of the most significant ways to accomplish such growth is by cultivating lasting, meaningful relationships among others in our body and through our educational platform. NSREA's newly formed College Campus Outreach Committee is setting plans in motion for 2018 to establish real estate valuation curriculum in at least one HBCU campus providing a viable career option while students are pursuing their undergraduate degrees.
 In the coming year we will seek more opportunities to provide continuing education for our members within their  markets and help establish new local NSREA Chapters. 

Thank you for your continued membership and support. Let's grow together!
Myra L. Lillard
President, NSREA

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In this year's final installment of the NSREA Quarterly, we'll look into some of the latest changes in the industry and what they could mean for the future of your business.
Temporary Waivers: Justified Request or an Assault  on Appraisers?

Recently two banking institutions, TriStar Bank of Dickson, Tennessee and City Bank & Trust of Guymon, Oklahoma, have submitted requests to the Appraisal Subcommittee to temporarily waive the requirement for use of state licensed or certified appraisers as authorized under Title XI of FIRREA which would apply to all property types. 

In their requests they justify the need for such a waiver by reporting an appraiser shortage in their respective areas, excessive appraisal fees and lengthy turn times and lack of incentive for prospective appraisers among other factors. To read the request letters click here. For more background information on the ASC and temporary waivers click here.

What implication could the approval of such waivers have on the appraisal industry? Many hold the same views as Appraisal Buzz Staff Writer, Joan Trice on the matter, an outright "attack on the profession." Click here  to read her piece And the Assault Continues for further insight and background on this issue. Could this be the beginning of a dangerous snowball effect, diminishing appraisers and the essential expertise and ethics they bring to the home-buying process? The ASC is encouraging input from the appraiser community as they consider these requests. Send your comments, let your voice be heard. 

Submit your comments to:
Jim Park
Executive Director
Appraisal Subcommittee
Appraiser Qualifications Board: News & Updates

Last month the Appraiser Qualifications Board released its Fourth Exposure Draft of Proposed Changes to the Real Property Appraiser Qualifications. If adopted, the Criteria would be far less rigorous than the current requirements and would therefore go into effect immediately as opposed to a future date. 

Principal among these changes are the education and experience requirements i ncluding the following:
  • Elimination of the Bachelor's Degree requirement for the Licensed Residential credential
  • An alternative path to the Bachelor's Degree for the Certified Residential credential
    • Bachelor's Degree in any field of study
    • Associate's Degree in a focused field of study
    • Successful completion of 30 credit hours in specified topics
    • Successful completion of CLEP exams equivalent to a minimum of 30 credit hours in specified subject matter
    • Any combination of credit hours in specified topics and CLEP exams that includes all identified topics. 
  • Reduced experience hours
    • Licensed Residential - 1000 hours to be obtained in no less than 6 months
    • Certified Residential - 1500 hours to be obtained in no less than 12 months
    • Certified General - 3000 hours to be obtained in no less than 18 months (1500 of which must be in non-residential appraisal work)
Click here  to read the Fourth Exposure Draft in its entirety. We encourage you to comment in writing to the AQB before the deadline on Friday, January 12, 2018. The AQB will also accept verbal comments at its public meeting in Washington, DC on Thursday, February 1, 2018. 

Please submit written comments on this exposure draft by mail or email.

Appraiser Qualification Board
The Appraisal Foundation 
1155 15th Street NW, Suite 1111
Washington, DC 2000

Appraisers and the Risk of Integrity

Conducting your business with integrity and competency should not cause lenders to put a "blacklist" target on your back. In the Appraisal Buzz feature, Good Appraiser, Bad Appraiser, Joan Trice discusses how problematic housing finance incentives can be and some of the ethical conflicts that are inherent because of the current policies. Trice raises concern over matters such as backlash for estimating below contract price, refusing to be less "rigid" and the emphasis on fee and turn time as opposed to quality reports, just to name a few. She also discusses what to do when you feel your independence has been violated. Check out the entire article here.
Appraisal Standards Board: Newly Issued Q&A for Dec 2017

Earlier this week the Appraisal Standards Board Issued its latest Q&A. These Q&A apply to the 2018-2019 USPAP which will be effective January 1, 2018. Topics include:

  • Communicating Assignment Results Without an Appraisal Report
  • Workfile Requirements When Communicating Assignment Results
  • Adding an Intended User 
  • Assignment Conditions versus Client Conditions 
  • Proposed Construction Employing an Extraordinary Assumption
  • Proposed Construction Employing a Hypothetical Condition
  • Personal Property Appraisal Assignment Involving Multiple Appraisers
  • Sales History in Fine and Decorative Arts Appraisal Assignment
  • Sales History in Machinery and Equipment Appraisal Assignment
It is important to keep in mind that while the Q&A is intended to provide clarity, advice and guidance,  it may not represent the only possible solution to the issues discussed nor may the advice provided be applicable to seemingly similar situations. 

Click here to check out the latest Q&A issue.

Quality and Condition: What exactly is the difference?

Taking the time to thoroughly understand the difference between quality and condition can not only elevate your appraisal analysis but also better support your report overall. In this feature, Carol Trice discusses the key differences between the two and when it is and is not appropriate to make adjustments to your Q and C ratings. Click here to read Quality vs. Condition.
The Appraisal Foundation: Upcoming Events

Appraisal Issues Task Force Meeting
Date: January 25, 2018
Time: 9:00 AM- 1:00 PM
Location: The Madison Hotel
1177 15th Street NW
(corner of 15th and M Streets NW)
Washington, DC 20005
Phone: 202-862-1600

This meeting will be chaired by PJ Patel (
Registration is $250.  For more info click here .

Appraiser Qualifications Board Public Meeting
Date: February 1, 2018
Time: 9:00 AM-12:00 PM
Location:  The Darcy Hotel by Hilton
 1515 Rhode Island Ave NW
 Washington, DC 20005
Phone:    (202) 232-7000

Click here to register.

Please note you will also be able to live stream this meeting remotely if you are unable to attend in person. To register for the live stream, please click click here. Important - this link is only for live stream registration - if you would like to attend in person, please sign-in and register via the website.

The Appraisal Foundation Advisory Council Meeting
Date: February 1-2, 2018
Location:  The Darcy Hotel by Hilton
 1515 Rhode Island Ave NW
 Washington, DC 20005
Phone:    (202) 232-7000

The TAFAC General Session meeting will be be held on Friday, February 2, 2018 starting at 9:00 am. TAFAC Committee meetings will be held on Thursday, February 1, 2018 starting at 1:00 pm. For more information click here.

Industry Advisory Council Meeting
Date: March 1, 2018
Time: 9:00 AM- 5:00 PM
Location:  New Orleans Marriott
 555 Canal Street
 New Orleans, LA 70130
Phone:     (504) 581-1000

The IAC Meeting is being held as a one day meeting. For more information click here.