Filtered by tag: National Remove Filter

CFPB Releases List of Rural and Underserved Counties

The Consumer Financial Protection Bureau on Feb. 12 released its 2019 list of rural and underserved counties, which those entities can use to determine if they are exempt from certain appraisal and ability-to-pay rules.

Click here to view the list.

Help AI Support Real Estate Appraisers Everywhere - Survey

AI periodically surveys real estate appraisers to capture the current state of the real estate appraisal profession. We welcome you to take part in this important survey. Your answers will help AI serve all real estate appraisers, and increase public awareness of the appraisal profession.

This survey is anonymous and will take about 4-5 minutes to complete.

Read More

AI Among Groups Opposing Federal Banking Agencies' Action

The Appraisal Institute on Feb. 4 was one of six organizations signing a comment letter that “strongly opposed” a proposal from the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency to raise the residential appraisal threshold from $250,000 to $400,000. 
 
If the proposal is approved, nearly three quarters of residential real estate loans held in portfolio by depository institutions would be exempt from appraisal requirements. A high percentage of those loans are from rural areas.
 
The same proposal was evaluated and answered in 2017 as part of the process of the federally mandated Economic Growth and Regulatory Paperwork Reduction Act — a regulatory relief effort that encompassed four different notice and comment periods and six public hearings. At that time, the same agencies that are now proposing the increase said it “would not be appropriate” to increase the residential threshold considering safety and soundness and consumer protection concerns.
 
The “about face” is an apparent attempt by the agencies to pacify rural community banks that received discrete relief from Congress through EGRPRA. The valuation organizations that signed the comment letter have also requested a hearing on the proposal, but the agencies continue to deliberate on the issue.
 
In addition to the Appraisal Institute, the comment letter was signed by: 
  • American Guild of Appraisers, OPEIU, AFL-CIO;
  • American Society of Appraisers;
  • American Society of Farm Managers and Rural Appraisers;
  • MBREA | The Association for Valuation Professionals; and
  • RICS.
Read the comment letter.

Registration Opens for 2019 LDAC Conference; Sponsorship Opportunities Available

The Appraisal Institute opens registration Feb. 12 for its 2019 Leadership Development and Advisory Council conference, which will take place May 15-17 at the Washington Marriott at Metro Center.
 
LDAC is an innovative approach to valuation leadership development, and serves as an incubator of new ideas and helps to establish an appraiser presence in Congress with a day of lobbying on Capitol Hill. Registered attendees who participate in the complete LDAC program will receive Appraisal Institute continuing education credit.
 
Learn more about the 2019 LDAC conference and find registration information.
 
The Appraisal Institute also announced that it is offering sponsorship opportunities for LDAC. All money raised will be used to sponsor one of the numerous activities at the 2019 conference. A complete sponsor list will be published at the event and online.
 
Find more information on sponsorship opportunities.

Opportunity Zones Create Numerous Questions for Valuation Professionals

The Appraisal Institute recommends that its professionals pay close attention to investment trends associated with the Opportunity Zones that were created through last year’s tax reform legislation. The U.S. Department of the Treasury has certified 8,700 Opportunity Zones — a process performed in conjunction with state and local government agencies. 
 
Opportunity Zones are designed to spur economic development by providing tax benefits to investors by allowing them to defer tax on any prior gains invested in a Qualified Opportunity Fund until the date on which the investment in a QOF is sold or exchanged, or until Dec. 31, 2026 — whichever comes first. There is a 10 percent exclusion of the deferred gain for QOF investments held for more than five years; when held for more than seven years, the exclusion is 15 percent and when held for 10 or more years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date the QOF investment is sold or exchanged.
 
The rules and regulations for this economic development tool are trickling out, including materials from the IRS. As a result, valuation-related questions are materializing as market activity within Opportunity Zones begins. One issue is the use of a sale from outside an Opportunity Zone as a comparable for one inside an Opportunity Zone, and vice versa. Additionally, data lags may necessitate fully informed market conditions adjustments. Appraisers likely also will be asked to segregate building and land values for tax planning purposes.
 
The IRS offers more information on tax issues with Opportunity Zones. 
 
The Treasury Department provides a complete list of Opportunity Zones through its Community Development Financial Institutions Fund site. Many states offer information on local Opportunity Zones through their departments of commerce and economic development, such as this one from Illinois

72 Members Received Designations from the Appraisal Institute During January

The Appraisal Institute designated 72 members in January, including; 1 who received MAI AND SRA designations; and 42 who received MAI designations; 7 who received SRA designations; 17 who received AI-GRS designations; 5 who received AI-RRS designations.

Congratulations to NC Chapter Members Richard Duane Earley, MAI and William (Bill) W. Johnson, MAI.

AI Opposes Residential Appraisal Threshold Increase

The Appraisal Institute, the American Society of Appraisers, the American Society of Farm Managers and Rural Appraisers and the Massachusetts Board of Real Estate Appraisers participated in bipartisan meetings with members of Congress Jan. 15, urging them to review a proposed increase to the residential appraisal threshold.
 
The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency have proposed raising the residential appraisal threshold from $250,000 to $400,000.
 
The Appraisal Institute is asking appraisers to voice their opposition to the proposed increase. AI created an action alert where its professionals and others can weigh in on this important matter. The action alert provides talking points that appraisers can use in their letters, and AI encourages appraisers to share their own stories and experiences when speaking against the proposal. 
 
Use the AI action alert to make your voice heard.
 
If you have any questions regarding this issue, contact Bill Garber, AI’s director of government and external relations, at 202-298-6449 or by email at [email protected].

Appraisal Institute President Outlines 2019 Goals

2019 Appraisal Institute President Stephen Wagner, MAI, SRA, AI-GRS, outlines the Appraisal Institute’s priorities for the year in the organization’s latest video.

As the Appraisal Institute continues to serve as the global valuation profession’s thought leader, the organization remains at the forefront of the most pressing issues facing appraisers today.

Read More

26 Members Received Designations from the Appraisal Institute in December

The Appraisal Institute designated 26 members in December, including five who received their MAI designations, seven who received their SRA designations, 12 who received their AI-GRS designations and two who received their AI-RRS designations. 

Click here to view.

Appraisal Institute Recognizes 1 Individual as 'Volunteer of Distinction' for Q4

The Appraisal Institute on Jan. 9 announced the recognition of one individual as a "Volunteer of Distinction" for the fourth quarter. 

Read More

Appraisal Institute Accepting Nominations for 2 Awards to be Presented in July

The Appraisal Institute announced Jan. 9 that it is accepting nominations for the Lifetime Achievement Award and the Outstanding Service Award, two ways AI recognizes some of its most deserving professionals. Nominations for both awards are due May 24. Awards will be presented at the Appraisal Institute's 2019 Annual Conference July 22-24 in Denver.

Click here to learn more.

Slowdown in Industrial Sector Likely, Which Could Favor Investors, JLL Reports

By Michael Tucker

After several quarters of record-breaking high rents and low vacancies, the industrial real estate sector will likely "pause" soon, said JLL, Chicago. But it said that could be good news for smart owners, investors and occupiers.

Read More

FEMA Brings Back Flood Insurance Policies During Lingering Government Shutdown

By Caroline Basile

The Federal Emergency Management Agency announced late Friday that it will resume selling and renewing flood insurance policies, rescinding its initial ruling that the National Flood Insurance Program cannot be renewed amid the ongoing government shutdown.

Read More

AI Seeks Public Hearing on Appraisal Threshold Increase

The Appraisal Institute and 15 other organizations submitted a letter Dec. 21 to the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency requesting that they hold a public meeting as part of the process to determine whether to increase the residential appraisal threshold from $250,000 to $400,000. 

Click here to read the letter.

AI Rejects Proposed Residential Appraisal Threshold Increase

The Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve on Nov. 20 released a proposal to increase the threshold at which residential home loans require an appraisal to $400,000 from $250,000.
 
The rule would not apply to loans wholly or partially insured or guaranteed by, or eligible for sale to, a government agency or government-sponsored enterprise.
 
“The Appraisal Institute strongly objects to the FDIC’s proposal to raise residential appraisal thresholds,” said 2018 AI President James L. Murrett, MAI, SRA. “Congress just considered establishing a residential appraisal exemption and instead chose to enact a vastly different allowance involving appraisers in rural areas. This proposed rulemaking flies in the face of this action, and recreates the same type of environment that led to the housing crisis.
“By increasing the residential appraisal threshold from $250,000 to $400,000, FDIC would threaten the vital role that appraisers play in real estate transactions” said Murrett. “This action would undermine the crucial risk mitigation services that appraisers provide clients and users of appraisal services.
 
Murrett noted, “Raising the threshold means more evaluations will be allowed in place of appraisals. “The Appraisal Institute anticipates that will result in a return to the loan production-driven environment seen during the leadup to the financial crisis, where appraisal and risk management were thrust aside to make more – not better – loans. Apparently, the FDIC has learned nothing from that experience.
 
“Reducing regulations may seem to make sense initially, but the FDIC’s announcement raises significant safety and soundness concerns that the Appraisal Institute finds deeply disturbing,” Murrett said.

Some Economists See Looming Recession, but Goldman Sachs Says

By Kelsey Ramirez

Many economists are predicting the next recession could occur in 2020 or even 2019, but that’s not what Goldman Sachs is predicting.

Read More

AI and Land Trust Alliance Support Conservation Easement

The Appraisal Institute and the Land Trust Alliance co-signed a letter Nov. 29 urging congressional leaders to advance the Charitable Conservation Easement Program Integrity Act, which would help maintain the integrity of conservation easement donations by closing an apparent loophole related to abusive syndicated tax shelters. 

Click here to read more.

42 Members Designated in November

The Appraisal Institute designated 42 members in November, including 18 who received MAI designations, six who received SRA designations, 16 who received AI-GRS designations and two who received AI-RRS designations.

View the list here.

NCAI Comments on NCUA's Proposal

As you're aware by now, AI joined 17 other groups to submit public comments opposing NCUA's proposal to quadruple – from $250,000 to $1 million – the appraisal threshold for non-residential real estate loans. Our own state chapter (NCAI) has submitted public comments as well. Click the button below to read them.

Read NCAI's Letter

72 Members Designated in October

The Appraisal Institute designated 72 members in October, including; 1 who received MAI AND AI-GRS designations; and 34 who received MAI designations; 11 who received SRA designations; 17 who received AI-GRS designations; 9 who received AI-RRS designations.

Click here to view.