Posted on September 21, 2009 by David Snyder

NAIFA Issues Response To Home Valuation Code of Conduct

The National Association of Independent Fee Appraisers (NAIFA) has issued a response to the Home Valuation Code of Conduct (HVCC). The HVCC became effective for single-family mortgage loans (except government-insured loans) originated on or after May 1, 2009, and delivered to Fannie Mae and has been a source of controversy for appraisers and lending institutions.

In its response, the NAIFA acknowledges a lot of the concerns about the HVCC that have been expressed by various segments of the mortgage industry. However, the NAIFA puts the responsibility on the lender. The response states:

The fact is that all of the concerns mentioned above are all the responsibility of the lending institution. They are responsible for making sure that the competency of the appraiser and the quality of the appraisal meets the standards required to execute a sound mortgage decision.

The NAIFA will be issuing a “Consumer Guide for Quality Appraisals” which will be available soon at www.NAIFA.com. The NAIFA response can be found at www.naifa.com/about/NAIFA_Responds
_to_HVCC_Issue8_28_09.pdf.

 

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Posted on September 17, 2009 by David Snyder

Eminent Domain Remains In The News

There can be no question that eminent domain remains a hot button issue. Regardless of your role in an eminent domain project, it is critical to always be mindful of this fact which was made evident by two recent articles.

In one, George Will wrote an op-ed article regarding a Texas case in which an author was sued for defamation regarding her description of the use of eminent domain for a project for a Dallas developer. The author, Carla Main discussed that condemnation project in her book “Bulldozed: ‘Kelo,’ Eminent Domain and the American Lust for Land.” Her book is very critical of the use of eminent domain for economic development. The Dallas developer sued Main and her publisher. Will, citing the Institute for Justice -- an Arlington-based public-interest group that represented the Kelo condemnees and other condemnees nationally – claims this is an example of “a national trend of attempted intimidation by litigation.” Will’s article, which was published by numerous papers locally and nationally, can be found at www.washingtonpost.com/wp-dyn/content/article/2009/08/19/AR2009081902262.html.


The other was written by Dana Berliner, a leader of the Institute for Justice. She has taken up the cause of the property owners challenging the taking of their property for redevelopment in Brooklyn including a new New Jersey Nets arena. That case, addressed in one of my posts below, is pending before the New York Supreme Court. The New York Daily News printed a lengthy editorial written by Ms. Berliner. That article can be found at www.nydailynews.com/opinions/2009/08/24/2009-08-24_end_eminent_domain_abuse.html.
 

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Posted on September 13, 2009 by David Snyder

Agreements Reached On Flight 93 Memorial Land

The federal government and landowners have reached agreements for the purchase of 1,400 acres at the Flight 93 crash site in Somerset County, Pennsylvania.  As a result, the government will not take those properties with its power of eminent domain.  Interior Secretary Ken Salazar stated the property owners would be paid a total of $9.5 million. 

The potential use of eminent domain has been very controversial.  Negotiations between the Park Service and the property owners lasted several years.  Secretary Salazar and Sen. Arlen Specter met with landowners last spring demonstrating the amount of attention given to this project.

 

However, not all of the property owners reached final agreements with the federal government,.  The federal government through the U.S. Department of Justice has initiated eminent domain proceedings to take land owned by one property owner, Svonavec, Inc.  However, that property owner will not contest the taking and will use the eminent domain process to determine the amount of “just compensation” to be paid.

 

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