The Consumer Financial Protection Bureau, Federal Reserve Board, and Office of the Comptroller of the Currency announced that the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2021 will remain at $27,200 (2020’s threshold). Dodd-Frank added appraisal requirements for higher-priced mortgage loans, including a requirement that creditors obtain a written
Appraisers
Illinois Bill Seeks To Address Appraisal Discrimination
A bill was introduced in the Illinois state legislature to prohibit discrimination in appraisals. HB 5862 states that an appraiser or real estate licensee engages in prohibited discrimination “when he or she considers the actual or perceived race, color, religion, or national origin of the owner of the real estate or the residents of the…
La. Appraisers Board Can’t Challenge FTC Case Yet: 5th Circ.
The 5th Circuit ruled that it was premature to review the Louisiana Real Estate Appraisers Board allegation that a Federal Trade Commission action cut into competition. The FTC alleged in its 2017 complaint that the Board interfered with the free market and restrained price competition by limiting the ways appraisal management companies could calculate an…
Pennsylvania Passes Law Allowing Limited Broker Price Opinions
Pennsylvania Gov. Tom Wolf signed HB 863, which allows the PA’s real estate brokers, associate brokers and salespeople to provide broker price opinions. The law defines a BPO as “an estimate … that details the probable selling price of a particular parcel of real property and provides a varying level of detail about the property’s…
Ill. Court: Tax Appeal Attorneys Not Engaged in Appraisal Practice
The Circuit Court of Cook County, Illinois (Chancery Division) ruled that attorneys who referenced comparable property valuations and market values based on an income approach as part of tax appeal proceedings were simply engaged in the traditional practice of law and not in appraisal practice. In Illinois State Bar Association vs. Illinois Department of Financial…
Ohio Supreme Court Remands Lowe’s Tax Assessment Due To New Case Law
The Ohio Supreme Court on Tuesday vacated an Ohio Board of Tax Appeals decision affirming a county appraiser’s $8.8 million valuation of a Lowe’s Inc. property. The Court found, in a 4-3 decision, that new case law required reconsideration. These new cases established that comparable properties used to determine a property’s market value generally must…
Cal. Court Finds Appraiser Cannot Be Sued By Borrower If Appraisal Prepared For Lender Only
The California Court of Appeal, Third Appellate District certified for publication its recent decision in Tindell v. Murphy. In that case, mortgage borrowers sued an appraiser saying they relied on his appraisal to purchase their home. The trial court had dismissed the suit because the borrowers were not intended users of the appraisal since…
Multiple States Considering Valuation Legislation
The Appraisal Institute reported that 21 pieces of legislation affecting the valuation profession are pending in 14 states. A list can be found at https://www.appraisalinstitute.org/advocacy/washington-report/washington-report-state-news-current-issue/#15
House Committee Passes USPAP Exemption Bill
The House Financial Services Committee recently passed legislation exempting appraisers from having to conduct evaluations in accordance with the Uniform Standards of Professional Appraisal Practice for loans under $250,000 that were held in a portfolio for three years. Appraisals are not required for loans of $250,000 or less, but federal bank regulatory policy requires lenders…
Agencies Issue Temporary Exceptions To Appraisal Requirements In Hurricane Areas
The Federal Reserve Board has issued a statement providing for temporary exception to appraisal requirements in hurricane areas affected by severe storms and flooding related to Hurricanes Harvey, Irma, and Maria. Below is that statement:
Responding to widespread damage caused by Hurricanes Harvey, Irma, and Maria, four federal financial institution regulatory agencies today took action…