Appraiser Income

CoreLogic, a property information, analytics and data-enabled services provider, announced Thursday that it acquired a la mode technologies.

a la mode provides subscription based software solutions to more than 40,000 appraiser professionals across the U.S. The software solutions provided by the company facilitate the aggregation of data, imagery and photographs in a GSE-compliant format for the completion of residential appraisals. …continue reading the rest of this post: CoreLogic buys a la mode

Appraisal Institute Requests Appraisal Standards Board to Rework Q&As

The Appraisal Institute in an April 13 letter to the Appraisal Standards Board formally requested changes to or the retraction of Q&A 2018-12, Employing an Extraordinary Assumption when a Client Provides Inspection Data andQ&A 2018-13, Appraisal Reporting — Certifications and Signatures.

The Q&A 2018-12 originally was released this past January but retracted by the ASB shortly thereafter to clarify information and interpretations. It was re-released March 29, the same day that Q&A 2018-13 was released.

The Appraisal Institute’s Professional Standards and Guidance Committee expressed concern that the Q&As may be amending Uniform Standards of Professional Appraisal Practice definitions and creating new requirements rather than interpreting USPAP itself. This situation could potentially expose appraisers and others to unnecessary liability. …continue reading the rest of this post: Appraisal Institute Requests Appraisal Standards Board to Rework Q&As

Bank Regulators Just Raised Appraisal Threshold to $500,000, Evaluations Now Required for Smaller Transactions

On Monday, April 9, 2018, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and Federal Deposit Insurance Corporation published the final rule officially amending regulations requiring appraisals of real estate for certain transactions. Here’s what you need to know:

1. The final rule increases the threshold level at or below which appraisals are not required for commercial real estate transactions from $250,000 to $500,000.
2. For transactions exempted from the appraisal requirement as a result of the revised threshold, regulated institutions must obtain an evaluation of the real property collateral “that is consistent with safe and sound banking practices.”
3. This is the agencies’ first change to the $250,000 threshold since it was first established in 1994.

…continue reading the rest of this post: NEW APPRAISAL THRESHOLD ON COMMERCIAL EFFECTIVE APRIL 9TH

The latest episode of the ABA Banking Journal Podcast tackles the shortage of qualified appraisers — especially in rural areas, where lenders are seeing delays of several months in getting appraisals for commercial real estate and agricultural transactions. Shan Hanes, president and CEO of Heartland Tri-State Bank in Elkhart, Kan., discusses how high demand for appraisals from only five or six appraisers in his area means that his clients face long waits. “I haven’t seen one done in less than 90 days for several years,” he says. In addition to the opportunity cost of delayed investment, he explains, it also harms younger agricultural borrowers. Sellers might sell for a lower price to “an older farmer who’s got the cash,” Hanes says, while young and beginning farmers with greater credit needs get left out while waiting on an appraisal.

The barriers to entry of occupational licensing as a potential new appraiser are also draining talent out of rural communities, Hanes notes. He shares a story of a young family farmer in his area who wanted to supplement his farm income as an appraiser but could not persuade any local appraisers to take him on as a trainee. The result, Hanes said, was that the young man accepted a job in seed sales that took him out his home area — continuing the rural exodus.

ABA’s Sharon Whitaker outlines some of the efforts the American Bankers Association has taken to address the appraiser shortage and minimize its negative effects, including successful advocacy for the Appraisal Qualifications Board to reduce the minimum requirements in a way that does not affect appraisal quality but lowers barriers for new appraisers to join the field. Whitaker also discusses a pending proposal by the banking agencies to raise the de minimis threshold for commercial transactions not requiring an appraisal from $250,000 to $400,000 — an approach ABA supports.

For audio player podcast, visit:

Podcast: How the Appraiser Shortage Harms Rural Communities and Young Farmers

For an audio clip, click here to listen to this week’s episode.