News/Minutes

NDAA President's Letter - August 2019

ND Governor's Resubmitted Waiver Request to the ASC

President Ibach's Report to the Membership

President's Report

To All NDAA Members:

• Membership:

First, let me thank all those who renewed their 2019 membership. However, as of today, 28 non-renewals are still outstanding. The NDAA Board of Directors will be personally contacting those individuals that have not renewed to ascertain their intent for 2019.

• Upcoming Educational Offering Review Case-Residential on March 28 & 29, 2019:

The NDAA is sponsoring the most requested education offering in Fargo. Please consider attending this course as it will definitely expand your knowledge in residential review assignments. Attending NDAA sponsored educational courses is vital in maintaining a balanced budget.

• Temporary Appraisal Waiver:

  At the February 13, 2019, Appraisal Subcommittee meeting, the Chairman, Mr. Arthur Lindo, reported that the North Dakota Department of Financial Institutions Commissioner, Ms. Lisa Kruse, is still planning to submit a second waiver request focusing on commercial real estate appraisals. This refocus is definitely an interesting turn of events.

   

• Proposed de minimis Increase:

Again, the Office of the Comptroller Over Currency (OCC), Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) (collectively-the agencies) are proposing to increase the residential appraisal threshold from $250,000 to $400,000. The 30-member Network of the State Appraiser Organizations contracted with the law firm of Constantine Canon LLP to prepare a formal response to this proposed de minimis increase. (The NDAA Board of Directors voted to contribute $500 to this effort.) The response (a complete copy of the response is attached) was sent to the agencies on February 5, 2019. It requested (1) "…that a hearing be held to more fully explore these issues prior to the agencies finalizing this rule making proceeding" and (2) the agencies move to not adopt the proposal. Additionally, the Network and the American Society of Appraisers, American Society of Farm Managers Rural Appraisers, American Guild of Appraisers, the National Association of Realtors, Appraisal Institute, MBREA, and America's RICS sent a similar request on December 21, 2018. On February 7, 2019, a response from the agencies was received detailing that "…We do not believe that holding a public hearing would elicit relevant information that could not be conveyed through the comment process described above." Personally, I cannot fathom as to why a public hearing would not be beneficial. Numerous written comments were received and, reportedly, "…We will carefully consider your written comments." The next step is undoubtedly to contact our congressional representatives to express our displeasure with their response. I will keep you posted as to a future "game plan".

• Legislative Update:

Attached is a legislative update provided by Berry Wilfahrt, our legislative lobbyist. It provides a detailed analysis of the four Senate Bills that the ND Appraiser's Board and NDAA were following. Thanks Berry-greatly appreciated!

The only bill in which the NDAA testified was Senate Bill 2259. This bill related primarily to commercial "condemnation" appraisal assignments. If passed, it would have "opened the door" to the use of non-arms-length negotiated settlements in determining "fair market value".  The measure of equitable damages is already addressed in the Century Code. The proposed changes would have created additional confusion but, more importantly, it would have created excessive non-market based awards that, ultimately, the taxpayer would absorb. The NDAA, the only appraisal group to testify at the Senate Finance and Taxation Committee hearing on January 21, 2018, presented a detailed response opposing this bill. The response was presented by Corey Kost. If it were not for the NDAA, the state appraisal profession would have had no voice at this hearing. This is an excellent example as to how the "voice" of the NDAA is working.

Lastly, just a reminder that the 2019 NDAA Annual Meeting/Educational Conference is scheduled for November 21 & 22, 2019, in Fargo. Please place this on your calendar and make every effort to attend.

Respectfully submitted,

Joe Ibach, MAI

2019 NDAA President

Legislative Update for 2019 ND Legislative Session

Comment of 30 State Appraiser Organizations on the proposed Increase to raise the de minimis exemptions for appraisals for federally-rrelated residential transactions from $250 - $400K.

Are ND Appraisers Under Attack? See President Rylander's Letter to the Membership on the Newest Development

See the attached letter from NDAA President Dean Rylander regarding a BRAND NEW proposal by the Federal agencies to reduce the appraisal requirements of ND banks and credit unions.

This action will be one of the ‘hot topics’ discussed at the upcoming NDAA Annual Conference and Education Event in Bismarck on December 6-7, 2018, along with the current status of the appraisal waiver request filed by the ND Governor’s Office.

Will you be there to protect your profession and your own interests?

Early bird pricing ENDS TODAY. To register for the NDAA Conference and Education Event in Bismarck, or to find out more, go to www.ndappraisers.org

NDAA letter.pdf

2018 Annual Meeting and Education Event - Event Calendar

Please join us in Bismarck for the NDAA Third Annual Conference and Education Event: See the attached Event Schedule for details. Register Now!

Event Calendar Dec2018.pdf

NDAA Joins Other ND and SD Appraiser Organizations to Oppose HR 6347 and HR 6348

NDAA President's Letter updating the Membership on the Temporary Waiver Request

Fannie Mae no longer requires the Form 1004C as part of their appraisal reports

Effective immediately, Fannie Mae no longer requires the Market Conditions Addendum (1004MC) form as part of appraisal reports. The Selling Guide has been updated to reflect this change. Appraisers remain responsible for analyzing market conditions and accurately reporting them in the Neighborhood section of Fannie Mae's appraisal forms.

Collateral Underwriter® (CU®) now provides robust market trend information for Fannie Mae and lenders, enabling measurement and management of market risks in a more rigorous way. Removing the 1004MC requirement will make it easier for lenders to originate loans and easier for appraisers to complete assignments by simplifying the appraisal and appraisal review processes.

Please note that this is a change to Fannie Mae's requirements; other investors may still require submission of Form 1004MC. For details see Selling Guide Announcement SEL-2018-06.  

 https://www.fanniemae.com/content/news/carlos-perez-announcement-2018-06-updates-080718.pdf

Visit our website - https://www.fanniemae.com/singlefamily/index- for more appraiser news and resources.