President Ibach's Report to the Membership
Tuesday, February 26, 2019
To All NDAA Members:
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.
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".
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.
Joe Ibach, MAI
2019 NDAA President