Real Estate Central

NAIFA supports efforts but believes significant changes are necessary

CHICAGO, May 15 /PRNewswire/ — The National Association of Independent
Fee Appraisers (NAIFA) has announced its position regarding the agreement
reached between the New York State Attorney General’s Office and the Office
of Federal Housing Enterprise Oversight (OFHEO), and Fannie Mae and Freddie
Mac.

The position is announced in an open letter posted on
http://www.naifa.com by Michael T. Orman, IFAS, National President, NAIFA,
and Ann L. Susko, Government Affairs Liaison, NAIFA.

“NAIFA applauds the attempt to secure appraiser independence in the
real estate financing process in the proposed agreement,” says Michael T.
Orman, IFAS, National President, NAIFA. “But despite its laudable intent,
we find that the current structure of the agreement may lead to
unanticipated and potentially damaging results for borrowers, the public,
real property appraisers, and users of real property appraisals.”

“While we support the efforts of the broader appraisal community to
address the shortcomings of the agreement,” Orman continues, “we believe
the agreement is attempting to solve a problem for which a solution already
exits. Should the agreement move forward, however, NAIFA, along with many
other related appraisal and financial organizations, believe significant
changes to the agreement as written are necessary.”

One of those solutions includes banking regulations set forth by the
Federal Financial Institutions Examination Council (FFIEC) and its member
regulatory agencies, the Office of Comptroller of the Currency and the
Office of Thrift Supervision. “Regrettably, these regulations are not
flowing through the proper channels, to the end user and the loan
originators, nor have the users been trained to implement the regulations,”
states Orman.

The letter also outlines proposed changes to the agreement involving
the Home Valuation Code of Conduct (HVCC). “The HVCC reflects a strong
attempt to support the independence of appraisers who are to provide an
unbiased, supportable valuation of real property,” adds Orman. “However,
some parts of the HVCC appear to neuter the intent of Title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).”

NAIFA also takes issue with additional aspects of the agreement,
including the proposed Independent Valuation Protection Institute (IVPI)
and the agreement’s accepted use of Appraisal Management Companies (AMCs).

For NAIFA’s complete position statement, visit http://www.naifa.com.

The National Association of Independent Fee Appraisers is an
association of professional real estate appraisers committed to the support
of its members, for a service of trust and integrity, that benefits the
members, the profession and the general public. Established in 1961, NAIFA
provides appraisal education, an advanced testing and certifying program to
acquire a designation, promotes fellowship among members and
professionalism to the public. To locate a designated appraiser, visit
http://www.naifa.com.



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Source: Real Estate Newswire