Issue 1

Opening Remarks

First, I would like to thank you for subscribing to our newsletter. We hope that you will find our updates helpful in staying on top of the changing appraisal industry.

Since the soft-launch of FHA Appraisers.com, I have had the privilege of connecting with hundreds of appraisers around the country. Several themes have emerged from these conversations; Appraisers are concerned about their futures and the future of the appraisal profession. Additionally, while business is slow, many take time to analyze emerging trends and how it effects the way they will continue to do business. Appraisers who have been in the profession for many years know how difficult it is to project future events. Notwithstanding this fact, some things do seem clear.

-Once the dust settles, appraisals for mortgage purposes will slowly begin to increase from the extremely low levels of this past year.

-The level of appraisal business through the FHA will continue to increase substantially. Please read on to learn more about what you should be doing to prepare for these changes.

Important Changes in FHA Requirements

A HUD official whom we interviewed (Eric Davidson) confirmed that Section 202E of the National Housing Act, which took effect in July, requires the use of certified appraisers for ALL FHA appraisals. As the agency involved in implementing this new law, they will be making a decision within the next several months as to the date this change will take effect. Mr. Davidson also reported that designations from appraisal organizations will not likely be allowed as a substitute for certified status. Since the review period will be completed near the end of this calendar year, it would not be a surprise to see the requirement take effect on January 1, 2009. For many appraisers, this means you will have a number of courses to complete in a very short time frame. Contact any of the national appraiser organizations that offer classes (e.g. the Appraisal Institute, McKissock) or whatever local schools are within your area. If they do not have any classes scheduled in the immediate future, ask them if they might move up their schedule considering the anticipated demand due to this regulatory change.

Update on Regulatory Changes

Where do things stand with the HVCC (Home Valuation Code of Conduct)? While it has been only a week since the news about FNMA and Freddie Mac, some industry analysts are reporting that:

-The HVCC may survive, but in a different form

-So many issues and problems need to be addressed that supersede the HVCC in perceived importance, making its implementation likely to be substantially delayed, with many analysts predicting major revisions. The most important thing for an appraiser to do right now is to stay on top of these changes. To better follow new developments, try subscribing to some of the industry print and online publications, such as Appraisal Buzz, Working R.E., and The Appraisal Institute On-Line Newsletter. There are also a number of online forums, such as the Buzz Forum, and the Appraisal Institute Forum, where many appraisers contribute their well researched thoughts on a daily basis, and you can too.

Closing Remarks

Twenty years ago when I completed my first appraisal, I couldn't believe I got paid to do this! I loved the business, and still do. However, years of lender pressure, deadlines, and stupid addenda requests tend to wear an appraiser out. Don't forget to take time out and get away from the business for a bit. Clear your mind and come back fresh. Don't ever stop learning or planning for the future. Keeping in mind all of the technological advances of the past two decades, make sure you don't fall to the back of the pack. Always be considering ways to expand your private practice, and areas of expertise, because an appraiser with a diversified business will be best prepared to weather any climate.

Regards,

Bill Collins

bill@fhaappraisers.com

www.fhaappraisers.com

(877) 4FHA-VALU