I can't recall a period where appraisers faced such uncertainty. With the domestic and worldwide economies in turmoil, our own industry awaits news on whether the old model is gone forever, and if so, what will the new model look like. Reasonable projections made by respected appraisal industry analysts are now relegated to the trash each week as they are superseded by changing events. As I write this Monday, U.S. financial markets are rebounding strongly from the worst week ever for domestic equity markets, as are worldwide markets. The U.K. government is taking control of two large banks with indications that U.S. policymakers may be changing some of their focus from acquisition of troubled assets to direct investment in U.S. banks. Announcements are anticipated this week from the Treasury Department as to the terms under which banks could qualify for capital infusions.
Ongoing Change in the Appraisal Industry
Many appraisers are excited about their own business prospects with all of the bailout talk, hoping for it to be a second coming of the Resolution Trust Corporation, sometimes referred to as "The Appraiser's Full Employment Bill." TARP (the Troubled Asset Relief Program), EESA (the Emergency Economic Stabilization Act), and H4H or HOPE (the Hope for Homeowners Program) have led to H4A (Hope for Appraisers). The Appraisal Institute Newsletter on October 8th, amongst many excellent descriptions of the impact of these bills, stated that "Participants in the new HOPE for Homeowners Program...will be required to obtain a new FHA appraisal on their property." The HOPE for Homeowners Program began quietly on October 1st and is scheduled to run until September 30th, 2011, with most analysts figuring that it will be several months before it is fully operational. So, FHA Appraisers do have some reason for excitement as we head towards the end of the year
Update on New FHA Certification Requirements
As of October 1st, the FHA stopped accepting applications from licensed appraisers for placement on the FHA roster. Licensed appraisers who were on the FHA roster prior to that date may continue performing FHA appraisals until further notice. While FHA officials indicate that such notice might come for many by November 1st, this date is very likely to be moved up as they attempt to implement this congressionally mandated action fairly, without ending up with a shortage of appraisers in some states. It appears likely that approximately 1/2 of the 50 states will be given an additional six months to a year to make this change. These are likely to be the states with the lowest percentage of certified appraisers relative to licensed, although other factors (such as anticipated loan volume, or concentration of certified appraisers within one part of the state) may come into play. When the change occurs in your state, licensed appraisers will be purged from the FHA roster with reinstatement to (supposedly) occur immediately upon achieving certification status.
Update on Other Regulatory Changes
Nothing substantive has come to pass regarding the HVCC since our last newsletter, but it is known that implementation will not take place before February or March of 2009. It also appears that it may be substantially revised from what was previously rumored.
Appraiser "To Do" List
-If you are not certified, Why are you reading this and not in class?? Many appraisal education schools are offering expanded class selections. As always, contact the Appraisal Institute or McKissock to see their classes in your area.
-When business is slow, work on improving your marketing, including analyzing ways to improve your exposure and gather more of the upcoming FHA appraisal work.
-Work on expanding your private practice (tax grievances, bankruptcy appraisals, estate work, matrimonial appraisals)
Closing Remarks
We really hope you find our newsletter to be informative! If you have any input on future topics for discussion, please email me your questions and I will do my best to address them in the next issue. If you want to look back at past issues you can see our archive at http://community.icontact.com/p/fhaappraisers
Appraiser News, a free service provided by Appraiser Help, makers of real estate appraiser directories, contains helpful information and news updates relating to the Appraisal field. If you are an Appraiser you should find some interesting information here.
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