Opening Remarks, Breaking News
Yesterday, Judge Ricardo M. Urbina, presiding in the matter between the National Association of Mortgage Brokers (NAMB) and James B. Lockhart, Director of the Federal Housing Finance Agency (FHFA), denied the motion for a temporary restraining order regarding the implementation of the Valuation Rule in the Home Valuation Code of Conduct (HVCC). The ruling is as follows:
Full Docket Text:
MINUTE ORDER denying [3] the plaintiff's motion for a temporary restraining order ("TRO"). The plaintiff claims that "[i]mplementation of the Valuation Rule will cause immediate and irreparable competetive and economic harm to NAMB and its members." P1.'s Mot. for Prelim. Inj. at 39. It is well-settled that economic loss alone will rarely constitute irreparable harm. Wis. Gas Co. v. Fed. Energy Regulatory Comm'n, 758 F.2d 669,674 (D.C. Cir. 1985); Barton v. District of Columbia, 131 F. Supp. 2d 236,247 (D.D.C. 2001) (Urbina, J.). If, however, the potential harm could threaten the very existence of the business, a court may deem such harm irreparable. E.g., Wis. Gas Co., 758 F.2d at 674. Alleging only that the "Valuation Rule" will put mortgage brokers at a severe competetive disadvantage, P1.'s Mot. for Prelim. Inj. at 39-42 (citing Exs. A, C, D, N), the plaintiff has failed to establish a likelihood that its existence and that of its constituent members will be threatened within the next ten days, the maximum time that the TRO could remain in effect, Fed. R. Civ. P. 65(b)(2). Because the plaintiff fails to show irreparable injury, the court need not consider the remaining factors for issuance of injunctive relief. CityFed Fin. Corp. v. Office of Thrift Supervision, 58 F.3d 738, 747 (D.C. Cir. 1995) (stating that because the movant "has made no showing of irreparable injury here, that alone is sufficient for us to conclude that the district court did not abuse its discretion by rejecting [the movant's] request. We thus need not reach...consideration of the remaining factors relevant to the issuance of a preliminary injunction").
Accordingly, the plaintiff's motion for a TRO is hereby DENIED. SO ORDERED.
Signed by Judge Ricardo M. Urbina on 03/19/2009. (1crmu1)
1:09-cv-00356-RMU NATIONAL ASSOCIATION OF MORTGAGE BROKERS, INC. v. LOCKHART
Ricardo M. Urbina, presiding
Date filed: 02/23/2009
Date of last filing: 03/19/2009
The HVCC relates to the FHFA, as conservator for Fannie Mae and Freddie Mac, and has not been adopted by the FHA. It appears as though the FHA is not close to implementation of a set of regulations similar to the HVCC as the change of administration in Washington has resulted in a review of overall operations which is likely to take a prolonged period of time.
While the HVCC has not been adopted by the FHA and does not have a direct impact on FHA Appraisers, it is clear that the overall trend towards a greater reliance on appraisal management companies (AMC's) is leading to an increased flow of FHA appraisal orders through these third parties. FHA appraisers concerned about maintaining or increasing their lender appraisal business need to consider marketing their services to these entities with a careful business plan involving evaluating AMC's carefully as to how "appraiser firendly" they are and what percentage of their overall business they foresee AMC's being.
Appraisers interested in understanding more about the impact of the HVCC on their mortgage appraisal business can also check out an upcoming webinar hosted by Appraisal Buzz. Information can be found at: www.appraisalbuzz.com/webinar/webinar.shtml
Fannie Mae Form 1004MC ("Market Conditions Addendum to the Appraisal Report") How Does This Effect FHA Appraisers?
At this point, this form is not required by the FHA and it does not appear as though it will be required in the near future. The new form will be required by Fannie Mae beginning on April 1, 2009 and you can view it at: www.efanniemae.com/sf/formsdocs/forms/pdf/sellingtrans/1004mc.pdf
Many respected appraisal organizations, schools and private firms are offering information, online classes, local classes and webinars to assist appraisers in understanding this form. Here are some links to several of their sites:
Appraisal Institute: www.appraisalinstitute.org
McKissock: www.McKissock.com
Ann O'Rourke's Appraisal Today: www.appraisaltoday.com
Working RE: www.workingre.com
Appraisers Reporting Increasing Volume in FHA Business Involving 2055 Exterior Drive-by Appraisals
FHA Appraisers from around the country have been reporting to us that they are seeing an increase in FHA appraisal business related to "Second opinion" 2055 drive-by appraisals. The FHA appears to be utilizing these appraisals when a number of conditions exist.
An appraiser performing these appraisals is wise to consider carefully any information provided by a lender or management company from the first appraisal on the property. While it appears appropriate to utilize property descriptions, photographs, sketches, etc. to assist in understanding non-visible portions of the subject property in these exterior-only appraisals, it is not appropriate for the appraiser to receive those portions of the appraisal that indicate or suggest the valuation conclusions made by the first appraiser.
Licensed Appraisers on the FHA Roster: Don't Forget to Take the Classes Necessary to Become Certified and Remain on the FHA Roster
Next fall will arrive before you know it, and short of appealing to your Congressman, your options may be exhausted. Don't count on another extension, although that remains a possibility (although unlikely.)
If you are finding these classes, or having difficulty doing so, please let us know. Appraisers from many parts of the country are reporting problems finding these course offerings and we would appreciate information as to schools offering these classes in the near future.
Don't Forget to Continue Building your Private Non-Lender Appraisal Business
You may be getting busy again with mortgage appraisal business as rates go below 5% and various programs begin to kick-in, but here it is, our constant reminder not to neglect your private, non-lender appraisal business.
Whether or not you are currently satisfied with your level of appraisal business, the events of the past year should serve as a warning to all appraisers to always be planning ahead and take nothing for granted.
Diversifying one's practice into non-lender appraisal business is important in keeping a steady flow of appraisal business year round.
Divorce and estate appraisals have no off seasons or down years and other areas promise to increase substantially.
Changes in bankruptcy laws, while currently stalled in Congress with passage not likely until the next work period at the earliest, would lead to a significant increase in bankruptcy appraisals. In our last newsletter we noted a report in Newsday which stated that the National Bankruptcy Research Center in Burlingame, California reported a 33% increase in personal bankruptcy filings nationally in 2008. If legislation passes giving bankruptcy courts the power to modify mortgages, the number of bankruptcies will increase tremendously.
Demand for tax grievance appraisals is also growing substantially and appraisers would be wise to research the requirements for such appraisals within the jurisdictions in their market area as local laws pertaining to such appraisals vary widely. The declining values nationwide along with the attention placed on over-assessed property in many areas makes this a potentially huge revenue source for many appraisers. These "pay at the door" customers can help out substantially with cash flow.
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 www.fhaappraisernewsletter.com
Regards,
Bill Collins
www.TaxGrievanceAppraisers.com
(877) 4FHA-VALU
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