I recently received a forwarded e-mail from the Virginia Coalition of Appraiser Professionals (VaCap) regarding their organization, and their opposition to the implementation of new appraisal reporting requirements by The Federal National Mortgage Association (FNMA) and The Federal Home Loan Mortgage Corporation ( FHLMC). They were formed out of the need for the appraisers in Virginia to have a voice about their profession.
The letter they sent was addressed to the Office of the Attorney General of the State of Virginia. (See attachment below)
The main concern is that the implementation of the Uniform Appraiser Dataset ( UAD) “reporting format” as required by Fannie Mae and Freddie Mac appear to be in potential conflict with some of the requirements of Uniform Standards of Professional Appraiser Practice (USPAP). All registered, licensed or certified appraisers in Florida are required by F.S. 475.628 to comply with the USPAP.
The effective date for the implementation of UAD is still September 1, for purposes of complying with the requirements of FNMA and FHLMC, only the requirements for FHA purposes was recently changed to January 1, 2012.
Now is the time for you to join the Florida Association of Real Estate Appraisers (FAREA) WWW.FAREA.ORG We represent the profession in the State of Florida. You have to get organized and have a say in how the state of Florida implements these new reporting requirements. We urge you to oppose the implementation of UAD until the Florida Real Estate Appraiser Board and you, the regulated appraiser, have a had a chance to review it in relation to compliance with Florida Statutes.
Please join now and make a difference in your profession. It is time for the Florida real estate appraiser to have a say in the future of your profession.

Sincerly,
Chris Moran
Executive Director
Florida Association of Real Estate Appraisers.
1311 N Paul Russell Road B203
Tallahassee, Florida 32301
www.farea.org
moran@farea.org
850-510-5334

Letter to Attorney General from Virginia Coalition of Appraiser Professionals

On July 21, 2010 President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Act requires State regulatory agencies to regulate Appraisal Management Companies (AMC). Florida’s regulatory program for AMCs was created in 2010 when House Bill 303 was signed into law. It became Chapter 2010-84 and amends Section 475, Part II, Florida Statutes..
What is an appraisal management company (AMC)?

“Appraisal management company” means a person who performs appraisal management services.

“Appraisal management services” means the coordination or management of appraisal services for compensation by:

1. Employing, contracting with, or otherwise retaining one or more appraisers to perform appraisal services for a client; or

2. Acting as a broker or intermediary between a client and one or more appraisers to facilitate the client’s employing, contracting with, or otherwise retaining the appraisers.
Who will be required to register as an AMC?

475.6235 Registration of appraisal management companies required.—

(1)A person may not engage in appraisal management services for compensation in this state, advertise or represent herself or himself as an appraisal management company, or use the titles “appraisal management company,” “appraiser cooperative,” “appraiser portal,” or “mortgage technology company,” or any abbreviation or words to that effect, unless the person is registered with the department as an appraisal management company under this section. However, an employee of an appraisal management company is not required to obtain a separate registration.

If you are a person who possesses the authority, directly or indirectly, to direct the management or policies of the appraisal management company, whether through ownership, by contract, or otherwise you are considered an authorized representative and must be included in the application process.

MAIL THIS APPLICATION & DUES TO:
FAREA
1311 N. Paul Russell Road, B-203
Tallahassee, FL 32301
FAREA MEMBER APPLICATION
 YES! I want my voice to be heard.
Include me as a charter member of FAREA.

____________________________________________________
NAME
____________________________________________________
LICENSE #
____________________________________________________
BUSINESS / ORGANIZATION
____________________________________________________
ADDRESS
____________________________________________________
CITY ZIP
____________________________________________________
PHONE CELL
____________________________________________________
EMAIL

 Enclosed are my annual dues. $25 per member.

Check payable to: FAREA
FAREA
Florida Association of
Real Estate Appraisers, Inc.
850-421-5700 office
813-200-3578 fax
1311 N Paul Russell Rd B203 • Tallahassee, FL 32301 •
www.farea.org

Chris Moran, CPA.
Executive director
moran@farea.org

Caroline Weiss,
Membership Director
Membership@farea.org

Who Speaks For You?

The Appraisal Institute’s Recommendations
Your National organization, the Appraisal Institute (http://www.appraisalinstitute.org ) has to get a lot of the credit for the passing of legislation regulating AMCs not just in Florida but in the entire country. On their web site they have been promoting the Appraisal Management Company Registration & Regulation Model Act which was updated in October of 2009. It is obvious from a review of the legislation that was passed last year, that numerous states passed bills that contained various parts of the model act. The Appraisal Institute’s model act is very comprehensive and contains explicit language that deals with many of the complaints that the appraisal profession has about some of the AMCs operating in their respective states.

In an overview the proposed model can be broken out into eight basic parts:

• Definitions (defines terms used in the legislation)
• Registration Required (basically defines what an AMC is and requires state registration similar to that of a professional appraiser)
• Exemptions (defines what types of businesses are not AMCs that need to be regulated)
• Owner Requirements (restricts who can have a 10% ownership interest in an AMC)
• Appraiser Fees (a proposal that fees to be paid by AMCs to appraisers must be reasonable and customary for the market, and that there should be separation and full disclosure of fees paid to appraisers as well as fees charged by AMCs)
• Appraiser Independence (reiterates the independence requirements and makes them applicable between AMCs and appraisers)
• Guaranty of Payment (requires AMCs to pay appraisers after the completion of an assignment within 60 days)
• Enforcement (defines what enforcement rights state boards have in enforcing the requirements of AMCs to register)

The State of Things

The Appraiser Institute did a great job with the model language, and numerous bills that passed around the country had sections that were word for word what the Appraisal Institute had recommended. Prior to 2010 six states had already passed legislation regulating appraisal management companies. During the 2010 year, thirteen additional states passed legislation ( including Florida!) and there are currently four more states with pending legislation.

We have reviewed all the bills that are currently in place, as well as the four state proposals. We compared them and noted several common areas in all of them, and we also noted some huge differences in what each state passed. We did see a lot of variance across the states in what constitutes an AMC that is required to be regulated. Exemptions, Owner Requirement, Appraisal Independence, and enforcement sections of bills were similar to what the Appraisal Institute was recommending.

The biggest differences between the states that we noted were in the areas of appraiser fees and guaranty of payment. Many states had specific language on the guaranty of payment, some states required the AMCs to pay appraisers in sixty days, and others had it as low as forty-five days. As far as fees paid to appraisers, there was not much passed related to paying market rates for an appraisal, but there were several states that required full disclosure of fees paid, as well as no restrictions limiting appraisers from disclosing exactly what they were paid.

The Rulings
Of all the states that passed legislation in 2010, Tennessee, Oregon and Connecticut were the ones that had the wording closest to the Appraisal Institutes recommendations, including the following sections:
(a) An appraisal management company shall not prohibit an appraiser
who is part of an appraiser panel from recording the fee that the appraiser was
paid by the appraisal management company for the performance of the appraisal
within the appraisal report that is submitted by the appraiser to the appraisal
management company.

(b) An appraisal management company shall separately state to the
client, the fees paid to an appraiser for appraisal services and the fees charged
by the appraisal management company for services associated with the
management of the appraisal process, including procurement of the appraiser’s services.
Each appraisal management company shall, except in cases of breach of
contract or substandard performance of services, make payment to an appraiser
for the completion of an appraisal or valuation assignment within sixty (60) days
(unless a mutually agreed upon alternate payment schedule exists) from when
the appraiser transmits or otherwise provides the completed appraisal or
valuation study to the appraisal management company or its assignee.
(excerpts from legislation passed in Tennessee during 2010)

FAREA Opinion
For whatever reasons, the group that worked on the Florida legislation never proposed any disclosure of fees charged, or recommended a guaranteed time for a payment of fees. Don’t the appraisers of Florida deserve at least the same kind of consideration that other states passed?

Surely we can do at least as much as Tennessee did. Full disclosure of fees charged by AMCs and the fees actually paid to appraisers, will at least show the inadequacies in the current way AMCs are operating in Florida. All we are asking for is adequate disclosure of what each party is charging and being paid. The people paying the fees have a right to know! Without disclosure it is impossible for the entire real estate industry to understand how much appraisers are being impacted by the influx of AMC’s in Florida. With disclosure comes change!

Rest assured getting additional legislation passed similar to what Tennessee and several other states passed is not going to be an easy task. The players last session seem very pleased that HB 303 passed and Florida does not appear to have any pending legislation regarding regulating appraisal management companies. Now is the time for the real estate appraisers in Florida to step up and have their own voice in the future of the profession. We are asking you to join the Florida Real Estate Appraisers Association, and to join the legislative committee and get involved. We are confident that as a group dedicated to just the appraiser profession, we can accomplish the task at hand.

Our Challenge to You…..Now is the time to step up and join. Let’s be clear, real estate appraisers were the only regulated professionals in Florida that did not have their own association dedicated to just their profession. The only one! Now we are providing that opportunity; however, without your membership change will not come about.

We are proposing that the association establish a legislative affairs committee that will determine specific legislative language we would like to see passed, and then we go about the process of making it happen. With the voice of the entire industry behind us, we can be successful, and we can be successful THIS LEGISLATIVE SESSION. Based on our initial contact with potential members, the vast majority of you said the association is greatly needed. Join now so we can keep our vital mission alive.

Our initial dues for all charter members were $100 annually. We are extending the charter membership rate of $100 through the summer. The $100 covers all administrative costs, the cost of a membership director, as well as the cost of a contract lobbyist. We are basing all costs on a per member basis. In other words, the majority of your money goes directly to promoting your profession and therefore your livelihood.

DON’T DELAY, JOIN TODAY!

Florida Real Estate Appraisers form a collective voice for uniform industry standards, professional services and legislative initiatives…….Be Heard. Join Us.
www.farea.org

ARTICLE I
Section 1: Name and Office
The Corporation shall be “Florida Association of Real Estate Appraisers”. The Corporation may also use the acronym “FAREA” and is referred to herein as FAREA or the Association.

Section 2: Offices and Regions
The principal offices of the corporation are located in Tallahassee, Leon County, Florida. The corporation also may have an office or offices at such other place or places as the Board of Directors may from time to time designate or the business of the corporation may require.
Geographic regions for the purpose of electing Regional Representatives shall be established throughout the state by the Board of Directors. These geographic regions shall be established and may be altered by an affirmative vote of two-thirds (2/3) of the members of the Board of Directors present at a duly called meeting.

ARTICLE II:
Section 1: Annual Meeting
The annual meeting of this corporation shall be held no later than ninety (90) days following the close of the fiscal year on such date and at such place as set by the Executive Committee. Notice of the time and place of the meeting shall be provided in a manner authorized by Florida law and shall be sent at least thirty (30) days before the meeting.

ARTICLE III:
Section 1: Membership
Eligible for General Membership in FAREA are any of the following issued within the state of Florida:
A. Certified General Appraiser
B. Certified Residential Appraiser
C. Licensed Residential Appraiser
D. Registered Trainee Appraiser

Section 2: Sponsor Membership:
Eligible for Sponsor Membership in FAREA is any person, firm, or organization other than a person eligible for membership. Those entities may apply to the Board of Directors for admissions as a sponsor member. The Board shall establish criteria and procedures for admission of sponsor members, and the benefits and privileges of sponsor members. Sponsor members shall not have voting rights on any matters.
Section 3: Discrimination
No individual, organization nor chapter of any organization shall be denied
membership in FAREA on the basis of race, color, sex, age, national or ethnic origin or religion, nor shall any member of the Corporation be discriminated against on any such basis.

ARTICLE IV:
Section 1: Membership Dues
The annual dues for General Members are to be no more than $100 per year.
The membership dues for Sponsorship members are as follows:
A. Bronze Sponsorship…………………………… $1,000, or more
C. Silver Sponsorship…………………………$2,500, or more
D. Gold Sponsorship……………………………$5,000, or more

Annual dues are due by March 15th of each year. The Board of Directors will determine when the dues become past due, delinquent and when membership and voting privileges will be suspended. In the initial year, all dues paid will be considered as voluntary membership.

ARTICLE V:
Section 1. Board of Directors
The Board of Directors shall establish the policies of this
corporation. With the exception of the founding Board of Directors set forth in the Articles of Incorporation, The Board of Directors of this corporation shall consist of its officers, the immediate past president of this corporation, a member-at-large and initially with three (3) regional representatives. The board of directors can increase as the board establishes additional geographic regions within the state.

Section 2. Election of Officers:
Except as otherwise provided for in the Articles of Incorporation and the Bylaws, The election of Officers shall be held at a general meeting of the Membership in November of every year (except for the first year). These Officers will include a President, a Vice-President, a Secretary, a Treasurer, and a Member(s)-At-Large.
Each Officer shall serve a term of one year. After the election of the first Board of Directors, the term of Officers for each subsequent year shall begin with the certification of the election results by the outgoing Board of Directors subsequent to the election, but not longer than 30 days after the election is held. No Officer shall serve more than two consecutive terms in any individual office. The same person may not serve as President and Treasurer simultaneously.
The officers, regional representatives, and members-at-large shall assume their respective offices on the first day of the fiscal year following their election and shall hold office for one year and until the election of their respective successors. Except as otherwise provided for in the Articles of Incorporation and the Bylaws, the Board of Directors shall elect members to fill any vacancy occurring among the officers or on the Board of Directors of this corporation.
Section 3. Regular Meetings:
Regular meetings of the Board of Directors may be called at any
time by the President. The Board of Directors shall meet not less than twice each year.
Section 4. Geographic Regions:
The Board of Directors will establish geographic regions within the state. A Regional Representative shall be chosen by chapters to represent each geographic region established within the state on the Board of Directors. The Regional Representatives shall encourage regional cooperation and coordinate the affairs of the chapters within the region. They shall assist the chapters in attaining their goals and encourage members to become more active in this corporation.
Section 5. Quorum:
For the transaction of any business by the Board of Directors at least fifty percent (50%) of the members of said Board must be present to constitute a quorum.

ARTICLE VI.
Section 1. Eligibility:
A General Member of the Organization is eligible to serve on the Board of Directors if he or she is a member in good standing. Good standing as it pertains to membership in FAREA will be established by the Board of Directors.
Section 2. Removal:
An elected member of the Board or Directors who fails to fulfill the duties of his or her position or who fails to attend three (3) consecutive Board meetings may be removed by a 51% vote of the Board of Directors.
An elected member of the Board of Directors shall be automatically removed if he or she ceases to be a member of the Organization in good standing.
Section 3. Vacancies:
If a vacancy occurs among the elected members of the Board of Directors, the Board, by a majority vote, shall fill the vacancy. The member elected in this manner shall serve until the remainder of the unexpired term is filled by election.
Section 4. Action without a Meeting:
Any action required or permitted to be taken by the Board of Directors may be taken without a meeting if all members of the Board of Directors consent in writing to that action. A member of the Board may provide such written consent in electronic form. An action by written consent shall have the same force and effect as any other validly approved action of the Board of Directors. The written consent(s) shall be filed with the minutes of the meetings of the Board of Directors.
Section 5. Resignations:
Resignations of any Board members shall be made in writing to the President.

ARTICLE VII.
Section 1. Compensation of Officers, Members, Contractors and Executive Director:
The Officers and Members shall not receive any salary or other compensation for their service as Officers or Members. However, the Board of Directors may determine to reimburse the Officers or Members for out-of-pocket expenses, travel expenses, meals and lodging incurred in the performance of their duties on behalf of the Organization. The Board of Directors shall have the right to set compensation for all contractors, or an Executive Director as an annual budgetary item.

ARTICLE VIII.
Section 1. Duties of Officers
The Board of Directors shall, without prejudice to general powers established by law, have the following power:
1. To make and change regulations not inconsistent with these Bylaws for
the management of the Organization’s business and affairs.
2. To remove any member of the Board of Directors (Officers) for cause.
Cause is hereby defined to include acts of dishonesty, knowing
violations of the corporation policy, and violation of applicable laws,
rules and/or regulations regarding professional demeanor or ethics.
3. To establish policies and procedures or the Corporation.
The duties of the Officers of the Organization shall be as follows:
Section 2. President:
The President shall be the Chief Officer of the Organization.
When present, he/she shall preside at all meetings of the Board of
Directors and shall as act as Chairman of those meetings. The President
shall have the power to call regular or special meetings of the Board of
Directors. The President, with the approval of the Board, shall have the
power to make and sign contracts and agreements in the name of and
behalf of the Corporation and shall have the general control and
management of the business and affairs of the Corporation which
includes establishing an Advisory Sub-Committee to assist the President.
The President shall see that the books, records, statements, reports and
certificates required by the statute under which the Corporation is
organized, or any other laws applicable hereto, are property kept, made
and filed accordingly to law, and shall generally do and perform all acts
incident to the office of President, which are authorized or required by
law.
Section 3. Vice President:
The Vice President shall be vested with all of the powers and shall perform all of the duties of the President in the absence or disability of the latter, unless and until the Board of Directors of the
Corporation shall determine otherwise. The Vice President shall have such
other powers and perform such other duties as may be prescribed by the
Board of Directors of the Corporation.
Section 4. Secretary:
The Secretary shall, at the direction of the President, give or
cause to be given notice of all meetings of members of the Organization,
and all such other notices required by law or by these Bylaws. The
Secretary shall record all of the proceedings of the meetings or the Board
of Directors and General Members and shall perform such other duties as
may be assigned to the Secretary by the Board.
Section 5. Treasurer:
The Treasurer shall have the custody of all funds, securities,
evidences of indebtedness and other valuable documents of the
Organization. The Treasurer shall receive and give or cause to be given
receipts and documentation for money in accounts of the Organization
and shall enter full and accurate accounts of all monies received by or
paid out on behalf of the Organization, or when required or requested by
the President or the Board of Directors, shall render a statement of cash
accounts, and shall keep or cause to be kept such other books as will
show a true record of the expenses, losses, gains, assets, and liabilities of
the Organization. The Treasurer shall serve as the Chair of the Finance
Committee.
Section 6. Member(s)-At-Large:
The Member(s)-At-Large shall have the responsibility of attending Board of Directors’ meetings and representing the general members.

ARTICLE IX.
Section 1. Standing Committees
The Organization shall have four standing committees. These shall be the Membership Committee, the Finance Committee, the Government Relations Committee, and Bylaws
Section 2. Eligibility:
Any General Member is good standing may serve on any of the
standing committees.
Section 3. Removal:
A general member who fails to fulfill their duties on a Committee
may be removed by a 51% vote of the Board of Directors. Board members
automatically will be removed if they cease to be a General Member of the
Organization in good standing.
Section 4. Vacancy:
In the event that a vacancy occurs on a Standing Committee, the
President shall appoint a replacement who shall serve the remainder of the
term, subject to approval by the Board of Directors.

Section 5. Membership Committee:
The Membership Committee shall consist of a Chair and a minimum of one
(1) other member who shall be appointed by the President with the approval
of the Board of Directors. The Chair shall be appointed to serve a one-year
term and can serve no more than two consecutive terms as Chair. The other
members shall be appointed to serve two-year terms.
The Membership Committee shall develop, implement, and oversee the
Organization’s recruitment, development and retention program.
Section 6. Finance Committee:
The Finance Committee shall consist of the Treasurer of the Organization and at least two (2) other members. The Treasurer shall be the Chair of the
Finance Committee. The other members shall be appointed by the President with the approval of the Board of Directors and shall not be eligible to serve more than two consecutive terms.
The Finance Committee shall prepare a proposed budget for the
succeeding operating year and shall deliver in writing its recommendations
concerning proposed changes in the Organization’s budget for the current
year to the Board of Directors for approval.
The Finance Committee must periodically review the general financial
condition of the Organization and submit reports concerning such condition
to the Board of Directors.
Section 7. Government Relations Committee:
The Government Relations Committee shall consist of a Chair and a minimum of one (1) other member who shall be appointed by the President with the approval of the Board of Directors.
The Chair shall be appointed to a one year term. The other members shall be appointed to serve two-year terms.
The Chair and other members shall be eligible to serve consecutive terms.
The duties of the Government Relations Committee shall be to promote the
Organization’s purpose regarding legislation and regulations, which are of
interest and importance to appraisers.
Section 8. Bylaws Committee:
The Bylaws Committee shall consist of a Chair and a minimum of one (1)
other member who shall be appointed by the President with the approval of
the Board of Directors. The Chair shall be appointed to a one-year term. The other members shall be appointed to serve two-year terms. The Chair and other members shall be eligible to serve consecutive terms.
The duties of the Bylaws Committee shall originally be the creation of the
Bylaws for the Organization. Subsequently, the duty shall be the update of
the Bylaws as deemed necessary by the Board of Directors.

Section 9. Amendment of Bylaws:
The powers to alter, amend, or repeal the Bylaws or adopt new Bylaws is vested in the Board of Directors after review and
approval by the voting membership of the Organization. The voting
membership of the Organization shall be the General Members, each of
which shall have one vote. Such vote to amend the Bylaws shall require a
simple majority of at least 51% of the members present at that meeting.

The founding members of the association have committed to making this a professional association that is here to make a difference and to help all Florida appraisers improve and preserve the profession.

We are here to fill a gap that existed in Florida; we only represent registered trainee real estate appraisers, licensed real estate appraisers, or a certified real estate appraisers. We recognize the need  to unite and support the members of the appraisal community and have built the foundation of a professional organization that can move forward and flourish.

The current officers for our association consist of Doug Treadway, Chris Moran, Robert A. Weiss, and Ann Mitchel. Doug is a licensed insurance agent, who has worked in the membership services department of a trade association, and the husband of a certified real estate appraiser; Chris Moran is a CPA with over 20 years experience auditing and providing consulting services to dozens of trade associations in Florida; Robert Weiss is a state licensed attorney who has extensive experience in regulatory law, as well as with trade associations; and Ann Mitchel is a certified residential real estate appraiser.
We have adopted the following as our initial mission statement:

Florida Association of Real Estate Appraisers Mission
The Florida Association of Real Estate Appraisers is the state of Florida’s, professional organization for all Certified or Licensed Real Estate Appraisers. Its mission is to provide members with the resources, information, and leadership that enable them to provide valuable services in the highest professional manner to benefit the public as well as employers and clients.

FAREA OBJECTIVES
To achieve its mission, the Association:
A. Advocacy
Serves as the state representative of real estate appraisers before governments, regulatory bodies and other organizations in protecting and promoting members’ interests.
B. Certification and Licensing
Seeks the highest possible level of uniform certification and licensing standards and promotes and protects the certified or license real estate appraiser’s designation.
C. Communications
Promotes public awareness and confidence in the integrity, objectivity, competence and professionalism of real estate appraisers and monitors the needs and views of real estate appraisers.
D. Recruiting and Education
Encourages highly qualified individuals to become real estate appraisers and supports the development of outstanding academic programs.
E. Standards and Performance
Assist members in continually improving their professional conduct, performance and expertise; and monitors such performance to enforce current standards and requirements.