RAC president Jonathan Miller spoke with RAC member Thomas E. Allen, SCRP from Oklahoma this morning (who is also first vice president and a former president of RAC). Tom mentioned that he attended the The Appraisal Foundation Advisory Council (TAFAC) meetings last Thursday/Friday in Washington DC and was elected to represent TAFAC on The Appraisal Foundation Board of Trustees next year.
Tom recalled that:
without RAC, this would never have happened. RAC has presented so many opportunities for me.
Congratulations to Tom for this achievement and for his leadership in RAC and the appraisal profession!
The Appraisal Foundation Advisory Council (TAFAC) is composed of 60 non-profit organizations and government agencies. TAFAC member organizations represent various professions and occupations with an interest in valuation including appraisers, home builders, real estate brokers, financial institution regulators, federal land acquisition agencies, the secondary mortgage market and the private mortgage insurance industry.
A recent article in the Wall Street Journal “Dodgy Home Appraisals Make a Comeback” expressed concern over a growing occurrence of appraisals with inflated values.
Digital Risk found that some appraised values were off the mark based on discrepancies that appeared unintentional, though, “at other times, the appraiser’s selection of [comparable properties]…is very hard to justify,” said Thomas Showalter, chief analytics officer at Digital Risk.
Falling mortgage volume is bringing out some of the bad practices that dominated the prior housing boom and makes the need for qualified and experienced appraisers essential – something that an organization like RAC is built with.
One of our members with extensive appraisal experience was able to thwart the pressure because he understood the local market, something not emphasized by lenders today as in year’s past.
Tom Allen, who says he has been an appraiser for 44 years, recalled appraising a house in April for about $450,000 for a loan application with J.P. Morgan Chase & Co. About a week later, Mr. Allen, 68 years old, says he received a request from the appraisal-management company to use two different properties as comparables that had recently sold for around $525,000 and $540,000. Mr. Allen says he refused because the homes were larger, in a more expensive neighborhood and built about 10 years after the property in question.
On September 5, 2014, Relocation Appraisers & Consultants, Inc. (RAC) became the newest member of The Appraisal Foundation Advisory Council (TAFAC). RAC member, Thomas E. Allen, CRP, recently attended the TAFAC’s general membership meeting in Washington, D.C.
TAFAC is composed of 58 non-profit organizations and government agencies, which represent appraisers, users of appraisal services and government agencies. TAFAC serves to involve the public in the appraisal standards and appraiser qualifications development process.
Member organizations of TAFAC represent various professions and occupations. TAFAC currently includes organizations representing appraisers, home builders, real estate brokers, financial institution regulators, federal land acquisition agencies, the secondary mortgage market and the private mortgage insurance industry.
TAFAC makes recommendations to the Appraisal Standards Board (ASB), Appraiser Qualifications Board (AQB) and Board of Trustees (BOT) on major issues pending before the Boards. In addition, recommendations are also made regarding agenda of projects, the selection of task forces, amendments to the Uniform Standards of Professional Appraisal Practice (USPAP), Statements or Advisory Opinions under development by the ASB and revisions to the AQB Appraiser Qualification Criteria and Interpretations/Clarifications.
RAC is very excited about being a member of TAFAC and this opportunity to serve the appraisal industry.