Appraisal Scoop

New Instructor-Led Appraisal Online Class - Statistics, Modeling and Finance

New Instructor-Led Online Classes Promote a Traditional Classroom Experience Through the Convenience of a Personal Computer

STAMFORD, Conn., Jan. 26, 2011 /PRNewswire/ -- CompuTaught, part of Cengage Learning and a leading developer of computer-based real estate education, today unveiled a new series of live, instructor-led, advanced appraisal courses that will be offered online via WebEx.

The new online courses feature CompuTaught's standard online registration, administration and learning management support systems while combining real-time instruction with WebEx's synchronous, interactive delivery, bringing a live classroom experience to the student's personal computer. These live, online appraisal courses have gained both International Distance Education Certification Center (IDECC) and Appraiser Qualification Board (AQB) approval and will be delivered in accordance with individual state regulations.

 

With all of the features of an onsite classroom and more, the courses feature a virtual classroom environment with audio, video, screen and document sharing, chat and other interactive elements, with instant access to required course materials. To aid with testing and engagement, the classes also include incremental assessment exams which are reviewed live by the instructors to ensure understanding. Courses include random individual student inquiries throughout the duration to verify student identity and engagement. In addition, students receive information on scheduling the proctored final exam for the course (if required).

"Moving through this digital age, the traditional classroom is shifting and a recent growth in online education is giving us the opportunity to transform the way we teach and deliver content," said Dave Shaut, vice president, CompuTaught. "These new live courses combine the trusted reliability of our computer-based real estate and appraisal education with the convenience of live instruction. We strive to continually evolve with our ever-changing customers and provide them with the most convenient and cost effective ways to work toward their real estate and appraisal education goals."

The NEXT course to be introduced, Statistics, Modeling and Finance, will be offered on Feb. 22 and Feb. 23, 2011.  The course will be led by Certified General Real Estate Appraisers and award-winning instructors Mark A. Munizzo and Lisa Virruso Musial.  This course comes at an important time for the industry, as Bradford Technologies' Appraisal Industry Predictions for 2011 indicate that certified residential appraisers and other real estate professionals are searching for courses on statistics, applied regression and advanced valuation skills to stay current or advance their career. 

Courses are IDECC, AQB and State approved and delivered online via WebEx.   For state specific information, click here http://www.careerwebschool.com/ , THEN click on Appraisal / Continuing Education on the right, THEN select your state.  On the next screen, click on the red "View Online Instructor-Led Courses" button. 

Main Features:

• 50 minute sessions w/breaks, 1hr for lunch
• WebEX with audio, video, and chat
• Textbook: eBook (PDF) and hard copy
• Quizzes reviewed live by the instructors
• Random individual student inquires throughout the course to verify student identity and engagement
• Information on scheduling the proctored final exam for the course, if required
• System Requirements: Broadband to Internet, speakers or headphones

"Many students operate under the false impression that online learning is inferior to a traditional classroom," said Sam Martin, educator, certified appraiser and creator of samthetutor.com. "In fact, according to a recent white paper from the U.S. Department of Education, online courses are just as effective as conventional classroom instruction, proving these new courses from CompuTaught as a convenient and interactive alternative for students who are seeking state approved education."

For more information on the new courses, CompuTaught's Educational Referral Network program or other online or computer-based courses offered, please visit www.computaught.com or www.cengage.com.

About CompuTaught

CompuTaught, part of Cengage Learning, is a market leader in the computer-based real estate learning market. In 1989, CompuTaught was the first in the country to offer state-approved real estate licensing courses on computer and continues to be the leading developer of computer-based education for the real estate and appraisal professions. It currently distributes its courses through more than 300 independent schools, with about 50,000 enrollments annually. For more information on CompuTaught, please visit www.computaught.com.

About Cengage Learning

Cengage Learning is a leading provider of innovative teaching, learning and research solutions for the academic, professional and library markets worldwide. The company's products and services are designed to foster academic excellence and professional development, increase student engagement and improve learning outcomes. Cengage Learning's brands include Heinle, Gale, Wadsworth, Delmar, Brooks/Cole and South-Western, among others. For more information on Cengage Learning please visit www.cengage.com

SOURCE Cengage Learning http://www.cengage.com

Geek's Corner - Hand-e-holderTM Products launches new iPadTM/tablet holding device

Looking for a way to take your "handheld" mobile device into the field? Look no further!

An ergonomic holding solution was launched with the debut of Hand-e-holderTM, the innovative product of Hand-e-holder Products, Inc. (HPI)

The Hand-e-holder’s design gives users the natural relaxed feel of an Apple® iPadTM /tablet resting ergonomically in the palm of their hand. This provides a secure hold that lets users carry the iPad /tablet with confidence.

When viewing the iPad /tablet, Hand-e-holder’s 360-degree rotation lets users determine the most comfortable position unique to them. The adjustable strap fits all hand sizes, small to large. Depending on the environment, the Hand-e-holder may be used with an antibacterial strap that can be substituted for the standard strap.

When not holding the iPad /tablet with the Hand-e-holder, the patented hand plate allows the iPad /tablet to be used with a variety of accessories while still maintaining the 360-degree rotation capability.

The Hand-e-holderTM slides into the patented Adaptor Plate. This is the key component between the Hand-e-holder and any of its accessories. The Adaptor Plate comes with two pre-drilled holes to allow mounting to Hand-e-holder accessories or other OEM solutions. The Adaptor Plate comes in a clear acrylic or a black ABS matte finish. All accessories using the Adaptor Plate come with a retention pin. The pin slides through the top of the Adaptor Plate to retain the Hand-e-holder and attached iPad/tablet device in the event the Adaptor Plate is rotated beyond 90 degrees.

Accessories also include display stands. Stands vary from a clear stand with a black polished teardrop-shaped base, to a rectangular base either in a polished black or clear acrylic with a wireless keyboard grove for resting a keyboard. A mini tri-pod, that is collapsible, portable and has non-skid footings, can be used on a multitude of surfaces. C-clamps, in 1.5 and 2.5 inch models, can be used to attach a tablet to the edge of a counter, under the kitchen cabinets, or to trade show and store displays. The C-clamp has a curved channel allowing for it to be attached to irregular shaped objects, for instance pipes. Heavy duty spring clamp accessories also allow attachment to work environments where there are no horizontal surfaces; such as engine compartments or workshops.

To learn more about the Hand-e-holder, visit http://www.handeholder.com  or call (734) 665-7052.

Fauxclosure Trends

According to the Hanley Wood Market Intelligence blog and newsletter written by Jonathan Dienhart and Ken Lee :

The most acute challenges facing the housing market as it struggles to stabilize in 2011 are an expected flood in foreclosures and weak employment growth.  Despite reaching a record-high level of activity in 2010, consensus estimates call for foreclosures to rise to new all-time highs again this year.  This is in part because a number of the largest banks suspended foreclosure proceedings in October, causing a backlog in activity.  

According to comprehensive transactional information available in Housing IntelligencePro , total foreclosures (non-seasonally adjusted) in the U.S. fell almost 29% from September to October.  Compared to the same period last year, foreclosures were off 21%.  Just before foreclosures were halted by the banks in October, the number of foreclosures in September hit an all-time high for any month since the beginning of our data series in 2005.  This suggests that foreclosures would likely have remained on the rise if the freeze not taken place. 

On an index scale with October of 2005 being equal to 100, that would put September 2010 foreclosure activity at a rating of 451 (or in other words, 451% of the number of foreclosures seen 5 years ago) and with October 2010 falling all the way back down to 323, the lowest level since April 2009.  Expect to see this recent trend turn again around in the coming months. more...

More AMCs will seek to enforce appraisers’ contractual agreements to indemnify the AMCs for

According to Peter Christensen's predictions - "More AMCs will seek to enforce appraisers’ contractual agreements to indemnify the AMCs for claims by borrowers and lenders pursuant to the indemnification clauses in contractor agreements."

"It’s been rare in the recent past that AMCs have actually sought to compel appraisers to indemnify them for appraisal-related claims under the terms of the indemnity provisions found in many AMC-appraiser contractor agreements. We will likely see more attempts to transfer AMC liability in the coming year because more AMCs now have the provisions, more claims will be made against AMCs, and AMCs have agreed in their own contracts with their lender clients to assume more liability. This trend will be complicated in a few states where new AMC laws prohibit AMCs from shifting liability for their own conduct"

Here is a link to the complete article: http://www.appraiserlawblog.com/2010/12/11-predictions-for-amc-liability-risks.html

Source: Appraisal Legal Defense and Insurance Blog by Peter Christensen and Robert Wiley - Legal issues and insurance matters affecting residential and commercial real estate appraisers

11 Predictions for AMC Liability Risks in 2011 By Peter Christensen

We are looking forward to another challenging year in the business of insuring and defending claims in the appraisal industry. Based on both existing trends and new emerging issues, these are LIA Administrators & Insurance Services' predictions for the biggest liability risks that we expect for appraisal management companies in 2011:

1. Several AMCs will be sued by the FDIC. Hundreds of appraisers are currently involved in lawsuits or threatened with litigation by the FDIC relating to appraisals performed for failed lenders, principally for loans made from 2005 to early 2008. Attorneys for the FDIC are presently evaluating claims against AMCs which delivered appraisals during that time period. This threat will last well beyond 2011 because, under federal law, the statutes of limitation for claims by the FDIC as receiver are extended by 3 years for tort claims and 6 years for contract claims.
2. At least one AMC sued by the FDIC will discover that its professional liability policy excludes claims by the FDIC. A large number of AMCs (and appraisers) shop for the cheapest “E&O ticket” without any evaluation of coverage or exclusions. There is a strong likelihood that an AMC sued by the FDIC will discover – too late – that its professional liability policy contains a specific FDIC exclusion or a general “regulatory exclusion” or “regulatory agency exclusion.” Also, AMCs have thousands of panel appraisers with FDIC exclusions in their E&O policies.
3. A few AMCs will endure liability aftershocks relating to actual or threatened litigation by the purchasers of mortgage backed securities. MBS litigation against mortgage originators recently has become more organized and better handled by more knowledgeable law firms. The liability threat to AMCs is twofold: direct claims against AMCs by MBS investors and indemnification claims by lenders defending MBS investor claims. These issues will mostly affect AMCs which delivered appraisals between 2004 and early 2008 and will more likely affect the largest AMCs, but would quickly exhaust the insurance limits of or kill any smaller AMCs dragged into the litigation.
4. More AMCs will be named as defendants in lawsuits filed by borrowers and lenders alleging claims about poor quality appraisals. We have noticed a distinct trend that more AMCs are being named by borrowers in lawsuits which allege straightforward negligence or negligent misrepresentation in appraisals. This trend will continue to swell in 2011 and AMCs will find themselves involved in lawsuits that normally only would have named individual appraisers. There are a handful of reasons for this: (a) AMCs are more visible to borrowers and plaintiffs' attorneys; (b) appraisers doing very low fee work are more likely to leave the business (and drop their insurance coverage) leading to exposure of the AMC; (c) the line between appraising and appraisal management -- and their related liability -- has blurred; (d) some state AMC laws provide a basis for arguing that new duties and standards of care apply to AMCs; and (e) the AMC bonds required in some states will be an incentive for some borrowers to make claims.
5. We will see a few lenders sue AMCs to enforce appraisal “warranties” which obligate the AMCs to pay losses and costs for mortgage repurchases and other losses blamed on faulty appraisals. If the AMC did not properly evaluate the wording of any representations and warranties given in recently drafted lender contracts, the AMC may find itself liable for liabilities relating to appraisals delivered long ago. In some cases, the liabilities assumed by the AMC will be well beyond the AMC’s financial resources.
6. Some AMCs will encounter liability if they do not understand current appraiser E&O issues. As lender claims against appraisers continue at record levels in 2011, AMCs will more often discover in 2011 that their panel appraisers no longer have E&O covering the appraisals in question because the appraisers have left the business or obtained new insurance purchased at cheaper rates without coverage for their prior work (i.e., no “prior acts” coverage). These cheap policies are being marketed to appraisers based on the theme that "AMCs and lenders don't look at appraisers' prior acts coverage." Some lenders making claims will hold the AMCs responsible for the losses because of contractual representations made by the AMCs.
7. More AMCs will realize why it’s a bad idea to require their panel appraisers to attach E&O declarations pages to appraisal reports. It seems like common sense that having an E&O declarations page attached to an appraisal report incrementally increases the likelihood of an appraisal-related claim from a third party such as a borrower. Yet, many AMCs require it. We’ve seen firsthand, however, instances of AMCs being dragged into legal claims as a result of having the appraiser’s insurance information attached to reports.
8. More AMCs will seek to enforce appraisers’ contractual agreements to indemnify the AMCs for claims by borrowers and lenders pursuant to the indemnification clauses in contractor agreements. It’s been rare in the recent past that AMCs have actually sought to compel appraisers to indemnify them for appraisal-related claims under the terms of the indemnity provisions found in many AMC-appraiser contractor agreements. We will likely see more attempts to transfer AMC liability in the coming year because more AMCs now have the provisions, more claims will be made against AMCs, and AMCs have agreed in their own contracts with their lender clients to assume more liability. This trend will be complicated in a few states where new AMC laws prohibit AMCs from shifting liability for their own conduct.
9. We will see a few national AMCs penalized by state regulators. With new authority under some state AMC laws, state boards will first go after the “low-hanging fruit.” The easiest violations for them to prosecute are right out in the open because they appear on the face of AMC-appraiser contractor agreements. As states have enacted AMC laws and adopted regulations over the last year, many AMCs have failed to update their agreements to meet the differing requirements in each state. This will be an expensive trap for some, not only because of the penalties and costs of discipline but also because of the loss of lender business when discipline is publicized (most lenders will not want to take the risk of utilizing an AMC which has been the subject of state discipline). It will be very important for AMCs to have access to legal counsel familiar with defending appraisal-related matters before state regulators.
10. Dodd-Frank’s mandatory reporting of USPAP violations will create a dilemma for some AMCs. Under Dodd-Frank, AMCs have a TILA-based duty to report appraisers to state regulators when there is a reasonable basis to believe a USPAP violation has occurred, while many AMCs have contractually promised their lender clients to indemnify them for damages and costs relating to appraisal reports which fail to comply with USPAP.
11. Specific Litigation Predictions for 2011 (No New News Here): the FDIC will continue to be the single biggest source of appraisal-related claims; borrowers will continue to file more claims than lenders; First American CoreLogic will continue to be a very aggressive, but mostly unsuccessful, litigant against competing companies; and Florida, Arizona and North Carolina will continue to be the riskiest states.

Source: Appraisal Legal Defense and Insurance Blog by Peter Christensen and Robert Wiley - Legal issues and insurance matters affecting residential and commercial real estate appraisers

 

The Dawn of a New Era in Appraising

Guest Post by Tony Pistilli, Certified Residential Appraiser and Vice-Chair, Minnesota Department of Commerce, Real Estate Appraiser Advisory Board, Minneapolis, Minnesota

Approximately 30 years ago the automobile industry began to introduce computers into cars and since that time they have never been the same. What was once considered a rather simple procedure – tuning up your engine or even changing the spark plugs – has become an almost impossible project for anyone, except the highly trained automobile technician.

Today nearly every aspect of your car is aided or controlled in some manner by a computer. Digital radios with CD players, climate control systems, cruise control and pollution control devices are just a few of the components that are aided by computers. Computers now control the engine functions and other systems within the vehicle where mechanical components once ruled.

The introduction of these new technologies into automobiles required mechanics to learn new ways to maintain cars. They needed to become proficient in computer analysis of the new, non-mechanical systems and they learned new terminologies. In addition to the ratchets and wrenches they have always used, they were now using computers to help them do their jobs.

At the time, this must have seemed like a huge change. However, the auto mechanics that embraced the new technology, seeing it as a way to enhance their current core skill sets, were greatly rewarded. The mechanics that didn’t adapt and learn the new technologies… well, they are now picking up the phone and calling to make appointments to have their cars maintained by the highly trained – and highly paid – automotive technicians! And by the way, those mechanics who didn’t adapt and learn the new technologies are also no longer earning a living maintaining cars.

Technology Will Transform the Appraisal Process

This same transformation of an industry that occurred in the automobile industry in the ’80s has been under way for many years in the appraisal industry. With the average age of an appraiser approaching his or her mid-’50s, I know many of us have been around long enough to see what we thought, at the time, were some pretty big changes over the years. It might have seemed almost revolutionary when we went from two-sided tape to glue sticks, or from carbon copy FHA appraisal forms and tractor-fed forms printed by the first-generation computers to appraisal form software – not to mention the industry’s effort to enter into a “paperless” environment with digital cameras, online mapping, electronic sketch programs and digital signatures. With all of these changes, appraisers are certainly more productive today as a group of professionals, but as significant as they may have seemed, these changes are merely incremental improvements on an existing process.

Technology has allowed us as a profession to reduce the turnaround time for delivering reports while reducing the costs associated with preparing them. Email has eliminated the need for faxing and mailing reports. We are no longer bound to photocopying and collating reams of paper to create multiple copies of our reports for our clients. We buy fewer printer cartridges and have been able to eliminate our photo processing and mailing expenses. We have become more efficient and more productive and this has, in a small way, made it more understandable why appraisal fees haven’t increased in the last 20 years. We all know it is a far more complex environment to be appraising today than it was just five years ago. But the technological changes that have occurred over the years haven’t addressed that issue. All these changes haven’t really altered the way we do things and how we value real property. We can do reports quicker but not necessarily better.

At a time when the banks and financial institutions are all clamouring, and rightfully so, for more reliable appraisal reports, we have responded by routinely providing a fourth or fifth comparable sale and occasionally a few comparable listings. We are essentially still doing things the same way we always have and as a result it now takes longer to complete an appraisal report than it ever has, despite all of the efficiencies that have been introduced through technology.

In the flight to create more reliable and accurate appraisal reports, the agencies have introduced a multitude of requirements on how appraisals are done: comparable listings in declining markets, the 1004MC form and most recently the inclusion of interior photographs of the subject. Again, these have not necessarily proven to produce more reliable appraisal reports, just ones with more pages and addendums. What we need today is real change that will in turn produce a dramatic result.

Real change is affected when new systems or technologies are introduced that alter the entire process and ultimately the way things are done. Real change produces a totally different result, not just a polished version of the same old thing. Compared to what is about to happen over the next few years, what we have experienced to date has been a “buff ‘n’ shine” of the appraisal process. The real change that is about to occur will transform the way we do things and bring about a new era in real estate appraising!

Whether you know it or not, a new frontier in appraising is upon us and the change it is bringing is unlike anything we have ever seen before. Right now there are many very intelligent and creative people working to develop the next generation of valuation tools and processes that will catapult appraisers into the role of highly trained and well-paid valuation analysts. I use the term “valuation analyst” to describe this new breed of appraisal professionals, however, my friend Mark Linne has coined the term “econometricians,” and others have used terms such as “trusted advisors” and “valuation technicians.”

Regardless of what they will be called, the members of this new era of valuation professionals will be highly trained and will possess a thorough understanding of statistics and regression analysis. They will have scores of data and analytical information available to them at the front end of the process that up until now was either unavailable or very expensive for the individual appraiser to obtain. They will be highly trained to understand how to collect, manipulate and interpret large data sets. They will use tools and processes via the web to present data in visually understandable graphs and charts. They may complete their reports on the Internet rather than using traditional appraisal software and the time to complete the reports will be reduced to a fraction of what it is today. In addition, their reports may look very different than they are today, much more visual and graphic, but they will also be much more transparent and objective to the end user.

This combination of upfront analytics, greater data collection, and increased transparency and objectivity, delivered in a more graphic and understandable format, is exactly what lenders and financial institutions are searching for in their quest for a more reliable valuation of the collateral in the lending process. Much like the transformation of automobiles in the 1980s, the process of performing an appraisal in the near future will be much different. Those appraisers who choose not to learn and adopt the new technologies will be left behind, like the mechanics who chose not to change with the times, and will be left looking for a new way to make a living. This change should be viewed as an opportunity to appraisers. This change should be embraced by appraisers

Appraisal Regulation Will Intensify  . . . . Click here to continue reading!