Whats Next for the Ever-Changing Valuation Landscape

There have been many changes enacted that govern the business practices of real estate appraisals. In this ever changing valuation landscape, appraisers will benefit at Valuation Expo in Baltimore, MD with a continuing education session dedicated to addressing current and pending legislation. On July 12, 2016, Bruce Unangst, Executive Director, Louisiana Real Estate Commission will be speaking on the Regulatory Update panel at Valuation Expo and the Appraisal Buzz staff was able to catch up with Mr. Unangst to discuss his participation in the event.

Buzz: Thank you for taking the time and speak with us today, can you tell our readers a little bit about yourself and how you began in the industry?

Unangst: My background in the appraisal industry prior to my becoming Executive Director of the Louisiana Appraiser Board was primarily as a consumer of appraisal services. My prior experience as the Market Area President for a Louisiana based lender as well as my personal experience in the real estate industry enabled me to bring a slightly different perspective to appraiser and AMC regulation.

Buzz: At Valuation Expo in Baltimore, MD July 11-13^th you will be on the Regulatory Update panel. You have spoken to the Collateral Risk Network (CRN) and Association of Appraiser Regulatory Officials (AARO). What preview can you give us to whet everyone’s appetite that might provide inspiration to come listen and learn?

Unangst: The final rules regarding AMC registration and regulation promulgated last year has brought both opportunity and additional responsibility to state boards in establishing fair regulatory programs. How each state accomplishes this will have an absolute impact on all stakeholders.

Addressing the dwindling number of appraiser trainees and the potential shortage of certified appraisers is a problem now shared by many states. Is the elimination of a degree requirement going to solve the problem? How about relaxing educational and experience requirements? How will state regulators handle the likely increase in quality issues if standards are lowered? Do any proposals on the table provide any incentive for certified appraisers to take on trainees?

Buzz: Louisiana has been on the forefront of enforcement actions. Will the AMC Final rules impact your existing legislation?

Unangst: The major impact of the AMC Final rules was to clarify that each state opting to register AMC’s is mandated to not just register, but also regulate AMC activity. This includes the “elephant in the room”-customary and reasonable fee regulation. The issue is no longer “if” each state has the authority. The Final rules require state regulation. We believe our current legislation is adequate, however, if circumstances dictate, we will make the case to our legislature for additional authority.

Buzz: Is there anything else of interest about what you are working on in Louisiana that you would like to share?

Unangst: We are currently in the design process of an AMC panel management system to assist AMC’s in their state reporting and registry fee responsibilities now on the horizon. We believe a user friendly online system that could be updated by the AMC licensee on a weekly or monthly basis is the answer. This type system will likely be part of an online renewal process. While each state will have to recover their costs in whatever system they select, state’s must not “nickel & dime” our licensees, nor add undue reporting burdens that add unnecessary cost to our industry. Is a reasonably uniform technology driven solution available to each state the answer? Is a public-private partnership, or cooperative endeavor agreement a cost effective solution?

A background check system for appraisers to meet lender and AMC requirements is also being studied. While different lenders may have slightly different requirements, it appears that an updated “al-a-carte” online system is possible.

Buzz: Thank you again for taking the time out and talking with us today. We appreciate the information you have to share. To continue this conversation, I’d like to remind our readers that you can hear Mr. Unangst in person at Valuation Expo in Baltimore, MD July 11-13^th with a Full Conference pass.

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