text: McKissock Appraisal School Rev. 1-20-2013 Ken Guilfoyle Senior Certified National Instructor McKissock L.P. P.O. Box 1673 Warren, PA 16365 - 3158 Phone: Fax: 800-328-2008 814-723-7289 On the Web: www.mckissock.com E-Mail: [email protected] You want Snacks? You're lucky you got coffee! I'd like the memory of me to be a happy one, I'd like to leave an afterglow of smiles when my life is done. I'd like to leave an echo whispering softly down the ways, of happy times and laughing times and bright and sunny days. I'd like the tears of those who grieve, to dry before the sun. Of happy memories that I leave when my life is done. Are Appraisers Represented ? Who is working on our behalf to keep ethical standards in place? Many appraisal association representatives are involved with The Appraisal Foundation Advisory Council (TAFAC) Appraisers serve on state appraisal boards and we are part of the Association of Appraisal Regulatory Officials (AARO) Are Appraisers Represented ? Appraisers are or have been involved in writing the appraiser upgrade exams, reviewing texts for the Appraiser Qualifications Board (AQB) and being represented on the Joint Government Relations Committee Appraisers are working with the department of Housing and Urban Development (HUD), the Veterans Administration (VA), and other governmental bodies such as the Internal Revenue Service (IRS), the Department of the Interior, and the U.S. Army Corps of Engineers to make things better for the appraiser profession as a whole Are Appraisers Represented ? Appraisers from the Appraisal Institute, the American Society of Appraisers, the Association of Farm Managers and Rural Appraisers, and the National Association of Independent Fee Appraisers are working together to present Appraisal Issues to the U.S. Congress and the Federal and State Governmental Agencies that have the authority to impact the Appraisal Profession. Are Appraisers Represented ? Appraisers serve on The Appraisal Foundation's Appraisal Standards Board (ASB), the Appraisal Qualifications Board (AQB), the Appraisal Practices Board (APB), and their various specialty sub-committees Appraisers are working with the Appraisal SubCommittee (ASC) which is a part of the Federal Financial Institutions Examination Council (FFIEC) Appraisers serve as instructors, moderators, mentors, and trainers, sharing their knowledge and experience, all for the betterment of the appraisal profession Consumer Financial Protection Bureau's New Hot-Line Newest and least-publicized source of federal help: the CFPB's home-mortgage complaint and dispute-resolution hotline The complaint hotline is accessible by tollfree phone between 8 a.m. to 8 p.m. Eastern (855-411-CFPB) or online at: www.consumerfinance.gov Our U.S. Presidents and where they came from. Arkansas California Connecticut Georgia Hawaii Illinois Iowa Missouri Nebraska New Jersey - Clinton Nixon G. W. Bush Carter Obama Reagan Hoover Truman Ford Cleveland Our U.S. Presidents and where they came from. New Hampshire Kentucky Pennsylvania South Carolina - Pierce Lincoln Buchanan Jackson North Carolina Texas Vermont - Polk & Andrew Johnson - Eisenhower & Lynden Johnson - Arthur & Coolidge New York - Van Buren, Fillmore, T. Roosevelt & F.D. Roosevelt Our U.S. Presidents and where they came from. Massachusetts - J. Adams, J.Q. Adams, Kennedy & G. H. Bush Ohio - Grant, Hayes, Garfield, B. Harrison, McKinley, Harding & Taft Virginia - Washington, Jefferson, Madison, Monroe, W.H. Harrison, Tyler, Taylor & Wilson USPAP "Scope of Work Rule" Define the Problem. Determine your Scope of Work. Disclose the Scope of Work actually performed in your appraisal report. We alone are responsible for our Scope of Work decision. We will be held accountable for our Scope of Work decision. If not right, we may incur the liability for our incompetence. Useful WEB Sites www.HeartHub.org Warning signs for heart attack, stroke, sudden cardiac arrest www.MayoClinic.com/health/fitness/SM00 086 Quick tests to measure fitness and track progress www.USA.gov/directory/federal/index.sht ml Contact info for hundreds of US agencies and departments reference: Bottom line newsletter, January 2013 Five Worst Gov. Web Sites Time.gov Weather.gov USDA.gov SSA.gov USMINT.gov Reference: [email protected], How Busy are Appraisers ? A survey by Appraisalport.com quotes: Up to 6 hours per day Up to 7 – 8 hours per day Up to 9 – 10 hours per day Up to 11 – 12 hours per day Up to 13 – 14 hours per day Up to 15 – 16 hours per day 16 or more hours per day 298 responses 903 " 2195 " 1576 " 636 " 251 " 184 " Reference: Appraisal Today Newsletter, 11-04-12 Appraisal-Port Survey turn times up What is your average quoted residential appraisal turn time? -2 days 415 votes 7% - 3-4 days 1,196 votes 21% - 5-6 days 1,625 votes 29% - 7-8 days 1,088 votes 19% - 9 days or more 595 votes 11% Total Votes: 5,645 Reference: Appraisalport.com survey States with the Highest Percentage of Jumbo Loans States that have the highest number of Jumbo Loans include: Hawaii California Dist. of Columbia New York New Jersey 43 41 30 22 10 % % % % % Who owns the most private land in America ? According to www.finance.yahoo.com the top three landowners are: John Malone owns 2.2million acres stretching from Wyoming to Maine Ted Turner owns 2 million acres throughout the mid-West and New Mexico The Emmerson family holds1.9 million acres in the Pacific North West. FDIC is Still Very Busy ! The FDIC took over 92 banks in 2011. Total amount of assets was $57.6B. There were 159 banks taken over by FDIC with $95.1B of assets in 2010 139 institutions were seized in 2009 with $170.3B of assets. FDIC believes that bank failures peaked in 2010 Reference: CRE News Update, 6-13-12 Senate Panel Report on WaMu Failure Highlights Appraisal Role The U.S. Senate Permanent Subcommittee on Investigations released a 650-page report April 13th that included a case study on Washington Mutual's failure, highlighting the role of unsound appraisal practices in the bank's collapse. Reference: Appraiser News on-line Who is Looking at Your Appraisal? Our Appraisals are being looked at more than ever by people who are not appraisers. According to data from the Appraisal Institute: There are about 13,000 +/- appraisal reviewers Approximately 1/3 are working with appraisal firms Can You Support "Effective Age"? Go to: www.mckissock.com Click on: "Help" Then Click on: "Student Download" You will find it there Let's say it's 6.15pm and you're driving home (alone of course) after an unusually hard day on the job. You're really tired, and frustrated…… YOU ARE REALLY STRESSED AND UPSET …. Suddenly you start experiencing severe pain in your chest that starts to radiate out into your arm and up into your jaw. You are several blocks from the nearest hospital. Unfortunately you don't know if you will be able make it that far WHAT TO DO ??? You have been trained in CPR, But the guy that conducted the course did not tell you how to perform it on yourself !!!!! HOW TO SURVIVE A HEART ATTACK WHEN ALONE? SINCE MANY PEOPLE ARE ALONE WHEN THEY SUFFER A HEART ATTACK, WITHOUT HELP, THE PERSON WHOSE HEART IS BEATING IMPROPERLY AND WHO BEGINS TO FEEL FAINT, HAS ONLY ABOUT 10 SECONDS LEFT BEFORE LOSING CONSCIOUS WHAT TO DO ?? ANSWER: DO NOT PANIC, BUT START COUGHING REPEATEDLY AND VERY VIGOROUSLY. A DEEP BREATH SHOULD BE TAKEN BEFORE EACH COUGH, THE COUGH MUST BE DEEP AND PROLONGED, AS WHEN PRODUCING SPUTUM FROM DEEP INSIDE THE CHEST. A BREATH AND A COUGH MUST BE REPEATED ABOUT EVERY TWO SECONDS WITHOUT LET-UP UNTIL HELP ARRIVES, OR UNTIL THE HEART IS FELT TO BE BEATING NORMALLY AGAIN. DEEP BREATHS GET OXYGEN INTO THE LUNGS AND COUGHING MOVEMENTS SQUEEZE THE HEART AND KEEP THE BLOOD CIRCULATING. THE SQUEEZING PRESSURE ON THE HEART ALSO HELPS IT REGAIN NORMAL RHYTHM. IN THIS WAY, HEART ATTACK VICTIMS CAN GET TO A HOSPITAL ARTICLE PUBLISHED ON N.º 240 OF JOURNAL OF GENERAL HOSPITAL ROCHESTER TELL AS MANY OTHER PEOPLE AS POSSIBLE ABOUT THIS. IT COULD SAVE THEIR LIVES !!! DON'T EVER THINK THAT YOU ARE NOT PRONE TO A HEART ATTACK, EVEN IF YOUR AGE IS LESS THAN 25 OR 30. NOWADAYS DUE TO THE CHANGES IN LIFE STYLE, HEARTATTACKS ARE FOUND AMONG PEOPLE OF ALL AGE GROUPS. Top- Earning DEAD Celebrities According to Forbes' Annual Celebrity list: Michael Jackson (2009) Elvis Presley (1977) J.R.R. Tolkien (1973) Charles Schultz (2000) John Lennon (1980) Dr. Seuss (1991) Albert Einstein (1955) George Steinbrenner (2010) $275 Million $ 60 Million $ 50 Million $ 33 Million $ 17 Million $ 11 Million $ 10 Million $ 8 Million The Statue of Liberty Sits on her very own island in New York harbor and is recognized around the world as the symbol of freedom Officially dedicated on October 28,1886 and titled as "Liberty Enlightening the World" The 25 windows represent the earth's 25 minerals. The 7 spikes on her crown represent the 7 seas and the 7 continents She is more than 300 feet tall. Her sandal is 25 feet long and one must climb 22 stories to reach her crown. The Golden Gate Bridge Opened to the public on May 27, 1937 Took 4.5 years to complete Cost $35 million dollars to build Approximately 1.7 miles long Main span is 4,200 feet 746 feet at tallest point 11 workers died during construction Finally, This appraisal is done! "When the American people no longer believe that this country is a place where only their willingness to work hard will determine their success in life, we'll have a whole bunch of people sitting on a couch waiting for their next government check" We will become a "paternalistic entitlement society" Reference: American Legion Magazine A daily dose of laughter might just keep the doctor away. When you laugh, it: Stimulates circulation Tones muscles Energizes the lungs and respiratory system Stimulates the immune systems Provides aerobic exercise Reduces stress and depression Heightens sense of well being and creativity A Humorous Disclaimer for you It has been suggested/implied that this office knows EVERYTHING. While we find this flattering/amusing, it must be disclosed that while we MAY have an answer for everything, these answers are frequently offered in a very random manner and may have nothing at all to do with the question asked. We realize this can be a problem and are diligently working on a solution. K I S S – "Keep it Simple --" Math – the infinities of our math system stem from 10 simple numbers. Michelangelo used just 4 primary colors when he painted the Sistine Chapel. Abraham Lincoln's Gettysburg Address, one of the world's most famous speeches was 278 words and 215 of those words were simple one syllable words. Simple can be pretty powerful. Greatness can come from simple things. Reference: Business Review Newsletter Did You Ever Wonder Why--To stop Windows, you need to click on "Start" ? Doctors call what they do "Practice" ? Lemon juice is made with artificial flavor, dishwashing liquid made with real lemons ? You do not ever see the headline "Psychic Wins Lottery" ? "Abbreviated" is such a long word ? They sterilize the needle for lethal injections ? Info. from the ASC Appraiser Registry. Active Appraiser Licenses: Licensed ---------------- 11,865 Certified Residential -- 52,568 Certified General ----- 37,974 Transitional -----------7 Total --------- 102,414* *The ASC indicates there are actually 89,000 (+/-) licensed and certified appraisers throughout the United States per their annual report to Congress Ref: ASC Federal Register Summary Report , 1-2013 Top 6 States -- Active Appraisers State # of Appraisers California 11,661 6,378 5,289 4,205 4,140 3,850 Florida Texas Illinois New York Georgia Reference: ASC National Registry, 1-2013 Additional Info. from the ASC Appraiser Registry. States that have retired or eliminated the "License" category for Appraisers: Alaska, Connecticut, Florida, Indiana, Illinois, Iowa, Missouri, Louisiana, Mariana Islands, North Carolina, South Carolina, Pennsylvania, Tennessee, Wyoming, and the Virgin Islands "Working Real Estate" Appraiser Survey Number of years in the appraisal practice: Years (#): Less than: 1 5 10 20 30+ Totals 1% 23% 27% 33% 16% Appraiser's average age: (Overall = 52 years) Under 30 31-40 41-50 51-60 61-70 71+ Totals 4% 18% 29% 34% 13% 2% Top Residential Mortgage Providers As of October 2012, a Report by Inside Mortgage Finance: Wells Fargo Bank of America Chase Citi Ally Financial U.S. Bank-Home 19.9 % 17.2 % 12.4 % 6.2 % 3.4 % 2.0 % Reference: Appraiser Newsletter Top Commercial Mortgage Servicers According to the Mortgage Banker's Association, the top Commercial Mortgage Servicers in 2012 were: Wells Fargo PNC Real Estate/Midland Loan Services Berkadia Commercial Mortgage Bank of America Merrill Lynch Key Bank Real Estate Capital Reference: Appraiser Newsletter AppraiserWorld.com Appraiser Survey Gender distribution of active appraisers: Female – 26 % Male – 74 % TAF Survey (The Appraisal Foundation) Have appraisers ever belonged to one of the TAF sponsoring Appraisal Associations? 60 % (+/-) of appraisers said "no". Have appraisers ever belonged to any appraisal or valuation association? 85 % of appraisers said "no". "Working Real Estate" Survey Feb. 2012 What is the appraiser's highest level of formal education completed? High School 22 % Undergrad Degree 25 % Graduate Degree 45 % Post Grad Degree 8% TAF Survey What is the primary area of your appraisal practice? Residential Commercial Bus. Valuation Agriculture Mass Appraisal Personal Property All Other 69% 16% 1% 4% 3% 1% 6% TAF Survey Employment Category: Owner operator Company / Partnership Government Agency Mortgage Lending Other 60% 19% 6% 5% 10% TAF Survey Reporting the appraisal: 71% of appraisers said that 75% of their reports are form type reports. 22% of appraisers said that less than 25% of their work was reported on a prepared form. Are appraisers willing to mentor a trainee? Only 25% of appraisers are willing to act as a mentor for a trainee. Appraisal Management Company (AMC) Participation 73 % of appraisers are currently working with AMCs. 20 % of appraisers have worked with an AMC within the last 5 years, but not now. 25 % of appraisers are not currently working with AMCs, and have not worked with an AMC in the past 5 years. Source: "Working Real Estate" Survey" Valuation Review's "Voice of the Appraiser Survey" According to the Valuation Review Survey of Appraisers: Appraisal services provided by residential appraisers: Full Appraisal Services 99 % Drive-by Appraisals 57 % Property Condition Reports 38 % Broker Price Opinions 7% Valuation Review's "Voice of the Appraiser Survey" Residential Appraiser's believe their Fees are: 12 % Unlivable 53 % 25 % 10 % AMCs believe 8% 13 % 62 % 17 % too low for work required Reasonable for work required Above the Average Residential Appraiser's Fees are: Unlivable Fees too low for work required Reasonable for work required Above the Average More Poll Results from Appraisers (4,691 responses) What percent of your assignments result in requests for clarification from the client? 0% 10% of the time --- 45% 11%-20% of the time - 19 % 21%-30% of the time – 13% 31%-40% of the time - 8% 40% + of the time ---- 15% Reference: www.Appraisalport.com More Poll Results from Appraisers (5,632 Responses) How often does your client request information that is already in the original report? "Often" "Almost "Rarely" "Never" always" 60% responded 12% responded 27% responded 1% responded Reference: www.Appraisalport .com Taking Back your Profession! If you are receiving less than a customary and reasonable fee or working with an AMC who doesn't seem to care about the quality of your appraisals or the competency of their staff, you're working with the wrong company. **Note** Customary and reasonable fees form the base and can be negotiated upward from there depending on complexity, etc. Questioning AMC's Policies If a loan fails to close, is it within the law to withhold your payment for the appraisal? NO. Questioning AMC's Policies Is the person running an AVM required to have the requisite experience, which means be "licensed" as an appraiser? Yes, If the valuation is to be used by the bank for lending purposes. Questioning AMC's Policies Is it a good idea to "change" your report at the request of an AMC or Lender after submission? NO. "Changing" your report will probably result in a complaint being filed with your state appraisal board by the AMC or Lender. Questioning AMC's Policies Is it legal for an AMC to choose an appraiser based solely on the lowest fee? NO. Selecting an appraiser solely based on the lowest fee is prohibited by numerous federal regulations. Questioning AMC's Policies Is it okay for an appraiser to give a verbal" value estimate" over the phone just to verify whether there's value? NO. This is a prohibited practice if the verbal opinion is for a "lending purpose". Questioning AMC's Policies Is it legal for an FHA appraisal to include a fee for management of the appraisal process? NO. Questioning AMC's Policies Appraisers need to know much more than their USPAP rules today. Appraisers need to be familiar with the applicable Fannie Mae, Freddie Mac, FHA, and VA requirements, Interagency Guidelines, state and federal laws, and the Certifications that appraisers sign and include in every report. Reference: This slide and the previous 7 slides taken from the OREP/Working RE webinar, Part 2 All McKissock Instructors are AQB Qualified USPAP Instructors Time Time is absolutely the most precious gift we have. None of us know how much time we have or how long it will last. You can't buy it. You can't replace it. You can't really give it to anyone. You can only use it. How you use your time is how you make yourself different from everyone else. Residential Appraisal Production Time Time (hours) 0.20 1.50 0.20 2.50 1.35 5.00 0.50 0.20 1.05 12.50 Description Receive, setup, maintain files Research, data, maps, file info Setting & confirming appointments Drive to & from appointments (includes comps. no shows and re-inspections) Average appraisal inspection time Writing report Review, edit, corrections Delivery, follow up confirmation Unproductive time amortized Average Appraisal Production Time "How Did You Get That Adjustment ?" When a reviewer or underwriter asks about your adjustment or says: "This adjustment is not right." You might want to respond with: "Show me that I am wrong." This often works. But be sure that you can support your adjustment figure. Square Footage & Public Records Local Assessors are quick to point out their data is a creation of mass appraisal data for specific use within the tax assessment process Experienced Assessor's comment: "if any agent uses the square footage info we provide to figure out property values, someone's in big trouble." Where does that leave Appraisers? Reference: Kirchmeyer Klips Newsletter Rebutting that "Blacklist" Letter How can you rebut that "We will no longer use you" letter you received from the bank or AMC with no explanation? The Office of Comptroller of Currency (OCC) has a Consumer Assistance Group and you can file a complaint online at: www.Helpwithmybank.gov . A letter to your state appraisal board will trigger an inquiry for explanation from the AMC. Reference: Working RE, Summer 2012, Pg 12 Why do Appraiser's Leave this Business ? According to an Appraisal-Port Poll of 6,200 Appraisers: AMC fee splits/ Lower fees 3,530 Increased report scrutiny 829 Endless new legislation 621 Increased liability 406 Current market conditions 298 Getting old & tired 165 Wouldn't leave for any reason 351 Did You Know ? 36 % of U.S. households (or 32.4 million) own at least one cat. 90 million cats are owned in the United States. 74.8 million dogs are owned in the United States. 39 % of U.S. households (or 29.2 million) own at least one dog. Reference: American Pet Products Manufacturers Association Did You Know ? 90 % of the continental United States is still open space or farm land. On average, 40 % of all hotel rooms in the United States remain empty every night. If the Great Pyramid of Cheops were disassembled, you would get enough stones to encircle the earth with a brick wall 20 inches high. The ostrich has the largest eyes of any other land creature. Reference: Business Review Newsletter Did You Know? The 102 story Empire State Building has 6,000 windows On a $100 dollar bill, the Independence Hall clock shows the time as 4:10 When Lifebuoy soap was introduced in 1897, it was called Life buddy soap. More arguments occur in the kitchen than in any other room of an American home. Reference: Business Review Newsletter Did You Know? West Virginia has the highest number of homeowners at 77 % New York State has the lowest number of homeowners at 55 % 50 % to 70 % of home water use goes toward gardens and lawns 14 % is the portion of the water a homeowner pays for that is never used; it leaks down the drain. Reference: Liberty Lines Newsletter Did You Know ? Lightning strikes the United States 25 million times every year There are 4 million miles of public roads throughout in the United States The average thunderstorm lasts 30 minutes and has a diameter of 15 miles In 2010, tornadoes accounted for more than $566 million in property damages Reference: Liberty Lines Newsletter Did You Know ? Bugs Bunny was the first cartoon character to be on a U.S. postage stamp in 1997 About 30 million American adults do not own a cell phone 97 % of on-line pharmacies sell fake, expired, or contaminated products not approved by the FDA Reference: Bottom Line newsletter, January 2013 Check for Exclusions in Your E&O Policy! If your policy has an FDIC exclusion (no coverage for claims initiated by the Federal Deposit Insurance Corporation) or a more general exclusion for claims arising from "the failure and/or insolvency of a financial institution," your coverage and protection may be limited or none. Check with your E & O provider for an explanation of your insurance terms. Checklist for a Good Relationship Think "we" not "me" Learn to listen Work as a team Learn to negotiate Go on dates Praise your partner YOUR JOURNEY THRU LIFE Life is not a journey to the grave with the intention of arriving safely and pretty in a well preserved body. but rather, it is to skid in broadside, thoroughly used up, totally worn out and loudly proclaiming "WOW – WHAT A RIDE !!!" From: [email protected] Leadership and You True leaders are not those who strive to be first but those who are first to strive, who have good attitudes and give their all for the good of their profession. Our lives are not determined by what happens to us but how we react to what happens; not what life brings to us but by the attitude we bring to life ! Top 6 Languages of the World Mandarin Chinese, English, Hindi, Spanish, Russian, Arabic, 1 Billion + 512 Million 501 Million 399 Million 285 Million 265 Million Reference: Business Review Newsletter Largest Private Owned Home in U.S.A. The "Biltmore Estate" is a large private estate located in Asheville, North Carolina It is still owned by the Vanderbilt's descendants , with 250 rooms encompassing some 178,926 square feet of living area. Constructed 1889-1895 www.romanticasheville.com/biltmore_hou se.htm CONVERSION CHART INCH = DECIMAL 1" 2" 3" 4" 5" 6" .083 .1667 .25 .33 .416 .5 INCH = DECIMAL 7" 8" 9" 10" 11" 12" .583 .667 .75 .833 .916 1.00 MEASUREMENTS 7.92 inches 25 links 16.5 feet 4 rods 320 rods 5,280 feet 43,560 sq ft 640 acres 640 acres 36 sections 27 cubic feet 1 stone = = = = = = = = = = = = 1 link 1 rod 1 rod 1 chain 1 mile 1 mile 1 acre 1 sq mile 1 section 1 township 1 cubic yard 14 pounds Ethics & Integrity Always be ready to humble yourself and find a mentor along the way. No matter how successful we are there is always room for improvement when we open up our minds to others, otherwise, we will stagnate and fall by the wayside. Ethics & Integrity How far we go in life depends on your being tender with the young, compassionate with the aged, sympathetic with the striving, and tolerant with the weak and the strong. Because someday in life, you will have been all of these. Observations You can tell a lot about a person by the way he or she handles three things: 1. A rainy day 2. Sitting in traffic jams 3. Tangled Christmas tree lights Additional Observations People will forget what you said ----- People will forget what you did ---- But people will never forget how you made them feel. People remember people who remember them. The Perfect Husband A husband forgot his wife's birthday… His wife told him, "tomorrow there better be something in the driveway for me that will go from zero to 200 in 2 seconds flat". The next morning the wife found a small package on the driveway…When she opened the package, she found a brand new bathroom scale. Funeral arrangements for the husband have been set for Saturday…. WE IS FRIENDS ! Me and You is Friends… You Smile, I Smile… You Hurt, I Hurt…. You Cry, I Cry… You Jump off a Bridge… I Gonna Miss You. Did You Know.. The average American Has 31 blood tests. Eats 114,000 Tootsie Rolls. Buys 6 cameras. Makes 184,702 phone calls. Eats 250 pounds of peanut butter. Spends 4 years traveling in automobiles. Reference: Business Review Newsletter Did You Know.. The average American Spends 2 years unsuccessfully returning phone calls Six months sitting at stop lights Seven years waiting in lines Eight months opening junk mail and Watches 1 year of TV commercials. Reference: Business Review Newsletter Additional Observations Population of U.S.A. =310 million (+/-) 50 million (+/-) lack enough info in their credit history for a reliable FICO score. AVM estimates of Value: Approximately 80 % of the U.S.A. lacks enough data for a reliable estimate of value Appraiser's License Information The FHFA has mandated that Fannie and Freddie collect the license/certification numbers of appraisers for the state in which a subject property is located This information is being incorporated into Fannie and Freddie's electronic delivery system. No More "Exterior Only" Appraisals Fannie Mae has announced that they will no longer purchase mortgages with the 2055 Summary Report Form used for the mortgage finance transaction. Reference: Appraisal Institute News letter, December,2012 FHA still has their own HVCC FHA issued Mortgage letter # 200928 to ensure that their appraisers are not subject to pressure from clients and that they are allowed to operate independently. FHA's Mortgage Letter is very similar to the FHFA interim rules issued on 10-19-10 for Fannie And Freddie. HUD has their own blog: "The HUDdle" More interactive - advanced sharing, embedding and multi-media with regular and guest bloggers, video blogs and special behind-the-scenes at HUD content. Check it out at: http://hud-blog.omnitecinc.com Reference: OREP Newsletter This is Not Good News ! According to the Federal Reserve Bank of New York and the New York University, more than 40 percent of the FHA loans originated from 2007 through 2009 will be delinquent within 5 years The study goes on to say that the FHA has significantly underestimated that risk. Reference: The FHA Update, July 2, 2012 Two Issues Facing HUD/FHA The FHA has announced that it will implement substantial reforms to strengthen its single-family mortgage loan program. The program is apparently 16.3 billion dollars in the red. The changes will limit borrowers with credit scores below 620 to a total debt-toincome ratio of 43 %. It has also been proposed that these borrowers have 10 % down payment for purchases FHA also announced that it will discontinue its reverse mortgage program that permits elderly homeowners to take as much as 77% of appraised value out of the residence. This program has proved to be too costly for FHA. FHA will continue to offer an alternative program, which acts essentially the same as a home equity program which the homeowner may borrow against. Reference: eVIP Appraisal News Quote of the Week "If you follow the rules that HUD has given to you to the extent that you can — you recognize that there may be a glitch here and there — as long as you are operating in good faith and trying to comply, HUD will help you get to full compliance rather than try to slam you for an immaterial oversight." - Jeff Arouh, partner, Holland & Knight, New York, Reference: RESPANEWS.com GSEs Uniform Appraisal Dataset (UAD) Fannie Mae and Freddie Mac have standardized the language used in the residential appraisal reporting process. The stated purpose is to improve and bring consistency to the quality of reporting data that is most material to the valuation of a property and/or critical to determining the loan's eligibility for sale to the GSEs. GSEs Uniform Appraisal Dataset (UAD) Conti. GSEs require appraisals be completed with standardized responses in certain appraisal report fields to include: Standardized formats for fields that include dates, values, etc. Allowable values from a list of choices provided Standardized abbreviations Standardized ratings and definitions for condition, quality, and updating/renovations of the property Uniform Appraisal Dataset (UAD) The current version (Version 1.4, dated June 17,2012) of the UAD specifications and the 77 FAQs can be found on: www.efanniemae.com click on "Appraisers" GSE's Uniform Collateral Data Portal (UCDP) GSEs have developed the UCDP for the electronic delivery of appraisal report data, by lenders, to both Freddie Mac and Fannie Mae. A PDF version of the appraisal report and additional appraiser information delivered using the UCDP prior to loan delivery for the four residential appraisal report forms is now in effect. The Fannie Mae Selling Guide has updated UAD Info Most appraiser requirements and appraisal information are located in: Part B, Sections 2 & 4. Appraisers are cautioned to stay current, as the guide is constantly being updated. The link is: https://www.efanniemae.com/sf/guides/ssg /sg/pdf/sel 072611.pdf Reminder About the UAD The so-called "hard-stops" or "rejects" kicked in on January 28th, and there are lot of problems. Just to play it safe, you should look at: https://www.fanniemae.com/content/user _guide/ucdp-user-guide-fannie-maemessaging.pdf You might just go ahead and refresh on all the UAD guidelines, at www.efanniemae.com , click on "Appraisers." FHA Requires UAD From FHA's Appraiser Newsletter: "When performing appraisals reported on the URAR and the individual condominium unit report form, FHA Roster Appraisers are required to submit reports which are UAD compliant." FHA does not permit the use of either of the two "Exterior only (2055 & 1075) appraisal reporting forms." V A requires the UAD too.. The V A also requires the use of the UAD for the modified Fannie Mae 1004 and 1073 forms. Start date for UAD compliance by FHA and VA was January 1, 2012 The UAD and Appraisal-Port Poll Question Now that you are reporting appraisals using the new UAD format, do you find it any more effective or helpful with supporting your value? -- Yes (5.1%) 271 votes -- No, it actually makes it more difficult to explain and support my research. (66.1%) 3525 votes -- It's about the same as the previous format in that regard. (28.8%) 1539 votes Total Votes: 5335 Reference: Appraisal today Newsletter, Dec. 2012 Updated Requirements for Residential Appraisers. To be consistent with the Uniform Standards of Professional Appraisal Practice (USPAP), Fannie Mae is specifying that their lenders (Financial Institutions) must select appraisers with the knowledge and experience in appraising the property type in the market area and have access to all the applicable data sources Reference: Fannie's Selling Guide Update Age of Housing Units in the United States Pre 1920 1940 1960 1980 2000 2006 - 1920 - 1939 – 1959 – 1979 – 1999 – 2005 – Present 8% 9% 16 % 32 % 26 % 8% 1% Source: U.S. Housing Market Conditions, Third Quarter, 2012 Composition of Housing Stock Housing Type Total Occupied: Owner Occupied: Renter Occupied: Vacant: Seasonal: All Housing: # of Units % 75,665,000 59.0 35,954,000 27.3 13,092,000 10.2 4,392,000 3.4 129,103,000 100.0 Reference: U.S. Housing Market Condition, 3rd Qtr. 2012 How is your Appraisal Business? FannieMae Appraisals per business day = 9,000 (+/-) @ $300.00 (+/-) per appraisal. That is 2.7 million dollars paid out for appraisals every business day. How is your Appraisal Business? FreddieMac Appraisals per business day = 7600 (+/-) @ $300.00 (+/-) per appraisal. That is 2.3 million dollars paid out for appraisals every business day. How is your Appraisal Business? FHA Appraisals per business day = 12,000 (+/-) @ $300.00 (+/-) per appraisal. That is 3.6 million dollars paid out for appraisals every business day. Reference: Appraisal Today Newsletter Want to Appraise for FHA? Here is the web address for application information and to apply on line. There is no test required. There is no cost to apply. http://www.hud.gov/groups/appraisers. cfm Reference: ICAP Bulletin , October, 2010 FHA FAQ Web Site http://faq.fha.gov/ is a 24/7 source for FHA information. Over 1,000 Q & A info items with the mortgage letter or handbook references. FHA has deleted the requirement for second appraisal on refinance loans above $417,000. FHA still requires a second appraisal for properties resold 91 to 180 days. Client to pay for the second appraisal. No second case number required. Reference: FHA Mortgagee letter 09-48 FHA Questions? The new primary E-Mail address for FHA is effective as of August 15,2011: [email protected] or www.HUD.GOV/answers In addition, you may use the "Contact FHA" tab to submit questions directly to FHA. Reference: [email protected], e-mail, Aug.8, 2011 V.A. continues to expand their Appraiser Roster through 2013 Appraisers and Compliance Inspectors receive assignments on a rotational basis from the V.A. For information, application forms, and V.A. requirements, go to the VA website at: www.benefits.va.gov/homeloans/appraisal.asp. Click on "Fee Panel Application" REF: Gerald Kifer, Chief VA Appraiser Program Not a Good Sign ! Revised "Home Affordable Refinance Program (HARP 2.0)" Obama administration has announced a revised program to step up aid to homeowners and revive the housing market. President Obama had originally announced the "Making Homes Affordable Program" in 2009, setting a goal of 3 million to 4 million refinanced loans by the end of 2012. Reference: Mortgage Bankers Newsletter USPAP -- 17th Century Version Whereas you are the chosen appraizers of such lands or goods as are now presented to you, you do heerby swear by the Living God, that all partialite, prejudice and other sinister respects layed aside, you shall appraize the same, and everie part thereof, according to the true and just value thereof at this present, by common account, by your best judgement and conscience. So help you God. Appraisers Oath, Massachusetts Code, 1648 Words by Teddy Roosevelt It is not the critic who counts, not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man in the arena, whose face is marred by dust and sweat and blood, who strives valiantly … who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause, Teddy Roosevelt, continued: Who at best knows in the end of triumph of high achievement, and who at the worst, if he fails, at least fails while doing greatly, so that his place shall never be with those cold and timid souls who have never known neither victory or defeat. Teddy Roosevelt was President of the United States, 1901 – 1909. My Living Will Last night, my kids and I were sitting in the living room and I said to them, "I never want to live in a vegetative state, dependent on some machine and fluids from a bottle. If that ever happens, just pull the plug." They got up, unplugged my computer and threw out my wine!! -- Smart Aleck Kids Nice People Do Finish First !! People want to deal with people they like. People like people with whom they feel a connection. Connections build trust between people. People want to help people with whom they feel a connection. People refer friends to people with whom they feel a connection. People want to do repeat business with people they share a connection with. Appraisal "Myth" Busting Time Myth: "No taking comp or subject photos with people in them." There is NO such prohibition and never was. Even HUD has been stymied by the fact that so many in the lending profession really think it's been a law since 1968. Fannie Mae has never had such a rule but they have heard this since the 1970's. Reference: Illinois Appraisal Newsletter, October 2009 Want more info? [email protected] LEARNING PYRAMID Lecture Reading Audio-Visual Demonstration Discussion Practice by Doing Teaching Others We Remember : 10 15 20 40 80 90 % % % % % % of of of of of of what what what what what what we we we we we we hear. see. see and hear. discuss with others. experience directly. teach others. Lets Hear it for Doodling !! A recent study from the University of Plymouth in England found that people who doodled while listening to a tape had 29 % better recall than the other participants, on average. Researchers theorize that doodling can keep you from daydreaming while not distracting you from the main activity. Reference: Bottom Line News, 1-15-11 Appraisers Ranked # 8 in the "Top 10 Jobs" MONEY magazine has listed Real Estate Appraisers as # 8, among the top 10 jobs in the U.S.A. WHY? -- Valuations are needed whenever a property is sold, mortgaged, insured, taxed, or developed. Research isn't the pain it used to be, thanks to the internet. HOWEVER – There is still a lot of legwork and advancement is limited. BUT – There is still going to be work, even when the market slows down. Working Real Estate Survey 93 % of the appraisers surveyed stated that "appraising" was their primary source of income 7 % of appraisers surveyed said that "appraising" was a secondary or supplemental source of income. Appraisal-Port Survey 5,000 respondents as of: 3-25-12 2011 Appraiser Gross Income: 8%= 17 % = 19 % = 18 % = 11 % = 7%= 11 % = 9% = $1 to $25 K $26 K to $50 K $51 K to $75 K $76 K to $100 K $101 K to $125 K $126 K to $150 K $151 K + Not Sure Some of the Reasons why it is great be an Appraiser !! Dazzle your friends with your knowledge of external obsolescence Enter that wonderful world of rats, bats, fleas, spiders, and snakes Be a part of the profession that is blamed for the collapse of the Savings & Loan industry See places in people's houses that usually require a search warrant Arouse suspicion of an entire neighborhood when inspecting comparable sales More Reasons why it is great be an Appraiser !! Chance to really irritate annoying real estate sales people Walk around holding a clipboard just like "Skip" down at the Jiffy Lube Spend hours writing volumes of supporting documentation to justify the market value of a property you already decided on when you pulled into the driveway Remodeling Costs vs. Returns – as of: December 2012 Item Steel Entry Door Repl. Garage Door Replacement Roof Replacement Vinyl Windows Repl. New Exterior Siding Add Family Room Deck Addition Remodel Basement Remodel Bathroom Minor Kitchen Remodel $ Cost $ 1,200. $ 1,200. $14,200. $10,200. $12,100. $74,800. $15,039. $64,000. $40,590. $28,000. % Return 102 % 102 % 72 % 73 % 80 % 72 % 73 % 70 % 63 % 76 % Check out your specific area at: http://www.costvsvalue.com Replacement Time-lines Re: Consumer Reports, October 2012 Clothes Dryer Dishwashers Microwave ovens Ranges (gas/electric) Refrigerators: (side by side) Refrigerators: (Top Freezer) Refrigerators: (Bottom Freezer) Vacuum Cleaners (upright) Wash Machine (Front Load) Wash Machine (Top Load) Digital Cameras Camcorders Computers (desk and Laptop) 6 5 5 7 7 5 7 4 7 6 3 4 3 years years years years years years years years years years years years years The replacement timelines are a result of the high cost of repairing these items. Competency What is the secret of your success? " good decisions." How do you know how to make the right decisions? " Competency and Experience." How do you get this experience? " Bad decisions." Typical Appraiser's Excuses 1. 2. 3. 4. 5. 6. 7. I I I I I I I didn't think. didn't know. don't care. was too busy. leave well enough alone. am not interested. have no time to read and find out. 5 Major Causes of Failure 1. 2. 3. 4. 5. Carelessness Laziness Indifference Forgetfulness Temptation Professionalism Thoughts Words Actions Habits Character Destiny - Become Words Become Actions Become Habits Become Character Becomes Destiny Becomes Professional The appraiser's professionalism was confirmed in FIRREA and further reinforced by the Dodd – Frank Act of 2010. FIRREA The Financial Institutions Reform Recovery Enforcement Act was 20 years old in 2009. Here is another definition of FIRREA ---- Finally, I'm a Rich Real Estate Appraiser. Well – Maybe not yet !! Appraiser's Role in Home Ownership The independent Real Property Appraiser may be, the only unbiased opinion that purchasers have to depend on for sound investments in real property housing. The ability, for millions of people to reasonably obtain the American dream, is directly impacted by the appraiser's role in the attainment of home ownership. Can You Support "Effective Age"? Go to: www.mckissock.com Click on: "Help" Click on: "Student Download" You will find it there Copyrighting your Appraisals Definition of terms: Author – The creator of the original work. Original work - Your opinions, analyses, and conclusions can be said to be original work by you. Copyright mark – The copyright symbol, or the word copyright and the date. Note: A mark is not required to indicate copyright on a photograph. Release – Written notification from the author granting permission to use or copy their original work. Copyrighting Your Appraisals It is not necessary to notify the U.S. Copyright Office to ensure copyright of your document. Here is a sample copyright statement you may use in your appraisals: "The analyses, opinions, and conclusions contained in this document are copyrighted and are the proprietary products of ------- Appraisal Company. Any unauthorized use, reproduction, or transfer of this document or any of its contents, in any medium, is strictly prohibited. Offenders will be prosecuted to the fullest extent allowed by copyright laws." Copywriting? Be Careful! If you register the appraisal with the U.S. Copyright Office it includes public disclosure of the appraisal report. Such disclosure of the assignment results would constitute a breach of the Confidentiality section of the ETHICS RULE of USPAP, unless the appraiser had prior approval from the client for such registration. Reference: 2012/2013 USPAP, FAQ # 70 Some days are like that! LOST DOG ---- NOTICE Dog has three legs, blind in left eye, missing right ear, tail broken, recently castrated…. Answers to the name of "LUCKY" Some Days are like that! I want to thank you, Almighty One, for being close to me, so far this day. With your help I haven't been impatient, lost my temper, been grumpy, judgmental, or envious of anyone….. BUT I WILL BE GETTING OUT OF BED IN A MINUTE, And I think I will really need your help then. Amen Some Days are like that! I was put on this Earth to accomplish a certain number of things. Right now, I am so far behind, I will never die. It's all in how you look at it.. My wife and I were sitting at a table at my high school reunion, and I kept staring at a drunken lady sitting at a nearby table swigging her drink. My wife asked if I knew her and I replied "yes, she was my old girl friend and when we split up many years ago, she took to drinking and I hear she hasn't been sober since." "My God" my wife replied, "Who would think a person could go on celebrating that long." I guess there are really two ways to look at everything.. Definition of an Appraiser An Appraiser is a person who passes as an exacting technical expert on the basis of being able to turnout, with prolific fortitude, infinite strings of incomprehensible estimates calculated with micrometric precision, from vague assumptions and debatable figures taken from inconclusive data, obtained with recording devices of problematical accuracy by uninformed persons of doubtful reliability and questionable mentality !! The Appraisal Process Define the Appraisal Problem Determine the "Scope of Work" Collect and Analyze the Data Determine "Highest and Best Use" Value the Property using the Applicable Approaches to Value Reconcile the Value Indicators Prepare the Appraisal Report Mysteries of life Why is it that when someone tells you there are over a billion stars in the universe, you believe them, but if they tell you there is wet paint somewhere, you have to touch it to make sure? "Stressed" spelled backward is "Desserts." "Growing old is mandatory. Growing wise is optional." If a man is talking in the forest, and no woman is there to hear him, is he still wrong? "HUD" spelled backwards is _______? Terrific Trivia Venus is the only planet that rotates clockwise. 90 % of Canada's population live within 100 miles of the U.S. border. The biggest dog on record was an Old English mastiff that weighed 343 pounds. He was 8 feet, 3 inches from nose to tail. In 1997, the fully restored USS Constitution (aka "Old Ironsides") celebrated her 200th birthday by setting sail for the first time in 116 years. The ZIP in ZIP code stands for: "Zoning Improvement Plan". More Trivia Many years ago in Scotland, a new game was invented. It was ruled "Gentlemen Only …. Ladies Forbidden" Thus the word GOLF entered the English Language. The average number of people airborne over the U.S. in any given hour is 61,000. Bulletproof vests, fire escapes, windshield wipers, and laser printers were all invented by women Sign of the times Do you want to speak to the "man" in charge, or to the "woman" who knows what's going on ? Arguing with an appraiser is like wrestling with a pig in the mud. After a while you realize that the pig enjoys it !! Some Dodd – Frank Act Requirements Mandates customary and reasonable fees for appraisers (Now assigned to the BCFP) Designations can be a factor in deciding which appraiser gets the assignment ASC will assume the duties of the IVPI (which never did materialize) to handle appraiser independence violations Federal Regulators update Appraiser Independence Standards for FRTs Some Dodd – Frank Act Requirements Appraisers now pay $40 per year to support the ASC as of Jan. 2012 ASC to give grants to State Appraisal Boards to assist in enforcement actions Independent AMCs required to be registered in the state in which they operate Independent AMCs subject to peer review by State Appraisal Boards Some Dodd-Frank Act Requirements Lenders are not required to have Licensed or Certified Appraisers to review appraisals Lenders must send the appraisal reports to the state enforcement agency if there are significant errors or evidence of Ethics or other USPAP violations. Update : Customary and Reasonable Fees As of July 1, 2011, the Federal Reserve Board handed this issue to the Bureau of Consumer Financial Protection (BCFP). The authority for this new consumer protection bureau was part of the DoddFrank Bill. The BCFP officially began operations on June 21, 2011. Credit Card Theft? Report it, and request that a fraud alert be placed on your credit file. Experian Equifax Trans Union 888-397-3742 800-525-6285 800-680-7289 Want a Copy of your Credit Report? Federal law allows you to receive a free copy of your credit report once a year from the big three credit reporting companies. To order: From Experian, Equifax, and Trans Union, call: 1-877-322-8228 Internet site: www.annualcreditreport.com Mail address: Annual Credit Report Request Service, POB # 105283, Atlanta, GA 30348-5281 Someone using your Social Security Number ? Report the unauthorized use to the Social Security Administration's Fraud Hot Line at: 1-800-269-0271 Other Items of Interest "Don't call me anymore" (for home and cell phones) "Stop the credit card junk mail" Call: 1-888-382-1222 Internet: www.donotcall.gov (good for 5 years) Call: 1-800-353-0809 Call: 1-888-567-8688 (For all three credit bureaus) "Stop giving, sharing or selling my personal financial data" Inform the sender of your "OPT-OUT" decision. You only have to do this once. This is included with their privacy notice which you must receive annually. Did You Know? The hottest air temperature ever recorded was in Africa (Libya) at +136.4 degrees Fahrenheit on September 13,1922. The coldest temperature ever recorded was in Antarctica at -129.6 degrees Fahrenheit. Manholes are round so their covers can't accidentally fall inside when tipped on their ends. Did You Know? The Declaration of Independence has 25 signatures affixed to the document. Chicago's Sears Tower has its own zip code. According to his business card, Al Capone bought and sold used furniture. Mount Everest grows at a rate of 4 millimeters per year. Our necessities never equal our wants. Did You Know? The State of Michigan has more than 3,000 miles of shoreline, which is longer than the entire Eastern seaboard from Maine to Florida. "Uncle Tom's Cabin" was the first American novel (published in 1852) to sell more than one million copies. The world's smallest church is located in Oneida, New York. It is only 3 ½' x 6'. Richard Nixon was the first U.S. president to visit China (February, 1972). Did You Know? The sentence: "The quick brown fox jumps over the lazy dog" uses every letter of the alphabet. The words "racecar", "kayak", and "level" are the same whether they are read left to right or right to left (palindromes). :Stewardesses" is the longest word typed with only the left hand and "lollipop" with your right hand. Maine is the only state whose name is just one syllable. And Finally, Did you Know? Henry Ford failed in business 5 times before he started the Ford Motor Company. Michael Jordan was cut from his high school basket ball team. Warren Buffett failed to qualify for entrance to Harvard's Business school. "Success is the process of becoming who you already are." There are NO Generic Appraisals!! Judgment phase of the Appraisal: Identify the problem Determine the appropriate Scope of Work that will produce credible assignment results for the intended use Execution phase of the Appraisal: Perform the Scope of Work Disclose the Scope of Work actually performed, in the Appraisal report, so the client and intended users are not mislead Reference AO-22, Scope of Work -- Relevant Characteristics The Scope of Work requires the appraiser to identify the relevant characteristics of the property being appraised. Relevant characteristics consist of: Legal Characteristics – i.e.: zoning, Leasehold and/or leased fee interests, etc. Economic Characteristics – i.e.: the market Physical Characteristics – i.e.: remodeling, renovations, stigmas, etc. Reference AO-23, Relevant Characteristics -- McKissock Appraisal School You want Snacks? You're lucky you got coffee! Story with a Moral ! Charles Schwab was president of the worlds largest steel company. He died a pauper! Edward Hobson was the president of the largest gas company. He went insane! Richard Whitney was the president of the New York Stock Exchange. He was released from prison to die at home! Story with a Moral ! Arthur Cooger was the greatest wheat speculator. He died abroad, penniless! The president of the Bank of International Settlement committed suicide! Gene Sarazen won the U.S. Open and was golf's PGA champion. He played golf until he was 92, and died in 1995 at the age of 95. He was financially secure at the time of his death. The Moral: Work less, Take the Time to Enjoy your life ! Your Success Motivators Think about these things as you look into the mirror every morning: You were born to become the best that you can be. You were born to achieve things that make a real contribution to life and happiness— including your own. You know your success potentials. Work with them. Your Success Motivators You can create a new dynamic personality through your own personal enrichment program. You are a winner, not a loser. You can achieve your goals not by stepping on other people but by using your own talents to ensure success. Take one day at a time, but you need to get started today. Avoiding Lawsuits Do Not accept an assignment beyond your experience. If you get into trouble with the assignment, get help quickly. Document everything you do and keep a complete work file. Good records make for a good defense if it comes to litigation. Avoiding Lawsuits Photograph all properties appraised. Take pictures of any deficiencies noted. Take additional pictures, for your files, to show condition at time of appraisal. Establish sound office procedures to eliminate those clerical errors. Proof all reports before they leave the office. Avoiding Lawsuits Never assume a structure's defects will be noted by other professionals. Note all property deficiencies in your report and their effect on value / marketability. Use disclaimers if you find a situation outside your area of expertise. Identify, disclose, and disclaim. Avoiding Lawsuits Do not assume or take the client's / owner's word on anything. You will be held accountable. Remember, you are supposed to be the expert. Verify and document the extent of the verification. Do not give casual advice or opinions. You are the professional and you will be held to that higher standard of care. Avoiding Lawsuits Plan the appraisal. Carefully determine the appropriate SCOPE OF WORK to satisfy the assignment with a credible opinion of value. Know who your client is. Know who the intended users are. Know exactly what the intended use is for your appraisal. Avoiding Lawsuits You hold yourself out to the public as an appraiser. You are the expert! You will be held to a higher degree of care and competency by your peers, the public, and the courts. Do not criticize work accomplished by another appraiser without having all of the facts. Avoiding Lawsuits Stay "up-to-date" on current trends, rules and regulations, and supplemental standards. Not being "up-to-date" is not an excuse. It is a violation of the COMPETENCY RULE, found in the Uniform Standards of Professional Appraisal Practice (USPAP). Who is Suing Appraisers? Four of the parties that are suing the most appraisers: LSF6 Mercury REO Investments Lehman Brothers Holdings, Inc Heritage Pacific Financial Federal Deposit Insurance Corporation Note: The FDIC has also begun targeting commercial appraisers with lawsuits and subpoenas Reference: Appraisal Management Liability Webinar FDIC getting "Aggressive" The FDIC has begun to get very aggressive with appraisers that supplied appraisals to banks that the FDIC has closed, merged, or taken over in the past 4 years. FDIC is suing the appraisers for monetary damages in connection with discrepancies found in their appraisal reports. FDIC Sues More Appraisers "In the two weeks leading up to Thanksgiving Day, the FDIC sued 32 individual residential appraisers and several mortgage brokers/bankers in 12 separate lawsuits. -- in the last three years, the FDIC has sued a total of 151 appraisers and appraisal firms in AZ, CA, GA, IL, MD, MI, MN, NV, NY, SC, and UT. In addition, the FDIC has identified approximately 350 additional appraisers as having delivered negligent appraisals to the two AMCs it has sued." Reference: Appraisal Today Newsletter, Dec. 2012 FHFA Sues UBS to Recover GSE Mortgage Losses UBS Americas Inc., several of its subsidiaries, and former executive officers were sued on July 27, 2012 in U.S. District court for the Southern District of New York. The Federal Housing Finance Agency (FHFA) brought suit charging violations of securities laws in the sale of private label residential mortgage-backed securities to Freddie Mac and Fannie Mae. * IRS Requires Qualified Appraisers * (Part 1) Congress has approved the Pension Reform Act. As part of this Act, the IRS requires that appraisals for Estate Taxes and for non-cash Charitable Contributions (conservation and historical preservation easements) be performed by qualified appraisers, such as those who have earned a designation from a professional appraisal organization (AI, NAIFA, ASA, etc.) and who meet other requirements. Ref: Appraisal News On Line, 10-3-07 * IRS Requires Qualified Appraisers * (Part 2) The I.R.S. is now requiring appraisals to be in conformance with generally accepted appraisal standards (USPAP) and the Federal Appraisal Standards of Practice (better known as the Yellow Book) when applicable. They now have the authority to impose accuracy-related penalties on taxpayers and appraisers who provide substantial or gross miscalculations. Ref: Appraisal News On Line, 10-3-07 IRS: Tax Preparer Definition Includes Appraisers The Internal Revenue Service has issued a memorandum reminding appraisers engaged in the preparation of gift or estate tax returns that they are subject to civil and criminal penalties for conduct the Internal Revenue Service considers problematic. IRS & Appraisers, (conti.) As stipulated in the Pension Protection Act of 2006 under Internal Revenue Code Section § 6695 (and the subsequently added Section § 6695A), appraisers who submit substantial or gross valuations are subject to monetary penalties if they knew, or reasonably should have known, that the appraisal would be used in a tax return or refund claim. Reference: Appraiser News on-line, Appraisal Institute, 9-30-09 Bizarre Quotes "As of tomorrow, employees will only be able to access the building using individual security cards. Photos will be taken next Wednesday and employees will receive their cards in two weeks" –Microsoft Corp. "E-Mail should not be used to pass on information or data. It should be used for company business." –Electric Boat Corp. Bizarre Quotes Memo from senior management saying: "This is to inform you that a memo will be issued today regarding the subject mentioned above." – Microsoft Corp. Quote from a manager: "Teamwork is a lot of people doing what I say." –Citrix Corp. More Bizarre Quotes The lawyer asked the witness: " Now Doctor, isn't it true that when a person dies in his sleep, he doesn't know about it until the next morning?" In a divorce case the judge announced: "I have decided to give your wife $775 a week." The exhusband replied: "That sounds fair, your Honor. I'll try to send her a few bucks myself." More Bizarre Quotes A church bulletin announcing an upcoming marriage: "So ends a friendship that began in their school days." A church bulletin announced their annual tithing campaign with the slogan: "I upped my pledge … up yours." Bizarre Quotes "Doing it right is no excuse for not meeting the schedule. No one will believe you solved this problem in one day! We've been working on it for months. Now, go act busy for a few weeks and I'll let you know when its time tell them." – Mining & Manufacturing Div./3M Corp. Bizarre Misprints "Arthur Adams was seriously injured Saturday afternoon when he came into contact with a high voltage wife." "For Sale. Lovely rosewood piano. Owner going abroad with beautiful twisted legs." "At the fair they will exhibiting a full range of shoes for girls with low cut fancy uppers." Bizarre Misprints "Wrap poison bottles in sandpaper and fasten with scotch tape or a rubber band. If there are children in the house, lock them in a small box." "A heavy pall of lust covered the upper two-thirds of Texas last night and was expected to drift south-east over the rest of the state by morning." How About This! The French customs inspector admonished the elderly 83 year old man for not having his passport ready for inspection saying that all Americans have to show their passports upon arrival in France. The elderly American quietly replied " When I came ashore at Omaha Beach on D-Day in 1944 to help liberate this country, I couldn't find any Frenchmen to show it to." These comments were made in 1959 "I'll tell you one thing, if things keep going the way they are, it's going to be impossible to buy a week's groceries for $20." "If cigarettes keep going up in price, I'm going to quit. A quarter a pack is ridiculous." "Did you hear the post office is thinking about charging a dime just to mail a letter." "Have you seen the new cars coming out next year? It won't be long before $2,000 will only buy a used one." How many types of Appraisals are there? There are still two types of Appraisals: Good Appraisals and Bad Appraisals. Definitions Rural - Suburban - Urban If you stand naked on the front porch and the neighbors can't see you …… it's Rural. If you stand naked on the front porch and the neighbors call the cops on you….. it's Suburban. If you stand naked on the front porch and the neighbors ignore you….. it's Urban. Only for those, who can relate. 1983: Long hair Hoping for a BMW Going to a new, hip joint. Rolling Stones Disco Passing the driver's test. KEG Acid Rock TODAY: Longing for hair Hoping for a BM Receiving a new hip joint. Kidney Stones Costco Passing the Vision test. EKG Acid Reflux The Year was 1913 !! Average life expectancy was 47 years. Only 14 percent of homes had bathtubs. Only 8 percent of homes had a telephone. The maximum speed limit in most cities was 10 mph. There were only 8,000 cars and only 144 miles of paved roads. The average wage was 22 cents per hour. Census Tract Info & Maps For Census Tract information and statistics, using the street address: http://www.ffiec.gov/geocode/default.htm For Census Tract maps: http://ftp2.census.gov/plmap/pl-trt/ click on state, then county. Source: www.appraisersforum.com Are You Being Sued? Game Plan: 1) Send the summons and complaint to your Insurance carrier immediately. 2) Retain an attorney, if you do not have E & O Insurance. 3) Collect and organize your work file. Make a copy and give to your attorney. 4) Do not discuss the lawsuit with other involved parties or their counsel. Are You Being Sued? Game Plan: 5) Be prompt, be courteous, be thorough, and be truthful with your insurance representative or with your attorney. 6) Become a partner with your attorney. The attorney works for you, not the other way around. Are You Being Sued? Game Plan: 7) Provide the following in a timely fashion: Provide a detailed narrative including everything about your role in the case. Insist on an early face-to–face meeting with your attorney and have all pertinent documents available. Actively participate in both the discovery and settlement (if applicable) phases of the litigation. Are You Being Sued? Game Plan: Dealing with a lawsuit can be a very stressful experience. The lawsuit will not simply disappear. It must be resolved in some way. You must take some proactive steps toward resolution. The successful resolution of the suit will allow you to return to your productive business as soon as possible Ken Guilfoyle Senior Certified National Instructor McKissock L.P. P.O.B 1673 Warren, PA 16365 - 3158 Phone: Fax: 800-328-2008 814-723-7289 On the Web: www.mckissock.com E-Mail: [email protected] Who Files Complaints Against Appraisers ? 50% are initiated by lenders, lender regulators, staff appraiser reviewers, etc. 20% are initiated by borrowers and homeowners. 20% are initiated by other appraisers. 10% fall into the others category. Who Sues Appraisers ? 50% to 70% of appraiser law suits are from third parties – sellers, buyers, borrowers, other party in a divorce, etc. 30% are from lenders trying to recover monies from a mortgage in default. Why do Appraisers get Sued? Main reasons for lawsuits: Appraiser's failure to detect and disclose obvious defects. Errors in Square Footage. Don't rely on public records or someone else's appraisal. Over or under valuation of the property When do Appraisers get Sued? Average of 18 to 48 months after the appraisal. If there is a buyer defect, within a couple of months. As long as 10 years for lender claims. There is no statute of limitations for fraud. Reference: Appraisal Today Newsletter Why Are Appraisers Disciplined ? 1) Failing to inspect the subject property and/or the comparable sales. 2) Failure to seek the professional assistance of another individual. 3) Falsely claiming a personal inspection of the subject property. 4) Forgery of another appraiser's signature and/or license number. 5) Use of an expired license. Why Are Appraisers Disciplined ? 6) Failure to analyze prior sales, pending sales, and/or listings of the subject property. 7) Use of a suspended license. 8) Falsified Appraisal Log for upgrade certification. 9) Failure to adequately disclose the scope of work performed in appraisal assignments. 10) Commission of errors in the sales comparison approach to value. Why Are Appraisers Disciplined ? 11) Appraiser lacked either geographical or technical competency. 12) Misrepresentation of relevant property characteristics, i.e. neighborhood factors, site, improvements, stigmas, etc. 13) Commission of errors in the cost approach and income approach to value. 14) Reliance on boiler-plate comments that are not relevant to the assignment. 15) Omission of relevant information from the appraisal report. Do You need E&O Insurance? An appraiser is being sued for not reporting that insulation in a home was vermiculite and contained asbestos. Trial date is set. Estimated cost to defend the appraiser is $35,000. E&O Insurance cost is $1,400 (+/-) per year. It you appraise long enough there is a good chance that you will be sued. Without E&O Insurance, you have no protection at all. 10 Tips to Reduce Your E & O Exposure Keep good work files in anticipation of litigation Establish sound office procedures to reduce errors Do not accept assignments outside your geographical area or your area of expertise. Clarify your Scope of Work as effectively as possible. 10 Tips to Reduce Your E & O Exposure Verify information given to you by others. Use specifically drafted additional language to limit your liability and clarify your Scope of Work. Take interior and exterior photographs of all properties appraised. Limit the distribution of your report whenever possible. 10 Tips to Reduce Your E & O Exposure Before hiring a new appraiser, employee or independent contractor, thoroughly investigate their qualifications and experience. Affiliate with a nationally recognized appraisal association and keep up to date with new developments in your profession. REMEMBER WHEN--? "2012/20013 USPAP" Remember these 24 pages ! Pg 7: Ethics Rule Pg 10: Record Keeping Rule Pg 11: Competency Rule Pg 13: Scope of Work Rule Pg 15: Jurisdictional Exception Rule Pg 16 thru 21: Standard 1, Developing a Real Property Appraisal Pg 22 thru 30: Standard 2, Reporting a Real Property Appraisal Sample Statements Required by 2012-2013 USPAP I have not provided any services in any capacity to the subject property within the past three years. (Ref: SR 2-3) The exposure time for the subject property is similar to the comparable or competitive properties as identified in the appraisal report. ( Ref: SR 2-2b(v) Comment) Exposure Time Sample (conti.) The following statement is actually taken from the pre-2005 Fannie/Freddie certification pages (1004B): "Unless noted otherwise in the report, exposure time is the same as the marketing time indicated in the Neighborhood Section." Keep in mind that exposure time is looking back, while marketing time is looking forward. "2012/2013 USPAP-on-Line" Looking to paste something from USPAP into your report? Here is the link to "USPAP-on-Line" from the Appraisal Foundation… http://www.uspap.org/2012USPAP/eUSPA P2012.htm 2014-2015 USPAP Courses The Appraisal Foundation (TAF) contracted with McKissock, L.P. to write the 2014-2015 USPAP 7 Hour Update and the 15 Hour USPAP "on-line" courses, subject to oversight by TAF TAF will write both of the "in-class" 2014-2015 USPAP courses. Appraising Vacant Land Licensed or Certified Residential Real Property Appraisers may appraise vacant land that is zoned for residential 1 to 4 unit use or the highest and best (HBU) is residential 1 to 4 unit use. All other vacant land must be appraised by a Certified General Real Property Appraiser Reference: TAF's "The Real Property Appraiser Qualification Criteria" booklet, effective January 1, 2008 Can You Support "Effective Age"? Go to: www.mckissock.com Click on: "Help" Click on: "Student Download" You will find it there How Do You Extract "Forecasting" & "Quick Sale" Adjustments Go to: www.mckissock.com Click on: "Help" Click on: "Student Download" You will find it there. Fannie Mae, Freddie Mac, & FHA Set Loan Limits for 2013 The Maximum Loan amounts for 2013 (announced 12-1-12) are $417,000. for one-unit properties except for certain "permanent" highcost areas in the Northeast and Southern California. Maximum loan amounts will be reduced to $625,000.00 in those areas Congress continued FHA's Maximum Loan amount for one unit properties to $417,000. for most areas in the U.S. as of January 1,2013 Reference: Appraisal institute Newsletter, & www.efanniemae.com, Loan limits page What is a Billion? A billion seconds ago, it was 1974. A billion minutes ago, Jesus was alive. A billion hours ago, our ancestors were living in the stone age. A billion days ago, no one walked on the earth on two feet. A billion dollars ago, was only 6 hours and 20 minutes at the rate our government spends our money. What is a Trillion? If you paid someone a dollar a second to reach $1 Trillion, it would take 31,700 years. If someone paid you $100 every second, you would be a millionaire in one day with more than $8.6 million. To amass $1 Trillion, you would have to receive the money day and night for 317 years. $1 Trillion would be equal to a stack of $1,000 bills 67 miles high. Reference: Washington Post article, "Thinking about the Unthinkable" Is This Really True ? What four positive numbers have a sum that is equal to their product? Meaning: a+b+c+d=axbxcxd Reference: Parade magazine, March, 2008 Answer: 1, 1, 2, and 4. What Do You Really See ? What Do You Really see? ATTENTION: FHA Appraisers HUD has moved its HUDClips website for notices, handbooks, mortgagee letters, FAQs, federal register notices, Q & A information, and other important documents to: http://www.hud.gov/offices/adm/hudclips/ index.cfm What Do You Really See? Do You Know This About COMPETENCY ? If you stay even – You loose !! Continuing Education is a MUST. What Do You Really See? Can You Recognize a "STROKE" Victim? Neurologists say they can reverse the effects of a STROKE, if treated within three hours. Bystanders can recognize a STROKE by asking three simple questions: Ask the individual to SMILE. Ask him or her to RAISE BOTH ARMS. Ask the person to SPEAK A SIMPLE SENTENCE (coherently). If he or she has trouble with any of these tasks, call 9-1-1 immediately and describe the symptoms to the dispatcher. Stress Management Technique Close your eyes. Picture yourself near a stream. Birds are softly chirping in the cool air. No one but you knows your secret place. You are in total seclusion from the hectic pace called the world. The soothing sound of a gentle waterfall fills the air with a cascade of serenity. The water is crystal clear. You can easily make out the face of the person you're holding underwater. See! You're smiling already. Heard at Zoning Hearings Interpretation Do You Understand SAND GROUND Feet Feet Feet Feet Feet Feet __MIND__ MATTER LE VEL __WEAR__ LONG Dice Dice __MAN__ BOARD R R OAD A D T O W N He's / Himself __STAND__ I R / E/A/ D CYCLE CYCLE CYCLE ____0____ BA MBA PHD Sand Box Man Overboard I Understand Six Feet Underground Cross Roads Read Between the Lines Mind Over Matter Long Underwear Downtown Tri Cycle Un Level Two Dice He's Beside Himself 3 Degrees Below Zero __MIND__ MATTER LE VEL Interpretation SAND GROUND Feet Feet Feet Feet Feet Feet __WEAR__ LONG Dice Dice __MAN__ BOARD R R OAD A D T O W N He's / Himself __STAND__ I R / E/A/ D CYCLE CYCLE CYCLE ____0____ BA MBA PHD Our Bundle of Rights GUSHER Use It Sell It Give It Away Rights In Real Estate Refuse to Do anything Hire It Or Lease It Enter It Or Easement All Possible Land Uses Physically Possible Legal Financially Feasible Maximally Productive Highest and Best Use Mortgage Loan Fraud "Mortgage Fraud is rampant. It's a crisis in the making." This is according to the FBI. Mortgage fraud is committed for one of two reasons To obtain a property To gain a profit What should you remember? When appraisers go bad, they need to be prosecuted. Don't send your problems down the street. From the FDIC ! The FDIC Vice-Chairperson recently testified at a Congressional SubCommittee Hearing (March 2012): There are 4,375 Mortgage Fraud investigations now in process by the FDIC. The FDIC expects to open more than 9,000 investigations in the next 3 years. The investigations are targeting Mortgage Brokers, Attorneys, Agents, Appraisers, Title Companies, and Insurance Companies. Reference: Appraisal Scoop News Letter FDIC filing Lawsuits - The FDIC is now filing MBS complaints and lawsuits against mortgage originators, banks, and other MBS investors. FDIC now using retrospective AVM models to claim that appraisals at issue were flawed and failed to comply with USPAP Reference: Appraisal today news letter, April 10, 2012 We Saw This Coming !! Financial institutions filed 19,934 suspicious activity reports involving mortgage loan fraud in the three months ended Sept. 30,2012, up from 16,567 in the same period of 2011. Nearly 62% of the filings in the quarter involved suspicious appraisal activity that began at least four years ago. Reference: Financial Crimes Enforcement Network. Appraiser's Mortgage Fraud Settled via Consent Orders Two Real Property Appraisers have settled their mortgage fraud claims with consent orders issued by a U.S. District Judge. Both appraisers will pay $100,000 in penalties and are barred from performing appraisals for federally-insured loans. They were charged with conspiring to commit mortgage fraud in connection with the sale of residential properties. Reference: Mortgage Fraud blog From "Valuation Review" Newsletter The Property Valuation Fraud Index has increased 46 % from the same period one year ago. Analysts expect the Index to continue to rise over the next three years as ARM loans reset throughout 2012 & 2013. Comment: Do not let your E & O Insurance lapse. Reference: Valuation Review Newsletter, 11-09-12 Additional Thoughts….?? • Rather fail with honor than succeed by fraud. (by: Socrates) • Crime pays or there would not be any crime. (by: G. Gordon Liddy) • The worst day at work is better than the best day in prison. (by: Unknown) • I didn't do it. Nobody saw me do it. Can't prove anything. (by: Bart Simpson) Types of Fraud Fraud for Property/Housing Perpetrator is borrower Involves single loan: Income & property value may be altered Down payment may be borrowed Debt may be undisclosed Borrower seeks housing and/or cash from loan Borrower intends to repay Accounts for approx. 20% of all Mortgage Fraud Types of Fraud Fraud for Profit Often involves industry professionals Multiple loan transactions and/or institutions Includes many (Gross) misrepresentations Participants frequently paid for participation Borrowers sometime unaware of scheme Accounts for approx. 80% of all Mortgage Fraud Typical Fraud (For Profit) Schemes Backward Application Air Loans Silent Second Nominee Loans Property "Flips" Inflated Appraisals Equity Skimming Foreclosure Schemes Another Study about Mortgage Fraud Base-Point Analytics has found that misrepresentations on loan applications have accounted for up to 70 % of mortgage early payment defaults (EPDs) Analyses of more than 16,000 loans revealed misrepresentations in the loan file that later led to default. The misrepresentations included: Income inflated by more than 500 % Overvalued property appraisals by 100 % or more Fictitious employers, and falsified tax records Reference: http://home.businesswire.com 2-16-12 Modified Loans Re-default at High Rates A report issued by the Office of the Comptroller of the Currency and the Office of Thrift Supervision has found that 55 % of loans modified in the first quarter of 2011 were 30 or more days delinquent after six months. The findings were based on loan-by-loan data in a standardized format for 35 million first-lien mortgages. Reference: Appraiser News Mortgage Loan Fraud COMMON MISREPRESENTATIONS INCOME & EMPLOYMENT 1. Income is overstated. 2. Length of employment is overstated. 3. Fictitious employment is reported. 4. Employment is backstopped by co-conspirators. OCCUPANCY 1. Borrower intends to use property for rental income. 2. Borrower is purchasing property for another party. 3. Appraisals almost always list the property as owner occupied. Mortgage Loan Fraud COMMON MISREPRESENTATIONS ASSETS AND COLLATERAL 1. Assets are overstated. 2. Collateral is overstated. 3. Collateral is nonexistent (forged promissory notes and Land Contracts). 4. Collateral is stolen or counterfeit (fraudulent money orders). DEBT & CREDIT 1. Borrower's debts are not fully disclosed. 2. Borrower's credit history is not fully disclosed or is altered. 3. Borrower assumes the SSAN# of another person. Mortgage Loan Fraud COMMON MISREPRESENTATIONS DOWN PAYMENT 1. Down Payment does not exist. 2. Down Payment is concealed in a nonexistent Land Contract. 3. Down Payment is borrowed and disguised with a fraudulent gift letter. PROPERTY VALUE Property value is inflated to: 1. Increase the sales value to make up for no down payment.. 2. Generate cash proceeds in fraud for profit. Money Lost to Mortgage Fraud? The actual amount of money lost to mortgage fraud each year is unknown. No central organization collects mortgage fraud loss data. Federal Bureau of Investigation Supervisory Special Agent: Ronda Heilig, Financial Institution Fraud Unit Work Phone: (202) 324-8634 How to avoid getting snared in a Fraud Scheme Always check prior sales and prior listings Verify comps given to you by others – especially if you are told that you don't need to do so If your research shows numerous sales of similar properties in the same neighborhood involving the same parties, You may be dealing with a fraud scheme When you are the only one that can be trusted with this assignment How to avoid getting snared in a Fraud Scheme, conti: Don't accept assignments outside your geographic area of expertise Use caution when asked for that assignment to be treated as a "rush" job Be most professional when working with friends The con man is that individual that speaks well, is so nice, exudes trust, and has your confidence Most of all, be careful who you trust Sound-bites from the "Valuation Fraud Symposium" Sponsored by The Appraisal Foundation (TAF) Sound-bites "If you have never fired a client, you're probably not doing a very good job as an appraiser", --- Danny Wiley, Past ASB board Chairperson Sound-bites "We (appraisers) are the most regulated profession in the Real Estate Industry. AMCs and Mortgage Brokers should have the same level of regulation", --- Ken Guilfoyle, McKissock Appraisal School Instructor Sound-bites "Fannie Mae refers unacceptable appraisal reports to state licensing or regulatory boards for any action they deem appropriate", ---Mark Simpson, Director of Residential Property Standards for Freddie Mac Sound-bites "Negligence and incompetence are a slippery slope that put many appraisers at risk for falling into fraudulent behavior", --- Rachel Dollar, Symposium panelist Sound-bites "Lenders look closely at the appraisal's transfer history, the use of less recent or less proximate comparable sales, a sales price that is higher than the listed price, unreasonable adjustments, and the use of all or multiple non-MLS sales as comps", --- Douglas Vincent, Bank of America Sound-bites "Appraisers need to be especially vigilant against identity fraud, someone using your signature without your knowledge", --John Arterberry, Former Executive Deputy Chief, U.S. Department of Justice 10 Ways to Differentiate your Business: By Doug Smith, IFAS Manners & Courtesy: These things account for your repeat business or referral business Constantly upgrade your knowledge about the appraisal environment Appropriate training for you and your staff Always look your best. Look professional with your business cards, stationary, etc. 10 Ways, continued: Make service delivery a priority: Speed does count in today's market Zero Defects: Review the report for mistakes and spelling before it leaves your office Be a reliable provider: Make adjustments to your schedule to satisfy your client 10 Ways, continued: Build your identity: Remember that dress and appearance really do count Project a community image: Participate in community affairs Promote Feedback: Listen to what your customers are saying about your company and your services. Your reputation as a professional is everything! Some Good Advice !! Before getting into your car, look around you and look into your car. If you are parked next to a big van, enter your car from the passenger side. As soon as you get into your car, lock the doors and leave. Your elbow is the strongest point on your body. If you are close enough to use it, DO SO ! Facts about Pittsburgh, PA These are some of the things that were first introduced in Pittsburgh: First First First First First First First Ferris Wheel, 1892-1893 Banana Split, 1904 Baseball Stadium, 1909 BINGO Game, 1920's Polio Vaccine, 1953 Pull-Tab cans, 1962 Mr. Yuk Sticker, 1971 U.S. Facts and More Harry S. Truman was the only president in this century who didn't have a college education. The first gold rush in the United States happened in Dahlonega, Georgia 1828. The only food that does not spoil is Honey General Ulysses S. Grant's real name was Hiram Maine is the only state in the lower 48 that touches only one other state. FREE Information from WEB-SITES www.census.gov All kinds of free information here including population, housing, income, etc. www.zillow.com Individual property information and trend analyses. Registration required but it is free. www.city-data.com Free information about individual communities. www.neighborhoodscout.com Free information about individual communities. www.USA.Kaspersky.com select "Free Antivirus Scan" at the top of the page. www.building-cost.net Cost approach information, Replacement Costs for residential improvements. www.Online-Home-Values.com Check home values, any U.S. address Continued Education? I'd rather be -- If you think education is expensive ---- try ignorance !! - Ken Guilfoyle


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(Detroit) Jazz Cafe welcomes back the Grammy Nominated Latin Percussionist, Chembo Corniel for two hot and spicy nights that pay homage to two very important pioneers who helped shape the music of their respective genres: Thelonius Monk and Mongo Santamaria on, Friday, January 31 and Saturday, February 01, 2014 in the cozy confines of the Jazz Cafe- at 8pm & 10pm
Chembo brings a phenomenal ensemble featuring current masters of Afro Cuban: Ivan Renta: tenor & soprano sax, Elio Villafranca: piano, Carlo De Rosa: acoustic bass, and Vince Cherico: drums.
Born in Manhattan and Raised in Brooklyn, NY, Corniel learned his percussive craft from master drummers Tommy López, Patato, Little Ray Romero, and Cachete Maldonado. After a long stint in the 1980s with Bobby Rodriguez & La Compañia, Corniel performed with virtually everyone, including Tito Puente, Machito, Hilton Ruiz, Willie Colón, Toshiko Akiyoshi, Chucho Valdes, Grady Tate, Buddy Montgomery, Jane Bunnett, Angela Bofill, Dave Valentin and Larry Harlow.
Chembo honed his skills at The Harbor Conservatory for the Performing Arts in New York, and also the prestigious La Escuela Nacional de Arte in Havana Cuba under the direction of the legendary Chucho Valdes. Corniel currently teaches percussion at SUNY Purchase Conservatory of Music
Corniel blends the rich textures and kinetic energy of Latin Jazz with rich Afro-Caribbean traditions to create a breathtaking hybrid of Jazz, Latin and Caribbean flavors that still touch on Post Bop and even funk.
Last seen at Jazz Café in 201, after garnering a 2010 Grammy Nomination for Best Latin Jazz Album, "Things I Wanted To Do", Chembo is also a first call percussionist for many front line band leaders in many genres throughout the Jazz idiom.
His other credits include an appearance on The Bill Cosby Show, and a recurring soundtrack gig for the hugely popular Nickelodeon children's show, Dora The Explorer.
Corniel formed hi own Latin Hybrid band, "Grupo Chaworo" and also started his record company "Chemboro Records, Inc." in 2004.
Jazz Café @
Music Hall Center for the Performing Arts
350 Madison Avenue
Detroit, MI 48226

subset: commoncrawl


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The 7 Harvest Space Elevators were responsible for transporting cargo and humans between the orbital platform Tiara and Harvest's capital city of Utgard. The elevator system, along with the planet's shipping operations were maintained by the AI Sif.[1][2]
During the First Battle of Harvest, the elevator system was used to evacuate the remaining population after the Covenant began glassing the planet. After the Tiara was destroyed, the Space Elevators collapsed to the surface and wrapped themselves around the planet. The strands were later buried by Mack to protect them from the Covenant's plasma bombardment.
- Harvest having 7 Space Elevators is yet another seven reference.
Sources Edit
- ↑ Halo: Contact Harvest, page 76
- ↑ Halo: The Essential Visual Guide: page 91 - Harvest


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Or at least, so top-heavy that every time the wind blows just a little bit, it falls over and loses a chunk of itself.
This was its state after our last round of storms. The plastic pot it was in couldn't hold up its girth. We can all identify with that, can't we, girls? No judgments here!
First let's get some supplies together. Some cactus soil, new pot or two, and good gloves. I really only used the gloves initially, then it just became easier to use my bare hands. You would probably be fine with just standard thin gardening gloves, but I'm Ms. Cautious so I started with the big kid gloves. For the soil, you may be smarter than me and know how to mix up soil that is cactus-friendly. I took the easy route. Finally I got my little bottle of cactus fertalizer (in that small box) to use at the end.
I took the whole plant out and carefully separated it. Did you know aloe just multiplies into more aloe plants? I didn't either! Then I did my best to trim off the dead stuff. Do this carefully, kids, as too much force easily breaks the stem. Not that I know from experience or anything.
I of course didn't take any pictures of the segments all laid out, because that would have made sense. But you can see in the picture above an example of a trimmed up individual plant... and you can see all of its octopus buddies on the ground around it.
Then it was re-potting time. I initially thought I'd primarily use the azalea pot in the picture above, but quickly realized that some of my plants were already too tall for that. I ended up reusing the plastic pot, putting smaller plants in the azalea pot, and reserved some to bring to a friend at work. She gave me a strawberry plant in that blue pot, so I figured I should put something worthwhile in it when I return it!
Oh, and you see that step-child on the left? Yeah... it got too much water (was in the way of a sprinkler) a year or so ago, and...
Yeah. It hasn't spread, hasn't got any worse, and the cactus still seems to be alive. If anyone has any tips, shout out!
I also tried to plant some of the transplants in a bed that has a few other plants in it and my cat otherwise thinks is her litter box. We'll see how that one goes, as the soil there is somewhat crappy. I'll update you on those cactus babies later.
While I was at it, I planted some new herbs. My recent success with some mint got me all cocky.
|Hardy and Foxtail Rosemary
|Two basil plants and some sage
Then I dead-headed my roses...
And snapped a picture of one whiney cat, cramming her face through the gate, who did not appreciate being kept in the yard while I worked on the roses.
I'll post an update once I've seen how the aloe fares in its new home(s)!


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I always say yes but I'm sure you can guess that it really slows the process down.
I make a point of letting them know how much I appreciate their skills. They usually get bored really quick anyway and then it's back to playing.
Call me Le Vain Copy Cat Cookies
from conversationswithacupcake. blogspot.com
1 c. butter
1 1/2 c. brown sugar
2 eggs
Cream all above ingredients until fluff-a-licious.
Top with:
2 1/2 c. flour
1 Tbsp. baking powder
1 tsp. baking soda
pinch of salt
1 1/2 tsp. vanilla
1 Tbsp. Cornstarch
Mix all ingredients with an electric beater until incorporated and a thick, creamy dough is created. Then mix in:
2 cups of {nearly} crushed walnuts
3 cups of {good quality, small} semi-sweet chocolate chips
Beat again with electric mixer. Pour onto countertop and knead dough to completely mix dough (this tip comes from the Levain gals themselves.)
Gently pull lemon-sized hunks of dough. Keep the dough loose and air. Place mounds on cookie sheets.
Bake 390 degrees (read: just above 375, not quite 400)for 10-12 minutes, or until the tips of the cookies have turned light brown.
Remove from cookie sheet. Cool for just a moment.


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Additional details have emerged suggesting that Friday morning's stabbing death in the Edmonds Westgate QFC parking lot was the result of a drug deal gone bad.
The Snohomish County Medical Examiner has identified the dead man as 23-year-old Colin S. Dahlquist of Bainbridge Island. Reports from the police and the Snohomish County Prosecutor suggest Dahlquist was in Edmonds to complete a drug deal when his two accomplices tried to steal his money. In the ensuing altercation, Dahlquist was fatally stabbed in the chest.
The Prosecutor' Office has identified the suspects as a 21-year-old Kirkland man and 28-year-old woman from Bellevue. Documents filed with the court during a probable cause hearing on Monday provided additional details of events surrounding the crime.
According to these documents, at 5:55 am on Friday, March 28, Edmonds police units were dispatched to the Westgate QFC parking lot following reports of a fight involving three persons appearing to be in their early 20s. A subsequent call came in while police were en route reporting one person on the pavement and apparently hurt, and that two others had driven from the scene in an older model silver car.
Arriving at the scene, police found Dahlquist on the ground with a stab wound to his upper chest. He was pronounced dead at the scene.
Other police units stopped a silver 1990 Chrysler New Yorker occupied by the two suspects a few blocks away. The woman was taken into custody. The man, bleeding from injuries to his face and possibly to his lower body, was transported to Edmonds/Swedish for evaluation. He was later returned to the police station.
At the station, both suspects were interviewed and admitted meeting Dahlquist earlier at the Edmonds ferry terminal, purportedly to take him to another location to purchase drugs. Instead, they drove him to the Westgate QFC, where they planned to steal his cash and leave him behind in the parking lot.
Both stated that in the resulting altercation, Dahlquist produced a large knife, and that during the fight the knife penetrated his own chest. The Kirkland man, bleeding from wounds sustained in the fight, jumped back in the car and fled the scene with his female accomplice behind the wheel. The couple sped away, leaving Dahlquist bleeding to death in the parking lot.
Money was later recovered from the suspects. Both remain in custody. The prosecutor has until 5 p.m. Wednesday to file charges in Superior Court.
— By Larry Vogel


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Kokoro ga Sakebitagatterunda is not a well known anime movie despite it being ranked #264 on MAL. I picked it because the synopsis looked interesting. It is the story of a girl who said something that ended up breaking her family apart and she paid the price for it by sealing away her words. We all do this, say something we didn't mean to or speak a careless or ignorant word and hurt others. Most of the time the damage we do can be fixed by a simple apology. Sometimes the damage can never be undone. This movie takes it a step further and talks about how heavy words can be and how they are intentional or not doesn't always matter. I will be spoiling pretty much the whole movie in this post. So please watch the movie first if you want to avoid the spoilers.
When Jun was a young child, she liked the castle built on top of the mountain and went to take a peak at it often. She saw her father come out of the castle with another lady one day and excitedly rushed home to tell her mother how her father was a prince. She didn't know that the castle was a love hotel and her father was cheating on her mother. Her parents broke up and her father had to leave the town. What could be worse than being responsible for her parent's break up? It is being told that it was all her fault.
When I read about this movie first and about how Jun believed it was her fault, I thought that it was natural for a young girl to not understand that she wasn't to blame. I thought she believed she was to blame since she didn't know any better. I never expected her father to actually make it all her fault. We see very little of his character but that one sentence speaks volumes about his character. He was the one cheating on his wife and if they broke up, it is his fault, not Jun's. It doesn't matter if he has some excuse for his actions. It could be that it was the first time he cheated on his wife and felt awful about it. He might have decided never to do that again and take good care of his family. But none of that matters. If he didn't want to leave, he could have pleaded with his wife and if it didn't work, he should have just walked away. Putting the blame on a child and making her feel responsible is the worst thing he could have done to her.
Jun believed it was all her fault and blamed herself. A magical egg appeared in front of her and put a zipper on her mouth, sealing away her words so that she can never hurt anyone else. Thus, the little chatter box of a girl grew up to be the weird kid who never talked, didn't have any friends and pretty much became a problem child.
Jun was forced to be a committee member with Takumi Sakagami and two others by her teacher. Their team decided to do a musical. Jun can't speak and her stomach starts hurting if she tried to talk. It is supposedly the egg's curse. She realized that she was fine when she sang and wanted to do a musical, to get a chance to say the words she really wanted to say but never had a chance to.
She mistakenly thinks that Takumi knew about the egg's curse and ends up telling the whole story to him. He doesn't buy it but he lets it slide, assuming it was a weird tick of hers. What I like about his character is that while he doesn't believe in the egg's curse, he does believe that Jun get's a stomachache when she tries to speak. He even called an ambulance for her when she collapsed after trying to talk.
It is easy to say that Jun's pain is all inside her head and that it isn't real, but Jun was probably in real pain whenever she tried to talk. It is called psychosomatic pain and is a real psychological problem. She probably did feel excruciating pain, enough to have to go to a hospital. It didn't matter that the egg wasn't real. It didn't matter that the curse wasn't real, but Jun did believe it, enough to be in real pain whenever she tried to break the curse, a curse she cast upon herself.
Takumi decides to help Jun with the musical and Jun writes a story based on her own life for the musical. It is the story of a girl who wanted to attend the ball in the castle. She later came to know that the ball was actually an execution site for criminals. They were cursed to dance until they died. The girl wanted to attend the ball anyway and decided to commit various crimes, just so that she would be sent to the castle as punishment. The girl hurt a lot of people with her words and eventually lost her voice. It is a rather interesting story in itself. After all, would people be normally willing to throw their lives away just to attend a ball? Takumi provided the lyrics and music for her story.
Jun managed to change a little after meeting Takumi and she formed an idea in her head that Takumi is her prince in shining armor and would save her. She learned that Takumi wasn't in love with her the day before the musical. She ran away and abandoned her class, forcing them to find a new heroine on the day of the musical.
This was the worst thing she could have done to her classmates. She convinced them to do a musical and then ran away, making them clean up her mess on the day of the musical. Did she really expect the musical to go well? After all, you can't just find a replacement for the protagonist in the last minute. That was a selfish and stupid move.
Takumi pleaded with his classmates to let him go search for her. He wanted her to be in the play.
The exchange between Jun and Takumi was really interesting. You see, the egg's curse is a story that young Jun made up. As she grew up, she understood that it was all a made-up story. She knew it and yet she desperately wanted to believe in the existence of the egg and the curse, because if she didn't blame her words for tearing her family apart, she would have had to blame herself and she couldn't manage to do that. She probably thought it was stupid and yet she went around telling everyone how she was cursed by an egg and can't speak.
You could say that this movie has a happy ending, considering how Jun manages to get her ability to speak back and even appears in the musical.
Now to do some serious complaining. I dislike how parents have little to no role to play in a kid's life in most anime. Jun's mom loved her and she should have known that Jun was blaming herself. She should have tried to talk to her and tell her it wasn't her fault. She should have tried to heal the child. But no, she gets angry at Jun for not talking and snaps at her. If something like this happened in real life, do you think the child would be waiting for Takumi to magically appear and save her? No, her parents would have already done everything in their power to make her feel better, not blame her and drive her into a corner.
I do understand that the writer's want to make the story exciting and having adults take care of all the problems might look boring but that it how it works in real life and it would have been just fine to portray that in the anime.
Kokoro ga Sakebitagatterunda is a normal movie. I won't call it a masterpiece but it is not a bad movie either. Give it a try if you feel like watching it.
See you next time ^^/