At the beginning of August last year, the Appraisal Subcommittee (ASC) received a letter for a temporary waiver request from North Dakota for the entire state for a period of five years. This came from the Governor, the Commissioner of the North Dakota Department of Financial Institutions, and the President and CEO of the North Dakota Bankers Association. This letter details a request for the ASC to initiate a temporary waiver of requirements for federally related real estate mortgage loan transactions for which a bank or credit union is the mortgagee. And, for which the principal balance, secured by real estate within North Dakota, does not exceed $1 million for a business or farm loan, and $500,000 for a residential real estate transaction. The letter stated that the request is based on the scarcity of licensed or certified appraisers leading to significant delays in obtaining appraisals in federally related transactions throughout the state of North Dakota. If you’d like to read it, click here to view the initial request and subsequent correspondence.
On May 30th of this year, the ASC requested comment on this issue to be received no later than Monday, July 1, 2019. Members of the Collateral Risk Network’s (CRN) Executive Council jumped into action and wrote a comment letter. The primary contributors were Paul Chandler, CEO and Founder of Property Sciences; Kim Perotti, Co-Founder of AXIS Appraisal Management; Joshua Walitt, Compliance Manager for Property Interlink; and Joan Trice, Founder of the CRN. You can click here to view the CRN Comment Letter.
Pay close attention to the outcome of this temporary waiver request. At last check, there were 105 comment letters submitted by organizations and individual appraisers. Preservation of an appraisal being completed by a qualified licensed appraiser protects the lender from making risky loans and the homeowner from paying too much. It’s the cornerstone of a sound housing finance system.
The ASC will hold a Special meeting on Tuesday, July 9th at 10:00 a.m. to consider the Temporary Waiver Request submitted by North Dakota. The Meeting will be held at 1100 New York Avenue NW, Suite 200 East, Room: 2 A/B (Partnership for Public Service) in Washington, DC. If you plan to attend this meeting, please send a request to Meetings@asc.gov.