We’re nearing the halfway point in what has proven to be a whirlwind year. Early in 2019, Vice-President Janis Bonura, SRA, AI-RRS and I attended the Appraisal Institute’s Region IX conference in Orlando, Florida. At that conference and, in fact, at most of the national meetings and Region IX conference calls over the last few years, two of the primary topics of discussion continued to be evaluations and retaining AI membership.
On the subject of evaluations, Louisiana House Bill 340 was passed by the legislature in May, signed by the Governor on May 30th, and has an effective date of August 1, 2019. This bill attempts to clarify the circumstances under which a licensed real estate appraiser in the state can perform an evaluation. You’ll find a summary of this new law by clicking on this link; https://www.legis.la.gov/legis/ViewDocument.aspx?d=1128851.
While the law is fairly short on details, there are two things to take away from it;
It states that “nothing in present law prohibits a licensed real estate appraiser from performing an evaluation of property for a federally insured depository institution if the appraisal is conducted pursuant to applicable law, regulations, the guidelines for evaluations” while at the same time saying that;
An evaluation by a licensed appraiser “shall comply with…the "Uniform Standards of Professional Appraisal Practice".
I found it interesting that the word “evaluation” is used interchangeably with “appraisal”.
While it’s not specifically spelled out, some see this bill as allowing lending institutions to conduct evaluations in-house (as many have been doing) with an added twist that they’ll be able to charge the borrower for that service.
You may find a little more clarity on evaluations in general at this link on the Appraisal Institute’s website: https://www.appraisalinstitute.org/advocacy/evaluations/
On the subject of membership, the Louisiana Chapter has had some very positive growth this year. You’ll find a complete list of the new candidates and members’ names and the respective designations obtained or sought on the last page of this newsletter. To summarize that list; we’ve added six new candidates (4 MAI, 2 SRA), two new affiliates, and five new designated members (3 MAI, 1 SRA, 1 AI-GRS). Congratulations to all of our new designees and a warm welcome to our new candidates and affiliates.
In other Chapter news, we hosted a very successful class in New Orleans in April titled “Simple Tools for Credible Results”. This class, taught by Jim Atwood, SRA, proved so popular that it is being offered a second time on August 23rd in Baton Rouge. Look for upcoming registration notifications.
In the Fall of this year, our Chapter is on the schedule to be moved into the Appraisal Institute’s “Chapter Financial Management and Administration Policy” or “CFMAP”. All chapters will eventually participate in this program, which essentially will transfer much of our local bookkeeping responsibilities to AI National. More to come on this as we get closer to the date.
Last, but far from least, the Louisiana Chapter partnered with the Louisiana Real Estate Appraisers Coalition (LAREAC) in their sponsorship of a bill that benefits all appraisers in the state.
With the exception of fraud, Senate Bill 191 greatly reduces the prescriptive period in which an appraiser can be sued for errors, omissions, or neglect in an appraisal. Prior to this bill, appraisers were essentially the only professionals in the state with virtually no prescriptive period following completion of an assignment.
The new law states that no real estate appraiser or AMC can be sued after a period of one year following discovery of the error, omission, etc. Additionally, regardless of when the error/omission is discovered, the prescriptive period for any action against the appraiser or AMC is three years following the completion of the assignment.
This law will go into effect on January 1, 2020. The Louisiana Chapter owes a great debt of gratitude to former Chapter President Joe Mier, SRA, AI-RRS, for his tireless efforts in getting this legislation introduced, through the legislature, and to its successful conclusion on the Governor’s desk. Thanks Joe!
As always, please feel free to contact me or any of the other Chapter officers with your questions or concerns.
Kevin Lemoine, MAI
2019 Louisiana Chapter President