Real Estate Law Community Real Estate Appraisals

Williams Mullen: Proposed Rules Published on Dodd-Frank Requirements for Appraisals for Higher-Risk Mortgage Loans

WilliamsMullen@placeholder.com (Williams Mullen) — Wed, 03 Oct 2012 07:24:00 -0400

BY: EDMUND D. HARLLEE

On Wednesday, September 5, 2012, the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, National Credit Union Administration, Bureau of Consumer Financial Protection (the "Bureau") and Federal Housing Finance Agency (collectively, the "Agencies") issued proposed rules and a request for public comment on changes to Regulation Z (Truth in Lending) to implement the requirements of the Dodd-Frank Wall Street Reform

Appraiser Independence —Observations on the CFPB’s Interim Final Rule (And What the Heck Do They Do With Those Appraiser Regulatory Fees Anyway?)

dscardilli@aol.com (Dennis A. Scardilli, Esq., MAI) — Fri, 17 Feb 2012 11:51:00 -0400

By Dennis Scardilli, Esq., MAI, SCGREA1

On December 22, 2011, the federal Consumer Financial Protection Bureau (the "Bureau" or "CFPB") issued a "Restatement of Federal Consumer Financial Law Regulations" under the Truth in Lending Act (TILA). Rulemaking authority for TILA had previously been under the Board of Governors of the Federal

Judge Allows Homeowner's Negligence / Fraud Claims Against Appraiser To Proceed

anonymous@localhost.com (Liz Barrett) — Mon, 25 Apr 2011 09:21:00 -0400

INDIANAPOLIS - An Indiana federal judge on March 14 granted a motion to dismiss a homeowner's breach of contract claim and a claim for violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act against an appraisal company and its employee but found that the homeowner sufficiently pleaded claims of negligence and fraud in relation to an appraisal report that she claimed failed to note major defects with the property, including mold (Susan M. Desimone v. Quicken Loans Inc., et al., No. 1:09-cv-01421, S.D. Ind.; 2011 U.S. Dist. LEXIS 26772). Full story on lexis.com

Keller and Heckman LLP: Fifth Circuit Addresses Lanham Act's Prudential Standing in Real-Estate Appraisers' Lawsuit

Keller.Heckman@placeholder.com (Keller and Heckman LLP) — Mon, 28 Feb 2011 16:14:00 -0400

15-Second Advertising Law Alert: 5th Circuit Explores "Outer Limits" of Lanham Act Standing

By Richard J. Leighton

Strange facts can make strange law. The Fifth Circuit yesterday issued a strange tutorial on Lanham Act prudential standing.*

BACKGROUND

Plaintiff real estate appraisers complain about two of Defendant's electronic platforms used by lenders of mortgage money.

One is AppraisalPort, which lenders use to electronically order appraisals from Plaintiffs and receive them from those appraisers when done. To participate, Plaintiffs must

Appraisals, Assessments and Zestimates, Oh My!

VetsteinLawGroup@placeholder.com (Vetstein Law Group, P.C. ) — Mon, 31 Jan 2011 08:28:00 -0400

What Is Your Massachusetts Home Really Worth?

By Rich Vetstein

OK folks, you want to know what your house is worth? Stop obsessing over your town assessment and online estimates. At the end of the day, your house is worth what someone is willing to pay for it.

But while you follow the sale prices of your neighbor's house and e-mail me to ask what your house is worth (sight unseen), I'll explain to you that it is neither an exact science, a mathematical equation, or a guesstimate

Write on! Let your voice be heard on new appraiser rules that affect your law practice!

dscardilli@aol.com (Dennis A. Scardilli, Esq., MAI) — Wed, 03 Nov 2010 17:41:00 -0400

To: Attorneys whose practice uses real estate appraisals

Issue: Your comments are due on Federal Reserve Board Interim Rules on Appraiser Independence by Friday, December 17, 2010

Conclusion: This affects your practice!

It's reading and comment time in the Real Estate Appraisal Law world. Government-related entities have released several documents of great interest to lawyers whose practice involves valuation of real property. These include the Federal Reserve Board's Interim Final Rule on Appraiser Independence-the subject of this blawg.

(I plan to discuss in future blawgs: FannieMae and FreddieMac's revised guidelines on that same issue, FHA's updated FAQS including valuation issues, and the Appraisal Standards Board's proposed requirements that will affect your ability to obtain your client's appraiser's

Exciting Time in Real Estate Appraisal Law

dscardilli@aol.com (Dennis A. Scardilli, Esq., MAI) — Tue, 26 Oct 2010 12:30:00 -0400

Does your law practice have anything to do with the value of real estate? For example, real estate closings, land use approvals and development (strike all that: I meant workouts, foreclosure defense and mortgage modifications). Maybe you practice family law and need appraisals for property settlements. Or, you are a tax lawyer and represent clients before the IRS, or federal or state tax courts? Insurance, M&A lawyers, gather 'round. Are you a proud tree-hugging environmental lawyer, an energy company attorney, a construction mediator or do you represent a union looking at sustainable development as a job creator? Who you gonna' call to determine the legal issues in the valuation of projects like Las Vegas City Center, the largest LEED project in the world? If your law practice has anything at all to do with real property value, you will want to pay attention to what is happening right now in real estate appraisal law. It's big.

Real Cases in Real Estate by Andrea Lee Negroni, Esq. – Oct. 25th Update: Overappraising and Underappraising

AndreaNegroni@placeholder.com (Andrea Lee Negroni) — Tue, 26 Oct 2010 12:28:00 -0400

Real Cases in Real Estate is a weekly update on real estate law, with legal principles illustrated and explained by lawsuits from around the country. The topics are wide-ranging for appeal to a broad spectrum of readers including lawyers, homeowners, investors and the general public. Andrea Lee Negroni, a Washington DC attorney and legal writer with 25 years of experience in financial services and mortgage law, contributes the case summaries.

Followers of Real Cases in Real Estate will learn and be entertained by lawsuits involving nuisance, trespass, zoning violations, deed restrictions, title insurance, public utilities, mechanics liens, construction defects, adverse possession, foreclosure and eviction, divorce and marital property rights, tenants' rights, and more. Real Cases in Real Estate uncovers the unpredictable, amusing, and sometimes outrageous disputes between next-door neighbors, contractors and homeowners, condo

Federal Reserve Issues Interim Final Rule Regarding Real Estate Appraisals

martindalehub@hotmail.com (Martindale.com) — Mon, 18 Oct 2010 12:25:00 -0400

Today, the Federal Reserve issued an interim final rule and request for public comment regarding real estate appraisals, implementing Section 1472 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The interim rule is intended to protect Read More...

Tax Court rejects charitable easement deductions because taxpayer lacked a qualified appraisal of the easement to substantiate deductions: Lord v. Comm'r (Sept. 8, 2010)

LNEPEL@placeholder.com (LexisNexis Estate and Elder Law Center Staff) — Tue, 21 Sep 2010 12:22:00 -0400

Taxpayer granted a deed-of-conservation easement relating to his property to an organization exempt from Federal income taxation pursuant to section 501(c)(3). Page Appraisal Co. produced an appraisal report stating the easement contribution's estimated market value.

Taxpayer claimed a deduction for a noncash charitable contribution of more than $5,000. However, the Tax Commissioner contended that the taxpayer failed to obtain a qualified appraisal to substantiate the easement contribution pursuant to Income Tax Regs section 1.170A-13(c), 26 CFR 1.170A-13 and was therefore

Stepped Up Basis At Death—How High?

rspiro@earthlink.net (Randy Spiro) — Wed, 01 Sep 2010 12:16:00 -0400

When the owner of an asset dies, in most cases the cost or basis of the asset for income tax purposes is increased to its fair market value. When the asset is later sold, there is no capital gain on the amount of the step up. Stated differently, capital gain is only assessed on the appreciation occurring after the owner's death.

Assets such as real estate and businesses need to be appraised by an appraiser to substantiate the date of death value, but it does not follow that a higher appraisal is always better. In many estate plans, assets are divided into revocable and irrevocable trusts when one spouse dies. One purpose of this is to protect the first-spouse-to-die's estate tax exemption (the amount the first-spouse-to-die can give away without estate tax).

Typically, the first-spouse-to-die's exemption is protected by placing that portion into an irrevocable trust as to which the Surviving Spouse receives

Property Tax Gaffe: Purchase Price Equated With Market Value

joe.calvanico@gt.com (Joseph J. Calvanico) — Tue, 05 Jan 2010 11:44:00 -0400

Three recent Supreme Court of Ohio property tax decisions purport to examine the propriety of using the purchase price of a particular property as prima facie evidence of market value for property tax assessment purposes. In each case, the Court decided that the purchase price was equivalent to the property's market value, despite accepted appraisal practice standards, GAAP pronouncements, and actual legal contractual arrangements.

The Honorable Chief Justice Thomas Moyer wrote the majority opinion for the Ohio Supreme Court decision in AEI Net Lease Income & Growth Fund v. Erie County Bd. of Revision, 119 Ohio St. 3d 563 (Ohio 2008) [enhanced version available to lexis.com subscribers / Eden Prairie Mall LLC v. County of Hennepin, 2009 Minn. Tax LEXIS 22 (Minn. T.C. Oct. 13, 2009).

In the instant case, the subject of the appeal was the main mall building and one of the anchor

James M. Wilson Jr. Discusses the Recent Disclosures By Fannie Mae and Freddie Mac of Losses Attributable to Sub-Prime Mortgages, and Allegations of Collusion to Inflate Appraisals

James.M.Wilson@placeholder.com (James M. Wilson, Jr.) — Wed, 06 Feb 2008 11:26:00 -0400

It now appears that the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") are subject to the same kind of bruising losses afflicting other large financial institutions as a result of sub-prime mortgage-related investments. James M. Wilson discusses the effect of that risk exposure, and of the alleged involvement of Fannie Mae and Freddie Mac in the artificial inflation of home appraisal values, on the housing market's near-term future. Mr. Wilson writes that "the recent disclosures, investigations and lawsuits are all too familiar to Fannie Mae and Freddie Mac investors and have dampened expectations that the GSEs could bailout the suffering housing market."

Subscribers can access the complete