NMP - September 2016 - 94

MBA's Mortgage Action Alliance A Message From MAA Chairman Fowler Williams he Mortgage Action Alliance (MAA) is a voluntary, nonpartisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association (MBA). As the House and Senate return from congressional recess for the final push to Election Day, mortgage-related regulatory developments continue, including the implementation of the Telephone Consumer Protection Act and actions by the U.S. Department of Housing & Urban Development (HUD) related to downpayment assistance and Home Equity Conversion Mortgages (HECMs). In response to a push by the Mortgage Bankers Association (MBA), Federal Housing Finance Agency (FHFA) Director Mel Watt announced that the new Uniform Residential Loan Application would not ask borrowers for their language preference-a key win for lenders. On the legislative front, President Obama signed into law HR 3700, a HUD reform bill that requires FHA to streamline its condominium guidelines. With election season fully underway, you can use the new feature on MBA's Advocacy Action Center, the Elections Page to easily look up the federal and state candidates running for office in your area along with information about the election, and even register to vote. Visit Action.MBA.org to visit the Elections Page and try it out yourself! You can also connect with MAA on social media. Check out MAA's Facebook page. Stay updated on current events in Washington, D.C. and your state capital. We will post the latest political news, as well as MAA "Calls to Action." You can also join MAA's group on LinkedIn to connect with fellow advocates and expand your network! The Mortgage Action Alliance recently sent out a letter asking MAA members about any personal relationships that they have with their elected officials. These relationships can be incredibly valuable to our advocacy efforts on behalf of the industry. Please consider joining MAA and helping us leverage your personal relationships to advocate on behalf of our industry. The industry's ability to navigate and manage these policy challenges is critical to our efforts in serving consumers around the nation. Visit Action.MBA.org to learn more. Getting involved with MAA allows industry professionals to play an active role in how laws and regulations that affect the industry and consumers are created and carried out by lobbying and building relationships with policymakers. It only takes a moment to get started, and you do not have to be a member of MBA to enroll. The larger the group, the louder the voice! If you would like to run an MAA campaign, please contact Peter Shapiro at (202) 557-2933 or e-mail PShapiro@MBA.org to receive an Enrollment Campaign Kit and learn more about how you can engage your colleagues and employees in MBA's advocacy programs. Real estate finance industry professionals who wish to join or learn more about MAA can do so at Action.MBA.org. If you have any questions regarding MBA's advocacy programs, please contact MBA's Director of Political Affairs Annie Gawkowski by phone at (202) 557-2816 or e-mail AGawkowski@MBA.org. T Fowler Williams is chairman of the Mortgage Bankers Association's Mortgage Action Alliance. He is also president of Atlanta, Ga.-based Crescent Mortgage. He may be reached by phone at (800) 851-0263 or e-mail FWilliams@CrescentMortgage.net. appraisals, avms, bpos drives by, assessing the value from the outside. l The interior BPO: The broker gains access to the interior of the property and performs an assessment. BPOs are useful particularly in cases of national mortgage lenders who may not have a familiar valuation professional near the property. Lenders also may use them to help price real estate owned assets. Unnecessary risk The Appraisal Institute believes that BPOs should not be used as the basis of lending decisions. This practice creates unnecessary risks for consumers and lenders, and its use for any lending transaction should be prohibited: l BPOs contain an inherent conflict of interest: The primary role of the real estate agent performing the BPO is to facilitate a sale of real property, not to objectively develop an opinion of value. l BPOs are a largely unregulated service: BPOs and the agents performing them often are not subject to effective federal and state oversight. While real estate agents performing BPOs usually face no legal ramifications for noncredible and unreliable price opinions, banks using largely unregulated valuation services are exposed to compliance and audit risks. Institutions relying on potentially non-credible and unreliable BPOs for real estate valuation usually have no effective legal recourse in the event of fraudulent price opinions. l BPOs undermine the banking system: The use of BPOs for real estate valuation undermines the fiduciary responsibility of banks to government agencies, insurance companies, borrowers, investors and stockholders to obtain market value of distressed assets. Appraisal Institute professionals frequently report distressed assets sold well below their actual market value. l BPOs increase risk: Bank continued from page 55 regulatory agencies are increasing consumer and lender risk by permitting regulated financial institutions to use BPOs for transactions involving loans of $250,000 or less. This high threshold results in most mortgage loans in the U.S., and virtually all loans in thousands of low to moderate income communities in America, potentially being valued by unregulated individuals with a financial stake in the sale of the property. The banking agencies are mistaken to conclude that BPOs are sufficient to ensure the soundness of the deposit insurance funds. Appraisers can provide a range of services that serve the same purpose as a BPO. Data pulls, desktop appraisals and AVMassisted appraisals are all services that can be provided by independent and objective appraisers in accordance with enforceable standards. Confidence to lend Regardless of the sophistication of the software or the skill of the real estate broker, AVMs and BPOs cannot reach the credibility and reliability of an appraisal conducted by a qualified, competent appraiser. These professionals have the training and expertise to produce clear and concise valuations that are unbiased and impartial, and that are based on physical examinations, statistics, facts and other relevant information. In the case of Designated Members of the Appraisal Institute, the designations MAI, SRPA, SRA, AIGRS and AI-RRS represent advanced knowledge, and a commitment to strict professional ethics and standards that assist in giving financial institutions the confidence to lend. AMVs and BPOs can be useful tools in real estate lending and serve specific functions. Neither, however, is comparable to real estate appraisals in developing values for lending decisions. As a long-term result, professionally prepared appraisals provide lenders with the confidence to lend, in any type of market. Scott Robinson, MAI, SRA, AI-GRS, is the 2016 president of the Appraisal Institute, the nation's largest professional association of real estate appraisers, with nearly 20,000 professionals in almost 60 countries throughout the world. http://Action.MBA.org http://Action.MBA.org http://Action.MBA.org

Table of Contents for the Digital Edition of NMP - September 2016

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