North Star Chapter Appraisers,
The North Star Chapter Membership needs to be aware of an effort being led by Governor Doug Burgum on behalf of the State of North Dakota, the North Dakota Department of Financial Institutions, and the North Dakota Bankers Association, for a temporary waiver to be enacted in North Dakota. The Appraisal Institute is actively pursuing efforts to refute this request and also provide additional context as to why it isn’t needed.
To bring members up to speed, the proposal effectively bypasses the requirement for appraisals in North Dakota that are below $1M for business/farm and $500k for residential, citing unreasonable delays, excessive costs and a scarcity in rural locations as a justification for this. The request was issued August 1st, 2018. Just days ago, on August 13th, a letter from the Appraisal Institute was issued to the Appraisal Subcommittee (ASC) urging strong opposition.
As many have observed, our profession is under attack with these unfolding events. We are obviously concerned with possible distortion of facts or misinformation being disseminated to the ASC. Furthermore, the temporary waiver request does NOT adhere to ASC requirements and publishes personally identifiable information (i.e. names, email addresses, turnaround times, etc.), which is privileged and confidential information.
Finally, North Star Membership should be aware the Appraisal Sub Committee is scheduled to meet on this topic August 29, 2018. All members with feedback, information, or evidence to refute the claims published in the August 1st proposal are strongly encouraged to contact the following individuals:
Bill Garber, Appraisal Institute Director of Government and External Relations
John Russell, Senior Director of Government Relations, American Society of Appraisers
Temporary Waiver Request, 12 CFR Part 1102, Subpart A
The North Dakota Department of Financial Institutions (“NDDFI”) and the North Dakota Bankers Association (“NDBA”) request the Appraisal Subcommittee (“ASC”) to exercise its discretionary authority to initiate a temporary waiver proceeding for a determination under subsection 1102.2(a) of Subpart A to 12 CFR Part 1102, Appraiser Regulation, of scarcity of licensed or certified appraisers leading to significant delays in obtaining appraisals in federally related transaction throughout the state of North Dakota. Specifically, Applicants request 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 or $500,000 for a residential real estate transaction.
Justin Reed, MAI
Appraisal Institute-North Star Chapter