Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California
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Showing posts with label bill. Show all posts
Showing posts with label bill. Show all posts

Thursday, September 22, 2022

California Appraisal Guidelines for Elimination of Bias per Business Professional Code 11360 a - Mary Cummins

business and professional code, section 11360 a, elimination of bias, real estate appraiser, real estate appraiser, mary cummins, california, bill, discrimination, law, los angeles, marycummins.com,  course, continuing education, basic education, CE

The California Bureau of Real Estate Appraisers (BREA) just released updated guidelines for basic and continuing education educators and course providers so they can update mandatory classes on bias per January 2023 changes. Below is the BREA notice and guidelines. 


This bill was approved in 2011 before the recent false narrative of the "racist appraiser." It has already been covered and taught in existing courses. I just took the California Laws class and it covered exactly this. The bold portions are new. This is the 2022 change to the code which takes effect January 1, 2023, 


"(a) The director shall adopt regulations governing the process and procedures for renewal of a license or restoration of a license to active status that shall include, but not be limited to, continuing education requirements, which shall be reported on the basis of a four-year continuing education cycle, and, for each licensee renewing on or after January 1, 2023, include at least two hours of elimination of bias training, either individually or as part of a broader course.

(b) An applicant for renewal of a license shall be required to demonstrate the applicant's continuing fitness to hold a license prior to its renewal. Applicants shall also fulfill continuing education requirements established pursuant to this section and shall be required to take a minimum of four hours of federal and California appraisal related statutory and regulatory law every four years.

(c) Beginning January 1, 2023, as part of the continuing education required by this section, a licensee shall complete at least one hour of instruction in cultural competency every four years.

(d) The cost of any educational course required by this section shall not be borne by any client served by a licensee.

(e) For purposes of this section, "cultural competency" means understanding and applying cultural and ethnic data to the process of care that includes, but is not limited to, information on the appropriate treatment of, and provision of care to, the lesbian, gay, bisexual, transgender, and intersex communities, ethnic communities, and religious communities.


This is obviously common sense. Of course you can't legally act in a discriminatory manner against anyone in business and housing. No one should ever do that in any part of their life, business or personal, be it legally mandatory or not.  


"California Bureau of Real Estate Appraisers

The Bureau of Real Estate Appraisers (Bureau) has updated its Course Guidelines for Elimination of Bias that the Bureau sent out on Monday. The Bureau has added the description of the Strategies to overcome implicit bias.

 

The Course Guidelines were developed to maintain a certain level of consistency and uniformity to the course content. The Course and Provider Expectations is to establish a clear guide on course development and delivery.

 

Again, the Bureau hopes this information helps Course Providers to develop the course content.

https://www.brea.ca.gov/pdf/CourseGuidelinesforEliminationofBias.pdf

Elimination of Bias
Course Guidelines

The following are guidelines for the use by course providers in preparing the basic education (BE) and continuing education (CE) on Elimination of Bias to meet the requirements of the California Business and Professional Code Section 11360 (a).

The two courses (at least one hour of Cultural Competency and at least two hours of Elimination of

Bias) are completely different courses, and the course content should be developed as two separate

courses. While the two course can be combined into at least 3 hours of training, the subject matter

for each course must be relevant to that course’s subject and its subtopics. The core time should be

spent on the topic subject matter with some time allocated to how the content applies to the

appraisers and/or appraisal industry.

Elimination of Bias Minimum Requirements

Beginning January 1, 2023, the license renewal will require at least two hours of Elimination of Bias

course required for by Section 11360 (a) must include the following:

a) The importance of the course and why it’s necessary for anyone including appraisers.

b) Impact of biases on consumer and on individual’s life.

c) History of Federal Fair Housing Act.

d) Primary definitions of the types of bias with meaningful examples. At a minimum, the following

definitions should be included in the training:

i) Stereotype: A widely held but fixed and oversimplified image or idea of a particular type of

person or thing. Generally, an often unfair and untrue or only part true belief that many

people have about all people or things with a particular characteristic.

ii) Discrimination: The practice of unfairly treating a person or group of people differently from

other people or groups of people. The ability to recognize the difference between things

that are of good quality and those that are not, or a difference that is understood or

recognized.

iii) Prejudice: An unfair feeling of dislike for a person or group because of race, sex, religion,

etc., or a feeling of like or dislike for someone or something especially when it is not

reasonable or logical, or a pre-judgement towards a person or group.

iv) Racism: poor treatment of or violence against people because of their race; the belief that

some races of people are better than others.

v) Bias: Bias is a human trait resulting from our tendency and need to classify individuals into

categories as we strive to quickly process information and make sense of the world. To a

large extent, these processes occur below the level of consciousness. It is a tendency to

believe that some people, ideas, etc., are better than others that usually results in treating

some people unfairly; a strong interest in something or ability to do something.

vi) Unconscious/implicit bias: Implicit bias involves all of the subconscious feelings,

perceptions, attitudes, and stereotypes that have developed as a result of prior influences

and imprints. It is an automatic positive or negative preference for a group, based on one’s

subconscious thoughts. Implicit bias is unconscious, automatic, and relies on associations

that we form over time. Biases are formed toward groups of people based on what we see

in the media, our background, and experiences. They reflect how we internalize messages

about society rather than our intent.

vii) Conscious/explicit bias: Explicit bias is the traditional conceptualization of bias; individuals

are aware of their prejudices and attitudes toward certain groups. Positive or negative

preferences for a particular group are conscious."

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Monday, March 28, 2022

Significance of Maxine Waters' Bill Fair Appraisal Act 2022 by Mary Cummins Real Estate Appraiser




Maxine Water's bill is about more than discrimination. It's also about the complaint process and changing the appraisal regulatory system. The Bill would remove states as the investigatory authority and turns it over to the federal government. If a complaint is filed, the federal government can ask for 24 months of all the appraiser's appraisals. Even HUD complaints only ask for 12 months. This is clearly huge pressure to meet contract price for the borrower even though we appraisers work for the lender. 

ASC stated that TAF isn't accountable to the public. All proposed changes to Standards and Qualifications are public and open for comment. TAF answers questions from appraisers and others for clarification. They are transparent and available.

Based on the Bill ASC will be given new powers and responsibilities when they have a limited track record. For the past six years ASC was supposed to make a national list of all appraisers giving them a unique number. They have received millions of dollars to help accomplish this task yet have never done it. Some appraisers have licenses in more than one state so you can't just add up all of the state licensees. AMCs pay a fee to ASC for each appraiser on their roster. Some appraisers are on more than one roster. ASC has received millions yet has not compiled the list. It makes no sense to give them even more power and responsibility.

It's important to know how many appraisers there are because of the current arguments stating there are not enough appraisers. Most feel the shortage of appraisers is actually just a shortage of appraisers who are licensed and willing to do appraisals for lending purposes. Many don't do lender work anymore because of all the new legislation and layers of extra work.

ASC has also failed to track the national complaint hotline. Now Waters wants the ASC to be in charge of investigating 24 months of appraisals in complaints. If ASC can't do the former, they clearly can't do the later. The Dodd Frank Act put ASC in charge of developing AVM standards yet ASC has not done this within the last 12 years. There is no reason to give ASC more responsibilities when they can't even handle their current responsibilities. 

Jim Park of ASC stated in congressional testimony last Thursday in front of the US Senate that Appraisers had “…driven up service times and appraisal fees to unacceptable levels….” top of page 3 https://www.banking.senate.gov/imo/media/doc/Park%20Testimony%203-24-22.pdf 

This is false. As an appraiser I received $300 for an appraisal in 1984. 1990 it was $350. It's still just about the same amount over 30 years later. Because of the Dodd Frank Act AMCs were mandated to be the middle man between lenders and appraisers. They raised the fees and now take a huge chunk. The AMC receives about $650-$1,800 and pays the appraiser about $350. The AMCs charge whatever they like then make appraisers bid for the assignment. They take the lowest bid and pocket the rest as profit. Dodd Frank mandated AMCs is the reason why fees are higher today. The fees paid to the appraiser have not kept up with inflation even though the amount of work required today is at least twice as much. 

Mr. Park made a discriminatory, ageist statement when stating old appraisers are hard to teach new information. I'm 55 and I always instantly embrace all new technology. I used one of the first laser measuring devices in the 1980's. I use LiDAR today. I ditched the typewriter and paper forms for computer software before any other appraiser I know. I had one of the first real estate websites on the internet in 1997. I had one of the first digital cameras. I use mobile appraisal software. I've tested the new 3D home interior scanners. I made my own computer program to pull MLS data in 1004 format in the '90's. Appraisers love new technology because it can make our job faster and better. We teach ourselves new tricks. 

HUD themselves are responsible for a shortage in the number of appraisers who can complete mortgage lending appraisals. After passage of the Housing and Economic Recovery Act of 2008 (HERA), the Dept of Housing and Urban Development no longer permitted the “Licensed” category of real estate appraisers to conduct appraisals, instead only the “Certified” category of real estate appraisers could complete appraisals for the FHA Insurance program. Before HERA passed, there were 30,286 Licensed Appraisers. Today, there are only 7,321 Licensed Appraisers, because the majority of lenders moved away from hiring Licensed Appraisers after HERA was passed.

HUD has never released documentation showing the number of alleged discrimination complaints against appraisers. Why is the cause of the lack of transparency? They claim to record every complaint they receive. They even release annual reports. Those annual reports have not noted instances of discriminatory appraisals. Why are they not disclosing discrimination complaints? It is likely because, up until last year, the number of complaints has been too few and likely dismissed. It is reported they have roughly 100 allegations currently, none of which have been resolved in the mandatory 100 days. Why are they holding on to the cases?

I was forced to send in multiple FOIA requests to get the results of investigations which I'm following here on my blog, i.e Austin v Miller in Marin, California; Carlette Duffy in Indianapolis, Indiana, Sanders Horton in Jacksonville, Florida and Cora Robinson in Oakland, California. This is the standard reply to my requests. They state I must get the complainant to sign a notarized statement with their name, date of birth, nation of origin, home address ... stating they agree to the release of the documents and information. Of course they will say no. I've been making FOIA requests for over 25 years and have never had a reply like this ever. Some appraisers and I are now contemplating fundraising to hire an attorney to sue HUD to get the results of the legitimate FOIA requests. In the meantime I appealed the FOIA denials. HUD also is the first agency to ever force me to make multiple initial FOIA requests for the same information. This is unprecedented lack of transparency and a violation of the FOIA. 

The ASC study was actually made by the advocacy group the National Fair Housing Alliance NFHA. They are a private non-profit organization. They were given $250,000 to study the Standards and Qualifications for appraisers. Instead their report is on the appraisal regulatory structure and TAF's authority. The ASC is responsible for monitoring the states and their enforcement procedures. TAF sets the standards and qualifications. Blaming TAF for ASC's failure of enforcement mechanisms makes absolutely no sense. 

No member of the ASB or the AQB was contacted or interviewed for the new Bill. There are errors in the report that Jim Park (ASC) would know are obviously incorrect, yet he let the study be published to support his narrative. The NFHA Advocates who authored the study indicated they had insufficient time to complete extensive research for this study, yet were able to draw conclusions, nonetheless.

All major legislation passed that affects appraisers has had a significant negative consequence to appraisers and the appraiser’s business. The appraiser community has not had a voice at the table to provide expertise about the valuation profession. I contacted every member of the PAVE Task Force asking to be involved, to attend meetings, to receive documents and communications as a Latino woman appraiser with over 35 year of experience. I didn't even get a reply. I was blocked from even being informed about what was happening. I'm now forced to send in another FOIA request just to get public information which should have been released.

While Jim Park was an appraiser he's not actively appraising today. He has no idea what appraisers deal with on a daily basis. Prior to the Dodd Frank legislation, there were appraisers willing to function as supervisors and the trainee/supervisor model was functioning, After Dodd Frank, most appraisers had to shut down their small businesses and become individual single-owner shops. Lenders, after Dodd Frank, largely stopped allowing trainee appraisers to inspect the property without the supervisor present, yet lenders will gladly hire third-party non-appraisers to collect data on the property. The lenders do not allow the trainee model to add value to an appraisers’ work. You cannot blame the appraisers for a system that does not allow a new generation of appraisers to be trained.

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Friday, March 25, 2022

IMPORTANT! Proposed Bill by Maxine Waters titled "Fair Act of 2022" - Meeting March 29, 2022

federal valuation agency,fair act of 2022,real estate appraiser,real estate,bill,financial services,maxine waters,firrea,HUD,mary cummins,US house committee,appraisal,discrimination,
federal valuation agency,fair act of 2022,real estate appraiser,real estate,bill,financial services,maxine waters,firrea,HUD,mary cummins,US house committee,appraisal,discrimination,

Maxine Waters is proposing a new Bill to establish a new Federal agency to oversee appraisers and the appraisal industry. Maxine Waters wants to amend the The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to basically get rid of ASB, AQB, ASC and TAF as we know them replacing them with the new "Federal Valuation Agency." The basic summary is as follows:

"To establish an independent agency to be known as the Federal Valuation Agency and real estate valuation standards and appraiser criteria, including promoting a fair, unbiased, transparent, repeatable valuation process, and for other purposes."

"This Act may be cited as the ‘‘Fair Appraisal and Inequity Reform Act of 2022’’ or the ‘‘FAIR Act of  2022’’. 

"The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 is amended—(1) in section 1110(1) (12 U.S.C. 3339(1)), by striking ‘‘Appraisal Standards Board of the Appraisal Foundation’’ and inserting ‘‘Federal Valuation Agency, by rule’’; and (2) in section 1116 (12 U.S.C. 3345)—(A) in subsection (b), by striking ‘‘ or endorsed by the Appraiser Qualification Board of the Appraisal Foundation’’ and inserting ‘‘, by rule, by the Federal Valuation Agency’’;

This bill is frighteningly reckless and irrational. I can't believe I actually have supported Maxine Waters for so many years. I even fought and protected her against the person who campaigned against her and was viciously attacking her with falsehoods. I actually have been trying to meet with her because she's been posting things about appraisers and the industry which are totally false and bizarre. I spoke with her office twice but they wouldn't set a meeting. I sent an email politely correcting some of the bizarre and false things she said. 

In the documents Maxine Waters repeatedly refers to Latinos as "Latinx." She even refers to "Latinx census." I'm a Latino. Most Latinos don't like being called "Latinx." The word is an English construct for naming "others." It makes no sense relative to Spanish. "Latinx" is not in the census records. This is insulting. Clearly a non-Latino wrote this Bill for Maxine Waters. (Ref. "Many Latinos say 'Latinx" Offends them." Ref. 2021 Gallup Poll 96% Latinos do not like Latinx )

I'll be writing a letter to the Committee and sending it tomorrow. You can write one and email it to FSCDems@mail.house.gov . Use any of this information. Copy/paste. I don't care. I will also be emailing everyone individually on the Committee. I'll post the letter and email addresses tomorrow. This bill is totally crazy. 

Memorandum about meeting "Devalued, Denied, and Disrespected: How Home Appraisal Bias and Discrimination Are Hurting Homeowners and Communities of Color" US House Committee on Financial Services.

https://docs.house.gov/meetings/BA/BA00/20220329/114561/HHRG-117-BA00-20220329-SD002-U2.pdf

My comments on the falsities in this document in order. This was clearly written by someone with a personal agenda who intentionally did not use independent research or any legitimate research for that matter. 

First some real facts. Whites make and have more money than blacks, Latinos. For this reason whites buy and own more expensive homes than blacks, Latinos. People buy what they can afford. For this reason homes owned by whites are worth more than homes owned by blacks, Latinos. This is the actual cause of the wealth gap. It has nothing to do with appraisers and appraisals. If the government wants to close the wealth gap between whites, blacks and Latinos, they need to close the income gap. 

These two statements in the report are true. Currently, the "White homeownership rate is 74.1%, compared to 44.2% for Black families and 48.4% for Latinx families." "White families held 10 times more wealth than Black families and 7 times more than Latinx families in 2016." Waters intentionally doesn't include the cause of these gaps which is the difference in income. White families make almost double at $76,000 and black families only $45,000. When you are only making $45,000 a year there is no disposable income to save to buy a house. You are living hand to mouth. "The disparity is another reason why it's more difficult for Black families to save and build wealth than it is for White households."  https://www.cnn.com/2021/06/01/politics/black-white-racial-wealth-gap/index.html If you can't save money to buy a house, you won't own one. You won't benefit from home appreciation if you don't own a house. If a poorer person does buy a house, it'll be a less expensive home appreciating at the lower rate and amount.

Appraisers do not appraise homes of certain types of people less than other people's homes. Appraising is a math formula. That's how the Automated Valuation Methods (AVMs) function. Appraisers use the same exact formula except we have better data because we actually inspect the subject property, neighborhood and see the sold comparables. AVMs don't see any of the properties. They don't even know if they exist. 

Appraisers don't know the color, race, ethnicity ... of the neighborhood, owners/buyers of sold comparables and most of the time even the owner or buyer of the subject property. We don't have color, race, ethnicity ... info in our databases. We wouldn't use it if we did as it doesn't matter when it comes to home value. Buyers, sellers set market value. Appraisers just report it. 

1. Background

A. Waters mischaracterized a paper written by Andre Perry, i.e. "The Devaluation of Assets in Black Neighborhoods: The Case of Residential Property." This paper is not published or peer reviewed "research." It is a personal paper written by Perry to promote his book by the same title. Perry intentionally chose two very different groups to compare. He compared small extremely different samples of areas with 0-1% black people and over 50% black people. Perry then used Zillow zestimate AVM values. We all know how inaccurate Zillow is based on their recent failures. No appraisers or appraisals were involved in the data. Perry committed major statistical areas in his analysis. He never controlled for location. Everyone knows the three main factors in real estate valuation are LOCATION, LOCATION, LOCATION. Many other grave statistical errors were committed. Perry has never posted his data because he doesn't want anyone to review it. The only thing the paper may show is the fact that whites make and have more money than blacks. This goes back to income equality. "Perry conflates race with socio-economic status. When adjusted for SES, the gaps disappear. (Ref. https://www.aei.org/research-products/report/comments-on-the-pave-report )(Ref. This articles shows other major errors in the paper. "

B. Waters misread a Freddie Mac study i.e. Freddie Mac, Racial and Ethnic Valuation Gaps in Home Purchase Appraisals.  Freddie Mac actually stated "First, our analysis has not yet determined the full root cause of the gap." Danny Wiley of Freddie Mac stated "We have not reached any conclusion for cause of the gaps or correlation." The gap could have many causes such as revitalizing areas and condition. AVMs assume average condition, average everything. Perhaps the homes appraised by appraisers over AVM values were in better condition than average, better than average location, better than average view, upgrades... AVMs do not see the property. They don't know the condition or if it even exists. 

AEI replied to Freddie Mac's study.

https://www.aei.org/research-products/report/aei-housing-center-critique-of-freddie-macs-note-on-racial-and-ethnic-valuation-gaps-in-home-purchase-appraisals/

2. Appraisers: Industry Diversity and Alternative Methodologies

Waters again selectively chooses information. While it's true that most appraisers are white the same is true for the US population as a whole and even real estate agents. The spotlight today is only real estate appraisers because of a very misleading paper promoted by Joe Biden, Marcia Fudge and now Maxine Waters. 

3. Appraisals: Evidence of Racial Home Devaluation

A. Waters again mischaracterizes Perry's paper. This is a false interpretation of the skewed data. "A 2018 study by the Brookings Institute (Andre Perry) found that in the average metropolitan area, homes in neighborhoods where the share of the population is 50% Black are valued at roughly half the price as homes in neighborhoods with no Black residents. Further, the study found that differences in home and neighborhood quality do not fully explain the disparities in property values.23 Specifically, the study found that “homes of similar quality in neighborhoods with similar amenities are worth 23 percent less in majority black neighborhoods, compared to those with very few or no black residents” and “across all majority black neighborhoods, owner-occupied homes are undervalued by $48,000 per home on average, amounting to $156 billion in cumulative losses.”

Perry did not control for location which is the most important factor in home value. This is a case of correlation. Blacks make and have less money than whites so they buy less expensive homes in less expensive areas. The home values came from Zillow. Zillow states their zestimates are not appraisals or home valuations. No home was "undervalued" by any amount. There are no "losses." 

B. Waters misstates the results of the Freddie Mac study. "Freddie Mac in 2021 analyzed what share of appraisers produced a significant Black-White and Latinx-White appraisal gap where homes in Black and Latinx census tracts are valued below the contract price compared to those in White census tracts." As stated above Freddie Mac stated they came to no conclusion for the cause of appraisal gaps. This article explains "appraisal gap." This was a comparison in appraisal gaps between two census tract areas and not different races, colors, ethnicities of the buyers, sellers, owners. 

C. Waters misstates the results of the Fannie Mae study. "Fannie Mae found that White homes in both majority-White and majority-Black neighborhoods were overvalued compared against both AVMs while Black homes in each neighborhood type were devalued." Fannie Mae made it's own proprietary AVM and will not disclose their algorithm. There is no "overvalued" in the study. There is only over or under the AVM. AVMs are not accurate. They only consider the most average home in average condition. They do not include views, upgrades, location in a neighborhood, added amenities... This article explains the problems with AVMs. The most likely cause of the differences is again the income, wealth gap between white, black. Whites have more money and buy more expensive homes. They are most likely buying the more improved, upgraded homes with views in the same neighborhood as blacks. 

D. Waters misstates the results of another study. "Federal Housing Finance Agency (FHFA) conducted a key word search for millions of appraisals for transactions backed by Fannie Mae and Freddie Mac and found that individual appraisers included overt references to race, ethnicity, and other prohibited bases under federal fair lending laws in their appraisal reports." From the actual report, "From millions of appraisals submitted annually, a keyword search resulted in thousands of potential race-related flags." That is 1,000/1,000,000 = .001% or 1/1,000th of 1%. This is a minuscule amount. While there should be no such references they did not say or show the references affected the value. One of the alleged race-related words was "gentrification" which the government itself and Maxine Waters use all the time. The correct term is "revitalization" which is a normal real estate cycle.

4. Industry Regulation

Appraisers and the appraisal industry are controlled by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 about 33 years. ASC is a federal government agency which govern and control the industry. TAF is authorized by Congress as the source for appraisal standards and qualifications. ASB and ASQ are under TAF. Previously Maxine Waters incorrectly stated that the Appraisal Institute controls appraisers and the industry. I had tried to meet with Waters to correct this and many other false statements she's repeatedly made about appraisers and appraising. AI is a private non-profit organization which promotes the appraisal profession. It costs up to $15,000 to become an AI MAI appraiser. AI does not speak for all appraisers but a few. I am not a member.

Waters now wants to start a new federal agency to replace ASC, ASB, AQB and TAF because she doesn't understand how these agencies work. They have been working together since 1989. Now Waters wants to disrupt an entire industry to cater to her friends at the private non-profit Fair Housing Alliance.

5. Administrative Action

A. PAVE Task Force Report

The PAVE Task Force Report was just released. 

https://mary--cummins.blogspot.com/2022/03/pave-task-force-action-plan-from-white.html

B. ASC report

The private non-profit Fair Housing Alliance released their report. They included false and mischaracterized information including Andre Perry's paper. Here is my reply.

https://mary--cummins.blogspot.com/2022/01/identifying-bias-and-barriers-promoting.html

C. DOJ Statement of Interest in case Austin v Miller

DOJ filed a Statement of Interest in the case. That case has been covered extensively in this article linked below. Per black Plaintiffs' Reply they wanted the white real estate appraiser to only use sold comparables from Mill Valley and Sausalito two "white" areas which are worth about twice as much as their home, area in a "black" area in Marin City. Mill Valley is over a mile away and has one of the best school systems in the state. Austins stated it's "racist" to use sold comparables from their own neighborhood because it's "black" just like they are. These are actual quotes from their legal filing. Appraisers must use the most similar homes in the same area by law. Home values are based on LOCATION, LOCATION, LOCATION. Every home owner would love to use Beverly Hills comps to appraise their home in South Los Angeles but you can't. I wanted to speak to Waters about her false misrepresentation of this case but Waters office would never set the meeting. I sent a letter which I will post later. Waters is clearly just listening to summaries by people with their own agenda. 

https://mary--cummins.blogspot.com/2021/02/alleged-discrimination-home-appraisal.html

6. Legislative Proposal

This new agency is demanding to know the race, ethnicity, gender of all licensed appraisers. This information is not mandatory in California but the federal government will now demand it. AMCs will have to turn over the race, ethnicity and gender of all their appraisers. 

On page nine it appears Maxine Waters wants actual appraisals and all information from appraisers publicly available online. Only personally identifiable information may be redacted like their name. Your home appraisal will be available with photos of the interior of your home, where your security system is located, how to break into your home, where you keep your valuables, where your safe is located, where your little kids sleep, what is the best way to break in and rob you, gun collections, religious items, family photos, where you keep your purse, home layout...?

It appears that appraisers race, ethnicity and gender information will be publicly available online as well. 

Funding for fair housing testing must be provided. I will bet that the main Fair Housing nonprofit organizations National Fair Housing Alliance want money for their sting operations. The government will be funding non profits' personal agenda. They are also behind the false and frivolous alleged discrimination lawsuit Austin v Miller. They're asking for money in that lawsuit even though they were not a party to the transaction and there was no discrimination. 

All state complaints must be referred to the federal government within 48 hours. The appraiser who is the subject of the complaint must hand over 24 months of appraisals of other people's homes in the investigation of any complaint. Invasion of privacy of other people. Can they get these docs in a FOIA request? Complaints must be resolved within 100 days. 

If someone complains about an appraiser, the appraiser must give the borrower, owner the difference between their appraisal and another higher appraisal even if there were no damages or loss. Talk about undue influence to come in over market value. You know some borrowers will be getting their friends to make over market appraisals. What if the value is lower? The market may soon be changing. The person who doesn't like their appraisal now has up to five years to file a lawsuit against the appraiser instead of the usual 1-2 years statute of limitations. 

Racism is a big problem in our country. Wasting time on issues which are not racism detracts from the real issues of racism. 

Link to actual proposed new Bill.

https://docs.house.gov/meetings/BA/BA00/20220329/114561/BILLS-117pih-EndingAppraisalDiscriminationActof2022.pdf

Video of the meeting for new bill

https://financialservices.house.gov/events/eventsingle.aspx?EventID=409150

Proposed testimony for the meeting

https://docs.house.gov/Committee/Calendar/ByEvent.aspx?EventID=114561

Peter Tobias of AEI sent in testimony "Faulty Evidence and Misdiagnosed Solutions." 

https://docs.house.gov/meetings/BA/BA00/20220329/114561/HHRG-117-BA00-Wstate-PeterT-20220329.pdf

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.


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