Interview 2011 Appraisal Institute President Joseph C. Magdziarz, MAI, SRA
LL: What is AI anticipating to be the response to "reasonable & customary"?
MAGDZIARZ: I think the best phrase right now might be “cautious optimism.” The Fed’s interim final rule on Oct. 18, an initial blueprint for implementing the Dodd-Frank Act, was a step in the right direction, but it didn’t address a number of important specifics. We’re hopeful that the Fed’s final rule on April 1 will provide the details necessary to the appraisal industry.
The real key, as most residential appraisers know, is that many (although not all) appraisal management companies have focused on low cost and quick turnaround times for appraisal reports instead of prioritizing competency. When Dodd-Frank is fully implemented, the Appraisal Institute hopes and expects that the most experienced, qualified appraisers will become more interested in receiving assignments from AMCs, thus improving the quality of appraisals.
LL: What are the lobbying efforts AI is involved with this year?
MAGDZIARZ: As we always are, the Appraisal Institute expects to be heavily engaged in state and federal legislative and regulatory issues this year. We’re already seeing activity in state capitols on legislative initiatives concerning issues such as broker price opinions and green valuation. At the federal level, we’ve been heavily involved in submitting comments to the Federal Reserve as it seeks to implement the Dodd-Frank Act. AI also recently responded to a Department of Labor proposal to include appraisers under the definition of “fiduciary” in the Employee Retirement Income Security Act. So we’ve been very busy on the lobbying front, and as an appraisal industry leader, we expect to become even busier.
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