Education, the life blood of our organization, is in full swing. Kudos goes to S. Keith White, SRPA, education chair of the R.I. Chapter of the Appraisal Institute. In February, with the able assistance of our executive secretary, Elsie John, they successfully organized three timely and informative seminars: Introduction to FHA Appraising; Quality Assurance in Residential Appraisals; and Residential Market Conditions Form. The attendance was impressive.

As a result of the overwhelming interest in "The New Market Conditions Form" we were pleased to present a second offering of this seminar. FHA lending is a major source of residential mortgages in today's market. The good news, because of these efforts our residential membership were well prepared to meet the April 1st deadline for the implementation of the new Fannie Mae Form 1004MC.

The attendees also received a basic understanding of the newly adopted Home Valuation Code of Conduct (HVCC) scheduled to take effect on May 1st was also addressed. Simply stated, all institutions that deliver loans to Fannie Mae or Freddie Mac must warrant that the appraisals adhere to the requirements found in the HVCC. It was intended to promote independence in the appraisal process. It is important to note that the HVCC applies to conventional 1-4 unit, residential loans only.

With respect to the commercial real estate, industry experts expect the commercial real market to face its worst year since the early 1990's projecting a 15 - 20% loss from its mid-2007 peak. Many investors find themselves awash in debt. As a result of this upside down market, the inability to obtain credit, and higher vacancies, restructuring current mortgage debt is difficult if not downright impossible to achieve. Even more reason for the appraisal professional to be on his/her game when appraising commercial real estate. We are offering Commercial Appraisal Engagement & Review for Bankers/Appraisers on May 29th; and Appraising Distressed Commercial Real Estate on June 26th. Both seminars are timely considering the economic climate with respect to commercial real estate.

Despite the unsettled real estate market membership in the R.I. Chapter has pretty much held its own. Nonetheless, our goal is not only to maintain the status quo but solicit new members. To that end we are sending a mass-mailer reaffirming our National President's message explaining the "benefits of being a member." We look forward to working with other neighboring chapters to provide a comprehensive "Guidance Seminar" for new associate members. The time and place will be announced in the very near future.
Finally, we remain vigilant with respect to impending legislation that is sure to have a profound effect on our industry. The national organization of the Appraisal Institute anticipates this year will be the most active and trying year in the history of appraisal regulation. Areas of reform include issues related to the Troubled Asset Relief Program (TARP), predatory lending, banking and financial services, and regulatory reform.

Stay tuned!!


Ann Hollands is the 2009 president of the Rhode Island Chapter of the Appraisal Institute, Riverside, R.I.