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AppraiserLoft Blog I Appraisal Industry News |
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Recent PostsBlogroll« Vermont Backs Appraisal Independence | Home | FHA Appraisers in the Spotlight on Capitol Hill » Nevada Enacts Law to Clarify the Use of Broker Price OpinionsBy AppraiserLoft Team | June 18, 2009 Nevada Senate Bill 184, signed into law May 29 by Gov. Jim Gibbons, specifically prohibits the performance and use of a broker price opinion “in lieu of an appraisal for the purpose of determining whether to approve a mortgage loan.” It clarifies that BPOs may continue to be used for the listing or purchase of real property or for an existing or potential lien holder or a third party making a decision about the listing or sale of real property (i.e., short sales, foreclosures, REO properties, etc.). The bill also enacts requirements that a BPO contain certain notifications to the intended user, and that a broker is fully responsible for all of the activities of a licensee who is associated with the broker that performs a BPO. Up to this point guidance from the Nevada Real Estate Division has indicated that BPOs may only be performed for the purposes of establishing a selling, or offering, price for real property. However, in practice, evidence suggests that BPOs are being performed for a number of other transactions (including mortgage finance transactions) in violation of the current guidance. The existing licensing law has not been effectively enforced by the Real Estate Commission, but it has resulted in disciplinary actions being taken by the Appraisal Commission for the illegal performance of appraisals without an appraiser’s license or certification. S.B. 184 was supported by the Nevada chapters of the Appraisal Institute and the Coalition of Appraisers in Nevada as a way to bring statutory clarification to the BPO issue. The legislation was the culmination of over a year’s work that started with the formation of a Task Force in 2008 to study the proliferation in the use of BPOs in the state. Representatives of the Appraisal Institute and CAN said they believe that the language of S.B. 184 prohibits the use of BPOs for all mortgage finance transactions, including originations, refinances, loan modifications, workouts, etc. The Nevada appraiser community will be working for further clarification of this issue through the regulatory process. Further, the Nevada appraisal community will be working for the adoption of standards and guidelines for the performance of BPOs. Trackback and refer: http://www.appraisalinstitute.org/ano/current.aspx?volume=10&numbr=11/12#7576 Topics: Legal Updates | 1 Comment » One Response to “Nevada Enacts Law to Clarify the Use of Broker Price Opinions”CommentsYou must be logged in to post a comment. |
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August 26th, 2009 at 8:44 am
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