Winter 2006-07 President’s Report Philip W. Humphries

Dear Friends, meetings and conferences maintain public trust and to represent the Associa- confidence from individ- I want to thank you for tion which was a tremen- ual consumers and ap- Inside this issue: the confidence you have dous boost in spreading praisers then we will come expressed by electing me our name and mission under extreme pressure Where’d the year go! 2 as president for this year. I around the country. for the regulatory process pledge to you that I will as currently structured to work with the other offi- AARO is the organization be drastically changed. Post Katrina Update 2 cers and committees to that if we work together carry out our mission. will bond us together to AARO is the only organi- Conference Program 5 meet the many challenges zation established to rep- The year 2006 was a very we are facing and will en- resent and promote regu- successful year under the counter in the future. The latory officials across this New ASC Manager 9 leadership of Larry Dis- appraisal profession is un- great nation. In my opin- ney, and the Association der fire from many organi- ion the system of regula- Mission Statement 9 accomplished many acts zations and political lead- tion created by Title XI is to help the appraisal pro- ers due to the record high not broken but does have fession in the future. We number of foreclosure some weaknesses that AARO Benefits 10 had two very well at- and fraud cases in the need to be addressed. We tended meetings in San United States. As an Asso- have jurisdictions that are Regulatory Structure 11 Antonio and Washington ciation we must promote struggling to carry out with outstanding pro- an effective and strong their mission to protect grams of education and regulatory presence and the public and it is my training. Larry and other program in every state and hope that AARO can help members attended many jurisdiction. If we do not (continued on page 5)

AARO Spring Conference Welcome to St. Petersburg, Florida!! By Francois Gregoire

The Florida Real Estate about St. Petersburg, what sula between Tampa Bay Appraisal Board is proud to to expect and where to and the Gulf of Mexico. The welcome the Association of spend your time during your only land connection is to Appraiser Regulatory Offi- visit. the north. You may fly in to cials to Florida. Since the St. Petersburg-Clearwater Sunshine City is our meeting Located on the west coast of International Airport (PIE), site and my hometown, I am Florida, we are situated on north of the Downtown delighted to tell you a bit the Pinellas County penin- (continued on page 4)

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WOW! Where Did the Year GO?

By: Larry Disney

As I stated at the AARO fall cule percentage of what I had than acting on anyone’s be- conference during my closing intended to do. half or speaking for any spe- remarks as the association’s cific state or territory, the 2005-2006 President, “It The purpose of this message President generally acts and seemed as if only a blink of to the membership and read- speaks on behalf of the asso- the eye had taken place since ers is to convey what I was ciation leadership. I accepted the position of able to achieve, what I ob- President during the 2005 fall served, and my thought of One of my priority objectives conference.” the current status of the As- was to concentrate on making sociation of Appraiser Regu- AARO more widely recog- There was so much I had latory Officials in the hierar- nized and foster a cooperative planned for AARO and for chy of appraiser regulation. spirit by working with other the professional appraiser groups, agencies and indi- regulatory officials when I The first thing I discovered, viduals within the regulatory AARO 2006 accepted the position that I and rather quickly, we are groups and the appraisal pro- Fall Conference was unable to do. At the end made up of jurisdictions and fession. of the year it seemed I had not the individuals from completed only a very minus- those jurisdictions. So, rather (continued on page 3)

Post-Katrina New Orleans:

Disparities in wealth and A City and a Region Re-defined in the distance of Before Hurricane Katrina, the lation at the end of 2005 is tion density for a flourishing evacuees from their city of New Orleans was estimated at 134,400, and a region whose identity is far ruined houses are home to 462,269 people. A considerable number of com- less dependent on the city. tourist mecca, the historic Big mercial establishments were dictating, in many cases, Easy boasted of its fabulous either destroyed or have left. August 29, 2005 will be the date from which all future which neighborhoods will French Quarter, Mardi Gras, Vast parts of the city still delectable food, an amazing reflect its devastation. Per- analyses of the city and the be part of New Orleans's musical history and centuries- sons in the surrounding areas greater New Orleans region future and which will be old architecture—all adding no longer look to the city for may mark their beginnings spice to the gumbo that had goods and services as they and endings. Pre-Katrina consigned to its history. as its base the diverse cultures once had. demographic analysis, eco- of the people who called it nomic base analysis and gen- home. The heart of a broader The present scenario in erally accepted axioms regard- market area, the city was of- most—but not all—of the ing the region are for the ten the destination of choice outlying area is significantly most part no longer pertinent for 1.3 million area residents different. Population, new and stand only as points of for entertainment, shopping, home construction and new reference. medical care and other ser- businesses have all mush- vices. The surrounding com- roomed as the exodus from In reality, this is a “tale of two munities drew much of their the city brings new prosperity cities”—or of one city and identity from their relation- from Katrina’s devastation— the remainder of the broader ship to the city. together with its accompany- region that surrounds it—in ing challenges. The I-12 inter- which it is the best of times Katrina Disaster Photo Today, the distinctive attrac- state spur that connects the and the worst of times. The tions remain in New Orleans, Mississippi Gulf Coast to effects of Katrina and the but many of the people, their Baton Rouge, Louisiana, the ensuing 18 months on the homes and their jobs are no state capital, is on track to city and other parts of the longer there. The city’s popu- become the base of popula- (continued on page 6) 2

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continued from page 2) tion Task Force along with towards developing training It was my great pleasure representatives of the Ap- sessions for appraiser regula- and honor to have WOW! Where praisal Foundation to advise tory Board members, attor- served you as President the regulatory agencies, edu- neys, and staff. The dream of AARO. I thank Did the Year cators and others in imple- would be to have a complete everyone for the support menting the 2008 Education training and education core and assistance during my GO? Criteria, and other changes curriculum that would lead to year of service, and I am that must be in place for ap- a professional recognition appreciative for having In meeting that priority I, or a praiser regulation no later certification for appraiser been given that honor member of the AARO leader- than January 1, 2008. regulatory officials. This cer- and privilege. ship team, attended every tainly can, and should be- ASB and AQB meeting of the All of the above meetings and come a reality, because today In closing, I urge all of Appraisal Foundation. The conferences have, hopefully, there is no such program you to push as hard as Appraisal Foundation recog- assisted in letting others 1) available. you possibly can for the nized AARO as a member of know that AARO exists, 2) most effective heights the Education Council of the what the mission of AARO you can achieve within is, and 3) what we can do as Appraisal Foundation Spon- your agency. Push your sors (ECAFS). Also, the Ap- an organization to assist ap- praiser regulatory agencies AARO leadership and praisal Foundation continued demand effective to have a representative sit- across the nation in having a leadership. We can no ting on The Appraisal Foun- more effective and successful dation Advisory Council. appraiser regulatory enforce- longer simply meet the ment program. minimum and expect it Also, I believe that AARO to be the best we can do. My second priority was to should work diligently toward We must demand more carry out the mission of pro- developing an education ap- from ourselves and our viding education to appraiser proval program that will be a agency. Only you can regulatory agencies and the corollary to the AQB Course make your state individuals within those agen- Approval Program. This type cies. I am pleased to report program would be especially appraiser agency more that through the efforts of beneficial for those states and effective and proactive. the AARO leadership, and a territories that either cannot Other meetings which I at- committee of many individu- or will not, for whatever rea- tended on behalf of AARO als, AARO is the only agency son, abdicate all qualifying were the Illinois Coalition of or organization that, I per- education course approval to Appraiser Professionals, the sonally have knowledge of, is the AQB Course Approval Chicago Land Area Chapter active in developing, perfect- Program. The program could of the National Association ing, and offering an investiga- serve as the clearing house of Independent Appraisers, tion program for real prop- for qualifying education the Valuation 2006 confer- erty appraiser enforcement courses that are approved by ence in San Antonio, Texas, agencies. member states and territories. the Appraisal Institute 2006 Summit in Washington, DC, The association must con- the HUD Stop Mortgage tinually strive to encourage Fraud Symposium in Savan- the leadership of states and nah, Georgia, and AARO was territories to commit and also asked to participate in provide the resources, fund- the panel presentation at the ing and assistance to the ap- Appraisal Foundation’s Mort- praiser regulatory agencies gage Fraud Symposium in sufficient for them to operate Washington, DC. an effective appraiser en- The investigator training has forcement agency. In the The Appraisal Foundation been successful beyond our near future we will all be put recognized AARO by asking greatest expectations. It is under the microscope to a representative to participate my hope that in the coming evaluate our effectiveness in in the Course Implementa- years the leadership will work combating the massive abuses

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(continued from page 1) Each and every first Friday of the month, Downtown St. Pete has nearly everything, part of Central Avenue is closed off for First but no real beach. However, three of the AARO Spring Conference Friday. This is a monthly street party Top 20 beaches in the United States are in Pinellas County. From St. Petersburg, the Hilton meeting Hotel, and not see a bridge closest and most pristine is Fort DeSoto, a on the way to town. If you fly in to Tampa 900-acre county preserve consisting of five International Airport (TPA), take one of the islands, seven miles of undeveloped beaches, three bridges across Tampa Bay into St. a camp ground, boat ramps, fishing piers, Petersburg. From downtown, to head to paved fitness trails and a historic fort. Nine Bradenton or Sarasota to the south, take the miles due west of downtown, you’ll find the world famous Sunshine Skyway Bridge white sands of St. Petersburg's 500-foot (Interstate 275) across the mouth of Tampa Gulf-front municipal beach on Treasure Bay. The Interstate feeders to downtown are Island. It’s certified annually by the National Interstates 175 and 375, which branch off of Clean Beaches Council as an outstanding with live jazz or rock music, plenty of food 275. Take Interstate 175 straight to the Hil- environmentally-friendly "Blue Wave" st and beverages. It just so happens, this will ton St. Petersburg Bayfront (333 1 Street beach. South, 727-894-5000) AARO Meeting Site. be the night of the AQB meeting, May 4th, is located just four blocks from the hotel and it’s FREE!

On Saturday, May 5th, if you’re not attending committee meetings, take a walk to Central Avenue between 1st and 2nd Street for the Saturday Morning Market. From 9:00 until 2:00, the downtown hosts a European-style open air market featuring fresh produce, prepared foods, gourmet baked goods, greenery, handcrafted house wares and gifts. You’ll find work by local artists, live music and more. We are confident there will be plenty to do The Bayfront Hilton is located at the south- during your visit to the Sunshine City of the ern edge of downtown, just across from Sunshine State. In fact, it will be best if you Progress Energy Park (minor league base- plan your trip to arrive early or stay late to ball), Demens Landing Park and the South make sure you spend some time attending Yacht Basin. Within three blocks of the ho- the AARO programs we have planned for tel you will find Pioneer Park, the southern- most of several miles of landscaped parks along the waterfront of Tampa Bay.

The Tampa Bay Blues Fest will be going on May 4 – 6 at Vinoy Park – Bayshore Drive and 5th Avenue NE (one of the downtown waterfront parks). Listen to the internation- ally recognized blues sound of musicians from around the country. Food and activi- ties are offered. The cost is $25 daily or $60 you. From sports bars by Tropicana Field, jazz for a three day pass. bars on Central Avenue and nonstop enter- Watch the AARO website (http:// tainment at BayWalk, St. Petersburg really The Tampa Bay Devil Rays will be playing www.aaro.net) for links to other hotels, bed comes alive after dark. You may dine at one Minnesota on May 3rd and Oakland May 4-6. and breakfasts, dining establishments, inter- of varied downtown restaurants, followed by Tropicana Field, the home of the Devil active maps, events and more. We want to live music and entertainment at a number of Rays, is just about one mile west of the ho- make sure you are treated right. venues. The newest entertainment spot, tel. You can’t miss the big dome on the way BayWalk/Muvico 20, offers a 20-screen in to town. cinema with stadium seating, designer retail shops and theme dining establishments. The world's most comprehensive collection BayWalk also includes martini and daiquiri of Salvador Dali’s surrealistic art works is bars. Within walking distance of the hotel housed at St. Petersburg's world-class Salva- you will find sushi, oyster bars, a wine tast- dor Dali Museum, downtown on Bayboro ing venue, cigar bars and plenty of restau- Harbor just about a half mile from the hotel. rants with outside and sidewalk seating. 4

(continued from page 1) keep our Association on the high road in only national organization of regulatory our working relationships with everyone officials to come together on a volunteer President’s Report involved in appraisal regulation. basis to work together to promote a in as many cases as possible. We have al- strong regulatory presence in each state I want to welcome our new member ju- and jurisdiction. ready become a member of a group con- risdictions and also those who have be- sisting of the governmental affairs come active members again after a pe- We have two national meetings sched- officials of the major appraisal trade or- riod of being inactive. We have missed uled for this year with the first being in ganizations to try to educate the state you and look forward to your participa- St. Petersburg, Florida in May and the policy makers and governors on the re- tion within the Association. Our mem- second in Washington, DC in October. sponsibility of each jurisdiction under Ti- bership has grown over the last few years Work has already begun on planning the tle XI. This group is in the discussion and this is a reflection that we are pro- programs with pertinent “need to know stage of drafting letters and other com- viding quality programs of education and items” on the agenda and training for munications to state leaders in an at- training. I want to encourage everyone to everyone. Your officers and leadership tempt to have adequate funding for each become involved in the Association and will be attending many other meetings jurisdiction to run an effective and com- in an attempt to accomplish this goal I around the nation to represent the Asso- pliant regulatory program. I endorse that have appointed new and larger commit- ciation and have a voice in what is taking we work together with trade organiza- tees with greater representation from place in regulation. I encourage you to tions to help publicize the need for more states. I challenge you and will as- attend the two meetings to obtain and strong and accountable regulation. I real- sist you to get involved, as we must de- share information on how other states ize our mandate as regulatory boards and velop new leadership for the future suc- are experiencing the most significant commissions is to protect the public and cess of the Association. Please go to our change to USPAP in 13 years with the not represent appraisers but we must in outstanding website developed and man- elimination of the Departure Rule and my opinion work with those that we aged by Dennis Badger at http:// the most significant change in AQB re- regulate to have a successful program. www.AARO.net to review the commit- quirements with the change in required tee appointments. Every Board member, qualifying education that becomes effec- Under the leadership of Brenda Kindred- staff member, agency employee, friend tive at the end of the year. Kipling, Jim Martin and Larry Disney we and sponsor of AARO is very important have come a long way in establishing a to us and AARO needs your involve- During the course of this year please do professional and mutually respected ment, support and expertise. not hesitate to contact me or any officer of working relationship with the Founda- the Association with your concerns or tion, ASB, AQB and the Appraisal Sub- We are in a very serious business as the ideas. We have agreed to serve in these po- committee. While I will always stand up appraisal profession is critical to the suc- sitions and have taken an oath to represent for individual State rights, it is a very cess or failure of the financial economy the best interest of the Association to the healthy relationship when we can all of our country. Without minimum quali- best of our abilities. Remember, you are work together to accomplish our goals fication for licensure, standards for per- important, and working together we can and responsibilities as regulators. I will formance and regulation to enforce these and will make a positive difference in the continue to promote this excellent rela- items can you imagine what would be business of regulation in this great nation tionship that has been established and taking place in our nation? AARO is the

Tentative Spring 2007 Conference Program

By Bob Keith

The program for AARO’s spring 2007 Appraiser Qualifications Board (AQB) appraisal (typically ad valorem) conference in St. Petersburg, Florida will Chair, Sandy Guilfoil, will speak on the experience and what constitutes focus primarily on various aspects of AQB Course Approval Program (CAP) acceptable documentation of mass implementation of the AQB’s mandatory and how it might benefit state appraiser appraisal experience. 2008 Real Property Appraiser regulatory agencies in their course Qualification (education) Criteria. approval process. Ms. Guilfoil will also The conference will also feature two Secondarily, the conference program will provide valuable information about the panel discussions. One will be comprised address how to identify and prevent new (post 2008) state appraiser of state appraiser regulators from three mortgage fraud and appraiser identity examinations: what the exam is like, how states and will feature three methods of theft. The Appraisal Subcommittee and states can use it, the “context specific” appraiser education course approval, the Appraisal Standards Board will be on nature of the exam, and what type of from simple to more complex the program to give updates relevant to questions are used. Sandy will also approaches. The other panel discussion appraisal regulation and USPAP. address the issue of acceptance of mass will be comprised of representatives (continued on page 8) 5

(continued from page 2) The government remains unable to take any sired reduction in crime. form of leadership, even 1½ years after the Post-Katrina New Orleans storm, with no prospects of change. Local, Tourism and convention industries state and federal government interactions focused primarily on New Orleans proper The negative national media attention high- have led to a confused response form the region cannot be understood except by lighting the city’s problems from crime to viewing them as two separate entities. What public sector. The private sector is grappling the drinking water has hindered the rebirth is true of one is not necessarily true of the with increased construction costs, property of the tourism and convention industries. other. insurance issues that are making property Unlike 9/11, which had only a short-term and business insurance either cost prohibi- impact on tourism, Katrina may well have a tive or unobtainable, and an appallingly slow lasting effect in the face the negative percep- response on definitive redevelopment plans tions and increased competition. from both private and public sectors. This results in a real estate market driven by the Levee protection composite of individual property owners' The jury is still out as to the Corps of Engi- situations and decisions, rather than on a neers' credibility in their claims that they will concerted plan affected by government as restore and improve the levee protection for was speedily accomplished in Pensacola the city and environs. Efforts are being after Ivan. Recovery appears to be solely made to create a separate organization—not dependent upon the willingness of individ- government related—to check on the Corps' ual citizens to move back, fix up their prop- progress and report thereon. As long as the erties or buy undamaged ones in the area, status of levee protection remains uncertain, this will have a negative impact on recovery. and live and work here. Knowledgeable prognosticators consider Education that the overall real estate market in New Orleans and many southshore subur- Headway is being made in some public ban suburbs will decline in 2007. It is also schools that have moved from the control considered possible that this slippage of of the school board to charter status. That is prices and absorption will bleed into 2008. a ray of hope for the dreams of having an THE CITY Others consider the extended future of the educated, employable workforce in the fu- city to be a much brighter one, however. ture. New Orleans probably has more potential While some of the former residential now than at any time since its inception. neighborhoods will be vacant or much less Insurance Billions of dollars are supposed to be flowing densely populated, many areas will thrive. Of immediate concern to property owners is into the city for reconstruction. Many are Housing stock will be new and improved the dramatic upswing in property insurance sure that much, but not all, of the promised and new segments of business will arise. The of all types. While homeowners are feeling funds will materialize, which will be a boon potential is phenomenal. Some of that the pinch of 2006 premium increases that to the restoration process. promise will be realized over the long term. range from 5 percent to more than 50 per- The question left to be answered is how cent, it is the commercial property owners The real estate market much and when. who have been hardest hit, most seeing pre- There are concerns in most quarters, how- Crime mium increases well in excess of 100 per- ever, that New Orleans—and its real estate cent, often many multiples thereof. It is market—will fail to live up to the potential, The biggest obstacle to recovery in the city hoped that these costs will come down in a as the real estate market is a function of right now is crime. Many criminals are back, few years; much will depend on the state government's level of effectiveness, the eco- no longer limiting themselves to their for- insurance commissioner's efforts, as well as nomics of a particular place, and people's mer neighborhoods. What members of the unknowns such as future hurricanes. actions and expectations. Many issues were larger population accepted in poorer in place before Katrina: a poor public school neighborhoods is not accepted within their Strong family ties system led by a school board rife with cor- own. Violent crime, headed by murder, is One intangible will support recovery. New ruption that allowed most physical plants to higher per capita now than in any of the Orleans, perhaps more than many modern severely deteriorate; acceptance of high recent decades. The lasting perception that cities, is one of extended families with roots crime in poorer neighborhoods where im- life in the city is unsafe is disastrous to the running deep in the community. For many, properly educated people had severely lim- real estate market. Citizen anger at the lack the question is not, “Am I coming back?” ited economic options; an ineffectual and of response to the murder rate by the city but “Is my extended family coming back?” corrupt city government that hampered co- government resulted in a march on City Hall Many are. The city's unique aspects, such as ordinated growth and master planning in mid-January. The government now ap- music, food and culture, will continue to within the city; inadequate planning for ma- pears to be changing its processes through- draw former residents back, even in the face jor hurricanes; and, of course, unbeknownst out the judicial system. Time will tell if the of adversity. to the majority of the populace, an ineffec- proposed measures will bring about the de- tive levee system. 6

THE REGION will recover to its pre-storm population to- Commercial real estate tals. Population The parts of the region that have not been Notably problematic is the decline for Or- negatively impacted with hurricane-related The New Orleans Metropolitan Statistical leans and St. Bernard, which may never re- devastation are experiencing prosperity in Area consists of seven parishes: Orleans, gain their loss population. Redevelopment the demand for new offices, warehousing, Jefferson, St. Bernard, St. Charles, St. James, of the significantly flooded areas has been retail space, special purpose properties (car St. John and St. Tammany. The more inclu- stagnant since the storm, and there may be washes, movie theaters, hotels) and viable sive market area, the Greater New Orleans long-term issues associated with redevelop- commercial vacant sites. Area, adds Tangipahoa Parish. At the end of ment in large portions of these two parishes. 2005, the New Orleans market area had a Jefferson Parish, although expected to ex- With a decrease in the total number of resi- current population of 929,554, down from perience, at most, modest losses in popula- dents in the region, however, there will be 1,319,589 pre-Katrina. Parish-by-parish esti- tion, may be negatively impacted by other less demand overall for available commercial mates suggested the following population issues that are affecting parishes south of I- space of all types. There may be a glut of distributions as of the end of 2005. 12/I-10. space ranging from small retail and office to warehousing and large special purpose prop- Orleans: 134,400 (down from 462,269) Housing erties in the flooded areas. Many a south- shore business has moved or is planning to Jefferson: 375,000 (down from 453,590) In the post-Katrina era of housing in the move from the southshore to other areas region, the trend has been for strong de- within the region. St. Bernard: 8,000 (down from 65,554 mand for non-flood-damaged housing stock. This is true in all affected parishes including Plaquemines 14,500 down from 28,969 Orleans, with the notable exception of St. St. John the Baptist 48,581 up from 45,581 Bernard Parish. In St. Bernard, 100 percent of the housing stock was either destroyed or St. Charles 69,073 up from 50,073 severely damaged. St. Tammany 280,000 up from 213,553 The current national downturn trend in housing may not be experienced in this re- gion because of the singular demand for housing in the affordable home segment of the market. The local construction industry is poised to experience a level of activity never before realized.

According to Wade Ragas, PhD, MAI and owner of Real Property Associates Inc., a Education year-end (2006) study of housing suggests The ability to attract new residents is de- the following trends for housing in the re- pendent on the quality of public education gion: in the area. This is a challenge in Orleans There are two distinct markets for housing and Jefferson parishes. Conversely, St. Tam- in the region: damaged and undamaged. many Parish public and private schools en- joy one of the highest rankings in the state, Sales of existing home are far ahead of 2005, drawing many young families not only from up 20 to 30 percent. Orleans but also from other parishes. Tangi- pahoa, St. Bernard and St. Charles are all Low-income tax credit rentals are forecast to ranked in the top twenty-five school systems be 6,000 to 8,000 units for the 2007-08 in the state. At the present time, two of the years. eleven colleges and universities in the area have not reopened. Tulane, UNO, Xavier St. Bernard will grow to 30 percent of its and Loyola all report lower enrollments for Forecasts indicate an overall population loss pre-storm population, approximately 19,500 2006. because of the hurricane’s impact, but the people. continuation of an internal migration of Quality of life populations within the region, with St. Tam- St. Tammany home sales are running at 550 many and Tangipahoa parishes the recipient units per month, with no indicated slow The outlying parishes have burgeoning of the largest percentage. In about one year, down and stable demand and pricing. populations. New home construction is at a stabilized population of the seven-parish an all time high. Many businesses are relo- MSA may reach approximately 1,185,000, or St. Charles, St. John and Tangipahoa par- cating to the north shore region. New about 90 percent of the pre-storm totals. ishes are experiencing price appreciation and schools are being announced. Should this The longer the recovery takes in terms of increased sales volumes of new and existing trend continue, there may still be quality of providing housing and the reopening of homes life issues in the region, but these will be schools and hospitals, the less likely the area (continued on page 8)

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(continued from page 7) sation and the actual cost of repair or re- (continued from page 5) placement of a home were not issued until Post-Katrina New Orleans September, 2006 Tentative Spring 2007 focused primarily on New Orleans proper The MSA added jobs at an average rate of Conference Program and not the region as a whole. More specifi- 4,200 per month in the second quarter of from national course providers. They will cally, the outlying areas will provide housing, 2006 before slowing to an average of 450 employment and other positive features that per month [in late third quarter]. The de- share their collective experience in the make for a high quality of life offering a safe crease is due to the delay in receipt of insur- course approval process in hopes of aid- and hopeful future to the residents of this ance funds, a dramatically reduced popula- ing state regulators in developing and/or re-defined region. tion, a shortage of labor and the slow pace improving their course approval process. of federal aid. The following observations are based on Issues of mortgage fraud, the appraiser’s information from a study summary ex- Hospitals and healthcare are still on the criti- role in mortgage fraud, and appraiser cerpted from the internet and published by cal list in New Orleans and St. Bernard, al- identity theft continue to be hot issues Capital One, N.A. The October 2006 study, though other parishes in the New Orleans nationwide. As a result, the AARO Advancing in the Aftermath III: Tracking the MSA have reopened most of their facilities. spring conference will devote the Satur- Recovery from Katrina and Rita Summary Results, All areas, however, still face shortages of day afternoon session to these important doctors and other healthcare professionals. was performed by Dr. Loren C. Scott, and issues to help appraiser regulators under- sponsored by Capital One, N.A. The full stand how mortgage fraud works and report is available at Revenue at the area's casinos is up dramati- cally, increasing more than 30 percent from how to better regulate appraisers to help the same period a year ago for each of the reduce mortgage fraud. gambling operations in the New Orleans MSA. Also, we will hear an update from the Appraisal Subcommittee to learn about Only 13 percent of the St. Bernard schools the most urgent issues facing state ap- are open; 43 percent in Orleans parish. Most praiser regulatory agencies as we ap- schools in other parishes within the MSA proach the January 1, 2008 deadline for are fully operational. implementation of the new AQB educa- (The area has recovered about 75 percent of tion criteria. Finally, the Appraisal Stan- pre-Katrina hotel rooms. dards Board (ASB) will present informa- tion regarding recently proposed changes Sales tax collections in each month since the for the 2008 edition of USPAP. storm have been higher than the corre- sponding month of 2005, except in Orleans If you are a state appraiser regulator, you and St. Bernard parishes. cannot afford to miss this conference. See you in St Pete! The Port of New Orleans is operating at pre-Katrina total tonnage levels. The Port of St. Bernard is 100 percent recovered. Cruise line activity is expanding.

Special thanks to Anne Brassett for pro- www.lorenscottassociates.com. viding this article on Post-Katrina New Orleans. In the New Orleans MSA, 515,249 homes were damaged by the storms, and 204,757 Contributing writers: were left uninhabitable. Only 26 percent of homeowners in the New Orleans MSA had Rick Murphy flood insurance.

The first checks from the Road Home funds Gayle Boudousquie from the federal government intended to help fill the gap between insurance compen- Heidi Lee

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ASC Announces Kristi lives in Jefferson City, MO with her Pennsylvania husband and new bulldog. She will be as- Texas New Policy Manager signed St. Louis as her duty station. Kristi Virgin Islands should be a great addition to the ASC's pol- Wyoming icy manager staff. Vicki Ledbetter Policy Managers assist in monitoring State programs for compliance with Title Alaska XI. Kristi Klamet will have primary re- Arizona sponsibility for the following States: Delaware Arkansas District of Columbia Iowa Georgia Kansas Hawaii Kentucky Michigan Maryland Mississippi Nebraska Missouri New Jersey New York New Mexico North Carolina Nevada Tennessee North Dakota Utah Oklahoma Kristi Klamet South Dakota Jenny Howard Tidwell

The ASC is pleased to announce that its Rhode Island Alabama long process of recruiting a qualified appli- The three veteran Policy Managers have pri- California cant for its vacant policy manager position is mary responsibility for the following States: CNMI/Guam complete. Kristi Klamet, began work on Colorado January 7, 2007. Kristi was the Director of Denise Graves Connecticut Missouri's appraiser regulatory pro- Florida Indiana gram. Kristi was one of the original Idaho Massachusetts "starters" of Missouri's program. After a Illinois Ohio number of years with the program, Kristi Louisiana Puerto Rico moved to other positions in State govern- Maine South Carolina ment. A couple of years ago, the Commis- Minnesota Vermont sion brought Kristi back to the appraiser Montana Virginia program. New Hampshire Washington

Oregon

AARO Mission Statement

The mission of the Association of Appraiser Regulatory Officials shall be to improve the administration and enforcement of real estate appraisal laws in member jurisdictions. The Association shall accomplish this mission through:

1. Communication. The Association will facilitate communication and cooperation between and among Appraiser Regulatory Officials and others concerned with appraiser and appraisal issues.

2. Research. The Association will conduct research and obtain information relative to appraisal matters.

3. Education. The Association will participate in educational programs on appraisal and will assist with instruction, administra- tion, and regulation of appraisal education for regulatory officials and others. In addition, the Association will continually strive toward raising the level of competence and professionalism of all appraiser regulatory officials.

4. Cooperation. The Association may also develop and encourage cooperation with all other organizations whose objective is similar in nature to the objectives and purposes of this Association.

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(Excerpts of the following statements were taken from a “stand alone” or governed by a body directly regulatory interests and the opportunity to letter drafted by Larry Disney in January 2005) responsible for real property appraiser regu- create future net-working resources. lation only. The remaining agencies are un- How membership in the der the governing authority of an umbrella Remember, AARO is a young organization. organization with responsibility to regulate Therefore, occasionally mistakes will happen Association of Appraiser other professional licensee disciplines. during meetings and when planning meet- Regulatory Officials (AARO) Therefore, the focus of these agencies can ings, but we all grow from mistakes and only sometimes become multi directional. In the membership working together can make can provide benefits for a many instances due to work load, the small positive change for the future. Appraiser numbers of licensed and certified appraisers, regulatory jurisdictions cannot afford to sit real property appraiser limited budgets and staff, appraiser regula- on the sidelines and wait for someone to regulatory agency, its Board tion is simply considered an extension of step forward. There is not one other group one of the larger professional groups regu- of regulatory officials committed to serving members and staff. lated by the larger umbrella agency. In these the unique needs of appraiser regulation. instances the agency regulating real property We must all remember that the process of appraisers seldom communicates or meets The current executive leadership commits regulating real property appraisers first be- with peers in other state appraiser regulatory and pledges to you and all individuals repre- gan in 1990; therefore, it is an infant when agencies, the ASC, TAF, ASB or AQB. senting the regulation of real property ap- compared with other real estate regulatory praisers the very best that we can offer for Throughout the past ten (10) years the ex- the organization. We promise to be recep- commissions and agencies. pectations for real property appraiser regula- tive to the needs of all member jurisdictions, tion, appraiser qualifications, appraisal stan- As is the case with all government programs, dards, and disciplinary activities have all open to all regulatory officials and their appraiser regulation is not without problems changed exponentially each year. Histori- staff, their ideas and suggestions. We prom- or mistakes. We all continually strive to cally the most effective way to monitor ise quality programs with effective content achieve positive growth and quality service changes, stay informed and remain up-to- and we promise to work as hard as we possi- to our membership. date has been through the meetings of bly can to be fair and honest as we move AARO. These meetings offer one-on-one forward together for the betterment of all To my knowledge “AARO” is the “only” conversations with peer members of regula- appraiser regulatory officials, staffs and regulatory association devoted entirely to the tory agency boards and staff, the ASC, the member jurisdictions. issues and problems associated with en- Appraisal Foundation, ASB and AQB boards, and an opportunity to receive perti- forcement and regulation of real property nent information and training in appraiser The real estate appraisal profession ranks appraisers. In my opinion this becomes the regulatory issues. among the smallest numbers of any profes- most critical reason for real property ap- sionally licensed group in most states; there- praiser regulatory agencies to become mem- Mr. Ben Henson, Executive Director of The fore, we can not afford to be uninformed or lack training when addressing issues and bers of AARO. Appraisal Subcommittee advises real prop- erty appraiser regulators to meet with other concerns. I anticipate we will sometimes The purpose for creating real property ap- agency members and staff responsible for differ, and should in some issues. However, praiser enforcement agencies is included in regulation of appraisers in the various states let us always go forward without becoming Title XI. The sole mission is intended to and territories. Typically those agencies who disagreeable. Let’s unite and work for the protect the safety and soundness of the na- stay involved through regular meetings with good of everyone. tion’s federally regulated financial institu- their regulatory official peers are the most informed, receive the instructions necessary Remember, those individuals who are li- tions by establishing and administrating censed and certified real property appraisers laws, regulations, and policy that establishes to carry out the most effective enforcement programs for appraiser regulation, and ap- in every state and territory hold us, the regu- a minimum qualification for real property lators, responsible for their professional appraisers, a standard for real property ap- pear the most knowledgeable upon review by ASC Policy Analyst. careers. We make the decisions for required praisal development and reporting, effective education, experience, national examination monitoring of appraiser performance, and In my opinion the greatest benefit AARO and disciplinary action in complaint cases. timely settlement of complaints with equita- These folks deserve the very best that we ble disciplinary actions. has to offer member jurisdictions is the op- portunity to meet and discuss current prob- have to offer them. The best can only be Each State and territory implemented the lems and issues. Attendance at AARO achieved through cooperation and drive regulation of real property appraisers differ- meetings also affords the opportunity to within each of us as a regulator to be the ently. Currently there are only thirteen (13) meet individuals with common appraiser best we possibly can be. Boards and agencies that are considered 10

Appraisal Regulatory Structure

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