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Illinois and North Carolina have become the latest states to enact new appraiser independence laws when Govs. Pat Quinn, D-Ill., and Bev Perdue, D-N.C., signed legislation into law last week. Forty-two states now have some form of appraiser independence law on their books.

The language of each of the new laws is somewhat different, but each of them generally prohibits mortgage brokers and lenders from improperly influencing the development, reporting, result or review of a real estate appraisal sought in connection with a mortgage loan.

These new appraiser independence laws were enacted as part of much broader legislation regarding the licensing of mortgage loan originators that is required under existing federal law – the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

As of today, 46 states have enacted legislation to comply with the federal SAFE Act. Of these states, 32 have included new appraiser independence provisions, bringing the total number of states with appraiser independence provisions to 42. (Some states had existing appraiser independence laws prior to the SAFE Act.)

To view a copy of the new Illinois law, visit www.ilga.gov/legislation/BillStatus.asp?DocNum=4011&GAID=10&DocTypeID=HB&LegId=46849&SessionID=76&GA=96 .

Fannie Mae's newest pdf and video provide guidance to lenders and appraisers to supplement the policy requirements in the Fannie Mae Selling Guide for performing and underwriting the property appraisal securing mortgages delivered to Fannie Mae.

Guidance for Lenders and Appraisers - (.pdf, 130K, 26 pages)

Click the graphic below to start the online training video . . .  

The Illinois Realtor Association just recorded a YouTube video on key housing provisions in the American Recovery and Reinvestment Act.

In it, they talk about how Illinois residents can benefit from the $8,000 first-time homebuyer tax credit, increased Illinois FHA loan limits and energy-efficient housing tax credits.

Feel free to share this link to the video with your friends and family to help them understand why they really can benefit from getting in the market now:

http://www.youtube.com/watch?v=VGHPf0YmrTI

The IAR has more FREE consumer resources related to stimulus measures at www.illinoisrealtor.org/stimulus, including:

• “What You Should Know about the First-Time Homebuyer Tax Credit” in English and Spanish
• “9 Facts You Should Know about Today’s Illinois Real Estate Markets” - our popular brochure revised for 2009!

Marco Ruiz has been working with Scott Draughon of http://MyTechnologyLawyer.com  on developing a series of appraisal related programs for the Internet.  Past programs have had such notables as Dave Biggers (Chairman of a la mode, inc), Patrick Egger, Richard Ferris, and others.

Thursday was my turn in the barrel!  The radio interview/talk show is presented every Thursday at 4:00pm EST on My Technology Lawyer.com (http://www.mytechnologylawyer.com/radio) or http://www.ruizappraising.com/radio

We talked about general "Social Networking" issues to start. . .Blogging, Facebook, Web sites, Forums, and even webcasts and podcasts!  How do they fit into an appraiser's marketing, education, and referral networks?  We even got into one of my favorite topics . . ."Appraiser Tribes" how they impact political action for appraisers?! 

 Download the recorded interview!  You can download or stream Thursday's show with Brian from the list of recorded show - click here.

Are YOU interested in being on the show?  Get hold of Marco and pitch your ideas and area of expertise.

Are you a POTENTIAL sponsor?  This is a UNIQUE venue for appraisal companies and service providers to reach a target market.  Click here for more information.

According to IAR's October Market Stats report, total home sales (which include single-family homes and condominiums) were down 16.9 percent in October 2008 to 8,557 sales compared to October 2007 sales of 10,302.

The Illinois median price in October was $173,000, down 10.1 percent from $192,500 in 2007. The median is a typical market price where half the homes sold for more, half sold for less.

According to U of I economist Dr. Geoffrey J.D. Hewings in the latest REAL forecast:

“The uncertainty about the disposition of the $700 billion bailout continues to generate downward pressure on the stock market and places recovery of the housing market to a more distant time in late 2009 or 2010.”

Beginning January 1, 2009, FHA will insure single-family home mortgages up to $271,050 in low cost areas and up to a maximum of $625,500 in high cost areas. The February 2008 Stimulus Package temporarily raised the FHA maximum to $729,750 through December 31, 2008. The new $625,500 maximum, however, represents a significant increase over the $362,790 limit that was in effect prior to the Stimulus Package.

"In today's environment where access to credit is being restricted, we need to make mortgage loans readily available to households throughout the country, and especially in high-cost areas," said Preston. "These new loan limits will ensure FHA can to continue help struggling homeowners refinance into safe, affordable government-insured loans, and allow many first-time buyers take advantage of today's buyers market"

For several years, FHA's loan levels were below the cost of the average home in communities across the nation. As a result, families who needed FHA mortgage insurance to qualify to buy a home were effectively locked out of the process. In some cases, borrowers turned to exotic subprime loans.

FHA mortgage insurance makes home financing more available to low-income and first time homebuyers. This is because the mortgage is backed by the full faith and credit of the government, freeing lenders from assuming the risk of default.

Higher FHA loan limits do not cost the government any money because the FHA Insurance Fund is fully supported by premiums paid by borrowers who receive FHA-insured mortgage loans.

The Housing and Economic Recovery Act pegs the national conforming mortgage loan limit to a house price index chosen by the new Federal Housing Finance Agency (FHFA). For 2009, the national conforming limit will remain at the current level of $417,000.

The Act says that the new FHA loan limits will be set at 115 percent of the median house price in a given area, as determined by HUD, but can not be lower than 65 percent of the conforming loan limit (the national floor). Also, the FHA mortgage limit cannot exceed 150 percent of the national conforming loan limit (the national ceiling).

Home Equity Conversion Mortgages

The Act also pegs the national mortgage limit for FHA-insured reverse mortgages to the national conforming loan limit. The FHA product known as the Home Equity Conversion Mortgage (HECM) will therefore have a national mortgage limit of $417,000. Unlike the new forward mortgage loan limits, the new HECM loans limits are effective on loans insured or after November 6, 2008. This is the first time that a single limit applies to these mortgages nationwide. As in previous years, the special exception areas of Alaska, Hawaii, Guam, and the Virgin Islands may have higher loan limits. Starting in January 2009 counties in those areas may have loan limits of 115 percent of area median prices, where that amount is above $417,000, up to a ceiling of $625,500.

Reverse mortgages allow homeowners age 62 and older to borrow against the value of their homes without selling them. Homeowners can select a lump-sum payment, monthly payments or tap into a line of credit. No repayment is required as long as a homeowner lives in a home with a reverse mortgage. The reverse mortgage is repaid, with interest, when a homeowner sells the home or dies.

HUD will inform mortgage lenders and brokers of the new limits through a mortgagee letter posted on www.hud.gov and www.fha.gov.

HUD is making available comprehensive listings of the new loan limits in all counties throughout country. Downloadable files are available for FHA Forward Loans, FHA HECM loans, and Fannie Mae and Freddie Mac purchases on the HUD website. The limits are determined by the county in which the property is located, except that for properties located in metropolitan statistical areas the limit is determined by the county with the highest median home price within the metropolitan area.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.