Proposed Rule: Minimum Requirements for Appraisal Management Companies
Comments due by June 9, 2014
The OCC, Board, FDIC, NCUA, Bureau, and FHFA are jointly proposing a rule to implement the minimum requirements to be applied by States in the registration and supervision of appraisal management companies (AMCs). The proposed rule also implements the requirement in the Dodd-Frank Act for States to report to the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (FFIEC) the information required by the Appraisal Subcommittee (ASC) to administer the new national registry of appraisal management companies (AMC National Registry or Registry).
Click here for more information and to submit comments.
Revised Section 8 Renewal Policy Guide Book
Comments due by April 30, 2014
Background (relevant portions highlighted in yellow):
On February 28, 2014 the Department posted the draft revised Section 8 Renewal Policy Guide for public comment. The Section 8 Renewal Policy Guide is HUD’s comprehensive guidance for renewing expiring Section 8 contracts. According to HUD, Department research has shown that market rent estimates, as determined by an owner’s rent comparability studies (RCS), are often higher than market rent estimates, as determined by a RCS secured by the Department. In May 2012, the Department issued new guidance to require appraisers to provide additional justification if the gross rent potential in the RCS exceeded 110 percent of the Fair Market Rent (FMR) in rural areas or the Small Area Fair Market Rent (SAFMR) in urban areas. The Department’s industry partners provided significant feedback regarding this new guidance, citing policy and technical concerns. In light of these considerations, the Department suspended implementation of the guidance in order to more thoroughly consider how best to address the Department’s concerns regarding rent levels reflected in owner’s RCSs.
After further consideration, including consultation with HUD’s Office of Policy Development, and Research (PD&R), the Department proposes to implement a revised benchmark against which owner RCS rents can be assessed. As a preliminary matter, the Department believes the most reliable benchmark is a market-based, rather than a FMR-based, measure. Further, HUD believes that the most comprehensive market-based benchmark would be median gross rents, as determined and as published by the United States Census Bureau or some other comparable source. HUD considers these rents comprehensive because they are available for every zip code within the United States. The new guidance would require a comparison of the rents in the RCS to a market-based benchmark (i.e., median rent estimates published by the United States Census Bureau or other comparable source), should RCS rents exceed 110 percent of the median rents for the zip code area. Should this be the case, HUD will order a third party RCS and undertake a comparison of the RCSs.
Click here for more information on the proposal.
Comments can be sent to Section8RenewalGuide@hud.gov