GGRREECC RREENNeewwss March 2020
Volume 16 Issue 3

Monthly Newsletter of the Georgia Real
Estate Commission

2020 Calendar https://www.facebook.com/pg/cityofatlanta

This Issue

GREC update Regarding Covid-19

P. 1

Disciplinary Stats

P. 1

Resources for all Licensees from GAR P. 2

GREC CE Courses

P. 2

AMK Section

P. 2

The Appraisers Page

P. 3-5

More In-Class Schedules and Events TBA
Link to the Georgia Real Estate License Laws, Rules, and Regulations
Link to GREC Disciplinary Actions View Current
Suspensions and Revocations

GREC/GREAB Update Regarding COVID-19
Due to the coronavirus, for everyone's safety GREC staff is unable to meet with you face to face. We ask that at this time you refrain from visiting our office.
Applications that require a fee, Background Clearance applications, and Requests for Investigation must be submitted via mail.
All other applications can be emailed to us and you will find the email on each application.
Real Estate Testing in Georgia halted from March 20, 2020 through April 12, 2020
The Georgia Real Estate Commission and Georgia Real Estate Appraisers Board have been notified that our test vendor, PSI Inc. will close all Georgia Test Centers starting Friday, March 20. No exams will be given during this period.
Candidates can reschedule up to and including the day of testing at no penalty and no documentation is required.
NOTE: In most cases, candidates can reschedule their examinations on-line (www.goamp.com) and they are encouraged to do so. If a candidate chooses to reschedule through PSI's candidate support call center, (800-345-6559) hold times are expected to be extensive under the current circumstances.
Thank you all for your patience and understanding throughout these unprecedented times.

Link to Proposed Rule Changes

Click Here

Click here to review a legend of the disciplinary actions the Commission may impose.
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Online Courses from GREC approved for:
License Law Continuing Ed Instructor CE 3 - 9 Hours CE 1. Being a Broker and Staying Out of Trouble 2. Avoiding Trust Account Trouble 3. Practicing Real Estate & Staying Out of Trouble
Click Here to Enroll $10 Each

GREC RENews March 2020, Volume 16 Issue 3
Resources for all Licensees from Georgia Association of REALTORs regarding COVID-19 Special Stipulation
The Georgia REALTORS Leadership and Staff are actively monitoring Federal and State updates and actions as they become available. They have developed a resource page on GaREALTOR.com. ( GAR COVID-19 Resource Page) to keep members (and all licensees) informed as the conditions, and directives, are rapidly changing. The page is open and all information, including the COVID-19 Special Stipulation may be shared.
Anyone with a question, concern, or recommendation can email COVID19@GaREALTOR.com and utilize the site to watch for updates on the Georgia REALTORS website, FaceBook page, and via email.
The Georgia REALTORS ("GAR) Forms Committee recently designed a special stipulation to address what happens if the parties are "concerned about the possibility of not being able to close on their transaction due to COVID-19. Please seek guidance from your broker in determining if / when you should use this COVID-19 Special Stipulation in your real estate transactions." The Special Stipulation, is available for licensees at GAR COVID-19 Resource Page.
Please email your questions and comments to COVID-19@garealtor.com

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GREC RENewsletter
Click Here
Submit a Comment or suggestion Click Here
Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916

GREC CE Courses
A list of Approved Real Estate Schools and the types of courses they offer, including Real Estate Law, can be accessed on the GREC website or this link. Since classroom style training has been postponed in many cases, consider the approved online courses available, many of which are identified in the Approved School listing. In addition, the GREC Online school offers the 3 online courses listed in the side bar all of which include CE and Law Credit.
The following CE courses DO include credit for the mandatory Real Estate License Law requirements as part of the CE credit.
Avoiding Trust Account Trouble Online
Being A Broker and Staying Out of Trouble Online
Practicing Real Estate and Staying Out of Trouble Online
Broker and Trust Account Workshops (Schedule TBA) Common Violations - You Can't Fix Stupid But We Can Work With
Ignorance (Schedule TBA )

bsolutely ust now Section
The CE Requirement is 36 hours, 3 hours of which must include specific topics of the License Law.

You can take CE courses any time during your entire 4-year renewal period.
However, you cannot carry-over more than the required 36 hours to the next renewal period.

If your license is placed on inactive status, it is a good practice to continue to obtain your continuing education credits so that you when you do activate your licensee you are not required to complete an accumulation of hours over the 36 hours for each 4-year renewal period.

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The Appraisers Page

Georgia Real Esta1te Appraisers Board

March 2020

Useful Links:
GREAB Web Site

Appraisal Act


#refiTsunami
By: D. Scott Murphy, SRA
Favorable interest rates and a strong economy has meant a robust real estate market with a busier than normal start to the year. Most appraisers I have talked to have been at or above normal capacity. February saw above average home sales signaling a strong spring selling season. Meanwhile, a serious health epidemic was brewing on the other side of the world. February 29th marked the first death on US soil from this mysterious disease and now it becomes real for Americans.

GREAB Disciplinary Sanctions


The Fed steps in March 3 and cuts the Fed rate which in turn caused mortgage rates to drop to historic levels. Overnight, lenders were buried in loan applications, many stating they logged more loans that weekend than in the prior six months. The next week as lenders began to process these loans, appraisers saw a rise in appraisal orders in the magnitude of three to four times the normal volume. Undenounced to the general public, who were focused on the unprecedented health crisis, the mortgage industry was dealing with a refinance Tsunami.

Lenders, appraisers, closing attorneys, title companies and others involved with mortgage loans over night went into hyper mode. Virtually all these vendors have somewhat flexible capacity, but this amount of immediate volume caused many of us hurriedly begin to add staff.
In years past, as we recovered from the recession, there was a lot of focus on appraisers and assigning blame for long delays in closing loans. Many lenders claimed there was an appraiser shortage and sought remedies in order to bypass the appraisal process. This was a veiled attempt to use automated processes to speed the process and attempt to better control the valuation. The ironic twist is that lenders are to blame for the appraiser shortage.

The availability of appraisers and the story of their current number is a complex issue. In the not so distance past (prior to 1991 when licensing was enacted) one would become an appraiser by going to work for an experienced appraiser. Most appraisers were members of trade organizations such as the Society of Real Estate Appraisers or the Appraisal Institute. These organizations offer designations which were the best way for an appraiser to be recognized as a professional.

The 1980's saw the savings and loan crisis which paved the way for nationwide appraiser licensing. Most

states enacted appraiser regulations and began issuing licenses in 1991. There were typically three tiers, registered

or trainee, licensed and certified. Trainee or registered appraisers were required to take the requisite course work

and pass an exam. In order to advance to be licensed the appraiser would need to find a mentor who would train

him and assist him in obtaining 2000 hours of experience credits. In addition, more course work and an exam were

required to advance. Finding a mentor was always challenging but when the real estate market was strong there

were always opportunities for those wishing to enter the profession. During the 1990's and through 2006 the number

of appraisers rose steadily.

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The Appraisers Page

Georgia Real Estate Appraisers Board

March 2020

Useful Links:
GREAB Web Site

Appraisal Act

GREAB Disciplinary Sanctions


#refiTsunami
By: D. Scott Murphy, SRA
In late 2006 and early 2007 we saw the housing bubble burst which thrust the country into a recession. The number of appraisers entering the profession naturally declined as the volume of appraisal work tapered off. The major tipping point for the appraisal profession came in mid-2008 when Fannie Mae released Announcement 08-30. It was a standard announcement clarifying several Fannie Mae procedures and simply was to clarify which appraiser was to sign where. Fannie said that the "appraiser" had to sign on the left. Many misinterpreted this to mean that the "main" appraiser or the supervisor had to sign on the left and the trainee could not sign the report. What Fannie Mae really meant is that if the trainee inspected, he has to sign on the left. This may be confusing to those not in the appraisal profession but what was happening was that trainees were inspecting the property, acknowledging their assistance in completing the report in a statement in the appraisal addendum and the supervisor was signing on the left even when he did not inspect the property. This is not allowed because whoever signs on the left must inspect the property. Fannie was just clarifying the correct procedure.

...Continued on page 5

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The Appraisers Page

Georgia Real Estate Appraisers Board

March 2019

Useful Links:
GREAB Web Site

Appraisal Act

GREAB Disciplinary Sanctions


#refiTsunami
By: D. Scott Murphy, SRA
Most lenders interpreted this as a new requirement that the supervisor must physically inspect every property with the trainee. It might take 2-3 years for a trainee to advance to licensed or certified.
Here is a good analogy for those of you who are in real estate sales. Making the supervisor go out and inspect every property with the trainee is like saying to a real estate broker that they must go out on every listing presentation with every new agent for the first 2-3 years. Never going to happen. No one would hire new agents. Well guess what, the numbers of new appraisers entering the business dropped to near zero for the next eight to nine years. The adherence to this policy has created a situation where we will run into an appraiser shortage, higher appraisal fees and lengthy delays in completion of appraisal reports if appraisal volume suddenly spikes.
It was not until January 2017 that Fannie Mae published a clarification in Selling Guide 2017-01 stating it has never restricted to the use of trainee appraisers and that supervisors are not required to inspect every property.

SEL-2017-01

Lenders over those years worked specific language into their risk management policies requiring supervisors to inspect every property. Many lenders went even further and stated that the trainee could not even sign the report.
For the past three years since Fannie Mae's clarification, many of us have worked very hard with lenders in order to update their procedures and restore this vital procedure. The number of people entering the profession has begun to rise again. There still are several large banks who refuse to correct this issue in preference to a conservative position. Unfortunately, many of the large mortgage brokers sell their loans to these banks and must abide by their rules even though Fannie Mae does not agree.
Over the next few months as appraisal volume rises from increased sales and the #refiTsunami, don't blame the appraisal population for extended delays, we are doing all we can with the resources we have available.
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