We had a membership meeting on June 19 which featured an interesting update by Will Krueger of Better Together on their continued efforts to merge St. Louis City and County. In addition, the Nominating Committee presented the slate of 2020 nominees to the membership for a vote at the meeting. The 2020 officers will be inducted at the December meeting and are as follows:
President, Russell Rench, MAI
Vice President, Jeff Thornhill
Treasurer, Steven Teague, MAI
Secretary, Patrick White, MAI
Past President, John Rimar, MAI
1-Year Director, Donna Howard
1-Year Director, Robert Norris, MAI
2-Year Director, John Karnes, MAI, SRA, AI-GRS
2-Year Director, Brad Schopp, MAI
3-Year Director, Jeffrey Johnson, MAI
3-Year Director, Angela Benoit
In addition, our Regional Representatives for 2020 will be:
Russell Rench, MAI
John Rimar, MAI
Steven Teague, MAI (alternate)
Thank you for your support of our chapter and your attendance at our meetings and educational offerings. I will look forward to seeing you in the Fall.
Russell N. Rench, MAI
Wednesday, October 30 - NOON
1320 S Vandeventer Ave, St. Louis, MO 63110
Lunch - burgers, brats, fries, 1 beer
Tickets will be online - on the new format of National website- registration to begin October 2
Speaker: Phil Hulse
For more than 30 years, Phil has been a leading visionary in building up St. Louis’ urban core, and paving the way for business activity and commerce in our area. After starting his career as a broker and working his way up through the real estate field, Phil co-founded two successful real estate firms, Summit Development Corporation and Gateway Commercial.
During the spring of 2019, Doug Potts taught General Income Part 1, General Income Part 2, and Review Theory. 14 students attended General Income Part 1, 16 student attended General Income Part 2, and 25 students attended the Review Theory class. These qualifying and advanced education courses attracted students from all over the United States. The chapter developed Westover Spring Symposium was offered in March to an audience of 68 people. Mark Linne presented his seminar on Artificial Intelligence, AVMs, Blockchain, and the Future of Appraisal. Commerce Bank presented the 2019 Outlook for the Financial Markets and John Rimar and Linda Atkinson presented Special Purpose Properties with Special Valuation Considerations. Upcoming educational offerings include the Fall Symposium on October 15, 2019 and USPAP in the spring of 2020 (Jan. 28 in STL, Feb. 19 in Collinsville, and March 3rd in Columbia, MO). We are also working on the following courses for this fall ‘Introduction to Green Buildings’ and ‘Case Studies in Appraising Residential Green Buildings’.
Not much has changed with the chapter finances this year with total assets of $97,403 as of July 31, 2019, up $4,781 from July 2018. Net income for the year thus far is $11,825, up $10,275 from July 2018, but -$1,715 short of budget year to date. Overall, the finances remain solid for the chapter. The Westover Memorial fund that has been used to finance the spring education the past two years, was designated for scholarships administered by our directors and scholarship committee, and the remaining balance of the restricted funds was distributed this spring to the selected recipients. Finally, the chapter transition the Appraisal Institute’s CFMAP (Chapter Financial Management and Administration Program) launched in, October 2018 has been successfully implemented and well received. The first $20,000 from our reserve investment fund was transferred to the Pooled Investment fund (CFMAP) in June 2019. The remaining funds will be transferred to the Pooled Investment fund periodically as the, Commerce Bank CDs mature.
A brief summary of current Government Relations issues is provided below by Doug Potts...
- On 7/9/19, the Appraisal Sub Committee (ASC) approved (vote 5 to 2 in favor) a 1 year appraiser licensing waiver for the entire state of North Dakota. For those loans where an appraisal is required by law (“federally related transaction”), the appraisal may be performed by a non-licensed individual. This does fly in the face of state laws requiring a licensed person, but will not likely be enforced, since the federal appeal and approval will have supremacy. The waiver may be extended after 1 year if circumstances warrant. The big issue here is the likelihood that other areas of country will now get of the sidelines and make similar requests, resulting in an avalanche of additional waivers, reducing the competitive position of licensed appraisers.
- On 7/18/19, by a vote of 2-to-1, the 3-member board of the National Credit Union Administration (NCUA) approved raising the commercial real estate threshold from $250 thousand to $1 million. While the NCUA administers only credit unions, a relatively small component of the financial system, it is highly likely that the other banking agencies (FDIC, Red Reserve, OCC) will appeal for equal treatment, and wish to increase their 2018-approved thresholds from $500 thousand to $1 million also. Adding additional strain, they will likely further request that the appraisal exemption for business loans be raised well beyond the current $1 million to some much higher level, perhaps from $2 million up to $4 million. This increase will directly affect the ability of appraisers to offer safety and soundness checks to a large component of the FIRREA-required lending activity.
- A silver lining surrounding these 2 dark clouds is the news bulletin yesterday (7/31/19) from The Appraisal Foundation (see below), where TAF is (finally) considering adding evaluation standards into USPAP. The general plan is for a working paper to be issued by Labor Day, followed by submitted commentary, followed by a decision from TAF about including evaluation standards in the 2022 edition of the USPAP. Appraisal Institute leadership has been working on these and other TAF issues for several years, since AI research has sounded the alarm on the significant damage that non-appraiser evaluations have done to the appraiser population and profession. The move could be an attempt by TAF to regain lost ground.