The Weekly Membership Newsletter of the Tennessee Assn. of REALTORS
Editor: Pug Scoville


CONTENTS
1. The Home Valuation Code of Conduct
2. HOT LINE: Giving the Appraiser a Copy of Contract?
3. HOT LINE: Misleading Advertising?
4. HOT LINE FOLLOW-UP: Housing for Older Persons
5. A Video Clip To Watch Online
6. IMPORTANT NOTICE TO READERS
7. Get to the Point!
8. Upcoming Courses & Events!
9. Rates Jump Higher


1. The Home Valuation Code of Conduct

On December 23, 2008, New York State Attorney General Andrew M. Cuomo, Fannie Mae and Freddie Mac (government sponsored enterprises) announced the final agreement of the Home Valuation Code of Conduct (HVCC). The agreement establishes standards on solicitation, selection, compensation, conflicts of interest and appraiser independence. The HVCC took effect on May 1, 2009, for any mortgage that will be sold to the GSEs. Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement.

At the recent meetings of the National Association of REALTORS (NAR) in Washington, many REALTORS came away still concerned about the impact of this new Home Valuation Code of Conduct. Concerns revolve around whether or not REALTORS can still communicate directly with appraisers, providing additional comps, etc.

NAR has published a downloadable flyer to address some of the myths surrounding this new Code. Dispelling one myth, NAR is assuring members that “REALTORS and lenders can talk to appraisers, including requests to consider additional data or to correct errors.”

For a more complete briefing on this Home Valuation Code of Conduct — including what is and is not permitted — and a link to the above-mentioned flyer, go HERE.

NAR’s leaders are continuing to monitor this new Code and are doing what they can to address a number of unresolved problems that have arisen with its implementation!

[SOURCE: NAR]


2. HOT LINE: Giving the Appraiser a Copy of Contract?

QUESTION: An appraiser is asking for a copy of the contract on a property. Can I legally give it to him?

ANSWER: NO. You should not give the appraiser a copy of the contract. This is confidential information, and the appraiser does not need a copy of the contract in order to perform the appraisal. If the lender wants him to have a copy of the contract, then the lender can provide it to the appraiser.

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


3. HOT LINE: Misleading Advertising?

QUESTION: When I do an Internet search on my local area, another company appears that has no office anywhere near here! That company simply doesn’t serve this part of the state. Is this not in violation of Article 12, Standard of Practice 12-10? This is deceptive to me and, when I contacted them and asked how they handled the leads, the young lady on the phone stammered all over herself, put me on hold and came back and said they have local companies they work with. When I asked who, she would not tell me. I wonder if they are selling the leads back to people who have the properties listed or giving them for a referral fee? Anyway, this does not seem right to me. What do you think?

ANSWER: We agree with you on this. This is terribly misleading if they are advertising or using the Internet in such a way as to lead the consumer to believe that they are in one area of the state and are not. You can always file a complaint with their local association under Article 12, SOP 12-10. Or you could file a complaint with TREC for misleading advertising. (Tenn. Code Ann. 62-13-312(b)(4).

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


4. HOT LINE FOLLOW-UP: Housing for Older Persons

In the May 5th TAR DIGEST, we published an article on senior retirement facilities. The Hot Line attorney based the response on the Housing for Older Persons Act, a federal law. There is ALSO a statute in Tennessee that is a bit more strict. It has two different classifications of “housing for older persons”.

The first requires that the housing is intended for persons who are 55 years of age and older. At least 90% of the units must be occupied by at least one person who is 55 or older. It must provide significant facilities and services that are specifically designed to meet the social and/or physical needs of persons aged 55 and older, and it must publish and adhere to policies and procedures which demonstrate that the owner and/or manager intends to provide housing for those aged 55 and older. The second requires that the housing is intended for and it only used by those who are 62 years and older. This information comes from Tenn. Code Ann. 4-21-602(d)(2).

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


5. A Video Clip To Watch Online

At the May 7, 2009, membership meeting of the Northeast Tennessee Association of REALTORS (NETAR), state RPAC Fundraising Chair Pat Beech addressed the membership, and her presentation was captured on video! It is well worth watching and is viewable on the NETAR website HERE.

Kudos to Pat …and to NETAR for providing such an easy way for others to view her presentation!


6. IMPORTANT NOTICE TO READERS

In July of 2009, we will be changing email distribution of the TAR DIGEST!

Our first issue in July will be the 7-14-09 issue, and — starting with that issue — the TAR DIGEST will be emailed to ALL TAR members who have a valid email address in their NRDS records (that the local associations of REALTORS maintain). To continue receiving the DIGEST in July and beyond, please ensure that your local association of REALTORS has your current and correct email address.

For non-members (e.g., office managers) who have been receiving the TAR DIGEST, there will be a mechanism set up by then so that you may continue to receive it.

The TAR DIGEST will still be posted on the www.tardigest.com website, for easy searchable access to past editions, and a printer-friendly current edition.


7. Get to the Point!

From September 15th – 19th, TAR will be hosting the 2009 TAR Annual Convention in Point Clear, Alabama, at the Grand Hotel Marriott Resort, Golf Club, & Spa. National speakers include real estate guru Stefan Swanepoel, Karel Murray, Internet-savvy Randy Eagar, and productivity wizard Merlin Mann! For more information about the Convention program or our hotel in Point Clear, go HERE.

This should be a WONDERFUL Convention, in a great place to relax and recharge after a challenging year!


8. Upcoming TAR Courses & Events!

June 16: TAR Forms 101 (Nashville, TAR Office), 4 hours CE. For more information, go HERE.

June 16: TransactionDesk Basic Course (Nashville, TAR Office), 3 hours CE. For more information, go HERE.

[The June 11 offerings of the above two courses are full, but there is still room in the June 16 offerings!]

A Special Event for Educators & Instructors: On July 28-29, TREEF will host its Educators Conference 2009, an annual event with sessions and workshops for instructors and association staff. For more information, go HERE.

Instructor-Training: On August 27-28. we will hold another offering of our popular two-day instructor-training workshop, “The Learning-Centered Instructor”, at the TAR Office in Nashville, accredited for 16 hours of CE. For more information, go HERE.

Watch each week’s TAR DIGEST for schedule changes and additions!


9. Rates Jump Higher

Freddie Mac reports a jump in the 30-year fixed mortgage rate to a 25-week high of 5.29 percent during the week ended June 4, up from 4.91 percent the prior week. The 15-year fixed rate also increased, rising to 4.79 percent from 4.53 percent, with Freddie Mac chief economist Frank Nothaft indicating that the gains follow a surge in long-term bond yields. Meanwhile, the five-year adjustable mortgage rate climbed to 4.85 percent from 4.82 percent; and the one-year ARM surged to 4.81 percent from 4.69 percent.

[SOURCES: Freddie Mac; Information, Inc.]


TAR’s Home Page: http://tnrealtors.com

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