amc task force presentation- saskatchewan kimberly maber, aaci

AMC Task Force Presentation-Saskatchewan

Kimberly Maber, AACI

AMC Task Force Presentation to AIC-SK

History and Mandate

• Discussions by AIC Board started in November 2008.

• The AD HOC TASK FORCE ON AMC ISSUES shall investigate member and Institute concerns on AMC issues. The committee will then develop recommendations and present them to the Board of Directors for consideration. The first task force report will be prepared in time for review at the May 2009 meeting of the Board of Directors.

BOD Motion Jan 2009

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Task Force Composition

• Chair - Non-Fee/AACI

• Five fee appraisers, all with residential areas of practice.

• Staff Liaison - Robert Patchett- Counsellor of Professional Practice;

• Staff Support - Shelly Poirier- Professional Practice Coordinator


Overview of Task Force Workplan

• Member Survey April, 2009.

• Over 1700 members completed the survey.

• In May, 2009 the task force met with the 4 AMCs at Mt Tremblant.

• Concurrent session at conference with 4 AMC representatives.

• In July, 2009 the task force met for 2 days, and completed the final report in August, 2009.

• AIC Resource library at: http://www.aicanada.ca/members/cmsPage.aspx?id=283

http://www.aicanada.ca/members/cmsPage.aspx?id=283


Report & Progress of Recommendations

• Board received the report on Oct 16/17, 2009 in confidence.

• Board passed a motion directing:

• AIC not pursue forming their own AMC.

• AIC not pursue Competition Act concerns.

• The remaining recommendations to respective committees.


Report & Progress of Recommendations.

• November 6, 2010 the Board of Directors passed the following motion:

• “It is moved that the Board of Directors of the AIC adopt the following (remaining) recommendations from the AMC Task Force report dated August, 2009.

Progress of Key Recommendations

Communications

• AIC public website- • Creating a new tab under About AIC called Stakeholder

Collaboration which will include the following webpages:• Working with an Appraiser• Appraisal as part of lending process• Appraisal for IFRS• Appraisal and AMC’s• Appraisal and Mortgage Broker• Appraiser as Litigation Expert

• The Marketing & Communications committee are working on producing an information package that can be offered locally to lenders regarding report quality and the value of the services offered by a professional appraiser.



Communications

• LAC is working on seminars about business practices that relate to diversification into alternate opportunities.

• The CPV magazine has profiled members who have successfully diversified their business practices.

• Exit surveys have been undertaken to gauge the impact of AMCs on appraisal fees and the AIC membership.




Code of Conduct

• November 6, 2010, the Board approved a revised Code of Conduct.

• Provided to AMCs on Dec 31/10.

• The Code of Conduct will be added to the Stakeholder Collaboration webpage on the AIC website.

• Communication strategy being developed for members/lenders/public.



Forms

• Mandatory Appraisal Form

• For residential mortgage work.

• Forms sub-committee is in the final stages of their work.

• Standard progress inspection form.

• Same status as residential form.

• Mandatory digital signatures.

• Board is working on a method to deliver this in partnership with Notarius.

• Noted that current standards advise that electronically transmitted appraisals must be digitally protected.



Forms cont’d

• Placing the fee paid on the appraisal form.• Currently applicable by the State of Illinois for the

purposes of transparency and for the public interest. • This idea is being included in plans for new

mandatory residential form.

• Competition Act concerns.• The task force is revisiting this aspect due to changes

in the Competition Act, and new approach by Competition Bureau.



Advocacy• Recommendation to create an AIC Committee.• Board considered in Feb. 2011

• Exposure Draft out to members – Communiqué No. 3

• Provincial Affiliates• Several provincial lobbying recommendations.• AIC will work with Affiliates in sharing information

on lobbying and will also facilitate sharing information between provincial affiliates.


Advocacy

• Executive and CEO have met with:

• Lenders

• CMHC

• OSFI

• Advocacy objective:

• Raise awareness of the risks associated with using AMCs and AVMs.

• Canada has not seen the economic crisis experienced by the USA, thus there not been much interest from lenders, CMHC and OSFI.



Voluntary Fee Schedules

• Task force recommendation was:

• It is recommended that the Board provide guidance to Provincial Affiliates regarding voluntary fee schedules.

• The AIC-BC did a fee survey in late 2009 and prepared a voluntary fee schedule. B.C. is currently preparing a follow-up survey to see what has happened to residential fee work/fees in the intervening time.

• Ontario is also considering preparing a voluntary fee schedule.

• Quebec has also made enquiries of the task force.AMC Task Force Presentation to AIC-SK



Contracts

• The AMCs have provided AIC their current contracts.

• AIC has reviewed same.

• Concerns about contract issues have been included in several Communiqués since 2008

• Specifically regarding whether there are CUSPAP concerns;

• and if they may result in increased liability beyond the Professional Liability Insurance Program policy coverage.

• Data Storage: Communiqué 15- 2010.

• On-line forms: Recommend appraisers do not use.

• If they do, limiting liability clauses are recommended.


Contracts

• The Counsellor, Professional Practice has presented his Contracts seminar to several affiliated associations/chapters to date.

• This seminar has been well received.

• He remains available to present the seminar to further associations/chapters.

• The U.S. prepared a White Paper on valuation issues entitled The CRN report.

• Respective AIC committees are reviewing sections of the CRN report to see if they have merit in Canada.



Ongoing Communication with AMCs

• The task force met with representatives from the 4 main AMCs in May 2009.

• In 2009/10 President Young met and corresponded with the same 4 representatives regarding various AMC issues, most recently about the current Code of Conduct.

• At the CAAMP conference in November 2010, the M&C board liaison met with AMCs present at the conference.

• A meeting with the 4 AMCs occurred on February 14th in Toronto to discuss matters of common interest.

– Agreement was reached to schedule further follow up meetings to address contract concerns.


AMC Resources – AIC Website


Questions and Answers


amc task force presentation- saskatchewan kimberly maber, aaci

Documents

amc task force report

aic board

aicsk slide

aic committee

aic website

aic membership

aicsk history

amc issues