Agenda Summary
National Association of REALTORS®
2009 Midyear Legislative Meetings
Omni Shoreham
Congressional Room A & B, West Conference Center
Wednesday, May 13, 2009
8:00 AM - 10:00 AM

Chair: Selma Triplett, Dover, OH
Vice Chair: Thomas Strickland, Chester, VA
Committee Liaison: David Lockwood, Columbia, SC
Committee Executive: Jerome Nagy, Washington, DC, Carol Kairis, Chicago, IL

Purpose: To serve the specialized needs of those members with an interest in real estate appraisal by: 1) monitoring, reviewing, examining, and analyzing appraisal-related issues for NAR; 2) referring appraisal-related issues to appropriate NAR committees for their consideration; and 3) providing recommendations on appraisal- related issues to the Board of Directors.

I. Call to Order and Introductions – Penny Triplett

II. Approval of Minutes from Last Meeting – Penny Triplett

III. Reports
Appraisal Foundation Trustee Report – Joe Traynor
The Appraisal Foundation Advisory Council (TAFAC) – Vic Knight

IV. New Business
A. Fannie Mae Speaker & Freddie Mac Speaker – Mack Strickland
Q&A Session as time permits

B. Legislative/Regulatory - Jerry Nagy
1. New Legislation
2. New Legislation
3. Home Valuation Code of Conduct

On December 23, 2008, the Federal Housing Finance Administration (FHFA) announced that Fannie Mae and Freddie Mac will implement a revised Home Valuation Code of Conduct (HVCC) effective May 1, 2009. The HVCC is based on an agreement between Fannie Mae and Freddie Mac and New York State Attorney General Andrew M. Cuomo to help eliminate conflicts of interest on mortgage appraisals. The code applies to lenders that sell single-family mortgage loans to Fannie Mae or Freddie Mac.

Individual REALTORS® and licensed real estate agents cannot serve as a third party between a lender and appraiser. This includes selection, retention, and compensation of an appraiser. Any employee of a lender may select appraisers only if the employee is appropriately trained and is wholly independent of the loan production staff and process.

C.A.R. and NAR are staunchly opposed to this agreement as it will preempt all state laws and hinder the loan process.  Under the agreement Fannie and Freddie will only be allowed to purchase loans from lenders who meet the new appraisal requirements regardless of what state the loan was originated in. 
C. Position Statement on Appraisal Management Companies – Mack Strickland
D. Discussion of Broker Price Opinions – Penny Triplett

V. Other Business
A. Update on Appraisal Education Workgroup – Penny Triplett
B. RAA/GAA Anniversary Announcement – Penny Triplett
C. Committee Selections for 2010
D. Next Meeting: Friday, November 13, 2009 2:00PM – 4:00 PM
NAR Annual Convention - San Diego, California

VI. Final Comments and Adjournment

Ownership Disclosure and Conflict of Interest Policy

1. When NAR has an ownership interest in an entity and a member has an ownership interest* in that same entity, such member must disclose the existence of his or her ownership interest prior to speaking to a decision making body on any matter involving that entity.

2. If a member has personal knowledge that NAR is considering doing business with an entity in which a member has any financial interest**, or with an entity in which the member serves in a decision-making capacity*, or wit, then such member must disclose the existence of his or her financial interest or decision making role prior to speaking to a decision making body about the entity.

3. If a member has a financial interest in, or serves in a decision-making capacity for, any entity that the member knows is offering competing products and services as those offered by NAR, then such member must disclose the existence of his or her financial interest or decision-making role prior to speaking to a decision making body about an issue involving those competing products and services.

After making the necessary disclosure, a member may participate in the discussion and vote on the matter unless that member has a conflict of interest as defined below.

Conflict of Interest Policy

A member of any of NAR’s decision making bodies will be considered to have a conflict of interest whenever that member:

1. Is a principal, partner or corporate officer of a business providing products or services to NAR or in a business being considered as a provider of products or services (“Business:); or

2. Holds a seat on the board of directors of the Business unless the person’s only relationship to the Business is service on such board of directors as NAR’s representative; or

3. Holds an ownership interest of more than 1 percent of the Business.

Members with a conflict of interest must immediately disclose their interest at the outset of any discussions by a decision making body pertaining to the Business or any of its products or services. Such members may not participate in the discussion relating to that Business other than to respond to questions asked of them by other members of the body. Furthermore, no member with a conflict of interest may vote on any matter in which the member has a conflict of interest, including votes to block or alter the actions of the body in order to benefit the Business in which they have an interest.
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*Ownership interest is defined as the cumulative holdings of the member, the member’s spouse, children, siblings and to any trust, corporation or partnership in which any of the foregoing individuals is an officer or director, or owns, in the aggregate, at least 50% of the (a) beneficial interest (if a trust), (b) stock (if a corporation) or (c) partnership interests (if a partnership).

**Financial interest means any interest involving money, investments, credit or contractual rights.