House Bill 398 (Stevenson) requires appraisal management companies to be registered with the State Board of Certified Real Estate Appraisers. Pennsylvania is the 30th state to pass such legislation.

More appraisal management companies appeared throughout the country, as a result of the Home Valuation Code of Conduct (HVCC). The Home Valuation Code of Conduct originated from a settlement among New York Attorney General Andrew Cuomo, the Federal Housing Finance Agency, Fannie Mae and Freddie Mac. While the HVCC was sunset, the issue of unregulated appraisal management companies remained.

“We believe this legislation is important to protect homebuyers in the Commonwealth,” said PAR President Frank Jacovini. “Research initially showed after the Home Valuation Code of Conduct was enacted, consumers were paying higher fees for appraisals that were frequently inaccurate and misrepresented the value of the property. We also saw closings being delayed as a result.”

The new law will create a level playing field for AMCs and appraisers. Appraisal management companies will now be required to work within the nationally sanctioned Uniform Standards of Professional Appraisal Practice (USPAP).

“Thanks to a collaborative group of all stakeholders providing input into this bill, this new legislation provides protection for consumers and industry participants alike,” according to Michelle Bradley, chair of PAR’s Appraisal Management Company Task Force. “Those who own or operate AMCs will be accountable to industry standards and state regulation.”

The new legislation also:

• Implements a registration and renewal fee of $1,000
• Implements a $20,000 bond or letter of credit to secure the faithful performance
• Requires all appraisal reviews to be conducted by a certified or licensed appraiser
• Requires AMCs to adopt Uniform Standards of Professional Appraisal Practice (USPAP) record-keeping rules.

The Keystone Advantage Assistance Loan (KAAL) will provide an amortized subordinate loan of up to 2 percent of the sales price (maximum of $4,000) to qualified borrowers obtaining a PHFA first mortgage. This program will replace the agency’s Keystone Assistance and Keystone Government Assistance Loan programs.

“The Keystone Advantage Assistance Loan will allow qualified homebuyers to borrow a portion of the funds needed to cover their downpayment requirement and/or closing costs associated with the purchase of their home,” according to Kate Newton, PHFA homeownership programs director. “This loan will carry the same fixed interest rate as the first mortgage but a term of 10 years. And, there’s no prepayment penalty for paying off the Advantage loan early.”

Other requirements include:

• Assistance loans are only provided to meet maximum PHFA financing guidelines and/or closing costs
• Homebuyers must meet the requirements of the Keystone Home Loan or the Keystone Government Loan program
• May not be combined with any other PHFA assistance programs, except the Access Modification Loan Program.

Advantage loans may be used on FHA, VA or RD loans and all applicable underwriting requirements apply.

PAR President Frank Jacovini, third from left, with members of the YPN Advisory Committee

If there is one thing Realtor® Adrienne Loughery of Lansdale is passionate about in her career it’s helping to create opportunities for younger Realtors® to engage and bridge the generational gap in the real estate industry.

Loughery was instrumental in launching the Pennsylvania chapter of Young Professionals Network (YPN) to encourage more Realtors® to aid associations in technology, education, networking and leadership development. She is currently chair of the YPN Advisory Committee; a committee she says has been able to accomplish a lot in a short amount of time.

Three years ago, the National Association of Realtors® officially recognized YPN in Pennsylvania. Today, the chapter has grown its membership statewide and continues to expand its benefits to members. In response to the hard work of the original advisory board, PAR voted in September to add PA YPN as an official PAR committee. PA YPN held its first official committee meeting at PAR’s Winter Business Meetings earlier this month. Not only were the bulk of attendees at the YPN meeting first time attendees of the PAR business meetings, three members were able to attend the meeting virtually, a first for the association.  

“By organizing the state network first as primary hub of information for our members and local associations, we have been able to assist local associations and grow YPN membership,” said Loughery.

“PA YPN is for the young in age, young in experience and young at heart. We want people of all ages to attend our events. By focusing on hosting and facilitating social opportunities for members to network and learn from one another, we have helped to enhance the value of Realtor® membership,” she added.

With over 244 combined chapters at the local and national level, YPN not only establishes networking and educational opportunities for Realtors® but also works to raise awareness for RPAC, Calls to Action and membership recruiting.

“We are making good use of the opportunities we have been given and we hope it continues,” she said. “Our members are in key positions and continue to push the agenda of PAR. We love the association as much as we love YPN.”

Among the goals PA YPN hopes to accomplish are to get second generation leaders involved. They plan on continuing to provide social and educational opportunities for members to network and learn from one another. The group has several events planned for the future including a statewide softball tournament where local associations will compete against one another. All proceeds will benefit the Realtors® Relief Fund.

The YPN Advisory Committee is currently looking for dedicated Realtors® to join its 2012 work groups. Realtors® do not have to be a member of YPN to participate. Each work group is limited to six participants, with some positions already filled by YPN Advisory Committee members. 

Visit PAR’s website for a complete list of work groups including duties and responsibilities. Members are also encouraged to join PA YPN’s Facebook group.

Melissa Sieg from the Centre County Association celebrates their award.

Local associations’ 2011 fundraising efforts for the Realtors® Political Action Committee (RPAC) were celebrated during the RPAC Awards Luncheon last week in Harrisburg. Investments in RPAC totaled $492,888 last year. More than 160 PAR members attended to mark the annual recognition event as RPAC Chair Ron Croushore announced the fundraising achievements.

In the first category, local associations were recognized for the total percent of their goal achieved. The goal is determined by multiplying membership counts on April 15 by $15, the fair share amount determined by NAR. Associations receiving awards included:

Small Association Category
First Place: Bradford-Sullivan Association with 235%
Second Place: Greater Meadville Board with 193%
Third Place: Cambria-Somerset Association with 180%

Medium Association Category
First Place: Centre County Association with 297%                  
Second Place: Schuylkill County Board with 180%
Third Place: Butler County Association with 165%                                

Large Association Category
First Place: Greater Harrisburg Association with 172.85%
Second Place: Realtors® Association of York and Adams Counties with 171.35%
Third Place: Reading-Berks Association with 137%                                  

Extra Large Association Category
First Place: Lehigh Valley Association with 195%
Second Place: Montgomery County Association with 184%
Third Place: Realtors® Association of Metropolitan Pittsburgh with 149%                        

The second category recognized was highest membership participation:                   

Small Association: Bradford-Sullivan Association with 86%
Medium Association: Pike/Wayne Association with 74%
Large Association: Realtors® Association of York and Adams Counties with 35%
Extra Large Association: Lehigh Valley Association with 37%

The following associations achieved 50% participation: Allegheny Highland Association, Cambria Somerset Association, Elk-Cameron County Board, Fayette County Board, Greater Allegheny-Kiski Area Board, Greater Meadville Board, Greater Scranton Board, Lawrence County Board, McKean County Association, Mifflin-Juniata County Board, North Central Penn Board, Warren County Board, and West Branch Valley Association.

Special recognition to the associations that raised the most dollars during the 2011 fundraising year:

Small Board: Cambria-Somerset Association with $4,919 raised
Medium Board: Centre County Association with $14,627 raised
Large Board: Greater Harrisburg Association with $37,958 raised
Extra Large Board: Suburban West Realtors® Association with $90,310 raised

The RPAC Trustees set the 2012 fundraising goal at $550,000.

• Chair: Guy Matteo
• PAR President Appointment: Don Roth
• Past President Council Appointment: Jim Helsel
• District #1 – Peter Lamandre
• District #2 – David Brandt
• District #3 – Stephanie Burg-Brown
• District #4 – Jeff Crosby
• District #5 – Louann Hoffman
• District #6 – Lisa Dowling
• District #7 – Susan Vilasi
• District #8 – Carol Palomera
• District #9 – Eileen Campbell

The board approved the service which establishes a fee-based PAR association management service that can assist local associations in delivering core services to members. These services could be offered to local Realtor® associations or associations unaffiliated with the Realtor® family.

The board approved the hiring of a professional consultant to organize a coordinated internal messaging program with local associations to promote the value of Realtor® membership.

Representative Dick Stevenson (R-Butler), who sponsored House Bill 398 to regulate appraisal management companies (AMC’s), spoke to PAR’s board of director’s regarding the recent passage of the bill. PAR worked together with Rep. Stevenson and the Appraisal Institute to forward this legislation. Rep. Stevenson was a certified general appraiser for more than 20 years and is a past president of the Greater Mercer County Board of Realtors®.

“I’m here to thank you. Without PAR, this bill would not have become a law. I hope this serves as a reminder to keep doing what you’re doing and support PAR,” said Rep. Stevenson.

Brian Hudson, Sr., executive director and chief executive officer of the Pennsylvania Housing Finance Agency (PFHA), reviewed new PFHA programs for Realtors® to assist consumers.  “I want to thank PA Realtors®,” said Hudson. “Without you, we would have no product to sell. We are looking forward to a fantastic 2012.”

Treasurer Ron Croushore reported a 2012 budgeted surplus of $7,700 which was approved the board. As of now, Croushore says there are no yearend budget projections.

The 2012 PAR board of directors were installed by Realtor® and 2016 NAR presidential candidate Jim Helsel.

In other business:

• The board announced the return of the Leadership PAR program with the 2012-2013 class to begin at the Spring Business Meetings. Applications must be completed and received by PAR no later March 1, 2012.
• The board approved the establishment of a “report card” that would rate existing agent evaluation systems to help members and consumers understand which systems use the best evaluation criteria designed to indentify agent professionalism and to develop informational programming around those criteria.
• The Realtors® Political Action Committee (RPAC) raised $25,600 at the Business meetings, surpassing their goal of $20,000.
• The board granted Realtor® Emeritus status for: James McGoey, Greater Erie; Ann Lewis and George Sailus, Greater Wilkes-Barre; George Andralis, Dolores Breisch, Michael Engle, Donald Frederick, Charles Inhoff, John Judd, Lloyd Kemmerer, John Monaghan, James Nolfa, Edward Sample, George Santoro, Gordon Schantz, Thomas Stupak, Peter Sukeena, George West, Richard Woodring, Jr., and John Yurconic, Lehigh Valley Association.

Past President Jerry Speer (left) gives the oath of office to Frank Jacovini as Michele Jacovini, his wife, looks on

Frank Jacovini, e-PRO, GRI, became the 89^th president of the Pennsylvania Association of Realtors® (PAR) at the annual inaugural banquet last night in Harrisburg. Jacovini’s installation was conducted by Past President Jerry Speer.

In his speech, Jacovini thanked those in attendance including members of the Pennsylvania Senate and House of Representatives, State Real Estate Commission members, PAR past presidents, colleagues and PAR staff. He gave special thanks to his wife, Michele; his son, Jason; his mother Rita and his mother-in-law, Carol.

“It’s a great day to be a Realtor® in PA and I’m very excited about being the president for the Pennsylvania Association of Realtors® for 2012,” said Jacovini. “I look forward to the challenges that leadership brings and I appreciate the opportunity to serve this illustrious association.”

Jacovini noted that the real estate industry has faced many great challenges over the years and he feels Realtors® will continue to overcome them all.

“We’re going through an historic time and someday we’ll all look back and be amazed at what we were able to accomplish,” he said. “Although tough times don’t last, tough people do.”

“We are dedicated to the principle that property ownership is critical to a free and democratic society and committed to promoting and maintaining the highest level of professionalism in our industry. This unselfish service to PAR and to your local association is vital to the overall success and relevancy of the Realtor® movement,” he added.

A Realtor® since 1992, Jacovini is the broker of record of Howard Hanna Philadelphia Realty. He specializes in helping homeowners sell their properties with the least amount of inconvenience and trouble. He is a member of the Greater Philadelphia Association of Realtors® and served as its president in 2000 and was awarded Realtor® of the Year that same year. He was named to the prestigious Hall of Fame in 2003.

As president, he serves on various PAR committees this year. He has chaired several PAR committees including the Finance Committee, the Issues Mobilization Committee and the Convention, Advisory and Marketing Group. He served two terms as District 3 Vice President.

PAR’s 2011 President Guy Matteo was recognized for his work last year. Matteo said “Thank you for the opportunity to serve this great association in 2011. It has been my honor to serve as president of PAR.”

NAR Region 2 vice-president J. Gregory Conners installed PAR’s other officers including: President Elect Bette McTamney, First Vice President Kim Skumanick, Treasurer Ron Croushore, and District Vice Presidents Patricia Copeland, District 1; Kathy McQuilkin, District 2; Paul Garvey, District 3; Helen Miernicki, District 4; Raul Azpiazu, District 5; Joseph Volpe, District 6; John Capers, District 7; Robina “Bebe” English, District 8 and Eileen Campbell, District 9.

Musical entertainment for the evening was provided by The Business and Mummers All Stars.

From touring open houses to making offers, the show takes viewers behind the scenes as buyers work with a Realtor® to decide which home is best for them.  Each episode shows the process as buyers search for a home.

When submitting an application for the show, candidates must be a Realtor® in a major U.S. city and have clients who are ready to buy a home or in the last stages of making an offer. If selected for further consideration, candidates will be asked to submit an audition video.

The audition video would include the following:

• Your name, agency and area you work within.
• What was the challenge of working with your clients?
• What was your strategy for finding them a home?

Realtors® should contact their clients to see if they would be interested in being on the show with them. Buyers are encouraged to be energetic, fun and have specific home buying needs. Once clients agree to apply, they must fill out an application and will be notified if their submission is up for consideration.

Last year, HGTV camera crews followed Pittsburgh area Realtors® and their first time home buyers for the network’s show My First Place, which documents first time home buyers’ experiences when searching for a home.

Realtor® applicants are encouraged to read the casting company’s frequently asked questions section on their website before applying. There is no application deadline. Filming takes place year round.

State legislators return to session next week. PAR will continue to work the Hill, encouraging legislators to pass House Bill 398 (the AMC legislation), which would require Appraisal Management Companies to register with the state.

When we’re following a bill like this, sometimes it seems like it’s good to go, then several other hot-button issues, like Marcellus Shale and redistricting, jump ahead of something we’re following, consuming both the House and Senate’s time. This makes it incredibly difficult to get anything else on the agenda.

It seems like we’ve been talking about the AMC legislation forever. But the process of getting legislation passed has numerous steps and hiccups. Patience is definitely a virtue when you spend any amount of time on the Hill.

Let’s look at the progress we’ve made so far. The proposed AMC legislation was introduced in the state House early last year. After that, it was referred to the House Professional Licensure Committee, where it was vetted and voted out of committee. At this point, you might think, “Hurray!” But we still have a lot of steps to go!

It’s returned to the House for first consideration. The bill passed the House on both first and second consideration, then it was sent to the House Appropriations Committee. This committee reviewed the bill for any fiscal impact, approved it and sent it back to the House. Then the House approved it for the third and final consideration. Wow – all those steps and we’re not even halfway there yet!

In May, the bill went onto the Senate where it was referred to the Senate Consumer Protection and Professional Licensure Committee. That committee amended HB 398 and finally voted it out of committee in October. At this point, the bill is sent to the full Senate, where it was passed on first consideration and forwarded to the Senate Appropriations Committee. Appropriations approved the bill and the Senate approved the bill on second consideration in December. And that’s where this bill is at this point.

We’re hoping the Senate will have its third and final vote on this legislation in the coming weeks. Then, because the bill was amended by the Senate, the bill will return to the House to be voted on concurrence. Once the House concurs, HB 398 will be passed to Gov. Tom Corbett to sign into law. Now you understand why we feel like we should have a parade when the governor signs a piece of legislation!

This isn’t the only issue PAR is following through this process. We’re monitoring more than 300 pieces of legislation which could have an impact on your industry and private property owners. Currently, the most notable legislation is on Mechanic’s Lien and Seller Financing. Both of these are at the top of our agenda and we hope to see movement on these issues in the coming months.