March 18, 2013 – Post No. 6 – Yes, I know, using Jamie Dimon’s name in the same sentence as the words professional and standards is an insult to the words professional and standards. Per the Fall 2012 Edition of the CES Real Estate Market Report, the Who Am I? section that listed fines, losses, and violations going back to 2002 and totalling over $12 Billion was about none other than Mr. Dimon.
In that report, I expressed my belief that the banking industry had to get rid of this one final CEO that is directly linked to the current crisis. Until the leadership of that generation of bankers is fully purged, and punished, the public is not going to change its negative perception of this industry. One prominent man from the renegade era remains in power.
Hopefully, the events of the past week will finally result in enough shareholder and public outcry to force his resignation or firing. The Senate panel, led by Republican John McCain, stated that JPMorgan Chase “misled investigators” before “lying to investigators.” An email was made public showing Mr. Dimon directly approved the credit derivatives trading that resulted in a $6.5 Billion loss. Also, a former employee has confirmed that Mr. Dimon knew all about the events in that department while publicly stating he didn’t.
For those who think my opinion might be a bit strong, please realize I have yet to set up a website called FireJamieDimon.Com 🙂
From unethical to ethical we change the topic. This week The Appraisal Foundation published a document that includes revisions adopted for the 2014-15 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP). You can access the document at:
Link: https://appraisalfoundation.sharefile.com/d/sc1a9de474cd4769a
Significant changes include:
- Elimination of the terms Self-Contained and Summary – simply replaced with Appraisal Report
- Restricted Use Appraisal Report will remain a report type
- Standards 4 & 5 (Appraisal Consulting) have been eliminated
- Standard 3 Appraisal Reviews (aka Technical Reviews in the industry) must now report ‘the date of the appraisal review report’
Fee appraisers and bankers should read over the document and prepare ahead of time to make the necessary changes to Requests for Proposal, Engagement Letters, Appraisal Review templates, etc. The changes should be implemented as of January 1, 2014.
CES Item of the Week
Each week I will post some interesting data we obtain from our review of appraisals nationwide. You can use this data, we only ask that you recognize Collateral Evaluation Services, LLC as its source.
In 2012, the appraisals of apartment complexes in Northeast Florida used an average overall capitalization rate of 8.4% with an average expense ratio of 43.6% (of EGI). Unlike most surveys that obtain statistics from market participants or sales, these average figures represent conclusions from actual appraisals.
Speaking Engagements
I will be teaching the Appraisal Institute’s Marketability Studies seminar on April 18th and their Appraisal Review seminar on June 7th – both seminars will be held in Louisville, Kentucky and provide 7 hours of continuing education (http://www.bluegrasschapter-ai.org/education.php). Also, on April 30th, I will be presenting an appraisal review seminar for the Ohio Bankers League in Columbus, Ohio (http://www.ohiobankersleague.com/aws/OBL/pt/sd/calendar/25622/_blank/layout_details/false).
Happy National Lacy Oatmeat Cookie Day,
George R. Mann, MAI, SRA, MRICS
Managing Director
Collateral Evaluation Services, LLC