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Hamilton’s Allegra Printing and Imaging
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| A locally owned and operated business with a heart as big as the Bitterroot Valley |
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| By Shannon Selway |
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Allegra Printing and Imaging, locally owned by Brian and Michelle Mendenall, is an ultra cool business. If it involves any sort of printing or imaging, they can do it and do it with flawless precision. The shop recently doubled in size, consuming the entire building which is a good thing too as that extra space was badly needed to keep up with Allegra’s ever-expanding services. Allegra has received multiple awards for its works and a very coveted Business of the Year Award, presented by the Bitterroot Valley Chamber of Commerce in 2007.
Brian and Michelle Mendenall found their way into the printing and imaging business in a surprising fashion. Both Brian and Michelle were independent catastrophic claims adjusters, which was a career that took them all over the nation, and they mostly traveled as a team. They dealt with disaster sites ranging from biohazard spills to hurricane damages. Some adjuster assignments required them to be away from home for months at a time, but they loved what they did and were really good at it. However, the Mendenalls wanted children, and such a lifestyle conflicted with that desire.
Fate stepped in when Michelle took a stained glass class, which is where she heard of the opportunity of an Insty Prints franchise (a franchise owned by Allegra Print and Imaging). The concept of running such a business seemed to fit. Their combined talents would complement such a business. Michelle holds a communication degree and Brian holds a business degree. So, the then seven-month-pregnant Michelle boarded a plane and met Brian (away on an assignment) in Michigan for a two-week training course on the franchise. Then, in 2002, Brian and Michelle established Hamilton’s Allegra Printing and Imaging, and have continued to serve the Bitterroot Valley - and beyond - ever since.
Brian and Michelle Mendenall’s Allegra Printing and Imaging delivers much more to the Valley than just producing crisp and clear photocopies for their customers (the “meat and potatoes” of a printing business), and what they can do outside of that expected function of a print shop is, in fact, impressive.
Along with award-winning printing services, the Mendenalls team up to create the perfect fit for the customer by implementing ideas to improve the effectiveness of “the message.” Brian, Michelle and their team consider themselves as partners with their customers for powerful communications. They continuously add new services and communication tools. One such new service is the embroidery machine for apparel, added in January.
The key ingredient to Allegra’s success is the concept of team. Allegra’s “team” is 10 strong (including Michelle and Brian).
“The team is dynamite. We have the most talented people in the area, and all from very different ages,” Michelle said. “They range from 19 to retired, all dependable and all bright.”
Brian added, “We are very fortunate to have working people that value their job, plus, they are fun to work with. They have an attitude not to let us down, which is so important because there’s a lot going on around here and we have running deadlines all the time. Most say they never had a job where the days go by so fast!”
Brian said their employees all have very different print, communication and design backgrounds. Each employee is cross trained on more than one machine, which aids to the delivery of the product on time and allows for the days when someone might be home sick or on vacation. Production is also enhanced because Brian and Michelle know how to operate every machine and can create the product when needed. All that knowhow and talent makes a big difference because of Allegra’s diverse services, which include: digital color printing, full color printing, graphic design, corporate identity, direct mail services, newsletters, promotional products, embroidered apparel, silk screened apparel bindery services, high-volume copying, thermography (raised ink), and large format. Coming soon is a service done on a Pitney Bowes machine that takes billing statements, inserts return envelopes and spits out the whole bill - sealed and ready to go.
The Mendenalls give back to the community big time, and are dedicated to helping charities, schools, healthcare institutions, trade and business associations, and other nonprofit organizations. The Mendenalls recognize that in this tough economy, nonprofit organizations must strengthen their visibility and name recognition. They help nonprofits get that polished and dynamic look that can make a difference in the generation of fundraising. One avenue of assistance is their FootPrint Fund, a $10,000 annual grant. So far, since the grant’s inception, the tally of donated goods and services provided is well over $35,000.
Nonprofits apply in January and February. Because the Mendenalls didn’t want a bias in determining the recipients, they have created a board that consists of community leaders. Although they are members of the board, they always make sure they are in the minority to ensure objectivity. Letters go out to the fortunate nonprofit organizations that will receive the monies. Recipients then meet with the Mendenalls where they get going on strategy in crafting their message.
“We spend a lot of time on strategy…figuring out who they are and what they are trying to do. We ask them ‘who is your audience,’ and such,” Michelle said. The same attention goes to all customers. “We don’t just take the order.”
Check out Allegra Print and Imaging at 1151 N. First Street, Hamilton located a smidge behind K-Mart. You might even be greeted by Annie, Allegra’s loveable canine fixture.
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Sweetness in Stevensville
| Fledgling festival pays tribute to the busyness of bees |
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| By Rod Daniel |
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When folks promoting commerce in the oldest community in Montana went searching for a festival theme, they settled on one of the oldest, most versatile products in the world.
Deb Lackas, co-chair of the North West Honey Fest, recalls the day she and her Stevensville cohorts decided to give the honey industry its day in the sun.
“We were taking advantage of a swap between towns and 40 or 50 of us went to Philipsburg for a day,” Lackas said. “We’d been talking about coming up with a signature event with the (Stevensville) Main Street Association. We wanted to do something educational.”
Marcia Diamond pitched the idea of holding an event celebrating the virtues of honey, Lackas said, and after a little research, everyone agreed that the sweet tasty liquid and the buzzing industry that surrounds it were worthy of a celebration.
“The more we looked at honey, the more we realized its value to our community,” Diamond said. “It’s a fascinating industry. Every bit of the honey-making process has a very important use.”
Indeed, beyond creating the tasty and nutritious spread we put on our toast, honey bees perform the vital function of pollinating most of the world’s fruit and vegetable crops. In addition, beeswax has countless uses in products such as candles and lip balm, and propolis collected by bees is used in products such as toothpaste.
With such a sweet product to hang their hat on, Co-chairs Lackas and Diamond pounded the pavement to raise funds for a celebration worthy of a festival. Local sponsors including Travel Montana, Northwestern Energy, Ravalli County Bank, Bitterroot Chamber of Commerce, Stevensville Community Foundation, Allegra Print and Imaging, the Shirt Shop and Cherry Creek Radio all chipped in to make the event a success, and Häagen-Dazs contributed $5,000 as part of its national promotion to save honey bees.
“We were able to buy educational materials including DVDs and videos to distribute to schools up and down the valley,” Lackas said.
The festival will be held on Saturday, September 12, from noon to 5 p.m. at Lewis and Clark Park in Stevensville. Admission is free and there are activities for people of all ages.
“We’ll have free childcare at the Bee Hive Pavilion for kids 0 to 6,” Diamond said, “so parents can enjoy the festivities.”
Festivities include a food court featuring foods made with honey; beer and wine tasting featuring honey beers and mead; a juried art show sponsored by Stevensville Art and Sculpture Society; live music; cooking demonstrations, honey tasting and educational displays.
For Nicole Ulibarri, a third generation bee keeper and co-owner of Morris Honey Company, the North West Honey Fest could not have come at a better time.
“Our industry is pretty far behind as far as research and promotion,” said Ulibarri, who also serves as president of the Montana Bee Keepers Association, “so we’re really excited to be able to educate people and share the joys of honey.”
Morris Honey Company has 1,200 bee colonies which Ulibarri chauffeurs from Montana and the Dakotas to Southern California. Her bees help pollinate a high percentage of the country’s almond groves, as well as sweet clover, buckwheat and alfalfa fields.
During her recent travels. Ulibarri collected more than a dozen samples of raw, unblended honeys that she will share with Honey Fest patrons in a sampling booth. The uniquely flavorful samples range from the lighter knapweed and clover honeys to the dark, molasses-like avocado and buckwheat honeys.
“People can start with the lightest honeys and work their way to the darkest ones,” she said. “It will be a great opportunity to learn what raw, unblended honey tastes like.”
Unfortunately, Ulibarri said, much of the so-called honey that people eat is blended with corn syrup and other inferior products to produce a product that barely resembles true honey.
“Many people think they don’t like honey only because they’ve never had the opportunity to taste the real thing,” she said. “The festival will allow people to sample some of the best honeys in the world.”
The Montana Bee Keepers Association will team up with Montana Department of Agriculture, University of Montana and Bee Alert, a research group out of Missoula, to provide a plethora of educational material on topics ranging from pollination biology and honey nutrition to the history of bee keeping and research on the widespread Colony Collapse Disorder.
“Last year we lost 80 per cent of our hives to colony collapse,” Ulibarri said. “Everyone wants a clean answer to what’s causing the collapse, and really, there is no easy answer. What we can do is educate people about the many factors that go into producing honey.”
She cites crop and plant diversity as one of the most important components of healthy bees and quality honey.
“Pollen is protein and nectar is carbohydrate,” she said, “and both are critical. When a farmer sprays a pesticide to kill a pest or a weed, it can have drastic effects on the bees. Nutrition for the bees is important, and nutrition means diverse pollen sources.”
In the Bitterroot, some of the best honey comes from knapweed, she said, and as the knapweed populations go down because of local weed control efforts, the amount and quality of honey produced in the valley will also go down.
“If you’re wiping out knapweed, you’d better find another source of pollen, because knapweed makes some incredible honey,” she said.
For more information about the North West Honey Fest, visit www.northwesthoneyfest.com.
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Historic Council Grove State Park
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| For some it is a recreational site; for others, it is hallowed ground and a land that represents great loss as it was where the Hell Gate Treaty was signed. |
| By Shannon Selway |
The Missoula area Council Grove State Park has only been around since 1978 as a public state park, but little has changed about its appearance since July, 1855, when a life-altering event occurred there for thousands of Native Americans.
Council Grove is the purported site of what is considered a solemn occasion for the peaceful Native American Tribes of Salish, Kootenai, and Pend d’Oreille. It was where the three tribes, with nearly 2,000 members attending, gathered for a treaty with the United States Government. Tribal representatives with Chief Victor (a/k/a Chief plenty Horses) as head chief, met with the Governor of the Western Territory and Superintendent of Indian Affairs, Isaac Stevens. The three tribes came from the north, south, and western Montana (and even as far as the Billings area), and also as far away as Idaho and Eastern Washington. The meeting place for the treaty around Missoula seemed appropriate, as it was a place that all three tribes commonly shared.
The tribes came with very different expectations than what was on the table. Governor Stevens’ agenda was to secure title to most of Western Montana and open it up for white settlers and to open up a route to the West. The tribes were lead to believe the purpose of the meeting was securing the government’s protection from their enemy, the Blackfeet Tribe. Much was lost in the “negotiation” process from poor translation, and also the tribes’ naive understanding of what a treaty entailed. The tribes witnessed their leaders unwittingly sign away (by the mark of an “X”) rights to massive areas of ancestral lands about 21,000 square miles, close to the size of Western Montana. What was signed was Hell Gate Treaty, a binding agreement containing 12 articles. The government was to pay the tribes, termed as the Flathead Nation, $120,000 in payment installments.
The Treaty combined the three tribes to what is know known as the Confederated Salish and Kootenai Tribes, becoming a sovereign nation, sharing the 2,000 square-mile reservation in the Flathead Valley.
In 2003, a memorial was installed paying tribute to the Confederated Salish and Kootenai Tribes. It was designed by the Confederation members and contains all 12 Articles of the treaty, which is cast in bronze. The bronze is sandwiched between two other panels which reflects the tribes’ history before and after the Treaty.
The park’s visitors can expect to meander about in a place that has changed little over the last 200 years. It provides a large meadow that stretches from the parking lot all the way down to the river. And, oh, if the trees could talk…There are still many old pine trees that were around when the Treaty was signed. The Salish referred to the Council Grove grounds as “chilmh,” which meant “the place of tall trees with no limbs,” likely referring to the large ponderosa pines dotted throughout the area. Today, you will find that name still fits the land.
The park draws many visitors because of its historic significance, but it also sees many coming there to take in the unspoiled beauty and to partake in some of the recreations available.
It offers a great place for a large-group gathering. It has picnic tables, a well-maintained outhouse, drinking water (via manual water pump), and most of the park is handicap accessible. Its wide-open meadow works great for tossing a football or Frisbee around, but what probably draws most there is the access to the Clark Fork River.
On any given day, year round, there are fisherpeople tossing a line in. When the Clark Fork approaches the Council Grove area, it is divided by islands. In late summer and during autumn months, the river flow diminishes enough to wade across to the islands. There, many folks take in fishing from that vista.
As hunting is permitted by the park, the island is also popular with bow hunters who are drawn there in the fall for a chance at harvesting whitetail deer. It is not uncommon to see water fowlers set up blinds and decoys in the park’s backwaters.
The park is also an attraction to swimmers and sun worshipers when the mercury rises high. It has several areas of natural sand and rock beaches; many of the beaches and swimming areas are accessible directly from the parking lot’s paths; some of the best spots are for the picking if you wade across the river (if you pick the right spot to wade, it often isn’t any deeper than mid-calf). Despite the low river flow, there are plenty of safe swimming holes (but do respect that it is a river and carry appropriate lifejackets, etc. with you). In August and September, the Clark Fork River has a temperature that is refreshing, but not too cold.
Birdwatchers come in flocks (pun intended). Council Grove is home to a wide variety of birds such as flickers, sapsuckers, great blue herrings, blue-winged teal, many woodpecker species, and sometimes, the great horned owl. Of course, there are geese honking nearby and ducks quacking about.
Council Grove State Park is considered a primitive park and is governed by Montana fish, Wildlife and Parks. It is a no-fee park (great price, huh?).
Regulations of the park
are as follows:
• Day use only no camping
• Pets are allowed, but must be leashed
• Motorized vehicles are restricted to parking areas please don’t drive on vegetation
• 15 m.p.h. speed limit
• All groups activities of 30 or more people must obtain a special recreation permit
• Fires allowed only in established manufactured grills or camp stoves
• Discharge of weapons prohibited (including paintball guns).
• Exception: shotguns and archery allowed September 1 January 15th for lawful hunting
• Pack in/pack out trash
Council Grove State Park can be found on Mullan Road, 7 ½ miles west from the Mullan/Reserve Street intersection in Missoula. It’s only about a 10 minute drive from there. For questions about Council Grove, or any other area state park, contact Montana Fish, Wildlife and Parks, Region 2 Office, 3201 Spurgin Road, Missoula, Montana, 59804 (406) 542-5500.
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| HISTORY: The Lure of the Birch Creek Shaman |
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By Wm. W. Whitfield
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Summer is too short in the Rocky Mountains! Well, I guess that’s just a matter of opinion, but it’s how I feel, even though I’ve gradually come around to accepting it. All I can really do is get out there and enjoy it while it lasts, because as I’ve already said, it happens fast! This year we took advantage of the long days of summer and booked a BLM tour of a special pictograph site located in central Idaho. The Birch Creek Valley lies just south of the Lemhi Valley, and is connected by a wide-open bench known as the Gilmore Divide. The valley itself is high and wide, and hemmed in partially by the southern end of the Beaverhead Range on the east, and the Lemhi Range on the west. The extreme southern end of the valley opens up out onto the Snake River Plain, where a mere trickle of what’s left of Birch Creek eventually disappears into the volcanic wasteland that makes up that particular part of the Tater State. Still, despite the obvious arid conditions, snow-clad mountain peaks reach up forcibly into the immense blue skies on both sides of the valley, towering majestically over the long-empty spaces resting peacefully below.
There is no town really to speak of in the Birch Creek, just a lonely gas pump outside a little bar and café marked with a dot on the map as Lone Pine, and it was there that we met the ranger who would guide us to the pictograph sites. The ranger had added another couple from Idaho Falls to the group, so all in all there were seven of us, and I honestly believe that we actually managed to double the population of the valley that day! Even though the valley is relatively uninhabited today, it still serves as a main thoroughfare for traffic traveling north and south between Salmon and Idaho Falls on Highway 28. This route has served native populations for eons, and according to an interpretive sign along the highway, one of the earliest recorded visits by white men was a fur-trapping party that passed through in 1818. Joseph Cote was a French-Canadian trapper who had traveled along with Michel Bourdeaux and Francois Gregoire on David Thompson’s Columbia River Expedition of 1811. After his tour through the valley in 1818, all of the trappers and mountain-men came to know the isolated region as Cote’s Defile.
Archaeological digs done in the early sixties have shown that human habitation goes back more than ten thousand years in the Birch Creek Valley, although there was apparently a period of roughly four thousand years where extreme drought conditions seem to have kept activities down to a bare minimum. There are really only a couple of live streams in the valley, and Birch Creek itself is born out of a series of springs located at the upper end of the valley near the Gilmore Summit. The area encompassing this upper region has been inhabited throughout history, even through the driest of years. The entire north end of the valley was originally a boggy marshland, until cattle ranchers moved into the area in the late 1800’s and drained the wetlands for the purpose of reclaiming and irrigating the rich rangeland.
Our little caravan headed out from Lone Pine through the pungent sage towards the east side of the valley, following a dry gully up to the mouth of a rocky canyon. Instead of following the road through the canyon, we suddenly veered off, making a steep ascent up a switchback that brought us out onto a rolling steppe covered in yellow lupine and balsamroot, and various other types of semi-arid loving wildflowers, which stretched out endlessly across the gradually sloping ridges. The road took off on a course due north over these long slopes of sagebrush and flowers, occasionally dipping down into arroyos or dry gulches, and then quickly climbing back up onto the next long span of tableland. At times it almost seemed like more of a rangeland roller-coaster ride than anything else! We passed by the mouths of several enticing canyons as we worked our way to the first site, which was tantalizingly referred to as Jaguar Cave. Finally we turned into a narrow canyon where large gray and eroded rock outcrops guarded the entrance. A huge cliff-face on the north side of the canyon, commonly known as the Shaman’s Overhang, provided the indigenous people with an excellent shelter from the weather, complete with a sunny southern-facing exposure.
After passing through a rustic rail fence we began our climb up the grassy slope to the primitive site. There are several panels of pictographs located along the edge of the rock shelter, most are tally marks and stick figures in red ochre, but the prize of this site is an eighteen inch Shaman or medicine man, painted in white pigments. These pigments were usually made from powdered minerals and were added to a base such as animal fat, blood, eggs, tree sap, or vegetable oils as a bonding agent. Three other prominent pictographs accompany the Shaman, including what appears to be the likeness of a supernova that occurred over the starry skies of North America in 1045 A.D. This unusual celestial event was actually recorded through pictographs and petroglyphs at several other Native American sites across the west. Experts believe that the four large images were daubed onto the rock by a medicine man that may have been seeking out a source of spiritual power connected to an alternate reality. The chalky-white Shaman seems to deliberately hover over the other images in a masterful pose, as if he were conjuring up the ghostly visions for all to see.
A little ways off, on the lower end of the overhang, a narrow path leads down to the entrance of a hidden grotto. The entrance to Jaguar Cave was apparently blocked off about nine thousand years ago, and was only discovered during an archeological dig at the site in the 1960’s. Even though there are no pictographs in the cave, a 12,000-year-old period of human habitation was revealed as the scientists uncovered a horde of stone tools scattered around an ancient hearth littered with a wide variety of butchered animal bones. Over forty species of animals were found in the cave, including camels, lemmings, caribou, and the extinct North American lion. The excavation also proved that the cave was used for about three thousand years before the entrance was totally blocked off by falling debris from above. On the muddy floor of the cool damp cave, we witnessed the fresh tracks of a large wolf that had passed through more recently. We were also pleased to note that the remote location was extremely well preserved and remarkably free of the thoughtless scribbling and bothersome plundering that is all too often encountered at many similar sites.
After a thorough examination of the paintings, we turned around and headed back to Lone Pine for lunch.
When everyone had finished up their meal, we all drove south to another rock shelter near Blue Dome, which reportedly gets its name from the rock outcrop at the head of Skull Canyon. The BLM ranger was supposed to have a key that would allow us to drive through a tract of private property to the site, which is located on a landlocked parcel of rim-rock owned by the Bureau of Land Management. Apparently, the padlock on the gate had been changed recently, because the key wouldn’t open it, and the ranger made a hasty call to his supervisor to ask what he should do next. In the end, we left our vehicles behind and passed through the barbed wire fence on foot, with the ranger jokingly reassuring us that we “probably wouldn’t be shot” if we all stuck together!
The Bison Rock Shelter is one of several that were formed long ago when Birch Creek was forced up against the eastern mountain range in prehistoric times. The creek gradually moved more towards the center of the valley as the ice-age glaciers of the Lemhi Range receded. After crossing a large pasture, we came to a rail fence, which keeps the wandering stock from gathering in the large overhangs during bad weather. The pictographs here are mostly on two large panels and represent a lot of different animals and symbols, many of which will forever remain a mystery to modern men. One headless human figure seems to be walking along with his own head held in one of his hands! Here again most of the images are fairly well preserved, though because of the proximity to the highway, there are some signs of disrespect in the form of graffiti and vandalism. The buffalo seems to be the most prominent creature portrayed, and most of the paintings are done in red ochre, though some blue, yellow, and black pigments were also used.
As we said our goodbyes to the BLM ranger and our friendly Idaho companions back at the gate, a jeep pulled up into the wayside and a ranch hand walked over to check the padlock on the chain. The ranger went over to explain what we were doing, and we couldn’t help but notice that the hired help was actually packing heat! “Oh,” said the ranch hand, “you all were out looking at the hieroglyphics, huh? Lots of people do that.” On our return trip we stopped at some charcoal kilns that were left over from a brief period when the valley came alive with mining activity in the 1880’s. I understood the charm of precious metals that had brought so many miners to this desolate place, but in my case it was the fleeting days of a short summer and the image of a Birch Creek Shaman that had lured me away from my Montana home.
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REAL ESTATE: Real Estate Appraisals with a Qualified
“Opinion of Market Value”
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| By Darwin Ernst |
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One of the biggest problems in obtaining a valid opinion of market value is determining who is qualified to actually provide you with one. Even in our current economy, the choice is difficult for many. The potential sellers of real estate usually rely on a real estate agent. Buyers are forced to rely on how their financial lender chooses qualified person(s). The financial lenders are forced to rely on appraisal management companies to choose qualified appraisers. Appraisal management companies make the most money by finding the real estate appraiser willing to take the assignment for the lowest fee and with the fastest turn-around time. (These appraisers are usually not the most professional or the most ethical appraisers.) In the mean time, the majority of individuals use conversation with friends or listing information of nearby real estate in their neighborhood to form their own opinions.
Once an opinion of value is established, it is very difficult to change. As a State certified real estate appraiser and real estate agent, I can tell you that I have heard many opinions of value that have been formulated without processing any data at all. This is because everyone has an opinion and most people think they should offer their opinion when asked even if they are not qualified to do so. I am often told, as soon as I arrive to look at an owner’s real estate (without asking their opinion), of the owner’s opinion and sometimes how it was derived. This is when I offer a small piece of advice to the owner…
“The secret to obtaining a professional opinion of market value is to identify the individual(s) that will not give you an immediate answer.”
These are the professional real estate appraisers in your local area that are granted licensure by the state and who cannot legally provide their opinion of market value without following a defined scope of work and reporting their results according to law.
Not all real estate appraisers have the same amount of experience or licensure level and state regulators (such as myself) are constantly trying to raise the bar, so that the professionalism within the appraisal industry remains high. There are “licensed” and “certified” appraisers, and certified appraisers can hold a “residential” or “general” certification. The residential appraisers must limit their practice to residential 1-4 family housing and the general appraisers are qualified to appraise all forms of real estate, including commercial. The certified appraisers have more experience and education requirements than the licensed appraisers, so the state limits licensed appraisers to work assignments that are non-complex and under one million dollars in value.
Obtaining a real estate agent’s license does not legally permit the agent to provide clients with opinions of market value; however, licensure does allow an agent to provide a client with a suggested listing price. Listing prices differ from an opinion of market value used by the lenders, because a listing price is the amount of money (or money equivalent) the seller may be able to receive by selling their real estate at a future date, whereas the opinions of market value typically used by lenders requires the use of a current effective date and a specified marketing period prior to that date.
Even though the real estate appraisers are the only state-authorized profession for providing opinions of market value, the most qualified appraisers are not easy to identify. Most people have developed their own opinion of value and it is much easier (and cheaper) to select someone that is willing to support their biased opinion, so these individuals have a tendency to identify a “good” appraiser, as one who is willing to agree with their tainted and often unsupported opinion. Sellers often do not utilize the services of a professional real estate appraiser prior to selling, because of the added up-front costs. A seller is not legally required to get a legal opinion of market value prior to listing their property and the real estate agent can provide a list price based on a ‘comparative market analysis”.
Financial lenders are regulated and therefore are bound by the laws that are enforced by their regulators. The laws have recently changed and the lending reserve requirements have recently increased, so there are fewer in-house loans available that do not require appraisals. There is also a new policy adopted by the government-sponsored entities (GSE’s), which are the purchasers of bank loans or so-called “secondary lenders” that require the use of appraisal management companies (AMC’s) to hire appraisers and provide separation from the lenders and the real estate appraisers. This new policy adopted in May of 2009 is known as the Home Valuation Code of Conduct (HVCC) and was adopted as policy by the GSE’s in lieu of facing financial penalties for misconduct when the GSE’s opted to purchase large bulks of loans known to have originated with loan officer’s pressuring appraisers to provide pre-determined opinions of market value. Loan officers and mortgage brokers that rely on commissions were the most egregious, as they profited the most by their ability to sell loans to others who in turn would sell their loans to the GSE’s.
The HVCC policy has effectively reduced the over-all pressures on appraisers to complete appraisals with predetermined results; however, the new policy has created other problems. The policy allows the use of real estate agents, automated valuation modules (AVM), and administrators, none of whom are authorized (or regulated) by a state licensing agency to provide professional opinions of market value to review real estate appraisals that report opinions of market value. Also, the large financial lenders are now required to use an independent AMC to order appraisals for their use. These AMC’s are in business to make money (and are also usually owned in part by the secondary lenders that sell the loans to the GSE’s). To make the most money, they will often hire the lowest level of licensed appraisers available to provide the cheapest services and the fastest turn-times, which is resulting in an over-all diminished appraisal quality within the GSE’s loan portfolio. The diminished appraisal quality remains unrecognized by the secondary lenders, because the appraisal review process does not require them to use professionally licensed peer appraisers to review the appraisers they have selected through searches for the lowest fees and fastest turn-around times.
Currently, the consumer is required to pay for an appraisal for the bank’s use to determine if they should receive a loan, and they have no say in who the bank chooses to complete the appraisal report. Many larger banks use AMC’s that they retain as partial owners, and then the AMC’s review the appraisals with un-regulated and/or un-licensed appraisal reviewers, who meet the minimal requirements detailed within the GSE’s HVCC policy. The resulting loans are then purchased by the GSE’s, which are currently being subsidized with taxpayer’s money and administered by the government.
Ultimately, the mortgage industry is in need of further reform. As an associate member of the Appraisal Institution, I assisted in a lobbying effort with members of congress in Washington DC earlier this year regarding mortgage reform and am looking forward to another opportunity next year. I can tell you that the politics involved with reform are complex and until our politicians and members of society recognize the educated and experienced professionals that are licensed to provide “Opinions of Market Value” for real estate, we will not significantly lower the level of mortgage fraud in our country. The state licensed real estate appraisers can play a key role in curbing mortgage fraud, but our society and especially our politicians have offered minimal effective support so far.
Comments on this article: e-mail: darwin@tekboys.com Montana Residential Certified Appraiser, Montana Real Estate Appraiser Board Member, Licensed Real Estate Agent, Appraisal Institute Residential Associate Member, & President of Independent Valuation Solutions, LLC
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