Approved 4/18/2016 ND Appraisers Association Meeting Minutes Tuesday, February 23, 2016 – 12:00 PM (Noon) Central Time Jamestown, ND – Pizza Ranch The meeting was called to order by Beth Keller at 12:05 pm. ND Appraisers Association Charter Members Present: Bill Gion, Dennis Huber, Joe Ibach, Dave Campbell, Tiffiney Dick, Dean Rylander, Robert Gietzen, Leah Reynolds, John Whartnaby, Kathy Berry, Beth Keller, Rhonda Knudson, Jared Miller, Guy Miller, Keana Schuler, Ross Berg, Cory Kost, Luke Koterba, Mark Thelen, Todd Schmidt, Sheila Ressler, and Peggy Boettner; Craig Steinley and Debbie Ellerton attended via conference call. Following introductions, Beth Keller and Kathy Berry gave a brief summary of the previous meeting of the ND Appraisers Association in Chamberlain on January 27, 2016. The meeting included the formation of the four working groups (Bylaws, Education, Legislative, and Website) and the development of their assigned tasks. The four working groups next met individually for about an hour, and each provided a summary of their discussions and action plans. The individual minutes of the working groups follow. Respectfully submitted, Debbie Ellerton Executive Secretary, ND Appraisers Association

Minutes of the North Dakota Appraisers Association Bylaws Working Group February 23, 2016 Group Leader: Bill Gion After the general membership meeting of the NDAA at 12:00 noon at the Pizza Ranch in Jamestown, ND on February 23, 2016, the membership broke into working groups to provide recommendations at the next general membership meeting. The first meeting of the NDAA Bylaws Working Group was held on February 23, 2016 at the Pizza Ranch in Jamestown, North Dakota at 1:00 pm. In attendance were Bill Gion, Joe Ibach, Peggy Boettner, Rhonda Knudson, and present via phone were Craig Steinley and Debbie Ellerton. The task of this working group was identified as: “developing a recommendation of the Bylaws of the NDAA for review by legal counsel that can be presented to the general membership meeting on April 18th in Bismarck.” The working group began discussion of the draft of the Bylaws with suggestions for revisions to the Preamble and Sections 1, 2, 3, 4, 8, and 9, as time permitted. Sections 5, 6, 7, and 9 more

extensively, were shelved for the next meeting, as time did not permit a thorough examination of all Sections. All working group members will have adequate time to study and provide input into these sections at the next meeting which has been scheduled via a Conference Call on March 30th at 10:00 am Central Time. Craig Steinley will send out a revised version of the Bylaws to all members of the working group as soon as possible for approval. Debbie Ellerton will coordinate the conference call on March 30th. Respectfully submitted by Rhonda Knudson

Minutes of the North Dakota Appraisers Association Education Working Group February 23, 2016 Group Leader: Kathy Berry Attendance: Kathy Berry, John Whartnaby, Leah Reynolds, Keana Schuler, Sheila Ressler, Guy Miller, Jared Miller Discussion topics : Kathy has spoke with Jodie Campbell regarding the state’s expectations on education. At this point Jodie is ready to hand over all education to the association except for the Supervisor Training Course which they will keep (at least for a while). They would like to see a minimum of 2 classes a year (14 hours) so that appraisers have in-state offerings rather than having to travel or take online CE. The group went over a recent survey from December 2015 which showed the ND appraisers likeliness for attendance for CE topics. The most popular class requests were: -FHA -Regression/Excel/Technology to support adjustments -Effective Appraisal Writing -Expert Witness -Fannie Mae Guidelines Discussion ensued on when and where offerings should be held ○ Group would like to offer at least 2 days a year back to back as the appraisers are used to (possibly then being encompassed into a ‘conference’ CE when that develops, plus perhaps an additional offering at a separate time that may rotate throughout the state. -Will we have ability/opportunity or want to partner with ASFMRA? At this point this is uncertain. Shawn, though not present, offered to via email to reach out to bridge the gap and work as a liaison between the 2 associations. -Do WE want to partner with them?

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- Do we want to continue providing USPAP in December and allow them to provide in January like many are used to? (This would continue to accommodate the different licensing schedules). -How will that work/hinder our annual meeting? Combined meeting? ASFMRA annual meeting is always in January when THEY offer USPAP. We can’t decide on when and where the offerings will be until we know more about partnering and the association, in whole, needs to make a determination made about if and when the association plans to hold a ‘conference’ in 2016 which we will piggy back off of. Decided to draft a survey for the members, polling multiple questions and looking for feedback on what their interest is and willingness to move around to attend classes. The state is very divided and east rarely travels west and vice versa. This will be a challenge to overcome and unite the state.

Possible Providers Discussed: ○ NORTHSTAR AI ■ Pros ● High quality material and instructors ● Will likely advertise the class nationally and draw participants from other areas ● They are very interested in partnering and reaching out to see how they can help us ● Many appraisers seek these classes for AI credentialing ■ Cons ● Expensive/possibly less income per class ● Not generally offer courses specialized to ND like we have been getting from instructors like Craig ○

DIRECT CONTACT PROVIDERS ■ This is the method Jodie has favored. Educators such as Craig Steinley, who are VERY popular with the appraisers and have offered timely courses often tailored to current needs, fee paid directly to provider.

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IVN Using technology (GoTo Meeting/IVAN) With proctor to have courses in multiple cities while only having the instructor in one location. -investigate with Jodie the requirements/possibilities….

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ROUND TABLE CLASSES ■ Specific topic breakout sessions – common to realtor and builder CE structures. Often with local experts and various topics.

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OTHER COURSE PROVIDERS Example: Hondros classes/instructors

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INSURANCE AGENCIES, FINANCIAL INSTITUTIONS, ETC.

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3 HOURS STATE BOARD MEETING (CE) FOLLOWED BY 4 HOUR CLASS

The group reviewed information on classes, attendance, income and expenses provided by Jodie Campbell for the past few years CE offerings. Most profitable courses in the past: ○ USPAP – consistently highest returns ○ Most Common USPAP violations ○ FHA Other discussion: ● ●

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Should we do traveling site offerings around the state or a static location? Kathy recommended offering additional discounts for NDAA member apprentices to encourage live-in person classes vs. the trend to take classes online. Also, charging non-NDAA member appraisers higher fees than members Committee would like to explore getting classes approved in surrounding states to expand attendees and dual licensed appraisers

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Before next working group teleconference: ○ Research potential instructors, their fees, offerings and their availability. ○ Kathy will discuss with the Appraisal Board/Jodie if the Association could hold CE in conjunction with Board meetings ○ Send out survey ○ Work on relationship building with ASFMRA ○ Kathy will find out what the association desires so we can plan a course of action. The association will need to decide if there will be a 2016 conference or just CE this year and work on conference next year - and what offerings they would like presented so we can plan accordingly and also see what availability we have in the budget.

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Goals for next working group teleconference: ○ Discuss survey results ○ Discuss potential dates, locations, offerings, instructors researched ○ Determine a budget request necessary for offerings

Minutes of the North Dakota Appraisers Association Legislative Working Group February 23, 2016 Group Leader: Dean Rylander Attendees: Todd Schmidt, Mark Thelan, Dennis Huber, Dave Campbell, Beth Keller

Opening – A permanent Legislative Committee should be formed by the ND Appraisers Association. It was discussed while the Association in its self as well as all of the subsequent committees will play a vital role for appraisers in the future. It was also determined the Legislative Issues as well as Education could be considered the two most important committees established by the association. The purpose of the Legislative Committee is to protect and enhance legislative issues and policies affecting the best interests of appraisal professionals, appraisal practice, and the public trust. To provide information and support to the North Dakota Appraisal Qualifications and Ethics Board regarding legislative issues that affect the appraisal profession and issues of legislative matters that endanger compliance with the Appraisal Subcommittee or the Appraisal Qualifications and Ethics Board of the Appraisal Foundation. To communicate these legislative issues with the membership and establish a “Call to Action” system to include ND legislative testimonials during legislative sessions. Dave Campbell spoke about the importance to stand alone as an association (independent) but also the ability to work with the State Board, Farm Management group, Real Estate and Bankers associations in a cooperative effort when we have common goals and issues leading in the same direction. It was also agreed by all to hire a lobbyist. Barry Wilfahrt, lobbyist, was contacted by Dean Rylander, and provided the information as follows: $1,500 a year plus his lobbying badge and sales tax; total of $1,630. As a Lobbyist for SD, this includes his travel and expenses to attend the annual Appraiser meeting in Chamberlain, monitoring the legislature for Bills that impact appraisers, developing a strategy on each of those Bills, contacting legislators on those Bills and mobilizing appraisers statewide via email to have them contact their respective legislators. He also develops and coaches the appraiser testimony strategy and works with the state regulators, Realtors assn and banker associations to garner their support on our position on various Bills. In the event he needs to travel to Bismarck he charges $500 a day plus mileage and hotel but in the past he has only needed to spend a day or two in Pierre and always get this travel pre approved by the legislative chair and appraiser association president. His highest year in SD was $3500. Most years it has been the minimum of $1630. Todd Schmidt is getting an additional quote from someone he knows. Mark Thelan has a legislative contact he knows for any suggestions. Dean proposed $6000 for a yearly budget expense based on Barry’s highest fee and doubling it. We will discuss this farther as a group on a conference call at the end of March. A maximum reserve fund should be established with a suggested two session maximum. A recommendation is expected to be presented to the membership on April 18th.

Minutes of the North Dakota Appraisers Association Website Working Group February 23, 2016 Group Leader: Ross Berg Attendees: Ross Berg, Corey Kost, Tiffiney Dick, Bob Gietzen, Luke Koterba Meeting opened with general review of the ‘agenda’ for meeting. Questions to be answered: 

Should the ND Appraisers Association contract with a professional website provider for a website specific to their needs, or should they find a local webmaster (volunteer or paid) that will take generic website builder software and try to customize it for the corporation? -

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Bob Gietzen was able to do some pre-work for the group. Spoke with 5 or 6 ‘lone ranger’ web developers. After giving these individuals a general idea of what the website eventually might look like, none of them would be able or willing to develop, set up or maintain what we might be looking for. Discussion around this information allowed the group to come to a general consensus to focus on contracting with a professional web developer.

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If a professional provider is to be hired, what potential ND companies should be considered? Should Factor 360 (current SD website developer) be considered given its extensive work with the SD Group? - Factor 360 & ND companies should be considered. Discussion centered on the many benefits of using Factor 360. o Fewer unknowns. Provider already has template/infrastructure of what would be needed. Commonality (assumed commonality) of back side functions. Secure personal and financial data if payments are made via website. Stable company. - ND companies will also be considered as the Website Group is interested in keeping the Association’s funds in ND. o Each member of the group will be tasked with contacting a number of providers to find a potential fit for NDAA.

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What features are necessary and desired in a website that would serve the members and Exec Sec of NDAA? - Group defined website audience. Primary website audience would be members of NDAA. Other users include AMC/Bank/general public searching. - For purposes of analyzing ‘apples to apples’ bids and quotes from providers, the group listed the following functions for the website. This list does not necessarily represent the immediate functionality required of the NDAA website. But rather a starting point to understand cost and capabilities of potential providers. o

Education  Search for classes – Class listing  Accept credit cards for registration fee  Remind registered attendees of upcoming class

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Send CE certificates (or allow members to access)

Membership info  Appraiser List  Search for Appraiser – Region or County – Ag/Comm/Res  Renew membership Contact us Upcoming events/calendar

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What are the costs involved and how should they be funded – both initially and ongoing? o Group has no cost information. o Majority of any start-up funds that may be needed would have to come from NDAA o Funding ideas  Discussion of sponsorships  Would site traffic provide any advertiser ‘bang for buck’?  Would using banks or clients present any ethical issue of independence?  Other states’ websites are using sponsors, but unaware of the revenue involved

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Other Discussion topics o Future functionality of website  include individual tracking of CE  Driver of CE courses offered  Blog / Forum  Q&A - example would be supervisor / trainee covering FAQ o Liability for breach of confidential information  Is NDAA liable or is website developer financially responsible for any breach o Traits of ND companies to contact  Stability – Established company that will be long term partner  Competitive bid

Action items 1) Ross to contact Bev (SD appraiser group) to discuss website ‘back side’ functions and get input. 2) Ross to contact Factor 360 with goal of providing Group with bid to provide NDAA website – functions requested are listed above. 3) Group to reconvene with summary of Bev’s input and any information provided by Factor 360 that is relevant to the group. 4) Group to submit a residential and commercial photo that they feel should be placed on the current ndappraisers.org website. Current website does not provide a “ND Feel”