DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION. Division of Real Estate Instructor Seminar 2013

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1 DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION Division of Real Estate Instructor Seminar 2013

2 BY THE NUMBERS

3 TOTAL APPRAISAL LICENSEES FLORIDA

4 HOW DOES FLORIDA COMPARE? States with the biggest numbers of licensees State Number of Licensees California 13,005 Florida 6,752 Texas 5,547 New York 4,453 Illinois 4,316

5 COMPLAINTS Must be resolved within 1 year Mandatory reporting from Dodd Frank, Section 1472: Any mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or any other person involved in a real estate transaction involving an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a consumer who has a reasonable basis to believe an appraiser is failing to comply with USPAP, is violating applicable laws, or is otherwise engaging in unethical or unprofessional conduct, shall refer the matter to the applicable State appraiser certifying and licensing agency.

6 COMPLAINTS FLORIDA How many FREAB complaints received?

7 COMPLAINTS FLORIDA How many FREAB complaints sent to investigations?

8 COMPLAINTS FLORIDA How does Florida compare with other states? During years State Total Discipline Revocations Florida 1, Indiana 1, Texas Georgia Oklahoma

9 FEDERAL OVERSIGHT TOPICS

10 ASC HOTLINE Dodd Frank section 1473(p) requires: If 6 months after the date of the enactment of this subsection, the Appraisal Subcommittee determines that no national hotline exists to receive complaints of non compliance with appraisal independence standards and Uniform Standards of Professional Appraisal Practice, the Appraisal Subcommittee shall establish and operate such a national hotline

11 ASC HOTLINE Dodd Frank section 1473(p) requires: the Appraisal Subcommittee shall refer complaints for further action to appropriate governmental bodies, including a State appraiser certifying and licensing agency, a financial institution regulator, or other appropriate legal authorities

12 ASC HOTLINE Call Center Website REFERMYAPPRAI SALCOMPLAINT. ASC.GOV

13 ASC HOTLINE AARO Conference ASC Presentation on 4/27/2013 The Hotline: 272 calls including one complaint to your momma topics: appraisal independence and USPAP States with the most referrals: California Kentucky Alabama Florida Ohio

14 APPRAISAL INDEPENDENCE Defined through federal law: Dodd Frank Section 1472: It shall be unlawful, in extending credit or in providing any services for a consumer credit transaction secured by the principal dwelling of the consumer, to engage in any act or practice that violates appraisal independence as described in or pursuant to regulations prescribed under this section.

15 APPRAISAL INDEPENDENCE Defined through federal law: Dodd Frank examples of violations Any person with an interest in the transaction trying, in any way, to influence the appraised value or have it based on anything other than the appraiser s independent judgment Mischaracterizing or allowing the mischaracterization of the appraised value of a property Influencing the appraiser to reach a target value for the subject property Withholding or threatening to withhold payment for an appraisal See also Interim Final Rule, October 28, 2010

16 APPRAISAL INDEPENDENCE Defined through federal law: Dodd Frank EXCEPTIONS of violations Banks and others with an interest in the transaction can still ask the appraiser to: Consider additional information about the subject property or to consider additional comparables Provide more support and/or explanation Correct errors in the appraisal report

17 APPRAISAL INDEPENDENCE Defined through Florida law: Discipline of AMC s Section (1)(s) Influence or attempted to influence the development, reporting or review through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or any other means, including but not limited to: Withholding or threatening to withhold future business Conditioning a request for services or the payment of an appraiser s fee upon the valuation to be reached Any other act or practice that impairs or attempts to impair an appraiser s independence, objectivity or impartiality

18 POLICY STATEMENT CHANGES Statement 3: registry privacy features / timeframe Statement 5: reciprocity in place by July 1, 2013 Statement 6: education consistent with AQB Statement 8: interim sanctions / state rating system

19 RECIPROCITY Dodd Frank 1122 of FIRREA is amended: Notwithstanding any other provisions of this title, a federally related transaction shall not be appraised by a certified or licensed appraiser unless the State appraiser certifying or licensing agency of the State certifying or licensing such appraiser has in place a policy of issuing a reciprocal certification or license for an individual from another State when (1) the appraiser licensing and certification program of such other State is in compliance with the provisions of this title; and (2) the appraiser holds a valid certification from a State whose requirements for certification or licensing meet or exceed the licensure standards established by the State where an individual seeks appraisal licensure.

20 RECIPROCITY

21 AQB COMPLIANCE On December 9, 2011, the Appraiser Qualifications Board of The Appraisal Foundation adopted changes to the Real Property Appraiser Qualification Criteria that will become effective January 1, These changes represent minimum national requirements that each state must implement no later than January 1,

22 AQB COMPLIANCE Background checks All candidates for a real property appraiser credential must undergo background screening. State appraiser regulatory agencies are strongly encouraged to perform background checks on existing credential holders as well. This specific language will bar any applicant from certification who has, within the 5 years immediately preceding application, pled guilty or no contest to, or been found guilty of a felony, ever pled guilty or no contest to, or been convicted of a felony involving fraud, dishonesty, breach of trust, or money laundering; or within 5 years preceding certification had an appraiser license or certification revoked.

23 AQB COMPLIANCE Education Credit towards qualifying education requirements may be obtained via the completion of a degree program in Real Estate from an accredited degreegranting college or university provided the college or university has had its curriculum reviewed and approved by the AQB. Florida: HB667

24 AQB COMPLIANCE NO MORE IN LIEU Classification Current AQB 1/1/2015 Licensed None 30 semester credit hours of college level education from an accredited college, junior college, community college, or university OR an Associate s degree or higher (in any field). Certified Residential 21 semester credit hours in specified collegiate subject matter courses from an accredited college or university OR an Associate s degree or higher. Bachelor s degree or higher (in any field) from an accredited college or university. Certified General 30 semester credit hours in specific collegiate subject matter courses from an accredited college or university OR a Bachelor s degree or higher. Bachelor s degree or higher (in any field) from an accredited college or university.

25 AQB COMPLIANCE Segmented Approach States had the option to implement the 2008 Criteria via the segmented approach. This implementation option will no longer be valid effective January 1, 2015.

26 AQB COMPLIANCE Courses Added topics on green building (qualifying and continuing education), seller concessions (qualifying and continuing education) and developing opinions of real property value in appraisals that also include personal property and/or business value (continuing education only).

27 AQB COMPLIANCE Supervision SUPERVISORY APPRAISER TRAINEE APPRAISER State certified Supervisory Appraiser shall be in good standing with the training jurisdiction and not subject to any disciplinary action within the last three (3) years that affects the Supervisory Appraiser s legal ability to engage in appraisal practice. Shall have been state certified for a minimum of three (3) years prior to being eligible to become a Supervisory Appraiser. All qualifying education must be completed within the five (5) year period prior to the date of submission of an application for a Trainee Appraiser credential. A Supervisory Appraiser may not supervise more than three Trainee Appraisers at one time, unless a state program in the licensing jurisdiction provides to progress monitoring, supervising certified appraiser qualifications, and supervision oversight requirements for Supervisory Appraisers. A Trainee Appraiser is permitted to have more than one Supervisory Appraiser.

28 AQB COMPLIANCE Supervision *Shared responsibility to ensure the appraisal experience log for the Trainee Appraiser is accurate, current, and complies with the requirements of the Trainee Appraiser s credentialing jurisdiction. *Both the Trainee Appraiser and Supervisory Appraiser shall be required to complete a course that, at a minimum, complies with the specifications for course content established by the AQB. The course will be oriented toward the requirements and responsibilities of Supervisory Appraisers and expectations for Trainee Appraisers. The course must be completed by the Trainee Appraiser prior to obtaining a Trainee Appraiser credential, and completed by the Supervisory Appraiser prior to supervising a Trainee Appraiser.

29 FLORIDA LEGISLATION 2013

30 FLORIDA HOUSE BILL 667 Licensed Appraiser Effective: June 7, 2013 Fl. Statute S Effective: January 1, 2014 Removes language from the statutes No longer licensing this category Incorporates AQB mandates from 2011 leading to the 2015 criteria

31 FLORIDA SENATE BILL 1398

32 FLORIDA RULE 61J Supervision / Training of Trainee Appraisers Effective: June 3, 2013 Clarifies responsibility role of supervisor Personal inspection with trainee for 12 months Definition of personal inspection Responsibility role clarified for inspection without supervisor Trainee contributions: Named in report Named/time in log

33 FLORIDA RULE 61J Supervision / Training of Trainee Appraisers Reports: Signature of trainee: not within 12 months Trainee contributions Statement: I, the supervisory appraiser of a registered appraiser trainee who contributed to the development or communication of this appraisal, hereby accepts full and complete responsibility for any work performed by the registered appraiser trainee named in this report as if it were my own work then open view rule in Word

34 FLORIDA RULE 61J Rule Regarding AMC s Effective: June 26, 2013 Placement of registration number Utilize appraisers in good standing Parameters for appraiser to decline assignment Procedures for removal of appraiser from panel Items contained within solicitations for engagement open view rule in Word

35 HOT LEGAL TOPICS Update address with DBPR Keep work files

36 THANK YOU FOR THE PRIVILEGE Juana Watkins, Director Allison McDonald, Deputy Chief Attorney

RULES OF TENNESSEE REAL ESTATE APPRAISER COMMISSION CHAPTER GENERAL PROVISIONS TABLE OF CONTENTS

RULES OF TENNESSEE REAL ESTATE APPRAISER COMMISSION CHAPTER 1255-01 GENERAL PROVISIONS TABLE OF CONTENTS 1255-01-.01 Purpose 1255-01-.09 Denial of License or Certificate 1255-01-.02 Definitions 1255-01-.10