Monthly Archives: October 2012

ICAP ask for membership feedback regarding AMC Rules

The Department of Professional Regulation has submitted the RULES to support the Illinois AMC Registration Act to the Joint Committee on Administrative Rules – JCAR.

Click on the following link to read the Rules.

http://www.cyberdriveillinois.com/departments/index/register/register_volume36_issue39.pdf

The AMC Rules begin on page 15.

The ICAP Board of Directors reviewed the Rules and sent the following comments to the Department of Professional Regulation.

The Agency Final Draft of the Notice of Proposed Rules of the AMC Registration Act has formally been reviewed by the Illinois Coalition of Appraisal Professionals 2012 Board of Directors at our September 25, 2012, meeting.

We support the document overall along with the changes indicated by the IL Appraisal Board. The ICAP Board strongly supports the following clarifications also be made to the Rules document.

1. The word “knowingly” does not belong in a document that is intended to clarify the responsibilities of licensed entities and should be removed. The public trust is undermined when entities are only held to a standard of “knowingly engaging appraisers not in good standing”. At minimum, the public should be assured that the AMC is utilizing competent appraisers in good standing.

2. The term and definitions for ‘completion date’ and ‘completed appraisal’ should be added to the definitions page. A ‘completed appraisal’ is one that is delivered by the appraiser to the AMC. The ‘completion date’ is the date that appraisal is delivered.

We would like to recognize the efforts of the Department and the Illinois Appraisal Board on behalf of the appraisal profession.

The Illinois Real Estate Appraiser Board also reviewed the Rules during their September meeting In Springfield and echoed the same concerns as ICAP relating to these two issues within the Rules. A motion was made and passed unanimously by the Board requesting the Department of Professional Regulation to consider these changes.

The first issue as it appears in the Rules relates to the definition of Turn Time which reads as follows:

“Turn time” means an established period of time between the appraiser’s acceptance of an assignment and the final delivery of a completed assignment to the appraisal management company.

This definition is ambiguous as it does not define when an assignment is actually completed. ICAP believes an assignment is completed, as it relates to turn time, when the appraiser submits the completed appraisal to the client. This does not mean the client can’t request corrections, clarifications or even reconsiderations. Stating it more simply. “Why would an appraiser submit an appraisal to a client if it wasn’t their intention that the assignment was complete?”

The second issue as it appears in the Rules is under Section 1452.190 Unprofessional Conduct.

Twice the word “knowingly” is being used and ICAP and the Illinois Appraisal Board believe this could provide an AMC with a “we didn’t know” defense when either one of these suggested forms of unprofessional conduct occurs.

– f) knowingly engaging appraisal practice services from any licensed or certified Illinoisappraiser who is not in good standing with the Division;

– i) knowingly interfering with a licensed Illinois appraiser’s ability to comply with USPAP;

There is no reason why an AMC should not have the ability to monitor Illinois Appraisers and assure their license is in good standing since public disciplines are a matter of public record. The second statement is even more important as it relates to USPAP.

Should an AMC understand USPAP?

Of course they should. Most AMC’s strive to assure their clients that compliance to appraisal industry standards is one of their primary services as it relates to quality control issues.

Because of time constraints, the changes recommended by the Illinois Appraisal Board and ICAP were not included in the Rules submitted to JCAR. This does not mean that the Rules can’t be amended to reflect these changes. ICAP will continue to work closely with the Department in an effort to express the concerns of our members regarding these issues and more importantly to protect the public trust when the services of an appraiser working for or with an AMC are required.

ICAP would like feedback from our members regarding the AMC Rules. Please send your comments to: info@icapweb.org

%d bloggers like this: