Category Archives: AMC Bill

ICAP’s 2015 Lobby Day, Capitol Visit & Reception

ICAP’s 2015 Lobby Day, Capitol Visit & Reception
Free for ICAP Members

Illinois Real Estate Appraisers will gather in Springfield on May 6th for an ICAP Lobby Day.
Includes lunch & appetizer reception.

Deadline to register: April 29th
Registration will be limited
Click here to register

Support ICAP’s proposed legislation, HB2664, which would amend the Appraisal Management Company Registration Act providing for an Appraisal Management Company Recovery Fund, and HB3333 which would amend the Real Estate License Act of 2000 allowing Appraisers who hold a brokers license to perform Broker Price Opinions. Talk directly with your legislators about issues that affect the real estate business!

ICAP will establish an “appraiser presence” in Springfield Illinois in an organized effort lead by our lobbyist Andy Raucci. Participants will lobby our states Capitol demonstrating that Illinois appraisal profession made up of professionals who recognize the importance of being actively involved in the political process.

11:00 a.m. – 11:45 a.m. Registration
11:45 a.m. – 12:45 p.m. Legislative Briefing & Lunch
1:00 a.m. – 1:30 p.m. Capital Tour
1:30 a.m. – 4:00 p.m. Capitol Visits
4:00 p.m. – 4:30 p.m. Capitol Photograph
4:30 p.m. – 6:00 p.m. Reception

Click here to register

Lobby Day

 

 

Advertisements

ICAP Along with 12 Other State Appraisal Organizations Sign AMC Comment Letter

ICAP along with 12 other State Appraisal Organizations signed a letter in response to the Agencies’ request for comments on the Proposed Minimum Requirements for Appraisal Management Companies.

The following professional State Appraisal Organizations took part in the letter:

Appraiser’s Coalition of Washington
Arizona Association of Real Estate Appraisers
California Coalition of Appraisal Professionals
Georgia Coalition of Appraisal Professionals
Idaho Coalition of Appraisal Professionals
Illinois Coalition of Appraisal Professionals
Maryland Association of Appraisers
Mississippi Coalition of Appraisers
North Carolina Real Estate Appraiser Association
Ohio Coalition of Appraisal Professionals
South Carolina Professional Appraisers Coalition
Virginia Coalition of Appraisal Professionals
West Virginia Council of Appraiser Professionals

Among other things the letter recommends prohibiting the practice of sending a large number of appraisers the same appraisal order via email or posting orders on electronic bulletin boards for a large number of appraisers to simultaneously bid on. The comment letter addresses appraiser independence and mentions the importance of engaging the most qualified appraisers.

The letter was a collaboration of 13 State organizations representing thousands of appraisers nationwide. It’s important to note that not every member of every coalition agrees with everything in the letter; however, what is agreed on is that national AMC legislation must be created and regulated in such a way that protects the public’s trust.

Click the following to read the AMC Rules Comment Letter

 

 

Click To Register

AARO Fall Conference-The Third in a Three Part Series

On behalf of ICAP Karen Emerle, SRA attended the Association of Appraiser Regulatory Officials (AARO) Fall Conference, where discussions included reciprocity, USPAP updates, mandatory background checks, and more.  This article is the third in a three-part series summarizing the four days of regulatory discussions that will impact the future of real estate appraising.

The Association of Appraiser Regulatory Officials (AARO) has a new mission statement and updated Bylaws, which were adopted October 2013.  According to their website, www.aaro.net, their mission is to improve the administration and enforcement of real estate appraisal laws in member jurisdictions.

This year’s fall conference held October 19-22, 2013 at the Westin Hotel, Washington D.C. was attended by representatives from the ASC, AF, ASB, AQB, APB, AMCs, Members of the Conference of State Bank Supervisors, AI, IAAO, Farm Credit Mid-America, and the NC Deputy Director and Legal Counsel. Topics of discussion at the conference included:

  • Federal Updates;
  • Background Checks-Alternatives to the FBI;
  • AMC Registration and Regulation Issues;
  • USPAP Update for Regulators;
  • Experience Training Concerns;
  • Differing Terminology, Expectations and Requirements in Review Appraisal;
  • A Town Hall covering a potpourri of topics and issues impacting the Appraiser Regulatory Agencies;
  • Experience Training Today and Beyond; and
  • Enforcement-Hearing Preparation.

Additionally, time was allocated to various committee meetings and closed sessions related to specific job functions of investigators, attorneys, board members, administrators and AMCs.

Part Three- Appraisal review, third party oversight, experience training, the Real Property Appraiser Qualification Criteria (effective January 1, 2015), & Enforcement and Hearing Preparation.

A Town Hall Discussion moderated by Danitra Koukounakis included topics including; complaints against Board Members, legal counsel, reciprocity from the enforcement side, resources, politics, and jurisdiction, license classifications, AQB instructor standings, and a discussion of what it means to be in “in good standing.”

Issues relating to appraisal review were presented by Frank O’Neill (DataQuick), Tim O’Brien (RELS), and Danny Wiley (LSI-LP). Topics discussed included: When is it an appraisal review and when does a review have to be done?  The conversation involved a range of activities and terms, such as Administrative Review, Field Review, Technical Review, Quality Control, Desk Review, Standard 3 Review, Audit, and Appraisal Review. It included what can be done by a person who is not an appraiser, and what must be done by a licensed appraiser.

During the conference The Consumer Financial Protection Bureau (“CFPB”) Bulletin 2012-03 was discussed.  The CFPB Bulletin 2012-03 indicates that supervised banks and nonbanks are expected to oversee their business relationships with service providers in a manner that ensures compliance with Federal consumer financial law, which is designed to protect the interests of consumers and avoid consumer harm.

The CFPB expects supervised banks and nonbanks to have an effective process for managing the risks of service provider relationships. The CFPB will apply these expectations consistency, regardless of whether it is a supervised bank or nonbank that has the relationship with a service provider. To limit the potential for statutory or regulatory violations and related consumer harm, supervised banks and nonbanks should take steps to ensure that their business arrangements with service providers do not present unwarranted risks to consumers. These steps should .include, but are not limited to:

  • Conducting thorough due diligence to verify that the service provider understands and is capable of complying with Federal consumer financial law.
  • Requesting and reviving the service provider’s policies, procedures, internal controls, and training materials to ensure that the service provider conducts appropriate training and oversight of employees or agents that have consumers contact or compliance responsibilities.
  • Including in the contract with any service provider clear expectations about compliance, as well as appropriate and enforceable consequences for violating any compliance-related responsibilities, including engaging in unfair, deceptive, or abusive acts or practices.
  • Establishing internal controls and on-going monitoring to determine whether the service provider is complying with Federal consumer financial law; and
  • Taking prompt action to address fully any problems identified through the monitoring process, including terminating the relationship where appropriate.

Click to read the entire Bulletin (2012-03) written by the The Consumer Financial Protection Bureau (“CFPB”). Click here:

The panel for the topic Experience Training Today and Beyond, included Greg Stephens-Metro West Appraisal, Tony Pistilli-Axios Valuation Solutions, Alan Hummel-Forsythe Appraisal, and Cassandra Karinen-Metro West Appraisal. The discussion included a brief history of training programs from “pre-FIRREA” to the current and proposed minimum criteria set by the AQB, and the supplemental requirements that are being implemented by individual States.

The panel reminded the attendees that effective January 1, 2015 all individuals with a position of Supervisory Appraiser and Appraiser Trainees must meet or exceed the applicable minimum AQB Criteria including being required to complete a Supervisory/Trainee Appraiser course prior to being supervised or supervising an appraiser trainee.  Click here to read the Supervisory Appraiser / Trainee Appraiser Course Education & Q & As including Objectives and Outline  issued by the Appraisal Foundation.

Additionally, it was noted that beginning January 1, 2015 the Real Property Appraiser Qualification Criteria states “Supervisory Appraisers may not supervise more than three Trainee Appraisers at any one time, unless a state program in the licensing jurisdiction provides for progress monitoring, supervisory certified appraiser qualifications, and supervision and oversight requirements for Supervisory Appraisers.”

The panel indicated that there is an aging of the experienced appraiser population, and the   statistical data from The Appraisal SubCommittee reveals the number of appraisers continues to decline.  The report indicated that about 4% of appraisers leave the industry annually with only about 1% entering the industry annually.  The panel indicated that there are barriers to entry into the appraisal profession including:

  • Current and upcoming federal regulations;
  • States supplemental requirements;
  • A Bachelor’s degree or higher from an accredited college or university;
  • Plus 175 hours of additional education hours;
  • Certified Residential and Certified General Classifications from 2,000 to 2,500 hours, and from 2,000 to 3,000 hours, respectively;
  • The reluctance of appraisers to take on a trainee;
  • The economics of low starting wages compared to other professional degree programs; and
  • Additional industry issues including increasing turnaround times and Scope creep.

To read the entire report titled Experience Training – Today and Beyond click here.

Training qualification criteria is established by AQB, and State appraiser regulatory agencies are required to implement real property appraiser licensing and certification requirements that are no less stringent than those issued by the AQB in the Real Property Appraiser Qualification CriteriaAccording to the Real Property Appraiser Qualification Criteria (effective January 1, 2015), a Real Estate Trainee Appraiser does not require any experience, however, does requires that the training supervisor be certified, in good standing and accept responsibility for the training, guidance, and direct supervision of the Appraiser Trainee by:

  • Accepting responsibility for the appraisal report by signing and certifying the report complies with USPAP;
  • Reviewing and signing the Appraiser Trainee appraisal reports; and
  • Personally inspecting each appraised property with the Appraiser Trainee until the supervising appraiser determines the Appraiser Trainee is competent, in accordance with the Competency Rule of      USPAP for the Property Type.

Some States require supervision be through the entire training period. The panel, however, encouraged the States to revise the statutes to be “competency” based, and also recommend a “fast track” for advanced trainees.

North Carolina Deputy Director Tom Lewis and Roberta Ouellette, Legal Counsel discussed Enforcement and Hearing Preparation. The process from Probable Cause to Hearing was described from the perspective of the investigator and the Board Attorney. The discussion gave the audience a summary of the typical “flow of events”, which include:

  • Complaint
  • Response
  • Investigation
  • Preliminary Findings
  • Hearing
  • Decision
  • Concentration
  • Action

The report made note that areas of concentration in the “flow of events” include the Preliminary Findings and Hearing.  In addition, and among other things, the discussion provided appraiser “tips” for proper composure during Cross Examination:

  • Don’t allow the questioner to put words in your mouth;
  • Don’t answer a compound question;
  • Do not try to fill a silence;
  • Pay no attention to the questioner’s tone or attitude;
  • Keep your temper; and
  • Always glance at your attorney before answering the question to see if he or she is going to object to the question.

Click here to read the entire report by Roberta A. Ouellette and Thomas W. Lewis titled Enforcement: Hearing Preparation.

This article concludes the third in the three-part series summarizing the four days of regulatory discussions at Association of Appraiser Regulatory Officials (AARO) Fall Conference held October 19-22, 2013 at the Westin Hotel, Washington D.C.  As always ICAP will continue to keep its membership informed on issues that have the potential to impact the appraisal profession.

~ Karen T. Emerle, SRA

2012 LOGO

Changes Eyed to Illinois AMC Law

The Illinois Coalition of Appraisal Professionals has started to draft legislation that would correct some unintended consequences that resulted from a 2011 law regulating the state’s appraisal management companies.

ICAP hopes to resolve problems where AMC registration and oversight requirements are being applied to appraisal firms using independent contractor or employee appraisers but that are not fully owned by Illinois certified appraisers. The law has been interpreted to apply to some large commercial appraisal firms that are located outside of the state, as well as to some small appraisal companies that have ownership structures that may not include certified appraisers exclusively.

The legislation that ICAP will propose will attempt to clarify that appraisal firms that exclusively employ appraisers are exempt from registration and oversight requirements regardless of their ownership structure.  This legislation likely will be introduced in the Illinois General Assembly in 2014.

2012 LOGO

ICAP will be putting on an AMC Registration Program April 3rd, 2013

ICAP in conjunction with the IDFPR will be putting on an AMC Registration Program for AMCs who want to become registered in Illinois. The cost is $75 per person and is open to representatives of AMCs and those interested in registering in Illinois.  Brian Weaver-Real Estate Appraisal Coordinator at the State of Illinois will walk through the laws, the forms, the fees, and compliance issues.

The AMC Registration Program was designed specifically for principals and/or employees of AMCs to learn about the Illinois Appraisal Management Company Registration Act and Administrative Rules. Participants will become familiar with how to apply for registration, AMC forms, fees, and how to conduct business in Illinois. Attendance is encouraged but is NOT mandatory. The goal of the program is to put potential applicants at ease with the registration process. There will be NO CE offered for this presentation. This is a one-time offer. The presentation will NOT be repeated.

AMC Registration in Illinois April 3, 2013205 W. Wacker Drive, Suite 200, Chicago, IL

More Info    Register

Cost: $75.00

%d bloggers like this: