Dodd-Frank Act, Title XI
Changes
January 1, 2015
Change is coming in 2015, how will it impact
the profession?
The Appraisal Subcommittee (ASC) may
prescribe regulations for:
• Temporary Practice
• National registry
• Information sharing
• Enforcement for failure of state agencies
to comply with Policy Statements
Advisory Committee of the ASC has been
named, and is now meeting to offer
suggestions for the above four (4) areas of
regulation.
An FRT assignment 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.
Reciprocity may permit open door or possibly
more restrictive entry:
Mandatory
Mandatory-FRT
Voluntary
Appraisal practice includes Appraisal or Appraisal Review, when
one is acting as an appraiser. USPAP AO-21, 2014-2015 edition,
page A-68
KRS 324A.030
(8) A person shall not provide appraisal, appraisal
review, or appraisal consulting assignments or perform
any of the duties usually performed by a licensed or
certified real property appraiser for a federally related
transaction unless the person at the time holds a license
or certification of real property appraiser issued and
validly existing under the laws of the Commonwealth
of Kentucky, as provided in this chapter.
Effective: June 25, 2013
324A.035 Administrative regulations to establish
requirements for certification or licensure
(1) The board shall promulgate administrative
regulations pursuant to the provisions of this
chapter and KRS Chapter 13A for certification or
licensure of appraisers who perform appraisals of
real property in federally related transactions.
Requirements established by the board relating to
appraisers of federally related transactions shall not
exceed the minimum requirements established by
federal law or regulation;
State certification or licensure may include
education achieved, experience, sample
appraisals, and references from prior clients.
Membership in a nationally recognized
professional appraisal organization may be a
criteria considered, though lack of membership
therein shall not be the sole bar against
consideration for an assignment under these
criteria.
National Uniform Licensing and Certification
Examinations, Education and Experience must
be completed prior to taking the exam.
Background Checks – Placed on hold until 2017
Restriction on CE Course Offerings - Other than
7-hour USPAP update course, appraisers may
not receive credit for completion of the same
CE course offering within an appraiser’s CE
cycle.
CR Appraiser – Bachelor’s degree or higher
from an accredited college or university
CG Appraiser – Bachelor’s degree or higher
from an accredited college or university.
Supervisory Appraiser must be in good standing with
the training jurisdiction and not subject to disciplinary
action within the last 3-years that affects the
Supervisory appraiser legal ability to engage in
appraisal practice.
Supervisory Appraiser shall have been certified 3-years
within the state where the supervision will take place.
Supervisory Appraiser may not supervise more than 3Trainee Appraisers at one time, unless licensing
jurisdiction provides monitoring, supervision of
oversight.
Trainee Appraiser must have all qualifying education
completed within the five (5) year period prior to the
date of submission of an application for a Trainee
Appraiser credential.
A Trainee Appraiser is permitted to have more than one
Supervisory Appraiser.
Both the Trainee Appraiser and the Supervisory
Appraiser shall be required to complete a course that, at
minimum, complies with the specifications for course
content established by the AQB.
The course must be completed prior to beginning
supervision or training.
State Agency Enforcement
• Timely Enforcement
• Effective Enforcement
• Consistent and Equitable Enforcement
• Well-Documented Enforcement
Q&A
Contact information:
Larry Disney
KREAB
859-623-1658
Larry.disney@ky.gov