Transcript 2013 Annual MH Conference

2013 IRWA Conference
By:
Larry Disney, Executive Director
Kentucky Real Estate Appraisers Board
Question - Is appraiser regulation working?
To make the system work, we must all begin
to work together and make it happen.
“Everyone thinks of changing the world, but
no one thinks of changing himself.” – Leo
Tolstoy
State Licensing of Real Property Appraisers
Title XI granted the authority for state licensing of
real property appraisers.
Authority granted the ASC oversight of the state
agencies and monitoring of TAF.
www.asc.gov
Title XI recognized TAF as the source for criteria
and appraisal standards.
www.appraisalfoundation.org
The state appraiser regulatory agencies vary in
the type of licensing program established:
Mandatory –
37
Mandatory/FRT – 12
Voluntary 6
Does licensing/certification impact your work as an
appraiser?
If you are credentialed in a state, the answer will
depend upon the specificity of the state law and
regulations.
Each state credential appraiser must understand laws
and regulations.
One requirement exists in each type. Upon being
credentialed, you cannot decide when to opt in or
out.
Does the licensing program impact
your practice as a R/W appraiser?
Prior to appraiser regulation what was
the recognized standard for an
appraisal?
The statutory authority to determine USPAP
compliance.
The regulatory hearing may be the only trial
a state credentialed appraiser will receive.
At the hearing, board members decide if
violations exist.
Is the current system of enforcement
effective?
Residential – 90%
General
KREAB appraiser complaint findings:
Competency – 95%
Negligence or Gross Negligence
Ethics
Approximately 100 complaints logged each
year in KY.
42% Complaints dismissed since 1990
Mandatory Complaint Hotline
R/W assignments are filed by consumers.
• The majority of complaints presented
to the KREAB include URAR appraisal
report forms.
• Some education providers have used
the URAR as the primary teaching tool
for appraisal report writing.
• URAR form as published is not USPAP
compliant.
Review appraisal assignment and a regulatory
agency complaint investigation.
Other assignment conditions, including:
 Uniform Appraisal Standards for Federal
Land Acquisition
 International Valuation Standards
 Interagency Appraisal Evaluation
Guidelines
Jurisdictional Exception
A state credentialed appraiser is asked to appraise
a minor acquisition, develop a value opinion for
only the portion of land impacted, and report the
opinion using what is described as a short form
without a before and after value being developed.
Does the above present a problem for a state
certified appraiser?
How is Experience gained?
• The one part of the current criteria
that must be examined is how credible
experience is gained:
• Experience is the one part of the
criteria that is lacking in acceptance.
• R/W appraisal assignments.
Future Issues
• State registration and regulation of
Appraisal Management Companies will
continue and likely expand.
• There will be a continual revision of
appraisal management services.
• AMCs have been a part of the appraisal
landscape for many years.
• The future will depend upon the continued
demand by the client users of AMCs.
Message to professional appraisers
• Get busy, this is your profession.
Never let anyone cause you to do
something you know is not correct.
• Become an advocate for the
appraisal profession. Get involved,
join other professionals, make your
voice heard.
Appraiser Demographics
• It is said appraisers will not be
needed in the next 5 years.
• It is said technology will negate
the need for an appraiser.
Is there merit in the above views?
Kentucky Appraiser numbers through the Years
Fiscal Year
Number of Appraisers
2000-2001
1,592
2001-2002
1,589
2002-2003
1,639
2003-2004
1,773
2004-2005
1,854
2005-2006
1,922
2006-2007
1,852
2007-2008
1,772
2008-2009
1,688
2009-2010
1,610
2010-2011
1,565
2011-2012
1,544
May 6, 2013
1,580
Kentucky Licensed / Certified Appraisers
(as of 4/02/13):
Certified
General:
558
Certified
Residential:
776
Licensed
Residential
Real Property:
Associate:
TOTAL:
17
214
1565
“Effectively, change is almost impossible
without industry-wide collaboration,
cooperation and consensus.” - Simon
Mainwaring
Larry Disney
859-623-1658 - Office
859-200-2912 – Cell
www.kreab.ky.gov
[email protected]