DoddFrank Act Title XI Changes January 1 2015

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-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 324 A. 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

324 A. 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 13 A 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 3 Trainee 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