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Sorry I forgot about the new client rules

Discussion in 'Illinois' started by Leon Marcus, Mar 21, 2011.

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  1. Leon Marcus

    Leon Marcus Junior Member

    0
    Jan 24, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    I did go to the seminar ICAP put on for the new rules. I left the two papers we got on the table with my notes. Problem is I have the 1st AMC order and I was sure I remembered what I wrote down. On page 1 I have the AMC as the client/lender on the bottom of page 6 I have the bank listed and on the additional certification I put in the new rule and id the AMC as client and the bank as an additional user?
    I have the AMC saying it must be both the AMC and Bank on page 1. I am sure (sort of) they are wrong besides they both dont fit.
     
  2. ExplainDNA

    ExplainDNA Senior Member

    14
    Oct 30, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    This is so great, man, doncha just love it? I wish we had more neat rules like this one to help us all out and whatnot.

    Dave...
     
  3. BrianMasterson

    BrianMasterson New Member

    0
    Aug 28, 2010
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Courtesy of Donald J Martin on another forum (I'm sure he won't mind) here is a copy of the "rules," a link to a pdf version, as well as a link to the March, 2011 edition of the Illinois Appraiser newsletter:


    TITLE 68: PROFESSIONS AND OCCUPATIONS
    CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
    SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
    PART 1455 REAL ESTATE APPRAISER LICENSING
    SECTION 1455.250 GROUNDS FOR DISCIPLINE
    ...
    --------------------------------------------------------------------------------



    Section 1455.250 Grounds for Discipline



    Pursuant to Section 15-10(a) of the Act, failure to comply with any of the following shall be considered a violation and may subject a licensee to discipline as provided for in the Act and this Part:



    a) An appraiser shall identify an appraisal management company as the client if the appraisal management company is engaging the appraiser. If an appraisal management company is acting as an authorized agent for a financial institution, the appraiser shall identify the financial institution as the additional intended user.



    1) An authorized agent is defined as one approved by the board of directors for the financial institution and who has a specified level of authority relating to the appraisal process.



    2) An institution's board of directors is responsible for reviewing and adopting policies and procedures that establish and maintain an effective, independent real estate appraisal and evaluation program for all of its lending functions.



    b) If a financial institution is identified as an additional intended user, the appraiser shall ascertain the relationship between the client/authorized agent and the financial institution by doing one of the following:



    1) obtain a copy of the agreement between the client/authorized agent and the financial institution. This agreement shall set out the responsibilities and authority of the authorized agent.



    2) obtain a letter written by the client/authorized agent in which the agent sets forth its level of responsibility and authority. If the client/authorized agent cannot provide the appraiser with documentation identifying them as a duly authorized agent for the financial institution, a statement must be included in the appraisal indicating that the report may not comply with the Interagency Appraisal and Evaluation Guidelines, adopted October 27, 1994 by the federal Office of the Controller of Currency (OCC), Federal Reserve Board (FRB), Federal Deposit Insurance Corporation (FDIC) and federal Office of Thrift Supervision (OTS).



    3) directly communicate with the financial institution to determine the scope of the appraisal assignment.



    c) When an appraisal management company engages an appraiser by employment or contract for a specific assignment, the appraiser shall prominently display the appraisal fee received from the appraisal management company in the certification as follows: "The compensation for this appraisal assignment is $_____."





    (Source: Amended at 35 Ill. Reg. 1967, effective January 20, 2011)

    http://www.ilga.gov/commission/jcar/admincode/068/068014550F02500R.html

    http://www.idfpr.com/dpr/re/ILLAppr/IllinoisAppraiserMarch2011.pdf

    Page one and six of the URAR identify the "Lender/Client." Appraiser's Choice. There's not room for both. The intent of the rule is pretty clear. If the AMC orders the appraisal and is establishing assignment conditions, they are the client and must be identified as such somewhere in the appraisal. The wrong place in the appraisal is not the problem. No place in the appraisal is the problem.
     
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