2000 Hrs Competency Rule

[Ray Miller]

I have a question about competency.

In Wisconsin you are licensed with 500 hours of experience. However, to be on the National Register you need 2000 hours. I understand that this 2000 hours of experience is now required for any federal related transaction. In other words if the appraisal is part of a loan that is going to be sold to some federal related institution later in its life. If that is a correct assumption, then if a Wisconsin appraiser fails to place in the addendum the fact that s/he isn’t on the federal register and do not have the required 2000 hours of experience, they would in fact have a misleading appraisal and be in violation of USPAP.

What would they need to do in order to comply with USPAP and the federal requirements

 

[CANative]

Licensed Appraiser (From Wisconsin web site)

As a licensed appraiser, you will be eligible to appraise residential properties up to $1 million and commercial properties up to $250,000. To apply for the license examination, the 90 hours of approved course work must be completed and the 500 hours of experience must be documented.

Education: 90 hours s. 458-085 Wis. Stat. RL 84.04
Experience: 500 hours
Continuing Ed: 28 hours every two years

Jeepers... that doesn't sound like much experience to become licensed, but if that's what your state requires then your licensed. I don't know of any "Federal Registry."

 

[Rob Bodkin]

Ray,

At the request of sounding like an idiot, what national registry?

Some states "regulate" and "license" trainee's, but not here in Washington, so in our state effectively there is little difference between a certified and licensed appraiser, I do not mean generally certified of course.

Perhaps your talking about some type of trainee license.

Either way, the appraisal would only be misleading if you stated some level of license or competency that you did not hold. As long as you are clear with your client about your level of competence and license, it would then be the responsibility of the client to ensure that the appraiser is licensed/certified appropriately.

my .02 cents
Rob Bodkin

 

[Ray Miller]

AQB. Appraiser Qualification Board. You are listed as non-AQB-conforming or AQB conforming. You can find additional information at www.appraisalfoundation.org

 

[Mike Garrett RAA]

Confusing .... isn't it!

Four license levels in MY STATE (Colorado).

Registered Appraiser (Trainee) 75 classroom hours including 15 hours of USPAP

Licensed Appraiser - Can do non-complex residential properties 2,000 hours of experience over a minimum of one year.

Certified Residential Appraiser - Can do all residential properties with no value limitation. 2,500 hours of experience over at least two years.

Certified General Appraiser - Can do anything so long as competency is not an issue. 3,000 hours of creditable experience.

Licensed, Cert Res, and Cert Gen are included on a National Registery of Appraisers. (check out the Appraisal Foundation website for a link. A portion of our license fee ($25 per year) goes to this registry.

 

[CANative]

Colorado appears to be the same as California: AT, AL, AR, AG

 

[Charlotte Dixon]

In Delaware....

2.5 Federal Appraiser Registry

Licensees and certificate holders are required to be enrolled in the federal roster or registry of state licensed and state certified real property appraisers. The fee established for that purpose shall be paid biennially by the license or certificate holder to the State of Delaware.

 

[Greg Hyland]

Ray-

You don't have anything to worry about, I assume that you are licensed or certified, by the posts that you make. Sounds like you are an active appraiser.

That 2000 hours is going into effect because WI is one of 6 states that do not have the 2000 hours.

This is for new people getting into appraising in WI. I think it's great, will cut some of the nonhackers that are getting into appraising because they think it is fast-easy money. Once they figure they have to actually work,learn, and put effort into getting licensed, they will bail out.

The state is looking at having an internship type course with schools to help people get the experience hours.

 

[Ray Miller]

It is my understanding that it applies to all appraisers in WI in order for them to do loans that end up at a federal lending agency. It is a federal requirement for the 2000 hrs. not a state. That those that have had their license for several years but do not have 2000 hrs it applies to them also. They will not be able to do federal loans or loans that will be sold to the fed. They need to be conforming -AQB.

We were talking about it in our Certified General Class, before finials last week. By the way (brag, brag) I passed the course, by the grace of God and the skin of my teeth.

My question again, if a licensed appraiser fails to inform or state in the report that they are not AQB conforming and the appraisal is sold later to the fed. Where dose that leave the appraiser for failing to disclose.

 

[Farm Gal]

Ray:
to some extent I think the client would be obligated to inform the appraiser of thier intent to USE the appraisal for a FRT... that said the appraiser in that position would be wise to disclose as boilerplate in his/her scope.

Anyone wanna bet that 2/3 of the appraisers in those 6(?) nonconforming states haven't a CLUE that they might be developing reports which could be considered ' misleading' ? <_<