Appraisal Buzz Interview With Don Kelly

[George Hatch]

The problem with accomodating special cases is that the majority of people who take advantage of those accomodations are not the special cases for which those exceptions were intended. This is a case where it's better to inconvenience the few than it is to create an unnecessary loophole.

Temporary practice is not the same thing as reciprocal licensing. With reciprocal licensing the individual is licensed to perform an unlimited amount of work in that state as a licensee in that state. Temporary practice permits allow the visiting individual to come in and perform specific assignments without having to go through the entire licensing process.

The states are required to offer temporary practice permits, and are highly encouraged to use a process that is expedient and a fee that is reasonable. If the assignment involves a 5 figure fee that $200 temporary practice permit fee shouldn't pose a problem, and neither should the 1 week processing time. For specialty appraisers I would think that most states would not object to making an exception as to how many such appraisals could be performed by an individual in their state during the course of a year without having to go through a permanent license application process.

 

[Francois K. Gregoire]

Terrel.

As George notes, a Tempoary Practice Permit is a slighlty different animal than a Reciprocal License. Title XI requires states to issue Temporary Practice Permits for Federally Related Transactions. A State's procedures and fees for TPPs are monitored by the ASC and considered during the ASC Field Reviews. ASC Policy Statement 5. outlines their policies. Among them are a requirement the TPP be issued in five days or less and the fee should not exceed $150. States should not require a TPP for each property, but should issue the permit for an assignment. It should be issued for a period of not less than six months and should be easy (they say "effortless") to renew.

Yes, there are a number of specialists in the country and yes, their level of expertise and competence may exceed that of a home state appraiser. If the assignment is completed for an FRT, then a state has no choice other than to follow the law. If the assignment is NOT an FRT, the Federal Government has no jurisdiction and should butt out of a states' business. States have rights too. Well some among us believe so.

FTR, my state does not issue reciprocal broker's licenses either. Florida has entered into Mutual Recognition Agreements with other states for RE Licenses. Florida does have a Mutual Recognition Agreement with the state of Georgia for non-resident Certified Appraisers.

You will have no problem getting me to admit I am biased on this particular issue. My arguments might differ significantly if I was on the other side of the fence. However, I do have a dog in this fight and have no shame in rooting for him. As such, I've no problem with others rooting for their side.

 

[PL1957]

Originally posted by Peter LeQuire@ IFA,May 5 2005, 06:46 PM
This is, IMNTBH opinion, but another symptom of the Institute's desertion of the residential appraiser.

The individuals most likely to hold multiple state licenses are either a) residential appraisers who live in areas near state lines, or B) commercial appraisers whose clientele wants them to appraise properties in multiple states.

How does the AI trying to address this issue indicate "desertion of the residential appraiser"?

If anything, the AI's attempts to clarify the fact that professional designations CAN be used in determining choice of appraisers is a boost to their residential membership.

At this point, I think the AI is the only group out there with a coherent, cohesive plan for the industry. By no means is the plan perfect, but it's easy to criticize. It's much harder to come up with something acceptable to a diverse group like appraisers.

 

[Carnivore]

PL,

Have you ever considered that AI membership recruiting is a paradox to MAI's.

That membership levels exceeding 20% of the total appraiser population is probably not in the best interest of MAI's.

That power and influence will be diluted to the point MAI's may have to go off on there own.

Lets see, 5,000 MAI's and 50,000 SRA's.

Think of a weather vane!

Paradox indeed!

 

[Bill Rose]

More legislation. Good. Complete overhaul of the system? Better. How about the AI developing a course of study for colleges, who would then be responsible for education and then discontinue the current state agencies. The AI could conduct the licensing. Let's face it, the state system is a dismal failure.

 

[Peter LeQuire]

PL -

Not to be argumentative, but from a cursory overview of the various initiatives the AI has undertaken for the past several years, and from attending its functions and reading its publications, I'm hard pressed to find a great deal of encouragement for residential appraisers from its actions. I don't think that mark to market, international valuation standards, et al. offer a great deal for residential appraisers. If that were the case, AI wouldn't now be doing a student body right to get its residential hangers on to complete designation requirements. Is it not true that there has been a decline in SRA membership? If there have been more significant initiatives than the residential data base and "promoting" designations that directly benefit residential appraisers, I'd love to be reminded what they are.

 

[PL1957]

Originally posted by Peter LeQuire, IFA@May 6 2005, 09:12 AM
Is it not true that there has been a decline in SRA membership? If there have been more significant initiatives than the residential data base and "promoting" designations that directly benefit residential appraisers, I'd love to be reminded what they are.

I'm not privy to the numbers for AI membership, or for membership of any other organization, but I'm guessing nobody has seen in a boom in residential designation numbers.

I think the AI has been caught up in the flux involving residential appraisal that has occured over the last 10-15 years. I think the AI has been acutely aware of the challenges facing their residential membership, but has had little success in solving problems which are industry wide. It's not that the haven't tried, it's that they haven't succeeded.

I think the current efforts to emphasize the difference in education levels between SRAs and state certified appraisers is a positive step. Will it make a difference? I don't know, but you can't blame them for trying.

 

[Carnivore]

Extolling the virtues of AI Members to the general market will definitely help SRA's and MAI's in non-lender work, imho. Its easy to understand that the odds are with the client if they are in litigation and they use an AI member as opposed to everyone else. Its no garantee, but certainly the odds favor them on education and training.

On the other hand I dont believe it will do anything in the lender community. The implied cost is just to high. If you look at other professions its easy to understand why. Public school teachers for example are not hired because of the school they attended. They are hired because of the degree and teaching certificate. Most teachers have a BA or an associates degree, sometimes even less. Frankly its rare to see a primary public education teacher with a masters(some have it, but it does not pay much more). If they do attain a graduate degree its because they are pursuing a management position in education.

SRA, membership will continue to decline with AI, imo, because there is no perceived additional value of an SRA over a plain ole dude like myself. The lending community see little to know value in a designation. Any reduction in the labor supply will only increase the cost to conduct business thus reducing there profit or competitiveness. It aint gonna happen if they have any say about it!

ftr, If I was an AI member I would oppose any effort to reduce SRA requirements.
I would support effort to develope an interim membership designation w/voting rights. I would also support a reduction of annual associate membership fees to the absolute minimum administration cost necessary to manage them(this is the hook).

This is not meant as a slam on AI. I see AI as the only organization capable of increasing the value of the appraisal profession. Theres a lot of smart people in that organization. They dont need me to find the answers.

 

[Randy Beigh]

I see AI as the only organization capable of increasing the value of the appraisal profession.

I say go AI. The more they push their membership benefits, the more they push the appraisal profession. It can only be good for all appraisers.

 

[George Hatch]

Come 2008, the mandated education hours (200 hours) and the requirement for academic education for the Certified Residential classification of licensing will be virtually the same as for the SRA. If the applicant is smart enough to take their education with the AI they'll just about be able to qualify for the SRA about the same time as when they qualify for the ResCert. They'll probably have to put in a little more experience.

The difference in education hours between the MAI designation (363 hours) and the General Certification (300 hours) will only be 63 hours, again depending on whether or not the applicant took their education through the AI.

On the plus side, it should expedite the designation process for those licensees who qualify under the increased criteria. On the minus side there won't be much to distinguish designated appraisers from other licensees, except that many of the licensing programs have a much more active enforcement system and the AI has a much more comprehensive review of the experience hours being claimed.

There will be some differences between the two systems, but it certainly won't be like night and day.