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Appraiser Licensing Qualifications Changes

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luv1138

Freshman Member
Joined
Sep 13, 2017
Professional Status
Appraiser Trainee
State
California
These new qualifications will take effect on May 1st, 2018.

The Appraisal Qualifications Board (AQB) has adopted changes to the minimum licensing requirements. For those unfamiliar with the AQB, it sets the minimum licensing requirements for appraisers nationwide. States can impose licensing requirements in addition to those set by AQB, but must, at a minimum, meet AQB’s minimum licensing requirements.

In 2015, the AQB increased the education requirements for applicants seeking a residential license to a minimum of 30 college semester units or an Associate’s degree, and applicants seeking a certified residential or certified general license to a Bachelor’s degree or higher. Beginning on May 1, 2018, the AQB will change these requirements to the following: 1) remove the college-level education requirements for the residential license; and 2) provide alternatives to the Bachelor’s degree requirement for the certified residential license. Individuals will be able to apply to the Bureau under the new AQB education requirements on or after May 1, 2018. Final administrative language may vary; we will announce any changes or updates to these requirements.

The AQB also adopted a reduction to the amount of experience required to receive or upgrade a license to the following: 1) residential appraiser to 1,000 hours in no fewer than six months; 2) certified residential appraiser to 1,500 hours in no fewer than 12 months; and 3) certified general appraiser to 3,000 hours in no fewer than 18 months. The Bureau is now evaluating whether it should reduce its experience hour requirements. If so, the Bureau will propose to amend its regulations. This process takes time and will not be completed by May 1, 2018. Therefore, the experience hours currently required will remain the same until the Bureau adopts regulations on this issue.

We highly encourage our licensees, appraisal management companies, and other stakeholders to share this information with others in the industry. The Bureau uses multiple avenues to share updates and announcements including email blasts and social media pages.

This will make a lot of trainees like myself happy :)
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
AQB sets a minimum standard. Don't state boards have the option of having higher standards?
 

apt20

Junior Member
Joined
Oct 10, 2012
Professional Status
Certified Residential Appraiser
State
Illinois
And it won't make a difference if your state doesn't adopt these changes.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Inbreeding leads to inherent hereditary weaknesses that lead to eventual extinction. Evolution is what it is. Look it up.
 

BRCJR

Elite Member
Gold Supporting Member
Joined
Sep 20, 2005
Professional Status
Licensed Appraiser
State
Virginia
AQB sets a minimum standard. Don't state boards have the option of having higher standards?
Yes, they do have the option. If they have never exercised that option in the past most likely will not do so now.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Yes, they do have the option. If they have never exercised that option in the past most likely will not do so now.
In most states, it will take a change in the existing laws or regulations to implement the new, lower AQB standard, just like it did previously to implement the higher standard when adopted although some state laws and regulations may be written in a manner that the qualifications will change automatically based on the minimum AQB requirements.

In Maryland, for example, the previous AQB requirements were adopted by statute, so the adoption of the new, lower AQB requirements will take another statue passed by the legislature to implement.
 
Last edited:

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
I just ran the numbers in California

.03/2017..02/2018
AT....703......766
SL..1393....1356
CR..5898....5755 (AL+AR in 2017 was 7291; total AL+AR in 2018 is 7,111)
CG..3203....3173

The overall count for residential-only appraisers declined by 2.5% over the last 11 months. This doesn't include the CGs who also perform SFR appraisals on a regular basis. Interestingly, this is the first time the number of CGs has declined by more than 25 heads in a single year since 2012.


But, the SFR appraisers in CA still have a big problem.

.01/2002..04/2008
AT..1669...4600
SL..1958...5254
CR..3917...6017 (AL+AR in 2001 was 5847; total AL+AR in 2008 was 11,271)
CG..3399...3564

The supply/demand situation for SFR appraisers was real stable in 2002, that being about midway in the prior RE cycle. Then that number nearly doubled into the oversupply that drove fees into the dirt. As of right now, the current number of SFR appraisers (7111) is still 17.8% higher than the 2002 total (5847). When combined to the decline in the percentage of full fee appraisal assignments that has occurred during the interim (lost to competing valuation products such as AVMs and BPOs) the SFR appraisers in this state are still struggling against a gross oversupply of capacity when compared to where we were in 2002.


Meaning, any SFR appraiser in CA who has a trainee right now is prolonging the length of time it will take to bring the supply/demand back closer to parity.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
The supply/demand situation for SFR appraisers was real stable in 2002, that being about midway in the prior RE cycle. Then that number nearly doubled into the oversupply that drove fees into the dirt. As of right now, the current number of SFR appraisers (7111) is still 17.8% higher than the 2002 total (5847). When combined to the decline in the percentage of full fee appraisal assignments that has occurred during the interim (lost to competing valuation products such as AVMs and BPOs) the SFR appraisers in this state are still struggling against a gross oversupply of capacity when compared to where we were in 2002.
It is not only competing valuation products that is an issue, it is lower loan volume...even with increased mortgage volume the past few years, mortgage volume has not returned to to anywhere near the pre-bubble peak:

loan_origination_trends_q1_2016.png


mortgage-graph-3-1.png
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
If the state boards find USPAP report violations when they get a complaint (most likely because the borrower didn't get his number) and the current licensed and certified appraisers have more education and experience, how are they improving the profession if they lower the education and experience hours? How do you get smarter about USPAP with less education and experience.

Won't each state have hearings on the adoption of the new standard and won't there be input from the public and appraisers?
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
It is not only competing valuation products that is the issue, it is lower loan volume...even with increased mortgage volume the past few years, mortgage volume has not returned to to anywhere near the pre-bubble peak:

loan_origination_trends_q1_2016.png


mortgage-graph-3-1.png
I had never seen the bottom graphic. Depending on when in 2017 that measurement was taken we may be even worse off now than I thought. If the total for 2002 was ~2700 and 2016 totaled ~2100 that's a 30+% decline in total dollars. Assuming the 2016 pricing was more/less equal to the 2002 pricing (which was the case in some of the market segments in my region).
 
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