Did I read this correctly??? A person does not have to be licensced, registered, or certified in Kentucky to do appraisals in Kentucky (..the act is purely voluntary). If this is so, why even have a board or laws regarding appraisals? I surely mis-read the document. Someone familiar with Kentucky please explain this to me.
BPO's for loans, REO's, divorces.....Hey, we don't need no stinking appraisers!
Way to go Kentucky. You have successfully taken any control whatsoever from real property values being regulated and uniform, except if the evaluating party happens to be an appraiser. Let's see, Joe appraiser wants $300, and Fred Broker will do it for $100. Hmmm. What's the likelihood of regulation here? If the party is not licensed, typically the licensing and regulation authority has no jurisdiction. Fraud can run rampant. The only recourse is to submit blatant violations to the District Attorney, who just happens to be buried in more serious and life threatening cases and tosses your 'minor' white collar crime aside. (this has been our experience in NM with unlicensed real estate sales people, may be different in other areas)
Unfortunately, there are many states similar. Had a call from a California real estate management firm several weeks back. They didn't know how to treat, or compensate working with an appraiser because I lived in one of those 'non BPO' states.
Montana doesn't require you to be licensed / certified to do appraisals either. The only time it's required is if it's a federally backed program, or something like that. I know people who make a decent living "appraising" homes for banks that keep the loans internally (don't sell them on the secondary market), and have no license.
I believe the qualifying factor is not "federally backed program" but "federally regulated transaction". The latter includes all regulated entities under FIRREA. This includes banks, savings and loans, thrifts, credit unions and any other financial entity subject to federal supervision or oversight, making even portfolio loans (in-house) subject to federal regulation. The capper is the $250,000 de mininimus level with respect to the transaction amount that limits the requirement for appraisals not whether it is sold on the secondary market. The secondary market often has supplemental requirements that a licensed or certified appraiser perform the appraisal.
"...does not preclude a person who is not a licensed or certified real estate appraiser from appraising real property for transactions not related to a federal agency or project for compensation, provided that the person does not purport to be a licensed or certified real estate appraiser..."
Forum: These laws are very quitely bing passed with the help of NAR and AI. The latest fight is in CA, in a law purposed by the Institute. Laws passed in the last 2 years were in Mich, Ohio, Ill. that I know of.
The secret is in the words-Federally related and deminimus.
American Guild of Appraisers OPEIU AFL-CIO [email protected]
In kaintuck, If you happen to be someone in the business of providing appraisals and HAPPEN to have a piece of paper that says you are competent even if you write a bulletproof Scope of work you just might be considered 'guilty' whether or not you are in violation KStatute#whatever or compliance with USPAP?