Illinois Appraisal Licensing Act

[Blades]

I received an email from ICAP regarding the new RULES to the Illinois Appraisal Licensing Act.

Here is the link:
http://www.ilga.gov/commission/jcar/admincode/068/06801455sections.html


Interesting tidbits under Grounds for Discipline section:

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 $_____."

 

[Lee Lansford]

That which you quote and reference is actually the newly adopted RULES (which "spring" from License Law), but, nonetheless, important to IL licensees (and, other folks).

I suspect that the RULES will be a topic of discussion at the upcoming meeting of the Appraisal Board.

 

[Blades]

Thanks for the correction Lee. I edited the original post.

 

[Brian Weaver]

Thanks for the correction Lee. I edited the original post.

The March issue of our newsletter will be chock full of Rules changes and what they mean for everyone appraising in Illinois or ordering an appraisal in Illinois.

 

[NORTON]

The March issue of our newsletter will be chock full of Rules changes and what they mean for everyone appraising in Illinois or ordering an appraisal in Illinois.

put this man in charge of the country...or at least California

 

[William K]

I suspect some AMCs are not going to be very happy with the required disclosure of the Fee paid to appraiser in the appraisal report:laugh:

 

[Mary Tiernan]

So, I believe this is a contradiction to the new UAD from Fannie Mae which states:

Lender/Client
The appraiser must enter the name of the lender. Any applicable AMC name should only be entered in the Appraiser Certification Section.
Reporting Format:
Lender/Client – Text

 

[Brian Weaver]

So, I believe this is a contradiction to the new UAD from Fannie Mae which states:

Lender/Client
The appraiser must enter the name of the lender. Any applicable AMC name should only be entered in the Appraiser Certification Section.
Reporting Format:
Lender/Client – Text

When Fannie starts issuing licenses...

Here's the deal. States cannot write laws that turn on a dime. Our rule change was being considered back when Fannie & Freddie were taken over by the Feds. Look how long its taking for the Dodd-Frank stuff to get sorted out. Statutes, whether federal or state, take time. Above all, none of this was done in the dark. There have been public comment periods before any of this became law. So...where was Fannie during this period? They could've piped up at any time during the two 45-day public comment periods. Now...its too late.

 

[Pat Butler]

Is this rule effective right now? Does this also apply to relocation mgt companies? The transferee is not likely to be paying the appraisal fee themselves and probably be the least likely to care what it costs. But if it's a requirement, then hey, I'm on board.

EDIT-- OK, looks like the eff date of the rule is January 20th, so just need to know if relocation work is covered. The majority of the sections in that rule talk about AMCs that are related to financial insitutions, then section "C" just sort of stands out there by itself. I'm guessing that relo work via a relo mgt company is covered based upon the definition of an AMC in rules but just wanted to dbl check.

 

[Brian Weaver]

Is this rule effective right now? Does this also apply to relocation mgt companies? The transferee is not likely to be paying the appraisal fee themselves and probably be the least likely to care what it costs. But if it's a requirement, then hey, I'm on board.

EDIT-- OK, looks like the eff date of the rule is January 20th, so just need to know if relocation work is covered. The majority of the sections in that rule talk about AMCs that are related to financial insitutions, then section "C" just sort of stands out there by itself. I'm guessing that relo work via a relo mgt company is covered based upon the definition of an AMC in rules but just wanted to dbl check.

Not relo companies. We would've stated as much.