Just what is an FRT and when does your appraisal Fall under Designation ?

[CANative]

OK. Here is how the FAQ at OREA actually reads...

Question: How can I gain acceptable experience as an unlicensed appraiser?
Answer: Acceptable experience may be accumulated as an unlicensed appraiser in any of the following ways:

By providing "significant professional assistance" to another appraiser and having the duties you performed identified in the report. If at least 75% of the professional appraisal work is performed by the unlicensed person and the appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), this experience would qualify under Category 10 (Assistance in the Preparation of Appraisals) for up to a maximum of 400 hours of credit;

By performing the entire appraisal process under the direct supervision of a California licensed appraiser. The final conclusion to value is made by and the appraisal is signed by the licensed appraiser, with you and the duties you performed identified in the report. If the unlicensed person performs all appraisal methods customarily used for a particular property type and the appraisal conforms to USPAP, this experience would qualify under Category 1 (Fee and Staff Appraisal) with an unlimited number of hours; and

By the unlicensed person completing appraisals him or herself in non-federally related transactions. In California, any appraisal completed for a federally related transaction requires a licensed appraiser. However, work performed for attorneys, private individuals, etc., are generally not federally related transactions and can be performed by anyone. If the appraisal conforms to USPAP, this experience would qualify under Category 1 (Fee and Staff Appraisal) with an unlimited number of hours.

If we changed this question slightly to...

Question: How can I gain acceptable commercial experience as an certified residential appraiser?

Answer: Acceptable commercial experience may be accumulated as a certified residential appraiser in any of the following ways:

By providing "significant professional assistance" to another general appraiser and having the duties you performed identified in the report. If at least 75% of the professional appraisal work is performed by the certified residential appraiser and the appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), this experience would qualify under Category 10 (Assistance in the Preparation of Appraisals) for up to a maximum of 400 hours of credit;

By performing the entire appraisal process under the direct supervision of a California cert. general appraiser. The final conclusion to value is made by and the appraisal is signed by the general appraiser, with you and the duties you performed identified in the report. If the residential appraiser performs all appraisal methods customarily used for a particular property type and the appraisal conforms to USPAP, this experience would qualify under Category 1 (Fee and Staff Appraisal) with an unlimited number of hours; and

By the cerified residential appraiser completing appraisals him or herself in non-federally related transactions. In California, any appraisal completed for a federally related transaction requires a licensed appraiser. However, work performed for attorneys, private individuals, etc., are generally not federally related transactions and can be performed by anyone. If the appraisal conforms to USPAP, this experience would qualify under Category 1 (Fee and Staff Appraisal) with an unlimited number of hours.

... does this mean a certified residential appraiser can do commercial work for private parties, attorneys, "hard money, private lenders", etc.?

 

[KenRossman]

Any dude can perform non FRT appraisal services in a voluntary state.

Once the dude becomes licensed/certified however, FRT or not, the dude must abide...

 

[rcsone]

...seems that this is a discussion about the length or diameter of the rope or how far drop past broken neck is necessary, not whether there can be a successful hanging for part of the participants......to me there is an "implied" relation and a "required" relation and the distinctions will be made at the Court House by those who have no interest in the so called "intent".....their resulting, real decisions may have only superficial resemblence to the prose in FIREA, FRT, USPAP, and ETC. concerning the "theoretical" rules of relationship and responsibilities.....a retreat to or from the rules of USPSP or any of the above will provide the appraiser enough protective material to make snow boots for a mosquito........logic and liability go foot in hand.............best to all......rs

 

[Carnivore]

Ken,

Is NY a voluntary state? North carolina is not a voluntary state. Thats why
I get so worked up about RE Agents completing BPO's for refi and purchase money mortgages.

 

[KenRossman]

Yes, NY is a voluntary state.

 

[Michael Tipton]

The following was posted by Frank G earlier this year in a similar thread. This post addresses Florida requirements only.

Long before licensing and certification of appraisers was required under Title XI, a license was required to appraise real property for others, for a fee, in Florida. Florida was among the first states to adopt a licensing and certification law for appraisers. It was subsequently determined to not comply with Title XI and a new one was adopted.

In each case, the Florida Legislature decided to continue to allow real estate licensees to appraise real property, just not for Federally Related Transactions. Quite a few real estate licensees here in Florida decided to not seek certification. In addition, the Florida Legislature tends to be reluctant to diminish the rights of licensees just because the Feds says so. The Legislature has not granted the right to appraise to any other professions:icon_wink: and I doubt they will.

The Legislature, with prodding by the appraisal profession and lobby, DID restrict that right in 2001 or 2002 by requiring real estate licensees to comply with the USPAP when completing appraisals. We were able to convince the real estate folks it was in their best interest.
__________________
Frank
.....there is no hell....there is only france...

http://appraisersforum.com/showthread.php?t=121012&page=2&highlight=Orlando+Realtors

 

[CANative]

Once the dude becomes licensed/certified however, FRT or not, the dude must abide...

Abide by what?

 

[KenRossman]

CA Scope - see chart which says nothing about "Federally Related"

 

[Mike Kennedy]

Originally Posted by Wayne Tomlinson
The GSEs technically are not FRTs. That said, the GSEs have elected to be treated as FRTs. Therefor if it is for a GSE; Freddie, Fannie, VA FHA Rural Development etc, then as far as the appraiser is concerned, all those are in fact FRTs.

That is simply not correct. While they require appraisers to be Certified or Licensed, that is different from choosing to be a FRT. It is required that an appraiser be aware of the regulations and guidelines that apply to each assignment. Just as regulations for the various bank types are similar, appraisal regulations are similar; but they are not exactly the same. Approaching a given job with a "they are all alike" attitude can lead to problems.

************************************************** ***
In addition, Title XI specifically REQUIRES appraisals by licensed or certified appraisers for financial transactions for

the Federal National Mortgage Association (Fannie Mae);
the Federal Home Loan Mortgage Corporation (Freddie Mac); or
the Resolution Trust Corporation (RTC), the agency created by the Congress to liquidate the assets of the nation's failed savings and loan institutions.

Although not specifically mentioned in Title XI, loans insured by the Federal Housing Administration (FHA) and loans guaranteed by the Veterans Administration (VA)

ARE ALSO

considered federally related financial transactions.
__________________________________________________

Wayne was correct.

 

[Howard Klahr]

Where is this addressed? FIRREA does not include Fannie, Freddie or the VA at all. It is not included in the definition of FRT, nor are these agencies included anywhere in this legislation.

You would think after all these years this would not continue to be an issue.

Title IX - FIRREA