"loan Amount" Or "value" Over A Million

[FreddyGates]

Before I motivate and call the OREA, is there anyone out there with a definate answer these questions about values/loans over one million:

Is it the "size of the loan" or the "value" of the property that a state licensed appraiser CANNOT appraise without a certified supervisor's signature? What if it's a sales transaction over a million but the loan is less than a million?

Thank you very much,

Freddy

 

[Lobo Fan]

Others may know for sure, but I think it is the "transaction" amount that triggers the threshold. If the purchase price is over one million then it requires certified appraiser. If it is a re-fi and the loan amount is less than one million, then a licensee is OK. This is just my personal opinion and is not based on any reseasrch or facts.

 

[George Hatch]

In California, the OREA has relied upon criteria established in the federal laws and regs as well as those established by the Appraisal Qualifications Board of The Appraisal Foundation. The scope of practice for a Residential License is as follows:

I. The Licensed Real Property Appraiser Classification applies to the appraisal of non-complex one to four residential units having a transaction value less than $1,000,000 and complex one to four residential units having a transaction value less than $250,000.

The scope of practice identified herein represents the consensus of the Appraiser Qualifications Board. The Federal Financial Institutions Regulatory Agencies, as well as other agencies and regulatory bodies permit the licensed classification to appraise properties other than those identified above. Individuals should refer to Agency regulations and State law to determine the type of property that may be appraised by the Licensed appraiser.

All Licensed appraisers are bound by the COMPETENCY RULE of the Uniform Standards of Professional Appraisal Practice.

"transaction value" is defined in the federal regulations:

(m)  Transaction value means:
    (1)  For loans or other extensions of credit, the amount of the loan or extension of credit;
    (2)  For sales, leases, purchases, and investments in or exchanges of real property, the market value of the real property interest involved; and
    (3)  For the pooling of loans or interests in real property for resale or purchase, the amount of the loan or market value of the real property calculated with respect to each such loan or interest in real property.

And lest anyone think that the only limitation on ALs is transaction value, there is also the matter of whether the appraisal assignment is defined as being "complex":

(e)  Complex 1--to--4 family residential property appraisal means one in which the property to be appraised, the form of ownership, or market conditions are atypical.

If the transaction value is below the deminimus of $250K, complexity isn't an issue for an AL. But if it's between the $250,000 - $1,000,000 range, assignment variables can contribute to an assignment that exceeds the scope of practice for an AL. It doesn't take much to come up with examples of a property or a form of ownership or market conditions that are atypical.

 

[CANative]

Here is a link to the issue

 

[FreddyGates]

Thank you all for your input and information! That just about clears up the issue.

Thanks again,

Freddy