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New NC "Trainee" rules, help or hindrance?

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Doug in NC

Elite Member
Jan 17, 2002
Professional Status
Certified Residential Appraiser
North Carolina
I just read about the new NC trainee requirements. I predict a substantial dropoff in the number of new trainees that are going to be entering the system. In some ways this is good, but it will definitely limit the new talent that will be entering the field. Maybe this will make it easier to raise fees?

I had been asked by a recent college grad to consider him for a trainee position, I don't think this will happen now. Maybe he will be glad he didn't enter this industry. Under the old policy he would have worked for peanuts, now he would be working for almost nothing or for free in some markets. If competition among appraisers is substantially diminished, this could lead to even lower quality appraisals because there will be little fear of losing business if there is no one to replace a poor appraiser.

*(In particular, supervisors will have to accompany the trainee to the first 50 inspections)
Jan 16, 2002
Professional Status
Certified Residential Appraiser
North Carolina
Doug, for the most part I like the new rules. Like you said, the rules will limit the number of trainees being trained.

The best of the rules is #2 which limits a supervising appraiser to two trainees at one time. I know a mill operator who keeps three.

The effective date is 8-1-02. If a certified already has 3 trainees before that date can he keep 3 or must he release one? If the trainee has done 25 unsuperivsed inspections, must the supervisor accompany him on the next 25, or is he grandfathered? If a supervisor has been certified for only a year and a half on 8-01-02, must he quit supervising for six months?



As with all the idiotic rules that are written for appraisers, the obvious is being overlooked. The appraisal industry is dictated to by USPAP and State laws like above without recognizing the actual practice of appraising extends beyond the Single Family Residence. I know an appraiser who appraises at most 10-15 properties per year...and drives a Jaguar. The fee is typically from $5,000 to $40,000 or more per property because of the nature of his complex commercial business. He has about 4 employees, one who is an appraiser....So, if he was in NC, his "trainee" will take 5 - 6years before he does not require escort? And, frankly, few of his appraisals require "inspection" because he appraises mineral rights and small oil companies.
I hardly qualify as a "mill" - we are on schedule to do 300 appraisals this year and that is me and 3 RA's - few will be for secondary market, perhaps 15 - 25 by years end. The AMC's need to replace the appraiser entirely for mortgage lending under $250,000 because in another 10-15 years when the baby boomers start disposing of all the property they have accumulated, there will be no one to appraise SFR. All of us will (not all of us, because in 15 yr. I hope I am retired) be too busy with the commercial and non-lending property to do SFR.
These rules will have the net effect of reducing the number of our replacements which means "down the road" we will NOT have a lock on the business, but rather the states will be forced to create new "valuation" or "estimator" services to do the nuts and bolts "stuff" and "appraisers" will be phased out as "sunset" businesses.
Jan 16, 2002
Obviously I'm not familar with NC rules, but how does that change anything ? 2 per supervisor ? Suppose the mill has 12 licensed appraisers x 2 = 24 appraisers in the mill (?). I'm probably missing something here.


Elite Member
Jan 16, 2002
Professional Status
Certified General Appraiser
About six months ago on this board an appraiser from NC reported that in his county there were something like, 80 practicing appraisers. Five certified general, 12 certified residential, and 63 trainees. You figure out the numbers. I stopped trying to figure NC out long go. As they use to say, there is a skunk in the woodpile down there.

David C. Johnson

Senior Member
Jan 15, 2002
Doug and others:

Some very good questions have been posed in this thread. The answer to most of them is as follows:

Everything will be decided on a case-by-case basis depending on who you know at the NCAB.

Were some or all of the important issues that were raised above in this thread considered and addressed by anyone at the NCAB before making these changes to state law?

Don't count on it (at all). The NCAB thinks ahead a bit, but rarely about legitimate issues. I wrote the following post to Steve Vertin's post a few days ago regarding very similar concerns about the Illinois board's proposed changes. The post appears to be fitting here as well:

<span style='color:green'>Steve,

The OBRE may be on to something:

If compliance can be made onerous enough and irrational enough that the majority typically fail to comply, the majority will typically be guilty of noncompliance.

A guilty population renders the OBRE's job both easy and fulfilling as it allows for shorter days, while improving conviction numbers.

Most important, the OBRE can now more strategically and conveniently "pick and choose" among the population (i.e., the guilty) for whom to actually prosecute and find guilty.

Now that's power. Power is satisfying. Power is fun.


But the NCAB is better. They're smarter.

Their newsletter came out today, mailed to 4,000 addresses across the state at 33 cents per copy. And it details a whole slew of new Board Rule Changes (i.e., amendments to state law), but not all of them:

"Many other important changes have been made to the
rules in the area of education. All appraisers are
encouraged to become familiar with the new rules
before they go into effect. Contact the Board's office
to request a copy."

Were the remainder of these "important changes" just entirely too voluminous to include in today's mailing? Or to post to the Board's website?

Guess so.

Wonder if any of the state's appraisers might negligently forget to "request a copy" ?

If so, some might find themselves to be noncompliant (i.e., guilty).

See what I mean? Always thinking ahead.

Our board is smarter than yours.


David C. Johnson</span>


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