Which states require all appraisals to be done by licensed or certified appraisers?

[Oregon Doug]

Some states only require licensed appraisers for federally related transactions. Others require licensed appraisers for all appraisals. Is there a list somewhere of which state is which?

VM

I vaguely recall seeing such a list somewhere on the AF's web pages at sometime in the past. It stated which states are mandatory and which are not for FRT's. BUT, each state has its own set of exceptions so, you'll have to research each state's regulations.

Oregon Doug

 

[Mike Boyd]

There is no state in the US that effectively enforces
that appraisals be done by "appraisers." Appraisals
are frequently done from court work to lending by
real estate brokers, AVMs, IPOs (Zillow, Zaio), and
others we haven't even figured out yet.

BUT.....they cannot be called APPRAISALS. An
APPRAISAL must be done by an APPRAISER.

 

[Elliott]

Mike,
SO....its okay if they are used like appraisals,
as long as they aren't called APPRAISALS?

 

[Pamela Crowley (Florida)]

Mike,
SO....its okay if they are used like appraisals,
as long as they aren't called APPRAISALS?

The joy of licensing.
Just because it doesn't include common sense doesn't mean our government(s) can't and/or won't incorporate it. Maybe, just maybe, it MUST NOT involve common sense is mandatory?

 

[TEL2002]

I would like to see a couple of changes to all state laws.


1. Appraisal --- Define an appraisal as a specific opinion of value (ie. $100,000).

2. Opinion of Value (OOV) --- Defined as a range of value. Range to not be less than +-5% (ie. $95,000 - $105,000).

3. Only Licensed or Certified appraisers may do appraisals.

4. All others (RE Agents, AVM's , local wino's, teenagers, etc.) may do Opinions Of Value. (OOV's)

5. Appraisers could also do OOV's as a consulting service.

 

[Terrel L. Shields]

Defined as a range of value

why? Range or point value..its a value. Secondly, from state to state the laws are too vague and too inprecise. Third, we don't have a copyright on "Appraisal". The term often is a statement relating to evaluating a person's work performance; many "appraisals" are not value appraisals.

Instead of changing the world, we are the ones who need to change. The Brits and Canadians talk about Valuers and Chartered Surveyors, and even in the U. S. a boat appraiser is a "Marine Surveyor".

The problem is lack of lender regulation and these incredibly stupid loans made with no documentation and no appraisal or only a minimal appraisal product.

Mortgage brokers should be held to the same laws as bankers, should have to attend classes on the subject, and should be bonded. Any MB who refused to pay for an appraisal, should have the money deducted from his bond and his license suspended until the bond is replenished.

Further, MB's and LO's should have to submit any property where the loan amount exceeds 80% of the value to a rotation and not have any input as to which appraiser did the report. Lender select has been badly abused and will continue to be so as long as MB's are unregulated for all practical purposes.

If you adopt an "opinion of value" concept then we will cease being appraisers as we understand the term. No one wants to pay for an "appraisal" and you have to compete with those wino's and teenagers for work. $50 a pop.

 

[Lost Cause]

New York is not a mandatory state.

 

[Blue1]

It should be illegal to use an opinion of value for loan purposes if it is not done by a licensed/certified appraiser and, at the same time, it should be illegal to provide any direction of value to the appraiser for any particular assignment. That way our profession could stand a chance of doing what the Feds demand of us.

 

[Maverick]

"Mandatory States"

Forum Friends,

Below is the link specifically categorizing the various states and there
"Law Type".
There is a category I was unaware of "M/FRT", in short it applies to
appraisals of any Real Estate for any loan purposes. But excludes divorces
etc.

Otherwise it is faster to identify the "Voluntary States": Alaska, Iowa,
Kentucky, Massachusetts, North Dakota, Oklahoma and Wyoming.

> http://www.ASC.gov/Content/category3/licensing/StateOprReq.aspx?id=41

BTW in many instances (it is my understanding) a Mandatory State means BPO's are to be performed by appraisers!?

Respectfully,

Maverick

 

[Vernon Martin]

Evaluations

Thanks, Maverick. That was quite helpful.

I have a client, an unregulated national direct lender, who uses an unlicensed real estate advisor for commercial "evaluations" in multiple states. This lender is exempt from FIRREA. I was wondering if the advisor's evaluations violate any state laws, as they are asking me if I want to do the same thing for them.

I remember the federal agencies defining "evaluations" as anything less than an appraisal, including AVMs, BPOs, realtor CMAs, and assessor's valuations.
Would the performance of "evaluations" in states where one is not licensed violate any state laws?