NC General Assembly Approves Changes to Appraisal Board Laws

 

On July 10, 2019, a North Carolina Bill that changes the NC Appraisal Board’s requirements for an appraisal trainee to upgrade to a licensed or certified appraiser and that addresses appraisal management companies has passed the NC House on a vote of 111-2. Senate Bill 462 passed the NC Senate 42-0 last week and now heads to the Governor for consideration.

 

Generally, the Bill stikes North Carolina’s descriptions of the qualifications for each licensing level and incorporates the qualifications as determined by The Appraisal Foundation’s Appraiser Qualifications Board (“AQB.”)  Also, there is a little sentence in there that requires an application to “satisfy any additional education or experience requirements that the Board may impose by rule.”

 

The appraisal sections of this act “become effective October 1, 2019, and apply to registrations, licensures, and certifications issued after that date.”

 

With the Bill passing the House just a few minutes ago, clarification is still needed from the Appraisal Board on when the administrative rules will be amended and how current trainees can take advantage of the lower experience requirements and college degree options.  We will, of course, provide that clarification when it is available.

 

Much has been written in our previous blogs about the content of this Bill.  Here is a quick summary:

 

College degrees for licensed and certified appraisers:

The strict college degree would be replaced with various options to include college level education as well as skipping the college degree requirement if a person has been a Licensed Residential Appraisal for 5 years and meets certain conditions.  The college degree requirement will remain for the Certified General level.

 

Experience changes:

North Carolina’s new experience requirements would match the AQB changes from last year, see chart below for details.

Appraisal Management Companies:

The Bill provides that

  • the Board shall collect fees from AMCs and shall remit those fees to the Appraisal Management Company National Registry (“AMC National Registry”) of the Appraisal Subcommittee of the Federal Financial Institutions Examination Council.
  • an AMC shall not require or attempt to require an appraiser to prepare an appraisal if the appraiser may have a direct or indirect interest, financial or otherwise, in the property or transaction involving the appraisal.
  • no AMC procuring or facilitating an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a consumer may have a direct or indirect interest, financial or otherwise, in the property or transaction involving the appraisal.
  • an AMC that is a subsidiary owned and controlled by a financial institution regulated by a federal financial institution regulatory agency, pursuant to 12 U.S.C. § 3353 is exempt from registering with the NC Appraisal Board.

 

15 Comments
  1. Steve

    It is a little disappointing to see the standards lower, but then again one must ask who this benefits and how does it impact fees?

    Reply
    • Mike

      I agree why would the appraisal board vote for this, it has to certainly water down the infustry which no doubt means lower appraisal fees. Supply and Demand

      Reply
    • james brinkley

      I agree that standards should not be lowered. Very unfair to those who went back to school to meet the higher requirement. And takes the profession down a notch.

      Reply
  2. Dena

    Respectfully gentlemen, I disagree. I am a trainee that left my corporate job after 20 years in the healthcare industry to pursue my dream of owning my own business. This Bill did not change the educational requirements we all had to take in order to become appraisers, it only lowered the experience hours required and changed the license and certification requirements based upon your educational degree. I have a Bachelor of Science degree from a 4 year University. With my education and experience in corporate America, I don’t think I will be “watering down” the industry , but rather helping to enhance it. Let’s face facts here. This is not an industry someone just “decides” to go into because it’s easy. It’s not. You better have some serious income set aside or you will starve. You also basically have to know someone in the industry that is willing to help you as a supervising appraiser or you can forget it! I took my classes back in January of 2018. I still have classmates that are stuck because they can’t find a supervisor. For some reason, some, not all, appraisers think this is going to cut into their business or lower their fees. I’m sorry, but there is plenty of business to go around and if you’re not that busy, maybe you should ask yourself why? Our office turns down almost as much work as we accept. Simply stated, there are not enough of us or hours in the day to meet the demand. Can and will that change? I’m sure it will, but I also know that my work and reputation speaks for itself and I already have my own clients. I would encourage you guys to consider becoming a supervisor. What better way to ensure the industry doesn’t get “watered down” than to pass on your knowledge.

    Reply
    • Alice Kovach

      Very well stated! Thank you for your thoughts.

      Reply
      • Dena

        Thanks Alice.

        Reply
  3. T Taylor

    Dena, well said! And well written too. Part of being a good appraiser is being able to put your thoughts into words and you’ve done that well.

    Reply
    • Dena

      Thank you Taylor.

      Reply
  4. Randolph York

    I have been a licensed appraiser for the past 28 years. Do to government intervention I have lost thousands of dollars in fees I was not able to earn. Now I have to chance to get certified and earn my just dues. Negative comments are not needed or appreciated by this person. Let us all go forward and be the best appraiser’s in this wonderful state of ours.

    Reply
    • Dena

      Agreed.

      Reply
  5. Brian

    I was a supervisor to a trainee. My trainee had a real estate broker license and a 4 year degree in construction engineering. The time that it took me away from my production to instruct the trainee in commercial appraisal cost me money and time I couldn’t recover. Our relationship didn’t last and that trainee moved on.

    I wouldn’t do it again but my recommendation to any commercial appraiser taking on a trainee is have them sign a 3-year non compete contract. That way, if you take the time to train them, expose them to your clients, they learn the ways and means of how your business works, and they stay on hoping to get a coveted position as a staff appraiser in your firm, the non compete will never come into affect because they will be a trusted member of your team. If they leave or are dismissed for cause, only then will the non compete come into play.

    Reply
  6. Bruce

    Let me start by saying that I agree with everything Dena had to say. She is on point with the struggles a trainee has to go through to break into the industry and survive financially. Based on my own experiences, it wouldn’t matter if they removed the educational requirments all together. Why you may ask? Well here is the #1 reason why. While in class and before graduating from BrightPath, I attempted to contact via phone or email 37 appraisers or appraisal firms within a 100 miles radius of my home. NONE of you that took the time to respond to my emails, return my call or even pick up the phone, wanted to take on a Trainee. The number one response from those who did offer me the courtersy of their time was “why would I want to do that?”. Why would I want to give up 20%, 25% or 40% of the fee I would earn, to train someone who in 24 months is going to leave me and go out on their own? Until this mentality changes among the current Community of Certified Appraisers, the market can’t become “watered down” or “fees diluted” based on an increased amount of newly Certified Appraisers. Until they are willing to give a “ticket” to a trainee to get on the “bus” to certification, they can’t have any real or legitimate concerns about the affects of the passing of Senate Bill 462. The “competition” can’t increase!! Control over the numbers, ultimately and unfortunately, is still in the hands of the current field of Certified Appraisers and the mentality towards taking on a trainee that they choose to possess. I was extremely fortunate to have been referred to a Certified Appraiser who wanted to grow his business and give back to the Appraisal Community. I was one of the lucky ones, and truly thank all those who were involved in making this happen for me.

    Reply
    • Dena

      Well said Bruce!

      Reply
  7. Judy Barbour

    Thanks for the information, I am a teacher who is resigning after fifteen years. I would hate to think I am going into a profession were other professionals are not supportive and would not give me the training necessary after spending the time and money. I will reconsider this profession.

    Reply
  8. Sovan Nyll

    Dena and Bruce are very correct in their statements. I recently obtained my Trainee License summer 2019. I also do not know anyone in the field and I have gotten the same response as Bruce stated above. My thought is a person who can grow their business has a good character and can increase income because they understand giving back. I am hoping there is one Appraiser of good character that will take the chance to grow with me!

    Reply

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