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.
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.