JUNE 29, 2020 – South Dakota has become the 11th state to allow licensed/certified appraisers to perform non-USPAP Evaluations. We have 39 more to go:) When we get back to in-person classes, if you are in a state that allows non-USPAP Evaluations, I have a 7-hour seminar on Evaluations and Validations that I will gladly come and teach. I don’t teach over the web. I can only share my 28 years of experience with Evaluations in person. The Appraisal institute’s news item on this follows:
South Dakota Passes Legislation Allowing Appraisers to Perform Evaluations
South Dakota Gov. Kristi Noem on March 4 signed HB 1127
, legislation that allows appraisers to provide real property evaluations to federally regulated financial institutions. When the law takes effect July 1, the state will join at least 10 others that allow appraisers to provide evaluation services. Several other states are considering similar laws.
Evaluations provided by appraisers must conform to Interagency Appraisal and Evaluation Guidelines. South Dakota’s secretary of the Department of Labor and Regulation will be authorized to promulgate rules relating to “exemptions and standards allowing appraisers to perform an evaluation for a federally insured depository institution.”
Everyone stay safe.
June 6, 2019 – Most importantly, my thanks to all past and present Veterans on this 75th Anniversary of D-Day. I visited Normandy and Omaha Beach last year. So serene. Humbling. One of my wife’s uncles was in the second wave that landed at Omaha Beach. He didn’t tell anyone that until a few months before he died in his 90’s. The Greatest Generation rarely talked about the War. But, they saved the World. Literally. We owe those young men everything. God Bless them all and our Country.
Per the Appraisal Institute’s Appraiser News Online, 2 more states will allow licensed/certified appraisers to perform non-USPAP Evaluations. As predicted, this is the year for this to finally take off across our country.
If you are an appraiser in adjacent states, you should start a campaign to get your state to pass a similar law. Else, you are missing out on a ton of business! I hope North and South Carolinas wake up and join the movement. Soon, the entire Southeastern USA will allow appraisers to perform non-USPAP Evaluations. Following is from the AI:
Alabama enacted legislation, effective May 29, allowing state-licensed appraisers to perform evaluations for federally regulated financial institutions.
states that appraisers “shall not be subject to any provision” of the state’s appraiser licensing law when performing an evaluation that includes a disclaimer stating it is not an appraisal, and the requirements for a licensed real estate appraiser to comply with the Uniform Standards of Professional Appraisal Practice do not apply.
Additionally, the law clarifies that evaluations are “governed by federal law and rules of the federal financial institution regulatory agencies, and not the board.”
Louisiana Gov. John Bel Edwards on May 30 signed HB 340
, legislation that allows appraisers in the state to provide evaluations for federally insured depository institutions. The law takes effect Aug. 1.
The legislation states that appraisers are not prohibited by the state’s appraiser licensing law from providing evaluations to federally regulated institutions in accordance with “federal law, regulation or the guidance for evaluations established by the federal financial institutions regulatory agency of the depository institution.”
May 19, 2017 – I was notified this week that Illinois has had a law on their books that allows licensed appraisers to perform non-USPAP Evaluations. I have no clue how long it has been there. Maybe someone from Illinois knows and can tell me. So, we are actually at 5 states now, albeit Virginia has a technical glitch that will delay the law for a year. Following is an excerpt from the law (I will add emphasis to the key words) and additional explanation I have received from my ‘sources.’ (oh geez I sound like the Fake News Media!)
225 ILCS 458/5-5a – “It is unlawful for a person to …. (ii) develop a
real estate appraisal, (iii) practice as a real estate appraiser… without a license issued under this Act.”
225 ILCS 458/5-5g – “This act does not apply to”….
 an employee, officer, director, or member of a credit or loan
committee of a financial institution or any other person engaged by a financial institution when performing an evaluation of real property for the sole use of the financial institution in a transaction for which the financial institution would not be required to use the services of a State licensed or State certified appraiser pursuant to federal regulations adopted under Title XI of the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989… (emphasis added)
The state board has confirmed to several people that state-certified appraisers are permitted to perform non-USPAP compliant evaluations when engaged by an institution. The only caveat is that the appraiser cannot sign as an appraiser, reference their state credential or any appraisal related designations.