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09.19.02 - Board for Real Estate Appraisers, Appraisal Management Companies, and Home Inspectors - Pending Regulations

 

PROPOSED ACTION ON REGULATIONS
MARYLAND REGISTER, VOLUME 41, ISSUE 14,
FRIDAY, JULY 11, 2014

Title 09 DEPARTMENT OF LABOR, LICENSING, AND REGULATION

Subtitle 19 COMMISSION OF REAL ESTATE APPRAISERS, APPRAISAL MANAGEMENT COMPANIES, AND HOME INSPECTORS - REAL ESTATE APPRAISERS

09.19.02 Educational Requirements

Authority: Business Occupations and Professions Article, §§16-216, 16-220, 16-302(g), 16-308, 16-309 and 16-5A-01, Annotated Code of Maryland

Notice of Proposed Action
[14-203-P]

The Commission of Real Estate Appraisers, Appraisal Management Companies, and Home Inspectors proposes to amend Regulation .01, .03, and .04 under COMAR 09.19.02 Educational Requirements. This action was considered at a public meeting of the Commission held on April 8, 2014, notice of which was given in 41:6 Md. R 407 (March 21, 2014) pursuant to State Government Article, §10-506(c) Annotated Code of Maryland.

Statement of Purpose

The purpose of this action is to amend educational requirements for real estate appraisers, as enacted and mandated by the federal Appraiser Qualifications Board (“AQB”) of The Appraisal Foundation, to become effective no later than January 1, 2015. Under the provisions of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“Title XI”), the AQB establishes the minimum education, experience and examination requirements for real property appraisers. Under Title XI and the enactment of Dodd-Frank Wall Street Reform and Consumer Protection Act, States are required to implement appraiser certification requirements that are no less stringent than those issued by the AQB in the Real Property Appraiser Qualifications Criteria.

The proposed action to amend Regulation .01 Eligibility to Take Examination or Obtain Original Trainee License proposed under COMAR 09.19.02 is to require an individual seeking an original real estate appraiser trainee license to complete a Commission-approved course oriented toward trainee appraiser expectations and responsibilities. This action also proposes to establish that an individual seeking an original trainee license must complete the prescribed qualifying education required for a trainee license within the five year period prior to the date of submission of an application for a trainee license.

This action proposes to require an individual seeking an original licensed real estate license to hold an associate’s degree or higher; or in lieu of an associate’s degree complete 30 semester credit hours of college-level education. This action proposes to require an individual seeking an original certified residential and certified general real estate appraiser license to hold a bachelor’s degree or higher. The proposed action eliminates an existing provision that allows an individual seeking an original certified residential license to hold an associate’s degree or in lieu of an associate’s degree complete 21 semester credit hours of college-level education; and eliminates an existing provision that allows an individual seeking an original certified general license to complete 30 semester credit hours of college-level education in lieu of holding a bachelor’s degree or higher.

The proposed action to amend Regulation .02 Required Courses is to require real estate appraiser trainees to complete a Commission-approved course oriented toward trainee appraiser expectations and responsibilities. It also proposes to add three subtopics of continuing education courses that will be accepted by the Commission.

The proposed action to amend Regulation .04 Continuing Education is to modify the existing list of subtopics of continuing education courses that will be accepted by the Commission. It proposes to establish a requirement that prohibits an appraiser from completing the same continuing education course offering within the appraiser’s continuing education cycle.

Comparison to Federal Standards

There is a corresponding federal standard to this proposed action, but the proposed action is not more restrictive or stringent.

Estimate of Economic Impact

I. Summary of Economic Impact. The proposed action is sought in order to comply with a federal mandate increasing education requirements for prospective real estate appraiser license and certificate candidates effective January 1, 2015. The proposed action has no independent economic impact.

 
Revenue (R+/R-)
 
II. Types of Economic
Impact.
Expenditure
(E+/E-)
Magnitude

A. On issuing agency: NONE
 
B. On other State agencies: NONE
 
C. On local governments: NONE
Benefit (+)
Cost (-)
Magnitude

D. On regulated industries or trade groups:
  (1) Trainees and Supervising Appraisers
(2) Appraisers


(-)

(-)


Unknown

Unknown
E. On other industries or trade groups: NONE
 
F. Direct and indirect effects on public: NONE  
 

III. Assumptions. (Identified by Impact Letter and Number from Section II.)

D(1). As a result of the federal mandate increasing education requirements, trainees and supervising appraisers may incur a nominal expense to complete the required pre-license requirements.
D(2). A prospective license or certificate candidate who has not earned a college degree, nor completed at least 30 semester credit hours of college level education, may incur an expense to comply with pre-license or certificate requirements mandated by federal oversight authorities.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Patricia Schott, Executive Director, Commission of Real Estate Appraisers, Appraisal Management Companies and Home Inspectors, 500 N. Calvert Street #302, Baltimore, MD 21202, or call 410-230-6165, or email to patricia.schott@maryland.gov, or fax to 410-333-6314. Comments will be accepted through August 11, 2014. A public hearing has not been scheduled.

Open Meeting

Final action on the proposal will be considered by Commission of Real Estate Appraiser, Appraisal Management Companies and Home Inspectors during a public meeting to be held on August 12, 2014, at 500 N. Calvert Street, Baltimore, MD 21202.

.01 Eligibility to Take Examination or Obtain Original Trainee License.
  A. Licensed Real Estate Appraisers. Except as provided in COMAR 09.19.04, on or after January 1, 2015, to be eligible to sit for the licensed real estate appraisers examination, an applicant shall have successfully completed [90 classroom hours of study which comply with this regulation. On and after January 1, 2008, an applicant shall have successfully completed 150 classroom hours of study.] :
    (1) 150 classroom hours of study; and
    (2) One of the following:
      (a) An associate’s degree, or higher, from an accredited college, junior college, or community college; or
      (b) 30 semester credit hours of college-level education from an accredited college, junior college, community college or university.

  B. Residential Real Estate Appraisers.
    [(1) To] On and after January 1, 2015, to be eligible to sit for the certified residential real estate appraisers examination, an applicant shall have successfully completed [120 classroom hours of study which comply with this regulation.]:
    (1) 200 classroom hours of study; and
    (2) [On and after January 1, 2008, an applicant shall have successfully completed:
      (a) 200 classroom hours of study; and
      (b) One of the following:
        (i) An associate’s degree, or higher, from an accredited college, junior college, community college, or university; or
        (ii) In lieu of an associate’s degree, 21 semester credit hours or their equivalent, including having passed collegiate-level subject matter courses at an accredited college, junior college, community college, or university, in the following: English composition; principles of microeconomics or macroeconomics; finance; algebra, geometry, or higher mathematics; statistics; introduction to computers—word processing/spreadsheets; and business or real estate law.] A bachelor’s degree or higher from an accredited college or university.
  C. General Real Estate Appraisers.
    [(1) To] On and after January 1, 2015, to be eligible to sit for the certified general real estate appraisers examination, an applicant shall have completed [180 classroom hours of study which comply with this regulation.
    (2) On and after January 1, 2008, an applicant shall have successfully completed]:
    [(a)] (1) (text unchanged)
       [(b) One of the following:
        (i)] (2) [Bachelor’s] A bachelor’s degree or higher from an accredited college or university[; or
        [(ii) In lieu of a bachelor’s degree, 30 semester credit hours or their equivalent, including having passed the following collegiate-level subject matter courses from an accredited college, junior college, community college, or university, in the following: English composition; microeconomics; macroeconomics; finance; algebra, geometry, or higher mathematics; statistics; introduction to computers—word processing/spreadsheets; business or real estate law; and two elective courses in accounting, geography, ag-economics, business management, or real estate].
  D. [To] On and after January 1, 2015, to be eligible for a real estate appraiser trainee license, an applicant, within the 5 year period prior to the date of submission of an application for a real estate appraiser trainee license, shall have completed:
    (1) 75 hours of classroom study which comply with this regulation; and
    (2) A Commission-approved course oriented toward trainee appraiser expectations and responsibilities.

.03 Required Courses.
  A.—C. (text unchanged)
  D. Effective January 1, [2008] 2015, in order to meet the 75-hour requirement and the Trainee Appraiser Expectation and Responsibilities Course set forth in Regulation [.01] .01D of this chapter, an applicant shall, at a minimum, have completed the required Appraiser Qualifications Board core curriculum for the trainee education requirements, as follows:
    (1) (text unchanged)
    (2) Basic appraisal procedures—30 hours; [and]
    (3) The 15-hour national Uniform Standards of Professional Appraisal Practice course or its equivalent—15 hours[.] ; and
    (4) Trainee appraiser and responsibilities course.
  E. Continuing education credit may be granted for educational offerings that:
     (1) (text unchanged)
     (2) Cover real property related appraisal topics, including, but not limited to:
      (a)—(e) (text unchanged)
      (f) Land use planning[,] and zoning [, and taxation];
      (g)—(k) (text unchanged)
      (l) Real estate appraisal related computer applications; [and]
      (m) Real estate securities and syndication[.];
      (n) Developing opinions of real property value in appraisal that also include personal property and/or business value;
      (o) Seller concessions and impact on value; and
      (p) Energy efficient items and “green building” appraisals.

  F. (text unchanged)

.04 Continuing Education.
  A.—C. (text unchanged)
  D. The Commission may not approve a continuing education course unless the course:
    (1)—(2) (text unchanged)
    (3) Covers real estate appraisal-related topics, including but not limited to:
      (a) (text unchanged)
      (b) [Arbitrations] Arbitration and dispute resolution;
      (c) [Business courses] Courses related to real estate appraisal or consulting;
      (d) [Construction estimating] Development cost estimating;
      (e) Ethics and standards of professional practice (USPAP);
      (f) Land use planning[,] and zoning [and taxation];
      (g) [Litigation] Management, leasing, and timesharing;
      (h) [Management, leasing, brokerage, time-sharing] Property development and partial interests;
      (i) [Property development] Real estate law, easements, and legal interests;
      (j) [Real estate appraisal, that is, valuations/evaluations] Real estate litigation, damages, and condemnation;
      (k) (text unchanged)
      (l) Real estate [law] appraisal related computer applications;
      (m) Real estate [litigation] securities and syndication;
      (n) [Real estate appraisal-related computer applications] Developing opinions of real property value in appraisals that also include personal property and/or business value;
      (o) [Real estate securities and syndication] Seller concessions and impact on value; and
      (p) [Real property exchange] Energy efficient items and “green building” appraisals.
  E. The Commission may approve up to one half of an individual’s continuing education credit for participation, other than as a student, in appraisal educational processes and programs. Examples of activities for which credit may be granted are teaching, program development, authorship of textbooks, or similar activities which are determined to be equivalent to obtaining continuing education.
  F. (text unchanged)
  G. The Commission may not grant a licensee or certificate holder credit for completion of the same continuing education course offering within the appraiser’s continuing education cycle, with the exception of the 7-Hour National USPAP Update Course, or its AQB-approved equivalent.

GEORGE FAIR
Chairman
Commission of Real Estate Appraisers, Appraisal Management Companies and Home Inspectors