Arizona Supervisory Appraiser - Trainee Appraiser Seminar

ArizonaArizonaSupervisory Appraiser - Supervisory Appraiser -

Trainee AppraiserTrainee AppraiserSeminarSeminar

4 Hours CE4 Hours CE

September 6, 2013Phoenix, AZ

Before We Begin… Thank-you!

2

Arizona Board of Appraisal – Board Members

• Kevin R. Yeanoplos, Chairperson• B. Michael Petrus II, Vice Chairperson• Erik Clinite • James B. Heaslet.• Mark Keller• Joe T. Stroud• Frank Ugenti• Jeff Nolan

AZ Supervisory Appraiser / Trainee Appraiser Course

Before We Begin… Thank-you!

3

Arizona Board of Appraisal• Debra Rudd, Executive Director• and staff

AZ Supervisory Appraiser / Trainee Appraiser Course

Why Are You Here Today?

AZ Supervisory Appraiser / Trainee Appraiser Course 4

a) To satisfy my continuing education requirements

b) Because I want to be here

c) To hopefully learn something to improve my appraisal practice

d) I have no idea why I’m really here


Why Are You Here Today?

Question:

Q: How long have you been active in appraisal practice?

a) Less than 5 years

b) 5 to 10 years

c) 11 to 15 years

d) 16 to 20 years

e) Greater than 20 yearsAZ Supervisory Appraiser / Trainee Appraiser Course 6

AnnouncementsAnnouncements

Break times and lunch Restroom locations Smoking areas Telephones Be considerate of those near you Please silence your cell phone Attendance sheet Certificate and evaluation forms

7AZ Supervisory Appraiser / Trainee Appraiser Course


Supervisory Appraiser Objectives

Specifically, that the student understands:– AQB minimum qualifications for becoming and

remaining a Supervisory Appraiser– Jurisdictional requirements for both the

Supervisor and the Trainee Appraisers– Expectations and Responsibilities of being a

Supervisory Appraiser


Supervisory Appraiser Objectives

Specifically, that the student understands:(continued)

– Responsibilities and requirements of a Supervisory Appraiser in maintaining and signing all appropriate Trainee Appraiser experience logs

– Expectations and responsibilities of the Trainee Appraiser


Trainee Appraiser Objectives

Specifically, that the student understands:– AQB minimum qualifications for becoming a

Trainee Appraiser– Jurisdictional requirements for the Trainee

Appraiser that may exceed those of the Criteria

– AQB minimum qualifications for becoming and remaining a Supervisory Appraiser




– Processes and roles of the entities involve in establishing qualifications for credentialed appraisers

– Expectations and responsibilities of the Trainee Appraiser




– Qualifications to become a credentialed appraiser

– Basics of USPAP– Responsibilities and requirements of a

Trainee Appraiser’s role in maintaining and signing all appropriate Trainee Appraiser experience logs


Qualification and Qualification and Credentialing Credentialing

EntitiesEntities


History– Direct result of the financial institution crisis of

the 1980s– Individuals forming value opinions for loans

were not regulated by the states or the federal government

Qualification and Credentialing Entities


History (cont’d)– Congress passed legislation in 1989

(FIRREA); mandated the regulation of real estate appraisers by the states for federally-related transactions

– Only real property appraisers are regulated



The Key Players– Federal Government: The Appraisal Sub-

Committee (ASC) oversees the program to ensure it remains consistent with the original intent of Congress.

– State Governments: Established regulatory agencies to issue credentials and perform disciplinary actions.



The Key Players– Private Sector: The Appraisal Foundation

(TAF) provides Standards of Professional Appraisal Practice (ASB) and Appraiser Qualification Requirements (AQB).

– Private Sector: Professional Appraisal Organizations (National, State, Local)



The Appraisal Subcommittee (ASC) has a supervisory role over state boards and appraisers, to ensure that the government has sufficient controls in place over all real estate appraisal activity for federally-regulated banks to protect them from loss– FIRREA established the ASC within the

Federal Financial Institutions Examination Council (FFIEC)

The Appraisal Subcommittee

The ASC has six members:• Board of Governors of the Federal Reserve

System (FRB)• Office of the Comptroller of the Currency (OCC)• Federal Housing Finance Agency (FHFA)• Federal Deposit Insurance Corporation (FDIC)• National Credit Union Administration (NCUA)• Consumer Financial Protection Bureau (CFPB)



The ASC has authority from Title XI of FIRREA to monitor TAF actions, including AQB and ASB

Title XI authorizes the ASC to oversee the activities of state appraisal licensure and certification agencies



ASC operations are funded by state-certified or licensed appraisers through their license renewal payment in the form of a National Registry fee.

The ASC manages grants to The Appraisal Foundation that support real-property-related work of the AQB and the ASB.



The AQB and ASB are responsible for establishing minimum criteria and standards for practice for real property appraisers

The state appraiser regulatory agencies have complete authority for enforcement

State Appraisal Licensure & Certification Agencies


States are independent of each other; therefore, it is important that an appraiser understand the specific states’ licensure and certification laws and regulations



State Appraiser Regulatory Agencies– Typically governed by a board of 5-9

individuals– Generally appointed by the governor of the

state– Public members (non-appraisers) are often

also appointed



State Appraiser Regulatory Agency Responsibilities– Validate qualifications – Issue credentials– Investigate complaints– Perform disciplinary actions



The Structure of The Appraisal Foundation (TAF)– Not a government agency (private non-profit)– Not an appraisal organization– No members– Given specific authority by Congress

regarding appraisal qualifications and appraisal standards

The Appraisal Foundation


The Appraiser Qualifications Board– Establishes minimum criteria for licensing and

certification of qualified appraisers– Defines, issues and promotes criteria– Disseminates Criteria– Creates and maintains the National Appraisal

Examination



The Appraisal Standards Board– Performs all functions of TAF with respect to

USPAP– Exercises all authority and power over USPAP

and other communications related to Standards

• USPAP establishes standards of professional appraisal practice for the guidance and education of appraisers and users of appraisals



Qualifications for Qualifications for Appraiser CredentialsAppraiser Credentials

Qualifications for Appraiser Credentials


http://appraisalfoundation.org

The RPAQC can be downloaded at:AppraisalFoundation.org

On December 9, 2011, the AQB adopted changes to the Real Property Appraiser Qualification Criteria that will become effective January 1, 2015. These changes represent minimum national requirements that each state must implement no later than January 1, 2015.



National Uniform Licensing and Certification Examinations– Education and experience must be completed

prior to taking the AQB-approved National Uniform Licensing and Certification Examination.

Qualifications for CredentialsOverview of 2015 Changes


Background Checks– All candidates for a real property appraiser

credential must undergo background screening.

– State appraiser regulatory agencies are strongly encouraged to perform background checks on existing credential holders as well.



College Degree Acceptance and Core Curriculum Requirements– Credit towards qualifying education

requirements may be obtained via the completion of a degree program in Real Estate from an accredited degree-granting college or university provided the college or university has had its curriculum reviewed and approved by the AQB.



Restriction on Continuing Education Course Offerings– Aside from complying with the requirements to

complete the 7-Hour National USPAP Update Course (or its AQB approved equivalent), appraisers may not receive credit for completion of the same continuing education course offering within an appraiser’s continuing education cycle.



Distance Education Requirements– A written, proctored examination is required

for all qualifying education distance course offerings. The term written refers to an examination that might be written on paper or administered electronically on a computer workstation or other device.





– State-certified Supervisory Appraiser shall be in good standing with the training jurisdiction and not subject to any disciplinary action within the last three (3) years that affects the Supervisory Appraiser’s legal ability to engage in appraisal practice. Shall have been state certified for a minimum of three (3) years prior to being eligible to become a Supervisory Appraiser.



A Supervisory Appraiser may not supervise more than three Trainee Appraisers at one time, unless a state program in the licensing jurisdiction provides to progress monitoring, supervising certified appraiser qualifications, and supervision oversight requirements for Supervisory Appraisers.



All qualifying education must be completed within the five (5) year period prior to the date of submission of an application for a Trainee Appraiser credential.

A Trainee Appraiser is permitted to have more than one Supervisory Appraiser.



Both the Trainee Appraiser and Supervisory Appraiser shall be required to complete a Supervisor/Trainee course that, at a minimum, complies with the specifications for course content established by the AQB.



The Supervisor/Trainee course must be completed by the Trainee Appraiser prior to obtaining a Trainee Appraiser credential, and completed by the Supervisory Appraiser prior to supervising a Trainee Appraiser.



Appraisers in all classifications shall perform and practice in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).

All credential holders must comply with ongoing requirements for continuing education, and state renewal procedures.

Qualifications for Credentials2015 Criteria for ALL Classifications


For Qualifying Education (QE)– Class hours may be obtained only where:

a) the minimum length of the educational offering is at least 15 hours; and

b) the individual successfully completes a proctored, closed-book final examination pertinent to that educational offering.



For Continuing Education (CE)– Appraisers must successfully complete the 7-

Hour National USPAP Update Course, or its AQB-approved equivalent, every two calendar years.



For Continuing Education (CE)– Aside from complying with the requirements to

complete the 7-Hour National USPAP Update Course, or its equivalent, appraisers may not receive credit for completion of the same continuing education course offering within an appraiser’s continuing education cycle.



For Continuing Education (CE)– Credit towards the continuing education hour

requirements for each appraiser classification may be granted only where the length of the educational offering is at least two (2) hours.



For Continuing Education (CE)– The equivalent of fourteen class hours of

instruction in courses or seminars for each year during the period preceding the renewal is required (e.g., a two-year continuing education cycle would require twenty-eight hours). The class hour requirement can be fulfilled at any time during the cycle.



A new applicant not currently licensed or certified and in good standing in another jurisdiction, shall have up to 24 months, after approval by the state, to take and pass an AQB-approved qualifying examination for the credential. Successful completion of the examination is valid for a period of 24 months.



The verification for experience credit shall include: 1. Type of property

2. Date of report

3. Address of appraised property

4. Description of work performed by the trainee/applicant and scope of the review and supervision of the supervising appraiser



The verification for experience credit shall include (cont’d): 5. Number of actual work hours by the

trainee/applicant on the assignment; and

6. The signature and state certification number of the supervising appraiser if applicable.

Note: Separate appraisal logs shall be maintained for each supervising appraiser if applicable.



All candidates for a real property appraiser credential must undergo background screening.

In addition to all applicants for new credentials, state appraiser regulatory agencies are strongly encouraged to perform background checks on existing credential holders as well.



State appraiser regulatory agencies shall not issue a real property appraiser credential if:– The applicant has had an appraiser license or

certification revoked in any governmental jurisdiction within the five (5) year period immediately preceding the date of application.



shall not issue a credential if: (cont’d)– The applicant has been convicted of, or pled

guilty or nolo contendere to, a felony in a domestic, or foreign court:a) during the five (5) year period immediately

preceding the date of the application for licensing or certification; or

b) at any time preceding the date of application, if such felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering.



The Trainee Appraiser classification is intended to incorporate any documented non-certified/non-licensed real property appraisers who are subject to the Real Property Appraiser Qualification Criteria.

Qualifications for Credentials2015 - Trainee Appraiser


The scope of practice for the Trainee Appraiser classification is the appraisal of those properties which the state-certified Supervisory Appraiser is permitted by his/her current credential and that the Supervisory Appraiser is competent to appraise.



All Trainee Appraisers must comply with the COMPETENCY RULE of USPAP for all assignments.



There is no examination requirement for the Trainee Appraiser classification, but the Trainee Appraiser shall pass the appropriate end-of-course examinations in all of the prerequisite courses in order to earn credit for those courses.



As the prerequisite for application, an applicant must have completed 75 creditable hours of qualifying education as specified in the Required Core Curriculum.

All qualifying education must be completed within the five (5) year period prior to the date of submission of a Trainee Appraiser application.



No experience is required as a prerequisite for the Trainee Appraiser classification.



The Trainee Appraiser shall be subject to direct control and supervision by a Supervisory Appraiser in good standing, who shall be state-certified.

A Trainee Appraiser is permitted to have more than one Supervisory Appraiser.



The Supervisory Appraiser shall be responsible for the training, guidance, and direct control and supervision of the Trainee Appraiser by: 1) Accepting responsibility for the appraisal by

signing and certifying the appraisal complies with USPAP;

2) Reviewing and signing the Trainee Appraiser appraisal report(s); and



The Supervisory Appraiser shall be responsible by: (cont’d)3) Personally inspecting each appraised

property with the Trainee Appraiser until the Supervisory Appraiser determines the Trainee Appraiser is competent to inspect the property, in accordance with the COMPETENCY RULE of USPAP for the property type.



The Trainee Appraiser is permitted to have more than one Supervisory Appraiser, but a Supervisory Appraiser may not supervise more than three (3) Trainee Appraisers, at one time…



An appraisal experience log shall be maintained jointly by the Supervisory Appraiser and the Trainee Appraiser. It is the responsibility of both the Supervisory Appraiser and the Trainee Appraiser to ensure the appraisal experience log is accurate, current and complies with the requirements of the Trainee Appraiser’s credentialing jurisdiction.



The state-certified Supervisory Appraiser shall be in good standing in the training jurisdiction and not subject to any disciplinary action within the last three (3) years that affects the Supervisory Appraiser’s legal eligibility to engage in appraisal practice.





The Licensed Residential Real Property Appraiser classification applies to the appraisal of non-complex one-to-four residential units having a transaction value less than $1,000,000, and complex one-to-four residential units having a transaction value less than $250,000.

Qualifications for Credentials2015 - LR Appraiser


Complex one-to-four unit residential property appraisal means one in which the property to be appraised, the form of ownership, or the market conditions are atypical.1

1 Bank Holding Company Supervision Manual, 12 C.F.R. 225.63(d)



The AQB-approved Licensed Residential Real Property Appraiser examination must be successfully completed.



The prerequisites for taking the AQB-approved examination are completion of:

1) One hundred fifty (150) creditable class hours as specified in the Required Core Curriculum; and

2) Completion of 30 semester hours of college level education; and

3) Two thousand (2,000) hours of qualifying experience in no fewer than twelve (12) months.





The Certified Residential Real Property Appraiser classification qualifies the appraiser to appraise one-to-four residential units without regard to value or complexity.

Qualifications for Credentials2015 - CR Appraiser


The AQB-approved Certified Residential Real Property Appraiser examination must be successfully completed.



The prerequisites for taking the AQB-approved examination are completion of:1) Two hundred (200) creditable class hours as

specified in the Required Core Curriculum;

2) Completion of a Bachelor’s degree, or higher, from an accredited college or university.; and

3) Two thousand five hundred (2,500) hours of qualifying experience obtained in no fewer than twenty-four (24) months.





The Certified General Real Property Appraiser classification qualifies the appraiser to appraise all types of real property.

Qualifications for Credentials2015 - CG Appraiser


The AQB-approved Certified General Real Property Appraiser examination must be successfully completed.



The prerequisites for taking the AQB-approved examination are completion of:1) Three hundred (300) creditable class hours as

specified in the Required Core Curriculum; and

2) Completion of a Bachelor’s degree or higher from an accredited college or university and

3) Three thousand (3,000) hours of qualifying experience obtained in no fewer than thirty (30) months, where a minimum of one thousand five hundred (1,500) hours must be obtained in non-residential appraisal work.





Overview of Overview of USPAPUSPAP

Purpose of USPAP– Promote and maintain a high level of public

trust in professional appraisal practices– Establish minimum requirements for

professional appraisal practice

Overview of USPAP


What services are covered by USPAP– Appraisals– Appraisal reviews– Real property appraisal consulting– Other services when choosing to represent

oneself as an appraiser

Overview of USPAP


Std

s. 1

-10

USPAP addresses ethical and performance obligations of appraisers through:– Definitions– Rules– Standards (1-10)– Standards Rules– Statements

Overview of USPAP


Five Primary Rules– ETHICS RULE– RECORD KEEPING RULE– COMPETENCY RULE– SCOPE OF WORK RULE– JURISDICTIONAL EXCEPTION RULE

Overview of USPAP


ETHICS RULE– Sections of the Rule

• Conduct• Management• Confidentiality

Overview of USPAP


Conduct Section– In general conduct you must

• Perform ethically and competently• In accordance to USPAP • Not engage in criminal conduct• Not willfully or knowingly violate RECORD

KEEPING RULE

Overview of USPAP


Conduct Section you must:

– perform with impartiality…– not perform assignments with bias– not advocate the cause or interest of any party

or issue– not accept assignments that include the

reporting of predetermined opinions and conclusions

Overview of USPAP


Conduct Section (cont’d) you must not:

– misrepresent his or her role when providing valuation services that are outside of appraisal practice

– use or rely on unsupported conclusions– perform an assignment in a grossly negligent

manner

Overview of USPAP


you must not:– communicate assignment results with the

intent to mislead or defraud– use or communicate a report that is known by

the appraiser to be misleading or fraudulent– knowingly permit an employee or other

person to communicate a misleading or fraudulent report

Overview of USPAPETHICS RULE – Conduct Section


Disclosure obligations - If known prior to accepting an assignment, and/or if discovered at any time during the assignment, an appraiser must disclose to the client, and in the subsequent report certification…

Overview of USPAPETHICS RULE – Conduct Section


you must not accept an assignment or compensation contingent on:– Predetermined result– Direction that favors the client– Amount of a value opinion– Attainment of a stipulated result– Occurrence of a subsequent event directly

related to value

Overview of USPAP ETHICS RULE – Management Section


you must:– Not advertise for or solicit assignments in a

manner that is false, misleading, or exaggerated– affix, or authorize the use of, his or her signature

(on an assignment-by-assignment basis), to certify recognition of USPAP responsibilities

– Not affix the signature of another appraiser without his or her consent

Overview of USPAPETHICS RULE – Management Section


An appraiser must protect the confidential nature of the appraiser-client relationship

Appraiser must act in good faith Appraiser must be aware of, and comply

with laws and regulations

Overview of USPAPETHICS RULE - Confidentiality Section


Appraiser may disclose to:– Client– Persons specifically authorized y the client– State appraiser regulatory agencies– Third parties as may be authorized by due

process of law– A duly authorized professional peer review

committee

Overview of USPAPETHICS RULE - Confidentiality Section


An appraiser must:– Be competent to perform the assignment– Acquire the necessary competency to perform

the assignment– Decline or withdraw from the assignment

Overview of USPAPCOMPETENCY RULE


An appraiser must prepare a workfile for each appraisal, appraisal review, or appraisal consulting assignment

A workfile must be inexistence prior to the issuance of any report

An appraiser who willfully or knowingly fails to comply with the RKR is in violation of the ETHICS RULE

Overview of USPAPRECORD KEEPING RULE


An appraiser must retain the workfile for a period of at least five years after preparation or at least two years after final disposition of any judicial proceeding in which the appraiser provided testimony related to the assignment, whichever expires last.

Overview of USPAPRECORD KEEPING RULE


For each appraisal, appraisal review, or appraisal consulting assignment, an appraiser must:– Identify the problem to be solved;– Determine and perform the necessary SOW– Disclose the SOW in the report

Overview of USPAPSCOPE OF WORK RULE


In an appraisal assignment, identification of the following elements is required:– Client and any other intended users;– Intended use of the opinions and conclusions– Type and definition of value– Effective date– Subject of the assignment and its relevant

characteristics– Assignment conditions



Assignment conditions include:– Assumptions – Extraordinary assumptions– Hypothetical conditions– Laws and regulations– Jurisdictional exceptions– Other conditions that affect the scope of work



Requirements in STANDARD 1 (Real Property) follow appraisal process, beginning with the identification of the problem.

STANDARD 1 covers all the development activities that are distinctly different from the final step, reporting, which is covered in STANDARD 2.

Overview of USPAP


Appraisal Process

SR 1-3

SR 1-6

Std. 2

SR 1-2(h)

SR 1-2(a-g)

SR 1-5

SR 1-4

104AZ Supervisory Appraiser / Trainee Appraiser Course

Report: – any communication, written or oral, of an

appraisal, appraisal review or appraisal consulting service that is transmitted to the client upon completion of the assignment.

Overview of USPAP


STANDARD 2 covers final step in the real property appraisal process, reporting of the concluded value opinion. This Standard addresses both communication and reporting. Communication involves transmitting information from one source or person to another and is distinctly different from the development process.

Overview of USPAP


STANDARD 2 – Addresses the content and level of

information required in each reporting option that communicates results.

– Does not dictate the form, format, or style of real property appraisal reports. The substantive content determines if it complies with the reporting options identified in the Standard.

When USPAP Applies


Overview of Supervisory Overview of Supervisory Appraiser Expectations and Appraiser Expectations and

ResponsibilitiesResponsibilities

Supervisory Appraisers provide a critical role in the mentoring, training and development of future valuation professionals. It is inherently important to strike a proper balance between ensuring Supervisory Appraisers are competent and qualified without making the criteria too stringent and restrictive.

Supervisory Appraiser Requirements


What are important traits of a good Supervisory Appraiser?– Ethics and honesty (trustworthiness)– Competent with a desire to continue to learn– Patience– Attention to detail– Takes responsibility for own actions– Respectful– Communication skills

Supervisory AppraiserExpectations and Responsibilities


What are important traits of a good Supervisory Appraiser? (cont’d)– Accessible– Promotes a coaching culture– Goal oriented and able to express a mission

and/or vision– Etc.



Supervisory Appraisers shall be responsible for the training, guidance, and direct supervision of the Trainee Appraiser by:1) Accepting responsibility for the appraisal by

signing and certifying the appraisal complies with USPAP;

2) Reviewing and signing the Trainee Appraiser appraisal report(s); and



Supervisory Appraisers shall: (cont’d)3) Personally inspecting each appraised

property with the Trainee Appraiser until the Supervisory Appraiser determines the Trainee Appraiser is competent to inspect the property, in accordance with the COMPETENCY RULE of USPAP for the property type.



Supervisory Appraisers shall be state-certified and in “good standing” in the jurisdiction in which the Trainee Appraiser practices for a period of at least three (3) years.



Supervisory Appraisers shall not have been subject to any disciplinary action within any jurisdiction within the last three (3) years that affects the Supervisory Appraiser’s legal eligibility to engage in appraisal practice.



A Supervisory Appraiser subject to a disciplinary action would be considered to be in “good standing” three (3) years after the successful completion/ termination of the sanction imposed against the appraiser.



Supervisory Appraisers shall have been state-certified for a minimum of three (3) years prior to being eligible to become a Supervisory Appraiser.



Supervisory Appraisers must comply with the COMPETENCY RULE of USPAP for the property type and geographic location the Trainee Appraiser is being supervised.



Whereas a Trainee Appraiser is permitted to have more than one Supervisory Appraiser, Supervisory Appraisers may not supervise more than three (3) Trainee Appraisers at one time…



The Supervisory Appraiser must:– Provide the Trainee Appraiser with a basic

understanding of USPAP requirements

– Understand the AQB minimum requirements of both the Supervisory Appraiser and Trainee Appraiser, as well as the requirements of the credentialing jurisdiction that may exceed those of the Criteria



The Supervisory Appraiser must:– Provide proper guidance to the Trainee

Appraiser when he or she selects a specific credentialing path (i.e., Licensed Residential, Certified Residential or Certified General)



Monitor the Trainee Appraiser’s progress in satisfying both the education and experience requirements necessary to achieve his or her selected credentialing path



The Supervisory Appraiser must:– Monitor the Trainee Appraiser’s progress in

satisfying both the education and experience requirements necessary to achieve his or her selected credentialing path



The Supervisory Appraiser must:– Verify that the Supervisory Appraiser and

Trainee Appraiser are properly documenting all appropriate experience logs



The Supervisory Appraiser must:– accompany the Trainee Appraiser on all

inspections until the Trainee Appraiser is competent to conduct inspections independently, and has met all specific requirements pertaining to property inspection established by the credentialing jurisdiction



The Supervisory Appraiser must:– monitor and provide assignments and duties

that ensure the Trainee Appraiser is developing an understanding and progression of knowledge and experience of all applicable valuation methodologies and approaches to value



The Supervisory Appraiser must:– verify that the Trainee Appraiser is properly

identified and acknowledged in the appraisal report in compliance with USPAP requirements



The Supervisory Appraiser must:– immediately notify the Trainee Appraiser if the

Supervisory Appraiser is no longer qualified to supervise and/or sign the Trainee Appraiser’s experience log



Overview of Trainee Overview of Trainee Appraiser Expectations and Appraiser Expectations and

ResponsibilitiesResponsibilities

What are important traits of a good Trainee Appraiser?– Ethics and honesty (trustworthiness)– Desire to learn– Patience– Attention to detail– Takes responsibility for own actions– Respectful– Communication skills– Etc.

Trainee AppraiserExpectations and Responsibilities


The Trainee Appraiser must:– develop a basic understanding of the AQB

minimum requirements to become a Trainee Appraiser, as well as the requirements of the credentialing jurisdiction that may exceed those of the Criteria



The Trainee Appraiser must:– have an understanding about the importance

of selecting an appropriate Supervisory Appraiser. For example….



For example….– The Supervisory Appraiser-Trainee Appraiser

relationship is a long-term commitment by both parties

– The Trainee Appraiser is inherently connected to the “good standing” of the Supervisory Appraiser



For example….– The importance of selecting a Supervisory

Appraiser with the experience and competency that best matches the Trainee Appraiser’s selected credentialing path

– Options for the Trainee Appraiser if a Supervisory Appraiser is no longer qualified to serve as a Supervisory Appraiser



The Trainee Appraiser must:– have an understanding of how to determine if

an appraiser is qualified and in good standing to be a Supervisory Appraiser by searching the Appraisal Subcommittee (ASC) National Registry and/or jurisdictional websites



The Trainee Appraiser must:– understand the Supervisory Appraiser must

accompany the Trainee Appraiser on all inspections until he or she is competent to conduct inspections independently, and has met all requirements pertaining to property inspection established by the credentialing jurisdiction



Overview of Jurisdictional Overview of Jurisdictional Requirements Beyond Requirements Beyond

AQB CriteriaAQB Criteria

Minimum Continuing Education Course length

Inspection requirements for Supervisory Appraiser and Trainee Appraiser

Summary of Arizona Requirements


Questions?Questions?

2014-2015 USPAP Overview

Revisions to the DEFINITIONS of “Assignment Results” and “Scope of Work”

Revisions to the PREAMBLE – When do USPAP Rules and Standards Apply?



Revisions to the ETHICS RULE-Clarification about disclosure requirement for current or prospective interest and prior services when there is no appraisal or appraisal review

Revisions to the COMPETENCY RULE



Report Options in STANDARDS 2, 8, 10 – Appraisal Report and Restricted Appraisal Report

Revisions to Standards Rule 3-5 – Date of the report

Retirement of STANDARDS 4 and 5 Revisions to AO-11 and AO-13


Appraisal: – (noun) the act or process of developing an

opinion of value; an opinion of value.– (adjective) of, or pertaining to appraising and

related functions such as an appraisal practice or appraisal services.

– (cont. next slide)

Definitions


Appraisal: (cont.)– Comment: An appraisal must be numerically

expressed as a specific amount, as a range of numbers, or as a relationship (e.g. no more than, not less than) to a previous value opinion or numerical benchmark (e.g. assessed value, collateral value)

Definitions


Report: – any communication, written or oral, of an

appraisal, appraisal review or appraisal consulting service that is transmitted to the client upon completion of the assignment.

Definitions


Documents

Arizona Supervisory Appraiser - Trainee Appraiser Seminar