NYS Department of State Volume 2, Number 1 — Fall 2005 Real Estate Appraisal Newsletter Update of Revisions to Appraiser Qualifications Criteria Effective January 1, 2008. In the Spring 2004 Edition of the Appraisal Newsletter, we first notified appraisers of significant revisions being made by the Appraiser Qualifications Board to appraiser qualifications criteria. Although the effective date of these revisions is still two years away, the Department wants to give sufficient lead time to the public, Appraiser Assistants and other appraisers who may be contemplating changes to their licensing/certification status. In accordance with AQB guidelines, New York will use a “segmented” approach to implement the new standards. Using this method, licensing/certification requirements are broken down into three components: education, experience and examination. An applicant would have to meet the criteria which is in effect at the time he or she completes a particular component, i.e. any component completed before January George E. Pataki 1, 2008 would satisfy the current criteria, while any component not completed by January 1, 2008 would have to Governor conform to the new criteria. Virtually all of the changes in 2008 are in qualifying education and college level course requirements. Category Current Qualifying 1/1/08 Qualifying 1/1/08 College Level Real Estate Appraisal Course Requirements Course Reruiements Course Requirements Licensed Residential 90 Hours 150 Hours None Board Members Certified Residential 120 Hours 200 Hours Associates degree or higher. In lieu D. Rex Bryce, Chair of associates degree 21 semester credit hours (see *1) Bryceappraisal@yahoo.com Certified General 180 Hours 300 Hours Bachelors degree or higher. In lieu Peter Goold, Vice-Chair of required degree 30 semester credit hours (see *2) email@example.com Appraiser Assistant 90 Hours 150 Hours None Wilson Kimball *1 Covering English Composition; Principles of Economics (Micro or Macro); Finance; Algebra, Geometry or higher mathematics; Statis- firstname.lastname@example.org tics; Introduction to Computers-Word Processing/Spreadsheets; and Business or Real Estate Law. *2 Covering English Composition; Micro Economics; Macro Economics; Finance; Algebra; Geometry or higher mathematics; Statistics; Dominick Pompeo, SRPA, SRA, CSA Introduction to Computers-Word Processing/Spreadsheets; Business or Real Estate Law; and two elective courses in accounting, geogra- phy; ag-economics; business management, or real estate. DPompeo122@aol.com Experience. No change. Stephen Roefaro, RAA Examination. Examination requirements have not changed, however, please note that the S.Roefaro3@verizon.net AQB is in the process of developing new Uniform State Appraiser Examinations. In accor- Jack Rose, IFAS, CSA dance with the segmented approach method, an applicant who has passed the existing exam email@example.com prior to January 1, 2008 has met the exam component. After January 1, 2008, those who have not yet passed the exam will need to pass the revised exam. This revised exam will reflect the Matthew Smith, MAI, SRA new education criteria. Please keep in mind, however, exam results are only valid for 24 months from the date the test was taken. Continuing Education. CE requirement has not changed. 28 hours every two year license term (including 7 hour National USPAP Update Course) remains in effect. New Licensing Requirement for Home Inspection The New York State Legislature has amended the Real Property Law (Article 12-B) to require licensing for home inspectors effective December 31, 2005. New York joins approximately twenty other states which have instituted licensing requirements. Several states also have pending bills in their legislatures which would establish some form of licensing for this profession. The nationwide trend toward licensing of home inspectors is being fueled by the continuing growth of the real estate market and concerns of many home buyers and sellers over inaccurate home inspections. Poor construction, improper wiring, termites, inefficient heating and cooling systems, and safety hazards if undetected, can result in catastrophic financial loss. Appraisers can also be caught up in the problem when a home buyer or seller gets a faulty inspection or none at all. Although they make notations about obvious problems they see, they are perceived by many individuals as performing the equivalent of a complete home inspec- Licensed and Certified Real Estate Appraisers tion. In some instances the Department receives complaints against appraisers for failing Certified General Real Estate Appraisers 1,530 Certified Residential Real Estate Appraisers 2,187 to note various home defects in their appraisal reports. The New York Law covers those Licensed Real Estate Appraisers 542 individuals who perform home inspections of residential (1- 4 dwelling units) buildings for Real Estate Appraiser Assistants 3,295 compensation. It does not include newly constructed buildings or those structures not Total 7,554 previously occupied as a dwelling unit. If you would like more detailed information about this license, please go to the Department of State website at www.dos.state.ny.us. Failure to Complete Continuing Education (Part 1107.3 Title 19 NYCRR) As a result of an audit by the Department of State, the following appraisers have been fined or surrendered their licenses for failure to provide evidence of completion of the continuing education requirement within the prescribed two year license term. As part of a consent order, appraisers paying fines must complete the continuing education requirement. Appraisers who surrendered their licenses may reap- ply after a one year period, with proof of completion of the required course work. Revocations and Fines FINE FINE 04-00002 Eugene Albert $ 1000 04-00207 Cathy A. Mcandrew $ 500 04-00003 Jacob Ugorets $ 500 04-00208 Leonard P. Dahl $ 500 04-00004 Frank Rossback $ 500 04-00209 Narus Jefferson $ 1000 04-00005 Dennis J. Wirbickas $ 1000 04-00210 Marcos M. Delvalle $ 1000 04-00006 Patrick D. Brown $ 500 04-00213 Andrew M. Doherty $ 1000 04-00008 Larry L. Herlan $ 1000 04-00214 Jacqueline R. Wegweiser $ 1000 04-00009 James D. Ivasutyn $ 1000 04-00215 Jay S. Rosenthal $ 1000 04-00013 William R. Strickland $ 1000 04-00217 Keith M. Gray $ 1000 04-00014 Stacy M. Vito $ 1000 04-00219 Claudette A. Challenor $ 1000 04-00015 Scott G. Wohl $ 1000 04-00222 Deborah A. Allison $ 500 04-00060 Deborah Carter $ 500 04-00223 Donald L. Miller, Jr. $ 500 04-00061 Debra Taylor $ 1000 04-00204 John Boles $ 1000 04-00063 Anthony Stewart $ 1000 04-00225 Philip Mallilo, Jr. $ 1000 04-00310 Robert A. Marino $ 1000 04-00226 Dennis McCoy $ 1000 04-00334 Terry L. Barber $ 1000 04-00227 Augustine H. McMillan $ 1000 04-00335 Joseph M. Deangelis $ 1000 04-00229 John K. Timoney $ 1000 04-00336 Rick S. Cowle $ 1000 04-00265 Paul F. Defina $ 500 04-00340 Daniel F. Munn $ 1000 04-00268 Debra A. Defina $ 1000 04-00344 Dawn M. Lombardi $ 1000 04-00270 William H.Kinn $ 1000 04-00064 Raymond Nawrocki $ 1000 04-00271 Thomas S. Kentouris $ 1000 04-00065 Edward Yunaatanov $ 1000 04-00275 Richard Mancuso $ 1000 04-00067 Carol Gobel $ 1000 04-00276 Jonathan P. Rich $ 1000 04-00069 Jeanne Young $ 1000 04-00277 Gerald N. Abrams $ 1000 04-00107 Daniel S. Walis $ 1000 04-00278 Alan P. Koslowski $ 1000 04-00108 Gerald L. Mullaney $ 1000 04-00282 Joseph F. Mirando $ 1000 04-00109 Henry Plekon $ 1000 04-00283 Bruce A. Constantino $ 1000 04-00115 Robert P. Housel $ 1000 04-00287 Thomas E. Kinsella $ 1000 04-00116 Joel C. Howie $ 1000 04-00288 Stephen Morgan $ 1000 04-00117 Denise T. Kemmer $ 1000 04-00289 Anne Teshima $ 1000 04-00118 Frank L. Valletta $ 1000 04-00291 Kerry S. Hopkins $ 1000 04-00119 Ronald J. Saar $ 1000 04-00292 Mark R. Maley, Sr. $ 1000 04-00160 Arthur J. Walker $ 1000 04-00293 Ronald A. Faltz $ 1000 04-00161 William A. Moore $ 500 04-00294 Robert E. Engel $ 1000 04-00162 Judy A. Sirena $ 1000 04-00296 Kelly J. Corryn $ 1000 04-00163 John L. Saluto $ 1000 04-00297 Daniel C. Brazell $ 1000 04-00164 Michael L. Degrego $ 1000 04-00298 Vincent J. Gianelli $ 1000 04-00165 Dong I. Oh $ 1000 04-00299 Dawn M. Martin $ 1000 04-00166 Keith S. Brazier $ 1000 04-00300 Alexander G. Seraphidas $ 1000 04-00167 Ralph Passarelli $ 1000 04-00301 Bonita G. Wolven $ 1000 04-00168 Elise M. Prado $ 1000 04-00302 John J. Breslin, Jr. $ 1000 04-00169 Ruth A. Gardner $ 1000 04-00303 John F. Brengelman $ 1000 04-00170 Steven J. Schleider $ 1000 04-00304 Joanne M. Bidwell $ 1000 04-00305 Robert E. Virsinger $ 1000 04-00306 Jeffrey C. Smith $ 1000 04-00307 David C. Roman $ 1000 04-00308 Michael J. Blanco $ 1000 04-00309 Joshua M. Gluckman $ 500 04-00311 John S. Fattorusso $ 1000 04-00338 Sean P. Dougherty $ 1000 04-00339 Lucy M. Feliciano $ 1000 04-00343 Samuel Gluckman $ 1000 04-00345 Albert Gabberty $ 1000 04-00364 Lori A. Crisafulli $ 1000 04-00365 Barbara A. Dowd $ 1000 04-00373 Frank A. Scali $ 1000 Licenses/Certifications Surrendered 04-00007 Robert J. Behrmann 04-00284 Greville L. Harvey 04-00114 Sergei Kolesnikov 04-00286 Laura Balboa 04-00216 Erik Kobley 04-00290 Francis J. Vanmanen 04-00272 Thomas Jimenez 04-00295 William Csorny 04-00279 Thomas R. Izzo 04-00337 Michael F. Damp Department of State Enforcement Update Note: Article 6-e of the Executive Law requires the Department of State to regulate the conduct of Licensed/Certified Appraisers and Appraiser Assistants and to establish disciplinary proceedings in conjunction with the Board of Real Estate Appraisal. The following is a summary of disciplinary sanctions imposed by the Department of State since publication of the last edition of the Appraisal Newsletter. Violations of the Uniform Standards of Professional Appraisal Practice 2001-3083 & On October 18, 2004, the Residential Appraiser License of Robert A. Specht, Jr. was revoked after an administrative 2002-2454 hearing for communicating two appraisal reports that were grossly inaccurate and misleading. 2003-1577 & On July 12, 2005, the Residential Appraiser Certification of Antonio Duval, Jr. was revoked after an administrative 2003-2033 hearing for communicating appraisal reports that were inaccurate and misleading. 2001-3507 On October 15, 2004, Certified Residential Appraiser Janice A. Boike was fined $1,500.00 as part of a Consent Order for failing to exercise reasonable diligence in developing and preparing an appraisal report. 2004-0602 On May 25, 2005, Certified General Appraiser Ross P. Iannello was fined $750.00 for failing to disclose inspection of the subject property by another appraiser and an improper certification on the appraisal report. 2004-3194 On July 7, 2005, Certified Residential Appraiser James Orticelle was fined $750.00 for communicating misleading appraisal reports and allowing an Appraiser Assistant to use an improper title. 2003-2303 On July 7, 2005, Licensed Residential Appraiser Robert W. Gerry was fined $750.00 for communicating misleading appraisal reports and allowing an Appraiser Assistant to use an improper title. 2005-0427 On July 7, 2005, Certified Residential Appraiser David B. Allen was fined $750.00 for failure to retain appraisal reports and supporting data in the prescribed period; communicate an appraisal in a timely fashion and indicate proper title on the appraisal report. 2005-2889 On October 3, 2005, License Residential Appraiser Scott Balfour was fined $300.00 for failure to confirm a closed sale of a comparable used in an appraisal report. Appraiser Examination Schedule Appraiser walk-in examinations for the first quarter of 2006 will be held in Albany, Buffalo, Franklin Square, Hauppauge, New York City and Syracuse at 9:30 am on Monday, January 23 and Monday, March 6, 2006. An appraiser applicant may only take the examination for the classification indicated on the admission notice. If an applicant has subsequently completed additional education for a different category, he or she may contact the Albany phone center at (518) 474-4429 for information on obtaining an updated admission notice. Appraiser Assistants should note that federal Appraiser Qualifications Board (AQB) guidelines specify that qualifying examination results are only valid for 24 months from the date the test was taken. If an applicant has not applied for a license/certification within this time period, a new test will be required. Please see related article on revisions to qualifying criteria effective January 1, 2008. Fannie & Freddie Mandate New Appraisal Forms For the past several months appraisal software developers have been engaged in updating systems for acceptance of the new 2005 appraisal forms. As you are aware, the forms are universal and have been accepted by Fannie Mae, Freddie Mac and HUD. Each one of these agencies has published various mandatory implementation date. Fannie Mae published a mandatory implementation date that requires use of the new appraisal forms effective 11/1/05. Freddie Mac and HUD have published mandatory implementation dates of 1/1/06. With the use of the new forms appraisers should be analyzing sales contracts. As you are aware USPAP requires the appraiser to analyze any current agreement of sale, option or listing of the subject property. If the appraiser is unable to obtain the sales contract through the normal course of business, he/she must disclose in the report the steps taken in an attempt to obtain this information. The new forms represent a major change in the way in which appraisers report their appraisal findings. Many new publications and courses are being offered on the idiosyncrasies of the new forms. All appraisers in the state should be aware of these changes in our profession and take the necessary actions to bring themselves up to speed. Department of State PRESORTED STANDARD Division of Licensing Services U S POSTAGE 84 Holland Avenue PAID Albany, NY 12208 PERMIT NO. 366 ALBANY, NY ASB Scope of Work Project Update In the last edition of the Appraisal Newsletter we discussed the Appraisal Standards Board’s plan for phasing out of the Departure Rule and introduction of a Scope of Work Rule which places more emphasis on problem identification. Basically the scope of work concept covers the entire spectrum of activities in the appraisal development process. In contrast the Departure Rule applies only to portions of the development process controlled by Specific Requirements. The Departure Rule also empha- sizes the use of labels “Complete” and “Limited” in appraisal reports, which can be misleading and may be insufficient for users of appraisal services to make informed decisions. Accordingly, the ASB states that the goal of the project is to improve the clarity and enforceability of USPAP, further promote and enhance public trust in appraisal practice and have a core set of standards that change less frequently. The Scope of Work Project will not introduce any major new requirements into USPAP. Although two concept papers and three exposure drafts have been issued on the new proposals, there may be an additional draft before finaliza- tion. Any applicable changes to USPAP would become effective no sooner than mid-2006. The ASB plan calls for the current 2005 edition of USPAP to remain effective until mid-2006. Since the marketplace will need time to adjust to the proposed changes, the next edition of USPAP should be published by January 2006 (which will be about six months ahead of its effective date). The 2006 edition of USPAP may remain in effect through all of 2007. The ASB also anticipates converting to a two-year USPAP publication cycle in 2008 instead of annual revisions. It is important to note that all dates are tentative and may be revised if necessary. Can I Use Courses Taken Out-of-State for Continuing Education Credit? Many appraisers take non-approved out-of-state courses or seminars to maintain designations with various appraisal organiza- tions or to keep up with the latest appraisal information and technology. You should know that in some cases the Department will accept these courses for credit towards fulfilling your 28-hour continuing education requirement. If the course or seminar was taken prior to your renewal in the immediately preceding two-year period of certification, you should complete an Appraiser CE Equiva- lency Form. The Education Unit will evaluate each submission on a case by case basis. Forms can be downloaded from our website (www.dos.state.ny.us) or the Education Unit can be reached at (518) 486-3803. Please note that this policy does not apply to non approved courses taken within New York State.