Real Estate Appraisal Newsletter

Document Sample
Real Estate Appraisal Newsletter Powered By Docstoc
					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)                 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)                  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-                  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.
                                            Experience. No change.
Stephen Roefaro, RAA
                                            Examination. Examination requirements have not changed, however, please note that the                   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                     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
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
  ( 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.