Department of Labor and Revenue

Title - South Dakota Appraiser Certification Program

News Articles - February 2013

Appraiser Certification Program Mission, Purpose and Intent

Appraiser Certification Program Advisory Council

Council Members Honored for Service

Appointment of Banking Industry Liaison Council Member

Senate Bill 60 - Legislation Introduced for the 2013 South Dakota Legislative Session

New Licensees - November/December 2012

Information Regarding Disciplinary Actions

Anonymous Complaints

Review of Cases - January 1, 2012 through December 31, 2013

Appraiser Qualifications Board Q&A

2015 Real Property Appraiser Qualification Criteria-related Issues

2013 Renewed AMCs

2013 Non-Renewed AMCs

AMCs Who Have Notified Department They Will No Longer Be Doing Business in SD

Appraiser Certification Program Mission, Purpose and Intent

The Appraiser Certification Program was implemented July 1, 1990, pursuant to enactment of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by Congress. The mission of the Program is to certify, license and register appraisers to perform real estate appraisals in the state of South Dakota pursuant to Title XI (FIRREA). The purpose of the Program is to examine candidates, issue certificates, investigate and administer disciplinary actions to persons in violation of the rules, statutes and uniform standards, and approve qualifying and continuing education courses. Title XI intends that states supervise all of the activities and practices of persons who are certified or licensed to perform real estate appraisals through effective regulation, supervision and discipline to assure their professional competence.

Effective July 1, 2011, pursuant to the Dodd-Frank Wall Street Reform Act, the Program was granted legislative authority to register and supervise the activities of Appraisal Management Companies doing business in South Dakota.

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Appraiser Certification Program Advisory Council


Council members provide recommendations to the Secretary of the Department of Labor and Regulation in the areas of program administration in order to sustain a program that is consistent with Title XI. The Council meets quarterly in public forum. See the website for meeting information.

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Council Members Honored for Service

Plaques were presented to Craig Sommers, Jim Dunlap and Boyd Waara honoring their service to the Council. Boyd Waara was also honored for his service on the Council by the banking industry by Deb Gates, Administrative Vice President of the South Dakota Bankers Association.

Appointment of Banking Industry Liaison Council Member

The Appraiser Certification Program Advisory Council welcomed Matt Van Zee of First Dakota National Bank in Sioux Falls, South Dakota as the banking industry liaison serving on behalf of the South Dakota Bankers Association.

Senate Bill 60 - Legislation Introduced for the 2013 South Dakota Legislative Session

The Department of Labor and Regulation, Appraiser Certification Program introduces legislation to revise certain definitions.

Section 1 defines "appraisal practice," which is currently not defined in statute. This will provide the Appraiser Certification Program jurisdiction and authority for effective supervision of appraisers that perform appraisal review and appraisal consulting assignments.

Sections 2 and 3 amend Chapter 36-21B and 36-21D to revise the definition of "appraisal" in statute to conform with the nationally recognized definition in the Uniform Standards of Professional Appraisal Practice and the definition in the administrative rules regarding appraisers (ARSD 20:14:01:01).

The Appraiser Certification Program Advisory Council unanimously recommended this legislation.

See website for the full text of the bill. If you have any questions, please contact Sherry Bren at 605.773.4608 or sherry.bren@state.sd.us.

New Licensees - November/December 2012

Shandi McFarling, State-Registered - Pierre, SD
John M. Kubes, State-Certified General - Minneapolis, MN

George Stavrenos, State-Registered - Sioux Falls, SD
Jeffrey A. Ballard, State-Registered - Sioux Falls, SD
Beth Barthel, State-Registered, Florence, SD
Dustan Waaraniemi, State-Registered - Barnesville, MN

Information Regarding Disciplinary Actions

Public information regarding disciplinary action taken against an appraiser is available upon written request to the Department of Labor and Regulation, Appraiser Certification Program, 445 East Capitol Avenue, Pierre, SD 57501 or email sherry.bren@state.sd.us. Include in the request for information the name of the appraiser and the appraiser's city and state of residence. (Disciplinary action may include denial, suspension, censure, reprimand, or revocation of a certificate by the department (ARSD 20:14:11:03).)

Anonymous Complaints

ARSD 20:14:11:01:01. Anonymous complaints. Initiation of an investigation may be commenced upon receipt of an anonymous complaint if it meets the following criteria:

(1) The allegations of violations of any provision of this article are considered

 credible and based upon factual information which is independently  

 verifiable; and

(2) The complaint is accompanied by a copy of the appraisal report or other

 documents which contain clearly identifiable errors or violations of the

 provisions of this article.

Review of Cases - January 1, 2012 through December 31, 2012

For the period January 1, 2012 through December 31, 2012, the Department has received eleven upgrade applications and initiated fourteen complaint investigations.

Upgrades - Seven upgrades pending, one agreed disposition executed,

and three upgrades issued.

Complaints - Eight cases pending, three cases dismissed, and three agreements executed.

Appraiser Qualifications Board Q&A

Vol.4, No. 2 December 2012

The Appraiser Qualifications Board (AQB) of The Appraisal Foundation establishes the minimum education, experience and examination requirements for real property appraisers to obtain a state license or certification. The AQB Q&A is a form of guidance issued by the AQB to respond to questions raised by appraisers, enforcement officials, users of appraisal services and the public to illustrate the applicability of the Real Property Appraiser Qualification Criteria and Interpretations of the Criteria in specific situations and to offer advice from the AQB for the Resolution of appraisal issues and problems.  The AQB Q&A may not represent the only possible solution to the issues discussed nor may the advice provided be applied equally to seemingly similar situations.  AQB Q&A does not establish new Criteria. AQB Q&A is not part of the Real Property Appraiser Qualification Criteria. AQB Q&A is approved by the AQB without public exposure and comment.

Experience

Question: I am a Supervisory Appraiser and I hold a Certified General credential in two states: State A and State B. One of my Trainees has a Trainee Appraiser's credential in State A only. I have an assignment in State B, and plan to take my Trainee with me to work on the assignment. Will State A grant experience to my Trainee Appraiser for work performed in State B?

Response: The Real Property Appraiser Qualification Criteria specifies experience must be gained under the supervision of the Supervisory Appraiser and the work must comply with USPAP. Thus, the Real Property Appraiser Qualification Criteria would not prohibit State A from granting the Trainee Appraiser credit in this case. However, be sure to check with the state appraiser regulatory agency in State A to confirm the state's requirements, which could be more restrictive.

2015 Real Property Appraiser Qualification Criteria-Related Issues

Supervisory Appraiser/Trainee Appraiser Education

Question 1: I am a state appraiser regulatory official and I have reviewed the AQB course content outline for the required 2015 Supervisory Appraiser/Trainee Appraiser course. Does the AQB require a minimum or maximum length for this course?

Response: AQB has not established a minimum or maximum timeframe for this course offering. The intent of the course is to cover areas of general applicability to all Supervisory Appraiser/Trainee Appraiser relationships, and to allow each state to consider including material specific to the local jurisdiction regarding state law and/or areas of practice eliciting the highest number of disciplinary actions/complaints.

Question 2: I am a state appraiser regulatory official. A course provider submitted a 2015 Supervisory Appraiser/Trainee Appraiser course for Continuing Education (CE) approval. Does the AQB allow this course to be utilized for appraiser CE?

Response: Yes, upon review and approval by the state appraiser regulatory agency, a Supervisory Appraiser/Trainee Appraiser course may be utilized for CE for existing credential holders. However, the 2015 Real Property Appraiser Qualification Criteria prohibit the course from being utilized as counted toward Qualifying Education (QE).

"Supervision" of Licensed Residential and Certified Residential Appraisers

Question: I am currently a Licensed Residential Appraiser pursuing a Certified General appraiser credential. I work for a Certified General appraiser who mentors me, and reviews and signs my commercial and complex residential work. Do we have to attend the 2015 Supervisory Appraiser/Trainee Appraiser course and do I need to keep a Trainee Appraiser log (and does my boss need to keep a Supervisory Appraiser log) for my experience to count toward earning the Certified General Credential?

Response: The 2015 Real Property Appraiser Qualification Criteria only requires a formal Supervisory Appraiser for Trainee Appraisers. Even though you may be "supervised" in the generic sense of the word, because you hold a Licensed Residential credential, the Real Property Appraiser Qualification Criteria would NOT require a Supervisory Appraiser in this case. A state appraiser regulatory agency may require the use of the Trainee Appraiser log and/or a similar log in order to demonstrate experience gained toward the Certified Residential or Certified General Credential. Please check with your state appraiser regulatory agency, since it may adopt more stringent requirements than those outlined in the Criteria.

Supervisory Appraiser Eligibility

Question 1: I have been a Certified Residential appraiser for the past five (5) years. Last month, I was issued a Certified General credential in the same jurisdiction. Am I able to supervise a Trainee Appraiser working on commercial properties?

Response: The Real Property Appraiser Qualification Criteria states 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. The Criteria do not specify that a Supervisory Appraiser have a specific Certified Residential or Certified General credential, so you may be eligible to supervise a Trainee Appraiser performing commercial appraisals. However, the Supervisory Appraiser must comply with the COMPETENCY RULE of USPAP for the property type and geographic location the Trainee Appraiser is being supervised.

Question 2: I am a state-certified real property appraiser and I am supervising a Trainee Appraiser. I notice the Real Property Appraiser Qualification Criteria specifies 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. Can you provide examples of disciplinary actions that would affect my legal eligibility to engage in appraisal practice?

Response: The AQB has interpreted a disciplinary action to mean any adverse, final, and nonappealable decision by a state regulatory, administrative, or judicial authority of competent jurisdiction, which affects an individual's ability to practice. Sanctions imposed may vary between jurisdictions and may consist of those that do and do not affect an appraiser's legal eligibility to practice.

Sanctions that would affect an appraiser's legal eligibility to engage in appraisal practice may include, but are not limited to:

  • Any limitation preventing or restricting an appraiser from engaging in appraisal practice until a specified condition has been met.
  • Any limitation preventing or restricting an appraiser from engaging in appraisal practice of specific property types for any duration of time.
  • Suspension of a Certified General or Certified Residential credential in any jurisdiction.
  • Revocation of a Certified General or Certified Residential credential in any jurisdiction.

However, be sure to check with your state appraiser regulatory agency to confirm the state's requirements, which could be more restrictive.

Question 3: Can you provide examples of disciplinary actions that would not affect my legal eligibility to engage in appraisal practice?

Response: Sanctions that would not affect an appraiser's legal eligibility to engage in appraisal practice may include, but are not limited to:

  • A monetary fine or penalty (without additional sanctions limiting the appraiser's legal eligibility to engage in appraisal practice).
  • A letter of warning or reprimand.
  • An educational requirement.

However, be sure to check with your state appraiser regulatory agency to confirm the state's requirements, which could be more restrictive.

Question 4: I am a state-certified real property appraiser and I am supervising a Trainee Appraiser. I was recently investigated by my state board for an alleged violation of USPAP. The case was subsequently dismissed without merit and no violations were substantiated. Does an investigation by a state board or other duly authorized entity prelude my continued supervision of the Trainee Appraiser?

Response: No, the Real Property Appraiser Qualification Criteria specifies 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. Although an investigation has occurred in your case, there has been no disciplinary action taken that would preclude your continued supervision of your Trainee Appraiser. However, be sure to check with your state appraiser regulatory agency to confirm the state's requirements, which could be more restrictive.

Question 5. I am a state-certified real property appraiser and I am supervising a Trainee Appraiser. I also carry a designation issued by a professional appraiser organization. I was recently investigated by my organization for an alleged violation of the organization's professional ethics requirements, and subsequently, my professional designation was revoked. Does a revocation of my designation by the professional organization preclude my continued supervision of the Trainee Appraiser?

Response: No, the Real Property Appraiser Qualification Criteria specifies 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. Although your appraiser organization has imposed a disciplinary sanction by revoking your designation, this action does not, in and of itself, affect your legal eligibility to engage in appraisal practice in your credentialing jurisdiction.  However, be sure to check with your state appraiser regulatory agency to confirm the state's requirements, which could be more restrictive.

Question 6: I am a state-certified real property appraiser in States A and B. I am also supervising a Trainee Appraiser in State A. I was recently investigated by the state board in State B for an alleged violation of USPAP and it was determined a violation was found to exist. Subsequently, State B suspended my appraiser certification for a period of one (1) year. Does this action preclude my continued supervision of the Trainee Appraiser in State A?

Response: Yes, the Real Property Appraiser Qualification Criteria specifies   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. Although you may currently be in "good standing" in State A, your legal eligibility to engage in appraisal practice in State B has been suspended and you are no longer able to act as a Supervisory Appraiser in any jurisdiction until a minimum of three (3) years after the successful completion/termination of the sanction imposed against you. However, be sure to check with your state appraiser regulatory agency to confirm state's requirements, which could be more restrictive.

Question 7: I am a Trainee Appraiser seeking a Supervisory Appraiser. I live in a state where appraisers are not required to be state-licensed or certified for appraisal assignments that do not involve federally related transactions. I have found an appraiser that is willing to supervise my work and sign my appraisal experience log, but he does not possess a state license or certification. Would this individual qualify as my Supervisory Appraiser?

Response: No, the Real Property Appraiser Qualification Criteria specifies 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. The fact this individual is not a state certified appraiser precludes this appraiser from acting as your Supervisory Appraiser and signing your appraisal experience log. However, be sure to check with your state appraiser regulatory agency to confirm the state's requirements, which could be more restrictive.

General Requirements

Question: I am a state appraiser regulatory official. The 2015 Real Property Appraiser Qualification Criteria required applicants for new credentials to undergo a background check. Does this apply to credential holders from other states seeking reciprocal licensure and/or temporary practice permits in my state?

Response: The Real Property Appraiser Qualification Criteria encourage states to grant reciprocity and/or allow temporary practice to those who hold valid credentials in other states.  As such, the Criteria do not require a state to examine the specifics of the original application in the credential holder's existing jurisdiction; i.e., what and/or how much education they completed and when, when the examination was completed, whether the applicant holds a college degree, what level of experience the applicant was required to complete, and/or whether the credential was issued with or without a background check.

However, as with all AQB Criteria, a state may adopt a more stringent rule with regard to background checks.

The AQB Q&A is posted on The Appraisal Foundation website.

2013 Renewed AMCs

AAA Appraisal Advantage, Inc.

Accurate Title Group, LLC

Act Appraisal, Inc.

Allstate Appraisal LP

AMC Links, LLC

AMC Settlement Services, LLC

Appraisal Management Services, LLC

Asset Management Outsourcing Services, Inc.

Axis Appraisal Management Solutions

Broad Street Valuations, Inc.

C&S Appraisal Services, LLC, dba CoreLogic Appraisal Services

C2C Appraisal Services, LLC

Class Appraisal, Inc.

ClearCapital.com, Inc.

Coester Group, Inc.

CoreLogic Collateral Solutions, LLC

DartAppraisal.com, Inc.

DataQuick Lending Solutions, Inc.

Dwellworks Residential Services, LLC

Electronic Appraisal Solutions, Inc.

Elliott & Company Appraisers, Inc.

Epic Real Estate Solutions, Inc.

Equifax Settlement Services, LLC

Equity National Title & Closing Services, Inc.

ES Appraisal Services, LLC

FA Business Services, LLC

Financial Asset Services, Inc.

Finiti, LLC

Frisco Lender Services, LLC

Goodman Dean, Inc.

Guideline Real Estate Services, LLC

Home Value Real Estate, LLC

iMortgage Services, LLC

InHouse, Inc.

International Valuation Group, LLC

IRR-Residential, LLC

ISGN Solutions, Inc.

Kirchmeyer & Associates, Inc.

LandSafe Appraisal Services, Inc.

LenderVend, LLC

Lincoln Appraisal & Settlement Services, LLC

LPS Valuation Solutions, LLC

LRES Corporation

LSI Appraisal, LLC

Mortgage Information Services, Inc.

Murcor, Inc.

National Real Estate Information Services

NationalLink Valuations, LLC

Nations Valuation Services, Inc.

Nationwide Appraisal Network, LLC

Nationwide Property & Appraisal Services, LLC

Novo Appraisal Management Corporation

Old Republic Diversified Services, Inc.

Order ProUSA, LLC

Pendo Management, LLC

PowerLink Valuations, LLC

Prime Valuation Services, LLC

Pro-Teck Services Ltd

Quality Valuation Services, LLC

Real Estate Valuation Partners, LLC

Real Shield, LLC

Real Valuation Services, LLC

Residential RealEstate Review, Inc.

Rush My Appraisal, Inc.

ServiceLInk Valuation Solutions, LLC

SettlementOne Valuation Corporation

Solidifi US, Inc.

Southwest Financial Services, LLC

Speedy Title & Appraisal Review Services, LLC (STARS)

Springhouse, LLC

StreetLinks, LLC

The Property Sciences Group, Inc.

Timios Appraisal Management, Inc.

Title Source, Inc.

Trident Services, LLC

Trimavin, LLC

U.S. Real Estate Services, Inc.

United Lender Services Corp.

United States Appraisals, LLC

Urban Lending Solutions Appraisals, LLC

Valocity, LLC

ValuAmerica, Inc.

Valuation Information Technology, LLC, dba Rels Valuation

Valued Veterans, LLC

Valutrust Solutions, LLC

WHR Group, Inc.

2013 Non-Renewed AMCs

Corelogic Valuation Services, LLC

Data Verify National Property & Valuation Services, Inc.

Digital Risk Valuation Services, LLC

JVI -  Appraisal Division, LLC

Land Gorilla, LLC

Power Valuation Services, Inc.

Secured Lending Services, GP

Vesta Valuation, LLC

AMCs Who Have Notified Department They Will No Longer Be Doing Business in SD

C & S Appraisal Services, LLC, dba CoreLogic Appraisal Services

Secured Lending Services, GP

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Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184