Appraiser Certification Program Advisory Council
New Licensees - August/September 2011
Information Regarding Disciplinary Actions
Review of Cases - January 1, 2011 through September 26, 2011
Upgrades - August 5, 2011 through September 26, 2011
Appraisal Management Companies to be Registered and Supervised in South Dakota
Maintaining an Education File
Statutory Provisions Affecting State Appraiser Regulatory Programs
When Does An Appraisal Assignment End?
Reminder for Renewal in 2013 7-Hour National USPAP Update Course
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.
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 our Advisory Council Web page for meeting information.
Chris R. Jenkins, State-Registered - West Des Moines, IA
Dane R. Anderson, State-Certified General - West Des Moines, IA
Corey D. Hunhoff, State-Registered - Yankton, SD
Kyle M. Sexe, State-Registered - Sioux Falls, SD
Joe P. Holler, State-Registered - Sioux Falls, SD
Adam L. Nelson, State-Registered - Sioux Falls, SD
Sheila R. Jensen, State-Certified General - San Diego, CA
Richard E. Sobczak, State-Certified Genera l- Omaha, NE
Anthony D. Guth, State-Certified General - Chicago, IL
Daniel P. McCoy, State-Certified General - Fort Collins, CO
David J. Tonsfeldt, State-Certified General - Hiawatha, IA
Public information regarding disciplinary action taken against an appraiser is available upon written request to:
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.) (Administrative Rule of South Dakota (ARSD) 20:14:11:03)
The following disciplinary action has been taken by the Department of Labor and Regulation, Appraiser Certification Program:
Michael D. Burns, Rapid City, South Dakota - Complaint Case # 10-369. The Department of Labor and Regulation entered into a Consent Agreement suspending the State-Certified Residential Appraiser Certificate of Michael D. Burns commencing September 16, 2011 through September 30, 2011 and assessed a $600 penalty for violations of ARSD 20:14:06:01 (violation of Uniform Standards of Professional Appraisal Practice, Standard 1 and 2).
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:
For the period January 1, 2011 through September 26, 2011, the Department has received four upgrade applications and initiated 14 complaint investigations.
Upgrades - Three upgrades issued and one upgrade pending.
Complaints - One complaint dismissed, one temporary permit application withdrawn, and twelve complaints pending.
Jay Knuppe, State-Certified General
Thomas Young, State-Certified General
Effective July 1, 2011, any person or entity acting as an appraisal management company or performing appraisal management services in this state, with limited exceptions, shall register with the Department of Labor and Regulation. The statutes regarding registration and supervision of Appraisal Management Companies may be found on the Appraiser Certification Program Website at www.state.sd.us/appraisers.
The Department recommends that each appraiser registered, licensed or certified by the Appraiser Certification Program maintain an "education" file for appraisal course attendance verification for courses taken to renew the appraiser certificate. It is much easier to maintain the "education" file than to have to contact education providers for the documents when it is time to renew the certificate.
On March 18, 2011 the Appraisal Subcommittee issued a Bulletin (No. 2011-01) to the State Appraiser Regulatory Officials to provide information on compliance with certain provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). The Dodd-Frank Act amended several sections of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA Title XI).
The provision affecting the South Dakota Appraiser Certification Program concerns mandatory Appraiser Qualifications Board (AQB) Criteria for credentialing of State licensed appraisers (licensed appraisers). Specifically, the requirement that only AQB-compliant appraisers are eligible to perform appraisals for federally related transactions (FRTs).
Pursuant to the Bulletin issued by the ASC, as of July 1, 2013, in order for a licensed appraiser (state-licensed appraiser in South Dakota) to be eligible to perform appraisals for FRTs, that individual must satisfy requirements for licensing in a State whose criteria meet or exceed AQB Criteria. Therefore, any State issuing State license credential must adopt or implement the relevant AQB Criteria. The ASC will begin monitoring States for compliance with the provision on July 1, 2013. As of that date, licensed level appraisers will be maintained on the National Registry as follows:
Currently, South Dakota complies with the AQB Criteria except in the area of the minimum number of hours of experience an applicant must verify in order to be licensed as or upgrade to the state-licensed appraiser classification. According to ARSD 20:14:05:03 an applicant for state-licensed appraiser must have a minimum of 1,000 hours of appraisal experience. The AQB Criteria requires a minimum of 2,000 hours of appraisal experience.
The Appraiser Certification Program will, in the very near future, revise the administrative rules regarding appraisers to require an applicant to verify 2,000 hours of appraisal experience in order to be licensed as or upgrade to the state-licensed appraiser classification.
If you have any questions, please feel free to contact the Appraiser Certification Program office at 605.773.4608.
You finish your appraisal report and submit it to your client. The next day you receive an email asking you to add three comps and a current listing. After you send those in, you receive a request for interior photos of the subject. When will it end?
The Board gets calls about this almost daily. The major reason that appraisers get these calls is that they fail to establish their scope of work at the beginning of the assignment. Many appraisers simply look at the fax or email order and start working on the assignment, never asking their clients questions such as how many comps they should use or whether interior photos are required. Another reason is that appraisers generally try to keep their clients happy and will go as far as they can to do so.
The Appraisal board takes the position that an appraisal assignment ends when the assignment conditions have been met and the report is transmitted to the client. After that point, the client may ask for clarification of items in the report, or for an explanation as to why certain information was not provided. The client may also notify the appraiser of errors in the report and ask the appraiser to correct the mistakes. Any other requests, such as use of additional comps, result in a new appraisal assignment. The appraiser is free to charge whatever he or she chooses for this assignment, or may charge no fee at all.
Appraisers are advised that they should have a letter of engagement in the workfile for each assignment that details the scope of work to be performed for each assignment. If the appraisal order does not have sufficient information on it to outline exactly what the client wants, the appraisers should follow up with a fax or email stating exactly what they will do for the assignment. This could include stating the number of comps to be used in the grid, whether a current listing will also be gridded, whether interior photos will be taken or provided in the report, how long they will take to produce the appraisal, etc. Failing to have such a letter may result in a misunderstanding with the client whether the appraiser has completed the assignment as ordered.
Note: The Appraisal Board is aware that the Appraisal Standards Board issued a monthly Q&A in December 2007 in which they stated that "Requests to perform additional research or analysis change the scope of work, but do not create a new assignment. The additional work can be performed as part of the original assignment. The appraiser may decide, as a business decision, to treat the request for additional research and analysis as a new assignment, but it is not required." The concern the Board has is that this Q&A would let an appraisal assignment go on for a long period of time, as there would be no definite end to it. The board believes that appraisers should treat a request for additional research and analysis as a new assignment.
Pursuant to ARSD 20:14:13:01 an applicant for renewal of a certificate or license must successfully complete the most current edition seven-hour National Uniform Standards of Professional Appraisal Practice Update course prior to June 30 of each even-numbered year.
South Dakota state-registered, state-licensed, state-certified residential and state-certified general appraisers must complete the 2012-2013 Edition of the 7-Hour National USPAP Update Course prior to June 30, 2012. (Certified or licensed appraisers by reciprocity should review the administrative rules regarding continuing education requirements for reciprocal appraisers found in ARSD 20:14:13:01.01(3)).
700 Governors Drive
Pierre, SD 57501-2291