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Appraisal news

The following information is all appraisal related with bits and pieces of articles, rules, and regulations that are considered of interest to most appraisers and many users of appraisal services.  Please feel free to add any comments to the "PAC Feedback Form." 

This section of the website is considered a work in progress and will have constant changes and updates.
Revisions to Section 1103 of the Occupations Code

Changes to the laws and rules regarding certified or licensed appraisers has a great impact upon real estate licensees, i.e. brokers and sales licensees regarding when a real estate broker can do a Brokers Price Opinion (BPO).  Real estate appraisers also need to review the changes to make sure they conform. 

The requirements for HB 2375 was signed by the Texas Governor on May 27, 2011 and was effective immediately.  HB 2375 makes changes to Section 1103 of the Occupations Code relating to practices and professions regulated by the Texas Appraiser Licensing and Certification Board (TALCB).
 
I believe you will find that the changes, in part,

    * require all appraisals in Texas be performed by licensed or certified appraisers,
    * evaluations, opinions of value, or BPOs cannot be referred to as an appraisal, and
    * BPOs must be related to the actual or potential acquisition, disposition, encumbrance, or management
               of an interest in real property and
    * repeals the provisional license category. 

These and other changes help clear the lines between real estate appraisers and real estate brokers issuing opinions of value.
 
These changes are important to me as an expert witness as it requires all the appraisal experts or others who give an opinion of value in litigation to follow USPAP.  USPAP has not allowed letters of opinion, restricted appraisals, or opinions of value for litigation purposes but Texas state laws were not clear or not enforced thus the changes clarifies that all appraisals in Texas must be performed by a licensed or certified appraiser.
HB 2375 Signed & Effective 5/27/2011
HB 2375 History
Fannie Mae
Appraiser Independence RequirementsThe Appraiser Independence Requirements have replaced the Home Valuation Code of Conduct (HVCC). These requirements maintain the spirit and intent of the HVCC and continue to provide important protections for mortgage investors, home buyers, and the housing market.

The following link has additional information on: 

https://www.efanniemae.com/is/appraisers/index.jsp?from=hp
More News Articles
BPO RestrictionsSee the excert from the TREC Advisor (Volume 22, No. 6, October 2011 regarding a brokers ability to offer BPO's.  Follow the link to the News and events page at http://greaterdallasnaifa.com/newsandevents.html HB 2375 Signed & Effective 5/27/2011The following is taken from the Rules of the Texas Real Estate Commission regarding the ability and regulaltions of a licensed broker or salesman to do real estate appraisals. TREC Rules in HTML format at Secretary of State site
TREC Rules in PDF format at TREC site (as revised and in effect January 2, 2012)
Filesize: 1.1 MbRule #
(click link to download)TopicDate of Commission ActionEffective DateExpiration Date of Emergency Rule22 TAC §535.17. Appraisals
(adopted by emergency action)Subchapter B. General Provisions Relating to the Requirements of Licensure08/01/201109/01/201112/29/2011
Comments:TREC adopts on an emergency basis amendments to 22 TAC §535.17 regarding Appraisals. The amendments are adopted on an emergency basis to implement the relevant provisions of Senate Bill 747, 82nd Session, Texas Legislature, Regular Session (2011). The effective date of the relevant provisions of SB 747 is September 1, 2011. The adoption of the amendment is necessary to comply with the effective date of the bill. In relevant part, SB 747 amended Texas Occupations Code, §1101.002 to delete appraisals from the laundry list of activities that are considered real estate brokerage. In addition SB 747 added a new item to the list regarding broker price opinions. The amendments to §535.17 clarify that a real estate licensee must be licensed under Texas Occupations Code, Chapter 1103 to conduct real estate appraisals. Further the rule is amended to provide that if a broker or salesperson provides a broker price opinion under Chapter 1101, the opinion must provide a written disclosure as provided in the rule. (a) Except as provided by this section, appraisals of real property performed in this state by Texas real estate licensees must be conducted in accordance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation in effect at the time the appraisal is performed. If a real estate licensee, for a separate fee, provides an opinion of value or comparative market analysis which does not conform with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation, the licensee shall also provide the person for whom the opinion or analysis is prepared with a written statement containing the following language: "THIS IS AN OPINION OF VALUE OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation."(b) The statement required by subsection (a) of this section must be made part of any written opinion or analysis report and must be reproduced verbatim.  
(c) The exception allowed by subsection (a) of this section does not apply to a transaction in which the Resolution Trust Corporation or a federal financial institutions regulatory agency has required compliance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.(d) A salesperson may prepare, sign, and present real estate appraisals for the salesperson's sponsoring broker, but the salesperson must submit appraisals in the broker's name and the broker is responsible for the appraisals. 

(e) The Act does not apply to appraisals performed by the employees of a financial institution or investment firm in connection with a contemplated loan or investment by their employers.  
Source Note: Source Note: The provisions of this �535.17 adopted to be effective January 1, 1976; amended to be effective March 1, 1991, 15 TexReg 7435; amended to be effective August 19, 1991, 16 TexReg 4284; amended to be effective April 14, 1998, 23 TexReg 3682; amended to be effective July 1, 1999, 24 TexReg 4824; amended to be effective January 1, 2004, 28 TexReg 9541; amended to be effective January 1, 2011, 35 TexReg 11674
Texas Real Estate Commission   (Real Estate Brokers)

Website:
  http://www.trec.texas.gov/Information on the Texas Appraiser Licensing and Certification Board  (TALCB)

TALCB Act in HTML format 

or


TALCB Rules in HTML format

at Texas Legislature site or go to the TALCB web site:http://www.talcb.texas.gov/ActAndRules/TALCB-Rules.asp
See also  Appraisal Fees

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