Ch 7 - Chapter Seven: CA Jurisdictional Requirements for Supervisory Appraiser and Trainee Appraiser

In California, the penalty for appraising without a license is a fine up to ________ and/or __________. $1,000, one year in prison $5,000, loss of voting rights $5,000, two years in prison $10,000, one year in prison

$10,000, one year in prison

An applicant for an appraisal credential in California is given _____ attempts to pass the examination within one year. 3 5 8 Unlimited

5

When an applicant for an appraiser credential in California submits a complete application, BREA has _____ days to issue or deny the requested credential. 90 120 180 365

90

According to Article 3 of the California regulations, appraisal education courses must meet minimum _______ requirements. State Fannie Mae AQB Bureau of Education

AQB

Approved Application

According to the BREA Licensing Requirements Handbook: Once an application is approved, BREA will issue a letter informing you of eligibility to take your exam along with your Applied Measurement Professionals (AMP) identification number that is required to schedule your exam. Upon successful completion of the exam, applicants then submit all of the following: Application for Issuance Of License form (REA 3008) Original copy of the passing score results The requested work samples for BREA's review Balance of the license fees, if any The expiration date of an appraiser license is normally two years from the date of issuance.

The Bureau maintains a list of frequently asked questions which can be accessed from the BREA's website. There are FAQs related to licensing, and a separate list of FAQs related to enforcement. The following is one of the FAQs from the Licensing FAQs page: Question: What if lenders won't let me sign appraisals as a Trainee licensee although I have a co-signer who is certified at the appropriate level for the type of property being appraised and in good standing with BREA?

Answer: As a licensed Trainee appraiser, you may accumulate experience hours without signing the appraisal in the following ways: By providing "significant professional assistance" to another appraiser and having the duties you performed identified in the report. If you perform at least 75% of the professional appraisal work and the appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), this experience would qualify under Category 10 (Assistance in the Preparation of Appraisals) for up to a maximum of 400 hours of credit; and/or By performing the entire appraisal process under the direct supervision of a California certified appraiser. The final conclusion as to value is made by and the appraisal is signed by the licensed appraiser, with you and the duties you performed identified in the report. If you perform all appraisal methods customarily used for a particular property type and the appraisal conforms to the USPAP, this experience would qualify under Category 1 (Fee and Staff Appraisal) with an unlimited number of hours.

In the California appraiser licensing law, what does the term "license" mean? Licensed residential appraiser only Licensed trainee only Licensed residential appraisers and licensed trainees only Any credential including licensed appraiser, licensed trainee, certified residential and certified general

Any credential including licensed appraiser, licensed trainee, certified residential and certified general

The scope of practice for a holder of a Trainee license in California is: Non-complex one- to four-family residential properties only Any one- to four-family residential property, regardless of complexity Any property which the supervising appraiser is permitted to appraise Not limited or restricted in any way

Any property which the supervising appraiser is permitted to appraise

Examination

Applicants pay examination fees directly to the exam provider. According to the Licensing Requirements Handbook, when the applicant receives the notification from BREA approving him or her to take the exam, the applicant should call the test administrator and schedule an exam date and choose a testing center. Testing dates, facilities, and seating are limited. The applicant must successfully complete the examination within five (5) attempts and no later than one (1) year after the date they become eligible. If an applicant does not pass the exam within five attempts (or within the one-year eligibility period) the application expires and the applicant must reapply for licensure. This will require a complete new application and payment of all appropriate fees.

An applicant for an appraisal credential is denied by BREA. The applicant believes he has met the minimum requirements for the credential; however BREA's conclusion is that the applicant does not meet these minimum requirements. What may the applicant do at this point? Nothing; decisions of BREA are final Appeal the decision to the California State Assembly Apply to have the decision reviewed in a hearing Apply for a credential in another state that has lesser requirements

Apply to have the decision reviewed in a hearing

defenitions

Appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion in a federally related transaction as to the market value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. "Director" or "Chief" means the Chief of the Bureau of Real Estate Appraisers. "Federal financial institutions regulatory agency" means the Federal Reserve Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Office of Thrift Supervision, Federal Home Loan Bank System, National Credit Union Administration, and any other agency determined by the director to have jurisdiction over transactions related to this part. "Federally related real estate appraisal activity" means the act or process of making or performing an appraisal on real estate or real property in a federally related transaction and preparing an appraisal as a result of that activity. "Federally related transaction" means any real estate-related financial transaction which a federal financial institutions regulatory agency engages in, contracts for or regulates and which requires the services of a state licensed real estate appraiser regulated by this part. This term also includes any transaction identified as such by a federal financial institutions regulatory agency. "License" means any license, certificate, permit, registration, or other means issued by the office authorizing the person to whom it is issued to act pursuant to this part within this state. "Office" or "Bureau" means the Bureau of Real Estate Appraisers. As the term "license" is used in the law, it is a generic term that would include the credentials held by licensed appraisers, licensed trainees, certified residential and certified general appraisers.

Experience Requirements

Article 3 also establishes the number of experience hours for the different credential levels. Note that there is no experience requirement for the Trainee Appraiser credential. These requirements were revised effective April 1, 2020. Certified General: Minimum of 3,000 hours obtained cumulatively over a period of not less than 18 months. Must have a minimum of 1,500 hours of non-residential experience. Certified Residential: Minimum of 1,500 hours obtained cumulatively over a period of not less than 12 months. State Licensed: Minimum of 1,000 hours obtained over a period of not less than 6 months. A maximum of 400 hours of experience in appraisal review may be credited toward the minimum experience hours, and no more than 50% of these hours may consist of desk reviews. Only reviews performed after obtaining 1,600 hours of acceptable experience in other categories may be credited towards meeting minimum experience requirements. There are no minimum experience hour requirements for Trainee Appraisers. All experience claimed must be in conformance with USPAP and completed after January 30, 1989.

Article 3: Experience and Education Requirements

Article 3 of the California regulations establishes the education and experience requirements for licensed and certified appraisers. We will look at the education requirements first. The following requirements apply to basic (qualifying) and continuing education. All courses must meet minimum AQB requirements. Classroom courses must be taken through schools that are accredited by either: BREA, or Any regional accrediting agency approved by the U.S. Dep't of Education Distance education courses are acceptable if they were: Taken at a school that has been accredited by a regional accrediting agency approved by the U.S. Dep't of Education; or Reviewed and approved by BREA and the International Distance Education Certification Center (IDECC) or approved through the AQB Course Approval Program. For example, this distance education course was approved by IDECC and BREA and is therefore acceptable for credit in California. As of January 1, 2017, applicants for appraisal licensure or certification must complete a BREA-approved course on state and federal laws and regulations, which includes a final examination. This is in addition to the required qualifying education courses.

Article 4: Application Process

Article 4 describes the procedures for applying to BREA for license, including additional documents required, such as fingerprint cards, logs of appraisal experience, transcripts or course completion certificates, other course description material, and petitions for equivalency credit. This article also describes the Trainee License, the procedures for appraisers licensed in another state, sets time limits for processing applications, and requires applicants to exercise due diligence in the completion of an application. Applications shall be valid for one year; this period cannot be extended. After one year the applicant must reapply including payment of fees and documentation. Applicants shall have an appropriate knowledge of the English language, including reading, writing and spelling, and of arithmetical computations common to real estate and appraisal practices. Applicants must submit on forms REA 3001, 3002, 3003, and 3004. These forms are revised from time to time, so be sure to check the BREA website for the most current version of each.

Requirements that Exceed AQB

As indicated on the previous page, an applicant needs 150 hours of education to obtain an Appraisal Trainee credential in California. This requirement exceeds the AQB minimum requirement for Appraiser Trainees, which specifies only 75 hours of education. This California-specific requirement exceeds the AQB minimum requirements for licensure as a Trainee Appraiser. California also requires applicants to complete a BREA-approved course on state and federal laws and regulations. This is a state-specific requirement. The AQB and California requirements for Supervisory Appraiser and Appraiser Trainee are contrasted on the next page.

In 2013, the name of the California Office of Real Estate Appraisers was changed to what? Consumer Financial Protection Bureau Appraiser Licensing and Certification Agency Bureau of Real Estate Appraisers Appraisal Enforcement Agency of California

Bureau of Real Estate Appraisers

California Experience Log

California BREA has its own specific log form (identified as REA 3004) which is available on the BREA website. The Bureau maintains a specific page with a clickable list of all the required forms, which can be accessed here: http://www.brea.ca.gov/html/AllForms.shtml You will note that there is even an "Example Log of Appraisal Experience" which shows an example of a partially completed experience log. This example can be accessed directly here: https://brea.ca.gov/forms/REA_3004.pdf

Trainee License To obtain a trainee license in California, an applicant must

Complete basic education which covers minimum topics and hours required by AQB for a residential level license (currently this is 150 hours, in specified topics) Complete 15-hour National USPAP Course or its equivalent Education must have been completed within the five-year period immediately preceding the application Formerly, an applicant for a trainee license was required to pass the National Uniform Appraiser License examination. However, as of October 1, 2016, the requirement for a trainee applicant to pass the exam was eliminated. Trainees must work under the direct technical supervision of a certified-level appraiser in good standing. Trainees must maintain an appraisal log, and must maintain copies of appraisal reports which appear on the log. Trainees are also required to meet continuing education requirements.

An applicant for an appraiser credential is sending her appraisal work samples to BREA. These samples must be: Appropriately redacted so that confidential information is protected Signed in blue ink with a watermark to verify authenticity In compliance with the USPAP requirement for a Restricted Appraisal Report Exact, non-redacted copies of the report delivered to the client

Exact, non-redacted copies of the report delivered to the client

Passing the Exam

Exams are scored upon completion and applicants should receive their results immediately after completing the exam. Applicants who pass the exam will receive proof of successful completion of the exam from the test provider. The applicant will then forward the original license exam score sheet and a completed Application for Issuance of a License form (REA 3008) to BREA. Applicants who fail the exam will need to contact the exam provider to reschedule another exam attempt.

Which of these would be an example of failure to exercise due diligence by an applicant for an appraiser credential? Failure to pass the examination within 1 year of the application date Submitting an experience log that lists fewer than 400 hours of appraisal review experience Failure to respond to a written request for additional information within 60 days Submitting a complete application to BREA after previous two attempts

Failure to respond to a written request for additional information within 60 days

As of October 1, 2016, an applicant for a Trainee Appraiser credential in California is required to pass: The FHA Roster Appraiser examination The National Uniform Appraiser License examination Tenth-grade English and mathematics No examination

No examination

What does Section 11320 states: (Scope of Practice)

No person shall engage in federally related real estate activity governed by this part or assume or use the title of or any title designation or abbreviation as a licensed appraiser in this state without first obtaining a license as defined in Section 11302." The law goes on to state that appraising without a license is punishable by a fine up to $10,000 and/or one year in prison.

Where would an applicant for an appraisal credential find an example of a partially completed appraisal experience log (form REA 3004)? On the ASC website In HUD Handbook 4150.2 In a White Paper published by the AQB On the BREA website

On the BREA website

A Trainee Appraiser wishes to become certified, and submits an application to BREA. How long is this application valid? Six months One year Two years Indefinitely

One year

Under California regulations, a supervising appraiser must:

Personally inspect each property with the trainee until the trainee is competent to make unsupervised inspections for the type of property being appraised Review the trainee's appraisal report Accept responsibility for the report by signing and certifying that the report is in compliance with USPAP Review and initial each page of the trainee's Log of Experience Form REA 3004 and verify under penalty of perjury that the work was completed under his or her supervision Maintain records of the trainee's appraisals in accordance with USPAP Supervising appraisers must be certified-level appraisers (e.g., Certified Residential - AR, or Certified General - AG), and must be in good standing with BREA. A supervising appraiser may not supervise more than three trainees at one time.

What is the law that created licensing and certification for appraisers in California

Real Estate Appraisers' Licensing and Certification Law.

Supervisory and Trainee Requirements These AQB minimum requirements for Trainees and Supervisory Appraisers are contrasted in the charts below. Trainee Appraisers

Requirement AQB Minimum/ California Education 75 hours/150 hours Experience No requirement/ No requirement Exam No requirement/ No requirement Inspect unsupervised? After supervisor deems competent/ After supervisor deems competent

what does Section 11321 state? (Signature and Title)

Section 11321 states that no person other than a licensee may assume or use any title, designation or abbreviation likely to create the impression of state licensure as a real estate appraiser. So a Trainee Appraiser needs to be careful to avoid any action that could mislead someone into thinking that the Trainee Appraiser is actually licensed or certified as an appraiser. This section also states "No person other than a licensee may sign an appraisal. A trainee licensed pursuant to Section 11327 may sign an appraisal if it is also signed by a licensee." So this means a Trainee Appraiser in California may sign an appraisal report, as long as the report is also signed by the Supervisory Appraiser.

Acceptable Experience

Section 3542 establishes acceptable categories of experience. These categories include Fee and staff appraisal Ad valorem tax appraisal, including mass appraisal Appraisal review, field or desk Appraisal analysis Real Estate consulting Highest and best use analysis Feasibility analysis/study Teaching of appraisal courses (no longer acceptable for experience after December 31, 1997) Setting forth opinions of value of real property for tax purposes Assisting in the preparation of appraisals Real estate valuation as a real estate lending officer or real estate broker All of these categories of experience are permissible under California regulations. These differing activities do have common elements. If they are to be acceptable as experience toward licensure or certification: They must be written documents; and They must conform to the applicable USPAP requirements for the type of service provided. Only appraisals performed for a business purpose (e.g. loans, litigation, etc.) may be credited for purposes of meeting the minimum experience requirements except that experience gained through case studies and practicum courses that are approved by the AQB Course Approval Program may be credited for no more than 50 percent of the total experience requirement.

Documentation of Experience

Section 3563 of the California BREA regulations addresses evidence of experience qualifications. Documentation of work experience shall be made available to the Office by the applicant upon request. Documentation of work experience shall include the following: Log of Appraisal Experience Form REA 3004 Experience Log Summary Form REA 3003 Samples of completed appraisals selected by the Bureau from applicant's Log of Appraisal Experience Form REA 3004. Samples of completed appraisals submitted to verify work experience are subject to the confidentiality provisions of USPAP. Applicants who wish to have their work samples returned to them by BREA must submit a written request, along with a self-addressed envelope of sufficient size and with adequate postage.

Work Samples

The BREA Licensing Requirements Handbook establishes requirements for work samples. Each work sample requested by BREA must be an exact, non-redacted copy of the report delivered to the client, and the report must be USPAP-compliant. If any of the work samples are found to not conform to USPAP, BREA may reject the experience. BREA also reserves the right to request additional work samples and/or complete workfiles. Restricted Appraisal Reports and Restricted Use Appraisal Reports are not eligible for experience credit.

According to the California appraiser licensing law, who is required to promulgate requirements for licensure and discipline of real estate appraisers? The Division of Real Estate The Bureau of Real Estate Appraisers The Appraisal Subcommittee Appraisal Management Companies

The Bureau of Real Estate Appraisers

You are reading California appraisal regulations and you see a reference to "the Office". What does this term refer to? The Appraisal Subcommittee The Bureau of Real Estate Appraisers The Office of Federal Housing Enterprise Oversight The Appraisal Practices Board

The Bureau of Real Estate Appraisers

Under the California appraiser licensing law, who is required to adopt regulations governing the process and procedure of applying for a license as Trainee Appraiser? The Director of BREA The Governor The Appraisal Subcommittee The Bureau of Consumer Financial Protection

The Director of BREA

Overview of Procedures

The Licensing Requirements Handbook provides an overview of the basic procedures for real estate appraiser licensing, as follows: The basic procedures for real estate appraiser licensing are: Submission of application, including all of the following: Application and background review fees Education Experience Information for criminal records check Proof of legal presence in the United States Examination process (Initial and Upgrade only): Admission to Examination Letter sent after BREA approves application Scheduling of the examination by applicant Payment of examination fee by applicant (paid directly to exam provider) Submission of license issuance request, including all of the following: Application for Issuance of a License (REA 3008) Original examination score results showing successful completion Work samples that BREA requested for review Delinquent court-ordered child support review Each of these processes and their requirements are described in this handbook. For questions or clarification call (916) 552-9000.

Initial Application

The Licensing Requirements Handbook states that to apply for an initial license, applicants must complete and submit all of the following: Initial Application (REA 3001) Basic Education Attachment (REA 3002) along with copies of official transcripts and/or course completion certificates Log of Appraisal Experience (REA 3004) along with certifications on page 2 of the form (this is not required for Trainee level) Experience Log Summary (REA 3003) which summarizes information from the Log of Appraisal Experience (this is not required for Trainee level) Statement of Citizenship, Alienage, and Immigration Status for State Public Benefits (REA 3030) along with proof of legal presence in the U.S. Request for Live Scan Service (BCII 8016) or if the applicant lives out of state, two FD-258 completed finger print cards Consent to Service of Process (REA 3006) if the applicant's physical address is outside of California All appropriate fees as required Note that the Consent to Service of Process form (REA 3006) is not required if the applicant's address is in California. End of Page

In California, who has the power to amend the Real Estate Appraisers' Licensing and Certification Law? The governor The Bureau of Real Estate Appraisers The legislature The Appraisal Subcommittee

The legislature

Dont forget name change

The original law created the Office of Real Estate Appraisers; however the name of this agency was subsequently changed to the Bureau of Real Estate Appraisers (BREA) effective July 1, 2013. There are still existing references to "the Office" and "OREA" within California laws and regulations. Wherever "Office of Real Estate Appraisers" or "Office" appears, it refers to the "Bureau of Real Estate Appraisers."

Education

The verification required by BREA for qualifying education courses shall include the following information: Name of school Name of student Name of course Date course was taken Course grade or other evidence of satisfactory completion An applicant is required to submit course description documentation upon request by BREA. Course description information may include a copy of the course syllabus, a course outline, course table of contents, and/or letters of verification from instructors. Challenge courses are not acceptable to meet basic education requirements. An applicant may submit, on Form 3005, a petition for equivalency credit for those courses that have not been accredited pursuant to Article 9 of these regulations.

In order to obtain a Trainee License in California, an individual must demonstrate a minimum of _____ hours of appraisal experience. 1,000 1,200 2,000 There is no experience requirement for Trainee Appraisers

There is no experience requirement for Trainee Appraisers

Processing Application

Within 90 days of receipt of an application for initial licensure or renewal, BREA must provide written notice to the applicant that the application is complete or deficient. If the application is deficient, the notice must describe what information is deficient and/or inadequate. Within 90 days of receipt of a complete application, BREA must issue or deny the requested license or accreditation. An application shall be denied whenever the applicant does not exercise due diligence in completion of an application or examination. Examples of failure to exercise due diligence that appear in the regulations include: Failure to appear for an examination within 1 year of the initial admit letter Failure to complete an application within 1 year of submission to the office Failure to respond to a written request for additional information within 60 days If an application is denied due to the applicant's failure to meet certain minimum requirements, the applicant may have certain rights to have the decision reviewed in a hearing. These rights are contained in California laws and regulations and should be reviewed by an applicant who finds himself or herself in this situation.

A licensed Trainee Appraiser wishes to sign an appraisal report. Is this permitted in California? Yes, a Trainee Appraiser may be the sole signatory No, a Trainee Appraiser is never permitted to sign an appraisal report Yes, as long as the report is also signed by the Supervisory Appraiser No, but an unlicensed person may sign it in the Trainee Appraiser's place

Yes, as long as the report is also signed by the Supervisory Appraiser

Are experience hours obtained through the completion of a "practicum course" acceptable towards appraiser licensing in California? Yes, an individual may obtain all of his/her experience hours in this manner No, this type of experience is not acceptable Yes, if the course is approved by the AQB No, this course would only count as education hours, not experience

Yes, if the course is approved by the AQB Only appraisals performed for a business purpose (e.g. loans, litigation, etc.) may be credited for purposes of meeting the minimum experience requirements except that experience gained through case studies and practicum courses that are approved by the AQB Course Approval Program may be credited for no more than 50 percent of the total experience requirement.

What did California's Real Estate Appraisers' Licensing and Certification Law, which was passed in 1990 create?

created the Office of Real Estate Appraisers (OREA) within Department of Consumer Affairs, which in turn is under the umbrella of the Business, Transportation, and Housing Agency.

What does Section 11314 of the licensing law state?

states that the office (BREA) is required to promulgate requirements for licensure and discipline of real estate appraisers and comply in all respects with Title XI of the Financial Institutions Reform, Recover, and Enforcement Act of 1989. This section goes on to state "Requirements for each level of licensure shall, at a minimum, meet the criteria established by the Appraiser Qualifications Board of the Appraisal Foundation." This means that the AQB Real Property Appraiser Qualification Criteria is established as a minimum for licensing and certification. Hence, the Bureau is permitted to establish requirements that exceed these minimum qualifications.