PROPOSED RULEMAKING
STATE BOARD OF CERTIFIED
REAL ESTATE APPRAISERS
[ 49 PA. CODE CH. 36 ]
Federally-Mandated Revisions
[48 Pa.B. 3955]
[Saturday, July 7, 2018]The State Board of Certified Real Estate Appraisers (Board) proposes to amend Chapter 36 to read as set forth in Annex A.
Effective Date
This proposed rulemaking will be effective upon final-form publication in the Pennsylvania Bulletin.
Purpose
This proposed rulemaking would amend and clarify requirements regarding applications, initial education, experience, examinations, continuing education and supervisory appraiser experience to be consistent with Federal criteria that are binding on the Board under Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (Pub.L. No. 101-73, 103 Stat. 183) (12 U.S.C.A. §§ 3331—3356).
Statutory Authority
Section 5(1) of the Real Estate Appraisers Certification Act (act) (63 P.S. § 457.5(1)) authorizes the Board to pass upon the qualifications and fitness of applicants for certification or licensure and to adopt and revise rules and regulations requiring applicants for certification to pass examinations regarding qualifications for certification. Section 5(2) of the act authorizes the Board to adopt and revise rules and regulations as may be necessary to carry out the act. Under section 6 of the act (63 P.S. § 457.6), the Board is authorized to issue certificates to real estate appraisers who meet the minimum education and experience criteria established by the Appraiser Qualifications Board (AQB) of The Appraisal Foundation under FIRREA. The AQB publication establishing the minimum education, experience, examination and continuing education requirements for real property appraisers is The Real Property Appraiser Qualification Criteria (AQB Qualification Criteria).
The act of July 7, 2016 (P.L. 474, No. 72) (Act 72) amended the act to implement Federally-mandated minimum qualification criteria, including minimum requirements for licensed appraiser trainees. Additionally, section 4 of Act 72 added section 10(b.2) of the act (63 P.S. § 457.10(b.2), which provides that licensed appraiser trainees are subject to the same continuing education requirements for licensure renewal as residential and general appraisers. Thus, licensed appraiser trainees shall comply with the AQB Qualification Criteria for continuing education.
Description of this Proposed Rulemaking
This proposed rulemaking would incorporate the mandated Federal amendments, including updates for college education, supervisory appraiser criteria and continuing education for licensed appraiser trainees. This proposed rulemaking would also require applicants to submit an official criminal history record information check.
Historically, the Board has promulgated regulations by adopting the AQB Qualification Criteria almost verbatim in the regulations. The Board has determined that having two separate standards (the AQB Qualification Criteria and the regulations that restate the minimum qualification criteria) causes confusion among licensees and is difficult for the Board to administer. When Federal law changes or the AQB evaluates and modifies its minimum qualification criteria, the regulations are not immediately reflective of the new AQB Qualification Criteria because the Board must amend its regulations. In January 2015, the AQB updated its minimum qualification criteria, which included changes in education criteria. Shortly after the new criteria were adopted, the AQB began entertaining potential areas of change to the criteria. After issuing a concept paper, having a public hearing and issuing several versions of exposure drafts proposing changes to the criteria, the AQB modified again the minimum criteria for certification of real property appraisers, which included changes in education and experience criteria that were effective May 1, 2018. Thus, this proposed rulemaking implements the May 1, 2018, minimum qualification criteria. Given the foregoing, the Board determined that it is more efficient and prudent to adopt and incorporate the AQB Qualification Criteria by reference, when practicable. By adopting and incorporating the AQB Qualification Criteria by reference, the Board will eliminate the need to amend its regulations when the AQB updates or modifies the minimum qualification criteria. When the Board wishes to maintain or propose regulations that are more stringent than the Federal minimum standards, this proposed rulemaking would adopt the AQB Qualification Criteria by reference, but would also maintain or propose the Board's more stringent standards.
The Board has incorporated another Federal standard by reference in the same way the Board proposes to adopt the AQB Qualification Criteria in this proposed rulemaking. In § 36.51 (relating to compliance with USPAP), the Board adopted by reference The Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards Board of The Appraisal Foundation.
The Board will take steps to ensure that its licensee population has easy access to the AQB Qualification Criteria. In addition to providing The Appraisal Foundation web site in this proposed rulemaking, the Board will place a link on its web site to The Appraisal Foundation and the AQB Qualification Criteria.
§ 36.1. Definitions
The Board proposes six amendments to § 36.1 (relating to definitions). The Board proposes amendments to the definition of ''AQB''—to provide additional information regarding the role of the AQB in establishing the minimum education, experience, examination and continuing education requirements for appraisers. The Board proposes to add a definition of ''AQB Qualification Criteria'' because the Board proposes adopting this criteria by reference throughout this proposed rulemaking. The Board also proposes to add a definition of ''ASC.'' The Board proposes an amendment to the definition of ''Board'' to clarify that the Board operates within the Bureau of Professional and Occupational Affairs in the Department of State. The Board proposes to add ''[e]xcept as otherwise required by the AQB Qualification Criteria'' to the definition of ''distance education.'' Because FIRREA requires real estate appraisers and licensed appraiser trainees to adhere to the AQB Qualification Criteria for distance education, the Board proposes to add this phrase to ensure that licensees understand that they are also required to adhere to the AQB Qualification Criteria in addition to the act and Chapter 36, Subchapter A (relating to general provisions).
The Board also proposes to add a definition of ''in good standing'' because proposed amendments to § 36.54 (relating to duties of supervisory appraiser) include a requirement that the supervisor be in good standing for at least 3 years immediately preceding the supervisory appraiser's notification to the Board. For that reason, the Board finds it necessary to clarify what it means to be ''in good standing.''
§ 36.2. Application process
Application form
The Board proposes to reformat and make three amendments to § 36.2(a) (relating to application process) to clarify the Board's requirements for applications. The Board proposes to amend § 36.2(a) by requiring an official criminal history record information check from the State Police or other state agency for every state in which the candidate has lived or worked during the past 5 years. Under section 6(c) of the act, the Board is required to determine whether all applicants are of ''good moral character.'' Under section 11(a) of the act (63 P.S. § 457.11(a)), the Board is authorized to deny an application for certification or licensure, or limit or restrict a license or certification for being convicted of or pleading guilty to crimes substantially related to the qualifications, functions and duties of a person developing real property appraisals and communicating real property appraisal to others. Under section 5(11) of the act, to the extent required by standards and regulations for the qualifications of appraisers promulgated under FIRREA, the Board may consider criminal history record information of convictions and arrests that do not result in a conviction. Additionally, section 6(c)(3) the act requires applicants for certification and licensure to satisfy requirements for dissemination to the Board of criminal history record information required by the AQB Qualification Criteria.
Effective January 1, 2017, the AQB Qualification Criteria requires background checks for all applicants for a real property appraiser credential to determine whether the applicants possess a background that would call into question public trust. In implementing the required background check, the Board is required to obtain sufficient information and documentation to determine applicants' fitness for licensure or certification. Under the 2017 amendments to the AQB Qualification Criteria, applicants are not eligible for a real property appraiser credential if, during at least the 5-year period immediately preceding the date of the application for licensing or certification, the applicant has been convicted of or pled guilty or nolo contendere to a crime that would call into question the applicant's fitness for licensure. Thus, it is imperative under the act and the Federal standards to obtain criminal history record information for applicants to determine criminal history, good moral character and fitness for licensure or certification. The Board determined that requiring the official criminal history record information check will enable the Board to meet its State and Federal obligations.
The Board proposes to amend subsection (a) by adding a provision that applicants shall satisfy all the requirements for licensure or certification, including the requirements set by the AQB Qualification Criteria. Including this provision in the application process will put applicants on notice that applications must contain sufficient information to show compliance with all of the requirements for licensure or certification.
The Board further proposes to amend subsection (a) by deleting the requirement to submit notarized applications. Until recently, the notarization requirement was required under section 6(c) of the act. Act 72 amended the act and this requirement was deleted.
Application fee
The Board proposes to reformat and make one amendment to § 36.2(b) to clarify application procedures. The Board proposed to add electronic payment as an acceptable method for payment of application fees. The Bureau of Professional and Occupational Affairs has the technical capability to accept electronic payments and encourages licensees to use the electronic payment option.
Approved applications
The Board proposes to reformat and amend § 36.2(c)(1) to clarify the effect of approval of the application. Proposed paragraph (2) clarifies that an approval by the Board of an application for licensed appraiser trainee, certified residential real estate appraiser and certified general real estate appraiser under section 7 of the act (63 P.S. § 457.7), pertaining to reciprocity, shall constitute approval to issue a license or certificate to the applicant.
Disapproved applications
The Board proposes to reformat and make minor amendments to § 36.2(d) to clarify procedures regarding disapproved applications.
Compliance with new requirements
The Board proposes throughout this proposed rulemaking to incorporate the AQB Qualification Criteria by reference with respect to applicants for certification as residential real estate appraisers, certification as general real estate appraisers and licensure as appraiser trainees. Additionally, § 36.2(e) currently requires compliance with any increased education or experience requirements that take effect between the applicant's filing of an initial application and the applicant's passing the certification examination, except as otherwise provided by §§ 36.11 and 36.12 (relating to qualifications for certification as residential real estate appraiser; and qualifications for certification as general real estate appraiser). For consistency and clarification, the Board proposes to amend § 36.2(e) to clarify that applicants for appraiser trainees shall comply with any increased education requirement, except as otherwise provided in § 36.12a (relating to qualifications for licensure as appraiser trainee) or as required by the AQB Qualification Criteria. The Board also proposes to reformat § 36.2(e) for clarity.
§ 36.3. Examinations
The Board proposes to make minor amendments to this section to clarify the required examinations. The Board proposes to delete the name of the examination and proposes a more general approach, without a specific name of an examination. Thus, if the name of the examination changes in the future, the Board will not have to make further amendments. The current and proposed regulation require the AQB-approved National examination for certification. Therefore, the proposed amendment does not substantively change the examination requirements. Additionally, the Board proposes to delete the web site address. The web site address is readily available and accessible to licensees.
§ 36.11. Qualifications for certification as residential real estate appraiser
Overview
The Board proposes to reformat and amend § 36.11(a) to clarify the requirements for certification. The Board proposes to amend subsection (a) by specifically requiring that applicants for certification as a residential real estate appraiser satisfy all the requirements set by the AQB Qualification Criteria. The Board also proposes to delete the following sentence from § 36.11(a): ''Neither a real estate salesperson's license nor a real estate broker's license issued under the Real Estate Licensing and Registration Act (63 P.S. § 455.101—455.902) is a prerequisite to certification as a residential real estate appraiser.'' The Board proposes to delete this sentence because it is not necessary to indicate that other licenses are not a prerequisite to licensure. The act and the regulations clearly set forth what criteria are required for certification as a residential real estate appraiser. Thus, this information is superfluous.
Appraisal classroom hours
The Board proposes to amend § 36.11(b) to require applicants for certification as a residential real estate appraiser to submit evidence showing completion of the classroom hours required by the AQB as of the date of the application. Because the current regulation, which requires 200 classroom hours, is the same requirement as the AQB Qualification Criteria for classroom hours, this proposed rulemaking does not make a substantive change to the classroom hours required for certification. The Board's purpose in proposing this amendment is to incorporate the Federally-mandated minimum qualification criteria by reference. Incorporating the AQB Qualification Criteria by reference will alleviate future need to amend its regulations when the AQB modifies or updates its minimum qualification criteria regarding classroom hours. The Board also proposes deletion of the provision that provides an exception for applicants who submitted applications prior to January 1, 2013, because this date has passed, and applicants are no longer eligible to apply for certification under this provision.
Length of classroom hour requirement
The Board proposes to amend the heading of § 36.11(b)(1) from ''Length of classroom hour requirement'' to ''Length of classroom hour and courses; course examination requirement'' to more accurately describe the scope of this paragraph. The Board proposes to delete the current specific requirements regarding classroom hours (50 minutes of each 60-minute segment) and courses (length of course is at least 15 hours), which are the current AQB requirements. The Board proposes to amend this paragraph by incorporating the AQB Qualification Criteria by reference. This proposed amendment does not substantively change the requirements of the current regulation. Incorporating the AQB Qualification Criteria by reference will alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria regarding classroom hour or course examination requirements. Additionally, the Board proposes to reformat this paragraph to clarify the requirements for classroom hours and course examinations.
Providers of appraisal courses
The Board proposes to amend § 36.11(b)(2) to specifically require that credit for the classroom hour requirement may be obtained only from providers in the AQB Qualification Criteria. This proposed amendment does not change the current regulations. The Board proposes to amend this paragraph by incorporating the AQB Qualification Criteria by reference. Incorporating the AQB Qualification Criteria by reference will alleviate future need to amend its regulations when the AQB modifies or updates its minimum qualification criteria.
Distance education
The Board proposes to amend § 36.11(b)(3) by specifically requiring compliance with the requirements in the AQB Qualification Criteria. The current regulations comport with the minimum qualification criteria set by the AQB. Therefore, the proposed amendment does not substantively change the current regulation. The Board is proposing to amend this paragraph by incorporating the AQB Qualification Criteria by reference to alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria.
Content of appraisal education
The Board proposes to delete § 36.11(c)(1), which sets forth the content of appraisal education required for applicants subject to the 120 classroom hour requirement. The Board proposes to delete this paragraph because applicants are no longer eligible to apply for certification under this provision.
The Board also proposes to amend subsection (c) by specifically requiring compliance with the qualifying education requirements in the AQB Qualification Criteria and as specified in the Required Core Curriculum of the AQB Qualification Criteria. Additionally, the Board proposes to adopt and incorporate Guide Note 1 (AQB Guidance for Required Core Curriculum Content) (Required Core Curriculum) of the AQB Qualification Criteria by reference. The Required Core Curriculum is Federally-mandated curriculum for the content of appraisal education. While AQB Guide Note 1 is not binding on the Board, in promulgating regulations for the content of appraisal education, the Board has in the past adopted verbatim the Required Core Curriculum and Guide Note 1. The current regulations comport with Required Core Curriculum. However, the AQB added additional categories to Guide Note 1. Because the Board is required to adhere to and enforce the Required Core Curriculum and has determined that Guide Note 1 provides the basis for the required content of appraisal education, the Board proposes to adopt and incorporate these Federal standards by reference and proposes to delete the verbatim text in the current regulations. Incorporating the AQB Qualification Criteria by reference will alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria.
Postsecondary education
The Board proposes to amend § 36.11(d) by specifically requiring compliance with the postsecondary education requirements set by the AQB Qualification Criteria. The current regulations, which require an associate's degree or completion of 21 semester credit hours in certain college-level subjects, are noncompliant with Federal requirements and must be amended to reflect the AQB Qualification Criteria, which were adopted on May 1, 2018. Under the May 1, 2018, AQB Qualification Criteria, applicants have the following six educational options to satisfy the postsecondary education requirements, including: option 1) a bachelor's degree from an accredited college or university; option 2) an associate's degree in a field of study related to business administration, accounting, finance, economics or real estate; option 3) successful completion of 30 semester hours of college-level course that cover each of the following specific topic areas and hours—English composition; microeconomics; macroeconomics; finance; algebra, geometry or higher math; statistics; computer science; business law or real estate law; and two elective courses in any of the previously listed topics, or in accounting, geography, agricultural economics, business management or real estate (3 hours each); option 4) successful completion of at least 30 hours of College Level Examination Program® examinations that cover each of the specific topic areas in option 3; option 5) any combination of options 3 and 4 that includes all of the topics identified; and option 6) no college-level education required. This option applies to appraisers who have held a licensed residential credential for a minimum of 5 years and have no record of adverse, final and nonappealable disciplinary action affecting the licensed residential appraiser's legal eligibility to engage in appraisal practice within the 5 years immediately preceding the date of application for a certified residential real estate appraiser credential.
Because the Board is required to adhere to and enforce the AQB Qualification Criteria postsecondary education requirements, the Board proposes to adopt and incorporate the Federal standards by reference. The Board's purpose in proposing this amendment is to become compliant with Federal standards and, in the future, expeditiously effectuate Federally-mandated amendments with regard to the AQB Qualification Criteria. Additionally, the Board wishes to alleviate future need to amend the regulations when the AQB updates its minimum qualification criteria regarding the postsecondary education requirements. The Board also proposes to delete § 36.11(d)(2) because applicants are no longer eligible to apply for certification under this provision.
Experience
The Board proposes to amend § 36.11(e)(1) by incorporating the AQB Qualification Criteria for experience by reference. The Board's purpose in proposing this amendment is to ensure compliance with Federal standards. This proposed amendment will expeditiously effectuate Federally-mandated amendments with regard to the AQB Qualification Criteria. Additionally, the Board wishes to alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria regarding experience requirements.
Incorporating the Federal standards into the regulations changes the experience requirements for the certified residential real estate appraiser credential. For the certified residential real estate appraiser credential, the proposed rulemaking would change the required hours of experience from ''2,500 hours of acceptable appraisal experience during a period of at least 24 months'' to 1,500 hours of experience in no fewer than 12 months. In deciding to adopt the minimum qualification criteria over the current regulations, which reflect a more stringent standard, the Board considered the National concerns about the appraisal profession, including shortages of appraisers and insufficient number of trainees entering the profession as well as concerns about the graying of the profession. In this Commonwealth, there are approximately 1,380 general real estate appraisers, 1,776 residential real estate appraisers and 359 licensed appraiser trainees. The median and average ages are as follows: general real estate appraiser (median: 58; average: 56.79); residential real estate appraiser (median: 57; average: 56.86); licensed appraiser trainee (median: 36; average: 38.49). Given the National concerns as well as the data for the licensing population in this Commonwealth, the Board believes that adopting the AQB Qualification Criteria is appropriate and prudent.
Although the Board proposes to adopt the AQB Qualification Criteria by reference, in § 36.11(e)(2) the Board proposes to maintain its current requirement that at least 50% of the total number of hours of the experience acquired by the applicant shall be in the actual preparation of real estate appraisal reports, which includes physical inspections of the interior and exterior of the subject properties. This provision is not an AQB requirement, but the Board continues to believe that appraisal report writing is a critical component of experience and thus has determined that this requirement is appropriate. In current § 36.11(e)(1), the number of hours is expressed in an actual figure (1,250 hours), which represents 50% of the total number of the current experience hours. In the proposed rulemaking, the Board proposes using a percentage figure (50%) instead of a specific figure based upon the current number of required experience hours. The Board's adoption of the AQB Qualification Criteria for experience (from 2,500 hours to 1,500 hours) will change the number of hours in actual preparation of real estate appraisal reports from 1,250 to 750 hours. The Board believes changing to a percentage is prudent because the AQB periodically amends the minimum qualification criteria. While the AQB recently change experience hours on May 1, 2018, there is ongoing discussion within the profession regarding the appropriate number of experience hours. Proposed to amend the regulations to a percentage will alleviate the need to amend the regulations in the event the AQB Qualification Criteria changes in this regard.
The Board proposes to amend § 36.11(e)(2) by renumbering it to § 36.11(e)(3) and by making minor amendments to the second sentence of this paragraph for clarity. The Board also proposes to add an additional requirement. This provision would make the Commonwealth more stringent than the AQB Qualification Criteria and would require applicants for residential real estate appraisers to possess licensure as an appraiser trainee to obtain experience credit. The Board proposes this amendment because it wants to ensure that the experience credit obtained by applicants is reflective of current appraisal standards and that applicants have learned basic appraisal principles and procedures as well as USPAP prior to obtaining experience. Additionally, requiring licensure as an appraiser trainee prior to obtaining experience will provide more mentoring and training of future valuation professionals. The Board proposes to delay the implementation until January 1, 2020, to give sufficient notice to applicants who may wish to use experience credit obtained prior to becoming a licensed appraiser trainee.
The acceptable categories of appraisal experience are included in proposed paragraph (4). The AQB Qualification Criteria for experience is less specific than the regulations. Although the current and proposed regulations incorporate the existing AQB Qualification Criteria, the Board determined that the acceptable categories of appraisal experience in the current regulation are instructive and provide additional guidance to applicants. Because the categories of experience are consistent with the AQB requirements, the Board determined it was not necessary or appropriate to delete these categories. The Board also proposes to make minor amendments to § 36.11(e)(4)(ii) for clarification. The Board proposes to amend the reference from ''appraiser'' to ''applicant'' because ad valorem tax appraisals do not have to be performed by an appraiser.
§ 36.12. Qualifications for certification as general real estate appraiser
Overview
The Board proposes to amend and reformat § 36.12(a) to clarify the requirements for certification. The Board proposes to amend subsection (a) by specifically requiring that applicants for certification as a general real estate appraiser satisfy all the requirements in the AQB Qualification Criteria. The Board also proposes to delete the following sentence from subsection (a): ''Neither a real estate salesperson's license nor a real estate broker's license issued under the Real Estate Licensing and Registration Act (63 P.S. §§ 455.101—455.902) is a prerequisite to certification as a general real estate appraiser.'' The Board proposes to delete this sentence because it is not necessary to indicate that other licenses are not a prerequisite to licensure. The act and the regulations clearly set forth what criteria are required for certification as a general real estate appraiser. Thus, this information is superfluous.
Appraisal classroom hours
The Board proposes to amend § 36.12(b) to require applicants for certification as a general real estate appraiser to submit evidence showing completion of the classroom hours required by the AQB as of the date of the application. Because the current regulation, which requires 300 classroom hours, is the same requirement as the AQB Qualification Criteria for classroom hours, the Board's proposed rulemaking does not make a substantive change to the classroom hours required for certification. The Board's purpose in proposing this amendment is to incorporate the Federally-mandated minimum qualification criteria by reference. Incorporating the AQB Qualification Criteria by reference will alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria regarding classroom hours. The Board also proposes to delete the provision that provides an exception for applicants who submitted applications prior to January 1, 2013, because this date has passed and applicants are no longer eligible to apply for certification under this provision.
Length of classroom hour requirement
The Board proposes to amend the heading of § 36.12(b)(1) from ''Length of classroom hour requirement'' to ''Length of classroom hour and courses; course examination requirement'' to more accurately describe the scope of this paragraph. The Board proposes to delete the current specific requirements regarding classroom hours (50 minutes of each 60-minute segment) and courses (length of course is at least 15 hours), which are the current AQB requirements. The Board proposes to amend this paragraph to specifically reference and require compliance with the AQB Qualification Criteria. This proposed amendment does not substantively change the requirements of the current regulation. Incorporating the AQB Qualification Criteria by reference will alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria regarding classroom hour or course examination requirements. Additionally, the Board proposes to reformat this paragraph to clarify the requirements for classroom hours and course examinations.
Providers of appraisal courses
The Board proposes to amend § 36.12(b)(2) to specifically require that credit for the classroom hour requirement may be obtained only from the providers in the AQB Qualification Criteria. This proposed amendment does not substantively change the current regulations. The Board proposes to amend this paragraph by incorporating the AQB Qualification Criteria by reference to alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria.
Distance education
The Board proposes to amend § 36.12(b)(3) by specifically requiring compliance with the requirements in the AQB Qualification Criteria. The current regulations comport with the minimum qualification criteria set by the AQB. Therefore, the proposed amendment does not substantively change the current regulation. The Board proposes to amend this paragraph by incorporating the AQB Qualification Criteria by reference to alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria.
Content of appraisal education
The Board proposes to delete § 36.12(c)(1), which sets forth the content of appraisal education required for applicants subject to the 180-classroom hour requirement. The Board proposes to delete this paragraph because applicants are no longer eligible to apply for certification under this provision.
The Board also proposes to amend § 36.12(c) by specifically requiring compliance with the qualifying education requirements in the AQB Qualification Criteria and as specified in the Required Core Curriculum of the AQB Qualification Criteria. Additionally, the Board proposes to adopt and incorporate by reference Guide Note 1 of the AQB Qualification Criteria. The Required Core Curriculum is Federally-mandated curriculum for the content of appraisal education. While the AQB Guide Note 1 is not binding on the Board, in promulgating regulations for the content of appraisal education, the Board has adopted verbatim the Required Core Curriculum and Guide Note 1. The current regulations comport with Required Core Curriculum. However, the AQB added additional categories to Guide Note 1. Because the Board is required to adhere to and enforce the Required Core Curriculum and has determined that Guide Note 1 provides the basis for the required content of appraisal education, the Board proposes to adopt and incorporate these Federal standards by reference and proposes to delete the verbatim text in the current regulations. Incorporating the AQB Qualification Criteria by reference will alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria.
Postsecondary education
The Board proposes to amend § 36.12(d) by specifically requiring compliance with the postsecondary education requirements in the AQB Qualification Criteria. The current regulations, which require a bachelor's degree or completion of 30 semester credit hours in certain college-level subjects, are noncompliant with Federal requirements and must be amended to require a bachelor's degree, or higher, from an accredited college or university. Because the Board is required to adhere to and enforce the postsecondary education requirements, the Board proposes to adopt and incorporate the AQB Qualification Criteria by reference. The Board's purpose in proposing this amendment is to become compliant with Federal standards and, in the future, expeditiously effectuate Federally-mandated amendments with regard to the AQB Qualification Criteria. Additionally, the Board wishes to alleviate future need to amend the regulations when the AQB updates its minimum qualification criteria regarding the postsecondary education requirements. The Board also proposes to delete § 36.12(d)(2) because applicants are no longer eligible to apply for certification under this paragraph.
Experience
The Board proposes to amend § 36.12(e) by incorporating the AQB Qualification Criteria for experience by reference. Incorporating the Federal standards into the regulations changes the experience requirement for the certified general real estate appraiser credential. The Board's purpose in proposing this amendment is to ensure compliance with Federal standards. This amendment will expeditiously effectuate Federally-mandated amendments with regard to the AQB Qualification Criteria. Additionally, the Board wishes to alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria regarding experience requirements.
For the certified general real estate appraiser, the proposed rulemaking will not change the number of hours of experience required (3,000). However, the time to complete the experience hours will change from ''in no fewer than 30 months'' to in no fewer than 18 months. In deciding to adopt the minimum qualification criteria over the current regulations, which reflect a more stringent standard, the Board considered the National concerns about the appraisal profession, including shortages of appraisers and insufficient number of trainees entering the profession as well as concerns about the graying of the profession. As noted previously, in this Commonwealth, there are approximately 1,380 general real estate appraisers, 1,776 residential real estate appraisers and 359 licensed appraiser trainees. The median and average ages are as follows: general real estate appraiser (median: 58; average: 56.79); residential real estate appraiser (median: 57; average: 56.86); licensed appraiser trainee (median: 36; average: 38.49). Given the National concerns as well as the data for this Commonwealth's licensing population, the Board believes that adopting the AQB Qualification Criteria is appropriate and prudent.
Although the Board proposes to adopt the AQB Qualification Criteria by reference, in § 36.12(e)(2) the Board proposes to maintain its current requirement that at least 1,500 hours of the experience acquired by the applicant shall be in the actual preparation of real estate appraisal reports, which includes physical inspections of the interior and exterior of the subject properties. This provision is not an AQB requirement, but the Board continues to believe that appraisal report writing is a critical component of experience and thus has determined that this requirement is appropriate. The Board requires a minimum of 1,500 hours in the preparation of appraisal reports, which is 50% of the total experience required, under current § 36.12(e)(1). In proposed § 36.12(e)(2), the Board proposes to amend the minimum number of hours from 1,500 hours to 50% of the total amount of experience hours required by the AQB Qualification Criteria. The proposed amendment does not substantively change the regulation because the 1,500 is based upon 50% of the current AQB Qualification Criteria, which requires 3,000 hours of experience. Using a percentage figure instead of a figure based upon the current number of required experience hours will prevent the Board from having to revise its regulations in the event the AQB changes its experience requirement. The Board believes this amendment is necessary because it will alleviate the need to amend the regulations when the AQB Qualification Criteria is amended.
The Board proposes to renumber current paragraph (2) to paragraph (3) and making minor amendments to the second sentence of this paragraph to clarify the regulation. The Board also proposes to add an additional requirement to proposed paragraph (3). This provision makes the Commonwealth more stringent than the AQB Qualification Criteria and will require applicants for general real estate appraisers to possess licensure as an appraiser trainee or certification as a residential real estate appraiser to obtain experience credit. The Board proposes this amendment because it wants to ensure that the experience credit obtained by applicants is reflective of current appraisal standards and that applicants have learned basic appraisal principles and procedures as well as USPAP prior to obtaining experience. Additionally, requiring licensure as an appraiser trainee prior to obtaining experience will provide more mentoring and training of future valuation professionals. The Board proposes to delay the implementation of this proposed amendment until January 1, 2020, to give sufficient notice to applicants who may wish to use experience credit obtained prior to becoming a licensed appraiser trainee.
The Board proposes to move the acceptable categories of appraisal experience to proposed § 36.12(e)(4). The AQB Qualification Criteria for experience is less specific than the regulations. Although the current regulation and the proposed rulemaking incorporate the existing AQB Qualification Criteria, the Board determined that the acceptable categories of appraisal experience in the current regulation are instructive and provide additional guidance to applicants. Because the categories of experience are consistent with the AQB requirements, the Board determined it was not necessary or appropriate to delete these categories.
The Board proposes to make minor amendments in § 36.12(e)(4)(ii) for clarification. The Board proposes to amend the reference from ''appraiser'' to ''applicant'' because ad valorem tax appraisals do not have to be performed by an appraiser.
§ 36.12a. Qualifications for licensure as appraiser trainee
Overview
The Board proposes to amend and reformat § 36.12a(a) to clarify the requirements for licensure. The Board proposes to amend § 36.12a(a) by specifically requiring that applicants for licensure as an appraiser trainee satisfy all the requirements in the AQB Qualification Criteria. The proposed amendment also adds the AQB requirement that an applicant shall complete a course that, at a minimum, complies with the specifications for course content established by the AQB, which is specifically oriented to the requirements and responsibilities of supervisory appraisers and licensed appraiser trainees. The Board also proposes to delete the following sentence from § 36.12a(a): ''Neither a real estate salesperson's license nor a real estate broker's license issued under the Real Estate Licensing and Registration Act (63 P.S. § 455.101—455.902) is a prerequisite for licensure as an appraiser trainee.'' The Board proposes to delete this sentence because it is not necessary to indicate that other licenses are not a prerequisite to licensure. The act and the regulations clearly set forth what criteria are required for certification as a general real estate appraiser. Thus, this information is superfluous.
Appraisal classroom hours
The Board proposes to amend § 36.12a(b) to require applicants for licensure as an appraiser trainee to submit evidence showing completion of the classroom hours required by the AQB Qualification Criteria. Because the current regulation, which requires 75 classroom hours, is the same requirement as the AQB Qualification Criteria for classroom hours, the proposed amendment does not make a substantive change to the classroom hours required for licensure. The Board's purpose in proposing this amendment is to expeditiously effectuate Federally-mandated amendments with regard to the AQB Qualification Criteria. Additionally, the Board wishes to alleviate future need to amend the regulations when the AQB updates its minimum qualification criteria regarding classroom hours. The Board also proposes to delete the provision that provides an exception for applicants who satisfied the education requirement for certification as a residential real estate appraiser that was in effect as of December 31, 2007, because applicants are no longer eligible to apply under this provision.
Content of appraisal education
The Board proposes to amend § 36.12a(b)(1) by specifically requiring compliance with the qualifying education requirements in the AQB Qualification Criteria and as specified in the Required Core Curriculum of the AQB Qualification Criteria. Additionally, the Board proposes to adopt and incorporate Guide Note 1 of the AQB Qualification Criteria by reference. The Required Core Curriculum is Federally-mandated curriculum for the content of appraisal education. While the AQB Guide Note 1 is not binding on the Board, in promulgating regulations for the content of appraisal education, the Board has in the past adopted verbatim the Required Core Curriculum and Guide Note 1. The current regulations comport with Required Core Curriculum. However, the AQB added additional categories to Guide Note 1. Because the Board is required to adhere to and enforce the Required Core Curriculum and has determined that Guide Note 1 provides the basis for the required content of appraisal education, the Board proposes to adopt and incorporate these Federal standards by reference and proposes to delete the verbatim text in the current regulations. Incorporating the AQB Qualification Criteria by reference will alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria.
Examination requirement; length of classroom hour
The Board proposes to amend the heading of § 36.12a(b)(2) from ''Examination requirement; length of classroom hour'' to ''Length of classroom hour and courses; course examination requirement'' to more accurately describe the scope of this paragraph. The Board proposes to delete the current specific requirement regarding classroom hours (50 minutes of each 60-minute segment), which is the current AQB requirement. The Board proposes to amend this paragraph to specifically reference and require compliance with the AQB Qualification Criteria. This proposed amendment does not substantively change the requirements of the current regulation. Incorporating the AQB Qualification Criteria by reference will alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria regarding classroom hour or course examination requirements. Additionally, the Board proposes to reformat this subsection to clarify the requirements for classroom hours and course examinations.
Providers of appraisal courses
The Board proposes to amend § 36.12a(b)(3) to specifically require that credit for the classroom hour requirement may be obtained only from providers in the AQB Qualification Criteria. This proposed amendment does not substantively change the current regulations. The Board proposes to amend this paragraph by incorporating the AQB Qualification Criteria by reference to alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria for providers of appraisal courses.
Distance education
The Board proposes to amend § 36.12a(b)(4) by specifically requiring compliance with the requirements set by the AQB. The current regulations comport with the AQB Qualification Criteria. Therefore, the proposed amendment does not substantively change the current regulation. The Board proposes to amend this paragraph by incorporating the AQB Qualification Criteria by reference to alleviate future need to amend the regulations when the AQB modifies or updates its minimum qualification criteria for distance education.
§ 36.13. Experience options for preparation of appraisal reports; experience logs
The Board proposes to amend § 36.13(b) (relating to experience options for preparation of appraisal reports; experience logs) by adding the date that appraisal assistants were required to obtain an appraiser trainee license, October 1, 2010, to clarify that only experience acquired as an assistant before October 1, 2010, can be counted towards experience. Additionally, the Board proposes to clarify that for experience acquired before October 1, 2010, an assistant to a certified general real estate appraiser or certified residential real estate appraiser shall comply with the experience requirements in the regulations. The Board also proposed to amend § 36.13(c) and (d) for clarity.
The Board proposes to add § 36.13(d)(5). This proposed paragraph requires a residential real estate appraiser and a general real estate appraiser to jointly maintain an appraisal experience log on forms provided by the Board. This is not an AQB requirement. However, the Board has historically instructed residential real estate appraisers to utilize the Board's experience logs when submitting experience to the Board. For licensed appraiser trainees, the AQB Qualification Criteria does require the trainee and the supervisory appraiser to jointly maintain an appraisal experience log. Therefore, the Board also proposes to add subsection (e) to require that licensed appraiser trainees to jointly maintain an appraisal experience log on forms provided by the Board. Proposed amendments to subsection (e) further require that appraisal experience logs comply with the AQB Qualification Criteria. The Board also proposes to amend the heading of § 36.13 from ''Experience options for preparation of appraisal reports'' to ''Experience options for preparation of appraisal reports; experience logs'' to more accurately describe the scope of this section.
§ 36.41. Continuing education requirement
The Board proposes to amend § 36.41(a) and (b) (relating to continuing education requirement) by adding licensed appraiser trainees to the continuing education requirement. Effective January 1, 2015, licensed appraiser trainees were required to comply with the AQB continuing education requirements. Although this is a new provision in the regulations, this is a current AQB requirement which the Board implemented effective January 1, 2015. The Board notified licensed appraiser trainees of this AQB requirement by letter on October 8, 2014, and notice on the Board's web site. Act 72 added section 10(b.2) to the act, which requires licensed appraiser trainees to complete the same continuing education requirements for licensure renewal as residential and general appraisers. Because the Board is required to adhere to and enforce the AQB Qualification Criteria regarding continuing education, the Board proposes to delete the verbatim AQB Qualification Criteria in the current regulation, and instead adopt and incorporate the AQB Qualification Criteria regarding continuing education by reference. The current regulations mirror the AQB's current standards except that the Board requires at least 2 hours of continuing education on the act, the Board's continuing education regulations and the policies of the Board. Therefore, the Board's proposed rulemaking incorporates the AQB Qualification Criteria for continuing education by reference, but also maintains the additional 2-hour continuing education requirement on the act, the Board's continuing education regulations and the policies of the Board. The Board's purpose in proposing this amendment is to become compliant with current Federal standards and, in the future, expeditiously effectuate Federally-mandated amendments with regard to the AQB Qualification Criteria.
§ 36.42. Subject matter and sources of continuing education
The Board proposes to amend the heading of § 36.42 from ''Continuing education subject matter'' to ''Subject matter and sources of continuing education'' to more accurately reflect the scope of this section. The Board proposes to amend subsection (a) by generally requiring continuing education to comply with the AQB Qualification Criteria. The Board proposes to delete language in subsection (b), regarding classroom hours, and delete subsection (e), regarding activities which may be granted credit, because those standards are contained in the AQB Qualification Criteria regarding continuing education requirements. The Board further proposes to amend subsection (b) to incorporate the acceptable continuing education subject matter in the AQB Qualification Criteria by reference. The Board is also making necessary amendments to cross-references due to the reorganization of the section. The Board's purpose in proposing this amendment is to expeditiously effectuate Federally-mandated amendments with regard to the AQB Qualification Criteria. Additionally, the Board wishes to alleviate future need to amend the regulations when the AQB updates its minimum qualification criteria on continuing education.
§ 36.43. Distance education
The Board proposes to amend § 36.43 (relating to distance education) by specifically requiring compliance with the requirements in the AQB Qualification Criteria. Because the current regulations comport with the AQB Qualification Criteria, the proposed amendment does not substantively change the current regulation. The Board's purpose in proposing this amendment is to expeditiously effectuate Federally-mandated amendments with regard to the AQB Qualification Criteria. Additionally, the Board wishes to alleviate future need to amend the regulations when the AQB updates its minimum qualification criteria on distance education courses for continuing education.
§ 36.54. Duties of supervisory appraiser
The Board proposes to amend § 36.54(b) by specifically requiring compliance with the requirements in the AQB Qualification Criteria. The Board's purpose in proposing this amendment is to expeditiously effectuate Federally-mandated amendments with regard to the AQB Qualification Criteria. Unlike most of the Board's proposed amendments, this proposed amendment incorporates by reference the AQB Qualification Criteria and also sets forth the current AQB Qualification Criteria within the proposed rulemaking. The new AQB Qualification Criteria are incorporated in proposed § 36.54(b)(2), (5), (5)(ii), (6), (7) and (12). The Board has drafted the proposed rulemaking in this fashion because the Board has current regulations that are consistent with but not incorporated in the AQB Qualification Criteria for supervisors. Including the current AQB Qualification Criteria along with the Board's regulatory requirements ensures that licensees understand the Federal and State standards. Additionally, adopting the AQB Qualification Criteria by reference also ensures that the regulations will include future updates to the AQB Qualification Criteria for supervisory appraisers.
As previously indicated, the AQB Qualification Criteria are minimum standards. However, the Commonwealth and the Board may impose more stringent requirements. For supervisory appraisers, the AQB Qualification Criteria currently require supervisory appraisers to be State-certified and in good standing for at least 3 years, while the act requires at least 5 years of experience. Additionally, the AQB Qualification Criteria require good standing in the training jurisdiction in which the licensed appraiser trainee practices, but do not require certification in the jurisdiction for a minimum period of time. Consistent with the act's more stringent 5-year experience requirement, the Board proposes to amend § 36.54(b)(4) and (5)(i) to require that supervisory appraisers be in good standing in this Commonwealth for at least 3 years. The Board believes having a jurisdictional requirement for a minimum period of time will ensure that supervisory appraisers have sufficient knowledge and expertise when serving as a supervisory appraiser in this Commonwealth.
The Board also proposes to amend § 36.54(b)(3) to require that supervisory appraisers notify the Board, in writing, of the name and address of the licensed appraiser trainee before the trainee begins work for the appraiser. Currently, the Board's procedures require the notification to ensure adherence to Board regulations and the AQB Qualification Criteria for supervisors. Given the review necessary by Board staff to determine supervisory eligibility, it is necessary and appropriate to require written notification to the Board.
The Board also proposes several minor amendments that do not substantively change requirements. Throughout this section, the Board proposes to change ''trainee'' to ''licensed appraiser trainee'' for consistency and clarification.
Fiscal Impact and Paperwork Requirements
The proposed amendments reflect the AQB Qualification Criteria for postsecondary education standards for certified residential real estate appraiser. Prior to May 1, 2018, the AQB Qualification Criteria required applicants for certified residential real estate appraisers to hold a bachelor's degree, or higher, from an accredited college or university. The new AQB Qualification Criteria and the proposed rulemaking will lessen the financial burden on applicants for certified residential real estate appraiser credential due to decreased postsecondary education requirements. Current AQB Qualification Criteria for certified general real estate appraisers require applicants to hold a bachelor's degree, or higher. This Federal requirement represents an increase in education as compared to the Board's current regulations. However, because the bachelor's degree is Federally mandated, the Board implemented this requirement on January 1, 2015. The proposed amendments that require licensed appraiser trainees to obtain 28 classroom hours of continuing education reflect the amendments in Act 72 and the current AQB Qualification Criteria and are mandated for compliance with Federal requirements. The Board's proposed amendments also require an official criminal history record information check from the State Police or other state agency for every state in which the candidate has lived or worked during the past 5 years. This proposed rulemaking will have a fiscal impact on the regulated community due to the cost of continuing education for licensed appraiser trainees (annual cost of $91,545) and criminal history record information checks (annual cost of $7,920).
Regarding paperwork requirements, the Board has already revised its application forms to reflect the current Federal standards. Therefore, the Board does not anticipate additional paperwork requirements. The proposed rulemaking requires completion of experience logs for licensed appraiser trainees and certified residential real estate appraisers pursuing experience credit.
Sunset Date
The Board continuously monitors the cost and effectiveness of its regulations and will continue do so with respect to these regulations. Therefore, a sunset date has not been assigned.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P.S. § 745.5(a)), on June 22, 2018, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Professional Licensure Committee (HPLC) and the Senate Consumer Protection and Professional Licensure Committee (SCP/PLC). A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria in section 5.2 of the Regulatory Review Act (71 P.S. § 745.5b) which have not been met. The Regulatory Review Act specifies detailed procedures for review prior to final publication of the rulemaking by the Board, the General Assembly and the Governor.
Public Comment
Interested persons are invited to submit written comments, suggestions or objections regarding this proposed rulemaking to Jacqueline A. Wolfgang, Counsel, State Board of Certified Real Estate Appraisers, P.O. Box 69523, Harrisburg, PA 17106-9523, ra-stregulatorycounsel@pa.gov within 30 days following publication of this proposed rulemaking in the Pennsylvania Bulletin. Reference Regulation No. 16A-7022, Federally-Mandated Revisions, on comments.
D. THOMAS SMITH,
ChairpersonFiscal Note: 16A-7022. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 36. STATE BOARD OF CERTIFIED REAL ESTATE APPRAISERS
Subchapter A. GENERAL PROVISIONS
GENERAL PROVISIONS § 36.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
[AQB—The Appraiser Qualifications Board of the Appraisal Foundation.]
AQB—The Appraiser Qualifications Board of The Appraisal Foundation—The independent board of The Appraisal Foundation that establishes the minimum education, experience, examination and continuing education requirements for real property appraisers under Title XI of FIRREA (12 U.S.C.A. §§ 3331—3356). The term includes any successor organization as designated by the United States Congress or the ASC.
AQB Qualification Criteria—The AQB publication, The Real Property Appraiser Qualification Criteria, establishing the minimum education, experience, examination and continuing education requirements for real property appraisers to obtain a state license or certification. The publication may be accessed at The Appraisal Foundation web site at www.appraisalfoundation.org.
ASC—The Appraisal Subcommittee of the Federal Financial Institutions Examination Council.
Act—The Real Estate Appraisers Certification Act (63 P.S. §§ 457.1—457.19).
Ad valorem tax appraisal—Valuation for tax purposes involving the appraisal of real estate, its analysis, opinions and conclusions regarding taxation.
Applicant—A natural person.
Appraisal—A written analysis, opinion or conclusion relating to the nature, quality, value or utility of specified interests in, or aspects of, identified real property, for or in expectation of compensation.
Appraisal review—An analysis of a completed appraisal report to determine if it conforms to specific requirements and guidelines and to [insure] ensure that the report is consistent and mathematically correct.
Board—The State Board of Certified Real Estate Appraisers within the Bureau of Professional and Occupational Affairs in the Department of State of the Commonwealth.
Certified broker/appraiser—A person who holds a certificate issued under authority of section 6(a)(3) of the act (63 P.S. § 457.6(a)(3)) and who is authorized to perform appraisals of all types of real property in non-Federally-related transactions.
Certified general real estate appraiser—A person who holds a certificate issued under authority of section 6(a)(2) and (e) of the act and § 36.12 (relating to qualifications for certification as general real estate appraiser) and who is authorized to perform appraisals of all types of real property in all transactions, whether Federally-related or non-Federally-related.
Certified real estate appraiser—A certified broker/appraiser, certified residential real estate appraiser or certified general real estate appraiser.
Certified residential real estate appraiser—A person who holds a certificate issued under authority of section 6(a)(1) and (d) of the act and § 36.11 (relating to qualifications for certification as residential real estate appraiser) and who is authorized to perform appraisals of residential properties of one-to-four dwelling units in all transactions, whether Federally-related or non-Federally-related.
Distance education—[An] Except as otherwise required by the AQB Qualification Criteria, an educational process based on the geographical separation of the learner and instructor, which provides interaction between the learner and instructor and includes testing. Examples include [CD or DVD ROM] CD-ROM or DUD-ROM, on-line learning, correspondence courses, video conferencing, and video and remote television courses.
FIRREA—The Financial Institutions Reform, Recovery, and Enforcement Act of 1989[, the act of August 9, 1989] (Pub.L. No. 101-73, 103 Stat. 183).
Feasibility analysis—A study of the cost-benefit relationship of an economic endeavor.
Federally-related transaction—A real estate-related financial transaction which a Federal financial institution regulatory agency or the Resolution Trust Corporation engages in, contracts for or regulates, and which requires the services of an appraiser.
Highest and best use analysis—A study which represents the reasonable and probable use that results in the highest present value of the land or improved property after considering all legally permissible, physically possible and economically feasible uses.
IDECC—International Distance Education Certification Center.
In good standing—
(i) When referring to an individual certified or licensed by the Board to perform appraisals, an individual who is authorized under the act to perform appraisals or to act as a licensed appraiser trainee.
(ii) The term includes an individual who has an active, unrestricted certificate or license, or a certificate or license that is on probation or subject to a restriction ordered by the Board.
(iii) The term does not include an individual who holds a certificate or license that is inactive, expired, suspended or revoked.
Licensed appraiser trainee—A person who holds a license issued under section 6(a.1) of the act and § 36.12a (relating to qualifications for licensure as appraiser trainee) and who is authorized to assist a certified residential real estate appraiser or certified general real estate appraiser in the performance of an appraisal.
Real estate counseling—Providing, for a fee, disinterested and unbiased advice, professional guidance and judgment in the broad field of real estate, involving all segments of the business, including marketing, leasing, managing, planning, financing, appraising, providing testimony and other similar services. Real estate counseling is a specialty area in which the counselor clearly identifies the real estate problem to be solved, determines the most satisfactory solutions and, where appropriate, follows through on the implementation.
Real estate-related financial transaction—A transaction involving the following:
(i) Sale, lease, purchase, investment in or exchange of real property, including interests in property or the financing thereof.
(ii) Refinancing of real property or interests in real property.
(iii) Use of real property or interests in property as security for a loan or investment, including mortgage-backed securities.
Review appraiser—A person who performs an appraisal review.
USPAP—The Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board of [the] The Appraisal Foundation.
§ 36.2. Application process.
[(a) Application form. A person interested in becoming a licensed appraiser trainee, a certified residential real estate appraiser or a certified general real estate appraiser shall complete and file with the Board a notarized application form and an application fee. Application forms may be obtained by visiting the Board's website at www.dos.state.pa.us/real or by writing, telephoning, or e-mailing the Board at Post Office Box 2649, Harrisburg, PA 17105-2649, (717) 783-4866, or ST-APPRAISE@state.pa.us, respectively.
(b) Application fee. The application fee for licensure as an appraiser trainee or certification as a residential real estate appraiser or general real estate appraiser is set forth in § 36.6 (relating to fees). Application fees are nonrefundable. Payments must be in the form of a personal check or money order made payable to the ''Commonwealth of Pennsylvania.''
(c) Approved applications. Subject to the provisions of subsection (e), an approved application for certification as a residential real estate appraiser or general real estate appraiser will be valid for 1 year from the date of approval. If an applicant does not pass the certification examination within this 1-year period, the applicant's application will be considered to have been withdrawn. If the applicant wishes to take the examination after 1 year from the date of approval, a new application, along with the required fee, shall be submitted to the Board.]
(a) Application form. An individual who applies for licensure as a licensed appraiser trainee or for certification as a certified residential real estate appraiser or a certified general real estate appraiser shall do all of the following:
(1) Submit an application to the Board on a form provided by the Board.
(2) Submit an official criminal history record information check from the State Police or other state agency for every state in which the candidate has lived or worked during the past 5 years. A report must be dated within 90 days of the date of application.
(3) Pay the required application fee in the amount prescribed § 36.6 (relating to fees).
(4) Satisfy the requirements for licensure or certification in this subchapter.
(5) Satisfy the requirements in the AQB Qualification Criteria.
(b) Application fee. The payment of a fee for processing an application is nonrefundable and must satisfy all of the following conditions:
(1) The application fee must be in the amount in § 36.6.
(2) Payment of the application fee must be in the form of a personal check or money order payable to ''Commonwealth of Pennsylvania'' or an electronic payment in a form or method approved by the Commissioner of Professional and Occupational Affairs.
(c) Approved applications. Residential real estate appraiser and general real estate appraiser certification applications approved by the Board are subject to all of the following conditions:
(1) Approval by the Board of an initial application for certification as a residential real estate appraiser or a general real estate appraiser constitutes approval to take the examination approved by the AQB with all of the following limitations:
(i) Approval of the application will be valid for 1 year from the date of approval.
(ii) Approval of the application will be subject to subsection (e).
(iii) If an applicant does not pass the certification examination approved by the AQB within 1 year of the date of approval, the application will be deemed to be withdrawn.
(iv) If an applicant wishes to take the certification examination approved by the AQB more than 1 year after the date of approval of an application, the applicant shall file a new application that complies with subsections (a) and (b).
(2) Approval by the Board of an application for licensure as an appraiser trainee, certification as a residential real estate appraiser or certification as a general real estate appraiser under section 7 of the act (63 P.S. § 457.7), regarding reciprocity, constitutes approval to issue a license or certificate to the applicant.
(d) Disapproved applications. Subject to [the provisions of] subsection (e), an applicant for licensure as an appraiser trainee, certification as a residential real estate appraiser[,] or certification as a general real estate appraiser whose application has been disapproved by the Board will be notified in writing of the reasons for the disapproval, and will have 1 year from the date of disapproval to correct the deficiencies or to file a request for reconsideration.
(1) A request for reconsideration must give the reason for the applicant's request, must be accompanied by documentary materials not previously submitted which the applicant wishes the Board to consider and may include a request for an informal interview with the Board.
(2) If a request for reconsideration is denied or, subject to [the provisions of] subsection (e), an applicant is unable to correct the deficiencies which resulted in the disapproval of the application within 1 year from the date of disapproval, a new application, along with the required fee, shall be submitted to the Board.
(e) Compliance with new requirements.
(1) Residential real estate appraiser and general real estate appraiser applicants. Except as otherwise provided in §§ 36.11 and 36.12 (relating to qualifications for certification as residential real estate appraiser; and qualifications for certification as general real estate appraiser) or as required by the AQB Qualification Criteria, an applicant for certification as a residential real estate appraiser or general real estate appraiser shall comply with any increased education or experience requirements that take effect between the applicant's filing of an initial application and the applicant's passing the certification examination.
[An] (2) Appraiser trainee applicants. Except as otherwise provided in § 36.12a (relating to qualifications for licensure as appraiser trainee), or as required by the AQB Qualification Criteria, an applicant for licensure as an appraiser trainee shall comply with any increased education requirement that takes effect between the applicant's filing of an application that is disapproved and the applicant's filing of a new application.
§ 36.3. Examinations.
(a) [The examination required for certification as a residential real estate appraiser is the AQB-endorsed Uniform State Certified Residential Real Property Appraiser Examination or its equivalent. The examination required for certification as a general real estate appraiser is the AQB-endorsed Uniform State Certified General Real Property Appraiser Examination or its equivalent.] The examination required for certification as a residential real estate appraiser or a general real estate appraiser is the AQB-approved National examination for the certification for which an applicant is applying. The certification examinations are administered by a professional testing organization under contract with the Board at times and places established by the professional testing organization. An examination is not required for licensure as an appraiser trainee.
(b) Interested persons may obtain information about the certification examinations from the professional testing organization. Contact information for the professional testing organization appears on the Board's [website at www.dos.state.pa.us/real] web site.
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