REAL ESTATE APPRAISERS BOARD

House Bill 5313

Sponsor:  Rep. David Nathan

Committee:  Regulatory Reform

Complete to 2-09-10

A SUMMARY OF HOUSE BILL 5313 AS INTRODUCED 9-2-09

The bill would amend Article 26 (Real Estate Appraisers) of the Occupational Code, 1980 PA 299, to alter the composition of the board of real estate appraisers.[1]  Currently, the nine-member board consists of 3 public members and 6 professional members; the professional members comprise 3 certified general real estate appraisers, 1 certified residential real estate appraiser, and 2 state licensed real estate appraisers. 

The bill would replace the 2 state licensed real estate appraisers with 2 members who are either state licensed real estate appraisers or certified residential real estate appraisers. 

The bill would also delete a requirement that at least one of the professional members be employed by a state or nationally chartered bank, savings bank, savings and loan, credit union, federally chartered farm credit institutions, or entity regulated under the Mortgage Brokers, Lenders, and Servicers Licensing Act, 1987 PA 173. 

MCL 339.2603

FISCAL IMPACT:

The bill would have no fiscal impact on the state or local units of government.

BACKGROUND INFORMATION:

There is currently a vacancy on the Board of Real Estate Appraisers.  According to the Department of Energy, Labor, and Economic Growth, financial institutions no longer employ appraisers, and so a seat on the board remains vacant, and that requirement is deleted under the bill. 

Under Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, P.L. 101-73, (12 USC 3331 et seq.), the Appraisal Qualifications Board (AQB) of the Appraisal Foundation[2] develops the minimum education, experience, and examination requirements for real estate appraisers to obtain state certification.  In 2004 the AQB revised its qualification criteria, effective January 2008.[3]  The chart below shows the scope of practice and qualification criteria of real estate appraisers under the 2008 AQB Qualifications Board (AQB) requirements.

Level of Licensure	Education	Experience	Exam	Scope of Practice
Limited Real Estate Appraiser	75 hours of approved pre-licensure appraiser education	None	None	Any non-federally related transactions. Must also contain supervisor's signature
State Licensed Real Estate Appraiser	150 hours of approved pre-licensure appraiser education	2,000 hours of appraisal experience including at least 1,500 hours of residential experience over at least 12 months	2008 AQB exam	Any non-federally related transactions, and federally related transactions of 1-4 family residences up to $1,000,000, or commercial properties up to $250,000
Certified Residential Real Estate Appraiser	200 hours of approved pre-licensure appraiser education	2,500 hours of appraisal experience including at least 2,000 hours of residential experience over at least 24 months	2008 AQB exam	Appraise 1 to 4 family residential properties, without regard to complexity or value and commercial properties under $250,000 transaction value
Certified General Real Estate Appraiser	300 hours of approved pre-licensure appraiser education and a bachelor degree or 30 college semester credit hours	3,000 hours of appraisal experience including at least 1,500 hours of non-residential experience over at least 30 months	2008 AQB exam	Real property of any type or value

Source: 2008 AQB Qualification Criteria Changes,Department of Energy, Labor, and Economic Growth, Bureau of Commercial Services, [http://www.dleg.state.mi.us/bcsc/forms/appr/aqbqualif.pdf]. 

                                                                                                                       

                                                                                  Legislative/Fiscal Analyst:   Mark Wolf

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.

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