Appraisal Regulations

Question 1

A __ is one in which the loan will not be sold on the secondary market and isn’t guaranteed or insured by a government entity such as FHA or VA.

Answer 1

a federally related transaction

Question 2

A national organization comprised of representatives of major appraisal organizations and those of related industries.

Answer 2

The Appraisal Foundation

Question 3

Requires that federally related appraisals be conducted by a state-licensed or certified appraiser.

Answer 3

Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of
1989 (FIRREA)

Question 4

Appraisers must follow the Appraisal
Standards Board’s Uniform Standards of Professional Appraisal Practice (USPAP). Qualification requirements are defined for the three Es:

Answer 4

three Es: education, examination, experience.

Question 5

In Maryland the ___ regulates appraisers and appraisal companies in accordance with the federal Appraisal Subcommittee.

Answer 5

Maryland Commission of Real Estate Appraisers and Home Inspectors

Question 6

Licensed Real Estate Appraiser Scope

Answer 6

For federally related transactions, non-complex one- to four-unit residential properties with a transaction value of less than $1 million

Complex one- to four-unit residential properties having a transaction value of less than $250,000

Commercial properties having a transaction value of less than $250,000

Question 7

Licensed Real Estate Appraiser Qualifications

Answer 7

150 hours of courses approved by the Maryland Commission of Real Estate Appraisers and Home Inspectors

Associate’s degree, or higher, from an accredited college, junior college, or community college or 30 semester credit hours of college-level education from an accredited college, junior college, community college or university

At least 2,000 hours of appraisal work experience over a period of at least two calendar years (24 months)

Question 8

Certified Residential Real Estate Appraiser Scope

Answer 8

For federally related transactions, one- to four-unit residential properties without regard to value or complexity

Commercial properties having a transaction value of less than $250,000

Question 9

Certified Residential Real Estate Appraiser Qualifications

Answer 9

200 hours of courses approved by the commission

Bachelor’s degree or higher from an accredited college or university

At least 2,500 hours of appraisal work over a period of at least two calendar years (24 months)

Question 10

Certified General Real Estate Appraiser Scope

Answer 10

For federally related transactions, all types of residential or commercial real property without regard to value or complexity.

Question 11

Certified General Real Estate Appraiser Qualifications

Answer 11

300 hours of courses approved by the commission

Bachelor’s degree or higher from an accredited college or university

3,000 hours of appraisal work over a period of at least 30 months, at least 1,500 hours of which in nonresidential real property appraisal work

Question 12

Appraiser Trainee Scope & Qualifications

Answer 12

Works under the supervision of a supervising certified appraiser.

Qualifications
Within the five-year period prior to the date of submission of an application for a real estate appraiser trainee license, complete 75 tested hours of commission-approved real estate appraisal courses of which 15 hours shall be in the subject of the Uniform Standards of Professional Appraisal Practice and a commission-approved course oriented toward trainee appraiser expectations and responsibilities.

Question 13

Home Inspector Scope

Answer 13

Written evaluation of one or more of the components of an existing residential building, including the heating system, cooling system, plumbing system, electrical system, structural components, foundation, roof, masonry structure, exterior and interior components, or any other related residential housing component

Question 14

Home Inspector Qualifications

Answer 14

72-hour on-site home inspector training course approved by the commission and pass the National Home Inspector Examination

Additional qualifications include:

Criminal background check (for new applicants)
No repeat courses in the same cycle for credit

Question 15

Exemptions from Appraiser Licensing and

Certification

Answer 15

Real estate brokers and salespersons in the ordinary practice of their business (e.g., for providing comparative market
analyses) (CMAs may not be referred to as “appraisals,” however)
A public officer performing official duties
A consultant who, as part of her consulting services, offers a valuation or analysis of real estate or standing timber (this
valuation may not be referred to as an appraisal or used in connection with obtaining a loan)
An employee directed to value a property for his employer, provided the valuation is not referred to or used as an appraisal
A representative of a lender who is offering a valuation in connection with a financial transaction where an appraisal by a state-certified or state-licensed appraiser is not required

Question 16

Companies that administer a network of independent contract appraisers.

Answer 16

Appraisal management companies (AMCs)

Question 17

Requirements for Appraisal Management Companies

Answer 17

AMCs aren’t a separate licensing category in Maryland, but they must be registered with the Maryland Commission of Real Estate Appraisers and Home Inspectors and their appraisers must be licensed or certified and must possess the same qualifications
and education as individuals who aren’t part of an AMC.

Question 18

An entity applying for AMC registration may not be owned in whole or in part, directly or indirectly, by:

Answer 18

A person who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended, or surrendered in any state

Another entity that is owned by a person who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended, or surrendered in any state

Question 19

“controlling person”

Answer 19

In addition, a “controlling person” must be designated as the responsible party for the AMC. This person also must not have had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended, or surrendered in any state unless it was
later granted or reinstated; and must be of good character as determined by the commission.