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Florida Realtors Appraisal Council Update

Real Estate Appraiser with AmcAppraisalsinc.com

I received this email today with some very interesting topics!  Particularly, the need for reviews of appraisals made in Florida, to be performed by Florida licensed/certified appraisers.  

That is VERY good news for our industry here!   What are your opinions?  Should those reviewing appraisals made in Florida be certified or licensed in Florida?  Or does it matter?



Good morning Appraisers!


The Florida Real Estate Appraisal Board held their regular meeting in Orlando April 2 and 3, 2012. This was the first meeting for newly appointed Certified Residential member Matthew Simmons. Matt is a REALTOR® and the Residential Manager for Fort Myers based Maxwell & Hendry Valuation Services, Inc.


The Governor made additional appointments to the FREAB just prior to the April meeting. The current Chair, Evalyn (Fran) Oreto, was appointed to fill one of the Appraisal Management Company positions, and Certified General Appraiser, Mike Rogers, was appointed to a second term. Although she did not attend the April meeting due to the late date of the announcement, Governor Scott also appointedTamara Jones McKee to fill the vacant Consumer spot on the FREAB. These appointments fill all the vacant positions on the FREAB.


The FREAB considered over 20 disciplinary cases. At least six involved a voluntary surrender of license for permanent revocation.


One of the most interesting discussions involved the board developing an answer to a question about out of state reviewers of appraisal reports; must they be licensed in Florida? Although the FREAB did not issue a formal declaratory statement, the consensus made it clear they considered appraisal reviews of property in Florida requires registration, license or certification in the Sunshine State.


In addition to making appointments to the Florida Real Estate Appraisal Board, the Governor signed two important bills into law. HB 887 and HB 517 were signed into law on April 8, 2012. HB 887 is effective October 1, 2012, and HB 517 is effective July 1, 2012. There are some important chances to Chapter 475, Part II in both. Most notably, HB 887 establishes discipline if an Appraisal Management Company:


(v) Has required or attempted to require an appraiser to sign any indemnification agreement that would require the appraiser to hold harmless the appraisal management company or its owners, agents, employees, or independent contractors from any liability, damage, loss, or claim arising from the services performed by the appraisal management company or its owners, agents, employees, or independent contractors and not the services performed by the appraiser.


That’s it for this update. Please forward this information to other Florida appraisers, and encourage them to sign up to receive these emails. In addition, to ensure NAR is aware of the number of REALTOR® Appraisers in Florida, please consider updating your profile in the National REALTOR Database System (NRDS). Go to NRDS database and update the Field of Business in your profile to indicate “Appraisal”.  https://secure.realtor.org/nrdslogi.nsf/LoginUserInfo


More on the 25th of April.



Frank Gregoire

Chairman, Florida Realtors Appraisal Council


Adam Preuss

Vice Chairman, Florida Realtors Appraisal Council




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Richard Glesser
North Country Appraisal Services - Gaylord, MI

Good to see an Appraisal Board take aggressive steps toward appraisal issues.  Too often they merely react to problems which exists after the fact.  Geographical competence is imperative and appraisal licensing within the subject state is a logical starting point for providing competent reviews.

It was also gratifying to see their position on AMC indemnification agreements.

Apr 10, 2012 11:46 PM
Richard D. Ferris
AmcAppraisalsinc.com - Clermont, FL
Florida State Certified (FHA) Appraiser

I am VERY hopeful about the changes with indemnification!  I think more transparancy as well as requiring reviews to be done by IN STATE licensed/certified appraisers - will bring better work to our industry here locally.  

Richard, what is your states' position on out of state reviews or indemnification?

Apr 11, 2012 01:19 AM
Richard Glesser
North Country Appraisal Services - Gaylord, MI

I posted a blog, "Michigan Moves toward AMC Regulation" about a week ago.  Unfortunately, it appears Michigan is moving in the direction of minimal compliance to Dodd-Frank so far as AMC regulation.  I added 2 items which would strengthen that legislation but am sure that they will remain out of any legislation.


Apr 12, 2012 01:29 AM
Jack Hughes
Hughes Appraisal Group Inc. HUD/FHA Approved) - Lehigh Acres, FL

As a Review Appraiser in Florida I believe that what is appraised in Florida should be reviewed by Florida and any Reviewer that reviews a Florida Appraisal should be licensed or Certified in Florida. This change should have happened a long time ago. Kind of goes with Geographic competency. Nice to know that Florida is pioneering Change. Good Info. Thank You

Apr 13, 2012 09:15 PM
Richard D. Ferris
AmcAppraisalsinc.com - Clermont, FL
Florida State Certified (FHA) Appraiser

@Jack - I totally agree!  It is good to see  this change and I agree - all reviews that are USPAP level reviews for value, comp selection, etc - should be handled by a licensed/certified Florida appraiser.  I am ok with underwriter level reviews for items like

  • Are all the appropriate check boxes checked
  • Are items bracketed or explained
  • Are all addendums referenced there, tc
I am ok with more of an error review - but not a quality of data/valuation review done by anyone other than a geogrpahically competent appraiser/licensee.
Apr 14, 2012 11:47 PM
Richard Glesser
North Country Appraisal Services - Gaylord, MI

Jack and Richard - I have long been a proponent of a standard whereby the reviewer should hold the equivalent or higher license level as the original appraiser.  A Certified General will complete assignments of more difficulty based upon his/her license which reflects the education and experience.  I have been victim in the past of reviews of complex properties completed by a Licensed Residential who clue.  But the underwriter hangs her hat on the review opinion.  Generally, when the consumer pays for a third appraisal done by another Certified General, the original value is confirmed.  It would make more sense to have the Certified General do the review and save the consumer the cost.

There are many areas which should be tightened in the state regulations but most states prefer to conform only to the minimal federal requirements.  I applaud Florida for going beyond.

Apr 16, 2012 10:16 PM