From it's inception in 2012, NCREAA's purpose has been to advocate for appraisers. NCREAA has succeeded in working through our legislators to promote changes that have directly benefited appraisers in North Carolina.
NCREAA sponsored, promoted and worked to pass HB565 which became Session Law 2013-403, AN ACT TO AMEND THE LAWS REGULATING REAL ESTATE APPRAISERS, ratified by the Governor August 23, 2013. This law included changes that added a requirement for AMC's to have a surety bond in place. (note sections 5 and 6 in the document)
After extensive work throughout 2014, NCREAA sponsored, promoted and worked to pass two very important bills. In 2015 the first was HB651 which became Session Law 2015-200, AN ACT TO BAR CIVIL ACTIONS FILED AFTER THE PERIOD OF RECORD RETENTION ESTABLISHED UNDER THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE OR FIVE YEARS, WHICHEVER IS GREATER, AND TO REQUIRE APPRAISAL MANAGEMENT COMPANIES TO ACCEPT CRIMINAL BACKGROUND CHECKS PERFORMED WITHIN THE PRECEDING TWELVE MONTHS, ratified by the Governor August 5, 2015. This law requires that any complaint or action against an appraiser be brought within 5 years of the date the appraisal was performed. This helped to bring the requirement in line to match the 5 year record keeping rule of USPAP . Previously, there was no time limit on when complaints or actions could be brought against appraisers. In addition, this law restricted AMCs from requiring appraisers to pay for more than one background check in the previous 12 months. Before this law, many AMCs required an appraiser to pay for multiple background checks each year. The cost of these unnecessary duplicated background checks was burdensome on appraisers. Under the law, AMCs are allowed to perform as many background checks as they prefer, as long as the appraiser only pays for one.
In 2016, the second important bill was HB577, which later became SB600 then Session Law 2016-61, AN ACT TO REQUIRE APPRAISAL MANAGEMENT COMPANIES TO COMPENSATE APPRAISERS IN COMPLIANCE WITH FEDERAL LAW, ratified by the Governor June 30, 2016. This law was the result of over 18 months of hard work by NCREAA. This new law went into effect January 1, 2017. The North Carolina Appraisal Board / NCAB is currently in the Rule Making process that will be utilized to enforce this new law. In the interim, NCAB has issued a guidance document for appraisers and appraisal management companies to utilize until rule making for the new law is completed.
NCAB Guidance Document / C & R Fees
House Bill 829 / Customary and Reasonable Fee Law
In the summer of 2017, Assistant Attorney General Roberta A. Ouellette wrote a letter to the FTC requesting them to comment on NC House Bill 829, proposed legislation to clarify our Customary and Reasonable Fee Law already in place.
Follow this link to read NCREAA's response letter;
However, the Bill became stuck in the Senate Rules Committee. NCREAA is continuing it's work on the passing of House Bill 829 in it's revised form and continues to ask all appraisers to contact their Senators and The Rules Chair, Senator Bill Rabon to ask that the House move this bill out of the Senate Rules Committee.
Follow this link to read the Bill;
HOUSE BILL 829 - AMENDED VERSION-JUNE 2018.docx
NCREAA begins efforts to make North Carolina Appraisers and the North Carolina Appraisal Board aware of "hybrid appraisals", a modified desktop appraisal product that is being marketed as a replacement for a full appraisal. NCREAA has serious concerns regarding the scope of work for these "Hybrid" appraisal products.
Follow this link to read NCREAA's letter;
NCREAA LETTER TO NCAB-Hybrid Appraisals-Oct2018.pdf
*Status update - January 2019 - as a result of the work of NCREAA, our calls and letter, NCAB formed an Ad Hoc Committee of 3 NCAB Members to study the "Hybrid / Bifurcated" Appraisal issue.
NCREAA responds to the OCC, Board, and FDIC (collectively, the agencies) invitation to comment on a proposed rule to amend the agencies' regulations requiring appraisals for certain real estate-related transactions. The proposed rule would increase the threshold level at or below which appraisals would not be required for residential real estate-related transactions from $250,000 to $400,000.
NCREAA posted comments on the agencies website and submitted a letter.
Follow this link to read NCREAA's letter;
NCREAA Threshold letter-1-25-2019.pdf
with a plaque of the new Customary & Reasonable Fee Law
NCREAA works closely with the North Carolina Appraisal Board to ensure that the public trust is maintained in our profession. In 2015, we successfully worked with NCAB to add a “signed statement” to the complaint form. Previously, complaints against appraisers could be made anonymously. We also have suggested many of the rule changes NCAB passed in 2015 and 2016 including some that came about as a direct result of the new laws NCREAA worked so diligently to sponsor, promote and lobby to pass. For example; Complaints over 5 years old will no longer be accepted; All information in an investigation will now remain confidential until probable cause is established, thus, dismissed complaints will not be part of an appraiser’s public record.
NCREAA has also led an effort to unify other state appraiser organizations to work together on federal and regional issues affecting the various state members. This effort has helped to form a network by which 24 state appraiser organizations are currently working together in order to promote advocacy for appraisers across the country. To date, we have been a part of a joint effort with these other states to submit letters to federal agencies expressing appraiser's concerns regarding Fannie Mae's Appraiser Quality Monitoring / Collateral Underwriter and a Federal Minimum Requirement for Appraisal Management Companies / AMCs.
NCREAA has been involved in many efforts to communicate the concerns of our appraiser members to state and federal agencies as they make policy changes that directly affect our industry. This effort includes authoring letters to various agencies as well as joining other state appraiser organizations as co-signers on letters.
. As we look forward to the future of professional real estate appraisal, with the support of NC Appraisers, NCREAA will continue working to advocate for the interests of NC Appraisers. Join us. Action Changes Things.