April 1st Edition of the Florida Real Estate Appraisal Board

Have you wondered what goes on during a meeting of an appraiser state regulatory board meeting? Is it worth your time to attend? Will anything be learned? Only you can decide, but it will be worth your time to tune into the LIVE STREAM of the April Fool’s Day Edition of the Florida Real Estate Appraisal Board.

The disciplinary cases are always informative. The Respondents sometimes illustrate HOW NOT to act and respond to the complaint, and answer questions posed by FREAB members. The FIRST case on the Legal Docket, the special Teleconference Agenda, Legal Agenda-A, may be entertaining, informative, and fulfill your expectations for April Fool’s Day.

The Division of Administrative Hearings has relinquished jurisdiction to the Department of Business and Professional Regulation. An informal hearing on the case is scheduled for 8:30 A.M. on Monday, April 1, 2019. 

HERE is a copy of the Administrative Complaint. The Division of Administrative Hearings DOCKET for the case has links to documents relevant to the case. One example of the appraiser’s responses to the Department of Business and Professional Regulation, Division of Real Estate, can be found at this LINK.

If you are near a computer on April 1, 2019, tune in to the LIVE STREAM at 8:30 A.M. It should make your day.

Two New Florida Bills - Amendments to Chapter 475

Two nearly identical bills have been filed for the 2017 Session of the Florida Legislature. On the House side, HB 927 was filed by Rep. Bob Rommel on February 21, 2017. Senator Kathleen Passidomo filed SB 716 of February 16, 2017. The bills are nearly identical, and appear to be attempts to amend Chapter 475, Part II to conform with the Final Rule on Minimum Requirements for Appraisal Management Companies. 

The major difference in the bills appears to be:

• The Senate Bill requires AMC compliance with the Truth in Lending Act (customary and reasonable fees). The House Bill does not have the same language. (see lines 503 - 505 of SB 716).
• The House Bill tightens up the restrictions on registration of AMCs by removing the FREAB's discretion to grant registration "after a lapse of time and subsequent good conduct and reputation" for individuals (officers, directors, general partners, managing partners, owners, or persons with 10% or more ownership interests) associated with an AMC applicant. (see lines 297 - 300 of HB 927). The Senate Bill deals with applicants in Section 475.6245 - Discipline of appraisal management companies, and grants the FREAB discretion to deny an application or renewal in the event the above named individuals is guilty of or committed listed violations. (see lines 306 - 323 and 332 - 505 of SB 716).

The filed bills each limit the responsibility of AMCs to their activities related to "covered transactions" or appraisals for "secondary mortgage market participants". This is troubling as the "covered transaction" is means a consumer credit transaction secured by the consumer's principal dwelling. (See lines 154 -155 HB 927 and lines 157 - 158 SB 716).

Language repealing the Post License Education Requirement for Registered Trainee Appraisers is in both bills. As a result of the most recent Appraiser Qualifications Board Real Property Appraiser Qualification Criteria, the post license education requirement had outlived its usefulness. It was confusing to licensees, costly for course providers, and is an unnecessary barrier for trainee appraisers. 

We've got a starting point, and can expect some amendments. Give the bills a close look and let me know what you think. I'll try to keep up with them when they start going through the committee process.

Behind the Scenes - Appraiser Discipline

What are those boxes and stacks of papers?

The photo shows a portion of the 65+ cases that will be considered by the Florida Real Estate Appraisal Board Probable Cause Panel on Monday, July 6, 2009. The fourth box is on the other side of the room, out of the picture, in the "unread" corner.

Under the Florida Appraisal License and Certification Statute, Chapter 475, Part II, the Florida Real Estate Appraisal Board (FREAB) has the authority to grant and deny registrations and certifications. The FREAB is also tasked with the responsibility to discipline appraisers. The discipline imposed may include suspension (up to 10 years), revocation, fine (up to $5,000 for each offense), reprimand and probation. Like all regulatory boards in Florida, disciplinary procedures are conducted in compliance with applicable laws and rules. These include Chapter 455 and Chapter 120.

There's no reason to bore you with the details. The purpose of this post is to demonstrate that the complaints are real, the investigations are thorough, and the appraisers under scrutiny are really under scrutiny. Florida Appraisers that fail to comply with the law, rules of the FREAB and the Uniform Standards of Professional Appraisal Practice are disciplined by the FREAB.

As a past member of the Florida Real Estate Appraisal Board, yours truly has the opportunity to participate as a member of the FREAB Probable Cause Panel. The panel includes a current and past member of the FREAB that meet to consider complaints and cases and determine Probable Cause. If Probable Cause is found, an Administrative Complaint is filed against the licensee. The Probable Cause Panel meets once a month and July is my month!

Although I've made it through 3/4 of the stack, posting is likely to be light over the weekend! In addition to all the reading, I've got a race to watch and will be rooting for the Blue Oval Boys. It would be nice to see Carl Edwards or David Ragan in the winner's circle.