1. How do I become a member of MAA?
2. I am a first time homebuyer - is there any information available about what I should know about my appraisal?
3. What are the new Fannie Mae UAD requirements and when do they take affect?
4. I hear Fannie Mae has released Appraiser Independence Requirements on 10/15/10 to replace the HVCC. Do they differ much from the HVCC and can you tell me more about them?
5. I heard the Federal Reserve Board published an interim Final Rule on 10/20/10 that establishes new Appraisal Independence Requirements and Amends TILA to ensure reasonable Fees are Paid to Appraisers. Can you provide more information on this?
6. I heard that the requirements to be a Supervisory Appraiser for appraiser trainees has changed. Can you tell me what the new requirements are?
7. Effective January 1, 2008, licensing/certification examinations for real estate appraisers were replaced with the AQB's National Appraisal Examination. Can you provide some insight into the revised exams?
8. I am looking for an effective way to study for the State Licensing and Certifications Exams or to help pass the Prelicensing course exams. Can you help?
9. How Do I Apply To Take A Licensing/Certification Exam in Maryland?
10. How do I obtain the Licensed/Certified Appraiser Qualification Information Handbook and Examination Application Packet? When should I request this packet?
11. What about people training to become licensed or certified appraisers?
12. How Do I Apply For My Trainee License in Maryland?
13. As a Trainee I am required to keep a log. What is the best way to do that and how long must it be retained?
14. As a Trainee, How Do I Document Significant Appraisal Experience?
15. I have been told that I must document my experience in a specific format mandated by the AQB. Please explain
16. How long must Education Course Completion Certificates and Experience logs be kept
17. I heard I must keep track of my qualifying course and topic hours to meet licensing/certification requirements. Is there a form designed to help with this?
18. What Are The Continuing Education Requirements To Renew My Appraisal License or Certification?
19. I am a Realtor as well as an appraiser and have heard the CE requirements for Realtors has changed. Can you tell me what the new requirements are and when they become effective?
20. I got my appraisal license before January 1, 2003. I now want to upgrade to certified but my original 15 hour USPAP was not taught by a Certified USPAP instructor that is now required. Must I retake the 15-hour USPAP?
21. Is On-line or Distance Learning accepted in Maryland?
22. Is the 1004MC form required when doing an update?
23. I understand that appraisers who work in Baltimore City must file quarterly reports. Can you tell me what the requirements are?
24. Where Can I get Answers to questions that arise on FHA Appraisal Issues?
25. I heard that as of May 5, 2008, FHA has implemented a new policy regarding license/certification renewals that augments the existing policy. Can you tell me what that is?
26. How do I find out the eligibility requirements to become an FHA appraiser ?
27. I heard that you no longer need to take a special exam to perform FHA appraisals. Is this true?
28. Once I have been approved and placed on the FHA Roster - is there a renewal process in place to keep it current?
29. I was on the FHA Roster prior to the requirement that I must be state certified. I was unable to complete the certification requirements prior to the November, 2009 implementation date and was dropped from the list. I have now completed all requirements and passed the certification exam. What is the reinstatement process?
30. I heard that the process for applying to the FHA Appraiser Roster changed as of May 5, 2008. Can you tell me what the current process for application is?
31. I am a licensed appraiser who has been on the FHA Appraisal roster for years. I understand that FHA is now requiring all appraisers on their roster to be state certified. Will I be grandfathered?
32. I have heard that when appraising in Montgomery County or the City of Rockville, there is subsidized housing that is not readily apparent from their location that are subject to specific valuation procedures. Can you explain?
33. Does Maryland observe reciprocity?
34. How Do I Obtain a List of Planning and Development Office Contacts in Maryland?
35. Volunteer Expert Review Appraiser (VERA) Roster
36. Have a complaint about a certain lender? Contact the following agencies for help.
37. How Can I Make A Difference in the Appraisal Profession
38. How do I order FEMA Flood Maps or check to see if I am using the most current update?
39. How do I obtain information on Radon Gas levels in Maryland?

1)How do I become a member of MAA?

2)I am a first time homebuyer - is there any information available about what I should know about my appraisal?

3)What are the new Fannie Mae UAD requirements and when do they take affect?

Effective September 1^st, 2011, Fannie Mae is requiring all appraisals be reported using their new Uniform Appraisal Dataset (UAD), which defines all fields required for an appraisal submission for specific appraisal forms and standardizes definitions and responses for certain fields within the report. The intent of the UAD is to provide consistency in terminology, formatting of numbers, such as dates, and standardizing both quality and condition ratings for all appraisals. This is a major change that introduces a whole new method of completing these residential forms. The software companies are in the process of making the required changes to their appraisal software now but is not yet available. MAA will be offering a seminar on these changes several times during the summer beginning in June 2011 so that there will be plenty of time for appraisers to prepare themselves to hit the ground running when the effective date rolls around. MAA is developing this seminar to specifically provide the student with the necessary knowledge and tools to avoid call backs, rejections, or potential USPAP violations due to an unintentional but potentially misleading report. This class will go over all the sections of the report that will now require specific responses, discuss the new terminology and ratings, and relate these changes to maintaining and ensuring compliance with USPAP. Thorough and effective commentary is essential and more critical than ever before. An interactive class activity will provide an interesting review of these significant revisions. The form has remained the same, so the primary intent of this class is NOT to teach the form, but to specifically instruct on the nuances of the UAD.

4)I hear Fannie Mae has released Appraiser Independence Requirements on 10/15/10 to replace the HVCC. Do they differ much from the HVCC and can you tell me more about them?

Fannie Mae Announcement SEL-2010-14, dated October 15, 2010

Fannie Mae has been working with the Federal Housing Finance Agency, Freddie Mac, and key industry participants to develop Appraiser Independence Requirements to replace the Home Valuation Code of Conduct (HVCC). The Appraiser Independence Requirements maintain the spirit and intent of the HVCC and continue to provide important protections for mortgage investors, home buyers, and the housing market.

The revised requirements pose no significant changes to core principles of the HVCC and incorporate language to clarify questions that arose in the implementation of the HVCC. Fannie Mae has also removed certain provisions from the updated requirements as they already exist elsewhere in the Selling Guide, such as the need for lender quality control testing for appraisals.

Fannie Mae is committed to supporting strong appraiser independence requirements and will continue to review the appraiser independence requirements to address market developments and regulatory actions taken pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which may include rules relating to conflicts of interests and fee disclosure by appraisal management companies. Fannie Mae may issue additional guidance in the future with respect to these issues and other aspects of the requirements.

Lender Representation and Warranty

The lender represents and warrants that any appraisal conducted in connection with a single-family mortgage loan (other than government-insured and -guaranteed loans) delivered to Fannie Mae, with an application date on or after the date of this Announcement, conforms to the Appraiser Independence Requirements.

In addition, all conventional, single-family mortgage loans with application dates on or after May 1, 2009 must comply with the HVCC until the earlier of the release of the Interim Final Rules by the Federal Reserve as required by the Dodd-Frank Act or November 1, 2010.

Effective Date

This Announcement is effective immediately.

The Selling Guide will be updated to incorporate these policy changes at a future date.

The Appraiser Independence Requirements have been  attached here for your review.

5)I heard the Federal Reserve Board published an interim Final Rule on 10/20/10 that establishes new Appraisal Independence Requirements and Amends TILA to ensure reasonable Fees are Paid to Appraisers. Can you provide more information on this?

The intent of the new 132-page rule is to ensure that real estate appraisals are based on the independent professional judgement of the appraiser which is free of any influence or pressure that may be exerted by parties that have an interest in the transaction. The new Rule amends Regulation Z (Truth in Lending) by establishing new requirements for appraisal independence for consumer credit transactions that are secured by the consumer's principal dwelling.

The Federal Reserve Board is seeking comment for a 60-day period on all aspects of the rule. The comment period begins when the rule is published in the Federal Register. Comments may be submitted  to the Reserve Board by sending an e-mail by clicking here. The Reserve Board is also accepting comments by mail. Submissions should be addressed to Jennifer J. Johnson, secretary, Board of Governors of the Federal Reserve System, 20th St. and Constitution Ave., N.W., Washington, D.C., 20551.

The rule becomes effective 60 days after the date it is published in the Federal Register. However, to allow time for implementation, the Fed is giving the industry until April 1, 2011, to comply.

The rule implements Section 129E of the Truth in Lending Act. It applies to creditors, appraisal management companies, appraisers, mortgage brokers, Realtors, title insurers and other firms that provide settlement services. The rule applies to closed-end loans as well as home-equity lines of credit.

According to the Board, with a few exceptions, the rule applies to any person who performs valuation services, performs valuation management functions, and to any valuation of the consumer’s principal dwelling, not just to a licensed or certified appraiser, an appraisal management company or to a formal appraisal.

According to the Board, “This approach implements the statutory provisions and is consistent with the 2008 Appraisal Independence Rules, and is designed to ensure that consumers are protected regardless of the valuation method chosen by the creditor, and to prevent circumvention of the appraisal independence rules”.

The rule is categorized into four areas:

• coercion and prohibited extensions of credit;
• conflicts of interest;
• mandatory reporting of appraiser misconduct; and,
• customary and reasonable rate of compensation for fee appraisers.

Consistent with Section 1472 of the Dodd-Frank Act, among other things, the rule prohibits covered persons from engaging in coercion, bribery and other similar actions designed to cause anyone who prepares a valuation to base the value of the property on factors other than the person’s independent judgment. It also provides that “a person who prepares a valuation or who performs valuation management services may not have an interest, financial or otherwise, in the property or the transaction.”

In the rule summary, the Federal Reserve Board points out that the Dodd-Frank Act does not expressly ban the use of in-house appraisers or affiliates. However, because the act prohibits appraisers from having an “indirect financial interest” in the transaction, it is possible to interpret the act to prohibit creditors from using in-house staff appraisers and affiliated appraisal management companies. The rule clarifies that an employment relationship or affiliation does not, by itself, violate the prohibition.

The rule also contains a safe harbor and specific criteria for establishing firewalls between the appraisal function and the loan production function, to prevent conflicts of interest.

MAA strongly encourages you to familiarize yourself with this interim final rule. For your convenience, we have attached the complete 132-page Federal Reserve Board' official interim rule below.

132-page Federal Reserve Board Final Interim Rule

6)I heard that the requirements to be a Supervisory Appraiser for appraiser trainees has changed. Can you tell me what the new requirements are?

In 2007, the Commission adopted the AQB policy that Trainees must now be supervized by Certified Residential or Certified General Appraisers only, effective January 1, 2008. As of that date, individuals holding a basic license will no longer be allowed to supervize trainees. Any experience hours accumulated under a Licensed Appraiser prior to that implementation date, however, will be honored as valid experience. Further, the number of trainees that may be supervised by any one individual is now limited to three. 

 You may contact The Maryland Real Estate Appraisers Commission directly at 410 230-6165 for further information.

7)Effective January 1, 2008, licensing/certification examinations for real estate appraisers were replaced with the AQB's National Appraisal Examination. Can you provide some insight into the revised exams?

PSI, who administers the real estate appraiser licensing/certification examinations in Maryland, has informed us of the following relevant information regarding the revised National Exams:

• Appraiser exams were updated to meet the revised AQB standards which are now "practice-based", meaning that individuals passing them will have demonstrated not just "book-learning" but an ability to adequately apply the appraisal concepts and methodologies they have learned in the courses and through their training experience                    
• Candidates should review the new content outlines to ensure they are fully prepared for the new exams
• All exams are now 150 questions: the Licensed Appraiser and Certified Residential Appraiser exams have now been increased to 6 hours; the Certified General exam has increased to 8 hours.

Should you have further questions, please contact one of PSI's service representatives who will be more than happy to assist you at 1-800-733-9267.

8)I am looking for an effective way to study for the State Licensing and Certifications Exams or to help pass the Prelicensing course exams. Can you help?

The Maryland Association of Appraisers (MAA) is pleased to offer CompuCram Exam Prep Software. All software has been updated to reflect the new AQB Qualification criteria that became effective January 1, 2008 and will prepare you to take and pass the new national appraisal exams.

Developed to comply with the revised core curriculm topics, it presents hundreds of questions, answers, and explanations to prepare students for all levels of the residential licensing and certification exams. A very effective learning tool, this self-paced CD features an extensive glossary, study tips, and timed exams to help students prepare for their exam. The software is extremely easy to use and has been organized into three sections, in addition to the glossary, which can be accessed at the student’s desire:

• Review Section: Consists of extensive questions and explanations arranged by topic to help you efficiently prepare for your exam. Topics include Influences on real estate; Legal considerations; Types of value; Economic principles; Real estate markets and analysis; Valuation process; Property description; Highest and best use; Appraisal math and statistics; Sales comparison approach; Site value; Cost approach; Income approach; Valuation of a partial interest; and USPAP.

• Exam Section: Because questions are randomly selected from a huge databank each time this section is accessed, no two exams are the same. This provides a virtually unlimited number of timed tests that simulate the actual exam. Exams are graded and categorized to identify weak areas. In addition, all answers include the rationale to help explain the concept.

• Results Section: Allows you to review the answers and results for your 19 most recent exams.

MAA is offering this excellent review and examination preparation study aid at the discounted price of $70.00, plus $5.00 shipping and handling. To order, please call the MAA office at (410) 879-1341.

9)How Do I Apply To Take A Licensing/Certification Exam in Maryland?

Maryland's appraiser examinations are administered by PSI. Their website, www.psiexams.com , contains the bulletin and forms which are downloadable in PDF format. They may also be reached at 1-800-733-9267 to request the "Maryland Real Estate Appraisers Licensed/Certified Appraiser Qualification Information Handbook and Examamination Application Packet".

10)How do I obtain the Licensed/Certified Appraiser Qualification Information Handbook and Examination Application Packet? When should I request this packet?

State examinations for appraiser licensure in Maryland are provided through PSI Examination Services. They may be reached at 1-800-733-9267 to request the "Maryland Real Estate Appraisers Licensed/Certified Appraiser Qualification Information Handbook and Examamination Application Packet". It is recommended that Trainees obtain this packet as they begin their training experience in order to begin documenting both the educational hours as well as experience hours in the format that will eventually be required by PSI at the time that you apply to take the state examination. Both the educational and work experience forms can be found in this packet and may be reproduced as many times as needed. This not only saves alot of time later on, especially in the documentation of your experience, but it further serves as the required "trainee log" that must be kept by you.  This log must be reviewed and signed on a regular basis by the Supervisory Appraiser who is training you.  If you have more than one Supervisory Appraiser, separate work logs must be kept for each one.  

11)What about people training to become licensed or certified appraisers?

Legislation which became effective October 1, 2000, establishes a Trainee License, and requires that individuals in training to become licensed real estate appraisers obtain that license. Without it, they cannot perform or sign appraisals, even under the direct supervision of a licensed appraiser. The three-year license will be granted to applicants who have completed 75 tested hours of pre-licensure education, which must include 15 hours of USPAP. The license can be renewed one time for an additional three years. (In other words, no career trainees). The Supervising Appraiser (there may be more than one) is responsible for ensuring that the tasks assigned the trainee will, over time, provide the full range of experience, and is also responsible for determining that the trainee meets competency requirements. The Supervisor must provide the trainee a copy of each appraisal report prepared, and must sign the trainee's log at least monthly. The legislation should go a long way toward minimizing the abuses of the "appraisal mills" who use trainees as simply cheap labor to undercut the rest of us, and do nothing to provide aspiring appraisers with the well-rounded real-world experience essential to becoming a competent professional real estate appraiser. For specific information on the responsibilities of both the Trainee and the Supervising Appraiser, please contact the MAA office at 410 879-1341 and request a copy of the bill, or "Click here" to submit your request on-line through our "Feedback" service. 

Please note that a regulatory change by the Maryland Real Estate Commission became effective in March, 2004 that will now require the 2000 hours of experience for an appraisal license to be acquired over a period of no less than 2 years.  Trainees should take note that the clock for their two-year experience requirement is not automatically tied to the issue date of the Trainee License as it does not begin until they actually find a mentor and begin working on a regular basis after their Trainee Licence has been issued. There is no recognition of experience that may have been accumulated before the Trainee License was issued. In addition, in 2004, all educational requirements were substantially increased by the AQB and became effective January 1, 2008. Maryland adopted a “Firm Date” Scenario to implement the new Criteria changes, however, which means that any credential issued by the state on or after January 1, 2008, must be in compliance with all components of the new AQB Real Property Appraiser Qualification Criteria. Under this scenario, it would not matter when an applicant completed his or her education, examination, and experience; if the credential is issued on or after January 1, 2008, the applicant must meet the requirements for all components of the new Criteria. Because Maryland has a mandatory minimum 24 month experience requirement for the License and Certified Residential categories and a minimum 30 month experience requirement for the Certified General category before one may apply to sit for the State Exam, anyone entering the training modules after January 1, 2006 (or June, 2005 for the Certified general category) automatically fell under and had to comply with the new Criteria.

In addition, in 2007, the Commission adopted the AQB policy that, effective January 1, 2008, Trainees will now have to be supervized by Certified Residential or Certified General Appraisers only. As of that date, individuals holding a basic license will no longer be allowed to supervize trainees. Any experience hours accumulated under a Licensed Appraiser prior to that implementation date, however, will be honored as valid experience. Further, the number of trainees that may be supervised by any one individual is now limited to three. 

 You may also contact The Maryland Real Estate Appraisers Commission directly at 410 230-6165 for further information.

12)How Do I Apply For My Trainee License in Maryland?

When you have received all of your certificates for the required 75 hours of approved education, including USPAP, you need to contact the Maryland Real Appraisers' Commission at: www.dllr.state.md.us. Click on Occupational & Professional Electronic Licensing, then Real Estate Appraisers and complete the on-line application.

You can fax Patti Schott, Administrator,  your certificates at 410  333-6314 after completing the application. You may also apply by paper application, but that is a much longer process that can take up to 4-5 weeks to receive your trainee license.

13)As a Trainee I am required to keep a log. What is the best way to do that and how long must it be retained?

Although as a Trainee you will not be ready to apply for the state exams until you have completed both the educational and work experience requirments, it is recommended that Trainees obtain the "Maryland Real Estate Appraisers Licensed/Certified Appraiser Qualification Information Handbook" from the testing company as they begin their training experience in order to begin documenting both the educational hours, as well as experience hours, in the format that will eventually be required when you are ready to submit your application to take the state examination. To request this packet, PSI Examination Services (PSI) may be reached at 1-800-733-9267.  Both the educational and work experience forms are in this packet and may be reproduced as many times as needed. This not only saves alot of time later on, especially in the documentation of your experience, but it further serves as the required "trainee log" that must be kept by you.  This log must be reviewed and signed on a regular basis by the Supervisory Appraiser who is training you.  If you have more than one Supervisory Appraiser, separate work logs must be kept for each one.  

Please note: In early 2006, the Commission adopted a policy requiring that Supervisory Appraisers for trainees must be either Certified Residential or Certified General. Licensed individuals will no longer  be able to act as Supervisory Appraisers for trainees once the policy goes into effect. This will likely occur following the 2007 legislative session. In addition, the number of trainees under the supervision of any one individual has been limited to three. For additional clarification, please contact Patty Schott at the Maryland Real Estate Appraiser's Commission at 410  230-6165.

As a word of advice, it is prudent to keep copies of all educational and experience logs in a safe place, along with copies of all course completion certificates, because they will be required to be resubmitted, along with the additional educational and experience hours needed to meet the criteria for the category of license being sought, when applying to upgrade to a higher category of certification. Certificates for Continuing Education should also be kept as they too could be required for periodic random audits by the Commission.

14)As a Trainee, How Do I Document Significant Appraisal Experience?

In recent months, there have been frequent submissions of appraisals for review to the MD State Commission of Real Estate Appraisers and Home Inspectors by several Trainee members of MAA and others that are not technically in compliance with Standard 2 of the Uniform Standards of Professional Appraisal Practice (USPAP), which among other things, requires all who have provided significant appraisal assistance be named in the Certification of the report with a description of that assistance placed either within that Certification, or elsewhere in the report.

Unfortunately, the mandatory certifications required by Fannie Mae/Freddie Mac for inclusion with their forms do not permit any additions or deletions to the Certification - making it physically impossible for the Trainee to technically comply - even though the individusl's name and the extent of technical assistance provided was made clear elsewhere in the report .

In an effort to find a viable resolution to this problem, MAA consulted with the Appraisal Foundation and met with the Commission's then-Chair so that Trainees would not be unfairly penalized for a situation over which they currently have no control.

Industry members of the Commission recently met with the State Administration and Office of Counsel which resulted in 2 solutions which would steer these reports back into compliance with USPAP and the State Commission's requirements when the individual providing significant assistance finds themselves in this situation.

Option 1

The Supervisory Appraiser will provide an Addendum within the report that specifically addresses the significant appraisal assistance. This addendum names the person providing the assistance, and states the hours claimed in performing that assistance. It requires the signature of the supervisory appraiser and is dated. The reference to this addendum must be referenced on page 1 of the form which simply states "Please refer to the attached Addendum describing significant appraisal assistance in the preparation of this report."

The addendum that must be used is attached to the Commission's memorandum which has been provided below.

Option 2

The appraisal report for which the trainee/licensee is claiming credit must have a statement similar to the statement provided in the sample included with the Commission's memorandum provided below. This statement provides the name of the licensee, the description of the assistance provided, and the hours claimed.

The instructions for placement of that statement are included on the memorandum's attachment labeled "Option 2".

Both options become mandatory for reports dated January 1, 2011 and thereafter.

15)I have been told that I must document my experience in a specific format mandated by the AQB. Please explain

Important information for all Appraiser Trainees, Appraisers seeking to upgrade, and Supervisory Appraisers

The AQB issued a Guide Note in June 2008 that relates to the verification of experience credit as specified in the Real Property Appraiser Qualification Criteria that became effective January 1, 2008.

The Criteria mandates that the forms used to verify experience credit include ALL of the identified items. While five of the six items are fairly self-explanatory, the AQB has received inquiries regarding the intent of item #4 Description of work performed by the trainee/applicant and scope of the review and supervision of the supervising appraiser.

It is the intent of the AQB that the verification of experience clearly identifies three things under item #4. Please click here for a complete copy of Guide Note 6 and the AQB's clarification of this issue. A sample log has also been provided. 

16)How long must Education Course Completion Certificates and Experience logs be kept

17)I heard I must keep track of my qualifying course and topic hours to meet licensing/certification requirements. Is there a form designed to help with this?

Appraisers must be aware that they are responsible for keeping track of the qualifying course and topic hours that they have taken to meet licensing/certification requirements: verification will be required for appraisers applying to sit for the State exams on or after January 1, 2008. Neither the course provider nor the Appraiser’s Commission will be doing this for you. An excellent record that has been specifically designed for this purpose is contained within the 44-page “Student Appraiser’s Guide – Understanding and Navigating the Real Property Appraiser Qualification Criteria”, available on the Appraisal Foundation website. Please visit www.appraisalfoundation.org, click on Education/Qualifications on the top menu bar, then on “Student Appraisal Guide.”

18)What Are The Continuing Education Requirements To Renew My Appraisal License or Certification?

All licenses and certifications are issued for a three year period in Maryland. 42 hours of Continuing Education (CE ) are required to renew any category of appraiser license/certification (this equates to 14 hours/year), of which 7 hours must be the National USPAP Update Course.

Note: USPAP is updated every 2 years. You are required to take the most current version of USPAP at some point in each cycle that it is updated. For example, if the last one you took was the 2008-2009 version, you are required to take the 2010-2011 version and then must take the 2012-13 version at some point before that cycle ends, etc. Since MD license renewal is on a 3 year cycle, that means that in one 3 yr renewal period you will be taking the USPAP Update course 1 time and the next cycle you will be taking it twice. As long as you always take each of the current versions, you will remain in compliance.

As of January 1, 2005, the 15 hour National USPAP Course can no longer be used to satisfy the mandatory USPAP continuing education requirements.

19)I am a Realtor as well as an appraiser and have heard the CE requirements for Realtors has changed. Can you tell me what the new requirements are and when they become effective?

Prior to 10/01/05 if you held a license for more than 10 years, 6 hours of CE were all that were required. This 10 year experience criteria has now been removed. If you were in that 10 year category and will be renewing between now and 10/01/06, you will need 7.5 hours of CE. If you renew between 10/2006 and 10/2007, you will need 9 hours of CE. Thereafter the renewal will be 15 hours every two years.<p>

Currently, 3 hours are required in legislative topics; 1.5 hours are required in fair housing; 3 hours are required in MD ethics; and the remaining hours are elective. In addition, 3 hours of NAR ethics are required every 4 years.

20)I got my appraisal license before January 1, 2003. I now want to upgrade to certified but my original 15 hour USPAP was not taught by a Certified USPAP instructor that is now required. Must I retake the 15-hour USPAP?

21)Is On-line or Distance Learning accepted in Maryland?

Currently, Distance learning or On-line education is accepted in Maryland for Continuing Education (CE) only. There is no limit as to the number of hours.

Distance/On-line education is not accepted, however, for pre-licensing or upgrade credit, (qualifying education), to obtain a license.

22)Is the 1004MC form required when doing an update?

23)I understand that appraisers who work in Baltimore City must file quarterly reports. Can you tell me what the requirements are?

Legislation was introduced in 2003 in the State Legislature by the Baltimore City Administration in response to one of the recommendations of the Baltimore City Property Flipping and Predatory Lending Task Force. The purpose of the legislation is to aid in the detection of patterns or trends that may indicate fraudulent or questionable appraisal practices and to provide an audit trail back to the appraiser. Essentially the bill requires all licensed and certified appraisers to file quarterly reports listing the address and appraised value of all 1 to 4 family residential real estate that they have appraised  for mortgage lending purposes, including refinances, in Baltimore City only, during that calendar quarter.

The Baltimore City Department of Housing and Community Development will receive and maintain these reports until such time that funding is made available to the Real Estate Appraisers Commission to establish an electronic database capable of storing the reports and to hire the necessary staff to maintain the database. The intent is to make the process quick and simple with electronic filing that utilizes our license or certification numbers. There are provisions for paper filing for those who prefer not to submit on-line.

Please visit the MD Real Estate Appraisers website at http://www.dllr.state.md.us/ then click on the quick link at the bottom for Occupational and Professional Electronic Licensing; then click on the link to Real Estate Appraisers and Home Inspectors Commission; then on the link for Baltimore City Reporting under "Important News" and follow the online filing instructions.

Significantly, the reports will be available for inspection only to representatives of government agencies for investigation of fraudulent practices. (In other words, it cannot be accessed through the Freedom of Information Act, so there is no conflict with USPAP's confidentiality rules). The bill was signed into law by the Governor, May 22, 2003.

24)Where Can I get Answers to questions that arise on FHA Appraisal Issues?

If you are stumped and looking for answers on how to handle a specific issue, you can get answers from FHA's Knowledge Base

There are over 1,300 FAQ's in the Knowledge Base and you can search by category or keyword. Appraisers can also get valuable information from the FHA Resource Center Bulletin Board. For questions, send an email to info@fhaoutreach.com and be sure to include your contact information.

If you need help with the FHA Roster, send your questions or issue to AppraiserRoster@hud.gov

Finally, if you are unable to find the answer you need, you may call the FHA Resource Center at 1-800-225-5342.

25)I heard that as of May 5, 2008, FHA has implemented a new policy regarding license/certification renewals that augments the existing policy. Can you tell me what that is?

Due to a recent audit by HUD’s Office of the Inspector General (OIG), FHA must ensure that the license or certification number listed on the FHA Appraiser Roster matches exactly with the number posted on the National Registry of the Appraisal Subcommittee (ASC).  Appraisers may visit ASC’s web page at http://www.asc.gov/  to compare their state issued license or certification number with that posted on the National Registry.  Although FHA has not yet implemented this policy of exactly matching the appraiser’s state issued license or certification number, as renewals come in our processors have begun to match the numbers exactly with that posted on the National Registry to assure timely renewals in the future.  <P>

26)How do I find out the eligibility requirements to become an FHA appraiser ?

The following link will take you directly to the FHA Roster Appraiser page that will guide you through the process.

27)I heard that you no longer need to take a special exam to perform FHA appraisals. Is this true?

Only appraisers on the FHA roster may perform required appraisals of properties that are to serve as security for FHA-insured single-family mortgages. Among other requirements, current regulations require that an applicant must be a state- licensed or state-certified appraiser and pass a HUD examination on FHA appraisal methods and reporting.  Effective February 7, 2008, the  requirement for applicants to pass a HUD test on FHA appraisal methods and reporting will be eliminated because the test has become duplicative of the new national examination requirements for state licensure and certification and, therefore, unnecessary. HUD's longstanding practice and the nationwide practice that certification or licensing comply with national criteria for education, experience, and passage of a state-administered examination still stands, however, and the appraiser must still apply to HUD for placement on the roster before becoming eligible to perform such appraisals. Click Here for a complete copy of FHA Appraiser Roster Requirements

28)Once I have been approved and placed on the FHA Roster - is there a renewal process in place to keep it current?

It is the appraiser's responsibility to provide verification of your state license or certification renewal to HUD or your name will likely be removed upon the expiration date currently on file with HUD and you will no longer be eligible to perform FHA appraisals. See important memo from the HUD website (www.hud.gov) cited below.

FHA Appraisers renewing their state license/certification and/or providing evidence of AQB compliance must submit documentation to:

U.S. Department of Housing and Urban Development
Office of Single Family Housing
451 7th Street, S.W., Room 9270
Attn: Appraisal Branch
Washington, DC 20410

Fax#: (202) 401-0416 Tel#: (202) 708-2121

Appraisers on the FHA Roster are responsible for submitting a copy of the renewed state license or certification to HUD at the Office of Single Family Housing, at the address listed above. Failure to submit the information in a timely manner may impact eligibility to receive assignments.

Important Notice

Appraisers placed on the FHA Roster will not receive a confirmation letter; however a denial letter will be sent to appraisers whose applications are determined not eligible. Appraisers should verify their placement on the roster, and the accuracy of the information posted, by going to the FHA Roster status. Appraisers who notice incorrect information should fax the corrected information to: (202) 401-0416.

29)I was on the FHA Roster prior to the requirement that I must be state certified. I was unable to complete the certification requirements prior to the November, 2009 implementation date and was dropped from the list. I have now completed all requirements and passed the certification exam. What is the reinstatement process?

30)I heard that the process for applying to the FHA Appraiser Roster changed as of May 5, 2008. Can you tell me what the current process for application is?

On May 5, 2008, FHA launched an online appraiser application process that  replaced the existing paper applications.  You may visit the following website http://www.hud.gov/offices/hsg/sfh/appr/apr_rost.cfm regarding the online application process and any applicable updates.

31)I am a licensed appraiser who has been on the FHA Appraisal roster for years. I understand that FHA is now requiring all appraisers on their roster to be state certified. Will I be grandfathered?

In short, the answer is no. Mortgagee Letter 2008-39 was issued on December 17, 2008 regarding FHA’s requirement that all appraisals for FHA will need to be completed by a State Certified Appraiser, effective October 1, 2009.

IMPLEMENTATION DATES

 Although Section 202(f) of the National Housing Act was made effective upon enactment, FHA has determined that the loss of available FHA Roster appraisers in certain locations will impede its ability to support affordable mortgage financing in those areas, which would contravene the goals of the HOPE for Homeowners Program and hinder use of other FHA single family programs at a time when use of those programs has increased significantly.  Therefore, in order to implement this change in appraiser eligibility requirements in a manner that is not disruptive to the FHA mortgage lending process, the requirement will be phased in as follows:

• Effective October 1, 2008, FHA stopped accepting applications to the FHA Appraiser Roster from licensed but uncertified appraisers.  All applicants for the FHA Appraiser Roster must be state certified (certified residential or certified general) appraisers who meet the minimum certification criteria issued by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation.  The requirements that applicants not be listed on the General Service Administration (GSA) Excluded Parties List System (EPLS), HUD’s Limited Denial of Participation List (LDP), or HUD’s Credit Alert Interactive Voice Response System (CAIVRS) remain unchanged.

• 
  

  No Later than October 1, 2009, all FHA Appraiser Roster appraisers, in all states and territories must be state certified in order to be eligible to conduct appraisals for FHA-insured mortgages and remain on the FHA Appraiser Roster. 

FHA MORTGAGEE INSTRUCTIONS:

 Commencing October 1, 2009, all FHA-approved lenders must use state certified appraisers for FHA-insured mortgages.  The appraiser assignment field within the Case Number Assignment screen in FHA Connection must be input with an appraiser who is listed as either certified residential or certified general on the FHA Roster for the state in which the property is located.  If, on or after October 1, 2009, an FHA-approved lender enters an appraisal assignment into FHA Connection for a property from a FHA Roster Appraiser who is licensed but not certified in accordance with this Mortgagee Letter, the appraisal will be unacceptable for FHA-insured financing and a second appraisal, performed by a state certified appraiser, must be completed at the lender’s expense.  

 
 When appraisal assignments (case # assignments) are given to licensed appraisers prior to October 1, 2009, but the appraisal is not completed until after that date, the appraisal will be acceptable.  However, the lender must assure that the appraisal assignment date is entered accurately into FHA Connection which must be a date prior to October 1, 2009.  In these cases, the appraisal assignment must be submitted to the lender no later than October 30, 2009.

 Appraisals that were completed by licensed appraisers prior to the deadline, which are transferred to a new lender, may be used as long as the original assignment date occurred prior to October 1, 2009.    

Appraiser Qualification Criteria

 Appraisers seeking to become state certified should review the 2008 Real Property Appraiser Qualification Criteria at:

 http://www.appraisalfoundation.org>

Applicants who meet all eligibility criteria may apply on-line at: http://www.hud.gov/appraisers>

32)I have heard that when appraising in Montgomery County or the City of Rockville, there is subsidized housing that is not readily apparent from their location that are subject to specific valuation procedures. Can you explain?

The information contained in this advisory was brought to the attention of MAA by one of our members, Christine Collins, a veteran Montgomery County Appraiser. It addresses a growing and serious problem specific to Montgomery County regarding MPDU (Moderately Priced Dwelling Unit) properties that should be taken into consideration and confirmed by all appraisers when performing an appraisal in that County.

This information is provided as an alert to our members and has not been independently verified by MAA.

• These properties CANNOT be sold on the open market until the time restraints expire.
  
• These properties CANNOT be appraised for "market value" in the conventional sense since the amount they can be sold for is dictated by the Montgomery County MPDU Office.
  
• The problem is that it is not readily apparent which properties are affected by these restrictions.

• If you are going to undertake an assignment in Montgomery County, it is incumbent upon you, the appraiser, to ensure which properties are, and are not, impacted by these restrictions and that you have the necessary experience and competence to accurately appraise them.(USPAP Standards Rule 1-2(e)(iv))
  
• When appraising these properties for a sale, all comps MUST be obtained from the MPDU Office.
  
• The MPDU Office will provide you with sales of similar properties that have occurred within the county, along with their interior amenities, sales price, and settlement dates.
  
• The appraiser MUST utilize the comps provided by the MPDU Office.
  
• There are specific procedures that MUST be adhered to with regard to adjustments and the final determination of value. It is therefore imperitive that you check with the County office at the beginning of each assignment.
  

 Christine goes on to say that "as far as refinancing goes, I have not found a lender that will refinance these properties. In the past, I have been asked to appraise an MPDU property, but once I discover that it is an MPDU property and relay my findings to the lender, the lender will cancel the order. I have been told over the years by the homeowners of MPDU's that they have had their homes appraised, and that the appraiser has ignored the MPDU status. As most MPDU properties cannot be valued over $120,000, this can result in a very costly violation by an over-valued appraisal."

Whether this is intentional or unintentional, appraising such properties without the sales restrictions disclosed and the required method of valuation employed is a violation of USPAP (Standards 1 and 2 as illustrated by Advisory Opinion 14) that can result in serious disciplinary action.

In addition to Montgomery County's MPDU's, the City of Rockville has a separate MPDU program which has its own guidelines and restrictions.

 Because these properties are reportedly found throughout the county and city and are not readily apparent from their location, each assignment should include a check with the appropriate County or City office to determine if your assignment is affected by MPDU restrictions. Make sure you have the necessary competence.

The following websites are important resources that further address MPDU properties.

To verify if a property is in fact designated as a MPDU click here:

Both sites are a must if you are appraising in Montgomery County! Do not ignore these restrictions - It can be a very costly mistake.

33)Does Maryland observe reciprocity?

Maryland has reciprocity agreements with several states. Application for a reciprocal license or certificate shall be submitted directly to the Maryland Real Estate Appraisers Commission with a copy of a current and valid license or certificate from the other state and an original letter of certification which verifies good standing in the other state. The Maryland Real Estate Appraisers Commission, however, does not recognize on-line or correspondence courses for the purpose of Qualifying Education.

As of spring 2006, Maryland  is no longer reciprocal with Virginia or the District of Columbia. It has not been reciprocal with Pennsylvania for some time. For more information, please contact Patty Schott.

For more information or to request an application contact Patricia Schott at (410) 230-6165.

34)How Do I Obtain a List of Planning and Development Office Contacts in Maryland?

35)Volunteer Expert Review Appraiser (VERA) Roster

36)Have a complaint about a certain lender? Contact the following agencies for help.

• National Banks are regulated by the Office of the Comptroller of Currency (OCC). The lender is a "National Bank" if it has those words in its title or if it has letters "N.A." after its name. You can obtain information about filing a complaint by calling the OCC at (800) 613-6743 or (202) 874-5000.
• Federal Savings Banks are regulated by the US Treasury's Office of Thrift Supervision (OTS). A Federal Savings Bank has the letters "F.S.B" or "F.A." after its title. You can register a complaint by calling (202) 906-6000 or write to Compliance and Consumer Affairs, O.T.S., 1700 G Street, NW, Washington, D.C. 20052.
• Mortgage companies - complaints can be filed with the Director of Compliance, State Commissioner of Finance Regulation, 500 N. Calvert Street, Suite 400, Baltimore, MD 21202. State regulators will also accept your call at (410) 333-6808.
• Credit Unions - National Credit Union Administration (NCUA) - (703) 518-6300.
• Federal Reserve (202) 452-3000.
• Federal Deposit Insurance Corporation (FDIC) (202) 393-8400.
• Appraisal Subcommittee (ASC) (202) 634-6520. http://www.asc.gov
• The Appraisal Foundation (TAF) 202-347-7722. http://www.appraisalfoundation.org
• FBI - To report potential mortgage fraud, flipping or other suspicious activity, please direct your concerns, issues, or complaints to the Supervisor for Mortgage Fraud at the Baltimore FBI office, 410-265-8080.

In every case, complete, clear, and concise documentation of the problem or complaint is essential to assist the Federal or State agency to efficiently resolve the matter.

37)How Can I Make A Difference in the Appraisal Profession

Suggestions on communicating with your state legislators (reprinted with permission- Chesapeake Bay Foundation)

• Editors note: The Maryland Appraisers Coalition (MAC) and The Maryland Association of Appraisers (MAA) maintain a presence in Annapolis and have contacts in Washington, D.C. To get the latest details on issues/legislation affecting appraisers and to maximize the effect of your communication with your legislator, we recommend you first contact us at 410 557-6903.
• Who is my state legislator? To find the name of your state senator or delegate, call your county's board of elections.
• What are some ways I can influence my legislator? Call your legislator; write a letter; meet with your legislator; write an editorial to the newspaper; send your legislator information about your issue; if you belong to a professional or community group, invite your legislator to attend a meeting; attend events in which legislators will be present; if they support your concerns, help them get re-elected by working on their campaign.
• What should I do when I telephone my legislator? Ask to speak to your legislator, identifying yourself by name and stating that you are a constituent. If your legislator is unavailable, ask to speak to a staff member who handles your issue; don't be surprised if you can't reach your legislator by phone. Leave a message and state your position on the bill; make note of the name and title of the person with whom you speak; explain your viewpoint clearly, concisely, and positively; ask your legislator's position. Be firm in obtaining commitment; be reasonable. Do not be abusive and never threaten.
• What do I need to know about writing my legislator? Keep your letter short; type or write clearly; write in your own words; cover only one issue; clearly identify your issue by bill number if available (hundreds of bills are introduced each session); state your reason for writing (use personal experiences to briefly illustrate your viewpoint); be factual and support your position with information about how legislation is likely to affect you and others; avoid emotional, philosophical arguments; if you believe legislation is wrong and should be opposed, say so. Indicate the likely adverse affects and suggest a better approach; ask your representative for a commitment; thank elected officials when you are pleased. When you disagree with a vote, let that be known also.
• What is the proper way to address correspondence to my legislator? Depending on whether you are addressing a Senator or a Delegate, the following format and address should be used:

1. The Honorable (name of Senator)
   James Senate Office Building
   Annapolis, MD 21401-1991
2. The Honorable (name of Delegate)
   Lowe House of Delegates Office Building
   Annapolis, MD 21401-1991

38)How do I order FEMA Flood Maps or check to see if I am using the most current update?

Call FEMA at (800) 358-9616 or use our link www.fema.gov/fema/csb.htm to visit their website.

Harford County Appraisers Town of Bel Air Flood Plain Info Alert - Certain areas of Bel Air had been incorrectly identified as lying within the 100-year floodplain. The Town of Bel Air Planning Department will determine the proximity of Special Flood Hazard Areas for properties located within the Town limits based on Flood Insurance Rate Maps. Avoid potential liability and mistakes- take advantage of this service and verify information when appraising inside town limits. Call (410) 879-9500/9507. You may also wish to inquire as to the availability of updated maps for use in your office.

Or, try this very flexible Commercial Database to create a variety of professional custom maps that easily integrate into narrative or form reports.

 MapPro

www.mapproinc.com or call 1-866-362-7776 and ask for Deanna Ragon, Ext 116

Used by Residential and Commercial Appraisers, Brokers, Agents, Bankers, and More 

-ability to generate high quality, remarkably accurate and up-to-date seamless Location Maps, Flood Maps and Hazard Maps for all 50 states plus the District of Puerto Rico

-MapPro integrates directly with Google Earth Pro for aerials nationwide

-save map images in 7 different file formats

-save your excel, Microsoft access and any dbf database in the data base utility

-private map layer to create any special mapping need

-full geo-coding capabilities

-landscape or portrait orientation of maps

-annotate maps with all types of text, symbols etc.

-search by zip code, intersection, address, census tract or city

-full set of drawing tools

-calculates distance and direction to the Subject

-display and print informative census 2000 demographic profiles for any town, city or county

-capability to change arrows and to move arrows around

-We are fully interfaced with ACI, Bradford (Clickforms) and Software for Real Estate Professionals. Through these partnerships you can now get your data transferred to your appraisal forms! The FEMA zone, panel, census tract, proximity to subject and the maps are automatically sent to your appraisal report.

39)How do I obtain information on Radon Gas levels in Maryland?

Although the State of Maryland does not require radon testing of homes before they are sold, the Seller Property Condition form specifically identifies radon gas as one of the material facts which must be disclosed by the seller. If you are in any area of the state (such as Harford County) that is known for high EPA risk levels of radon gas, you need to identify this potential environmental risk factor in the appraisal. Average radon levels are generally tracked by Zip code. To obtain what information may be available for your Subject area, contact the National Safety Council Radon Helpline at 1-800-557-2366 or check with Environmental Services in your local Health Department. Some Counties have produced GIS maps depicting this information.