1 Ohio Coalition of Appraisal Professionals 2018 Annual Summer Seminar Ohio Division of Real Estate & Professional Licensing Anne M. Petit, Superintendent John McIntyre, OREAB Chairman Ed Woodruff, Staff Attorney Shannon Drawns, Enforcement Chief Safe. Sound. Secure.
2 Overview of your division, how it The Ohio Department of plays a role in Commerce as a Commerce is focused on whole, etc. equipping businesses and protecting consumers. Commerce has seven Divisions including Real Estate & Professional Licensing Our goal is to keep Ohioan’s safe, sound and secure. Safe. Sound. Secure.
3 Ohio Appraisers By the Numbers Credentials 328 518 1044 Trainees ALR ACR ACG 1345 Safe. Sound. Secure.
*New* Appraisers Licensed/Certified Licensed/Certified 400 348 350 300 250 175 200 173 142 126 150 162 101 87 134 100 80 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* Licensed/Certified Safe. Sound. Secure.
5 5 1 2 2 3 33 3 1 1 5 8 1 3 2 2 1 11 7 PA 1 4 1 3 1 1 3 5 2 9 1 IN 1 1 1 3 5 4 2 5 1 1 16 1 5 1 7 0 1 62 1 11 ARAs 3 2 6 1 3 11 3 Athens 1 17 1 2 WVa 1 6 1 2 3 1 KY 1 2
1 * 2 * * 16 1 1 1 * 1 5 * 1 1 1 1 * 1 * 2 1 * 1 1 2 1 * * * 2 1 * 4 * 2 1 18 1 * 3 1 * * 5 2 * * * * 1 1 7 * * No ARA 1 1 2 # ARAs w/o 1 2 1 Sup’r 1 *
Changes to Credential Criteria • Appraiser Qualifications Board changes effective 5/1/18 • OREAB adopted policy to implement same standards • What changed? • Education requirements • Experience requirements Safe. Sound. Secure.
Changes to Credential Criteria - Education EDUCATION • No college-level education for licensed residential • Alternatives to bachelor’s degree for certified residential • Associates degree in certain fields • 30-semester hrs in certain courses • College Level Examination Program (CLEP) • Combination of courses and CLEP • ALR – 5 yrs minimum and NO license limiting discipline Safe. Sound. Secure.
Changes to Credential Criteria Safe. Sound. Secure.
Enforcement Safe. Sound. Secure.
Enforcement 160 140 124 122 120 97 100 86 79 80 91 86 62 83 74 76 60 42 54 40 41 27 24 36 16 16 20 11 10 5 8 0 5 2011 2012 2013 2014 2015 2016 2017 2018 Complaints Cases Charged Safe. Sound. Secure.
Enforcement 2016 2017 79 Complaints 42 Complaints Consumers Consumers Lenders/AMCs/Reviewer Superintendent Actions s Lenders/AMCs/Reviewer Superintendent Actions s Safe. Sound. Secure.
Enforcement 2016 2017 83 Cases Opened 41 Cases Opened 68 Cases Closed 73 Cases Closed 5 Cases Charged 11 Cases Charged 61 NFAs 64 NFAs Safe. Sound. Secure.
Enforcement What Investigations Are Revealing: • Inaccurate comp reporting • Appraiser making changes to a subordinate appraiser’s report without subordinate’s knowledge • Certification issues • Incorrect inspection statements • Failure to document/explain adjustments Safe. Sound. Secure.
Enforcement What Investigations Are Revealing: • Work order issues • External obsolescence • ACGs – be careful doing residential • Work file issues Safe. Sound. Secure.
Enforcement • Downward trend in enforcement actions in recent years • Sanctions for enforcement actions • Last Revocation case involving appraisals was in 2015 Safe. Sound. Secure.
Enforcement • Call from Fannie Mae • Involved appraisals completed by one appraiser in 2012 • Former appraiser was appearing in appraisal reports completed by active Ohio appraiser • Also concern about volume of appraisals completed Safe. Sound. Secure.
Enforcement • Team of individuals • Took sampling of work from a two-week period • 142 different appraisals • Resulted in 58 different charges - Misleading reports – inspection and assistance, and work file violations - Resulted in a “Goldman hearing” Safe. Sound. Secure.
Appraisal Management Companies Sub. HB 213 • ORC 4763 – “clean up” • Written report requirements if for AMC: o AMC information o Actual fee received for the assignment o If employee of AMC, a statement to that fact Safe. Sound. Secure.
Appraisal Management Companies Sub. HB 213 • New Chapter - ORC 4768 • Defines • Terminology • Activities requiring a license • Exemptions from licensure • Sets out OREAB/Superintendent duties • Required • Permissible Safe. Sound. Secure.
H.B. 213 Appraisal Management Companies • Sets out requirements for license • Application and renewal processes • Criminal history checks • Basis for refusing a license • How an AMC may terminate an appraiser • Record retention requirements Safe. Sound. Secure.
H.B. 213 Appraisal Management Companies • List of “Shall Not’s” • Compensation • In a timely manner • In compliance with presumptions of C&R • Complaint and enforcement processes • Disciplinary actions available • Spells out which violations are felonies, which are misdemeanors Safe. Sound. Secure.
Ohio Division of Real Estate & Professional Licensing 77 S. High St. 20 th Floor Columbus, OH 43215 Safe. Sound. Secure.
Questions? Anne M. Petit, Superintendent Ed Woodruff, Staff Attorney Shannon Drawns, Enforcement Chief Ohio Division of Real Estate & Professional Licensing Webreal@com.state.oh.us 614-466-4100 Follow us on Twitter: @OHDIVRealEstate Safe. Sound. Secure.
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