IDAHO REAL ESTATE APPRAISER BOARD

Bureau of Occupational Licenses

1109 Main Street, Suite 220

Boise, ID 83702-5642 

Board Meeting Minutes of 10/20/2008

BOARD MEMBERS PRESENT:  Rick Alan Bachmeier - Chair

                                                             Paul J. Morgan

                                                             Patricia Lentz

                                                             Kenneth W Nuhn

                                                             Jack R Van Wyk

BUREAU STAFF:                           Tana Cory, Bureau Chief

                                                            Budd Hetrick, Deputy Bureau Chief

                                                            Dawn Hall, Deputy Bureau Chief

                                                            Marcie McGinty, Investigations Coordinator

                                                            Roger Hales, Administrative Attorney

                                                            James Stoll, Administrative Attorney

                                                            Karl Klein, Deputy Attorney General

                                                            Maria Brown, Technical Records Specialist

OTHERS PRESENT:                     Bill Polfer

                                                            John Cochran

                                                            Greg Villanueva

                                                            Adam Fullmer

Meeting was called to order at 8:30 AM MDT by Rick Alan Bachmeier.

APPROVAL OF MINUTES

The Board reviewed the 8/11/2008 minutes.

It was moved by Ms. Lentz to approve the 8/11/2008 minutes with an amendment. Seconded by Mr. Van Wyk, motion carried.

LEGISLATIVE REPORT

Ms. Cory gave the legislative report.

FINANCIAL REPORT

Ms. Hall presented the financial report, which indicates a cash balance of $61,089.79 as of 9/30/2008. The Board discussed the budget request form for 2011 and stated that there may need to be a fee increase in the future.

FORMAL DISCIPLINARY ACTION

Mr. Klein presented the Board a Stipulation and Consent Order for case REA-2006-6. 

Mr. Nuhn recused himself from any discussion or action. It was moved by Ms. Lentz to reject the Consent Order for REA-2006-6 to

insure consistency within disciplinary cases.  Seconded by Mr. Morgan, motion carried.

Mr. Klein presented the Board a Stipulation and Consent Order for case REA-2007-141. 

It was moved by Mr. Morgan to accept the Consent Order for REA-2007-141 and authorize the Board Chair to sign on behalf of the Board. 

The Board reserved the right to ask the respondent to submit work products for review. Seconded by Ms. Lentz, motion carried.

Mr. Klein presented the Board a Stipulation and Consent Order for case REA-2007-146. 

It was moved by Ms. Lentz to accept the Consent Order for REA-2007-146 and authorize the Board Chair to sign on behalf of the

Board.  Seconded by Mr. Morgan, motion carried.

Mr. Klein presented the Board a Stipulation and Consent Order for case REA-2008-52. 

It was moved by Ms. Lentz to accept the Consent Order for REA-2008-52 and authorize the Board Chair to sign on behalf of the

Board.  Seconded by Mr. Morgan, motion carried.

INVESTIGATIVE REPORT

For Board Determination:

I-REA-2007-54 C alleges R's report reflected inflated value and was not substantiated by current market, and that the report appeared to be very suspicious. INV revealed that R violated Ethics, Standard 1, and Standard 2 of 2006 USPAP.  R did not provide copies of his work and is in violation of the Record Keeping requirements of USPAP and of 54-4109. IBOL records confirm that R's license has cancelled and that mail is being returned to sender. IBOL recommends the Board authorize closure with a flag on the record. Attempts to reinstate will require compliance with a prior consent order and a response to this matter.

Case number 1-REA-2007-54:  Following review, it was moved by Ms. Lentz to accept the Bureau’s recommendation for closure with a flag on the record. If the respondent attempts to reinstate their license, they will be required to respond to this matter. Seconded by Mr. Nuhn, motion carried.

I-REA-2007-55 C alleges that R completed an appraisal outside the scope of licensure, noting that the report appeared to be a complex appraisal.  INV revealed the R admitted that the subject property was a complex assignment and contends the transaction value was less that $250,000.  The DAG was consulted concerning the issue and the lack of definition in the REA Laws and Rules. At its meeting on 8-11-08, the REA Board reviewed correspondence from the ASC regarding “transaction value” and determined that it must accept the federal definition of “transaction value” found at 12 CFR Part 364.3(k), which, in part, defines “transaction value” as the amount of the loan.  In this case, although the appraisal was complex, the loan amount was less than $250,000, so it appears that R (who was an LRA at the time of the appraisal) was acting within the scope of his licensure. Based on the ASC information and DAG review, IBOL recommends the Board authorize closure.

Case number 1-REA-2007-55:  Following review, it was moved by Ms. Lentz to accept the Bureau’s recommendation for closure. Seconded by Mr. Nuhn, motion carried.

I-REA-2007-75 R failed to respond to a CE audit. Sent certified demand letter for response. No response. Sent 2nd certified letter requesting CE documentation. R submitted a letter advising that R had been out of the country and provided documentation of CE confirming that the requirement had been met. IBOL recommends the Board authorize closure.

Case number 1-REA-2007-75:  Following review, it was moved by Mr. Van Wyk to accept the Bureau’s recommendation for closure. Seconded by Mr. Morgan, motion carried.

I-REA-2008-31 R failed to respond to a CE Audit. Sent certified letter and R did not respond. IBOL subsequently received notification of R's retirement and license was cancelled. IBOL recommends the Board authorize closure. Record will be flagged should R attempt reinstatement.

Case number 1-REA-2008-31:  Following review, it was moved by Mr. Van Wyk to accept the Bureau’s recommendation for closure. Seconded by Ms. Lentz, motion carried.

I-REA-2008-56 R was required to obtain 15 hours of CE and show proof of a 7 hour USPAP Update course within two years. Sent certified letter requesting previous USPAP docs. R provided documentation of the required USPAP course. IBOL recommends the Board authorize closure.

Case number 1-REA-2008-56:  Following review, it was moved by Mr. Nuhn to accept the Bureau’s recommendation for closure. Seconded by Ms. Lentz, motion carried.

I-REA-2008-58 R was required to obtain 15 hours of CE and show proof of a 7 hour USPAP Update course. Documentation submitted by R shows that 1 class was completed 3 days outside the audit period. R also submitted proof of USPAP compliance and a letter noting a misunderstanding with the audit period. Subsequent documentation for the following renewal confirmed compliance with the requirement. Based on R's good faith effort to comply, IBOL recommends the Board authorize closure with an advisory letter regarding the requirements.

Case number 1-REA-2008-58:  Following review, it was moved by Mr. Nuhn to accept the Bureau’s recommendation for closure. Seconded by Ms. Lentz, motion carried.

I-REA-2008-65; 66; 74; 84 R failed to respond to the CE Audit. Sent certified letter requesting response. No response was received. IBOL records show that R's license expired and has not been renewed. IBOL recommends the Board authorize closure as CE documentation will be required upon reinstatement.

Case number I-REA-2008-65; 66; 74; 84:  Following review, it was moved by Ms. Lentz to accept the Bureau’s recommendation for closure. Seconded by Mr. Nuhn, motion carried.

I-REA-2008-79 R was required to obtain 15 hours of CE and show proof of a 7 hour USPAP Update course.  R did not complete the 15 hours of required CE. R provided documentation showing CE was obtained after audit period but before expiration. R also noted a belief that the audit period was based on the expiration date rather than the renewal date. Based on R's documentation and good faith effort, IBOL recommends the Board authorize closure with an advisory letter regarding the audit dates.

Case number 1-REA-2008-79:  Following review, it was moved by Mr. Nuhn to accept the Bureau’s recommendation for closure. Seconded by Mr. Van Wyk, motion carried.

Mr. Hetrick presented the Board a status report of all pending cases currently at the Attorney General’s Office.

Ms. McGinty presented the Board a Settlement Order for case: REA-2008-31.

It was moved by Ms. Lentz to accept the Settlement Order for REA-2008-31 and authorize the Board Chair to sign on behalf of the

Board.  Seconded by Mr. Nuhn, motion carried.

Ms. McGinty presented the Board Settlement Orders for cases: REA-2009-12, 8, and 9.

It was moved by Ms. Lentz to accept the Settlement Orders for REA-2009-12, 8, and 9 and authorize the Board Chair to sign on behalf

of the Board.  Seconded by Mr. Nuhn, motion carried.

Ms. McGinty presented the Board a Settlement Order for case: REA-2009-3.

Ms. Lentz directed staff to send a letter to McKissock requesting verification that the individual took the submitted continuing education course. 

Ms. McGinty presented the Board Settlement Orders for cases: REA-2009-7 and 2.

It was moved by Ms. Lentz to reject the Settlement Orders for REA-2009-7 and 2 and direct staff to renegotiate the orders to include suspensions. Seconded by Mr. Nuhn, motion carried.

Ms. McGinty presented the Board case: REA-2007-140.

It was moved by Ms. Lentz to direct staff to send the respondent a letter outlining the issues found within their work product for

REA-2007-140. The letter should be reviewed by counsel prior to sending it. Seconded by Mr. Van Wyk, motion carried.

The Board stated that if the reviewing Board member has concerns with a work product, they are to write a letter to Ms. McGinty outlining

their concerns. Ms. McGinty will then draft the licensee a letter, signed by staff, and send it. If the violations are egregious, a case will be opened.

Mr. Hales presented the Board a petition for reconsideration in regard to disciplinary case: REA-2008-9.

EXECUTIVE SESSION

It was moved by Mr. Morgan that the Board enter executive session to speak with legal counsel about possible litigation which is exempt from public disclosure per Idaho Code 67-2345 (1) (f).  Ayes were: Mr. Morgan, Mr. Bachmeier, Mr. Nuhn, Mr. Van Wyk, and Ms. Lentz, motion carried.

It was moved by Ms. Lentz that the Board enter regular session. Ayes were: Mr. Nuhn, Ms. Lentz, Mr. Morgan, Mr. Van Wyk, and Mr. Bachmeier, motion carried.

It was moved by Mr. Morgan to approve the petition for reconsideration requesting to withdraw and expunge the record and remove the discipline from the Real Estate Appraiser website for REA-2008-9. Seconded by Mr. Van Wyk, motion carried.

Mr. Hales addressed the Board regarding case: REA-2007-10.

EXECUTIVE SESSION

It was moved by Ms. Lentz that the Board enter executive session to speak with legal counsel about possible litigation which is exempt from public disclosure per Idaho Code 67-2345 (1) (f).  Ayes were: Mr. Morgan, Mr. Bachmeier, Mr. Nuhn, Mr. Van Wyk, and Ms. Lentz, motion carried.

It was moved by Mr. Nuhn that the Board enter regular session. Ayes were: Mr. Nuhn, Ms. Lentz, Mr. Morgan, Mr. Van Wyk, and Mr. Bachmeier, motion carried.

It was moved by Mr. Nuhn to take a position in support of the hearing officer’s findings of fact, dismissing the complaint for REA-2007-10. Seconded by Mr. Morgan, motion carried.

Mr. Hales presented the Board a petition for reconsideration in regard to disciplinary case: REA-2008-41.

EXECUTIVE SESSION

It was moved by Ms. Lentz that the Board enter executive session to speak with legal counsel about possible litigation which is exempt from public disclosure per Idaho Code 67-2345 (1) (f).  Ayes were: Mr. Morgan, Mr. Bachmeier, Mr. Nuhn, Mr. Van Wyk, and Ms. Lentz, motion carried.

It was moved by Mr. Nuhn that the Board enter regular session. Ayes were: Mr. Nuhn, Ms. Lentz, Mr. Morgan, Mr. Van Wyk, and Mr. Bachmeier, motion carried.

It was moved by Mr. Morgan to approve the petition for reconsideration requesting to withdraw and expunge the record and remove the discipline from the Real Estate Appraiser website for REA-2008-41. Seconded by Mr. Van Wyk, motion carried.

Mr. Hales presented the Board correspondence regarding case number REA-2007-34.

It was moved by Mr. Morgan to schedule an additional litigation hearing for REA-2007-34 to be recorded. Seconded by Mr. Nuhn, motion carried.

Mr. Hales presented the Board with a letter that he drafted to Mr. Richard B. Eismann. Mr. Van Wyk recused himself from any discussion or action.

It was moved by Ms. Lentz to approve the Consent Order for REA-2006-1 and authorize the Board Chair to sign on behalf of

the Board.  Seconded by Mr. Nuhn, motion carried.

RECIPROCAL AGREEMENTS

The Board addressed requests for reciprocal agreements from Indiana, Arizona, Connecticut, and New York. To maintain consistency, Mr. Hales stated that he will send each state an Idaho reciprocal agreement.

It was moved by Mr. Morgan to approve sending the reciprocal agreements to Indiana, Arizona, and Connecticut and direct counsel to review the rules and laws for New York and bring the information back to the Board during the next Board meeting. Seconded by Mr. Van Wyk, motion carried.

The Board would like a list of the reciprocal states added to their board folders.

OLD BUSINESS

The Board reviewed the to do list.

The Board then reviewed the Pearson Vue report.

The Board discussed the fall 2008 AARO conference.

NEW BUSINESS

The Board discussed an e-mail question regarding a personal property question.

The Board reviewed the Appraisal Subcommittee policy statement 10G.

The Board would like a statement added to the website that states, “There will be no additional rules submitted for the 2009 session.”

The Board reviewed correspondence from the Appraisal Foundation.

FUTURE BOARD MEETINGS

The Board set the 2009 Board meeting schedule:

February 9, 2009

April 13, 2009

June 15, 2009

August 10, 2009

October 19, 2009

December 14, 2009

The Board asked staff to e-mail the Board meeting schedule for 2009 to the Board.

PROVIDER APPLICATIONS

The Board approved the following provider course applications:

APPROVED

APPRAISAL INSTITUTE

            ONLINE SUPERVISING APPRAISAL TRAINEES - 4 - CE

            ONLINE RATES AND RATIOS: MAKING SENSE OF GIMS, OARS, AND DCF - 7 - CE

            VALUATION OF GREEN RESIDENTIAL PROPERTIES - 7 - CE

            ONLINE GIS: THE NOVICE CASE STUDY - 7 - CE

            ONLINE 7 HOUR NATIONAL USPAP EQUIVALENT COURSE (2008-2009) - 7 - CE

            CONDEMNATION APPRAISING: PRINCIPLES & APPLICATIONS - 22 - CE

            SUBDIVISION VALUATION - 7 - CE

            GENERAL APPRAISER MARKET ANALYSIS & HIGHEST & BEST USE - 30 - PL/CE

ASFMRA

            WINTER MEETING - IDAHO / UTAH CHAPTER OF AMERICAN SOCIETY OF FARM MANAGER & RURAL APPRAISERS - 7 - CE

ASFMRA - WA CHAPTER

            WA CHAPTER ASFMRA 2008 FALL MEETING - 10 - CE

MCKISSOK LP

            LAND AND SITE VALUATION - 7 - CE

            LAND AND SITE VALUATION - 8 - CE

NATIONAL ASSOCIATION OF INDEPENDENT FEE APPRAISERS

            11.8A CALCULATING GROSS LIVING AREA USING ANSI STANDARDS - 4 - CE

THE COLUMBIA INSTITUTE

            FHA TODAY - 8 - CE

            APPRAISING REO / FORCLOSURES - 8 - CE

It was moved by Ms. Lentz to approve the listed courses. Seconded by Mr. Morgan, motion carried. Specific course descriptions can be found on the Idaho Real Estate Appraiser website. 

EXECUTIVE SESSION

It was moved by Ms. Lentz that the Board enter executive session to review applications which are exempt from public disclosure per Idaho Code 67-2345 (1) (d).  Ayes were: Mr. Nuhn, Ms. Lentz, Mr. Morgan, Mr. Van Wyk, and Mr. Bachmeier, motion carried.

It was moved by Ms. Lentz that the Board enter regular session. Ayes were: Mr. Nuhn, Ms. Lentz,

Mr. Morgan, Mr. Van Wyk, and Mr. Bachmeier, motion carried.

APPLICATIONS

Approved for Exam

It was moved by Ms. Lentz to approve the following applicants for examination:  

GOUGH THOM E - CRA

HIGLEY JACOB S - CRA

POLFER WILLIAM PAUL - CRA

SHELAMER STEVEN M - CRA

SHIVELY DANIEL TORGER - CGA

Seconded by Mr. Morgan, motion carried.

 Pending

It was moved by Ms. Lentz to deny the following applicants pending further information:

901042423

901090885

901062028

901089832

901039611

901079464

Seconded by Mr. Morgan, motion carried.

NEXT MEETING 12/8/2008

It was moved by Ms. Lentz that the meeting adjourn at 4:40 PM MDT. Seconded by Mr. Morgan, motion carried.