IDAHO REAL ESTATE APPRAISER BOARD

Bureau of Occupational Licenses

1109 Main Street, Suite 220

Boise, ID 83702-5642 

 

Board Meeting Minutes of 4/13/2009

 

 

 

 

BOARD MEMBERS PRESENT:  Rick A. 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

                                                            Marcie, McGinty, Appeals Hearing Coordinator

                                                            Roger Hales, Administrative Attorney

                                                            Mike Gilmore, Deputy Attorney General

                                                            Maria Brown, Technical Records Specialist

                                                     

 

 

OTHERS PRESENT:                     Kyle McGarry

                                                            Tyler Martin

                                                            Ross Park

                                                            George Haney

                                                            Brian Theiler

                                                            Greg Greenlee

                                                            Adam Fullmer

                                                            Greg Villanueva

                                                           

 

                                   

Meeting was called to order at 8:35 AM MDT by Rick A. Bachmeier.

 

 

APPROVAL OF MINUTES

 

The Board reviewed the 2/5/2009 minutes.

 

It was moved by Mr. Morgan to approve the 2/5/2009 minutes as written. Seconded by Ms. Lentz, motion carried.

 

 

FINANCIAL REPORT

 

Mr. Hetrick presented the financial report, which indicates a cash balance of $7,149.94 as of 3/31/2009. The Board discussed raising fees and asked staff to bring a future projections report to the next Board meeting which should include expenditures and revenue. The Board would like the information to show the Legislature that fee increases are necessary.

 

 

FORMAL DISCIPLINARY ACTION

 

Mr. Gilmore presented a memorandum for case REA-2008-68. 

 

It was moved by Ms. Lentz to close case REA-2008-68 with an advisory letter in regard to the reporting requirements for listings of a property outlined in USPAP.Seconded by Mr. Nuhn, motion carried.

 

Mr. Gilmore presented a memorandum for case REA-2008-71 and REA-2008-72. 

 

After review, the Board presented their recommendations to the Office of the Attorney General.

 

Mr. Gilmore presented a memorandum for case REA-2008-73. 

 

Ms. Lentz recused herself from any discussion or action.

 

After review, the Board agreed with the recommendations of the Office of the Attorney General.

 

Mr. Gilmore presented a memorandum for case REA-2008-75. 

 

After review, the Board agreed with the recommendations of the Office of the Attorney General.

 

Mr. Gilmore presented a memorandum for case REA-2008-76. 

 

Ms. Lentz recused herself from any discussion or action.

 

After review, the Board presented their recommendations to the Office of the Attorney General.

 

Mr. Gilmore presented the Board a Stipulation and Consent Order for case REA-2008-39. 

 

It was moved by Mr. Morgan to accept the Consent Order for REA-2008-39 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 Mr. Nuhn, motion carried.

 

Mr. Gilmore presented the Board a Stipulation and Consent Order for case REA-2008-70. 

 

It was moved by Ms. Lentz to accept the Consent Order for REA-2008-70 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 Mr. Nuhn, motion carried.

 

 

MITIGATION HEARINGS

 

Ms. McGinty presented the Board a Petition for Reconsideration for case REA-2007-140.

 

It was moved by Mr. Morgan to approve the Petition for Reconsideration for REA-2007-140. Seconded by Mr. Nuhn, motion carried.

 

Ms. McGinty presented the Board a Petition for Reconsideration for case REA-2005-7 and REA-2008-24.

 

Mr. Morgan recused himself from any discussion or action.

 

It was moved by Mr. Van Wyk to approve the Petition for Reconsideration for REA-2005-7 and REA-2008-24 as of 12/10/2008. Seconded by Mr. Nuhn, motion carried.

 

 

DISCIPLINARY LOGS

 

The Board discussed the purpose of reviewing experience logs in terms of discipline. The Board discussed the difference between the experience log requirements for obtaining a license verses an experience log requirement for discipline. Mr. Hales stated that the disciplinary experience logs should be reviewed for an educational basis only.

 

Ms. McGinty presented the probationary report. The Board stated that instead of disciplinary logs, they would like staff to send a letter to the respondent within 30 days of completing their education and ask for a work product that deals with the issues of the consent order.

 

 

INVESTIGATIVE REPORT

 

Mr. Hetrick presented the investigative report.

 

For Board Determination:

 

I-REA-2008-103 C alleged that R's appraisal under valuated the C's property and included the wrong square footage. INV revealed R explained the square footage is the same as the county square footage once the stairwell is subtracted from the total as required by the guidelines.  C provided a brokers' price opinion using comparables that were either dated-older sales, dropped their list price below the R appraised value of the subject and still did not sell, or were not comparable due to the type of sale or quality.  INV did not reveal evidence to support the allegations or a violation.  IBOL recommends the Board authorize closure.

 

Case number 1-REA-2008-103:  Following review, it was moved by Mr. Morgan to accept the Bureau’s recommendation for closure. Seconded by Ms. Lentz, motion carried.

 

I-REA-2008-117/118 C alleged that the R did an appraisal with numerous problems.  The R marked that the R did inspect the interior and exterior of the subject and the C is stating the R did not. INV revealed the errors found were minor in detail and the R acknowledged that they did not closely check the minor data that the trainee had entered but spent more time in the areas of adjustments and value.  Once the errors were identified a second/revised report was submitted to the client. The trainee has allowed their license to expire and is no longer in the appraisal field. IBOL recommends the Board authorize closure with an advisory letter.

 

Case number 1-REA-2008-117/118:  Following review, it was moved by Mr. Morgan to accept the Bureau’s recommendation for closure. Seconded by Ms. Lentz, motion carried.

 

 

OLD BUSINESS

 

 

CORRESPONDENCE

 

Mr. Hales presented the Board with a letter from Mr. George Haney and explained the history of case REA-2007-121.  The Board will be given all of the documents to render a decision.

 

Mr. Haney addressed the Board regarding his letter.

 

 

HVCC

 

Mr. Hales presented the memo prepared by James Stoll regarding the Home Valuation Code of Conduct. The Board will not take a position at this time, but asked that information on HVCC be linked to the minutes.

 

 

AMC

 

The Board asked Mr. Hales to research other states that are regulating Appraisal Management Companies to see if the Board should take any action at this time. Ms. Lentz stated that she would forward AMC information to Mr. Hales.

 

 

PROPOSED RULE CHANGES

 

Mr. Hales discussed proposed rule changes that the Board had tabled throughout the year to be submitted in August of 2009. Mr. Hales will continue working on these proposed rules and bring them to the Board during their next Board meeting.

 

 

LEGISLATIVE REPORT

 

Mr. Hales gave the legislative report.

           

 

NEW BUSINESS

 

 

CORRESPONDENCE

 

Mr. Hales addressed an e-mail regarding the House Bill 169.

 

The Board discussed the e-mail correspondence from Craig Butterfield regarding the Home Valuation Code of Conduct. The Board asked that links be added to the minutes for frequently asked questions and myths of HVCC.

 

http://www.magnetmail.net/images/clients/Appraise/attach/FannieMae_HVCC_FAQs.pdf

 

http://www.freddiemac.com/singlefamily/hvcc_faq.html

 

http://www.magnetmail.net/images/clients/Appraise/attach/HVCC_Myths_Final2.pdf

 

 

ADMINISTRATIVE REVIEWS

 

The Board addressed out of state appraisers doing administrative reviews who are not licensed Real Estate Appraisers in Idaho.  A technical review, standard 3 of USPAP, and a change in value, requires a license in Idaho.

 

 

COLLEGE REQUIREMENT

 

The Board stated that applicants for licensure can fulfill the college requirement online through accredited colleges and universities.

 

 

BPO

 

The Board discussed the current law regarding Broker Price Opinion.

 

 

WORK PRODUCT REVIEW CHECKLIST

 

The Board discussed a work product review checklist for Board members to use while reviewing an applicant’s work products. Some of the items that will be listed on the checklist are site value, three approaches to value, USPAP compliance, and market extraction. The checklist will be two pages in length. The first page will be non-negotiable items. The second page will be feedback for an applicant to be sent with an approval letter. Mr. Hales explained the duties of the Board regarding reviewing work product under Rule 250.02.iii.

 

 

REA WEBSITE

 

The Board is working on a “How To” list for the website that will help applicants better understand each of the items the Board is looking for within their work product. The Board will also be adding a link to the website for applicants which will state the most common errors the Board sees while reviewing work product.

 

 

EDUCATION

 

Kyle McGarry, Tyler Martin, and Ross Park addressed the Board regarding their education and the new AQB criteria.

 

 

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. Seconded by Mr. Van Wyk, motion carried.

 

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

 

 

NEW BUSINESS

 

It was moved by Ms. Lentz to approve the submitted pre-licensure education for Kyle McGarry, Tyler Martin, and Ross Park. Seconded by Mr. Van Wyk, motion carried.

 

 

ASC

 

It was moved by Ms. Lentz to approve the response letter to the Appraisal Subcommittee and authorize the Board chair to sign on behalf of the Board. Seconded by Mr. Van Wyk, motion carried.

 

 

AARO

 

The Board discussed the Association of Appraiser Regulatory Officials spring meeting.

 

 

CE COURSES

 

The Board approved the following provider course applications:

 

APPRAISAL INSTITUTE

            RESIDENTIAL REPORT WRITING AND CASE STUDIES - 15 - PL/CE

            ONLINE VALUATION OF GREEN RESIDENTIAL PROPERTIES - 7 - CE

            GENERAL APPRAISER INCOME APPROACH PART 1 - 30 - PL/CE

APPRAISAL MASTERY CENTER

            440 - HVCC AND YOU - 4 - CE

ASFMRA

            APPRAISING RURAL RESIDENTIAL PROPERTIES - 8 - CE

            WIND POWER - 8 - CE

            SALES COMPARISON APPROACH - 8 - CE

            VALUATION OF CONSERVATION EASEMENTS AND OTHER PARTIAL INTERESTS IN REAL ESTATE - 22 - CE

MCKISSOK LP

            RELOCATION APPRAISAL IS DIFFERENT - 8 - CE

RMA (RISK MANAGEMENT ASSOCIATION)

            RMA - CHIEF APPRAISER ROUNDTABLE - 10 - CE

THE COLUMBIA INSTITUTE

            FANNIE MAE TODAY, NO. 116 - 8 - CE

VAN EDUCATION CENTER

            7-HOUR NATIONAL USPAP UPDATE - 7 - CE

 

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. Seconded by Ms. Lentz, motion carried.

 

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

 

 

APPLICATIONS

 

Approved for Exam

 

It was moved by Mr. Nuhn to approve the following applicants for examination:  

                        BLANCHARD ADAM HANS - LRA

                        GREENLEE GREGORY S - CRA

                        JOHNSON AUGUST - CGA

                        RITTER KEVIN S - CGA

                        VILLANUEVA GREG T - LRA

Seconded by Mr. Van Wyk, motion carried.

 

Pending

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

                        901089832

                        901053674

                        901091548

                        901053033

Seconded by Mr. Morgan, motion carried.

 

 

NEXT MEETING 6/8/2009

 

 

ADJOURNMENT

 

It was moved by Mr. Nuhn that the meeting adjourn at 6:20 PM MST. Seconded by Mr. Morgan, motion carried.