Relating to the Iowa appraisal standards and appraiser certification law, making penalties applicable, and including applicability provisions

This bill relates to the Iowa appraisal standards and appraiser certification law. Current law provides that Code chapter 543D shall be known as the Iowa voluntary appraisal standards and appraiser certification law. The bill provides that Code chapter 543D shall be known as the Iowa appraisal standards and appraiser certification law. The bill defines “appraisal review” as developing and communicating an opinion under the uniform standards of professional appraisal practice review standards regarding the quality of an appraiser’s work product prepared as part of an appraisal assignment. The bill defines “federally related transaction” as any financial transaction related to real estate which a federal financial institutions regulatory agency engages in, contracts for, or regulates, and which requires the services of an appraiser pursuant to federally related transaction regulations. The bill defines “federally related transaction regulations” as regulations established by the comptroller of the currency, the board of governors of the federal reserve system, the federal deposit insurance corporation, or the national credit union administration pursuant to sections 1112, 1113, and 1114 of Tit. §3341 – 3343. The bill modifies the definition of “review appraiser” to mean a person who is responsible for conducting an appraisal review. The bill provides that the purpose of Code chapter 543D is to establish a procedure for the mandatory certification of real estate appraisers performing appraisals for federally related transactions and voluntary certification of real estate appraisers performing appraisals that are not related to federally related transactions. The bill requires a person to be a certified real estate appraiser if the person performs an appraisal for a federally related transaction as it relates to real estate located in this state. Additionally, the bill requires a person who is a registered associate real estate appraiser to be under the direct supervision of a certified real estate appraiser if the person performs an appraisal for a federally related transaction as it relates to real estate located in this state, and if the services of a certified real estate appraiser are required by federal law. Current law provides that a person who is not a certified real estate appraiser may appraise real estate if certification is not required by Code chapter 543D or any other state or federal law. The bill provides that, notwithstanding that provision, in connection with an appraisal of real estate located in this state, the title certified real estate appraiser, associate real estate appraiser, or any other similar title shall only be used by an individual who holds a certificate or registration under Code chapter 543D. The bill provides that the real estate appraiser examining board may recognize on a temporary basis the certification or license of an appraiser issued by another state. An appraiser who has been recognized on a temporary basis is required to apply for and obtain a temporary practice permit from the board before performing any services related to an appraisal and is governed by the laws and rules administered by the board. The bill provides that the title certified real estate appraiser, associate real estate appraiser, or any similar title shall only be used to refer to individuals who hold the appropriate certificate or registration. Additionally, the bill provides that, in connection with an appraisal assignment performed on real estate located in this state, the title certified real estate appraiser, associate real estate appraiser, or any other like title shall only be used to refer to individuals who hold a certificate or registration under Code chapter 543D. Current law does not require registration with the board of those who appraise real estate where certification is not required by Code chapter 543D or any other state or federal law, and who are not assisting a certified real estate appraiser in the development of an appraisal assignment that is required by Code chapter 543D or any other state or federal law to be performed by a certified real estate appraiser. The bill provides that, notwithstanding that provision, in connection with an appraisal of real estate located in this state, the title associate real estate appraiser or any other similar title shall only be used to refer to or by an individual who holds a certificate or registration under Code chapter 543D.20, subsection 5. The maximum civil penalty that may be imposed is $1,000 for each violation.