Meeting Summary

MEETING SUMMARY
NEW YORK STATE BOARD OF REAL ESTATE APPRAISAL

Wednesday, November 28, 2012

The meeting was held at the Department of State, 99 Washington Avenue, 5th Floor Conference Room, Albany; 123 William Street, 2nd Floor Conference Room, NYC; and, 65 Court Street, 2nd Floor Conference Room, Buffalo.

I. INTRODUCTIONS, ROLL CALL AND QUORUM ANNOUNCEMENT

S. Roefaro, Chair, called the meeting to order at 10:32 a.m. and welcomed new member Lillian Levy.

The official attendance was as follows:

BOARD MEMBERS
Stephen Roefaro, Chair
Carol DiSanto
Peter Goold
Lillian Levy
Matthew Smith
Excused:
Anthony Girasole

DEPARTMENT STAFF

Kathleen McCoy
Whitney Clark
Michael Elmendorf
Keith Simon
Mary Jo Moore
Amy Penzabene
Marc Mastrobuono
Ernest Delaney
Vicky Cline
Carol Fansler

VISITORS
John Manfred, Manfred Real Estate
Rebecca Jones, UPstate Training
Dawn Pfaff, appraiser
Ryan Horstmyer, NY Bankers Assoc.
Brian Rogers, regional advisor
Jennifer DeFlorio, regional advisor
David Laufman, appraiser

II. APPROVAL OF MEETING SUMMARY

Chair S. Roefaro asked for a motion to approve the July 11, 2012 meeting summary.

C. DiSanto made a motion to approve the summary of the July 11, 2012 board meeting. The motion was seconded by M. Smith and passed unanimously.

III. SUBCOMMITTEE AND DEPARTMENT REPORTS

V. Cline shared enforcement statistics. She stated that currently there are 102 open pending cases, 80 are with enforcement for investigation (including 7 from 2011), 22 are with counsel for review and evaluation. So far this year, 121 new cases have been received compared to 74 last year at this time. Of the 121 new cases, 44 were received from the public (32 last year), 30 were received from banks and other institutions (15 last year), and 26 from Appraisal Management Companies (AMC’s) (10 last year). This shows a substantial increase in complaints received from banks and AMC’s pursuant to the mandatory reporting procedures of the Dodd-Frank Act.

C. DiSanto spoke about Appraisal Management Company (AMC) legislation and shared that the committee has had a few meetings, reviewed some other states legislation and began to draft laws for AMC’s. Once complete they will be sent to W. Clark for legal review. S. Roefaro thanked public member Becky Jones for her help with the draft legislation. W. Clark shared that once the federal Appraisal Subcommittee (ASC) promulgates regulations to set forth minimum requirements that states legislation much contain, states will be given time to pass their state legislation. W. Clark suggested forwarding the finalized draft legislation to the ASC for their input.

S. Roefaro spoke about mandatory licensing, and shared that the same committee would be discussing this in the near future. He asked if it was a good idea to bundle the AMC legislation with the request for mandatory licensing. M. Smith said that was not a good idea, as you may lose out on the AMC legislation since there may be opposition to mandatory licensing.

V. Cline shared a list of current regional advisors with members and said that the Department is looking for additional regional advisors due to the increase in cases. They are needed in most areas of the state. She also shared that the Department is in the process of asking for an increase in the amount paid to regional advisors. She will send the board members a job description in the near future, and asked that any recommendations be sent to C. Fansler.

K. McCoy stated that the Department has sent a request to the ASC asking for an extension to continuing education (ce) for persons affected by Hurricane Sandy. She shared that medical extensions were removed a number of years ago, so they are not very confident this will be approved. M. Smith shared that he has three employees who are still homeless from Hurricane Sandy, and asked that the Department push for this in any way they can. K. McCoy agreed with M. Smith but said that the Department is required to follow the decision of the ASC.

IV. ACTION ITEMS

W. Clark shared with the board draft regulations to allow on-line qualifying education courses and asked for a motion to propose the change to regulations.

M. Smith made a motion to propose the changes to regulations to allow for distance learning for qualifying education courses. C. DiSanto seconded the motion, and it passed unanimously. W. Clark explained that the draft regulations will be submitted for review to the Governor’s office and the Department of Budget; once approval is received it will be posted in the NY State Register as a proposed rulemaking; public comment will be allowed for 45 days after which the board will meet and review any comments received and make any necessary changes, and then adopt the regulations.

W. Clark stated that beginning July 15, 2013 the federal government will be monitoring state programs to be sure they are meeting minimum requirements, including requirements of the trainee and supervisor. The current regulations allow licensed appraisers and certified appraisers to supervise trainees; federal requirements only allow certified appraisers to supervise. A certified appraiser can only supervise if he/she has been certified for at least three years and has no disciplinary history. A. Penzabene shared that, since the Department will be required to approve supervisors based on these qualifications, a letter and application will be going to the appraiser industry early next year requesting supervisors to complete and return the application. M. Smith asked how you would handle a trainee who is supervised by more than one supervisor. A. Penzabene said that a trainee can be associated with as many supervisors as necessary; however, a supervisor can only supervise up to three trainees at one time.

M. Smith made a motion to propose changes to the federal supervision and trainee standards. S. Roefaro seconded the motion, and it passed unanimously.

W. Clark stated that also beginning July 15, 2013 federal requirements will not allow for reciprocal agreements with other states. Reciprocity will be granted to any appraiser if they are from a state that is ASC compliant and if their requirements meet or exceed our State requirements.

C. DiSanto made a motion to propose the updated reciprocity regulations. The motion was seconded by P. Goold and passed unanimously.

W. Clark shared that during the last federal audit, the Department was asked to modify the regulation language regarding the appraisal logs (1102.3) to clarify that the applicant must disclose the number of hours worked instead of a set number of hours being given for credit. The number of hours in the regulation is the maximum credit an applicant can receive for that category of work. M. Smith suggested a committee be formed to review and update the current appraisal log. The committee members are M. Smith, S. Roefaro, and W. Clark.

P. Goold made a motion to propose the change to 1102.3 of the regulations. The motion was seconded by M. Smith and passed unanimously.

V. NEW BUSINESS

M. Smith stated that he is concerned because there are so many vacancies on the board that every member must attend a meeting in order to vote on anything (a quorum is required to have a vote). He stressed that the Department should do whatever they can to push through any pending board appointments.

M. Smith talked about the appraisal newsletter and feels it is very important to get information out to the industry. K. McCoy stated that any important information can be added to our web site on the appraisal page without producing a newsletter.

VI. PUBLIC COMMENT PERIOD

D. Pfaff shared that she attended today’s meeting to hear about distance learning for qualifying education, as she has had problems finding some courses in her area. She also asked if it was possible to use software to print out an appraisal log to attach to the application. A. Penzabene said as long as it contains all required information and is signed off by the trainee and supervisor, it should be acceptable.

VII. ADJOURNMENT

The next board meeting has been tentatively scheduled for April 3, 2013. The meeting was adjourned at 11:38am.