(a)A license holder must review the work of appraisers
performing appraisal services on 1-4 family unit properties collateralizing
mortgage obligations by performing a review in accordance with Standards
3 and 4 [Standard 3] of USPAP of:
(1)one of the first five appraisals performed for
the license holder by each appraiser, prior to making a sixth assignment;
and
(2)a total of two [five] percent,
randomly selected, of the appraisals performed for the AMC for each
twelve-month period following the date of the AMC's registration.
(b)Appraisal reviews [Appraisals]
performed pursuant to subsection (a)(1) of this section will be counted
toward the calculation of two [five] percent
for the purposes of subsection (a)(2) of this section.
(c)An appraisal [A] review pursuant
to subsection (a)(1) of this section is not required if the first
five appraisals by an appraiser were completed before the AMC was
required by the AMC Act to be registered with the Board.
[(d)In addition to satisfying the
requirements of §1104.153 of the AMC Act, the review appraiser
must have access to appropriate data sources for the appraisal being
reviewed.]
(d)[(e)] An appraiser is qualified
to perform an appraisal review within the meaning of §1104.153
of the AMC Act if the appraiser conducting the review:
(1)is licensed or certified to act as an appraiser
in Texas or another jurisdiction;
(2)holds the appropriate credential to have performed
the appraisal being reviewed; and
(3)does not develop an opinion of value.
[(f)An appraiser conducting a review
under §1104.155 of the AMC Act and this rule must ensure compliance
with:]
[(1)USPAP; and]
[(2)§1104.154 of the AMC Act.]
(e)[(g)] To [In
order to] satisfy the requirements [of §1104.155]
of the AMC Act, this rule and USPAP, a license holder performing an
appraisal [a] review must develop a credible
opinion about the completeness, accuracy, adequacy, relevance and
reasonableness of the appraisal under review and adhere to the
following minimum scope of work:
(1)research and consult the appropriate data sources
for the appraisal being reviewed to, at a minimum, validate the significant
characteristics of the comparables and the essential elements of the
transactions including:
(A)the multiple listing service(s) or other recognized
methods, techniques and data sources for the geographic area in which
the appraisal under review was performed, if the appraisal under review
included a sales comparison approach; and
[(B)published cost data sources and
other recognized methods, techniques and data sources for the geographic
area in which the appraisal under review was performed, if the appraisal
under review included a cost approach;]
[(C)the comparable rental data, income
and expense data, and other recognized methods, techniques and data
sources for the geographic area in which the appraisal under review
was performed, if the appraisal under review included an income approach;
and]
(B)[(D)] the sales or listing
history of the property which is the subject of the appraisal under
review, if that property was sold within the three years prior to
the effective date of the appraisal under review or listed for sale
as of the effective date of the appraisal under review;
(2)provide a certification that complies with
Standard 4 of USPAP. [state the reviewer's opinions and
conclusions about the work under review for each of the approaches
to value utilized in the appraisal under review, including the reason
for any disagreements;]
[(3)identify if the appraisal under
review omitted an approach to value, a particular piece of information,
or an analysis of either that was necessary for credible assignment
results, identify what was omitted and explain why it was necessary
for credible assignment results;]
[(4)identify the client, any intended
users and the effective date of the appraisal review;]
[(5)state that the appraisal review's
intended use and purpose is to satisfy the requirements of §1104.155
of the AMC Act and this rule, including ensuring that the appraisal
under review complies with the USPAP edition in effect at the time
of the appraisal;]
[(6)state that the scope of work
for the appraisal review is commensurate with the requirements of
§1104.155 of the AMC Act, this rule and USPAP edition in effect
at the time of the appraisal review and that the scope of work ensures
the development of credible assignment results and that no assignment
conditions impose limitations which make the results of the review
not credible;]
[(7)identify the appraisal under
review, including:]
[(A)any ownership interest of the appraiser or reviewer
in the property that is the subject of the appraisal under review;]
[(B)the report date and effective date of the appraisal
under review;]
[(C)the effective date of the opinions or conclusions
in the appraisal under review;]
[(D)the physical, legal, and economic characteristics
of the property, properties, property type(s), or market area in the
appraisal under review; and]
[(E)the name of all appraisers who signed or provided
significant professional assistance in the appraisal under review;]
[(8)state clearly and conspicuously,
all extraordinary assumptions and hypothetical conditions and state
that their use might have affected the review; and]
[(9)contain a certification which
complies with USPAP Standards Rule 3-6.]
(f)[(h)] If [While
not required by §1104.155 of the AMC Act or this rule, if]
the reviewer elects to develop an opinion of value, review opinion,
or real property appraisal consulting conclusion, the review must
comply with the additional provisions of Standards 3 and 4 of USPAP
governing the development of an opinion of value, review opinion,
or real property appraisal consulting conclusion.
The agency certifies that legal counsel has reviewed
the proposal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office
of the Secretary of State on August 21, 2018
TRD-201803593 Kristen Worman
General Counsel
Texas Appraiser Licensing and Certification Board
Earliest possible date of adoption: October 7, 2018
For further information, please call: (512) 936-3652
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