New Mexico Register / Volume XXIX,
Issue 21 / November 13, 2018
PUBLIC RULE
HEARING AND REGULAR BOARD MEETING
The New Mexico Real Estate Appraisers Board
will hold a rule hearing on Monday, December 17, 2018, at 9:00 a.m. Following the rule hearing, the Board will
convene a board meeting to adopt the rules and take care of regular business.
The rule hearing and board meeting will be held at the New Mexico Regulation
and Licensing Department, 2550 Cerrillos Road, Santa Fe, NM, in Hearing Room 2.
The Board is proposing the following
amendments listed below to the Real Estate Appraisers and Appraisal Management
Companies’ rules to correct language, definitions and requirements in
accordance with the Appraiser Qualification Board (AQB). The proposed amendments
include changed provisions applicable to Trainees, License, Residential
Certificate and General Certificate. The amendments modify the definition of
“Appraisal Management Company” to more closely track the definition in the
Appraisal Management Company Registration Act. Importantly, the proposal adds a
new reporting rule to the Appraisal Management Companies’ rules, as required by
the Appraisal Subcommittee (ASC). To sum up, the amendments are intended to
provide for the licensing of appraisers, allow online education, eliminate
renewal exam requirements, clarify definitions and provide uniformity in the
application of the following rules:
16.62.1 NMAC – General Provisions;
16.62.2 NMAC – Application for Trainee;
16.62.3 NMAC – Application for License;
16.62.4 NMAC – Application for Residential Certificate;
16.62.5 NMAC – Application for General Certificate;
16.62.6 NMAC – Examinations;
16.62.7 NMAC – Issuance/Renewal of Trainee
Registration/Licenses/Certificates;
16.62.8 NMAC – Educational Programs/Continuing
Education;
16.62.9 NMAC – Certificate of Good Standing;
16.62.10 NMAC – Temporary Practice;
16.62.11 NMAC – Application for Reciprocity;
16.62.12 NMAC – Fees;
16.62.13 NMAC – Disciplinary Proceedings;
16.62.15 NMAC – Retirement and Reinstatement;
16.62.16 NMAC – Advertising;
16.62.17 NMAC – Unlicensed Practice/Penalties;
16.65.1 NMAC – General Provisions
16.65.2 NMAC – Registration Requirements
To
obtain and review copies of the proposed changes and public comments, you may
go to the Board’s website at: http://www.rld.state.nm.us/boards/Real_Estate_Appraisers.aspx, or contact the
Boards and Commissions Division at (505) 476-4622.
The Board is currently accepting public
comments on the proposed amendments. Please submit written comments on the proposed
changes to Ruth Romero, Board Administrator, via electronic mail at nm.reab@state.nm.us,
or
by regular mail at P.O. Box 25101, Santa Fe, NM 87504, no later than Friday,
December 14, 2018. Persons will also be given the opportunity to present
their comments at the rule hearing.
An individual with a disability who is
in need of a reader, amplifier, qualified sign language interpreter, or other
form of auxiliary aid or service to attend or participate in the hearing,
please contact Ruth Romero, Board Administrator at (505) 476-4622.
No technical information served as a
basis for the proposed rule.
Statutory
Authority: Legal
authority for this rulemaking can be found in the Real Estate Appraisers Act,
NMSA 1978, Sections 61-30-1 through -24 (1990, as amended through 2017), which,
among other provisions, specifically authorizes the Board to “adopt rules
necessary to implement the provisions of the Real Estate Appraisers Act.” Subsection
A of Section 61-30-7, NMSA 1978.
Summary
of Proposed Changes:
16.62.1.2
NMAC, 16.62.2.2 NMAC, 16.62.3.2 NMAC, 16.62.4.2 NMAC, 16.62.5.2 NMAC, 16.62.6.2
NMAC, 16.62.7.2 NMAC, 16.62.8.2 NMAC, 16.62.9.2 NMAC, 16.62.10.2 NMAC,
16.62.11.2 NMAC, 16.62.12.2 NMAC, 16.62.13.2 NMAC, 16.62.15.2 NMAC, 16.62.16.2
NMAC and 16.62.17.2 NMAC – SCOPE
The changes for the above parts add the
word “residential after “licensed”, which is consistent with the title used in
The Real Property Appraiser Qualification Criteria effective 01/01/2015. The word “certified” is also added in the
last sentence for clarification.
16.62.1 NMAC –
General Provisions
The
addition to paragraph (1) of Subsection A clarifies that appraisal experience
from other states will be valid in New Mexico for obtaining or upgrading
license or certified status, as long as both the trainee and supervisor were in
compliance with state and federal law at the time the experience was gained.
16.62.2 NMAC – Application
for Trainee
Removal
of the word “classroom” and adding applicable language to be consistent with
The Real Property Appraiser Qualification Criteria effective 01/01/2015; removal
of limitation that required only live classes, education may now be taken via
distance education; language replaces “attendance” with “complete” which now
allows education to be taken either in person or via distance education for
courses, and also clarifies that courses must be “completed” vs “taken.”
16.62.3 NMAC –
Application for License
The
change corrects the classification of “License” to “Licensed Residential,”
which is consistent with the title used in The Real Property Appraiser
Qualification Criteria effective 01/01/2015; this change includes the removal
of the word “classroom” and adding applicable language to be consistent with
The Real Property Appraiser Qualification Criteria effective 01/01/15, as well
as removal of the limitation of only no more than 50% of courses may be
obtained from internet or distance learning modalities (no longer a limitation,
all hours may be via distance education);
Effective May 1, 2108, The Appraisal Qualifications Board adopted
changes to College-Level Education required for Licensed Residential status to
“no education is required,” therefore this section is removed from current
rules; The changes add the word “residential” after “licensed” which is
consistent with the title used in The Real Property Appraiser Qualification
Criteria effective 01/01/2015. “Experience” required hours were reduced from
2,000 to 1,000 and the time-frame limit from no fewer than 12 months to no
fewer than 6 months.
16.62.4 NMAC –
Application for Residential Certificate
This
change includes the removal of the word “classroom” and adding applicable
language to be consistent with The Real Property Appraiser Qualification
Criteria effective 01/01/15, as well as removal of the limitation of only no
more than 50% of courses may be obtained from internet or distance learning
modalities (no longer a limitation, all hours may be via distance education); Effective
May 1, 2018, The Appraisal Qualifications Board adopted changes to
College-Level Education required for Residential Certified appraisers; the
education requirements are being replaced with the new criteria. Also changes are made to the experience
credit required and the time-frame limit from no fewer than 24 months to no
fewer than 12 months.
16.62.5 NMAC –
Application for General Certificate
The
existing rules inadvertently omitted one class required by The Appraisal
Qualifications Board for General Certification; this change adds the class into
the rules (Statistics, Modeling, and Finance 15 hours). Also changes are made to the time-frame for
experience from no fewer than 30 months to no fewer than 18 months.
16.62.6 NMAC –
Examinations
Required
score for passing is 70%, not 72%. No change to requirement for Jurisprudence
exam at the time of initial examination.
16.62.7 NMAC –
Issuance/Renewal of Trainee Registration/Licenses/Certificates
The
removal of the “or less than 13 months” is not necessary and is confusing;
Proration fees are not allowed or tracked; “Documentation” changed to
“completion” as the Board allows for attestation of completion of the required
continuing education courses.
Clarification is provided on methods in which an application may be
submitted to the Board office.
Clarification is provided on the documentation of education certificates
issued by education providers that licenses must maintain. Clarification that applicants for renewal
will be required to review and become familiar with rules and attest to this as
part of the renewal process; Removal of “classroom” clarifies that hours of
continuing education are not limited to live classes. Clarification is added that the AQB 7-hour
National USPAP Update course is required as part of the 28 hours of continuing
education. The jurisprudence exam for
renewal is being discontinued and applicants will now be required to attest
that they have reviewed the rules as part of the new and renewal application
process. The jurisprudence exam will
remain for new applications. The $95.00
will no longer be applicable or assessed to renewal applications; Section A is
added for clarification as an exemption from issuance of a license or
certification of analyzing an appraisal as part of a request for mortgage
credit. Section B is added clarifying
that a non-residential licensed or certified appraiser, while out of state and
reviewing appraisals on property in New Mexico, is exempt from obtaining a
license or certification from New Mexico.
16.62.8 NMAC –
Educational Programs/Continuing Education
The
word classroom is deleted as classroom hours are no longer mandatory; Removal
of the requirement that limits the maximum of 14 online continuing education hours;
The Real Estate Appraiser Board office does not have storage capacity for
student records when a school closes, therefore this requirement is being removed. Removal of section 4 requires renumbering the
remaining numbers.
16.62.9 NMAC –
Certificate of Good Standing
“A”
is edited for clarity.
16.62.10 NMAC –
Temporary Practice
Addition
of certified appraisers is for clarity.
16.62.11 NMAC –
Application for Reciprocity
Changes
made for clarification. Also
clarification on when reciprocal licenses shall expire. B(1) is removed, as New Mexico is electing to
not to adopt all of the AQB Criteria (and maintain more stringent
requirements), applicants for reciprocity may have met their home state
requirements, and obtained their license or certification, while complying with
the AQB requirements in that state.
Reciprocity will be recognized based on their credentials at the time of
application for reciprocity.
16.62.12 NMAC –
Fees
The
removal of proration of fees is removed as they are not allowed or
tracked. Other additions made as
corrections.
16.62.13 NMAC –
Disciplinary Proceedings
Changes
made for process in order to meet the 1-year time limit required by the
Appraisal Subcomittee (ASC) for cases to be closed.
16.62.15 NMAC
Retirement and Reinstatement
Remove
of “/: and replace with “or”. Remove
“clock – “from sentence as “clock” is not applicable; Duplication; Subsections C,
D & E are the same as Subsections H, I & J, so Subsections H, I & J
are removed, and Subsection K is changed to Subsection H.
Statutory
Authority: Legal
authority for this rulemaking can be found in the Appraisal Management Company
Registration Act, Sections 47-14-1 through -23, NMSA 1978 (2009, as amended
through 2013), which specifically authorizes the Board to “adopt rules that are
reasonably necessary to implement, administer and enforce the provisions of the
Appraisal Management Company Registration Act, including rules for obtaining
copies of appraisals and other documents necessary to audit compliance with the
Appraisal Management Company Registration Act.” Section 47-14-23, NMSA 1978.
Summary of
Proposed Changes:
16.65.1 NMAC –
General Provisions
Modifies
the definition of “Appraisal Management Company” to mirror the one found in the
Appraisal Management Company Registration Act.
16.65.2 NMAC –
Registration Requirements
Confusion
exists in current rules. The intent on
new registration applications appears to require a 15-hour class for initial
registration, which is appropriate, however the 15-hour class can be an older
class if submitted with a recent 7 hour USPAP Update course. For renewal applications, all that is required
is a 7 hour USPAP update; A change made for what constitutes a detailed record
and requirement added for AMC’s being audited; A new reporting rule added for
“AMC National Registry” required by the Appraisal Subcommittee (ASC).