Department of Labor & Economic Growth Bureau of Commercial Services Licensing Division

1. Department of Labor & Economic GrowthBureau of Commercial ServicesLicensing Division Real Estate Appraiser Licensing July 2008

2. Contents • Application Submission & Review Process • AQB Qualification Criteria=MI Requirements • Continuing Education Requirements • Renewing a License/Relicensure • Use of Limited Real Estate Appraisers • Miscellaneous Updates

3. Application Submission & Review Process • Application Submission • Complete and submit application to the department with application fee along with the following: • Course completion certificates • Experience log • Sample appraisal reports

4. Application Submission & Review Process (con’t) • Review Process • 30 to 90 days for first review • After first review completed, random appraisal reports selected and requested • After random reports reviewed and approved, PSI notified of approval and exam approval letter mailed to applicant

5. AQB Qualification Criteria =Michigan REA Requirements • All levels of licensure • 18 years of age • Good moral character--having the ability, and likely to, serve the public in a fair, honest and open manner • Limited Real Estate Appraiser • 75 hours of appraisal prelicensure education including the 15-hour National USPAP course

6. AQB Qualification Criteria =Michigan REA Requirements (con’t) • State Licensed Real Estate Appraiser • 150 hours of specific appraisal prelicensure education • 2000 hours of appraisal experience including 1500 hours of residential experience in not less than 12 months • Successful completion of the national exam

7. AQB Qualification Criteria =Michigan REA Requirements (con’t) • Certified Residential Real Estate Appraiser • 200 hours of appraisal specific prelicensure education • 2,500 hours of appraisal experience including 2000 hours of residential experience obtained in not less than 24 months • Successful completion of the national exam

8. AQB Qualification Criteria =Michigan REA Requirements (con’t) • Certified General Real Estate Appraiser • 300 hours of specific appraisal prelicensure education • 3000 hours of appraisal experience including at least 1500 hours of non-residential experience obtained in not less than 30 months • Successful completion of the national exam

9. AQB Qualification Criteria =MI Requirements in 2008 (con’t) • Applications received after December 31, 2007 must meet all 2008 requirements including: • Education • Experience • Appraisal experience may accrue for limited real estate appraisers’ experience gained under state licensed appraisers by December 31, 2007. However, beginning January 1, 2008, any balance of experience required must be under certified residential or certified general appraisers. • National Exam

10. Michigan Real Estate Appraisers • Limited • 1,365 active licensees • State Licensed • 1,880 active licensees • Certified Residential • 730 active licensees • Certified General • 1044 active licensees

11. Level of Licensure Appraisal Education Appraisal Experience Exam Limited Real Estate Appraiser 75 hrs ed (see specific course requirements) None None State Licensed Real Estate Appraiser 150 hrs ed (see specific course requirements) *2,000 hours over a least 12 months with at least 1,500 hours residential 2008 National Certified Residential Real Estate Appraiser *200 hrs ed (see specific course requirements) *associate degree or in lieu of degree *2,500 hours over at least 24 months with at least 2000 hours of residential 2008 National Certified General Real Estate Appraiser *300 hrs ed (see specific course requirements) *bachelor degree or in lieu of degree *3,000 hours over at least 30 months with at least 1,500 hours of non-residential 2008 National

12. Limited real estate appraiser license Basic appraisal principles 30 hours Basic appraisal procedures 30 hours 15-hour national USPAP course or equivalent 15hours TOTAL 75 hours State licensed real estate appraiser Basic appraisal principles 30hours Basic appraisal procedures 30 hours 15-hour national USPAP course or equivalent 15 hours Residential market analysis and highest and best use 15 hours Residential appraiser site valuation & cost approach 15 hours Residential sales comparison and income approaches 30 hours Residential report writing and case studies 15 hours TOTAL 150 hrs

13. Certified residential real estate appraiser Basic appraisal principles 30 hours Basic appraisal procedures 30 hours 15-hour national USPAP course or equivalent 15 hours Residential market analysis and highest and best use 15 hours Residential appraiser site valuation and cost approach 15 hours Residential sales comparison and income approaches 30 hours Residential report writing and case studies 15 hours Statistics, modeling and finance 15 hours Advanced residential applications and case studies 15 hours Appraisal subject matter electives 20 hours TOTAL 200 hours

14. Certified general real estate appraiser Basic appraisal principles 30 hours Basic appraisal procedures 30 hours 15-hour national USPAP course or equivalent 15 hours General appraiser market analysis & highest & best use 30 hours Statistics, modeling and finance 15 hours General appraiser site valuation and cost approach 30 hours General appraiser sales comparison approach 30 hours General appraiser income approach 60 hours General appraiser report writing and case studies 30 hours Appraisal subject matter electives 30 hours TOTAL 300 hours

15. In lieu of an associate degree, an applicant for Certified Residential must successfully pass the following collegiate subject matter courses from an accredited college, junior college, community college or university for a total of 21 semester credit hours: • English Composition; • Principles of Economics (Micro or Macro); • Finance; • Algebra, Geometry, or higher mathematics; • Statistics; • Introduction to Computers—Word Processing/spreadsheets; and • Business or Real Estate Law.

16. In lieu of a bachelor degree, an applicant for Certified General must successfully pass the following collegiate subject matter courses from an accredited college, junior college, community college or university for a total of 30 semester credit hours: • English Composition; • Micro Economics; • Macro Economics; • Finance; • Algebra, Geometry, or higher mathematics; • Statistics; • Introduction to Computers—Word Processing/spreadsheets; • Business or Real Estate Law; and • Two elective courses in accounting, geography, ag-economics, business management, or real estate.

17. Continuing Education Requirements • When con ed is and is not required per AQB: • Licensees upgrading: Credentialed appraisers are required to complete continuing education for a partial year in a continuing education cycle as follows: For continuing education cycle periods of 185 days or more, 14 hours of continuing education is required. For continuing education cycle periods of less than 185 days, no continuing education hours are required. • 28 hours total, including: • 7-hour National USPAP every 2 years • 2-hour Michigan Law every other renewal cycle (4 years)

18. Continuing Education Requirements • Limited Licensed Real Estate Appraiser are required to attain 14 hrs. of continuing education in their 3rd and successive years of licensure.

19. Continuing Education Requirements (con’t) • Information available on website: www.michigan.gov/appraisers • Check course approval status • Check continuing education credit received • Reporting continuing education • Education Sponsors’ Responsibility • FAX ATTN: Peggy Waugh (517) 241-7539 • MAIL TO: DLEG, BCS, Licensing Division, Attn: Testing & Education Services, P.O. Box 30018, Lansing, MI 48909

20. Renewing a License/Relicensure • Renewal Fees ($250 limited/$350 SL, CR, CG) • Deadline/Grace Period (8/1 to 9/29) • Must meet continuing education requirements • Relicensure Requirements • Fees ($180 limited/$230 SL, CR, CG) • 14 hours of continuing education within for each year their license is lapsed • Relicensure (for licenses expired more than 60 days) Prior to reactivation, credential holders in an inactive status must complete all required continuing education hours that would have been required if the credential holder was in an active status. The required hours must also include the most recent edition of a 7-hour National USPAP Update Course. If a license has been lapsed for more than 3 years as of January 1, 2008 – the 2008 AQB Criteria must be met.

21. Use of Limited Real Estate Appraisers • Administrative Rule 403(1)(a)—A limited real estate appraiser may perform appraisal services appraise properties that are not federally related transactions or real estate related financial transactions • Section 2607(7) of the Michigan Occupational Code—An appraisal performed by a limited real estate appraiser (non-real estate related financial transaction) must be co-signed by the supervisor (state licensed, certified residential, or certified general)

22. Use of Limited Real Estate Appraisers (con’t) • Standards Rule 2-3—USPAP Certification--The names of individuals providing significant real property appraisal assistance who do not sign a certification must be stated in the certification.

23. Miscellaneous Updates • Board meeting dates for the 2008 year • March 25, 2008 • June 17, 2008 • September 16, 2008 • December 2, 2008 • Licensed appraisers may be credited con. ed. for attending one board meeting per renewal cycle; min. 2 hrs; max. 7 hrs. Meetings must be at least 2 hours in length for con. ed.