Illinois

Reviewer Requirements

 

  • Reviewers must be licensed appraisers in state of Illinois

 

  • IL Administrative Code Section 1452.130:

 

Section 1452.130 Appraisal Review; Quality Control Review

 

Appraisal reviewers must hold an appropriate Illinois appraisal license in order to develop and communicate any review that is not limited to a quality control review.

 

Scope of Law

  • No specific distinction between commercial and residential real estate

 

  • 225 ILCS 459, Section 10:

 

"Appraisal" means (noun) the act or process of developing an opinion of value; an opinion of value (adjective) of or pertaining to appraising and related functions.

 

Reviewing Provisions

  • Must conduct periodic reviews by an IL appraiser to assure compliance with USPAP

 

  • 225 ILCS 459 Section 40, (a)-(7):

 

(a) The Department may issue a certification of registration to practice under this Act to any applicant who applies to the Department on forms provided by the Department, pays the required non-refundable fee, and who provides the following:

(7) a certification that the applicant has a system
  in place utilizing a licensed Illinois appraiser to review the work of all employed and independent appraisers that are performing real estate appraisal services in Illinois for the appraisal management company on a periodic basis, except for a quality control review, to verify that the real estate appraisal assignments are being conducted in accordance with USPAP;

 

Appraiser Requirements

Appraiser Competency

Record Keeping

 

  • 225 ILCS 459 Section 40, (a)-(8):

 

(a) The Department may issue a certification of registration to practice under this Act to any applicant who applies to the Department on forms provided by the Department, pays the required non-refundable fee, and who provides the following:

(8) a certification that the applicant maintains a
  detailed record of each service request that it receives and the independent appraiser that performs the real estate appraisal services for the appraisal management company;
   
   
  • Certain records to be kept for five years

 

  • IL Administrative Code Section 1452.90:

 

a) Registrants shall maintain a detailed record of each service request that it receives for an appraisal practice service to be performed within Illinois. Detailed records include, but are not limited to, a copy of:

 

1) The assignment order or service request identifying the end-user client.

2) Each assignment result, including revised reports, addenda, certifications and any webform communications.

3) Any and all correspondence between the appraisers, the registrant and any other entity or party related to the assignment.

4) Any copy of any quality control review related to the assignment.

5) Any review not consistent with a quality control review.

6) All fee schedules maintained and used by the registrant for the purpose of compliance with the provisions of the Truth in Lending Act (15 USC 1601) relating to customary and reasonable fees. The fee schedules shall be definitive in nature.

7) Any roster of Illinois active and approved fee panel appraiser vendors, including the name of the appraiser, each appraiser’s Illinois credential number, the date the appraiser was placed on the panel, and the date and reason an appraiser was removed from the panel.

 

b) Registrants shall maintain the records set forth in subsection (a) for a period of 5 years. This 5 year period shall commence on the date of final action for each individual transaction or, if the registrant is notified that the transaction is involved in litigation or is the subject of administrative action by the Division, on the date of final disposition of that action.

 

c) On receipt of notice, registrants shall produce for the Division any record required to be maintained by this Section within 15 calendar days after its request. Any information submitted by the registrant to the Division under this Section shall not be disclosed pursuant to a pubic request and shall be deemed confidential.

 

  • IL Administrative Code Section 1452.190-(c):

 

“Dishonorable, unethical or unprofessional conduct” as used in Section 65(a)(9) of the Act includes but is not limited to:

c) Failure to retain records described in Section 1452.90;

 

Licensing Disclosure

  • Must include license number on all service requests

 

  • IL Administrative Code Section 1452.30-(a,b):

 

a) Registrants shall affix their Illinois appraisal management registration number and title within the body of every transmitted appraisal service request to an Illinois appraiser.

 

b) The registration title is “Illinois AMC Registration No. _______”.

 

Communications With Appraisers

 

  • Must provide certain info to appraisers on engagement documents

 

  • IL Administrative Code Section 1452.120-(b):

 

b) The registrant shall provide the appraiser with an engagement document that contains, but is not limited to, the following:

 

1) The registrant’s Illinois registration number and expiration date;

2) The location of the property or properties that are the subject of the assignment;

3) Property type (e.g., single-family residence, industrial condominium, etc.);

4) The total completed assignment compensation;

5) The registrant’s turn time requirements;

6) The name and contact information for the registrant’s representative;

7) The name and contact information for any person whose assistance is required to gain access to the subject property (if applicable);

8) A legible copy of a fully executed and complete sales contract, along with all pertinent addenda (if the transaction involves a sale);

9) Registrant and/or end-user client guidelines or changes in guidelines

10) Information as to whether the owner of the property under appraisement has been advised that interior images may be required under the assignment criteria;

11) Identification of the end-user client in any assignment or service request.

 

  • Cannot require an appraiser to sign a non-compete clause

 

  • 225 ILCS 459 Section 165-(a)-(7):

 

(a) No person or entity acting in the capacity of an appraisal management company shall improperly influence or attempt to improperly influence the development, reporting, result, or review of any appraisal by engaging, without limitation, in any of the following:

(7) Requiring an appraiser to sign a
  non-compete clause when not an employee of the entity.

 

Communication With Board

  • Mandatory reporting

 

  • 225 ILCS 459 Section 160, (e):

 

(e) Appraisal management companies or employees of an appraisal management company involved in a real estate transaction who have a reasonable basis to believe that an appraiser involved in the preparation of an appraisal for the real estate transaction has failed to comply with the Uniform Standards of Professional Appraisal Practice, has violated this Act or its rules, or has otherwise engaged in unethical conduct shall report the matter to the Department. Any registrant, employee, or individual acting on behalf of a registrant, acting in good faith, and not in a willful and wanton manner, in complying with this Act by reporting the conduct to the Department shall not, as a result of such actions, be subject to criminal prosecution or civil damages.

 

  • Must notify board within 30 days in the event of removal of an appraiser from our panel

 

  • IL Administrative Code Section 1452.110-(b):

 

b) The registrant shall notify the Division within 30 days after appraiser removals based upon a reasonable belief that the appraiser prepared an appraisal report in violation of Illinois law, administrative rules and/or USPAP.

 

Billing/ Payment

  • Appraisers must be compensated at a “customary and reasonable” rate

 

  • 225 ILCS 459 Section 160, (f):

 

(f) Appraisal management companies are required to be in compliance with the appraisal independence standards established under Section 129E of the federal Truth in Lending Act, including the requirement that fee appraisers be compensated at a customary and reasonable rate when the appraisal management company is providing services for a consumer credit transaction secured by the principal dwelling of a consumer. To the extent permitted by federal law or regulation, the Department shall formulate rules pertaining to customary and reasonable rates of compensation for fee appraisers. The appraisal management company must certify to the Department that it has policies and procedures in place to be in compliance under the Final Interim Rule of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act.

 

Employee Training

  • Employees must be “appropriately trained”

 

  • 225 ILCS 459 Section 40, (a)-(9):

 

(a) The Department may issue a certification of registration to practice under this Act to any applicant who applies to the Department on forms provided by the Department, pays the required non-refundable fee, and who provides the following:

 

(9) a certification that the employees of the
  appraisal management company working on behalf of the appraisal management company directly involved in providing appraisal management services, will be appropriately trained and familiar with the appraisal process to completely provide appraisal management services;

 

Removal of Appraisers from Panel

  • Must provide prior written notice to appraiser before removal from panel

 

  • 225 ILCS 459 Section 165-(a)-(6):

 

(a) The Department may issue a certification of registration to practice under this Act to any applicant who applies to the Department on forms provided by the Department, pays the required non-refundable fee, and who provides the following:

(6) Allowing or directing the removal of an appraiser
  from an appraisal panel without prior written notice to the appraiser.
  • “Prior written notice” means 30 day notice

 

  • IL Administrative Code Section 1452.10:

 

“Prior written notice” means a period of not less than 30 days in which an appraisal management company must notify an appraiser that he or she has been removed from an appraisal management company’s list of approved vendors.

 

  • IL Administrative Code Section 1452.110

 

a) The registrant shall notify the appraiser, in writing, within 30 calendar days, prior to removing the appraiser from the list of approved appraisers. The notice shall include any and all causes leading to the removal.

 

 

 

Payment Policy

  • Must have detailed, definitive payment policy

 

  • 225 ILCS 459 Section 160, (b):

 

(b) All payment policies from registrants under this Act to appraisers shall be written and definitive in nature.

 

  • IL Administrative Code Section 1452.100:

 

a) The registrant shall provide a written, comprehensive payment policy to each approved appraiser vendor. The payment policy may be part of a vendor agreement, assignment order or service request, and shall include, but is not limited to, the following:

 

1) The agreed date or period by which the appraiser should expect to receive compensation at the conclusion of an assignment;

2) Total completed assignment compensation;

3) Any conditions that delay or void payment;

4) By what method compensation will be received by the appraiser;

5) Registrant’s required turn time;

6) Partial compensation, if any, for the following:

 

A) Completed assignment;

B) Registrant’s or end-user client delays, holds and/or cancellations; or

C) Property owner or agent access delays and/or cancellations, including when an individual responsible for providing access to a property fails to appear at the scheduled time;

 

7) Any and all fees and charges charged to an Illinois appraiser, including but not limited to fees and charges for:

A) Portal and/or EDI access or maintenance;

B) Systems access;

C) Technology applications and proprietary software usage;

D) Background and/or credit checks;

E) Review of assignments or samples; and

F) Application for panel approval.

b) The registrant shall maintain records of all changes to written payment policies.

 

  • IL Administrative Code Section 1452.190-(g):

 

“Dishonorable, unethical or unprofessional conduct” as used in Section 65(a)(9) of the Act includes but is not limited to:

g) Failing to provide a written, definitive payment policy as outlined in Section 1452.100;

 

 

Misc

 

  • Registrations expire Dec. 31 on a biannual basis

 

  • IL Administrative Code Section 1452.40-(a):

 

a) All registrations shall expire on December 31 of even-numbered years beginning in the year 2014. A registrant may renew its registration during the month preceding the expiration date by submitting to the Division a renewal application provided by the Division on which all questions have been answered and by paying the required renewal fee to the Department.