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EXTENSION OF REGS AVOIDS SHORTAGE OF APPRAISERS, NAR REPORTS

 WASHINGTON, Dec. 29 /PRNewswire/ -- There will be an adequate supply of qualified appraisers nationwide when federal legislation mandating state licensure and certification of real estate appraisers takes effect Jan. 1, 1993, according to the National Association of Realtors.
 Licensing and certification for appraisers resulted from enactment of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), which requires the use of state licensed or certified appraisers for most real estate transactions involving federally regulated or insured financial institutions. Originally, the law required states to have in place an appraisal regulatory system by July 1, 1991. However, Congress extended that start date to Jan. 1, 1993, to allow states additional time to implement licensing and certification programs that comply with the federal mandate. NAR and other groups supported the extension as a method to avoid severe shortages of licensed or certified appraisers, which could have led to significant back ups in obtaining appraisals and the underwriting of mortgages.
 According to NAR, there were 18,311 licensed and certified appraisers in 30 states, at the end of 1991. However, the association recorded nearly 59,000 licensed and certified appraisers in all 50 states as of December 1992.
 "There now appears to be an adequate supply of licensed and certified appraisers virtually everywhere," said Norman Goldberg, 1992 chairman of NAR's Real Estate Appraisal Committee.
 "While some state governments around the country would have met the original deadline, there would have been real problems in those states that were moving slower on this issue, had there been no extension of the law's implementation date," added Goldberg, a Realtor and appraiser with H.E. Goldberg, Realtors in Roseland, N.J.
 "In addition to experiencing a shortage of licensed and certified appraisers, the ability to underwrite mortgages would have been greatly impacted," he added.
 According to Larry Demarcay Jr., 1993 chairman of NAR's Real Estate Appraisal Committee, the increase in the number of licensed and certified appraisers recorded by the association between 1991 and 1992 illustrates how great the problem could have been without an extension.
 "The numbers recorded by NAR really justify the fear that everyone felt at the thought of the first implementation date," said Demarcay, a Realtor and appraiser with Demarcay & Associates in Metairie, La.
 "States new to the appraisal licensing process would not have been able to license enough appraisers to handle large numbers of transactions according to that original time frame," Demarcay added.
 Regulations issued by the Federal Reserve Board and other federal financial institution regulatory agencies distinguish between types of transactions that require the services of licensed or certified appraisers. Certified general appraisers may perform work for all residential and non-residential transactions. Certified residential appraisers may perform work for all residential transactions, but only on non-residential transactions under $250,000. Licensed appraisers may only work on residential transactions valued up to $1 million, and non-residential transactions under $250,000. The Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and the Resolution Trust Corp. require licensed or certified appraisers on transactions valued at $100,000 or above.
 NAR's Appraisal Section, with more than 5,000 members, was created in March 1991 to meet the specialized needs of Realtors involved in the appraisal industry. Currently, more than 80,000 NAR members are either full-time or part-time appraisal practitioners. At its 1992 Annual Convention and Trade Exposition, NAR's board of directors approved an amendment to the association's policy to permit licensed and certified appraisers to qualify for Realtor membership, and thereby become eligible to participate in a board's Multiple Listing Service.
 The NAR, "The Voice for Real Estate," is the nation's largest trade association, representing nearly 750,000 members involved in all aspects of the real estate industry.
 -0- 12/29/92
 /CONTACT: Annemarie Roketenetz, 202-383-7560, or Rose Matthews, 202-383-1135, both of the National Association of Realtors/


CO: National Association of Realtors ST: District of Columbia IN: SU: LEG

TW -- DC002 -- 0258 12/29/92 08:53 EST
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Date:Dec 29, 1992
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