The Alabama Legislature enacted legislation, effective May 29, 2019, allowing state licensed appraisers to perform evaluations of property authorized by federal financial institutions for transactions that do not require an appraisal.
Act 2019-282 states that appraisers “shall not be subject to any provision” of the state’s appraiser licensing law when performing an evaluation. The evaluation report must include a disclaimer stating “this is not an appraisal”, and the requirements for an appraiser to comply with the Uniform Standards of Professional Appraisal Practice DO NOT APPLY.
Also, evaluations may not be used for experience credit by appraisers who intend to upgrade their license. Effective immediately, appraisers must attach a copy of the engagement letter to their log for each appraisal listed before the log is submitted to the Board.
Additionally, the Law clarifies that evaluations are “governed by federal law and rules of the federal financial institution regulatory agencies, and NOT THE BOARD.” Therefore, the Board will not accept complaints against appraisers regarding evaluations they have completed.
Our Board has established an Inactive Status for Appraisers. For more information: Inactive Status / Administrative Code 780-x-12-.01 5-04-15