The Appraiser Qualifications Board (AQB) issued its first Exposure Draft of Practical Applications of Real Estate Appraisal (PAREA), The Appraisal Foundation (TAF) announced in a release.
This is the follow up to the Discussion Draft that the Board issued in March.
The AQB will be seeking public feedback and insights from appraisers and stakeholders regarding PAREA. The board will be conducting a webinar at 1 p.m. ET Sept. 13 and hold a public meeting in St. Petersburg, Fla., at 9 a.m. ET Nov. 1.
Register for Webinar and learn more so as to share your thoughts about PAREA as the Board will be taking your questions. With regards to the AQB public meeting in Florida, if you cannot attend, you can view it via livestream. Register for that at Livestream Registration.
The first section of the document deals with general information. The AQB’s public examination of PAREA began with a Concept Paper published July 9, 2015. As the PAREA concept continued to evolve, the AQB identified important aspects of the concept that arose as part of its due diligence.
“This exposure draft continues that examination, and moves PAREA one step closer from concept to reality,” the AQB said. “Nevertheless, the potential impact PAREA could have necessitates the AQB’s ‘get it right, not just get it done’ approach.”
The AQB said it continues to believe that PAREA could provide appraiser training in a manner that meets, and in some cases, exceeds the training available in the existing supervisor/trainee model.
Section 2 of the draft covered PAREA program parameters such as maximum allowable experience. Feedback received on this topic was somewhat mixed, according to the AQB draft. Some believe that regardless of the quality training PAREA could offer, participants should still be required to obtain some portion of “traditional” training to satisfy the experience requirements. Others believe that because of the technological advances PAREA may offer, participants would be better suited if they could obtain 100 percent of the required experience through PAREA training.
“Those in this camp are quicker to embrace the role technology can potentially play, and cite shortcomings in the more traditional experience model, such as those discussed previously in this document,” the draft stated. “Some feedback received suggested that requiring participants to obtain any amount of experience under the current model simply does not resolve the problem because participants may still encounter difficulty finding a qualified supervisor that would provide quality training for the remaining required hours. The AQB believes that PAREA will offer comprehensive, thorough training, which would result in successful participants satisfying the experience requirements.”
The AQB also states in the document that it believes the best chance of success for PAREA participants requires completion of all the qualifying education for the classification prior to enrolling in a PAREA program.
Section 3 deals with PAREA content outlines and rationale. The AQB believes PAREA may alleviate the challenges in obtaining appraisal experience as described at the outset of this document. PAREA training would be developed for the Licensed Residential and Certified Residential real property appraiser classifications.
Section 4 of the draft outlines delivery methods and techniques in PAREA training.
“The AQB is proposing minimum content outlines for Licensed Residential and Certified Residential PAREA programs,” the draft states. “If adopted, the content would become part of the Criteria and, therefore, binding. As a result, any entity wishing to develop PAREA training would be required to meet, at a minimum, these content outlines.
“In this section, the AQB is proposing a Guide Note that describes how the required content in PAREA should be delivered,” the AQB adds. “Because Guide Notes are not binding, entities would not necessarily be required to follow the methods described; however, these methods might be considered a ‘safe harbor’ for those wishing to develop PAREA simulated training programs.”
TAF intends to develop a model PAREA training program that would follow the delivery methods identified in the Guide Note, and allow qualified entities to offer the training via license agreements. For entities wishing to create their own PAREA training, the AQB would review such programs for equivalency to the model training program developed by TAF.