H.F. 682 Section 1. Section 543D.1, Code 2021, is amended to read as 1 follows: 2 543D.1 Short title. 3 This chapter shall be known and may be cited as the “Iowa 4 Voluntary Appraisal Standards and Appraiser Certification Law” . 5 Sec. 2. Section 543D.2, Code 2021, is amended by adding the 6 following new subsections: 7 NEW SUBSECTION . 4A. “Appraisal review” means developing 8 and communicating an opinion under the uniform standards of 9 professional appraisal practice review standards regarding the 10 quality of an appraiser’s work product, with or without also 11 providing an opinion of value, prepared as part of an appraisal 12 assignment. “Appraisal review” does not include quality control 13 solely to assure an appraisal report is complete, or to correct 14 grammatical, typographical, or similar errors. 15 NEW SUBSECTION . 8A. “Federally related transaction” means 16 any financial transaction related to real estate which a 17 federal financial institutions regulatory agency engages in, 18 contracts for, or regulates, and which requires the services 19 of an appraiser pursuant to federally related transaction 20 regulations. 21 NEW SUBSECTION . 8B. “Federally related transaction 22 regulations” means regulations established by the comptroller 23 of the currency, the board of governors of the federal reserve 24 system, the federal deposit insurance corporation, or the 25 national credit union administration pursuant to sections 1112, 26 1113, and 1114 of Tit. XI of the federal Financial Institutions 27 Reform, Recovery, and Enforcement Act, 12 U.S.C. §3341 – 3343. 28 Sec. 3. Section 543D.2, subsection 9, Code 2021, is amended 29 to read as follows: 30 9. “Review appraiser” means a person who is responsible 31 for the administrative approval of the appraised value of 32 real property or assures that appraisal reports conform to 33 the requirements of law and policy, or that the value of real 34 property estimated by appraisers represents adequate security, 35 -1- LSB 1361HV (3) 89 jda/rn 1/ 7

H.F. 682 fair market value, or other defined value conducting an 1 appraisal review . 2 Sec. 4. Section 543D.3, Code 2021, is amended to read as 3 follows: 4 543D.3 Purposes. 5 1. The purpose of this chapter is to establish standards 6 for real estate appraisals and a procedure for the mandatory 7 certification of real estate appraisers performing appraisals 8 for federally related transactions, the voluntary certification 9 of real estate appraisers performing appraisals not related to 10 federally related transactions, and the mandatory registration 11 of associate real estate appraisers. 12 1A. A person who performs an appraisal, other than an 13 appraisal review, for a federally related transaction as 14 it relates to real estate located in this state must be 15 a certified real estate appraiser under this chapter or a 16 registered associate real estate appraiser acting under the 17 direct supervision of a certified real estate appraiser if the 18 services of a certified real estate appraiser are required by 19 federal law or regulation. 20 2. A person who is not a certified real estate appraiser 21 under this chapter may appraise real estate for compensation if 22 certification is not required by this chapter or by federal or 23 state law, rule, or policy. However, an employee of the state 24 department of transportation whose duties include appraisals 25 of property pursuant to chapter 6B must be a certified real 26 estate appraiser under this chapter or a registered associate 27 real estate appraiser acting under the direct supervision 28 of a certified real estate appraiser. Notwithstanding this 29 subsection, in connection with the performance of an appraisal 30 of real estate located in this state, the use of the title 31 “certified real estate appraiser”, “associate real estate 32 appraiser”, or any other like title, including a title that 33 suggests an individual is certified under the laws of this or 34 another state, shall only be used to refer to or by individuals 35 -2- LSB 1361HV (3) 89 jda/rn 2/ 7

H.F. 682 who hold a certificate or registration under this chapter. 1 3. An employee of the state department of transportation 2 whose duties include appraisals of property pursuant to chapter 3 6B must be a certified real estate appraiser under this chapter 4 or a registered associate real estate appraiser acting under 5 the direct supervision of a certified real estate appraiser. 6 Sec. 5. Section 543D.11, Code 2021, is amended to read as 7 follows: 8 543D.11 Certification by reciprocity. 9 1. If, in the determination by the board, another state 10 is deemed to have substantially equivalent certification 11 requirements, an applicant who is certified under the laws of 12 the other state may obtain a certificate as a certified real 13 estate appraiser upon terms and conditions as determined by the 14 board. 15 2. The board may recognize on a temporary basis the 16 certification or license of an appraiser issued by another 17 state, including where the property to be appraised is part 18 of a federally related transaction. An appraiser engaging in 19 such temporary practice shall apply for and obtain a temporary 20 practice permit from the board before performing any services 21 in relation to an appraisal, is subject to the full regulatory 22 jurisdiction of the board, and is governed by the laws and 23 rules administered by the board. 24 Sec. 6. Section 543D.15, subsection 1, Code 2021, is amended 25 to read as follows: 26 1. a. The term “certified real estate appraiser” title 27 “certified real estate appraiser”, “associate real estate 28 appraiser”, or any other like title shall only be used to refer 29 to individuals who hold the certificate or registration, as 30 applicable, and shall not be used in connection with or as part 31 of the name or signature of a firm, partnership, corporation, 32 or group, or in a manner that it may be interpreted as 33 referring to a firm, partnership, corporation, group, other 34 business entity, or anyone other than an individual holder of 35 -3- LSB 1361HV (3) 89 jda/rn 3/ 7

H.F. 682 the certificate or registration . 1 b. In connection with an appraisal assignment performed on 2 real estate located in this state, the title “certified real 3 estate appraiser”, “associate real estate appraiser”, or any 4 other like title, including a title that suggests an individual 5 is licensed or certified under the laws of this state or 6 another state, shall only be used to refer to individuals who 7 hold a certificate or registration under this chapter. 8 Sec. 7. Section 543D.20, subsection 5, Code 2021, is amended 9 to read as follows: 10 5. Persons who appraise real estate where certification is 11 not required by this chapter or by federal or state law, rule, 12 or policy, and who are not assisting a certified real estate 13 appraiser in the development or reporting of an appraisal 14 assignment that is required by this chapter , or by federal 15 or state law, rule, or policy to be performed by a certified 16 real estate appraiser, are not required to register with the 17 board. Notwithstanding this subsection, in connection with the 18 performance, or assistance in the performance, of an appraisal 19 of real estate located in this state, the use of the title 20 “associate real estate appraiser” or any other like title, 21 including a title that suggests an individual is an associate 22 real estate appraiser under the laws of this state or another 23 state, shall only be used to refer to individuals who hold a 24 registration under this chapter. 25 Sec. 8. Section 543D.21, subsection 4, Code 2021, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . 0a. A violation of section 543D.3, 28 subsections 1A, 2, or 3. 29 Sec. 9. Section 543D.21, subsection 4, paragraph c, Code 30 2021, is amended to read as follows: 31 c. A violation of section 543D.20, subsection 1 or 5 . 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -4- LSB 1361HV (3) 89 jda/rn 4/ 7

H.F. 682 This bill relates to the Iowa appraisal standards and 1 appraiser certification law. 2 Current law provides that Code chapter 543D shall be known 3 as the Iowa voluntary appraisal standards and appraiser 4 certification law. The bill provides that Code chapter 543D 5 shall be known as the Iowa appraisal standards and appraiser 6 certification law. 7 The bill defines “appraisal review” as developing and 8 communicating an opinion under the uniform standards of 9 professional appraisal practice review standards regarding 10 the quality of an appraiser’s work product prepared as part 11 of an appraisal assignment. The bill defines “federally 12 related transaction” as any financial transaction related to 13 real estate which a federal financial institutions regulatory 14 agency engages in, contracts for, or regulates, and which 15 requires the services of an appraiser pursuant to federally 16 related transaction regulations. The bill defines “federally 17 related transaction regulations” as regulations established 18 by the comptroller of the currency, the board of governors 19 of the federal reserve system, the federal deposit insurance 20 corporation, or the national credit union administration 21 pursuant to sections 1112, 1113, and 1114 of Tit. XI of 22 the federal Financial Institutions Reform, Recovery, and 23 Enforcement Act, 12 U.S.C. §3341 – 3343. The bill modifies 24 the definition of “review appraiser” to mean a person who is 25 responsible for conducting an appraisal review. 26 The bill provides that the purpose of Code chapter 543D is 27 to establish a procedure for the mandatory certification of 28 real estate appraisers performing appraisals for federally 29 related transactions and voluntary certification of real estate 30 appraisers performing appraisals that are not related to 31 federally related transactions. 32 The bill requires a person to be a certified real estate 33 appraiser if the person performs an appraisal for a federally 34 related transaction as it relates to real estate located in 35 -5- LSB 1361HV (3) 89 jda/rn 5/ 7

H.F. 682 this state. Additionally, the bill requires a person who 1 is a registered associate real estate appraiser to be under 2 the direct supervision of a certified real estate appraiser 3 if the person performs an appraisal for a federally related 4 transaction as it relates to real estate located in this state, 5 and if the services of a certified real estate appraiser are 6 required by federal law. 7 Current law provides that a person who is not a certified 8 real estate appraiser may appraise real estate if certification 9 is not required by Code chapter 543D or any other state or 10 federal law. The bill provides that, notwithstanding that 11 provision, in connection with an appraisal of real estate 12 located in this state, the title certified real estate 13 appraiser, associate real estate appraiser, or any other 14 similar title shall only be used by an individual who holds a 15 certificate or registration under Code chapter 543D. 16 The bill provides that the real estate appraiser examining 17 board may recognize on a temporary basis the certification or 18 license of an appraiser issued by another state. An appraiser 19 who has been recognized on a temporary basis is required to 20 apply for and obtain a temporary practice permit from the board 21 before performing any services related to an appraisal and is 22 governed by the laws and rules administered by the board. 23 The bill provides that the title certified real estate 24 appraiser, associate real estate appraiser, or any similar 25 title shall only be used to refer to individuals who hold 26 the appropriate certificate or registration. Additionally, 27 the bill provides that, in connection with an appraisal 28 assignment performed on real estate located in this state, the 29 title certified real estate appraiser, associate real estate 30 appraiser, or any other like title shall only be used to refer 31 to individuals who hold a certificate or registration under 32 Code chapter 543D. 33 Current law does not require registration with the board 34 of those who appraise real estate where certification is not 35 -6- LSB 1361HV (3) 89 jda/rn 6/ 7

H.F. 682 required by Code chapter 543D or any other state or federal 1 law, and who are not assisting a certified real estate 2 appraiser in the development of an appraisal assignment that is 3 required by Code chapter 543D or any other state or federal law 4 to be performed by a certified real estate appraiser. The bill 5 provides that, notwithstanding that provision, in connection 6 with an appraisal of real estate located in this state, the 7 title associate real estate appraiser or any other similar 8 title shall only be used to refer to or by an individual who 9 holds a certificate or registration under Code chapter 543D. 10 The bill authorizes civil penalties against a person who is 11 not certified under Code chapter 543D for a violation of Code 12 section 543D.3, subsection 1A, 2, or 3, or for a violation of 13 Code section 543D.20, subsection 5. The maximum civil penalty 14 that may be imposed is $1,000 for each violation. 15 -7- LSB 1361HV (3) 89 jda/rn 7/ 7