State Senate Passes Pileggi Bill to Update Appraiser Law

Harrisburg, Pennsylvania

Yesterday, the State Senate unanimously passed a bill, introduced by Senator Dominic Pileggi (R-Delaware, Chester), designed to update Pennsylvania law concerning the qualifications and classes of real estate appraisers. 

In response to the savings and loan crisis, Congress mandated in the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 that all appraisals in certain federally-related transactions must conform to nationwide performance standards developed by the Appraisal Foundation.  The two certification classes for federal transactions are "certified residential" and "certified general" appraisers.  The Appraisal Foundation also promulgated nationwide standards for “licensed appraisers” (who cannot do federal transactions) and for appraiser trainees. 

 Although Pennsylvania law had the proper "certified" categories, it did not contain the other types of licenses recognized by The Appraisal Foundation and other states. The bill provides for the creation of a trainee classification, making the qualifications and standards uniform for those desiring to become an appraiser in Pennsylvania. It also allows the State Board of Certified Appraisers in the Department of State to create an intermediate "licensed" class, and to require continuing education of all classes of appraiser. 

"These changes will make Pennsylvania law consistent with the recommendations of the Appraisal Foundation, as well as the practices of most other states," stated Pileggi. "It is designed to encourage the recognition of Pennsylvania appraisers by other states, and also to encourage persons to enter the appraisal profession."

The bill now goes to the House of Representatives for its consideration.