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Yes. These rules are required by state law. However, there is no federal mandate requiring these rules.
MCL 339.205, states that the department shall promulgate rules which are necessary and appropriate to enable the
department to fulfill its role under the Occupational Code (Code).
MCL 339.308, states that the board shall promulgate rules as required in the article in which it is created as are
necessary and appropriate to fulfill its role.
MCL 339.2605, requires a licensee who performs an appraisal to utilize the USPAP in effect at the time of the
appraisal, and requires the department to utilize the AQB Criteria regarding education, examination, and experience
for licensure. Both the USPAP and AQB Criteria are subject to amendments adopted by the department.
The following provisions require rule making: MCL 339.202, MCL 339.205, MCL, MCL 339.308, Executive
Reorganization Order No. 1991-9, MCL 338.3501; Executive Reorganization Order No. 1996-2, MCL 445.2001;
Executive Reorganization Order No. 2003-1, MCL 445.2011, and Executive Reorganization Order No. 2011-4, MCL
445.2030.
B. If these rules exceed a federal standard, please identify the federal standard or citation, describe why it is
necessary that the proposed rules exceed the federal standard or law, and specify the costs and benefits arising out
of the deviation.
The proposed rules do not exceed a federal standard.
2. Compare the proposed rules to standards in similarly situated states, based on geographic location, topography,
natural resources, commonalities, or economic similarities.
The proposed rules are consistent with the standards required by the Code and the AQB Criteria. All states require
appraisers to be licensed or certified to provide appraisals to federally regulated lenders and use AQB minimum
requirements. The proposed rules are similar to the requirements of other states in the Great Lakes region.
All states in the country, which includes the Great Lakes Region (Indiana, Illinois, Ohio, Minnesota, Pennsylvania,
and New York), require real estate appraisers to comply with Title XI of the Financial Institutions Reform, Recovery
and Enforcement Act. 12 USC 3331 – 3351. Additionally, all real estate appraisers in the Great Lakes Region must
follow the ASB’s USPAP when performing an appraisal. These are federal laws that supersede state law in the area of
real estate appraisals. This means that states may not pass rules that are inconsistent with the federal law and all rules
must comply with and be consistent with the AQB Criteria.
A. If the rules exceed standards in those states, please explain why and specify the costs and benefits arising out of
the deviation.
The proposed rules do not exceed standards in other states. All states must follow USPAP for state-licensed and state-
certified appraisers involved in federally related real estate transactions. All states must also follow the AQB Criteria,
which establishes the minimum education, experience, and examination requirements for real property appraisers to
obtain state certification.
3. Identify any laws, rules, and other legal requirements that may duplicate, overlap, or conflict with the proposed
rules.
The proposed rules are consistent with the Code, the ASB USPAP, which is authorized by the United States Congress,
the Appraisal Subcommittee’s (ASC) review results, and the AQB Criteria. The department is not aware of any other
laws, rules, or legal requirements that duplicate, overlap, or conflict with the proposed rules.
A. Explain how the rules have been coordinated, to the extent practicable, with other federal, state, and local laws
applicable to the same activity or subject matter. This section should include a discussion of the efforts undertaken
by the agency to avoid or minimize duplication.
The proposed rules have been coordinated with the Code, the ASB USPAP, authorized by the United States Congress,
the ASC’s review results, and the AQB Criteria as required by state law and the provisions of Title XI of the Financial
Institutions Reform, Recovery and Enforcement Act of 1989. 12 USC 3331 et seq.
Purpose and Objectives of the Rule(s)
MCL 24.245(3)