N.M. Admin. Code § 16.62.4.8

Current through Register Vol. 36, No. 1, January 14, 2025

Section 16.62.4.8 - RESIDENTIAL CERTIFICATION

A holder of a residential certificate is eligible to prepare appraisals of all residential real estate for federally related transactions or other uses. He/she may appraise nonresidential real estate provided such appraisals are not described or referred to as meeting the requirements of FIRREA. The holder of a residential certificate may not assume or use any title, designation or abbreviation likely to create the impression of general certification.

A. The certified residential real estate appraiser classification qualifies the appraiser to appraise one to four residential units without regard to value or complexity. The classification includes the appraisal of vacant or unimproved land that is utilized for one to four family purposes or for which the highest and best use is for one to four family purposes. The classification does not include the appraisal of subdivisions for which a development analysis/appraisal is necessary.

B. All certified residential real estate appraisers must comply with the competency rule of the national uniform standards of professional appraisal practice (USPAP).

C. Applicants for certification in residential appraisal in the state of New Mexico must:

(1) Criminal history background check: All applicants for initial issuance or reinstatement of a certificate and license in New Mexico shall be required to be fingerprinted to establish positive identification for a state and federal criminal history background check.

(a) The applicant will register online, through the approved department of public safety website, with the board's Originating Agency Identification (ORI) number and make payment with registration. After the process is complete, the applicant will receive a registration confirmation.

(b) Results will be sent to the board electronically. The board shall not issue a certificate or license until the applicant's background check has been successfully completed.

(c) Out-of-State applicants, who are unable to visit an approved live scan fingerprinting facility, may follow the same registration process and submit a hardcopy fingerprint card to the approved live scan fingerprinting facility. The results will be sent to the board electronically. The board shall not issue a certificate or license until the applicant's background check has been successfully completed.

(2) have reached the age of majority;

(3) prove successful completion of real estate appraisal education of at least 200 board-approved creditable class hours of qualifying education as outlined in the required core curriculum of the appraiser qualifications board (AQB); real estate appraisal education programs completed for credit toward this requirement shall include coverage of the following modules:

(a) basic appraisal principles 30 hours

(b) basic appraisal procedures 30 hours

(c) the 15 hour national USPAP course and examination 15 hours

(d) residential market analysis and highest and best use 15 hours

(e) residential appraiser site valuation and cost approach 15 hours

(f) residential sales comparison and income approaches 30 hours

(g) residential report writing and case studies 15 hours

(h) statistics, modeling and finance 15 hours

(i) advanced residential applications and case studies 15 hours

(j) appraisal subject matter electives 20 hours

(4) complete college-level education experience under one of the following scenarios: (Effective May 1, 2018, the appraiser qualifications board of the appraisal foundation adopted changes of the real property appraiser qualification criteria);

(a) Option #1: hold a bachelor's degree or higher from an accredited college or university in any field of study;

(b) Option #2: hold an Associate's Degree in a field of study related to:

(i) Business Administration

(ii) Accounting

(iii) Finance

(iv) Economics; or

(v) Real Estate

(c) Option #3; Successful completion of 30 semester hours of college-level courses in each of the following specific topic areas;

(i) English Composition (three hours)

(ii) Microeconomics (three hours)

(iii) Macroeconomics (three hours)

(iv) Finance (three hours)

(v) Algebra, Geometry, or Higher Math (three hours)

(vi) Statistics (three hours)

(vii) Computer Science (three hours)

(viii) Business Law or Real Estate Law (three hours)

(ix) Two elective courses in any of the above topics, or in Accounting, Geography, Agricultural Economics, Business Management, or Real Estate (three) hours each).

(d) Option #4: Successful completion of at least 30 hours of College Level Examination Program® (CLEP)® examinations that cover each of the following specific topic areas:

Equivalency Table
CLEP Exams	CLEP Semester Hours Granted	Applicable College Classes
College Algebra	3	Algebra, Geometry, Statistics, or higher mathematics
College Composition	6	English Composition
College Composition Modular	3	English Composition
College Mathematics	6	Algebra, Geometry, Statistics, or higher mathematics
Principles of Macroeconomics	3	Macroeconomics or Finance
Principles of Microeconomics	3	Microeconomics or Finance
Introductory Business Law	3	Business Law or Real Estate Law
Computer Science	3	Information Systems

(e) Option #5: any combination of Option #3 and Option #4 that includes all of the topics identified.

(f) Option #6: No college-level education required. This option only applies to appraisers who have held a Licensed Residential credential for a minimum of five years and have no record of any adverse, final, and non-appealable disciplinary action affecting the Licensed Residential appraiser's legal eligibility to engage in appraisal practice with five years immediately preceding the date of application for a Certified residential credential.

(5) pass examination: the appraiser qualifications board (AQB) approved certified real estate appraiser examination must be successfully completed; there is no alternative to successful completion of the examination; the requisite experience requirement must be met within 24 months, successful completion of the examination is valid for a period of 24 months;

(6) assure courses taken in satisfying the qualifying education requirements are not repetitive in nature; each course credited toward the required number of qualifying education hours shall represent a progression in which the appraiser's knowledge is increased;

(7) successfully complete a written examination on the New Mexico Real Estate Appraisers Act, administered by the board;

(8) pay the fee set out in 16.62.12.8 NMAC;

(9) meet the minimum criteria for the state residential certificate classification issued by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation;

(10) submit a duly made application to the board office.

D. Trainee and licensed appraisers wishing to change to the residential certified appraiser classification must also satisfy the college degree requirement.

E. Appraisers holding a valid general certified appraiser credential satisfy the educational requirements for the residential certified appraiser credential.

F. Appraisers holding a valid trainee appraiser credential may satisfy the educational requirements of 125 board-approved hours for the certified residential real property appraiser credential by completing the following additional educational hours:

(1) residential market analysis and highest and best use 15 Hours

(2) residential appraiser site valuation and cost approach 15 Hours

(3) residential sales comparison and income approaches 30 Hours

(4) residential report writing and case studies 15 Hours

(5) statistics, modeling and finance 15 Hours

(6) advanced residential applications and case studies 15 Hours

(7) appraisal subject matter electives 20 Hours

G. Appraisers holding a valid licensed residential real property appraiser credential may satisfy the educational requirements of 50 board-approved hours for the certified residential real property appraiser credential by completing the following additional educational hours:

(1) statistics, modeling and finance 15 Hours

(2) advanced residential applications and case studies 15 Hours

(3) appraisal subject matter electives 20 Hours

H. Experience:

(1) Except as provided by Paragraph (2) of Subsection (H) of this rule, applicants for state residential certification must have a minimum of 1,500 hours of experience in real property appraisal obtained during no fewer than twelve (12) months as defined in 16.62.1 NMAC, submitted on a form prescribed by the board and attested to by the supervising appraiser under whose supervision the experience was obtained. Experience logs submitted from jurisdictions located outside of New Mexico will be accepted subject to the criteria provided in Subparagraph (d) of Paragraph (2) of Subsection I of 16.62.2.9 NMAC.

(2) As an alternative method of obtaining all required experience credits necessary for licensure as a Residential Certified Appraiser, the board will accept experience obtained from an appraisal qualification board-approved provider through a Practical Applications of Real Estate Appraisal (PAREA) program, for Residential Certified Appraisers.

N.M. Admin. Code § 16.62.4.8

10/1/97; 16.62.4.8 NMAC - Rn & A, 16 NMAC 62.4.8, 9/13/2004; A, 11/25/06; A, 06/13/08; A, 08/21/10, Amended by New Mexico Register, Volume XXV, Issue 23, December 15, 2014, eff. 1/1/2015, Amended by New Mexico Register, Volume XXX, Issue 01, January 15, 2019, eff. 2/3/2019, Amended by New Mexico Register, Volume XXXII, Issue 19, October 13, 2021, eff. 10/30/2021, Amended by New Mexico Register, Volume XXXIV, Issue 18, September 26, 2023, eff. 9/26/2023