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Appraisers “Furious” at Noem’s Reckless and Possibly Illegal Appraiser Rule Changes

My reading of the Professional Appraisers Association of South Dakota’s criticism of rule changes proposed by Governor Kristi Noem’s new Appraiser Certification Program chief Scott Amundson appears to have been accurate: according to Watertown appraiser and columnist Brad Johnson, appraisers are “furious” with the Noem Administration’s lack of communication with appraisers and its reckless and possibly illegal loosening of standards for entering the appraisal profession:

Noem complained during the media firestorm that becoming a real estate appraiser was too difficult and she simply was trying to cut regulation.

Apparently, the state agency governing appraisers then began ignoring its rules and proposed rules dramatically relaxing the licensing process.

This time, Appraiser Certification Program staff did not consult with the Professional Appraisers Association of South Dakota, which represents about two-thirds of the state’s appraisers.

Imagine the industry’s surprise when it had only a couple days advance notice of an Oct. 7 public hearing at which the state planned to eliminate a requirement that entry level appraisers pass a national exam before appraising property.

Under the new rule, anyone who takes a couple of appraisal courses can then start valuing real estate.

Current law requires passing an exam, although the Professional Appraisers Association of South Dakota discovered the state agency is breaking its rules by issuing new licenses without an exam.

The association, understandably, is furious [Brad Johnson, “Appraisal Organization Opposes State’s Rule Changes,” Watertown Public Opinion, 2021.10.29].

The Legislature’s Rules Review Committee is supposed to look at these offending, appraiser-opposed rule changes at its November 15 meeting (9:00 a.m., in Pierre, Capitol Room 414). The committee has not yet posted an agenda for that meeting, but appraisers are likely watching for that agenda and chomping at the bit to testify to the committee.

16 Comments

  1. Dana P 2021-11-04 09:11

    Jeebuz

    ‘removing barriers to entry into the profession.’

    Let’s hope that none of Noem’s relatives ever wants to become a doctor or something.

  2. jerry 2021-11-04 10:07

    Autocracy is the order of the day. I would be suspect from now on regarding the value of property that I want to purchase or to sell. I guess it depends on what kind of night you had before you set out to get your figures straight… or how much of a bribe you can get to over price or under price. Fits right into South Dakota corruption. Thanks NOem

  3. O 2021-11-04 10:21

    I appreciate the irony of how GOP faithful like Johnson never believe in “big government” or “regulation” until it is their industry and livelihood protected by them.

    The GOP has made similar forays about teachers and teacher certification.

  4. Porter Lansing 2021-11-04 10:30

    Brad Johnson was a high school classmate.

    A bit too much of a nerd for me to hang with.

    His assessment of assessment is valid, centered, and cautioning.

  5. bearcreekbat 2021-11-04 11:00

    Maybe this is Noem’s way of showing that her family doesn’t get special treatment. By jettisoning the qualification exam, Noem has assured that anyone, not just a Noem family member, who could not pass the standard exam can now become an appraiser in SD.

  6. mike from iowa 2021-11-04 11:09

    Dumb it down so everyone can get a participation ribbon or trophy. That’s the magat way, you betcha.

  7. sx123 2021-11-04 11:15

    I imagine they are angry. They had to pass some tests…

  8. O 2021-11-04 11:24

    MFI, I more see it as destroy the regulatory agency so that the 1% can manipulate the already tilted system to their further benefit. Noem’s nepotism/efficiency circumstance becomes the stalking horse for deregulation. Caveat emptor!

  9. mike from iowa 2021-11-04 12:24

    O, you are likely right.

  10. ArloBlundt 2021-11-04 14:10

    well…this process of the Governor’s puts the value of every South Dakota property in doubt, sooner or later.

  11. O 2021-11-04 14:26

    Arlo, we have short memories on why overvalued property is problematic (for the little guy). After the investors push (and pop) a bubble as the savings and loans did under Bush or mortgages did because of Clinton’s repeal of Glass-Steagall and Wall Street is made whole, we can all sit around and ask why there was no regulatory check on how valuations are made.

  12. Francis Schaffer 2021-11-04 16:38

    Well if the Fed is allowed to increase interest rates we will be back to 1893, 1907,1920, 1929 or 2008; pick one. Stock market crashes moneyed people buy stock cheaply fleecing those wiped out and the politicians get campaign money to fix this recurring problem to the satisfaction of the puppet masters at the major central bankers.

  13. cibvet 2021-11-04 17:59

    No doubt SD will make the PBS Frontline investigation of the Pandora papers on Nov. 9. Unlikely a kristi interview.

  14. larry kurtz 2021-11-05 10:33

    This scandal smells like my vagina: how Republican South Dakota Governor Kristi Noem markets her message.

  15. Bonnie B Fairbank 2021-11-05 11:43

    I saw this article earlier at Y!, John, and enjoyed the caption placing Sioux Falls in Idaho. Who’s the crestfallen stooge to Her Majesty’s left that looks like he wants the earth to open up and swallow him for being in the same room with her? Anybody know?

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