|SUMMARY OF:||A Sunset Report on the Department of Community and Economic Development, Board of Certified Real Estate Appraisers, July 17, 2003.|
Purpose of the Report
In accordance with the intent of Titles 24 and 44 of the Alaska Statutes, we have reviewed the activities of the Board of Certified Real Estate Appraisers (BCREA) to determine if the termination date for the board should be extended. As required by AS 44.66.050(a), the legislative committee of reference shall consider this report as part of the oversight process in determining if BCREA should be reestablished. Currently, AS 08.03.010(c)(20) specifies that BCREA will terminate on June 30, 2004 and will have one year from that date to conclude its administrative operations.
In our opinion, the termination date of BCREA should be extended. The use of state certified real estate appraisers will be a continuing requirement for Alaska’s financial institutions to qualify for federal deposit insurance and to participate in selling mortgage loans to federal government-sponsored enterprises(1). Failure to maintain a real estate appraiser certification program that meets federal requirements could cause the financial institutions – and by extension, the citizens – of the State to not only lose the opportunity to participate in a number of federally-sponsored real estate loan programs, but also the ability to obtain federal deposit insurance. In this context, we recommend that the legislature extend BCREA’s termination date to June 30, 2008.
1 – Government-sponsored enterprises include such entities as the Federal Home Loan Mortgage Corporation (generally referred to as “Freddie Mac”) and the Federal National Mortgage Association (generally referred to as “Fannie Mae”).