(a) The federal government, as a result of the massive real estate defaults in “savings and loan” financing, has drastically overhauled the standards for real estate appraisers where federally insured financing is involved. The provisions of the federal law (Financial Institution Reform Recovery and Enforcement Act of 1989) go into effect in July of 1991. Unless Guam has complied with the standards prescribed therein federally insured loans by banks and savings and loan associations can no longer be made. Home loans on Guam will thus be essentially shutdown. To comply with the federal law it is the intent of the Legislature to empower the Director of Revenue and Taxation as the regulator of real estate appraisers on Guam, and to assure compliance with the federal guidelines.

(b) I Liheslaturan Guåhan finds that a Federal audit was conducted in May 2002 by the Appraisal Subcommittee, relative to the licensing of real estate appraisers by the Guam Department of Revenue and Taxation.

I Liheslaturan Guåhan also finds that as a result of the Federal audit, the Appraiser Qualifications Board has suggested amendments to the Real Estate Appraiser Law of Guam.

I Liheslaturan Guåhan further finds that the main points for the amendments to the Real Estate Appraiser Law of Guam are:

(1) to increase the minimum number of classroom hours of real estate appraiser courses prior to licensing;

(2) to provide criteria in getting credits for distance education courses, such as CD-ROM, on-line learning correspondence courses and video correspondence courses;

(3) to require applicants for real estate appraiser licensing to show successful completion of fifteen (15) hours of National Uniform Standards of Professional Appraisal Practice; and

COL 06112010
22 Guam Code Ann. BUSINESS REGULATIONS
CH. 30 REAL ESTATE APPRAISERS

(4) to allow Guam to enter into reciprocity agreements with other states and the Commonwealth of the Northern Mariana Islands for the licensing of real estate appraisers and to allow temporary practice for federally-related transactions.

Therefore, it is the intent of I Liheslaturan Guåhan that it is in the interest of Guam==s residents and financial institutions to improve the reliability of the valuation of appraised real properties.

SOURCE: Sub-section (a) added as un-codified section by P.L. 21-28:1, codified by compiler. Sub-section (b) added as un-codified section by P.L. 27-115:1, codified by compiler.