Section 5-20.9-1. – Legislative purpose.

§ 5-20.9-1. Legislative purpose. This legislation provides the department with the statutory authority to develop and implement registration requirements for appraisal management companies (“AMCs”) in connection with valuing properties collateralizing mortgage loans or mortgages incorporated into a securitization or any external third party authorized either by a creditor of a consumer credit transaction secured by […]

Section 5-20.9-10. – Owner requirements.

§ 5-20.9-10. Owner requirements. (a) An appraisal management company applying for a registration in this state may not be owned or controlled by a person if such person has had a license or certification to act as an appraiser denied or revoked in this state or in any other state, or who is not of […]

Section 5-20.9-11. – Controlling person and review appraiser employees.

§ 5-20.9-11. Controlling person and review appraiser employees. (a) Each appraisal management company applying to the department for a registration in this state shall designate one controlling person who will be the principal contact for all communication between the department and the appraisal management company. (b) Any employee of the appraisal management company who has […]

Section 5-20.9-12. – Verification of appraiser licensure or certification.

§ 5-20.9-12. Verification of appraiser licensure or certification. An appraisal management company registered in this state pursuant to this chapter may not enter into contracts or agreements with an independent fee appraiser for the performance of residential real estate appraisal services unless that person is licensed or certified and in good standing pursuant to chapter […]

Section 5-20.9-13. – Appraiser independence.

§ 5-20.9-13. Appraiser independence. (a) It shall be unlawful for any employee, director, officer, or agent of an appraisal management company registered in this state to influence or attempt to influence the development, reporting, or review of an appraisal through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery, or in any other manner. Examples of […]

Section 5-20.9-14. – Prohibited practices.

§ 5-20.9-14. Prohibited practices. An appraisal management company registered in this state shall not: (a) Require an independent fee appraiser to collect the appraisal fee from a borrower, homeowner, or other person; (b) Require an independent fee appraiser to provide the company with the appraiser’s digital signature; (c) Alter, amend, or change an appraisal report […]

Section 5-20.9-15. – Adjudication of disputes between an appraisal management company and an appraiser.

§ 5-20.9-15. Adjudication of disputes between an appraisal management company and an appraiser. (a) Except within the first thirty (30) days after an independent appraiser is added to the appraiser panel of an appraisal management company, an appraisal management company may not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests […]

Section 5-20.9-16. – Investigations.

§ 5-20.9-16. Investigations. (a) If the department has reasonable grounds to believe that an appraisal management company has violated the provisions of this chapter or that facts exist that would be the basis for an order against an appraisal management company, the department may at any time investigate or examine the books, accounts, records, and […]

Section 5-20.9-17. – Order to cease and desist.

§ 5-20.9-17. Order to cease and desist. (a) If the director has reason to believe that any person, firm, corporation, or association is conducting any activities requiring registration under this chapter without obtaining registration or, after the denial, suspension, or revocation of a registration conducts any activities requiring registration under this chapter, the department may […]

Section 5-20.9-18. – Hearing before revocation or suspension or refusal of registration.

§ 5-20.9-18. Hearing before revocation or suspension or refusal of registration. (a) Before refusing to issue a registration or suspending or revoking a registration, the director shall notify the applicant or registrant of his or her intended action and the grounds for the action. The applicant or registrant may, within twenty (20) days, file with […]

Section 5-20.9-19. – Rulemaking authority.

§ 5-20.9-19. Rulemaking authority. The department shall create and adopt rules that promote and effectuate the purposes of this chapter. History of Section.P.L. 2017, ch. 14, § 1; P.L. 2017, ch. 26, § 1.

Section 5-20.9-2. – Definitions.

§ 5-20.9-2. Definitions. (a) All definitions set forth in § 5-20.7-2 are herein incorporated by reference. (b) As used in this chapter, the following terms shall have the following meanings unless the context clearly specifies otherwise: (1) “Appraisal” means an analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests […]

Section 5-20.9-3. – Registration required for appraisal management companies.

§ 5-20.9-3. Registration required for appraisal management companies. (a) It shall be unlawful for any person or entity to act as a real estate appraisal management company, or to directly or indirectly engage in the business of real estate appraisal management in this state, or to advertise or hold himself, herself, or itself out as […]

Section 5-20.9-4. – Requirements for registration.

§ 5-20.9-4. Requirements for registration. (a) Appraisal management companies shall provide the following information upon registration: (1) Name and contact information of the entity seeking registration; (2) Name and contact information of the controlling person for the entity; (3) If the entity is not a corporation domiciled in this state, the name and contact information […]

Section 5-20.9-5. – Consent to service of process.

§ 5-20.9-5. Consent to service of process. Every applicant for registration under this chapter who or that is not a resident of this state shall submit with the application an irrevocable consent that service of process in any action against the applicant arising out of the applicant’s activities as an appraisal management company may be […]

Section 5-20.9-6. – Retention of records.

§ 5-20.9-6. Retention of records. (a) Each appraisal management company shall maintain for five (5) years all business records, either in electronic or paper format, relating to each request for an appraisal service that the appraisal management company has received and to the appraiser who performs the appraisal service for the appraisal management company. (b) […]

Section 5-20.9-7. – Initial registration, renewals, forms, and fees.

§ 5-20.9-7. Initial registration, renewals, forms, and fees. (a) An applicant for registration as an appraisal management company shall submit to the department an application on forms prescribed by the department and pay the required fee(s). (b) The fees for initial registration, renewal, and late renewals shall be determined by the director and established by […]

Section 5-20.9-8. – Expiration of registration.

§ 5-20.9-8. Expiration of registration. A registration granted by the department pursuant to this chapter shall be valid for two (2) years from the date on which it is issued. History of Section.P.L. 2017, ch. 14, § 1; P.L. 2017, ch. 26, § 1.

Section 5-20.9-9. – Grounds for denial, suspension, or revocation of registration — Fines and penalties.

§ 5-20.9-9. Grounds for denial, suspension, or revocation of registration — Fines and penalties. (a) The department may deny, censure, suspend, or revoke a registration of an appraisal management company issued under this chapter, levy fines or impose civil penalties not to exceed five thousand dollars ($5,000) per violation, if in the opinion of the […]