§ 20-529 — Registration of appraisal management companies. Fees.

Connecticut § 20-529

• Jurisdiction: Connecticut
• Title 20: Professional and Occupational Licensing, Certification, Title Protection and Registration. Examining Boards
• Ch. 400g: Real Estate Appraisers and Appraisal Management Companies

Text

(a) No appraisal management company, other than a federally regulated appraisal management company, shall, without first obtaining a registration from the Department of Consumer Protection, (1) engage or attempt to engage in business as an appraisal management company in this state; (2) perform or attempt to perform appraisal management services in this state; or (3) advertise or hold itself out as engaging in business as an appraisal management company in this state. (b) Each appraisal management company, other than a federally regulated appraisal management company, shall apply to the Commissioner of Consumer Protection, in writing, on a form provided by the commissioner. The application shall include (1) the company's name, business address and telephone number; (2) if such company is domiciled in another state, the name, address and telephone number of the company's agent for service of process in this state, and the Uniform Consent to Service of Process form to be completed by the company; (3) the name, address and telephone number of any person or business entity owning an equity interest, or the equivalent, of the company; (4) a certification by the company that no person or business entity named in subdivision (3) of this subsection has had an appraiser license or certificate denied, refused to be renewed, suspended or revoked in any state; (5) the name, address and telephone number of a controlling person of the company who will serve as the main contact for communications between the commissioner and the appraisal management company; (6) the name, address and telephone number of a compliance manager of the company; and (7) any other information the commissioner may require. Each such application shall be accompanied by a fee of one thousand dollars. (c) Before issuing or renewing a certificate of registration, the commissioner may: (1) Certify that each appraisal management company applying for a certificate of registration has procedures in place to (A) verify that a person being added to the appraiser panel of the company holds a certificate in good standing in accordance with section 20-509 , (B) maintain detailed records of each appraisal request or order it receives and of the appraiser who performs such appraisal, and (C) review on a periodic basis the work of all appraisers performing appraisals for the company, to ensure that such appraisals are being conducted in accordance with the USPAP; (2) Determine to the commissioner's satisfaction that each person owning an interest in an appraisal management company is of good moral character and such person has submitted to a background investigation, as deemed necessary by the commissioner; (3) Determine to the commissioner's satisfaction that the controlling person (A) has never had an appraiser license or certificate denied, refused to be renewed, suspended or revoked in any state, (B) is of good moral character, and (C) has submitted to a background investigation, as deemed necessary by the commissioner; and (4) Determine to the commissioner's satisfaction that each appraisal management company compensates appraisers in compliance with the federal Truth-in-Lending Act, 15 USC Section 1639e(i), as amended from time to time. (d) The commissioner shall issue a registration number to each appraisal management company registered in this state and shall publish annually a list of appraisal management companies that are registered with the Department of Consumer Protection. (e) All certificates of registration issued under the provisions of this section shall expire biennially. The fee for renewal of a certificate of registration shall be one thousand dollars.

Legislative History

(P.A. 10-77, S. 2; P.A. 14-52, S. 24; P.A. 19-183, S. 2; P.A. 21-37, S. 3; P.A. 24-142, S. 7.) History: P.A. 14-52 amended Subsec. (c)(1)(A) to replace “license” with “certificate”, effective July 1, 2014; P.A. 19-183 amended Subsec. (c) by adding Subdiv. (4) re compensation for appraisers in compliance with federal Truth-in-Lending Act; P.A. 21-37 amended Subsec. (b)(3) to delete “ten per cent or more of” and amended Subsec. (c)(2) to replace “more than ten per cent of” with “an interest in”, effective July 1, 2021; P.A. 24-142 amended Subsecs. (a) and (b) by adding provisions re federally regulated appraisal management companies, and made a conforming change in Subsec. (a), effective June 6, 2024.