§ 279 — Appraisal management companies; application for registration

Section 279. (a) A person desiring to be registered as an appraisal management company shall make written application to the board on forms prescribed by the board setting forth the applicant's qualifications for registration. The application shall be accompanied by the applicable fee as determined annually by the secretary of administration and finance pursuant to section 3B of chapter 7 and any other information the board deems necessary pursuant to rules and regulations adopted by the board. Upon receipt of a completed application and the applicable fee, the board shall make a determination as to whether each person who owns more than 10 per cent of an applicant appraisal management company is of good moral character. The board shall then issue to the qualified applicant a certificate of registration authorizing the applicant to act as a real estate appraisal management company.(b) An application for registration shall include:(i) a certification that the applicant has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company for appraisal assignments on real property located in the commonwealth holds an appraiser license or certification in good standing pursuant to this chapter;(ii) a certification that the applicant has a system in place to review the work of all real estate appraisers that are performing real estate appraisal services for the appraisal management company on a periodic basis to confirm that the real estate appraisal services are being conducted in accordance with the Uniform Standards of Professional Appraisal Practice; and(iii) a certification that the applicant maintains a detailed record of each request for appraisal services that it receives, the name of the appraiser that performs the appraisal services for the appraisal management company and a complete digital copy of every version of each appraisal report completed by the appraiser.(c) A person who directly or indirectly owns more than 10 per cent of an entity applying for registration or an officer, controlling person, employee in charge or managing principal of an entity applying for registration shall, at a minimum, furnish to the board information concerning the person's identity, including fingerprints, for submission to the Federal Bureau of Investigation and to any government agency or entity authorized to receive such information for a state, national and international criminal history background check. A person who directly or indirectly owns more than 10 per cent of an entity applying for registration or any officer, controlling person, employee in charge or managing principal of an entity applying for registration shall be of good moral character as determined by the board. An appraisal management company that is owned, in whole or in part, directly or indirectly, by a person who has had a license or certificate to act as an appraiser or to engage in any activity related to the transfer of real property refused, denied, canceled, surrendered in lieu of revocation or revoked in the commonwealth or in any other state, whether on a temporary or permanent basis, shall not be eligible for registration.(d) Each applicant for registration shall submit the name and address of the applicant's registered agent located in the commonwealth.(e) A registrant's controlling person or employee in charge who has a good faith belief that a real estate appraiser licensed in the commonwealth has violated applicable law or materially violated the Uniform Standards of Professional Appraisal Practice or engaged in unethical conduct shall, not more than 45 days after identifying the violation or unethical conduct, file a complaint with the board.