§ 43-23.5-01 — Definitions

North Dakota § 43-23.5-01

• Jurisdiction: North Dakota
• Title 43: Occupations and Professions
• Ch. 43-23.5: Appraisal Management Companies

Text

As used in this chapter, unless the context otherwise requires:
1. "Appraisal firm" means any person or entity that exclusively employs persons on an
employer and employee basis for the performance of real estate appraisal services in
the normal course of its business and the real estate appraisal services being
performed are in accordance with the uniform standards of professional appraisal
practices.
2. "Appraisal management company" means, in connection with valuing properties
collateralizing mortgage loans or mortgages incorporated into a securitization, any
external third party that oversees a network or panel of more than fifteen certified or
licensed appraisers in this state or twenty-five or more nationally within a given year,
that is authorized either by a creditor of a consumer credit transaction secured by a
consumer's principal dwelling or by an underwriter or other principal in the secondary
mortgage markets that engages in appraisal management services.
3. "Appraisal management services" means to, directly or indirectly, perform any of the
following functions on behalf of a lender, financial institution, client, or any other person
in conjunction with a consumer credit transaction that is secured by a consumer's
primary dwelling:
a. Administer an appraiser panel.
b. Recruit, retain, or select appraisers.
c. Qualify, verify licensing or certification, and negotiate fees and service level
expectations with persons who are part of an appraiser panel.
d. Contract with appraisers to perform appraisal assignments.
e. Receive an order for an appraisal from one person, and deliver the order for the
appraisal to an appraiser that is part of an appraiser panel for completion.
f. Manage the process of having an appraisal performed, including providing
administrative duties, such as receiving appraisal orders and reports, submitting
completed appraisal reports to creditors and underwriters, collecting fees from
creditors and underwriters for services provided, and reimbursing appraisers for
services performed.
g. Track and determine the status of appraisal orders.
h. Conduct an appraisal review or other quality control of a completed appraisal
prior to the delivery of the appraisal to the person that ordered the appraisal.
i. Provide a completed appraisal performed by an appraiser to one or more clients.
4. "Appraisal review" means the act or process of developing and communicating an
opinion about the quality of another appraiser's work that was performed as part of an
appraisal assignment related to the appraiser's data collection, analysis, opinions,
conclusions, estimate of value, or compliance with the uniform standards of
professional appraisal practice. This term does not include:
a. A general examination for grammatical, typographical, or other similar errors.
b. A general examination for completeness, including regulatory client requirements,
or both, as specified in the agreement process that does not communicate an
opinion.
5. "Appraiser panel" means a network of licensed or certified appraisers who have:
a. Responded to an invitation, request, or solicitation from an appraisal
management company, in any form, to perform appraisals for persons that have
ordered appraisals through the appraisal management company, or to perform
appraisals for the appraisal management company directly, on a periodic basis,
as requested and assigned by the appraisal management company.
b. Been selected and approved by an appraisal management company to perform
appraisals for any client of the appraisal management company that has ordered
an appraisal through the appraisal management company, or to perform

appraisals for the appraisal management company directly, on a periodic basis,
as assigned by the appraisal management company.
6. "Board" means the North Dakota real estate appraiser qualifications and ethics board.
7. "Controlling person" means:
a. An officer, director, or owner of greater than a ten percent interest of a
corporation, partnership, or other business entity seeking to act as an appraisal
management company in this state.
b. An individual employed, appointed, or authorized by an appraisal management
company that has the authority to enter a contractual relationship with other
persons for performance of services requiring registration as an appraisal
management company and has the authority to enter agreements with appraisers
for the performance of appraisals.
c. An individual who possesses, directly or indirectly, the power to direct or cause
the direction of the management or policies of an appraisal management
company.
8. "Federal financial institutions regulatory agencies" includes the board of governors of
the federal reserve system, the federal deposit insurance corporation, the office of the
comptroller of the currency, and the national credit union administration.
9. "Federally regulated appraisal management company" means an appraisal
management company that is owned and controlled by an insured depository
institution, as defined in 12 U.S.C. 1813 and regulated by the office of the comptroller
of the currency, the board of governors of the federal reserve system, or the federal
deposit insurance corporation.
10. "Federally related transaction" means any real estate-related financial transaction
which a federal financial institutions regulatory agency or the resolution trust
corporation engages in, contracts for, or regulates, and requires the services of an
appraiser.
11. "Real estate-related financial transaction" means any transaction involving:
a. The sale, lease, purchase, investment in, or exchange of real property, including
interests in property or the financing thereof.
b. The refinancing of real property or interests in real property.
c. The use of real property or interests in property as security for a loan or
investment, including mortgage-backed securities.