§ 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 in, or aspects of, identified real estate.
An appraisal may be classified by subject matter into either a valuation or an analysis.
(i) A "valuation� is an estimate of the value of real estate or real property.
(ii) An "analysis� is a study of real estate or real property other than estimating value.
(2) "Appraisal management company� means:
(i) In connection with valuing properties collateralizing mortgage loans or mortgages
incorporated into a securitization, any external third party authorized either by
a creditor of a consumer credit transaction secured by a consumer's principal dwelling,
or by an underwriter of or other principal in the secondary mortgage markets, that
oversees a network or panel of more than fifteen (15) certified or licensed appraisers
in Rhode Island or twenty-five (25) or more nationally, excluding those appraisers
who do not provide appraisal services for covered transactions, within a given year
to:
(A) Recruit, select, and retain appraisers;
(B) Contract with licensed and certified appraisers to perform appraisal assignments;
(C) Manage the process of having an appraisal performed, including providing administrative
duties such as receiving appraisal orders and appraisal reports, submitting completed
appraisal reports to creditors and underwriters, collecting fees from creditors and
underwriters for services provided, and reimbursing appraisers for services performed;
or
(D) Review and verify the work of appraisers.
(ii) An appraisal management company does not include any entity that employs real estate
appraisers as employees for the performance of real estate appraisal services in a
manner consistent with federal regulations promulgated in accordance with § 1473 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act.
(3) "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,
opinion of value, or compliance with the Uniform Standards of Professional Appraisal
Practice; provided however, that "appraisal review� shall not include:
(i) A general examination for grammatical, typographical, or similar errors; or
(ii) A general examination for completeness, including regulatory or client requirements
as specified in an agreement that does not communicate an opinion of value.
(4) "Appraiser panel� means a group of independent fee appraisers that have been selected
by an appraisal management company to perform residential real estate appraisal services
for the appraisal management company.
(5) "Client� means any person or entity who or that contracts with, or otherwise enters
into an agreement with, an appraisal management company for the management of residential
real estate appraisal services.
(6) "Controlling person� means:
(i) An owner, officer, or director of a corporation, partnership, or other business entity
seeking to offer appraisal management services in this state; or
(ii) An individual employed, appointed, or authorized by an appraisal management company
who has the authority to enter into a contractual relationship with clients for the
performance of appraisal management services and has the authority to enter into agreements
with independent appraisers for the performance of residential real estate appraisal
services; or
(iii) 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.
(7) "Covered transaction� means any consumer credit transaction secured by the consumer's
principal dwelling.
(8) "Department� means the department of business regulation.
(9) "Director� means the director of the department of business regulation.
(10) "Independent fee appraiser� means:
(i) A natural person who is a state-licensed or state-certified appraiser and receives
a fee for performing an appraisal, but who is not an employee of the person engaging
the appraiser; or
(ii) An organization that, in the ordinary course of business, employs state-licensed or
state-certified appraisers to perform appraisals, receives a fee for performing the
appraisals, and is not subject to § 1124 of the federal Financial Institutions Reform,
Recovery and Enforcement Act of 1989 ("FIRREAâ€�), 12 U.S.C. § 3353.
(11) "Real estate appraisal services� means the practice of developing an appraisal by
a licensed or certified appraiser in conformance with the USPAP.
(12) "USPAP� mean the Uniform Standards for Professional Appraisal Practice published by
the Appraisal Foundation.