§ 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
for the company's agent for service of process in this state; and
(4) Name, address, and contact information for any individual or any corporation, partnership,
or other business entity who or that owns 10% or more of the appraisal management
company.
(b) Contact information shall include the entity's business and mailing address, telephone
number, facsimile number, and electronic mail (email) address.
(c) An appraisal management company shall certify that the following is true upon its
initial registration and upon each renewal of its registration:
(1) The registered entity has a system and process in place to verify that a person being
added to the appraiser panel of the appraisal management company holds a certification
or license in good standing in any jurisdiction to perform appraisals;
(2) The registered entity has a system in place to periodically perform a quality assurance
review of the work of independent fee appraisers who or that are performing real estate
appraisal services on its behalf to ensure that appraisal services are being conducted
in accordance with USPAP;
(3) The registered entity maintains a detailed record of each service request that it
receives for five (5) years;
(4) The registered entity maintains a system to assure that the appraiser selected for
an appraisal assignment is independent of the transaction and has the requisite education,
expertise, and experience necessary to competently complete the appraisal assignment
for the particular market and property type; and
(5) The registered entity will have a system in place to ensure that real estate appraisal
services are provided independently and free from inappropriate influence and coercion
under the appraisal independence standards established under § 129E of the Truth in
Lending Act, 15 U.S.C. § 1639e, including the requirement that independent fee appraisers be compensated at a customary
and reasonable rate when the appraisal management company is providing services for
a consumer credit transaction secured by the principal dwelling of a consumer.
(d) Ownership requirements. An appraisal management company shall not be registered in this state if:
(1) Any person who owns, in whole or in part, directly or indirectly, more than ten percent
(10%) of the appraisal management company fails to submit to a background investigation,
and/or is determined by the director not to have good moral character as determined
by an analysis of the factors in § 28-5.1-14.
(2) The appraisal management company is owned in whole or in part, directly or indirectly,
by any person who has had a license or certificate to act as an appraiser refused,
denied, canceled, surrendered in lieu of revocation, or revoked in this state or in
any other state for substantive cause, as determined by the appropriate certifying
and licensing agency. However, an appraisal management company is not barred from
registration if the license or certificate of the appraiser with an ownership interest
was not revoked for a substantive cause and has been reinstated by the state or states
in which the appraiser was licensed or certified.