§ 33-39-218 — Appraiser independence; prohibitions

(a) It shall be unlawful for any employee, director,
officer or agent of an appraisal management company registered
in this state to influence or attempt to influence the
development, reporting or review of an appraisal through
coercion, extortion, collusion, compensation, instruction,
inducement, intimidation, bribery or in any other manner,
including but not limited to:
(i) Withholding or threatening to withhold timely
payment for an appraisal, except in cases of breach of contract
or substandard performance of services;
(ii) Withholding or threatening to withhold future
business for an independent appraiser or demoting or terminating
or threatening to demote or terminate an independent appraiser;
(iii) Expressly or impliedly promising future
business, promotions or increased compensation for an
independent appraiser;
(iv) Conditioning the request for an appraisal
service or the payment of an appraisal fee or salary or bonus on
the opinion, conclusion or valuation to be reached, or on a
preliminary estimate or opinion requested from an independent
appraiser;
(v) Requesting that an independent appraiser provide
an estimated, predetermined or desired valuation in an appraisal
report, or provide estimated values or comparable sales at any
time prior to the independent appraiser's completion of an
appraisal service;
(vi) Providing to an independent appraiser an
anticipated, estimated, encouraged or desired value for a
subject property or a proposed or target amount to be loaned to
the borrower, except that a copy of the sales contract for
purchase transactions may be provided;
(vii) Providing to an independent appraiser, or any
entity or person related to the appraiser, stock or other
financial or nonfinancial benefits.
(b) It shall be unlawful for an appraisal management
company to:
(i) Allow the removal of an independent appraiser
from an appraiser panel, without prior written notice to the
appraiser;
(ii) Obtain, use or pay for a second or subsequent
appraisal or order an automated valuation model in connection
with a mortgage financing transaction unless:
(A) The action is required by law;
(B) There is a reasonable basis to believe that
the initial appraisal was flawed or tainted and the basis is
clearly and appropriately noted in the loan file; or
(C) The appraisal or automated valuation model
is done pursuant to a bona fide prefunding or post-funding
appraisal review or quality control process.
(iii) Require an appraiser to prepare an appraisal if
the appraiser, in the judgment of the appraiser, does not have
the necessary expertise for the specific geographic area and the
appraiser has notified the company of this belief and declined
the assignment;
(iv) Require an appraiser to prepare an appraisal
under a schedule that the appraiser, in the judgment of the
appraiser, believes does not afford the appraiser the ability to
meet all the relevant legal and professional obligations if the
appraiser has notified the company of this belief and declined
the assignment;
(v) Use, obtain or request the digital signature or
seal of the appraiser;
(vi) Alter, modify or otherwise change any aspect of
an appraisal report without the agreement of the appraiser that
the modification is appropriate unless required by applicable
law;
(vii) Engage in any act or practice that does not
comply with the Uniform Standards of Professional Appraisal
Practice or any assignment conditions and certifications
required by the client;
(viii) Engage in any other act or practice that
impairs or attempts to impair the independence, objectivity or
impartiality of an appraiser;
(ix) Require an appraiser to enter into an agreement
to not serve on the panel of another appraisal management
company;
(x) Require an appraiser to indemnify or hold
harmless the appraisal management company against liability
other than those liabilities, damages, losses or claims arising
out of the services performed by the appraiser, including
performance or nonperformance of the appraiser's duties and
obligations, whether as a result of negligence or willful
conduct.
(c) Nothing in subsection (a) or (b) of this section shall
be construed as prohibiting the appraisal management company
from requesting that an independent appraiser:
(i) Provide additional information about the basis
for a valuation;
(ii) Correct objective factual errors in an appraisal
report; or
(iii) Consider additional appropriate property
information.