§ 16-5B-01. Definitions

   (a) In general. -- In this subtitle the following words have the meanings indicated.

(b) Appraisal management company. -- "Appraisal management company" means a third party authorized 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 directly or indirectly provides appraisal management services in connection with valuing properties collateralizing mortgage loans or mortgages incorporated in a securitization.

(c) Appraisal review. --

   (1) "Appraisal review" means the act of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraiser assignment.

   (2) "Appraisal review" does not include an examination of an appraisal for grammatical, typographical, or other similar errors that do not make a substantive valuation change.

(d) Appraiser. -- "Appraiser" means a licensed real estate appraiser or a certified real estate appraiser.

(e) Appraiser panel. -- "Appraiser panel" means a network of licensed or certified appraisers who are independent contractors to the appraisal management company.

(f) Competent appraiser. -- "Competent appraiser" means an appraiser that satisfies each provision of the competency rule of the Uniform Standards of Professional Practice for a specific appraisal assignment that the appraiser has received, or may receive, from an appraisal management company.

(g) Controlling person. -- "Controlling person" means:

   (1) an owner, officer, or director of an appraisal management company;

   (2) an individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into:

      (i) a contractual relationship with other persons for the performance of appraisal management services; and

      (ii) agreements with appraisers for the performance of appraisals; or

   (3) an individual who possesses the power to direct or cause the direction of the management or policies of an appraisal management company.

(h) Provide appraisal management services. -- "Provide appraisal management services" means to, directly or indirectly, on behalf of a lender, financial institution, client, or other person in conjunction with a consumer credit transaction that is secured by a consumer's primary dwelling:

   (1) administer an appraisal panel;

   (2) recruit, retain, or select appraisers;

   (3) verify licensing or certification, negotiate fees and service level expectations, and review the qualifications of persons who are part of, or who wish to become part of, an appraiser panel;

   (4) contract with appraisers to perform appraisal assignments;

   (5) 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;

   (6) manage the process of having an appraisal performed, including the following administrative duties:

      (i) receiving appraisal orders and reports;

      (ii) submitting completed appraisal reports to creditors and underwriters;

      (iii) collecting fees from creditors and underwriters for services provided; and

      (iv) reimbursing appraisers for services performed;

   (7) track and determine the status of orders for appraisals;

   (8) conduct quality control of a completed appraisal prior to the delivery of the appraisal to the person that ordered the appraisal; or

   (9) provide a completed appraisal performed by an appraiser to a client.

HISTORY: 2011, ch. 65, § 5; chs. 269, 270.