Current through Register 1531, September 27, 2024
(1) All appraisal
management companies shall register with and be subject to supervision by the
Board of Registration of Real Estate Appraisers in compliance with all rules,
regulations and orders duly issued and with all registrations, licenses and
approvals duly granted by the Board.
Each AMC that operates as a subsidiary of a federally regulated
financial institution shall provide identifying information, information
related to ownership, panel size and the number of appraisers used to calculate
the AMC registry fee, submitted on a form prescribed by the board
(2) In addition, every appraisal
management company shall:
(a) Make the
certifications required by
264
CMR 13.02(2)(b) through (f)
in original applications for registration, renewal forms and upon request of
the Board;
(b) Certify that only
persons who hold Massachusetts appraiser licenses or certifications in good
standing pursuant to M.G.L. c. 112, §§ 173 through 195 are added to
its appraiser panel for appraisal services on real property located in
Massachusetts after verifying the status of the appraiser by contacting the
Board or utilizing the national AMC registry;
(c) Certify that the AMC requires appraisers
completing appraisal services at its request to comply with the Uniform
Standards of Professional Appraisal Practice;
(d) Certify that the company periodically
reviews the work of all appraisers performing appraisal services for the
appraisal management company to confirm that those services are conducted in
compliance with the Uniform Standards of Professional Appraisal
Practice;
(e) Certify that the
company maintains a detailed record of each request for appraisal services that
it receives; the name of the appraiser who performs those appraisal services
for the appraisal management company; and a complete digital copy of every
version of each appraisal report competed by the appraiser; and all information
required by
264
CMR 13.04(3);
(f) Certify that appraisals are conducted
independently and are free from inappropriate influence or coercion, and that
appraisers are not encouraged in any manner to misstate or misrepresent the
value of a subject property and that the company complies with Sections 129E(a)
through (i) of the Truth in Lending Act,
15 U.S.C.
1639e(a) through (i), and
regulations thereunder 12
CFR 226 and
1026; and
(g) Designate one controlling person who
shall be the primary point of contact for all communication between the Board
and the appraisal management company.
1. The
application shall also designate an employee in charge, who may be the same
person as the controlling person.
2. The application shall include a signed
acceptance of the responsibility of controlling person and employee in
charge.
(3)
Each person who directly or indirectly owns 10% or more of an appraisal
management company or is an officer, controlling person or employee in charge
of an appraisal management company shall be of good moral character as
determined by the Board. Each such person may be required to provide a
certified copy of the criminal history record check conducted in the
applicant's home state, which shall have been performed within 12 months of the
date the completed application for registration or amendment is received by the
Board.
(4) The Board may conduct
criminal history background checks using information reasonably identified by
the board to determine the suitability of all persons who directly or
indirectly own more than 10% of an appraisal management company, and all
officers, controlling persons, and employees in charge of appraisal management
companies.
a. The Board may conduct
fingerprint-based checks of state and national criminal history databases only
as authorized by U.S. Public Law 92-544 and M.G.L. c.
112, §§ 279(c) and 289, to determine the suitability of persons who
directly or indirectly own more than 10% of an appraisal management company,
and officers, controlling persons, and employees in charge of appraisal
management companies.
(5) An AMC shall not be registered by the
Board if such AMC, in whole or in part, directly or indirectly, is owned by any
person who has had a license or certificate to act as an appraiser or to engage
in any activity related to the transfer of real property refused, denied,
cancelled, surrendered in lieu of revocation, or revoked in
any state for substantive cause as determined by the Board.
(6) Each applicant shall submit the name and
address of the applicant's registered agent located in the
Commonwealth.
(7) An individual
operating an appraisal management company as a sole proprietorship shall be a
state-certified general real estate appraiser or state-certified residential
real estate appraiser and shall be considered the controlling person of the
AMC.
(8)
Exemptions. The provisions of
264 CMR
13.00 do not apply to the following entities:
a. An AMC that operates as a subsidiary of a
federally regulated financial institution, except as provided in
264
CMR 13.02(1)(a) and
13.05(3)-(4);
b. A person that performs appraisals,
appraisal reviews or appraisal consulting and that, at all times during a 12
month calendar year, engages as independent contractors fewer than 16
appraisers licensed or certified in Massachusetts and fewer than 25 appraisers
licensed or certified in Massachusetts and other states for the performance of
appraisals.
