Code of Massachusetts Regulations
264 CMR - BOARD OF REGISTRATION OF REAL ESTATE APPRAISERS
Title 264 CMR 13.00 - Appraisal Management Companies
Section 13.04 - Operational Requirements for Appraisal Management Companies

Universal Citation: 264 MA Code of Regs 264.13

Current through Register 1531, September 27, 2024

Appraisal management companies shall take action to implement in full the certifications made under 264 CMR 13.02 to obtain registration, and in addition shall do all of the following:

(1) Establish and comply with processes and controls reasonably designed to ensure that the appraisal management company, in engaging an appraiser, selects an appraiser who is independent of the transaction and who has the requisite license, education, expertise and experience necessary to competently complete the appraisal assignment for the particular market and property type;

(2) Establish and comply with processes and controls reasonably designed to ensure that the appraisal management company conducts its appraisal management services in accordance with the requirements of Section 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;

(3) Create all of the following records for each request for appraisal services and preserve such records in accordance with the recordkeeping rule of the Uniform Standards of Professional Appraisal Practice:

(a) Date of receipt of the request;

(b) Name of the person from whom the request was received;

(c) Name of the client for whom the request was made, if different from the name of the person from whom the request was received;

(d) The appraiser or appraisers assigned to perform the requested service;

(e) Date of delivery of the appraisal product to the client;

(f) Client contract;

(g) Engagement letter; and

(h) A complete digital copy of every version of each appraisal report completed by the appraiser;

(4) Notify the Board of any change in the designated controlling person or employee in charge not later than 21 days after making the change, and shall submit such change on a form prescribed by the Board and with the fee prescribed by M.G.L. c. 112, § 283 and determined by the secretary of administration and finance under M.G.L. c. 7, § 3B;

(5) Notify the Board of any change in the persons who directly or indirectly own more than ten per cent of an appraisal management company not later than 21 days after making the change, and shall submit such change on a form prescribed by the Board;

(6) Provide the board with information sufficient to verify that the appraisers on its appraiser panel hold valid certifications or licenses as applicable; and

(7) At least once every two registration renewal periods, review a representative sample of appraisals performed by each independent appraiser who is performing real estate appraisal services for the appraisal management company for real property located in Massachusetts, to validate that the real estate appraisal services are being conducted in accordance with Uniform Standards of Professional Appraisal Practice ("USPAP") and the standards of the Board.

(8) An appraisal management company shall cooperate with all inquiries by the board and its agents who are investigating to assess compliance of the AMC, its agents and members of its appraiser panel with applicable appraisal-related laws, regulations and orders, and shall make its books and records of operations in the Commonwealth available to the Board upon request.

(9) An appraisal management company's controlling person or employee in charge who has a good faith belief that an appraiser licensed in Massachusetts has violated applicable law or the USPAP or engaged in unethical conduct shall file a complaint with the Board not more than 45 days after identifying the violation or unethical conduct.

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