Current through Register Vol. 56, No. 18, September 16, 2024
(a) Each State-registered appraisal management
company shall certify to the Board, annually, on a form provided by the Board, that it:
1. Requires appraisers completing appraisals, including appraisal reviews,
at its request to comply with the Uniform Standards of Professional Appraisal Practice, including the
requirements for geographic and product competence;
2. Has a
system in place to verify that only licensed or certified appraisers are used for appraisals covered in this
subchapter, including, but not limited to, those performed for Federally related transactions, appraisals
pursuant to the provisions of the N.J.S.A. 45:14F-1 et seq., and this chapter;
3. Has a system in place to verify that an individual on the appraiser
panel has not had a license or certification as an appraiser refused, denied, cancelled, revoked, or
surrendered in lieu of a pending revocation;
4. Has a system in
place to require that appraisals are conducted independently and free from inappropriate influence and
coercion as required by the appraisal independence standards established under section 1639e of the Federal
Truth in Lending Act, Pub. L.
90-321 (15 U.S. C. §
1639e) , including the requirements for payment of customary and reasonable
compensation to fee appraisers when the appraisal management company is providing services for a consumer
credit transaction secured by the principal dwelling of a consumer; and
5. Is in compliance with State laws and rules.
(b) Each State-registered appraisal management company shall certify to the
Board, annually, by submission of a statement signed by the appraisal management company, that it maintains a
detailed record of each service request that it receives and the name of the appraiser that performs the
appraisal for the appraisal management company.
1. Detailed records
include, but are not limited to, a copy of:
i. The assignment order or
service request identifying the end-user client;
ii. Each
assignment result, including revised reports, addenda, certifications, and any webform
communications;
iii. Any and all correspondence between the
appraisers, the registrant, and any other entity or party related to the assignment;
iv. Any copy of any quality control review related to the
assignment;
v. Any review not consistent with a quality control
review;
vi. All fee schedules maintained and used by the
registrant for the purpose of compliance with the provisions of the Truth in Lending Act,
Pub. L. 90-321
(15 U.S.C. §
1639e)
relating to customary and reasonable fees. The fee schedules shall be definitive in nature; and
vii. Any roster of New Jersey active and approved fee panel appraiser
vendors, including the name of the appraiser, each appraiser's State credential number, the date the
appraiser was placed on the panel, and the date and reason an appraiser was removed from the panel.
2. Records shall be retained for a period of at least five years
after an appraisal is completed or two years after final disposition of a judicial proceeding related to the
assignment, whichever period expires later.
(c) The
annual certifications required under this section shall be submitted to the Board by December 31 of each
calendar year.
(d) Prior to assigning appraisal orders, an
appraisal management company shall have a system in place to verify that a person being added to the
appraiser panel holds the appropriate State-issued appraiser credential in good standing.
(e) Each registered appraisal management company shall disclose its
Board-issued registration number on all engagement documents presented to the appraiser.
