Montana Code 37-54-519. Unprofessional conduct
37-54-519. Unprofessional conduct. An appraisal management company engages in unprofessional conduct if it:
Terms Used In Montana Code 37-54-519
- Appraisal: A determination of property value.
- Appraisal: means the practice of developing an opinion of the value of real property in conformance with the uniform standards of professional appraisal practice as developed by the appraisal foundation. See Montana Code 37-54-102
- Appraisal management company: means , in connection with valuation of properties collateralizing mortgage loans or mortgages incorporated into a securitization, an external third party, authorized either 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 oversees a network or panel of more than 15 certified or licensed appraisers in this state or 25 or more nationally within a given year. See Montana Code 37-54-102
- Appraiser: means an individual who holds a license or certification to complete an appraisal assignment in the state where the real property that is the subject of the appraisal assignment is located. See Montana Code 37-54-102
- Person: means an individual, firm, partnership, association, corporation, or other business entity. See Montana Code 37-54-102
- Quality control examination: means an examination of an appraisal report for completeness, including grammatical, mathematical, and typographical errors. See Montana Code 37-54-102
(1)requires an appraiser to modify any aspect of an appraisal report other than those items identified by a quality control examination, including items that are found to be incomplete within the defined scope of work in the original assignment;
(2)requires an appraiser to prepare an appraisal report if the appraiser, in the appraiser’s own professional judgment, believes the appraiser does not have the necessary expertise for the specific geographic area and the appraiser has notified the appraisal management company of the issue;
(3)requires an appraiser to prepare an appraisal report under a timeframe that the appraiser, in the appraiser’s professional judgment, believes does not allow the appraiser to meet all relevant legal and professional obligations and the appraiser has notified the appraisal management company of the issue;
(4)prohibits or inhibits legal and allowable communication between the appraiser and:
(a)the lender;
(b)a real estate licensee; or
(c)any other person from whom the appraiser, in the appraiser’s professional judgment, believes information would be relevant;
(5)requires the appraiser to do anything that does not comply with:
(a)the uniform standards of professional appraisal practice; or
(b)assignment conditions and certifications required by the client;
(6)makes any portion of the appraiser’s fee or the appraisal management company’s fee contingent on a favorable outcome, including but not limited to:
(a)a loan closing; or
(b)a specific dollar amount being achieved by the appraiser in the appraisal report.