Ohio Code 4768.06 – Applicants for appraisal management company license
(A) To obtain an appraisal management company license, each applicant shall submit all of the following to the superintendent of real estate and professional licensing:
Terms Used In Ohio Code 4768.06
- Appraisal: A determination of property value.
- appraisal: means the act or process of developing an opinion of value of real property in conformity with the uniform standards of professional appraisal practice. See Ohio Code 4768.01
- Appraisal management company: means any person authorized either by a creditor of a consumer credit transaction secured by a consumer's principal dwelling, or by an underwriter o f or other principal in the secondary mortgage markets, that performs appraisal management services in connection with valuing properties collateralizing mortgage loans or valuing properties collateralizing mortgages incorporated in a securitization. See Ohio Code 4768.01
- Appraisal management services: means to perform any of the following functions on behalf of a lender, financial institution, client, or any other person in conjunction with a consumer credit transaction that is secured by a consumer's primary dwelling:
(1) Administer an appraiser panel;
(2) Recruit, retain, or select appraisers;
(3) Qualify, verify licensure or certification, and negotiate fees and service level expectations with persons who are 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 who is part of an appraiser panel for completion;
(6) Manage the process of having an appraisal performed, including providing administrative duties, such as receiving appraisal orders and reports, submitting completed appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for services provided, and 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;
(9) Provide a completed appraisal performed by an appraiser to one or more clients. See Ohio Code 4768.01
- Appraisal review: means the act or process of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review. See Ohio Code 4768.01
- Appraiser: means a person licensed or certified under Chapter 4763 of the Revised Code. See Ohio Code 4768.01
- Appraiser panel: means a network of appraisers who are independent contractors to the appraisal management company and who have been approved by the appraisal management company, after responding to an invitation or request from the appraisal management company, to perform appraisals for any client of the appraisal management company or for the appraisal management c ompany directly, on a periodic basis, as assigned by the appraisal management company. See Ohio Code 4768.01
- Client: means any person that contracts with, or otherwise enters into an agreement with, an appraisal management company for residential or commercial real estate appraisal services. See Ohio Code 4768.01
- Controlling person: means any of the following:
(1) An owner, officer, or director of a business entity seeking to offer appraisal management services in this state;
(2) An individual employed, appointed, or authorized by an appraisal management company, who has the authority to enter into contractual relationships with clients for the performance of appraisal management services and the authority to enter into agreements with appraisers for the performance of residential or commercial real estate appraisal services;
(3) An individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company. See Ohio Code 4768.01
- Conviction: A judgement of guilt against a criminal defendant.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Owner: means a person who owns or controls ten per cent or more of an appraisal management company. See Ohio Code 4768.01
- Person: means an individual, corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity. See Ohio Code 4768.01
- Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
- Property: means real and personal property. See Ohio Code 1.59
- real estate appraisal services: means a real estate appraisal or appraisal review. See Ohio Code 4768.01
- Rule: includes regulation. See Ohio Code 1.59
- Service of process: The service of writs or summonses to the appropriate party.
- state: means the state of Ohio. See Ohio Code 1.59
(1) A completed application on a form the superintendent provides;
(2) The name of a controlling person who will be the main contact between the appraisal management company and the division of real estate and professional licensing and the real estate appraiser board;
(3) Payment of the fee established for initial licensure under division (A)(2) of section 4768.03 of the Revised Code;
(4) A list of all owners and controlling persons of the appraisal management company;
(5) A statement that each owner and controlling person of the appraisal management company satisfies the requirements set forth in divisions (B)(1) to (4) of this section;
(6) A completed consent to service of process in this state as prescribed by rule of the real estate appraiser board;
(7) A statement that the applicant understands the grounds for any disciplinary action that may be initiated under this chapter;
(8) The name of each state in which the appraisal management company holds an appraisal management company license, certificate, or registration and affirmation that the applicant is in good standing in each state where the applicant holds a license, certificate, or registration;
(9) A statement that the applicant acknowledges that a system or process must be in place to verify that any appraiser added to the appraisal management company’s appraiser panel for the purpose of performing real estate appraisal services in this state holds a license or certificate under Chapter 4763 of the Revised Code and is in good standing with this state;
(10) A statement that the applicant acknowledges that a system or process must be in place to review the work of appraisers who are performing real estate appraisal services for compliance with the uniform standards of professional appraisal practice;
(11) A statement that the applicant acknowledges that a system or process must be in place to verify that any employee of, or independent contractor to, the appraisal management company that performs an appraisal review shall be an appraiser licensed or certified pursuant to Chapter 4763 of the Revised Code, provided the property that is the subject of the appraisal is located in this state;
(12) A statement that the applicant acknowledges that the controlling person who will be the main contact between the appraisal management company and the division of real estate and professional licensing and the real estate appraiser board described in division (A)(2) of this section has successfully completed fifteen hours of uniform standards of professional appraisal practice and thereafter must complete seven hours of instruction in uniform standards of professional appraisal practice at least once every two years;
(13) A statement that the applicant acknowledges that a system or process must be in place to disclose to its client the actual fees paid to an appraiser for appraisal services separately from any other fees or charges for appraisal management services;
(14) A statement that the applicant acknowledges that a system or process must be in place to disclose the license, certificate, or registration number of the appraisal management company on each engagement letter used in assigning an appraisal request for real estate appraisal assignments within the state;
(15) A statement that the applicant acknowledges that it is required to report suspected violations of Chapter 4763 of the Revised Code by a person licensed, registered, or certified under that chapter;
(16) A statement that the applicant acknowledges that the real estate appraiser board or the superintendent may require the applicant to submit to an audit, conducted by staff of the division of real estate and professional licensing, of the applicant’s operations or books;
(17) A statement that the applicant acknowledges that it is required to comply with section 129e of the “Truth in Lending Act,” 82 Stat. 146, 15 U.S.C. § 1639e.
(B) Each owner and controlling person of an appraisal management company shall satisfy all of the following criteria:
(1) Be an individual who is at least eighteen years of age;
(2) Have graduated the twelfth grade or received a certificate of high school equivalence as defined in section 4109.06 of the Revised Code;
(3) Be honest, truthful, and of good moral character;
(4) Have not had a license, certificate, or registration to act as an appraiser that has been refused, denied, canceled, surrendered, or revoked in this state or in any other state for a substantive reason. A designated controlling person may have had a license or certificate to act as an appraiser refused, denied, canceled, revoked, or surrendered in lieu of revocation in a state for a nonsubstantive reason if the license or certificate was subsequently granted or reinstated;
(5) Submit to a criminal records check in accordance with this section and any rule that the superintendent adopts under division (A)(1) of section 4768.03 of the Revised Code.
(C) Upon receiving an application under this section, the superintendent shall request the superintendent of the bureau of criminal identification and investigation, or a vendor approved by the bureau, to conduct a criminal records check based on the fingerprint impressions of each owner and controlling person of the applicant in accordance with division (A)(15) of section 109.572 of the Revised Code. Notwithstanding division (L) of section 121.08 of the Revised Code, the superintendent of real estate and professional licensing shall request that the superintendent of the bureau of criminal identification and investigation obtain criminal record information from the federal bureau of investigation be obtained as part of the criminal records check. Any fee required under division (C)(3) of section 109.572 of the Revised Code shall be paid by the applicant.
(D)(1) Subject to section 4768.08 of the Revised Code and except as provided in division (D)(2) of this section, the superintendent shall issue a license to the applicant if the applicant and each owner and controlling person of the applicant satisfies the requirements of this section.
(2) The superintendent shall not issue a license to an applicant if any owner or controlling person of the applicant has been convicted of or pleaded guilty or no contest to a felony. However, if an owner or controlling person of the applicant has pleaded guilty or no contest to or been convicted of a felony, the superintendent shall not consider the conviction or plea if the person has proven to the superintendent, by a preponderance of the evidence, that the person’s activities and employment record since the conviction or plea show that the person is honest, truthful, and of good moral character, and there is no basis in fact for believing that the person will commit a felony again.
(E) A license issued under this section shall be valid for one year after the date of issue.
Last updated October 4, 2023 at 3:59 PM