Rhode Island General Laws 5-20.9-11. Controlling person and appraisal review employees
(a) Each appraisal management company applying to the department for a registration in this state shall designate one controlling person who will be the principal contact for all communication between the department and the appraisal management company.
Terms Used In Rhode Island General Laws 5-20.9-11
- Appraisal: A determination of property value.
- Appraisal: means an analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, identified real estate. See Rhode Island General Laws 5-20.9-2
- Appraisal management company: means :
(i) In connection with valuing properties collateralizing mortgage loans or mortgages incorporated into a securitization, any 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 fifteen (15) certified or licensed appraisers in Rhode Island or twenty-five (25) or more nationally, excluding those appraisers who do not provide appraisal services for covered transactions, within a given year to:
(A) Recruit, select, and retain appraisers;
(B) Contract with licensed and certified appraisers to perform appraisal assignments;
(C) Manage the process of having an appraisal performed, including providing administrative duties such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for services provided, and reimbursing appraisers for services performed; or
(D) Review and verify the work of appraisers. See Rhode Island General Laws 5-20.9-2
- 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 assignment related to the appraiser's data collection, analysis, opinions, conclusions, opinion of value, or compliance with the Uniform Standards of Professional Appraisal Practice; provided however, that "appraisal review" shall not include:
(i) A general examination for grammatical, typographical, or similar errors; or
(ii) A general examination for completeness, including regulatory or client requirements as specified in an agreement that does not communicate an opinion of value. See Rhode Island General Laws 5-20.9-2
- Controlling person: means :
(i) An owner, officer, or director of a corporation, partnership, or other business entity seeking to offer appraisal management services in this state; or
(ii) An individual employed, appointed, or authorized by an appraisal management company who has the authority to enter into a contractual relationship with clients for the performance of appraisal management services and has the authority to enter into agreements with independent appraisers for the performance of residential real estate appraisal services; or
(iii) 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 Rhode Island General Laws 5-20.9-2
- Department: means the department of business regulation. See Rhode Island General Laws 5-20.9-2
(b) Any employee of the appraisal management company who has the responsibility to conduct an appraisal review, as defined in § 5-20.9-2, of the work of independent fee appraisers must be a state-licensed or certified appraiser.
History of Section.
P.L. 2017, ch. 14, § 1; P.L. 2017, ch. 26, § 1; P.L. 2023, ch. 163, § 2, effective June 20, 2023; P.L. 2023, ch. 164, § 2, effective June 20, 2023.