Rhode Island General Laws 5-20.9-15. Adjudication of disputes between an appraisal management company and an appraiser
(a) An appraisal management company may not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real estate appraisal services to an independent appraiser without:
(1) Notifying the appraiser in writing of the reasons why the appraiser is being removed from the appraiser panel of the appraisal management company, including the alleged statutory or USPAP violation, if any; and
(2) Providing an opportunity for the appraiser to respond to the notification of the appraisal management company.
Terms Used In Rhode Island General Laws 5-20.9-15
- 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
- Appraiser panel: means a group of independent fee appraisers that have been selected by an appraisal management company to perform residential real estate appraisal services for the appraisal management company. See Rhode Island General Laws 5-20.9-2
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Department: means the department of business regulation. See Rhode Island General Laws 5-20.9-2
- in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
- real estate: may be construed to include lands, tenements, and hereditaments and rights thereto and interests therein. See Rhode Island General Laws 43-3-10
(b) An appraiser that is removed from the appraiser panel of an appraisal management company for alleged illegal conduct, violation of the USPAP, or violation of state licensing statutes, may file a complaint with the department for a review of the decision of the appraisal management company. The review of the department in any such case is limited to determining whether the appraisal management company has complied with subsection (a) of this section and whether the appraiser has committed a violation of state law, state licensing standards, or a violation of the USPAP.
(c) If, after opportunity for hearing and review, the department determines that an appraisal management company acted improperly in removing an appraiser from the appraiser panel, or that an appraiser did not commit a violation of law, a violation of the USPAP, or a violation of state licensing standards, the department may order that an appraiser be restored to the appraiser panel of the appraisal management company that was the subject of the complaint, or impose any other administrative penalties set forth in regulations.
(d) Hearings will be conducted in accordance with § 5-20.9-18, chapter 35 of Title 42, and the department’s rules of procedure for administrative hearings.
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.