Wisconsin Statutes 458.41 – Appraiser independence
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Terms Used In Wisconsin Statutes 458.41
- Appraisal: A determination of property value.
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
- in writing: includes any representation of words, letters, symbols or figures. See Wisconsin Statutes 990.01
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Person: includes all partnerships, associations and bodies politic or corporate. See Wisconsin Statutes 990.01
- Property: includes real and personal property. See Wisconsin Statutes 990.01
(1) A licensed appraisal management company shall ensure that appraisals that are conducted for the company are conducted independently and free from inappropriate influence or coercion consistent with this section and 15 U.S. Code § 1639e and rules promulgated under 15 U.S. Code § 1639e.
(2) No licensed appraisal management company or employee, controlling individual, or other agent of a licensed appraisal management company may inappropriately influence or coerce, or attempt to inappropriately influence or coerce, an appraiser conducting an appraisal service, contrary to this section or to 15 U.S. Code § 1639e or rules promulgated under 15 U.S. Code § 1639e, including by doing any of the following:
(a) Withholding, or threatening to withhold, timely payment for an appraisal service.
(b) Withholding, or threatening to withhold, future business from an independent appraiser, or demoting or terminating, or threatening to demote or terminate, an appraiser.
(c) Expressly or impliedly promising future business, promotions, or increased compensation for an appraiser.
(d) Conditioning the assignment of an appraisal service or the payment of a fee or other compensation for an appraisal service on the opinion, conclusion, or valuation to be reached, or on a preliminary estimate or opinion requested from an appraiser.
(e) Requesting an appraiser to provide an estimated, predetermined, or desired valuation in an appraisal report, or to provide estimated values of comparable sales prior to the appraiser’s completion of an appraisal service.
(f) Providing to an appraiser an anticipated, estimated, encouraged, or desired value for a subject property or a proposed or target amount to be loaned to the borrower, except that a licensed appraisal management company may provide to an appraiser a copy of a sales contract for purchase.
(g) Providing financial or nonfinancial benefits to an appraiser or to any person connected with the appraiser.
(h) Removing or threatening to remove an independent appraiser from an appraiser panel.
(i) Obtaining, using, or paying for a 2nd or subsequent appraisal or ordering an automated valuation model in connection with a mortgage financing transaction, unless there is a reasonable basis to believe that the initial appraisal was flawed and the basis is clearly noted in the loan file, or unless the appraisal or automated valuation model is performed as a bona fide prefunding or postfunding appraisal review or quality control process.
(j) Requiring that an appraiser indemnify or hold harmless the appraisal management company for liability for any damages, losses, or claims arising out of appraisal management services provided to a client by the appraisal management company.
(k) Any other act or practice that impairs, or attempts to impair, an appraiser’s independence, objectivity, or impartiality.
(3) No licensed appraisal management company may do any of the following:
(a) Change an appraisal report or other results of an appraisal service submitted by an appraiser to the licensed appraisal management company.
(b) Require an appraiser to change an appraisal report or other results of an appraisal service.
(c) Require an appraiser to complete an appraisal service if the appraiser, in the appraiser’s professional judgment, determines that he or she does not have necessary expertise concerning the geographic area of the subject property, if the appraiser notifies the licensed appraisal management company in writing of that determination.
(d) Require an appraiser to prepare an appraisal report or complete an appraisal service under a time frame that the appraiser, in the appraiser’s professional judgment, determines will not allow the appraiser to satisfy the appraiser’s relevant legal and professional obligations, if the appraiser notifies the licensed appraisal management company in writing of that determination.
(e) Interfere in any way with an appraiser’s ability to obtain information that is relevant to an appraisal service.
(f) Require an appraiser to engage in any conduct that does not comply with the Uniform Standards of Professional Appraisal Practice described under s. 458.24 or with lawful conditions required by the client.
(4) This section does not prohibit a licensed appraisal management company from asking an appraiser to consider additional appropriate property information, including additional comparable sales, to make or support an appraisal; provide further detail, substantiation, or explanation for the independent appraiser’s value conclusion; or correct errors in the appraisal report.
(5) This section does not prohibit the exchange of information or other communication between an appraiser and any person if the exchange of information or other communication does not inappropriately influence or coerce, or attempt to inappropriately influence or coerce, the appraiser contrary to this section or to 15 U.S. Code § 1639e or rules promulgated under 15 U.S. Code § 1639e.