good question, I am also wondering about all of the REO nationwide desk work that is out there.
Does the reviewing AMC of a NC property have to be registered?
Does an AMC hiring an appraiser in NC to review work outside of NC have to be registered?
Doe an AMC hiring an appraiser for national consultation work have to be registered?
"
I am also wondering about all of the REO nationwide desk work that is out there.
The law does not mention reviews (desk reviews) under the definitions of what an services an AMC provides. see 93e-2.2 Definitions. (a) (2) a-g.
1) These folks are EXEMPT from the law: An appraisal management company does not include any of the following:
a. Any agency of the federal government or any State or municipal
government.
c. Any state or federally chartered bank, farm credit system, savings
institution, or credit union. If it is an REO....it is owned by one of those.
2) Yes...but could be challenged. The NC Appraisers Act covers Standards 1, 2 & 3....with Standard 3 being reviews. The poorly written AMC law fails to specifically refer to "reviews" in 93e-2.2 Definitions. (a) (2) a-g. fails to mention the word "review" or the phrase "appraisal review". Only the word "appraisal" was used as to what Appraisal management services include.
3) No. The AMC law does not apply to services provided outside of NC. That would be up to the "other state". If an appraiser who lives in NC can properly review appraisals outside of the state he would be subject to specific laws in the state outside of NC. Again, the Appraisal management services promulgated in the AMC law.....fail to mention appraisal reviews.
4) The NC Appraisers Act (93-e) and the NCAB rules do not cover Standard 4.....Appraisal Consulting. NC law only covers Standards 1, 2 & 3.
Why not just read the law and see what it says.
§ 93E-2-1. Registration required of real estate appraisal management companies;
exceptions.
Beginning January 1, 2011, it shall be unlawful for any person, corporation, partnership,
sole proprietorship, subsidiary, unit, or any other business entity in this State to do any of the
following without first registering with the Board under the provisions of this Article:
(1) Directly or indirectly engage or attempt to engage in business as an appraisal
management company.
(2) Advertise or make a representation that the person or entity is engaging in or
conducting business as an appraisal management company.
(3) In any way act as or provide the services of an appraisal management
company.
"§ 93E-2-2. Definitions.
(a) The following definitions apply in this Article:
(1) Appraisal management company. – A corporation, partnership, sole
proprietorship, subsidiary, unit, or other business entity that utilizes an
appraisal panel or fee panel and performs, directly or indirectly, appraisal
management services.
An appraisal management company does not include any of the following:
a. Any agency of the federal government or any State or municipal
government.
b. An appraiser who enters into an agreement, whether written or
otherwise, with another appraiser for the performance of an
appraisal, and upon completion of the appraisal, the appraisal report
is signed both by the appraiser who completed the appraisal and the
appraiser who requested the completion of the appraisal, except that
an appraisal management company may not avoid the requirements
of this Article by requiring that an employee of the appraisal
management company who is an appraiser sign an appraisal report
that is completed by an appraiser who is a member of the appraisal
panel of the appraisal management company.
c. Any state or federally chartered bank, farm credit system, savings
institution, or credit union.
d. Any licensed real estate broker performing only activities in
accordance with Article 1 of this Chapter.
e. Any officer or employee of an exempt entity described in this
subdivision when acting in the scope of employment for the exempt
entity.
f. Any person licensed to practice law in this State, a court-appointed
personal representative or trustee who orders an appraisal in
connection with a bona fide client relationship in which the person
directly contracts with an independent appraiser.
Page 2 Session Law 2010-141 SL2010-0141
(2)
Appraisal management services. – Direct or indirect performance of any of
the following functions on behalf of a lender, financial institution, client, or
any other person:a. Administer an appraiser panel.
b.
Recruit, qualify, and/or verify licensing or certification of appraiserswho are or may become part of an appraiser panel.
c.
Negotiate fees and service level expectations with appraisers who are
part of an appraiser panel.d. Receive an order for an appraisal from one person and deliver the
order for the appraisal to an appraiser that is part of an appraiser
panel for completion.
e. Take and determine the status of orders for appraisals.
f.
Conduct quality control of a completed appraisal performed by an
appraiser who is part of an appraiser panel prior to the delivery of the
appraisal to the person that ordered the appraisal.
g.
Provide a completed appraisal performed by an appraiser who is part
of an appraiser panel to one or more persons who have ordered an
appraisal.
(3) Appraiser panel or fee panel. – A network of licensed or certified appraisers
who are independent contractors to the appraisal management company that
have:
a. Responded to an invitation, request, or solicitation from an appraisal
management company, in any form, to perform appraisals for
persons that have ordered appraisals through the appraisal
management company or to perform appraisals for the appraisal
management company directly, on a periodic basis, as requested and
assigned by the appraisal management company; and
b. Been selected and approved by an appraisal management company to
perform appraisals for any client or the appraisal management
company that has ordered an appraisal through the appraisal
management company or to perform appraisals for the appraisal
management company directly, on a periodic basis, as assigned by
the appraisal management company.
(4)
Appraisal review. – 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, except that an examination of an appraisal
for grammatical, typographical, or other similar errors shall not be an
appraisal review.
(5) Board. – The North Carolina Appraisal Board under Article 1 of this
Chapter.
(6) Employee. – An individual who has an employment relationship
acknowledged by both the individual and the company and is treated as an
employee for purposes of compliance with federal income tax laws.
(7) Registrant. – A real estate appraisal management company registered
pursuant to this Article.
