NY Exec L § 160-AAAA (2021)
2021 New York Laws EXC - Executive Article 6-H - Real Estate Appraisal Management Companies 160-AAAA - Definitions.

§  160-aaaa. Definitions. As used in this article, the following terms shall have the following meanings:   1. "Appraisal" or "real estate 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.  An appraisal may be classified by subject matter into either a valuation or an analysis.   2.  "Appraisal  management  company"  or  "AMC" means an individual or business entity that:  (a)  provides  appraisal  management  services  to  creditors  or   to secondary mortgage market participants, including affiliates;  (b)  provides  such  services  in connection with valuing a consumer's real property as security for consumer credit transactions secured by  a consumer's principal dwelling; and  (c)  within  a  given  year,  oversees an appraisal panel of more than fifteen appraisers working in New York  state  or  twenty-five  or  more appraisers  working  in  two  or more states. An AMC shall not include a department or division of an entity that provides  appraisal  management services only to that entity.   3.  "Appraisal  management services" means to, directly or indirectly, provide any of the following services on behalf of a  lender,  financial institution,  client,  or  any other person in connection with valuing a consumer's  principal  dwelling  as  security  for  a  consumer   credit transaction or incorporating such transactions into securitizations:  (a) administer an appraiser panel;  (b) recruit, retain or select appraisers;  (c)  qualify  or  verify licensing or certification and negotiate fees and service level expectations with persons who are part of an appraiser panel;  (d) contract with appraisers to perform appraisal assignments;  (e) 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;  (f)  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 for  services  provided,  and  reimbursing  appraisers  for services performed;  (g) track and determine the status of orders for appraisals;  (h)  conduct  quality  control  of  a completed appraisal prior to the delivery of the appraisal to the person that ordered the appraisal;  (i) provide a completed appraisal performed by an appraiser to one  or more clients; or  (j) compensate appraisers for services rendered.   An  individual  who  hires  an  appraiser  solely  for  his or her own purposes, shall not be deemed an appraisal management company.   4. "Appraiser" means  a  person  licensed  or  certified  pursuant  to article six-E of this chapter.   5.  "Appraiser  panel"  means a network, list or roster of licensed or certified appraisers approved by the  appraisal  management  company  to perform   appraisals   as   independent  contractors  of  the  appraisal management company.   6. "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. Appraisal reviews must be performed by  a  person  who  is  certified  as  a  real  estate appraiser pursuant to article six-E of this chapter.    7.  "Board" means the state board of real estate appraisal which shall advise  the  department,  as  necessary,  on  implementation   of,   and enforcement of this article.   8.  "Competent  appraiser"  means  an  appraiser  that  satisfies each provision  of  the  competency  rule  of  the   uniform   standards   of professional  appraisal  practice for a specific appraisal assignment or valuation service that the appraiser has received, or may receive,  from an appraisal management company.   9. "Controlling person" means:  (a)  an owner, officer or director of an appraisal management company, or an individual who holds an ownership interest of ten percent or  more of such company;  (b)  an  individual  employed, appointed or authorized by an appraisal management company that has the authority to enter  into  a  contractual relationship  with  other  persons  for  the  performance  of  appraisal management services and has the authority to enter into agreements  with appraisers for the performance of appraisals; or  (c)  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.   10. "Department" means the New York state department of state.   11.  "Hybrid  firm  or  entity"  means  an entity that hires both real estate appraisers as employees to perform appraisals of  real  property, and  engage independent contractors to perform such appraisals. A hybrid firm or entity shall  be  treated  as  an  AMC  for  purposes  of  state registration  if  it  oversees  more than fifteen real estate appraisers completing valuation services in an individual state or  twenty-five  or more  real  estate appraisers in two or more states within a given year. The numerical calculation for  a  hybrid  firm  or  entity  should  only include real estate appraisers engaged as independent contractors.   12.  "Person"  means  an  individual, partnership, corporation, or any other entity recognized under New York state law.   13. "Real estate"  means  an  identified  parcel  or  tract  of  land, including improvements, if any.   14.  "Real property" means the interest, benefits, and rights inherent in the ownership of real estate.   15. "Uniform standards of professional appraisal practice" or  "USPAP" means  the  appraisal  standards  promulgated by the appraisal standards board of the appraisal foundation.   16. "Secondary mortgage  market  participant"  means  a  guarantor  or insurer  of  mortgage-backed  securities, or an underwriter or issuer of mortgage-backed securities. Secondary mortgage market  participant  only includes  an  individual  investor in a mortgage-backed security if that investor  also  serves  in  the  capacity  of  a   guarantor,   insurer, underwriter, or issuer for such mortgage-backed security.