2023 Massachusetts General Laws › Part I - Administration of the Government › Title XVI - Public Health › Chapter 112 - Registration of Certain Professions and Occupations › Section 285 - Appraisal Management Companies; Prohibited Activities

Section 285. (a) No employee, director, officer, managing principal or agent of an appraisal management company or a third party acting as a joint venture partner or an independent contractor of an appraisal management company shall influence or attempt to influence the development, reporting, result or review of a real estate appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, bribery or other manner which may include, but shall not be limited to including:
(i) withholding or threatening to withhold timely payment for a real estate appraisal report except in cases of breach of contract or substandard performance of services;
(ii) withholding or threatening to withhold future business from a real estate appraiser or demoting or terminating or threatening to demote or terminate a real estate appraiser;
(iii) expressly or impliedly promising future business, appraisal services, promotions or increased compensation for an appraiser;
(iv) conditioning the ordering of a real estate appraisal report or the payment of a real estate appraisal fee, salary or bonus on the opinion, conclusion or valuation to be reached or on a preliminary estimate requested from a real estate appraiser;
(v) requesting that an appraiser provide an estimated, predetermined or desired valuation in a real estate appraisal report or provide estimated values or comparable sales at any time before the appraiser's completion of the appraisal report;
(vi) providing to an appraiser an anticipated, estimated, encouraged or desired value for a subject property or a proposed or targeted amount to be loaned to the borrower; provided, however, that a real estate appraiser should be provided with a copy of the sales contract for purchase transactions, if available;
(vii) providing to an appraiser, or to a person or entity related to the appraiser, stock or other financial or nonfinancial benefits;
(viii) allowing the removal of an appraiser from a list of qualified appraisers used by the registrant without prior written notice stating the reason for such removal to the appraiser; provided, however, that if the appraiser is removed from the list for illegal conduct, substandard performance or otherwise improper or unprofessional behavior or for a violation of the Uniform Standards of Professional Appraisal Practice or the licensing standards of the commonwealth, the notice shall include written evidence thereof;
(ix) requesting or requiring an appraiser to collect a fee from, or be compensated by, the borrower, homeowner, real estate agent, mortgage broker or any other third party in the provision of real estate appraisal services; or
(x) the performance of any other act or practice that impairs or attempts to impair an appraiser's independence, objectivity or impartiality.
(b) An employee, director, officer, managing principal or agent of an appraisal management company or a third party acting as a joint venture partner or an independent contractor of an appraisal management company shall not:
(i) alter, modify or otherwise change a completed appraisal report submitted by an appraiser without the appraiser's written acknowledgment and consent;
(ii) alter, modify or otherwise change a completed appraisal report submitted by an appraiser; provided, however, that an appraiser shall transmit a true and exact copy to the client and any intended users;
(iii) use an appraisal report submitted by an appraiser for any other transaction;
(iv) require an appraiser to sign an indemnification agreement that would require the appraiser to defend and hold harmless the appraisal management company or any of its agents, employees or independent contractors for any liability, damages, losses or claims arising out of the services performed by the appraisal management company or its agents, employees or independent contractors and not the services performed by the appraiser;
(v) require an appraiser to provide the company with the appraiser's digital signature or seal;
(vi) prohibit an appraiser from recording the fee the appraiser received for the performance of an appraisal assignment within the body of the appraisal report;
(vii) require an appraiser to accept an appraisal assignment if the appraiser, in the appraiser's independent professional judgment believes: (A) the appraiser does not have the necessary expertise for the assignment or knowledge of the geographic area; or (B) that the time frame does not allow the appraiser the ability to meet all of the appraiser's relevant legal or professional obligations and the appraiser has communicated such belief to the appraisal management company; or
(viii) knowingly fail to compensate an appraiser at a rate that is reasonable and customary for appraisal services in the market area of the property being appraised, consistent with section 129E of the Truth in Lending Act and regulations promulgated thereunder.
(c) Nothing in this section shall prohibit an appraisal management company from requesting that an appraiser:
(i) consider additional appropriate material property information;
(ii) provide further detail, substantiation or explanation for the appraiser's value conclusion; or
(iii) correct errors in the real estate appraisal report.
(d) An appraisal management company shall not refuse to assign requests or orders for appraisals or reduce the number of assignments or otherwise penalize an appraiser who does not accept an assignment or order in accordance with clause (vii) of subsection (b); provided, however, that nothing in this section shall require an appraisal management company to offer future appraisal assignments of a particular nature or type to an appraiser who previously indicated a lack of the necessary expertise or geographic knowledge for such assignments except where the appraiser subsequently demonstrates to the satisfaction of the appraisal management company that the appraiser has gained the required experience or geographic knowledge to competently complete the assignments.