2023 New York Laws › EXC - Executive › Article 6-H - Real Estate Appraisal Management Companies › 160-OOOO - Unprofessional Conduct.

§  160-oooo. Unprofessional conduct. 1. Appraisal management companies
shall not engage in unprofessional conduct including, but not limited to
the following:
(a) Requiring an appraiser to modify any aspect of an appraisal report
or valuation service report, unless such modifications  are  appropriate
according to USPAP;
(b) Requiring an appraiser to prepare an appraisal report or valuation
service  report  if  such  appraiser,  in  their  professional judgment,
believes they don't  have  the  necessary  expertise  for  the  specific
geographic and or specific area type;
(c) Requiring an appraiser to prepare an appraisal report or valuation
service  under  a  time  frame  that  such  appraiser believes, in their
professional judgment, does not afford such  appraiser  the  ability  to
meet all the relevant legal and professional obligations including USPAP
requirements.   Notwithstanding   the   foregoing   provisions  of  this
paragraph, all appraisal reports should be completed within a reasonable
timeframe  and  appraisers  may  not  unnecessarily   delay   completing
appraisal assignments;
(d)  Prohibiting or inhibiting communication between the appraiser and
the lender, a real estate licensee, or any other person from  whom  such
appraiser, in their professional judgment is relevant;
(e)  Requiring  the appraiser to do anything that does not comply with
USPAP, or any assignment conditions and certifications required  by  the
client;
(f)  Making  any  portion  of  the  appraiser's  fee  or the appraisal
management company's fee contingent upon a favorable outcome, including,
but not limited to, the closing of a loan, requiring a  specific  dollar
amount  be  achieved  by  such appraiser in the appraisal report, making
requests for the purpose of facilitating a  mortgage  loan  transaction,
setting a broker price opinion, or setting any other real property price
or value estimation that does not qualify as an appraisal; or
(g)  Each  appraisal  management company operating in this state shall
make payment to an appraiser for  the  completion  of  an  appraisal  or
valuation  assignment  within  thirty  days  of  the  date on which such
appraiser transmits or otherwise provides  the  completed  appraisal  or
valuation services to the appraisal management company or its assignee;
2. It shall be unlawful for an appraisal management company to:
(a)  Knowingly  fail  to  compensate  an  appraiser  at a rate that is
reasonable and customary for appraisal or other valuation services being
performed in the market area of the property being appraised without the
services of an appraisal management company in a manner that  is  either
inconsistent with, or would violate section 1639(e) of the federal Truth
in Lending Act (15 USC §1639(e));
(b)  Knowingly include any fees for appraisal management services that
are performed by the appraisal management company for a lender,  client,
or  other  person  in  the amount that it charges the lender, client, or
other person for the actual completion  of  an  appraisal  or  valuation
service  by  an  appraiser  that  is  part of the appraiser panel of the
appraisal management company;
(c) Knowingly fail to separate any and all fees charged to a client by
the appraisal  management  company  for  the  actual  completion  of  an
appraisal  by an appraiser from the fees charged to a lender, client, or
any other person  by  an  appraisal  management  company  for  appraisal
management services;
(d)  Knowingly  prohibit an appraiser from recording the fee that such
appraiser  was  paid  by  the  appraisal  management  company  for   the
performance  of  the  appraisal  within  the  appraisal  report  that is
submitted by such appraiser to the appraisal management company;
(e) Knowingly fail to separately state the fees paid to  an  appraiser
for  appraisal services and the fees charged by the appraisal management
company for services associated with the  management  of  the  appraisal
process   to  the  client,  borrower  and  any  other  payer.  Appraisal
management  companies  shall  provide  a copy of the appraiser's invoice
with a copy of any appraisal report submitted to a client or a  client's
representative;
(f)  Knowingly allow the removal from rotation of an appraiser from an
appraiser panel, without prior written notice  to  such  appraiser  with
just cause; or
(g) Knowingly obtain, use, or pay for a second or subsequent appraisal
or  the  ordering of an automated valuation model or any other valuation
service in connection with a mortgage financing transaction unless there
is a reasonable basis to believe that the initial appraisal  was  flawed
or tainted and such basis is clearly and appropriately noted in the loan
file,  or  unless  such  appraisal  or automated valuation model is done
pursuant to a bona fide pre- or post-funding appraisal review or quality
control process. Nothing in this paragraph shall prohibit  an  AMC  from
obtaining  additional appraisals if required by a lending program, or if
such additional appraisals are required by applicable local,  state,  or
federal law.