2023 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.