Code of Massachusetts Regulations › 264 CMR - BOARD OF REGISTRATION OF REAL ESTATE APPRAISERS › Title 264 CMR 13.00 - Appraisal Management Companies › Section 13.01 - Governing Law, Definitions

Current through Register 1525, July 5, 2024
(1) This regulation
			 264 CMR
			 13.00 shall be construed consistent with Title XI of
			 the Financial Institutions Reform, Recovery and Enforcement Act as amended,
			 12 U.S.C.
			 3331
et seq
. and regulations
			 issued thereunder, 80 Fed. Reg. 32657;
			 12 CFR
			 34,
			 208,
			 225,
			 226,
			 323,
			 390,
			 1026,
			 1102, and
			 1222 (together, "applicable
			 federal law"), as well as M.G.L. c. 112, §§ 173-195, M.G.L. c. 112,
			 §§ 276-289,
			 264 CMR
			 1.00 -
			 12.00, and the Uniform
			 Standards of Professional Appraisal Practice; where inconsistencies are found
			 between this regulation and either applicable federal law or the Uniform
			 Standards of Professional Appraisal Practice, then applicable federal law and
			 the Uniform Standards of Professional Appraisal Practice shall
			 control.
(2) For purposes of
			 264 CMR
			 13.00, the following terms shall have the following
			 meanings:
AMC
. An appraisal management
				company.
Applicant
. A person who applies to be
				registered as an appraisal management company in the Commonwealth.
Appraisal Foundation or TAF
. The
				nonprofit organization congressionally-authorized to develop standards and
				qualifications for real estate appraisers under Title XI of the Financial
				Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and
				overseen by the Appraisal Subcommittee.
Appraisal Management Company
. An
				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 principal dwelling as
			 security for a consumer credit transaction or incorporating such transactions
			 into securitizations; and
(c)
			 within a given 12-month period, oversees an appraiser panel of 16 or more
			 certified or licensed appraisers in the Commonwealth or 25 or more certified or
			 licensed appraisers in two or more states; provided, however, that an appraisal
			 management company shall not include a department or division of an entity that
			 provides appraisal management services only to that entity.
Appraisal Management Services
. Any of
				the following performed by an appraisal management company:
(a) recruiting, selecting and retaining
			 appraisers;
(b) contracting with
			 certified or licensed appraisers to perform appraisal assignments;
(c) managing the process of having an
			 appraisal performed, including providing administrative services such as
			 receiving appraisal orders and appraisal reports, submitting completed
			 appraisal reports to creditors and secondary market participants, collecting
			 fees from creditors and secondary market participants for services provided and
			 paying appraisers for services performed; or
(d) reviewing and verifying the work of
			 appraisers.
Appraisal Services
. The services
				required to perform an appraisal, including defining the scope of work,
				inspecting the property, reviewing necessary and appropriate public and private
				data sources including, but not limited to, multiple listing services, tax
				assessment records and public land records, developing and rendering an opinion
				of value and preparing and submitting the appraisal report.
Appraisal Subcommittee or ASC
. A
				subcommittee of the Federal Financial Institutions Examination Council
				established pursuant to Title XI of FIRREA to oversee The Appraisal
				Foundation.
Appraiser Panel
. A network, list or
				roster of licensed or certified appraisers approved by an appraisal management
				company who perform appraisals as independent contractors for appraisal
				management companies; provided, however, that such licensed or certified
				appraisers shall include:
(a)
			 appraisers accepted by the appraisal management company for consideration for
			 future appraisal assignments in covered transactions or for secondary mortgage
			 market participants in connection with covered transactions; and
(b) appraisers engaged by an appraisal
			 management company to perform one or more appraisals in covered transactions or
			 for secondary mortgage market participants in connection with covered
			 transactions; and provided further, that an appraiser shall be considered an
			 independent contractor if the appraiser is treated as an independent contractor
			 by the appraisal management company for federal income tax purposes.
Board
. The Commonwealth of
				Massachusetts Board of Registration of Real Estate Appraisers.
Commonwealth
. The Commonwealth of
				Massachusetts.
Controlling Person
. A person who is
				designated and has accepted the designation of controlling person under the
				procedure established by the Board and who is:
(a) an officer or director of an appraisal
			 management company or an individual who holds an ownership interest of not less
			 than 10% in an appraisal management company;
(b) employed, appointed or authorized by an
			 appraisal management company who has authority to enter into a contractual
			 relationship with clients to perform appraisal services and who has the
			 authority to enter into agreements with independent appraisers for the
			 completion of appraisals; or
(c)
			 authorized to direct or cause the direction of the management, policies or
			 procedures of an appraisal management company.
Covered Transaction
. An extension of
				consumer credit that is or will be secured by the consumer's principal
				dwelling.
Division
. The Division of Occupational
				Licensure.
Employee in Charge
. A designated
				employee of an appraisal management company who holds a valid license as an
				appraiser and who has the responsibilities and obligations to the board as set
				forth in M.G.L. c. 112, § 281.
Managing Principal
. A Controlling
				Person or Employee in Charge.
National AMC Registry
. The national
				registry maintained by the Appraisal Subcommittee, of companies that meet the
				federal definition of AMC in 12 U.S.C.
				3350(11); are registered by
				a state or are federally regulated; and have paid the annual national AMC
				registry fee.
National AMC Registry Fee
. The fee
				that the Board is mandated to collect from each appraisal management company
				that either has registered with the Board or operates as a subsidiary of a
				federally regulated financial institution and transmit to the national AMC
				registry in accordance with 12 U.S.C. §
											3338(a)(4) B).
Person
. A natural person or an
				organization, including a sole proprietorship, partnership, limited liability
				company, limited partnership, corporation, association or other group engaged
				in joint business activities, however organized.
Uniform Standards of Professional Appraisal
				Practice and USPAP
. The appraisal standards promulgated by the
				Appraisal Standards Board of the Appraisal
				Foundation.