|S.F. No. 3043 - Minnesota Appraisal Management Company Licensing and Regulation Act (First Engrossment)|
|Author:||Senator Ray Vandeveer|
|Prepared by:||Darlene Sliwa, Senate Research (651/296-1890)|
|Date:||March 16, 2010|
Section 1 [Fee Disclosure] requires a lender to disclose to the owner of real property the fee paid
to an appraiser for an appraisal performed pursuant to an assignment from an appraisal management
company or a lender. Provides that the disclosure must be made promptly upon receipt of the
Section 2 [Title] provides that the chapter may be cited as the Minnesota Appraisal Management Company Licensing and Regulation Act.
Section 3 [Definitions] defines "appraisal," "appraisal assignment," "appraisal management company," "appraisal management services," "appraiser," "appraisal fee schedule," "appraiser panel," "assignment," "client," "Commissioner," "controlling person," "employee," "intended user," and "USPAP" for purposes of the chapter.
Section 4 [Licensing] prohibits an individual or business from engaging in appraisal management services in Minnesota unless the individual or business is licensed under this chapter. Specifies ownership requirements for an appraisal management company. Describes license application requirements. Provides that a license is valid for one year.
Section 5 [Term of License] provides that a license for an appraisal management company issued under this chapter expires on August 31 of each year.
Section 6 [License Renewal] provides that a license is renewable on August 31 of each year. Provides the application process for license renewal.
Section 7 [Exemptions] specifies entities that are exempt from the chapter.
Section 8 [Consent to Service of Process] requires an entity applying for a license as an appraisal management company to complete an irrevocable Uniform Consent to Service of Process as prescribed by the Commissioner of Commerce ("Commissioner").
Section 9 [Licensing Fees] provides that the Commissioner shall establish the appraisal management company licensure fee. Specifies that the application for initial licensure fee is $5,000 and the renewal fee is $2,500.
Section 10 [Investigations and Subpoenas] provides that the Commissioner has investigation and subpoena powers, including the authority to impose a civil penalty not to exceed $10,000 per violation.
Section 11 [Employee Requirements] requires an appraisal management company employee to be appropriately trained and familiar with the appraisal process. Requires employees that have the responsibility to review the work of employed and independent appraisers where the properties are located within the state, and which include the reviewer's opinion of value or concurrence, to be licensed and perform review assignments in compliance.
Section 12 [Limitations] prohibits an appraisal management company from entering into contracts or agreements with an employee or independent appraiser for the performance of residential real estate appraisals unless that person is licensed in good standing.
Section 13 [Pre-Engagement Certification] requires an appraisal management company to annually certify to the Commissioner that it has a system and process in place to verify that a person being added to the company's appraiser panel holds a license in good standing.
Section 14 [Adherence to Standards] requires an appraisal management company to have a system in place for annual review of its employees and independent appraisers who perform real estate appraisal assignments to ensure that the services are conducted in accordance with USPAP and chapter 82B.
Section 15 [Record Keeping] requires an appraisal management company to maintain a record of each service request and the appraiser that performs the service. Specifies that records must be kept for five years after a request is sent to an independent appraiser or completion of the appraisal report, whichever period expires last.
Section 16 [Appraiser Fee Schedule] requires an appraisal management company to disclose to the Commissioner, upon request, the fee schedules for employed and independent contractors and for the appraisal management company.
Section 17 [Appraiser Independence; Prohibitions] specifies activities an appraisal management company and its employees are prohibited from engaging in.
Section 18 [Adjudication of Disputes Between an Appraisal Management Company and an Independent Appraiser] specifies notice, disclosure, and response requirements with respect to an appraisal management company that seeks to remove an independent appraiser from its appraiser panel or otherwise refuses to assign requests for services.
Section 19 [Denial, Suspension, Revocation of Licenses] specifies enforcement powers of the Commissioner and the findings necessary to apply them. Provides a process for taking action against a licensee and for licenses that lapse, are surrendered, or otherwise ineffective.
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