AI-assisted research summary: Appraisal management companies and their employees, directors, officers, or agents must not pressure or interfere with appraisals, with limited allowances for factual corrections and valuation-basis questions.
47-14-17. Appraiser independence; prohibitions. A. Appraisals shall be conducted independently and free from inappropriate influence and coercion pursuant to the appraisal independence standards established pursuant to the federal Truth in Lending Act. B. It is unlawful for any employee, director, officer or agent of an appraisal management company registered pursuant to the Appraisal Management Company Registration Act to influence or attempt to influence the development, reporting or review of an appraisal through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery or in any other manner, including: (1) withholding or threatening to withhold timely payment for an appraisal; (2) withholding or threatening to withhold future business for an independent appraiser or demoting or terminating, or threatening to demote or terminate, an independent appraiser; (3) expressly or impliedly promising future business, promotions or increased compensation for an independent appraiser; (4) conditioning the request for an appraisal service or the payment of an appraisal fee or salary or bonus on the opinion, conclusion or valuation to be reached or on a preliminary estimate or opinion requested from an independent appraiser; (5) requesting that an independent appraiser provide an estimated, predetermined or desired valuation in an appraisal report or provide estimated values of comparable sales at any time prior to the independent appraiser's completion of an appraisal service; (6) providing to an independent appraiser an anticipated, estimated, encouraged or desired value for a subject property or a proposed or target amount to be loaned to the borrower, except that a copy of the sales contract for purchase transactions may be provided; (7) providing to an independent appraiser, or any entity or person related to the appraiser, stock or other financial or non-financial benefits; (8) allowing the removal of an independent appraiser from an appraiser panel, without prior written notice to such appraiser; (9) obtaining, using or paying for a second or subsequent appraisal or ordering an automated valuation model 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; or (10) engaging in any other act or practice that impairs or attempts to impair an appraiser's independence, objectivity or impartiality. C. Nothing in Subsection B of this section shall be construed as prohibiting the appraisal management company from requesting that an independent appraiser: (1) provide additional information about the basis for a valuation; or (2) correct objective factual errors in an appraisal report. D. In an effort to preclude discrimination, criteria shall be established by the appraisal management company and may include education achieved, experience, sample appraisals and references from prior clients. Membership in a nationally recognized professional appraisal organization may be a criterion considered, though lack of membership shall not be the sole bar against consideration for an assignment under these criteria. History: Laws 2009, ch. 214, § 17; 2013, ch. 143, § 6.