54-4124. REGISTRATION REQUIRED. (1) Effective July 1, 2017, it is a violation of this act for a person to directly or indirectly engage or attempt to engage in business as an appraisal management company, to directly or indirectly engage or attempt to perform appraisal management services, or to advertise or hold itself out as engaging in or conducting business as an appraisal management company without first registering with the board under the provisions of this chapter.

(2) The registration required under subsection (1) of this section shall be filed in the form required by the board by rule, shall be renewed annually and shall, at a minimum, include the following information:

(a) Name of the person seeking registration;

(b) Business address of the person seeking registration;

(c) Phone contact information of the person seeking registration;

(d) If the person is not an entity that is domiciled in this state, an executed appointment of an agent for service of process in this state in the form required by the board;

(e) The name, address and contact information for all controlling persons; and

(f) Any other information required by the board by rule that is reasonably necessary to implement the provisions of this act.

(3) A registration granted by the board pursuant to this act shall be renewed and reinstated as provided in section 67-2614, Idaho Code. The board shall establish by rule the fee to be paid by each appraisal management company seeking registration under this act, such that the sum of the fees paid by all appraisal management companies seeking registration under this act shall be sufficient for the administration of this act, but in no case shall the fee be more than one thousand five hundred dollars ($1,500) per calendar year.

(4)(a) An applicant for issuance or renewal of an appraisal management company registration is required to file with the board a surety bond with one (1) or more corporate sureties authorized to do business in this state or an irrevocable letter of credit issued by an insured depository institution as defined in 12 U.S.C. section 1813, in the amount of twenty-five thousand dollars ($25,000).

(b) The surety bond or letter of credit required under paragraph (a) of this subsection must be available for all amounts adjudged by a court of competent jurisdiction to be owing to persons that have been injured by the appraisal management company’s failure to comply with this act. The name of the corporate surety and the policy number or the name of the insured depository institution, as applicable, shall be made available only to persons or their insurers who provide written evidence to the board that they possess an adjudicated and unsatisfied judgment against the appraisal management company.

(c) The board may require an appraisal management company to provide proof of a current surety bond or letter of credit upon written notice.

(d) A person or the board having a claim against an appraisal management company, if it has a claim, may bring suit against the surety bond or letter of credit required by paragraph (a) of this subsection. An action against the bond or letter of credit must be commenced within one hundred twenty (120) days after the appraisal management company allegedly failed to comply with this act.

(5) The board shall issue a unique registration number to each appraisal management company that is registered in this state and maintain an online list of the appraisal management companies that have registered with the board pursuant to this act. An appraisal management company registered in this state shall disclose the registration number provided to it by the board on the engagement documents presented to an appraiser.

(6) Each appraisal management company seeking to be registered or to renew an existing registration in this state shall certify to the board in a form prescribed by the board upon registration and renewal that it has a system in place to periodically review the work of appraisers who have performed appraisals for the appraisal management company to verify that the appraisals are being conducted in accordance with uniform standards of professional appraisal practice.

(7) Each appraisal management company seeking to be registered in this state shall certify to the board upon registration and renewal that it has retained all records required to be maintained under this act including the documentation for board registration and registration renewals for the period specified for retention of an appraiser’s work file in the uniform standards of professional appraisal practice.

(8) Each appraisal management company seeking to be registered or to renew an existing registration in this state shall certify that the company will require appraisals to be conducted independently as required by the appraisal independence standards under section 15 U.S.C. 1639e, including the requirements of payment of a customary and reasonable fee to independent appraisers when the appraisal management company is providing services for a consumer credit transaction secured by the principal dwelling of a consumer.

(9)(a) Each appraisal management company seeking to be registered or to renew a registration in this state shall certify to the board in a form required by the board that the company maintains a detailed record of each service request that the company receives for appraisals of property located in this state.

(b) All records required to be maintained by the registered appraisal management company shall be made available for inspection by the board upon reasonable notice to the appraisal management company.

History:

[54-4124, added 2016, ch. 131, sec. 1, p. 389.]