45:14F-30 Authority of board.

4. The board shall have the authority to adopt rules that are reasonably necessary to establish an AMC registration program and implement, administer, and enforce the provisions set forth under this section.

a. The board shall have the legal authority and mechanisms to:

(1) review, and approve or deny an AMC's application for initial registration;

(2) review and renew, or review and deny an AMC's registration periodically;

(3) examine the books and records of an AMC operating in the State and require the AMC to submit reports, information, and documents;

(4) verify that the appraisers on the AMC's appraiser panel hold valid State certifications or licenses, as applicable;

(5) conduct investigations of AMCs to assess potential violations of applicable appraisal-related laws, regulations, or orders;

(6) discipline, suspend, terminate, or deny renewal of the registration of an AMC that violates applicable appraisal-related laws, regulations, or orders; and

(7) report to the Appraisal Subcommittee or other appropriate federal regulatory agency an AMC's or other third-party appraisal or appraisal management services provider's violation of applicable appraisal-related laws, regulations, or orders, as well as disciplinary and enforcement actions and other relevant information about an AMC's operations, or other third-party appraisal or appraisal management services provider's operations.

b. The board shall impose requirements on AMCs that are not owned and controlled by an insured depository institution and not regulated by a federal financial institution regulatory agency to:

(1) register with and be subject to supervision by the State appraiser certifying and licensing agency;

(2) engage only State-certified or State-licensed appraisers for federally related transactions in conformity with any federally related transaction regulations;

(3) establish and comply with processes and controls reasonably designed to ensure that the AMC, in engaging an appraiser, selects an appraiser who is independent of the transaction and who has the requisite education, expertise, and experience necessary to competently complete the appraisal assignment for the particular market and property type;

(4) direct the appraiser to perform the assignment in accordance with USPAP; and

(5) establish and comply with processes and controls reasonably designed to ensure that the AMC conducts its appraisal management services in accordance with the requirements of section 129E(a)-(i) of the Truth in Lending Act, 15 U.S.C. 1639e(a)-(i), and regulations promulgated thereunder.

L.2017, c.72, s.4.