Citations Affected: IC 25-34.1.
Synopsis: Regulation of appraisal management companies. Requires
appraisal management companies to register with the real estate
appraiser licensure and certification board (board). Provides that the
registration fee may not exceed $500. Prohibits a person from owing an
interest in an appraisal management company if the person has had the
person's license or certificate to act as a real estate appraiser in any
state revoked and not reinstated. Provides that an appraisal
management company may only hire an independent contractor to
perform an appraisal who holds a real estate appraiser license or
certificate or a real estate broker license and is in good standing.
Requires an individual who conducts appraisal reviews for an appraisal
management company to be a licensed or certified appraiser or a
licensed real estate broker. Requires an appraisal management
company to maintain certain records. Provides that an appraisal
management company is responsible for ensuring that an appraisal
meets certain standards. Allows the board to impose a civil penalty for
a violation of the appraisal management company provisions. Makes
it a Class A infraction for a person to perform appraisal management
services without a certificate or registration.
Effective: July 1, 2010.
January 11, 2010, read first time and referred to Committee on Financial Institutions.
January 20, 2010, amended, reported _ Do Pass.
January 25, 2010, read second time, ordered engrossed.
January 26, 2010, engrossed. Read third time, passed. Yeas 95, nays 1.
A BILL FOR AN ACT to amend the Indiana Code concerning
professions and occupations.
estate appraiser to one (1) or more clients.
(b) The term does not include transportation or communication
of an appraisal or order for an appraisal without concern for the
appraisal information in the appraisal or the order for an
appraisal, including transportation or communication by the
United States Postal Service, a delivery company, a courier, or an
Internet service provider.
Sec. 4. As used in this chapter, "board" refers to the real estate
appraiser licensure and certification board established by
IC 25-34.1-8-1.
Sec. 5. (a) As used in this chapter, "person" means an individual
engaged in a trade or business, an association, a partnership, a
limited partnership, a limited liability company, a corporation, or
a similar entity.
(b) The term does not include an employee.
Sec. 6. As used in this chapter, "real estate appraiser" means a
person who:
(1) prepares an appraisal for a real estate transaction in
Indiana; and
(2) meets one (1) or more of the following:
(A) Is licensed as a real estate broker under IC 25-34.1 and
performs real estate appraisals within the scope of the
person's license.
(B) Holds a real estate appraiser license or certificate
issued under IC 25-34.1-8.
Sec. 7. "USPAP" refers to the Uniform Standards of
Professional Appraisal Practice, as published by the Appraisal
Standards Board of the Appraisal Foundation, under the authority
of Title XI of the federal Financial Institutions Reform, Recover,
and Enforcement Act (12 U.S.C. 3331-3351).
Sec. 8. An appraisal management company may not perform
appraisal management services unless the appraisal management
company has obtained a certificate of registration from the board
under this chapter.
Sec. 9. (a) An appraisal management company that wishes to
obtain or renew a certificate of registration under this chapter
must submit the following information to the board on forms
prescribed by the board:
(1) The name of the person seeking registration.
(2) The business address of the person seeking registration.
(3) The telephone contact information of the person seeking
registration.
appraisal management services shall maintain a record of each
service request for an appraisal that the appraisal management
company receives. The following must be included in a record
maintained under this subsection:
(1) The person making the service request.
(2) The date on which the service request is made.
(3) The property to be appraised.
(4) The real estate appraiser who performed the appraisal.
(5) A copy of the appraisal produced for the service request.
(6) The individuals who reviewed the appraisal.
(7) The date on which the appraisal was delivered to the
person who made the service request.
(8) The costs and fees for the appraisal management services
performed by the appraisal management company.
(9) The costs and fees for the appraisal performed by the real
estate appraiser.
(b) An appraisal management company shall keep the records
described in subsection (a) for not less than six (6) years after the
date specified in subsection (a)(2).
Sec. 14. The board shall prescribe forms for the registration of
appraisal management companies under this chapter.
Sec. 15. (a) The board shall establish the registration fee to be
paid by an appraisal management company seeking registration
under this chapter. The amount of the registration fee must be the
lesser of:
(1) the amount determined by the board to be sufficient for
the administration of appraisal management registrations
under this chapter when aggregated with all the registration
fees paid by appraisal management companies seeking
registration under this chapter; or
(2) five hundred dollars ($500).
(b) Registration fees collected under this section must be
deposited in the investigative fund established by IC 25-34.1-8-7.5.
Sec. 16. An appraisal management company is responsible for
ensuring an appraisal complies with standards established:
(1) in the USPAP; and
(2) by the board.
Sec. 17. (a) An appraisal management company that violates
this chapter is subject to disciplinary sanctions under
IC 25-1-11-12.
(b) The board may impose a civil penalty of not more than ten
thousand dollars ($10,000) for each violation of this chapter.