Each State electing to register
AMCs pursuant to paragraph (b)(1) of this section must:
(a) Establish and maintain within the State appraiser
certifying and licensing agency a licensing program that is subject
to the limitations set forth in section 225.194 and with 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
an AMC’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, to the Appraisal Subcommittee.
(b) Impose requirements on AMCs that are
not owned and controlled by an insured depository institution and
not regulated by a Federal financial institutions 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 thereunder.
