Introduced Version
House Bill 2608 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2608
(By Delegates Staggers, Morgan, Swartzmiller,
R. Phillips, Diserio, Romine, Azinger,
Border and Householder)
[Introduced
February 22, 2013
; referred to the
Committee on Government Organization then the Judiciary.]
A BILL to amend and reenact §30-38-7 and §30-38-9 of the Code of
West Virginia, 1931, as amended; and to amend said code by
adding thereto a new article, designated §30-38A-1, §30-38A-2,
§30-38A-3, §30-38A-4, §30-38A-5, §30-38A-6, §30-38A-7, §30-
38A-8, §30-38A-9, §30-38A-10, §30-38A-11, §30-38A-12, §30-38A-
13, §30-38A-14, §30-38A-15 and §30-38A-16, all relating to
requiring appraisal management companies to be registered with
the West Virginia Real Estate Appraiser Licensing and
Certification Board; updating the duties, powers and rule-
making authority of the board; unlawful acts; applicable law;
definitions; requirements for registration, including written
applications, verifications and background checks; requiring
surety bonds; duties of appraisal management companies;
prohibited acts; disciplinary action; hearing and notice
procedures; and civil penalties.
Be it enacted by the Legislature of West Virginia:
That §30-38-7 and §30-38-9 of the Code of West Virginia, 1931,
as amended, be amended and reenacted; that said code be amended by
adding thereto a new article, designated §30-38A-1, §30-38A-2, §30-
38A-3, §30-38A-4, §30-38A-5, §30-38A-6, §30-38A-7, §30-38A-8, §30-
38A-9, §30-38A-10, §30-38A-11, §30-38A-12, §30-38A-13, §30-38A-14,
§30-38A-15 and §30-38A-16, all to read as follows:
ARTICLE 38. THE REAL ESTATE APPRAISER LICENSING AND CERTIFICATION
ACT.
§30-38-7. General powers and duties.
The board shall:
(a) Define by rule the type of educational experience,
appraisal experience and equivalent experience that will meet the
statutory requirements of this article;
(b) Establish examination specifications as prescribed herein
and provide for appropriate examinations;
(c) Establish registration requirements and procedure for
appraisal management companies under the provisions of article
thirty-eight-a of this chapter;
__________(c) (d) Approve or disapprove applications for certification
and licensure;
(e) Approve or disapprove applications for registration under
the provisions of article thirty-eight-a of this chapter;
__________(d) (f) Define by rule continuing education requirements for
the renewal of certifications and licenses;
(e) (g) Censure, suspend or revoke licenses and certification
as provided in this article;
(h) Suspend or revoke registrations under the provisions of
article thirty-eight-a of this chapter;
__________(f) (i) Hold meetings, hearings and examinations;
(g) (j) Establish procedures for submitting, approving and
disapproving applications;
(h) (k) Maintain an accurate registry of the names, and
addresses and contact information of all persons certified or
issued a license to practice under this article;
(l) Maintain an accurate registry of the names, addresses and
contact information of all persons and firms registered under the
provisions of article thirty-eight-a of this chapter;
__________(i) (m) Maintain accurate records on applicants and licensed
or certified real estate appraisers;
(n) Maintain accurate records on registrants under the
provisions of article thirty-eight-a of this chapter;
__________(j) (o) Issue to each licensed or certified real estate
appraiser a pocket card with the appraiser's name and license or
certification number. Pocket cards are the property of the State
of West Virginia and, upon suspension or revocation of the license to practice pursuant to this article, will be returned immediately
to the board;
(p) Issue registration numbers to registrants under the
provisions of article thirty-eight-a of this chapter;
__________(k) (q) Deposit all fees collected by the board to the credit
of the West Virginia appraiser licensing and certification board
fund established in the office of the State Treasurer. The board
shall disburse moneys from the account to pay the cost of board
operation. Disbursements from the account may not exceed the
moneys credited to it;
(l) (r) Keep records and make reports as required by article
one of this chapter; and
(m) (s) Perform any other functions and duties necessary to
carry out the provisions of this article and article thirty-eight-a
of this chapter.
§30-38-9. Rulemaking.
(a) The board may propose rules for legislative approval in
accordance with the provisions of article three, chapter twenty-
nine-a of this code, to provide for:
(1) Licensure and certification requirements, including
requirements for applications, examinations, reciprocity, temporary
permits, apprentice permits and reinstatement;
(2) Registration requirements, including delinquent and expired registrations, for appraisal management companies under the
provisions of article thirty-eight-a of this chapter;
__________(2) (3) Fees for licenses, renewals of licenses and other
services provided by the board;
(4) A fee schedule for registrations for appraisal management
companies under the provisions of article thirty-eight-a of this
chapter;
__________(5) Surety bond requirements for registrations for appraisal
management companies under the provisions of article thirty-eight-a
of this chapter;
__________(6) Requirements and procedures for appraisal management
companies to maintain records under the provisions of article
thirty-eight-a of this chapter;
__________(3) (7) Experience, education and continuing education
requirements and approval of courses; and
(4) (8) Any other purpose to carry out the requirements of
this article and article thirty-eight-a of this chapter.
(b) The rule governing appraiser qualifications must include
requirements which meet or exceed the education, experience and
examination requirements issued or endorsed by the appraisal
qualifications board of the appraisal foundation.
(c) Any rules in effect as of the passage of this article on
January 1, 2013, will remain in effect until amended, modified, repealed or replaced, except that references to provisions of
former enactments of this act are interpreted to mean provisions of
this article.
ARTICLE 38A. APPRAISAL MANAGEMENT COMPANIES REGISTRATION ACT.
§30-38A-1. Unlawful acts.
__________(a) Commencing January 1, 2014, it is unlawful for any person
or firm to perform or offer to perform appraisal management
services, or act as an appraisal management company within this
state without a registration issued by the West Virginia Real
Estate Appraiser Licensing and Certification Board under the
provisions of this article.
__________(b) Commencing January 1, 2014, it is unlawful for any person
or firm not registered under the provisions of this article to
advertise or use a title or description conveying the impression
that the person or firm is registered to perform appraisal
management services or registered to act as an appraisal management
company within this state.
§30-38A-2. Applicable law.
__________Appraisal management companies and appraisal management
services covered under the provisions of this article are subject
to the requirements set forth in this article and the rules
promulgated hereunder, and the provisions of article one and
article thirty-eight of this chapter.
§30-38A-3. Definitions.
__________As used in this article, the following words and terms have
the following meanings, unless the context clearly indicates
otherwise:
__________(a) "Applicant" means a person or firm making an application
for registration under the provisions of this article.
__________(b) "Appraisal" means an analysis, opinion or conclusion
prepared by a real estate appraiser relating to the nature,
quality, value or utility of specified interests in, or aspects of,
identified real estate or identified real property. An appraisal
may be classified by the nature of the assignment as a valuation
appraisal, an analysis assignment or a review assignment.
__________(c) "Appraisal Management Company" means a person or firm that
performs or provides appraisal management services, directly or
indirectly, through any means of communication.
__________(d) "Appraisal management services" means the business of
managing the process of having an appraisal performed for
compensation or pecuniary gain, including:
__________(1) Conducting business directly or indirectly by telephone,
electronically, mail or in person;
__________(2) Providing related administrative and clerical duties;
__________(3) Recruiting, selecting or retaining appraisers;
__________(4) Verifying qualifications of appraisers;
__________(5) Establishing and administering an appraiser panel;
__________(6) Negotiating fees with appraisers;
__________(7) Receiving appraisal orders from clients;
__________(8) Contracting with appraisers to perform appraisal services;
__________(9) Receiving appraisals from the appraiser;
__________(10) Reviewing or verifying the appraisal received from the
appraiser;
__________(11) Tracking and determining the status of orders for
appraisals;
__________(12) Conducting quality control of a completed appraisal;
__________(13) Submitting to the client a completed appraisal received
from an appraiser;
__________(14) Collecting fees from the clients;
__________(15) Reimbursing appraisers for appraisal services rendered;
and
__________(16) Providing software products that are used to select
appraisers, order appraisals or perform any other appraisal
management services.
__________(e) "Appraisal review" means the act of developing and
communicating an opinion about the quality of another appraiser's
work that was performed as part of an appraiser assignment. The
review does not include an examination of an appraisal for
grammatical, typographical or other similar errors that do not make a substantive valuation change.
__________(f) "Appraisal services" means the practice of developing an
opinion of the value of real estate in conformity with the minimum
USPAP standards.
__________(g) "Appraiser" means a person licensed or certified, under
the provisions of article thirty-eight of this chapter, to perform
an appraisal.
__________(h) "Appraiser panel" means a group of appraisers that perform
appraisals for an appraisal management company as independent
contractors.
__________(i) "Automated valuation model (AVM)" means a mathematically
based computer software program that produces an estimate of market
value based on market analysis of location, market conditions, and
real estate characteristics from information that was previously
and separately collected. The distinguishing feature of an AVM is
that it is an estimate of market value produced through
mathematical modeling. Credibility of an AVM is dependent on the
data used and the skills of the modeler producing the AVM.
__________(j) "Board" means the West Virginia Real Estate Appraiser
Licensing and Certification Board established under the provisions
of article thirty-eight of this chapter.
__________(k) "Client" means a person or firm that contracts or enters
into an agreement with an appraisal management company for the performance of an appraisal.
__________(l) "Controlling person" or "Managing principal" means a
person authorized by an appraisal management company to contract or
enter into agreements with clients and independent appraisers for
the performance of appraisal services and has the power to manage
the appraisal management company.
__________(m) "Firm" means a corporation, limited liability company,
partnership, sole proprietorship or any other business entity.
__________(n) "Registrant" means a person or firm holding a registration
issued by the board under the provisions of this article.
__________(o) "Registration" means a registration issued by the board
under the provisions of this article.
__________(p) "State" means the State of West Virginia.
__________(q) "USPAP" means the Uniform Standards of Professional
Appraisal Practice.
§30-38A-4. Registration requirements.
__________(a) A person or firm performing or offering to perform
appraisal management services or acting as an appraisal management
company within this state shall be registered with the board by
January 1, 2014.
__________(b) A person or firm applying for a registration may not be
owned, in whole or in part, directly or indirectly by:
__________(1) A person who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended or
surrendered in this state or any other jurisdiction; or
__________(2) A firm that is owned by a person who has had a license or
certificate to act as an appraiser refused, denied, canceled,
revoked, suspended or surrendered in this state or any other
jurisdiction.
__________(c) The board may issue a registration to perform appraisal
management services or act as an appraisal management company to a
person or firm that:
__________(1) Makes written application to the board as set out in
section five of this article;
__________(2) Submits verifications as set out in section six of this
article;
__________(3) Submits national and state criminal background checks as
set out in section seven of this article;
__________(4) Posts a surety bond as set out in section eight of this
article;
__________(5) Pays the applicable fees as set out in section nine of
this article;
__________(6) Has a designated controlling person or managing principal
as set out in section ten of this article; and
__________(7) Meets any other requirement set by the board.
__________(d) The registrations issued under the provisions of this article shall be renewed annually on January 1.
__________(e) Registrations not renewed in a timely manner are
delinquent. To reinstate a delinquent registration, the registrant
must pay a monthly penalty, as set by the board.
__________(f) A registration that has been delinquent for more than
three months shall be considered expired and a new application for
registration is required.
__________(g) The board shall issue a registration number to each
appraisal management company registered in this state.
__________(h) The board shall keep a list of appraisal management
company registered in this state and publish the list on its
website.
§30-38A-5. Written application requirements.
__________(a) The written application shall be submitted on a form
prescribed by the board and shall include:
__________(1) The name, the street and mailing address and the contact
information, including telephone number and e-mail address, of the
person or firm seeking registration;
__________(2) The name, the street and mailing address and the contact
information, including telephone number and e-mail address, of each
owner seeking registration;
__________(3) The name, the street and mailing address and the contact
information, including telephone number and e-mail address, of the controlling person or managing principal of the firm seeking
registration; and
__________(4) (A) If the applicant is a domestic firm, the designation
of an agent for service of process; or
__________(B) If the applicant is a foreign firm, documentation that the
foreign firm is authorized to do business in West Virginia and that
an agent for service of process has been designated and the
following has been submitted:
__________(i) A copy of the filing with the Secretary of State's Office
appointing an agent for service of process; and
__________(ii) A certificate of authority issued by the Secretary of
State.
__________(b) The board shall maintain a list of all applicants for
registration that includes the information in the written
application.
§30-38A-6. Verification requirements.
__________(a) The verification for registration shall be in writing, on
a form prescribed by the board and signed by the applicant. The
verification shall include statements that the applicant:
__________(1) Has a process in place to verify that any person used as
an appraiser or added to the appraiser panel of the applicant is a
licensed or certified appraiser in good standing in West Virginia;
__________(2) Has set requirements to ensure that appraisers are geographically competent and can perform the appraisals assigned;
__________(3) Has set procedures for an appraiser licensed or certified
in West Virginia to review the work of the appraisers performing
appraisals for the applicant to ensure that the appraisals are
being conducted in accordance with the minimum USPAP standards;
__________(4) Will require appraisals to be conducted independently;
__________(5) Will pay reasonable and customary fees to the appraisers;
__________(6) Maintains a detailed record of each request for appraisal
it receives from a client and the appraiser that performs the
appraisal; and
__________(7) Has submitted any other information required by the board.
__________(b) The applicant and any controlling partner or managing
principal or person directly or indirectly controlling the
applicant shall submit a written verification, on a form prescribed
by the board, that includes statements that:
__________(1) The written application and verification for registration
contain no false or misleading statements;
__________(2) The applicant has complied with the requirements of this
article;
__________(3) The applicant, each owner and the controlling person or
managing principal of the firm seeking registration has not pleaded
guilty or nolo contendere to or been convicted of a felony;
__________(4) Within the past ten years, the applicant, each owner and the controlling person or managing principal of the firm seeking
registration has not pleaded guilty or nolo contendere to or been
convicted of:
__________(A) A misdemeanor involving mortgage lending or real estate
appraisals; or
__________(B) An offense involving breach of trust or fraudulent or
dishonest dealing;
__________(5) The applicant, each owner and the controlling person or
managing principal of the firm seeking registration are of good
character and reputation and that none of them has had a license or
certificate to act as an appraiser refused, denied, canceled,
revoked, suspended or surrendered in this state or any other
jurisdiction;
__________(6) The applicant, each owner and the controlling person or
managing principal of the firm seeking registration are not
permanently or temporarily enjoined by a court of competent
jurisdiction from engaging in or continuing any conduct or practice
involving appraisals, appraisal management services or operating an
appraisal management company;
__________(7) The applicant, each owner and the controlling person or
managing principal of the firm seeking registration are not the
subject of an order of the board, any state agency that regulates
appraisal management companies or any other jurisdiction that denied, suspended or revoked the applicant's or firm's privilege to
operate as an appraisal management company;
__________(8) The applicant, each owner and the controlling person or
managing principal of the firm seeking registration have not acted
as an appraisal management company while not being properly
registered by the board; and
__________(9) Set forth any other requirements of the board.
§30-38A-7. Background check requirements.
__________(a) The applicant, each owner and the controlling person or
managing principal of the firm seeking registration shall obtain
national and state criminal background checks.
__________(b) The applicant, each owner and the controlling person or
managing principal of the firm seeking registration shall obtain a
state criminal background check first and then provide their
fingerprints to the West Virginia State Police or a designated
vendor for submission to the Federal Bureau of Investigation.
__________(c) The results of the national and state criminal background
checks shall be sent to the board.
__________(d) The fees for the national and state criminal background
checks cannot exceed the actual costs of processing the request and
conducting the checks and are to be paid by the applicant, each
owner and the controlling person or managing principal of the firm
seeking registration.
§30-38A-8. Surety bond requirements and claims.
__________(a) Each applicant shall post and maintain a surety bond with
the board. The aggregate liability of the surety bond may not
exceed the principal sum of the surety bond.
__________(b) The surety bond shall:
__________(1) Be established by the board through rules;
__________(2) Not exceed $500,000;
__________(3) Be in the form prescribed by the board; and
__________(4) Accrue to the state for the benefit of any claimant
against the registrant to secure the faithful performance of the
registrant's obligations.
__________(c) A party having a claim against the registrant may bring
suit directly against the surety bond or the board may bring suit
on behalf of the party having a claim against the registrant.
__________(d) Consumer claims shall be given priority in recovering from
the surety bond.
__________(e) If a claim reduces the face amount of the surety bond,
then the surety bond amount shall be restored upon renewal of the
registrant's annual registration.
§30-38A-9. Fee requirements.
__________The fees assessed by the board, as established by legislative
rule, shall include the annual fee for appraisal management
companies to be included in the national registry maintained by the Appraisal Subcommittee of the Federal Financial Institutions
Examination Council.
§30-38A-10. Controlling person or managing principal requirements.
__________(a) An appraisal management company shall have a designated
controlling person or managing principal who will ensure compliance
with this article and will be the main contact for all
communication between the board and the appraisal management
company.
__________(b) The controlling person or managing principal shall:
__________(1) Be of good character and reputation;
__________(2) Submit to national and state criminal background checks as
set out in section seven of this article;
__________(3) Never have had a license or certificate to act as an
appraiser refused, denied, canceled, revoked, suspended or
surrendered in this state or any other jurisdiction;
__________(4) Never have been a part of a firm that was permanently or
temporarily enjoined by a court of competent jurisdiction from
engaging in or continuing any conduct or practice involving
appraisals, appraisal management services or operating an appraisal
management company; and
__________(5) Never have been the subject of an order of the board, any
state agency that regulates appraisal management companies or any
other jurisdiction that denied, suspended or revoked the applicant's or firm's privilege to operate as an appraisal
management company.
§30-38A-11. Requirements for removal from an appraiser panel.
__________(a) An appraisal management company may only remove an
appraiser from an appraiser panel or refuse to assign appraisals to
an appraiser after providing the appraiser thirty days prior
written notice stating the reasons for the removal or refusal and
providing an opportunity for the appraiser to be heard.
__________(b) An appraiser may only be removed from an appraiser panel
or refused appraisal assignments for the following reasons:
__________(1) Illegal conduct;
__________(2) Violating the minimum USPAP standards;
__________(3) Violating applicable statutes or rules that result in a
suspension or revocation of an appraiser's license or
certification;
__________(4) Substandard or improper performance as determined by the
board by rule; or
__________(5) Violating the contract between the appraiser and the
appraisal management company.
__________(c) An appraiser that is removed from an appraiser panel or
refused appraisal assignments may file a complaint with the board
for a review of the appraisal management company's decision.
__________(d) The board shall hold a hearing on the complaint within a reasonable time, not exceeding one year after the complaint was
filed.
__________(e) If the board determines after the hearing that an
appraisal management company acted improperly then the board shall
order the appraisal management company to restore the appraiser to
the appraiser panel or assign appraisals to the appraiser.
__________(f) After the board's order, an appraisal management company
may not:
__________(1) Reduce the number of appraisals given to the appraiser; or
__________(2) Penalize the appraiser in any other manner.
§30-38A-12. Duties of appraisal management companies.
__________(a) Each appraisal management company shall:
__________(1) Verify that an appraiser receiving work or being placed on
an appraiser panel is:
__________(A) Professionally and geographically competent;
__________(B) Licensed or certified under the provisions of article
thirty-eight of this chapter; and
__________(C) In good standing in this state;
__________(2) Designate a controlling person or managing principal
responsible for ensuring compliance with this article, including
filing with the board the following:
__________(A) The name of the controlling person or managing principal;
__________(B) The contact information for the controlling person or managing principal;
__________(C) A verified acceptance of responsibility from the
controlling person or managing principal; and
__________(D) A new form when there is a change of the controlling
person or managing principal;
__________(3) Maintain complete detailed records of requests for
appraisals from clients, including:
__________(A) The type of appraisal requested;
__________(B) The name and license or certification number of the
appraiser to whom the appraisal was referred;
__________(C) The fees received from the client; and
__________(D) The fees paid to the appraiser or any third party for
services performed;
__________(4) Ensure that appraisal services are provided in an
independent manner, free from inappropriate influence and coercion;
__________(5) Pay an appraiser reasonable and customary fees;
__________(6) Except in cases of breach of contract or substandard
performance, pay an appraiser for the completion of an appraisal
within sixty days after the appraiser provides the completed
appraisal to the appraisal management company;
__________(7) Disclose its registration number on all its instruments
and electronic transmissions;
__________(8) Disclose on all contracts, agreements, invoices, purchase orders or other documents, including any amendments, establishing
work to be performed for or compensation due from its clients:
__________(A) The name of the appraiser or third party performing the
services;
__________(B) A description of the services performed;
__________(C) An itemization of the actual fees paid to an appraiser or
third party for services performed; and
__________(D) An itemization of the actual fees charged by the appraisal
management company to the client for services;
__________(9) Inform the board, when it has a reasonable basis to
believe, that an appraiser has:
__________(A) Failed to comply with USPAP;
__________(B) Violated applicable laws or rules; or
__________(C) Engaged in unethical or unprofessional conduct;
__________(10) Keep accounts, correspondence, memoranda, papers and
books, either by paper or electronically, in accordance with
administrative procedures established by the board by legislative
rule, for a minimum of five years or as long as the board
determines by legislative rule; and
__________(11) Maintain a registered agent for service of process and
provide the board with the same information for the agent that is
provided to the Secretary of State.
__________(b) The board may inspect the records of appraisal management companies at any time without prior notice.
__________(c) A sole proprietor of an appraisal management company is
considered the controlling person or managing principal.
__________(d) If a disclosure becomes inaccurate for any reason, then a
revised or amended disclosure shall be provided by the end of the
next business day after the change. The revised or amended
disclosure shall be clearly marked as revised or amended and
contain sufficient information for the client to identify the
original disclosure referenced.
__________(e) The provisions of this section do not exempt a registrant
from any other reporting requirements contained in any federal or
state law.
§30-38A-13. Unprofessional conduct.
__________An appraisal management company commits unprofessional conduct
if it:
__________(1) Requires an appraiser to modify an aspect of an appraisal
which modification is not related to substandard performance or
noncompliance with the terms of a contract or agreement;
__________(2) Requires an appraiser to prepare an appraisal when the
appraiser believes, in his or her own professional judgment and
notifies the appraisal management company, that the appraiser does
not have the necessary expertise for the specific geographic area;
__________(3) Requires an appraiser to prepare an appraisal under a certain time frame that the appraiser believes, in his or her own
professional judgment and notifies the appraisal management
company, that the appraiser does not have the necessary time to
meet all the necessary and relevant legal and professional
obligations;
__________(4) Prohibits or inhibits communication between an appraiser
and any other person from whom the appraiser, in the appraiser's
own professional judgment, believes information would be relevant;
__________(5) Requires an appraiser to do anything that does not comply
with:
__________(A) The USPAP; or
__________(B) The requests of the client; or
__________(6) Makes any portion of the appraiser's fee or the appraisal
management company's fee contingent on a favorable outcome,
including:
__________(A) A loan closing; or
__________(B) An appraisal for a specific dollar amount.
§30-38A-14. Prohibited acts.
__________(a) An appraisal management company or any person acting for
an appraisal management company as an owner, director, officer,
agent, employee or independent contractor may not:
__________(1) Improperly influence or attempt to improperly influence
the development, reporting, result or review of an appraisal;
__________(2) Use intimidation, inducement, coercion, extortion,
collusion, bribery, compensation, blackmail, threat of nonpayment,
threat of exclusion from future appraisal work or any other means
that unduly influences or pressures the appraiser;
__________(3) Withhold payment to an appraiser for appraisal services;
__________(4) Provide payment to an appraiser that is less than what is
reasonable and customary;
__________(5) Withhold business from an appraiser without cause;
__________(6) Demote or terminate an appraiser without cause;
__________(7) Expressly or impliedly promise future business, promotions
or increased compensation to an appraiser;
__________(8) Knowingly employ a person to a position of responsibility
who has had a license or certificate to act as an appraiser
refused, denied, canceled, revoked, suspended or surrendered in
this state or any other jurisdiction;
__________(9) Knowingly enter into a contract with a person who has had
a license or certificate to act as an appraiser refused, denied,
canceled, revoked, suspended or surrendered in this state or any
other jurisdiction;
__________(10) Knowingly enter into a contract, agreement or other
business relationship for the purpose of obtaining real estate
appraisal services with a firm that employs or contracts with a
person who has had a license or certificate to act as an appraiser refused, denied, canceled, revoked, suspended or surrendered in
this state or any other jurisdiction;
__________(11) Knowingly fail to separate and disclose any fees charged
to a client by the appraisal management company for an appraisal by
an appraiser from fees charged to a client by the appraisal
management company for appraisal management services;
__________(12) Prohibit an appraiser from stating, in a submitted
appraisal, the fee paid by the appraisal management company to the
appraiser for the appraisal;
__________(13) Request, allow or require an appraiser to collect any
portion of the fee, including the appraisal fee, charged by the
appraisal management company to the client;
__________(14) Require an appraiser to provide the registrant with the
appraiser's signature or seal in any form;
__________(15) Alter, amend or change an appraisal submitted by an
appraiser;
__________(16) Remove an appraiser's signature or seal from an
appraisal;
__________(17) Add information to or remove information from an
appraisal with the intent to change the conclusion of the
appraisal;
__________(18) Remove an appraiser from an appraiser panel without
thirty days prior written notice to the appraiser and an opportunity for the appraiser to be heard;
__________(19) Enter into an agreement or contract for the performance
of appraisal services with an appraiser who is not in good standing
with the board;
__________(20) Request or require an appraiser to provide an estimated,
predetermined or desired valuation in an appraisal;
__________(21) Request or require an appraiser to provide estimated
values or comparable sales at any time prior to the appraiser
completing an appraisal;
__________(22) Condition a request for an appraisal or the payment of an
appraisal fee on:
__________(A) An opinion, conclusion or valuation reached; or
__________(B) A preliminary estimate or opinion requested from an
appraiser;
__________(23) Provide to an appraiser an anticipated, estimated,
encouraged or desired value for an appraisal or a proposed or
targeted amount to be loaned or borrowed, except that a copy of the
sales contract for the purchase transaction may be provided;
__________(24) Require an appraiser to indemnify or hold harmless an
appraisal management company for any liability, damage, losses or
claims arising out of the services provided by the appraisal
management company;
__________(25) Have a direct or indirect interest, financial or otherwise, in the property or transaction involving the appraisal;
__________(26) Provide to an appraiser or a person related to the
appraiser stock or other financial or nonfinancial benefits;
__________(27) Obtain, use or pay for a second or subsequent appraisal
or order an automated valuation model, unless:
__________(A) There is a reasonable basis to believe that the initial
appraisal was flawed and the basis is clearly and appropriately
noted in the file;
__________(B) The second or subsequent appraisal, or automated valuation
model is done under a bona fide prefunding or post-funding
appraisal review or quality control process;
__________(C) The second appraisal is required by law; or
__________(D) The second or subsequent appraisal or automated valuation
model is ordered by a client; or
__________(28) Commit an act or practice that impairs or attempts to
impair an appraiser's independence, objectivity or impartiality.
__________(b) This section does not prohibit an appraisal management
company from requesting that an appraiser:
__________(1) Provide additional information about the basis for a
valuation;
__________(2) Correct objective factual errors in an appraisal;
__________(3) Provide further detail, substantiation or explanation for
the appraiser's conclusion; or
__________(4) Consider additional appropriate property information,
including the consideration of additional comparable properties to
make or support an appraisal.
§30-38A-15. Disciplinary action.
__________The board may deny, suspend, revoke or refuse to issue or
renew the registration of an appraisal management company or may
restrict or limit the activities of an appraisal management company
or of a person or firm that owns an interest in or participates in
the business of an appraisal management company for the following
reasons:
__________(1) A person or firm acted as an appraisal management company
or performed appraisal management services without being properly
registered with the board;
__________(2) A person or firm did not perform the duties set out in
this article;
__________(3) A person or firm engaged in unprofessional conduct as set
out in this article;
__________(4) A person or firm engaged in a prohibited act set out in
this article;
__________(5) The application for registration contained false or
misleading information;
__________(6) A person or firm fraudulently or deceptively obtains or
attempts to obtain a registration;
__________(7) A person or firm fraudulently or deceptively used a
registration;
__________(8) A person or firm violated the provisions of this article,
this code, or the board's rules;
__________(9) A person or firm was found guilty of a felony or pleaded
guilty or nolo contendere to a felony;
__________(10) Within the past ten years, a person or firm was found
guilty of or pleaded guilty or nolo contendere to a misdemeanor
involving:
__________(A) Mortgage lending;
__________(B) Appraisals;
__________(C) Breach of trust; or
__________(D) Fraudulent or dishonest dealing;
__________(11) A person or firm is permanently or temporarily enjoined
by a court of competent jurisdiction from engaging in or continuing
any conduct or practice involving appraisal management services or
operating an appraisal management company;
__________(12) A person or firm is the subject of an order of the board
or any other jurisdiction's appraisal management company regulatory
agency that denied, suspended, revoked or restricted a person's or
firm's privilege to operate as an appraisal management company;
__________(13) A person or firm failed to pay the applicable fees; or
__________(14) For any other finding by the board.
§30-38A-16. Notice and hearing procedures.
__________(a) The board, on its own motion or upon receipt of a written
complaint, may investigate an appraisal management company, a
person or firm associated therewith and a person or firm performing
appraisal management services.
__________(b) If the board determines after the investigation there are
grounds for disciplinary action, the board may hold a hearing after
giving thirty days' prior notice.
__________(c) The board has the same powers set out in article thirty-
eight of this chapter.
__________(d) After notice and a hearing, the board may:
__________(1) Suspend, revoke, deny, reprimand, cancel or restrict the
registration of a registrant;
__________(2) Impose a fine not to exceed $25,000 for each violation; or
__________(3) Take other disciplinary action as established by the board
by rule.
__________(e) The board may obtain injunctive relief in Kanawha County
Circuit Court to prevent a person or firm from violating the
provisions of this article or the rules promulgated hereunder. The
circuit court may grant a temporary or permanent injunction.
NOTE: The purpose of this bill is to require Appraisal
Management Companies to be registered with the West Virginia Real
Estate Appraiser Licensing and Certification Board. The bill updates the duties, powers and rule-making authority of the board
and the general and specific regulation of Appraisal Management
Companies.
Article 38A is new; therefore, it has been completely
underscored.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
This bill was recommended for introduction and passage during
the Regular Session of the Legislature by the Joint Committee on
Government Organization.
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