Search OpenLegislation Statutes

This entry was published on 2019-05-03
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
Executive (EXC) CHAPTER 18, ARTICLE 6-H
§ 160-aaaa. Definitions. As used in this article, the following terms
shall have the following meanings:

1. "Appraisal" or "real estate appraisal" means an analysis, opinion
or conclusion relating to the nature, quality, value or utility of
specified interests in, or aspects of, identified real estate. An
appraisal may be classified by subject matter into either a valuation or
an analysis.

2. "Appraisal management company" or "AMC" means an individual or
business entity that:

(a) provides appraisal management services to creditors or to
secondary mortgage market participants, including affiliates;

(b) provides such services in connection with valuing a consumer's
real property as security for consumer credit transactions secured by a
consumer's principal dwelling; and

(c) within a given year, oversees an appraisal panel of more than
fifteen appraisers working in New York state or twenty-five or more
appraisers working in two or more states. An AMC shall not include a
department or division of an entity that provides appraisal management
services only to that entity.

3. "Appraisal management services" means to, directly or indirectly,
provide any of the following services on behalf of a lender, financial
institution, client, or any other person in connection with valuing a
consumer's principal dwelling as security for a consumer credit
transaction or incorporating such transactions into securitizations:

(a) administer an appraiser panel;

(b) recruit, retain or select appraisers;

(c) qualify or verify licensing or certification and negotiate fees
and service level expectations with persons who are part of an appraiser

(d) contract with appraisers to perform appraisal assignments;

(e) receive an order for an appraisal from one person, and deliver the
order for the appraisal to an appraiser that is part of an appraiser
panel for completion;

(f) manage the process of having an appraisal performed, including
providing administrative duties, such as receiving appraisal orders and
reports, submitting completed appraisal reports to creditors and
underwriters for services provided, and reimbursing appraisers for
services performed;

(g) track and determine the status of orders for appraisals;

(h) conduct quality control of a completed appraisal prior to the
delivery of the appraisal to the person that ordered the appraisal;

(i) provide a completed appraisal performed by an appraiser to one or
more clients; or

(j) compensate appraisers for services rendered.

An individual who hires an appraiser solely for his or her own
purposes, shall not be deemed an appraisal management company.

4. "Appraiser" means a person licensed or certified pursuant to
article six-E of this chapter.

5. "Appraiser panel" means a network, list or roster of licensed or
certified appraisers approved by the appraisal management company to
perform appraisals as independent contractors of the appraisal
management company.

6. "Appraisal review" means the act or process of developing and
communicating an opinion about the quality of another appraiser's work
that was performed as part of an appraisal assignment. Appraisal reviews
must be performed by a person who is certified as a real estate
appraiser pursuant to article six-E of this chapter.

7. "Board" means the state board of real estate appraisal which shall
advise the department, as necessary, on implementation of, and
enforcement of this article.

8. "Competent appraiser" means an appraiser that satisfies each
provision of the competency rule of the uniform standards of
professional appraisal practice for a specific appraisal assignment or
valuation service that the appraiser has received, or may receive, from
an appraisal management company.

9. "Controlling person" means:

(a) an owner, officer or director of an appraisal management company,
or an individual who holds an ownership interest of ten percent or more
of such company;

(b) an individual employed, appointed or authorized by an appraisal
management company that has the authority to enter into a contractual
relationship with other persons for the performance of appraisal
management services and has the authority to enter into agreements with
appraisers for the performance of appraisals; or

(c) an individual who possesses, directly or indirectly, the power to
direct or cause the direction of the management or policies of an
appraisal management company.

10. "Department" means the New York state department of state.

11. "Hybrid firm or entity" means an entity that hires both real
estate appraisers as employees to perform appraisals of real property,
and engage independent contractors to perform such appraisals. A hybrid
firm or entity shall be treated as an AMC for purposes of state
registration if it oversees more than fifteen real estate appraisers
completing valuation services in an individual state or twenty-five or
more real estate appraisers in two or more states within a given year.
The numerical calculation for a hybrid firm or entity should only
include real estate appraisers engaged as independent contractors.

12. "Person" means an individual, partnership, corporation, or any
other entity recognized under New York state law.

13. "Real estate" means an identified parcel or tract of land,
including improvements, if any.

14. "Real property" means the interest, benefits, and rights inherent
in the ownership of real estate.

15. "Uniform standards of professional appraisal practice" or "USPAP"
means the appraisal standards promulgated by the appraisal standards
board of the appraisal foundation.

16. "Secondary mortgage market participant" means a guarantor or
insurer of mortgage-backed securities, or an underwriter or issuer of
mortgage-backed securities. Secondary mortgage market participant only
includes an individual investor in a mortgage-backed security if that
investor also serves in the capacity of a guarantor, insurer,
underwriter, or issuer for such mortgage-backed security.