§ 160-oooo. Unprofessional conduct. 1. Appraisal management companies
shall not engage in unprofessional conduct including, but not limited to
the following:

(a) Requiring an appraiser to modify any aspect of an appraisal report
or valuation service report, unless such modifications are appropriate
according to USPAP;

(b) Requiring an appraiser to prepare an appraisal report or valuation
service report if such appraiser, in their professional judgment,
believes they don't have the necessary expertise for the specific
geographic and or specific area type;

(c) Requiring an appraiser to prepare an appraisal report or valuation
service under a time frame that such appraiser believes, in their
professional judgment, does not afford such appraiser the ability to
meet all the relevant legal and professional obligations including USPAP
requirements. Notwithstanding the foregoing provisions of this
paragraph, all appraisal reports should be completed within a reasonable
timeframe and appraisers may not unnecessarily delay completing
appraisal assignments;

(d) Prohibiting or inhibiting communication between the appraiser and
the lender, a real estate licensee, or any other person from whom such
appraiser, in their professional judgment is relevant;

(e) Requiring the appraiser to do anything that does not comply with
USPAP, or any assignment conditions and certifications required by the
client;

(f) Making any portion of the appraiser's fee or the appraisal
management company's fee contingent upon a favorable outcome, including,
but not limited to, the closing of a loan, requiring a specific dollar
amount be achieved by such appraiser in the appraisal report, making
requests for the purpose of facilitating a mortgage loan transaction,
setting a broker price opinion, or setting any other real property price
or value estimation that does not qualify as an appraisal; or

(g) Each appraisal management company operating in this state shall
make payment to an appraiser for the completion of an appraisal or
valuation assignment within thirty days of the date on which such
appraiser transmits or otherwise provides the completed appraisal or
valuation services to the appraisal management company or its assignee;

2. It shall be unlawful for an appraisal management company to:

(a) Knowingly fail to compensate an appraiser at a rate that is
reasonable and customary for appraisal or other valuation services being
performed in the market area of the property being appraised without the
services of an appraisal management company in a manner that is either
inconsistent with, or would violate section 1639(e) of the federal Truth
in Lending Act (15 USC §1639(e));

(b) Knowingly include any fees for appraisal management services that
are performed by the appraisal management company for a lender, client,
or other person in the amount that it charges the lender, client, or
other person for the actual completion of an appraisal or valuation
service by an appraiser that is part of the appraiser panel of the
appraisal management company;

(c) Knowingly fail to separate any and all fees charged to a client by
the appraisal management company for the actual completion of an
appraisal by an appraiser from the fees charged to a lender, client, or
any other person by an appraisal management company for appraisal
management services;

(d) Knowingly prohibit an appraiser from recording the fee that such
appraiser was paid by the appraisal management company for the
performance of the appraisal within the appraisal report that is
submitted by such appraiser to the appraisal management company;

(e) Knowingly fail to separately state the fees paid to an appraiser
for appraisal services and the fees charged by the appraisal management
company for services associated with the management of the appraisal
process to the client, borrower and any other payer. Appraisal
management companies shall provide a copy of the appraiser's invoice
with a copy of any appraisal report submitted to a client or a client's
representative;

(f) Knowingly allow the removal from rotation of an appraiser from an
appraiser panel, without prior written notice to such appraiser with
just cause; or

(g) Knowingly obtain, use, or pay for a second or subsequent appraisal
or the ordering of an automated valuation model or any other valuation
service in connection with a mortgage financing transaction unless there
is a reasonable basis to believe that the initial appraisal was flawed
or tainted and such basis is clearly and appropriately noted in the loan
file, or unless such appraisal or automated valuation model is done
pursuant to a bona fide pre- or post-funding appraisal review or quality
control process. Nothing in this paragraph shall prohibit an AMC from
obtaining additional appraisals if required by a lending program, or if
such additional appraisals are required by applicable local, state, or
federal law.