AB533,11,25 23458.33 Licensure. (1) Application. A person applying for a license under sub.
24(2) shall submit an application to the department on a form prescribed by the
25department. The application shall include all of the following:
AB533,12,1
1(a) The applicant's name, address, and telephone number.
AB533,12,32 (b) If the applicant is not a business domiciled in this state, the name, address,
3and telephone number of the applicant's agent for service of process in this state.
AB533,12,54 (c) The name, address, and telephone number of each person that owns more
5than 10 percent of the applicant.
AB533,12,76 (d) The name, address, and telephone number of the applicant's designated
7controlling individual under s. 458.36.
AB533,12,98 (e) A statement of the applicant in a form prescribed by the department that
9certifies all of the following:
AB533,12,1310 1. That the applicant has in place a system to verify that each independent
11appraiser on the applicant's appraiser panel and any other appraiser that may
12perform an appraisal service for the applicant is a certified appraiser or licensed
13appraiser.
AB533,12,1614 2. That the applicant requires all appraisers performing appraisal services for
15the applicant to perform appraisal services in accordance with the Uniform
16Standards of Professional Appraisal Practice described under s. 458.24.
AB533,12,2017 3. That the applicant has in place a system to verify that all appraisal services
18performed for the applicant are conducted independently and free from
19inappropriate influence or coercion under s. 458.41 and under 15 USC 1639e and
20rules promulgated under 15 USC 1639e.
AB533,12,2321 4. That the applicant maintains a detailed record of each request for an
22appraisal service that it receives, including the identity of the appraiser that
23performs the appraisal service.
AB533,12,2424 5. That the applicant satisfies s. 458.35 (2).
AB533,13,2
1(f) The information and authorizations necessary to conduct a background
2investigation for all of the following:
AB533,13,33 1. Each person identified in par. (c).
AB533,13,44 2. The applicant's controlling individual designated under s. 458.36.
AB533,13,7 5(2) Appraisal management company license. The department shall, after an
6investigation, grant and issue an appraisal management company license to an
7appraisal management company that does all of the following:
AB533,13,88 (a) Complies with sub. (1).
AB533,13,109 (b) Pays the initial credential fee determined by the department under s.
10440.03 (9) (a), but not to exceed $4,000.
AB533,13,1611 (c) Meets to the satisfaction of the department any other requirements for
12licensure under this subchapter and under rules promulgated by the department.
13The department shall promulgate rules under this paragraph that require an
14applicant for a license under this subsection to demonstrate that the applicant is
15qualified to competently perform appraisal management services in compliance with
16all applicable state and federal laws.
AB533,13,19 17(3) Investigation. The department shall conduct a background investigation
18that satisfies 12 CFR 34.214 (b) (2) on each person specified under sub. (1) (f) 1. and
192.
AB533,13,22 20(4) Denial of license or renewal. The department may not issue or renew an
21appraisal management company license if any of the following applies to any person
22that owns more than 10 percent of the appraisal management company:
AB533,13,2423 (a) The person is determined by the department not to have good moral
24character.
AB533,13,2525 (b) The person fails to submit to a background investigation under sub. (3).
AB533,14,5
1(5) Renewals. A licensed appraisal management company shall submit a
2renewal application, along with the applicable renewal fee determined by the
3department under s. 440.03 (9) (a), but not to exceed $2,000, to the department on
4a form prescribed by the department by the applicable renewal date specified under
5s. 440.08 (2) (a). A renewal under this subsection is subject to sub. (4).
AB533,14,7 6458.34 Exemptions. (1) A license under s. 458.33 (2) is not required for any
7of the following:
AB533,14,108 (a) A person that, in the ordinary course of business, contracts with an
9independent appraiser for the performance of an appraisal if upon completion of the
10appraisal the person co-signs the appraisal report.
AB533,14,1111 (b) A federally regulated appraisal management company.
AB533,14,2012 (c) A department or unit within a financial institution that is subject to direct
13regulation by an agency of the United States government that is a member of the
14federal financial institutions examination council or its successor, or to regulation by
15an agency of this state, and receives a request for the performance of an appraisal
16from one employee of the financial institution, and another employee of the same
17financial institution assigns the request for the appraisal to an appraiser that is an
18independent contractor to the institution. An appraisal management company that
19is a wholly owned subsidiary of a financial institution shall not be considered a
20“department or unit within a financial institution” for purposes of this paragraph.
AB533,14,2221 (d) An appraisal management company that does not contract with
22independent appraisers for the performance of appraisal services.
AB533,14,25 23(2) An appraisal management company that is exempt from licensure under
24sub. (1) (b) may advertise as an appraisal management company but may not hold
25itself out as a licensed appraisal management company.
AB533,15,4
1(3) An appraisal management company that is exempt from licensure under
2sub. (1) (b) shall be considered a licensed appraisal management company for
3purposes of, and shall comply with the provisions of, ss. 458.35, 458.365, 458.37,
4458.38, 458.39, 458.41, 458.43, and 458.44.
AB533,15,6 5458.35 Limitations. (1) No licensed appraisal management company may
6do any of the following:
AB533,15,87 (a) Contract with an appraiser for the performance of an appraisal service
8unless the appraiser is a certified appraiser or licensed appraiser.
AB533,15,139 (b) Employ any person in a position in which the person has the responsibility
10to request appraisal services from an appraiser or to review the results of completed
11appraisal services if the person has had a license or other credential to act as an
12appraiser in any state denied, canceled, revoked, or surrendered in lieu of revocation
13unless that license or other credential was later granted or reinstated.
AB533,15,1714 (c) Contract with an appraiser for the provision of appraisal services if the
15appraiser has had a license or other credential to act as an appraiser in any state
16denied, canceled, revoked, or surrendered in lieu of revocation unless the license or
17other credential was later granted or reinstated.
AB533,15,2418 (d) Contract with any person for the provision of appraisal services if the
19licensed appraisal management company knows or has reason to know that the
20person employs or is under contract with an independent appraiser or other person
21for the provision of appraisal services who, as a result of disciplinary action, has had
22a license or other credential to act as an appraiser in any state denied, canceled,
23revoked, or surrendered in lieu of revocation unless the license or other credential
24was later granted or reinstated.
AB533,16,3
1(2) No licensed appraisal management company or applicant for a license
2under s. 458.33 may be owned in whole or in part, directly or indirectly, by any of the
3following:
AB533,16,74 (a) A person who, as a result of disciplinary action, has had a license or other
5credential to act as an appraiser in any state denied, canceled, revoked, or
6surrendered in lieu of revocation unless that license or other credential was later
7granted or reinstated.
AB533,16,118 (b) A person that is more than 10 percent owned by another person if that other
9person, as a result of disciplinary action, has had a license or other credential to act
10as an appraiser in any state denied, canceled, revoked, or surrendered in lieu of
11revocation unless that license or other credential was later granted or reinstated.
AB533,16,16 12458.36 Designated controlling individuals. Each applicant for a license
13under s. 458.33 shall designate one controlling individual who will be the primary
14contact for all communications between the department and the appraisal
15management company. An individual may be designated as a controlling individual
16under this section only if he or she meets all of the following criteria:
AB533,16,17 17(1) The individual is a certified appraiser.
AB533,16,20 18(2) The individual remains in good standing in this state and in any other state
19that has at any time issued the controlling individual an appraiser license or
20certification.
AB533,16,24 21(3) The individual has never had an appraiser license or certification in this
22state or any other state refused, denied, canceled, revoked, or surrendered in lieu of
23a pending disciplinary proceeding in any jurisdiction and not subsequently
24reinstated or granted.
AB533,16,25 25(4) The individual is of good moral character.
AB533,17,1
1(5) The individual submits to a background investigation under s. 458.33 (3).
AB533,17,6 2458.365 Appraisal management services in federally related
3transactions; annual registry fee required.
Each licensed appraisal
4management company that performs or desires to perform appraisal management
5services in a federally related transaction shall pay to the department the annual
6registry fee required by the appraisal subcommittee or its successor agency.
AB533,17,13 7458.37 Appraiser competency. (1) (a) Before assigning an appraisal service
8to an appraiser, a licensed appraisal management company shall verify that the
9appraiser has the requisite license or certification, education, expertise, experience,
10and competency necessary to complete the appraisal assignment for the particular
11market and property type in accordance with the Uniform Standards of Professional
12Appraisal Practice described under s. 458.24, and that the independent appraiser is
13a certified appraiser or licensed appraiser in good standing with the board.
AB533,17,1614 (b) A licensed appraisal management company that has reviewed the work of
15an appraiser under sub. (4) shall consider the review for the purposes of verifying the
16competency of an appraiser for future work.
AB533,17,19 17(2) (a) Before assigning an appraisal service to an appraiser, a licensed
18appraisal management company shall obtain a written declaration from the
19appraiser that the appraiser satisfies all of the following:
AB533,17,2120 1. The appraiser is competent, or will become competent, in the property type
21of the assignment.
AB533,17,2322 2. The appraiser is competent, or will become competent, in the geographical
23area of the assignment.
AB533,17,2524 3. The appraiser has, or will obtain, access to appropriate data sources for the
25assignment.
AB533,18,3
14. The appraiser will immediately notify the licensed appraisal management
2company in writing if the appraiser later determines that he or she is not qualified
3to complete the assignment under subd. 1., 2., or 3.
AB533,18,74 (b) An appraiser that intentionally misrepresents the information provided by
5the appraiser to the licensed appraisal management company under par. (a) shall be
6subject to disciplinary action by the board under s. 458.26 or removal from the
7appraiser panel.
AB533,18,15 8(3) (a) Before an appraiser is added to an appraiser panel, a licensed appraisal
9management company shall require the appraiser to declare in writing the
10geographic areas where the appraiser is competent to appraise, the types of
11properties the appraiser is competent to appraise, and the methodologies the
12appraiser is competent to perform. The appraisal management company shall
13require the appraiser to update the information under this paragraph at least
14annually and shall retain copies of all such declarations for a period of 5 years from
15the date they are submitted.
AB533,18,1916 (b) An appraiser that intentionally misrepresents the information provided by
17the appraiser to a licensed appraisal management company under par. (a) shall be
18subject to disciplinary action by the board under s. 458.26 or removal from the
19appraiser panel.
AB533,18,24 20(4) A licensed appraisal management company shall regularly review the work
21of appraisers performing appraisal services for the appraisal management company
22to ensure that the services comply with the Uniform Standards of Professional
23Appraisal Practice described under s. 458.24 and with any standards prescribed by
24the department by rule.
AB533,19,5
1(5) Before assigning to an appraiser an appraisal review of an appraisal of a
2subject property located in this state, a licensed appraisal management company
3shall verify that the appraiser performing the appraisal review holds a current
4appraiser license or certificate in this state that is at least equivalent to the license
5or certificate initially required for the subject property.
AB533,19,10 6458.38 Compensation of appraisers. (1) A licensed appraisal management
7company shall compensate appraisers at a rate that is reasonable and customary for
8appraisal services being performed in the market area of the property being
9appraised in accordance with 15 USC 1639e and rules promulgated under 15 USC
101639e
.
AB533,19,13 11(2) In any report or other written communication to a client, lender, or other
12person, a licensed appraisal management company shall separately state the
13following fees:
AB533,19,1414 (a) Any fee paid to the appraiser for the completion of the appraisal service.
AB533,19,1615 (b) Any fee charged to the client for the licensed appraisal management
16company's appraisal management services.
AB533,19,17 17(3) A licensed appraisal management company may not do any of the following:
AB533,19,2318 (a) Fail, except in cases of breach of contract or for other good cause, to make
19payment to an appraiser for the completion of an appraisal service within 30 days
20after the date on which the appraisal management company receives the completed
21appraisal service. An appraisal service is complete under this paragraph when the
22scope of work has been completed and the work product has been delivered to the
23client with any required certification or other signed document.
AB533,20,3
1(b) Include any fee for appraisal management services performed by the
2licensed appraisal management company in the amount the company reports as
3charges for the actual completion of an appraisal service by an appraiser.
AB533,20,64 (c) Prohibit an appraiser from showing in an appraisal report or other
5document the fee that the licensed appraisal management company paid to the
6appraiser for the appraisal service.
AB533,20,87 (d) Require an appraiser to state or affirm that any fees the licensed appraisal
8management company paid to the appraiser were reasonable and customary.
AB533,20,12 9458.39 Record keeping. (1) A licensed appraisal management company
10shall maintain all of the following records for at least 5 years after the record is
11generated or 2 years after final disposition of any court proceeding concerning an
12appraisal service, whichever is later:
AB533,20,1413 (a) A written record of each request for an appraisal service and appraisal
14management services the licensed appraisal management company receives.
AB533,20,1615 (b) A written record of the identity of each appraiser who performs an appraisal
16service for the licensed appraisal management company.
AB533,20,2017 (c) A written record of all substantive communications between a licensed
18appraisal management company and an appraiser concerning an appraisal service
19or an independent appraiser's inclusion on an appraiser panel of the appraisal
20management company.
AB533,20,24 21(2) The department may audit the records of a licensed appraisal management
22company at any time to ensure compliance with this subchapter, rules promulgated
23under this subchapter, or the Uniform Standards of Professional Appraisal Practice
24described under s. 458.24.
AB533,21,5
1458.41 Appraiser independence. (1) A licensed appraisal management
2company shall ensure that appraisals that are conducted for the company are
3conducted independently and free from inappropriate influence or coercion
4consistent with this section and 15 USC 1639e and rules promulgated under 15 USC
51639e
.
AB533,21,11 6(2) No licensed appraisal management company or employee, controlling
7individual, or other agent of a licensed appraisal management company may
8inappropriately influence or coerce, or attempt to inappropriately influence or
9coerce, an appraiser conducting an appraisal service, contrary to this section or to 15
10USC 1639e
or rules promulgated under 15 USC 1639e, including by doing any of the
11following:
AB533,21,1312 (a) Withholding, or threatening to withhold, timely payment for an appraisal
13service.
AB533,21,1614 (b) Withholding, or threatening to withhold, future business from an
15independent appraiser, or demoting or terminating, or threatening to demote or
16terminate, an appraiser.
AB533,21,1817 (c) Expressly or impliedly promising future business, promotions, or increased
18compensation for an appraiser.
AB533,21,2219 (d) Conditioning the assignment of an appraisal service or the payment of a fee
20or other compensation for an appraisal service on the opinion, conclusion, or
21valuation to be reached, or on a preliminary estimate or opinion requested from an
22appraiser.
AB533,21,2523 (e) Requesting an appraiser to provide an estimated, predetermined, or desired
24valuation in an appraisal report, or to provide estimated values of comparable sales
25prior to the appraiser's completion of an appraisal service.
AB533,22,4
1(f) Providing to an appraiser an anticipated, estimated, encouraged, or desired
2value for a subject property or a proposed or target amount to be loaned to the
3borrower, except that a licensed appraisal management company may provide to an
4appraiser a copy of a sales contract for purchase.
AB533,22,65 (g) Providing financial or nonfinancial benefits to an appraiser or to any person
6connected with the appraiser.
AB533,22,87 (h) Removing or threatening to remove an independent appraiser from an
8appraiser panel.
AB533,22,149 (i) Obtaining, using, or paying for a 2nd or subsequent appraisal or ordering
10an automated valuation model in connection with a mortgage financing transaction,
11unless there is a reasonable basis to believe that the initial appraisal was flawed and
12the basis is clearly noted in the loan file, or unless the appraisal or automated
13valuation model is performed as a bona fide prefunding or postfunding appraisal
14review or quality control process.
AB533,22,1815 (j) Requiring that an appraiser indemnify or hold harmless the appraisal
16management company for liability for any damages, losses, or claims arising out of
17appraisal management services provided to a client by the appraisal management
18company.
AB533,22,2019 (k) Any other act or practice that impairs, or attempts to impair, an appraiser's
20independence, objectivity, or impartiality.
AB533,22,21 21(3) No licensed appraisal management company may do any of the following:
AB533,22,2322 (a) Change an appraisal report or other results of an appraisal service
23submitted by an appraiser to the licensed appraisal management company.
AB533,22,2524 (b) Require an appraiser to change an appraisal report or other results of an
25appraisal service.
AB533,23,5
1(c) Require an appraiser to complete an appraisal service if the appraiser, in
2the appraiser's professional judgment, determines that he or she does not have
3necessary expertise concerning the geographic area of the subject property, if the
4appraiser notifies the licensed appraisal management company in writing of that
5determination.
AB533,23,106 (d) Require an appraiser to prepare an appraisal report or complete an
7appraisal service under a time frame that the appraiser, in the appraiser's
8professional judgment, determines will not allow the appraiser to satisfy the
9appraiser's relevant legal and professional obligations, if the appraiser notifies the
10licensed appraisal management company in writing of that determination.
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