Chapter 458

458.37(3)(b) (b) An appraiser that intentionally misrepresents the information provided by the appraiser to a licensed appraisal management company under par. (a) shall be subject to disciplinary action by the board under s. 458.26 or removal from the appraiser panel.

458.37(4) (4) A licensed appraisal management company shall regularly review the work of appraisers performing appraisal services for the appraisal management company to ensure that the services comply with the Uniform Standards of Professional Appraisal Practice described under s. 458.24 and with any standards prescribed by the department by rule.

458.37(5) (5) Before assigning to an appraiser an appraisal review of an appraisal of a subject property located in this state, a licensed appraisal management company shall verify that the appraiser performing the appraisal review holds a current appraiser license or certificate in this state that is at least equivalent to the license or certificate initially required for the subject property.

458.37 History History: 2017 a. 113.

458.38 458.38 Compensation of appraisers.

458.38(1) (1) A licensed appraisal management company shall compensate appraisers at a rate that is reasonable and customary for appraisal services being performed in the market area of the property being appraised in accordance with 15 USC 1639e and rules promulgated under 15 USC 1639e.

458.38(2) (2) In any report or other written communication to a client, lender, or other person pertaining to the cost of a specific appraisal assignment, a licensed appraisal management company shall separately state the following fees:

458.38(2)(a) (a) Any fee paid to the appraiser for the completion of the appraisal service.

458.38(2)(b) (b) Any fee charged to the client for the licensed appraisal management company’s appraisal management services.

458.38(3) (3) A licensed appraisal management company may not do any of the following:

458.38(3)(a) (a) Fail, except in cases of breach of contract or for other good cause, to make payment to an appraiser for the completion of an appraisal service within 30 days after the date on which the appraisal management company receives the completed appraisal service. An appraisal service is complete under this paragraph when the scope of work has been completed and the work product has been delivered to the client with any required certification or other signed document.

458.38(3)(b) (b) Include any fee for appraisal management services performed by the licensed appraisal management company in the amount the company reports as charges for the actual completion of an appraisal service by an appraiser.

458.38(3)(c) (c) Prohibit an appraiser from showing in an appraisal report or other document the fee that the licensed appraisal management company paid to the appraiser for the appraisal service.

458.38(3)(d) (d) Require an appraiser to state or affirm that any fees the licensed appraisal management company paid to the appraiser were reasonable and customary.

458.38 History History: 2017 a. 113.

458.39 458.39 Record keeping.

458.39(1) (1) A licensed appraisal management company shall maintain all of the following records for at least 5 years after the record is generated or 2 years after final disposition of any court proceeding concerning an appraisal service, whichever is later:

458.39(1)(a) (a) A written record of each request for an appraisal service and appraisal management services the licensed appraisal management company receives.

458.39(1)(b) (b) A written record of the identity of each appraiser who performs an appraisal service for the licensed appraisal management company.

458.39(1)(c) (c) A written record of all substantive communications between a licensed appraisal management company and an appraiser concerning an appraisal service or an independent appraiser’s inclusion on an appraiser panel of the appraisal management company.

458.39(2) (2) The department may audit the records of a licensed appraisal management company at any time to ensure compliance with this subchapter, rules promulgated under this subchapter, or the Uniform Standards of Professional Appraisal Practice described under s. 458.24.

458.39 History History: 2017 a. 113.

458.41 458.41 Appraiser independence.

458.41(1) (1) A licensed appraisal management company shall ensure that appraisals that are conducted for the company are conducted independently and free from inappropriate influence or coercion consistent with this section and 15 USC 1639e and rules promulgated under 15 USC 1639e.

458.41(2) (2) No licensed appraisal management company or employee, controlling individual, or other agent of a licensed appraisal management company may inappropriately influence or coerce, or attempt to inappropriately influence or coerce, an appraiser conducting an appraisal service, contrary to this section or to 15 USC 1639e or rules promulgated under 15 USC 1639e, including by doing any of the following:

458.41(2)(a) (a) Withholding, or threatening to withhold, timely payment for an appraisal service.

458.41(2)(b) (b) Withholding, or threatening to withhold, future business from an independent appraiser, or demoting or terminating, or threatening to demote or terminate, an appraiser.

458.41(2)(c) (c) Expressly or impliedly promising future business, promotions, or increased compensation for an appraiser.

458.41(2)(d) (d) Conditioning the assignment of an appraisal service or the payment of a fee or other compensation for an appraisal service on the opinion, conclusion, or valuation to be reached, or on a preliminary estimate or opinion requested from an appraiser.

458.41(2)(e) (e) Requesting an appraiser to provide an estimated, predetermined, or desired valuation in an appraisal report, or to provide estimated values of comparable sales prior to the appraiser’s completion of an appraisal service.

458.41(2)(f) (f) Providing to an appraiser an anticipated, estimated, encouraged, or desired value for a subject property or a proposed or target amount to be loaned to the borrower, except that a licensed appraisal management company may provide to an appraiser a copy of a sales contract for purchase.

458.41(2)(g) (g) Providing financial or nonfinancial benefits to an appraiser or to any person connected with the appraiser.

458.41(2)(h) (h) Removing or threatening to remove an independent appraiser from an appraiser panel.

458.41(2)(i) (i) Obtaining, using, or paying for a 2nd or subsequent appraisal or ordering an automated valuation model in connection with a mortgage financing transaction, unless there is a reasonable basis to believe that the initial appraisal was flawed and the basis is clearly noted in the loan file, or unless the appraisal or automated valuation model is performed as a bona fide prefunding or postfunding appraisal review or quality control process.

458.41(2)(j) (j) Requiring that an appraiser indemnify or hold harmless the appraisal management company for liability for any damages, losses, or claims arising out of appraisal management services provided to a client by the appraisal management company.

458.41(2)(k) (k) Any other act or practice that impairs, or attempts to impair, an appraiser’s independence, objectivity, or impartiality.

458.41(3) (3) No licensed appraisal management company may do any of the following:

458.41(3)(a) (a) Change an appraisal report or other results of an appraisal service submitted by an appraiser to the licensed appraisal management company.

458.41(3)(b) (b) Require an appraiser to change an appraisal report or other results of an appraisal service.

458.41(3)(c) (c) Require an appraiser to complete an appraisal service if the appraiser, in the appraiser’s professional judgment, determines that he or she does not have necessary expertise concerning the geographic area of the subject property, if the appraiser notifies the licensed appraisal management company in writing of that determination.

458.41(3)(d) (d) Require an appraiser to prepare an appraisal report or complete an appraisal service under a time frame that the appraiser, in the appraiser’s professional judgment, determines will not allow the appraiser to satisfy the appraiser’s relevant legal and professional obligations, if the appraiser notifies the licensed appraisal management company in writing of that determination.

458.41(3)(e) (e) Interfere in any way with an appraiser’s ability to obtain information that is relevant to an appraisal service.

458.41(3)(f) (f) Require an appraiser to engage in any conduct that does not comply with the Uniform Standards of Professional Appraisal Practice described under s. 458.24 or with lawful conditions required by the client.

458.41(4) (4) This section does not prohibit a licensed appraisal management company from asking an appraiser to consider additional appropriate property information, including additional comparable sales, to make or support an appraisal; provide further detail, substantiation, or explanation for the independent appraiser’s value conclusion; or correct errors in the appraisal report.

458.41(5) (5) This section does not prohibit the exchange of information or other communication between an appraiser and any person if the exchange of information or other communication does not inappropriately influence or coerce, or attempt to inappropriately influence or coerce, the appraiser contrary to this section or to 15 USC 1639e or rules promulgated under 15 USC 1639e.

458.41 History History: 2017 a. 113.

458.42 458.42 License number.

458.42(1) (1) The department shall assign a unique license number to each licensed appraisal management company. The license number shall appear on each certificate of licensure the department issues under s. 458.33 (2).

458.42(2) (2) The department shall publish a list of all current licensed appraisal management companies and their license numbers.

458.42(3) (3) A licensed appraisal management company shall display its license number on all print or electronic advertising, on each solicitation for engagement on the appraisal management company’s appraiser panel, and on each engagement letter used in connection with an appraisal assignment in this state.

458.42 History History: 2017 a. 113.

458.43 458.43 Department review of decisions concerning appraisers.

458.43(1) (1) Except within the first 60 days after a licensed appraisal management company adds an independent appraiser to the licensed appraisal management company’s appraiser panel, a licensed appraisal management company may not remove an independent appraiser from its appraiser panel unless the licensed appraisal management company does the following:

458.43(1)(a) (a) If the independent appraiser is not being removed under par. (b), notifies the independent appraiser in writing of the reasons the independent appraiser is being removed from the appraiser panel.

458.43(1)(b) (b) If the independent appraiser is being removed from the appraiser panel for conduct alleged to be any of the following, notifies the independent appraiser of the alleged conduct and provides the independent appraiser with an opportunity to respond before removal:

458.43(1)(b)1. 1. A violation of this subchapter or rules promulgated under this subchapter, other state or federal law, or the Uniform Standards of Professional Appraisal Practice described under s. 458.24.

458.43(1)(b)2. 2. Other good cause.

458.43(2) (2) 

458.43(2)(a) (a) An independent appraiser who is removed from an appraiser panel under sub. (1) (b) may petition the department for review of that removal decision. The department’s review of a removal decision under this paragraph is limited to determining whether the licensed appraisal management company has complied with sub. (1) and whether the independent appraiser engaged in conduct described in sub. (1) (b) 1. or 2.

458.43(2)(b) (b) If an independent appraiser petitions the department for review under par. (a), the department shall complete its review within 180 days after the department receives the petition.

458.43(2)(c) (c) If, after opportunity for hearing, the department determines that a licensed appraisal management company did not comply with sub. (1) or that an independent appraiser did not engage in the conduct described in the notice under sub. (1) (b) 1. or 2., the department shall order the licensed appraisal management company to reinstate the independent appraiser on the appraiser panel. The licensed appraisal management company may not refuse to assign appraisal services to the appraiser or otherwise penalize or retaliate against the appraiser.

458.43 History History: 2017 a. 113.

458.44 458.44 Disciplinary proceedings and actions.

458.44(1) (1) The department shall, upon motion of the board or upon its own motion, or upon a complaint filed with the department or the board, conduct investigations concerning the conduct of a licensed appraisal management company or an applicant for a license under s. 458.33.

458.44(2) (2) The department shall present the findings of any investigation under sub. (1) to the board. The department shall, upon motion of the board or upon its own motion, commence disciplinary proceedings on any matter under investigation concerning a licensed appraisal management company or applicant for a license under s. 458.33.

458.44(3) (3) Disciplinary proceedings shall be conducted by the board according to the rules promulgated under s. 440.03 (1). The department may deny a license, and the board may conditionally or unconditionally limit, suspend, or revoke a license issued under s. 458.33 (2) or reprimand a licensed appraisal management company if the department or board determines that the applicant or licensed appraisal management company, or a controlling individual of the applicant or licensed appraisal management company, has done any of the following:

458.44(3)(a) (a) Made a material misstatement in an application for a license or renewal of a license under s. 458.33 or in any other information provided to the board or department.

458.44(3)(b) (b) Engaged in unprofessional or unethical conduct, as determined by the department by rule.

458.44(3)(c) (c) Engaged in conduct in the course of conducting business as an appraisal management company that evidences a lack of knowledge or ability to apply professional principles or skills.

458.44(3)(d) (d) Had a license or other credential to act as an appraiser in any state denied, refused, canceled, revoked, or surrendered in lieu of a revocation, unless that license or other credential was later granted or reinstated.

458.44(3)(e) (e) Advertised in a manner that is false, deceptive, or misleading.

458.44(3)(f) (f) Advertised, practiced, or attempted to practice as an appraisal management company under another person’s name.

458.44(3)(g) (g) Subject to ss. 111.321, 111.322, and 111.34, provided appraisal management services while the individual’s ability to practice was impaired by alcohol or other drugs.

458.44(3)(h) (h) Provided appraisal services or appraisal management services where the value of real estate provided in the appraisal report was based on the racial composition of the area in which the real estate is located.

458.44(3)(i) (i) Violated this subchapter or any rule promulgated under this subchapter.

458.44(4) (4) In addition to or in lieu of a reprimand or denial, limitation, suspension, or revocation of a license under s. 458.33, the board may assess against a licensed appraisal management company or an applicant for a license under s. 458.33 a forfeiture of not less than $100 nor more than $10,000 for each violation enumerated under sub. (3).

458.44(5) (5) The department may seek judicial review under ch. 227 of any final decision of the board. The department shall be represented in any review proceedings by an attorney within the department. Upon request of the board, the attorney general may represent the board.

458.44(6) (6) The department shall report any violations of applicable appraisal-related laws, regulations, or orders by an appraisal management company and disciplinary and enforcement actions against an appraisal management company to the appraisal subcommittee.

458.44 History History: 2017 a. 113.

458.45 458.45 Penalties. Any person who violates this subchapter or any rule promulgated under this subchapter may be fined not more than $10,000.

458.45 History History: 2017 a. 113.

458.46 458.46 Rules. The department shall promulgate rules to implement this subchapter, including, to the extent the department, in consultation with the board, deems necessary, rules establishing standards of professional conduct for licensed appraisal management companies exempt from licensure under s. 458.34 (2).

458.46 History History: 2017 a. 113.

458.48 458.48 Nonapplicability. Notwithstanding ss. 458.32 to 458.46, ss. 458.32 to 458.46 do not apply if federal law is amended or repealed so as to allow appraisal management companies that are not federally regulated appraisal management companies to perform services related to a federally related transaction without being required to register with and be subject to supervision by a state appraiser certifying and licensing agency as required under 12 USC 3353.

458.48 History History: 2017 a. 113.