Chapter 458

458.22 Cross-reference Cross-reference: See also s. SPS 86.03, Wis. adm. code.

458.24 458.24 Code of professional conduct. The department may promulgate rules establishing standards for appraisal practice. In promulgating rules under this section, the department shall consider including as part or all of the standards part or all of the “Uniform Standards of Professional Appraisal Practice” established by the appraisal standards board of the appraisal foundation. The department shall periodically review the “Uniform Standards of Professional Appraisal Practice” and, if appropriate, revise the rules promulgated under this section to reflect revisions to the “Uniform Standards of Professional Appraisal Practice.”

458.24 History History: 1989 a. 340; 1991 a. 39, 78; 2021 a. 238 s. 45.

458.24 Cross-reference Cross-reference: See also ch. SPS 86, Wis. adm. code.

458.26 458.26 Disciplinary proceedings and actions.

458.26(1) (1) The department shall, upon motion of the board or upon its own determination, conduct investigations in regard to the action of any appraiser.

458.26(2) (2) The department shall present the findings of any investigation of an appraiser or an applicant for a certificate under this subchapter to the board for its consideration. The department shall, upon motion of the board, and may, upon its own determination, commence disciplinary proceedings on any matter under investigation concerning a certified appraiser, licensed appraiser or applicant.

458.26(3) (3) Disciplinary proceedings shall be conducted by the board according to the rules promulgated under s. 440.03 (1). The department may deny any certificate under this subchapter, and the board may limit, suspend or revoke any certificate under this subchapter or reprimand or impose additional continuing education requirements on the holder of a certificate under this subchapter, if the department or board finds that the applicant for or holder of the certificate has done any of the following:

458.26(3)(a) (a) Made a material misstatement in an application for the certificate or renewal of the certificate, or in any other information furnished to the board or department.

458.26(3)(b) (b) Engaged in unprofessional or unethical conduct in violation of rules promulgated under s. 458.24.

458.26(3)(c) (c) Engaged in conduct while practicing as an appraiser which evidences a lack of knowledge or ability to apply professional principles or skills.

458.26(3)(d) (d) Subject to ss. 111.321, 111.322 and 111.335, been arrested or convicted of an offense the circumstances of which substantially relate to the practice of an appraiser.

458.26(3)(e) (e) Advertised in a manner that is false, deceptive or misleading.

458.26(3)(f) (f) Advertised, practiced or attempted to practice as an appraiser under another’s name.

458.26(3)(g) (g) Subject to ss. 111.321, 111.322 and 111.34, practiced as an appraiser while the individual’s ability to practice was impaired by alcohol or other drugs.

458.26(3)(h) (h) Based the value of real estate in an appraisal report on the racial composition of the area in which the real estate is located.

458.26(3)(i) (i) Violated this subchapter or any rule promulgated under this subchapter.

458.26(4) (4) In addition to or in lieu of a reprimand or denial, limitation, suspension or revocation of a certificate under sub. (3), the board may assess against a certified appraiser, licensed appraiser or applicant for a certificate under this subchapter a forfeiture of not less than $100 nor more than $1,000 for each violation enumerated under sub. (3).

458.26(5) (5) The department may seek judicial review under ch. 227 of any final decision of the board. The department shall be represented in such review proceedings by an attorney within the department. Upon request of the board, the attorney general may represent the board.

458.26 History History: 1989 a. 340; 1991 a. 39, 78; 1993 a. 3; 2017 a. 113.

458.26 Cross-reference Cross-reference: See also ch. SPS 86, Wis. adm. code.

458.30 458.30 Penalties. Any person who violates this subchapter or any rule promulgated under this subchapter may be fined not more than $1,000 or imprisoned for not more than 6 months or both.

458.30 History History: 1989 a. 340; 2017 a. 113.

subch. III of ch. 458 SUBCHAPTER III

REAL ESTATE APPRAISAL
MANAGEMENT COMPANIES

458.31 458.31 Definitions. In this subchapter:

458.31(1) (1) “Appraisal management company” has the meaning given in 12 CFR 34.211 (c).

458.31(2) (2) “Appraisal management services” has the meaning given in 12 CFR 34.211 (d).

458.31(3) (3) 

458.31(3)(a) (a) Except as provided in par. (b), “appraisal review” means the process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal assignment or appraisal review assignment related to the appraiser’s data collection, analysis, opinions, conclusions, estimate of value, or compliance with the Uniform Standards of Professional Appraisal Practice described in s. 458.24.

458.31(3)(b) (b) “Appraisal review” does not include any of the following:

458.31(3)(b)1. 1. A general examination for grammatical, typographical, mathematical, or other similar errors.

458.31(3)(b)2. 2. A general examination for completeness, including regulatory or client requirements as specified in the agreement process, that does not communicate an opinion of value.

458.31(4) (4) “Appraiser panel” has the meaning given in 12 CFR 34.211 (e).

458.31(5) (5) “Client” means a person that contracts with an appraisal management company for the performance of appraisal management services for the person.

458.31(6) (6) “Controlling individual” means any of the following:

458.31(6)(a) (a) An owner, officer, or director of an appraisal management company.

458.31(6)(b) (b) An individual who is authorized by an appraisal management company to do all of the following:

458.31(6)(b)1. 1. Contract with a client.

458.31(6)(b)2. 2. Contract with an independent appraiser to perform an appraisal service.

458.31(6)(c) (c) An individual who has, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company.

458.31(7) (7) “Federally regulated appraisal management company” has the meaning given in 12 CFR 34.211 (k).

458.31(8) (8) “Independent appraiser” means an appraiser who performs an appraisal service on an independent contractor basis.

458.31(9) (9) “Licensed appraisal management company” means an appraisal management company licensed under s. 458.33.

458.31(10) (10) “Person” has the meaning given in 12 CFR 34.211 (m).

458.31 History History: 2017 a. 113.

458.32 458.32 Prohibited conduct. Except as provided under s. 458.34, no appraisal management company may do any of the following unless the company is a licensed appraisal management company:

458.32(1) (1) Perform appraisal management services for compensation.

458.32(2) (2) Advertise that the person is an appraisal management company; use the title “licensed appraisal management company,” “appraisal management company,” or other similar title; or otherwise hold itself out as an appraisal management company.

458.32 History History: 2017 a. 113.

458.33 458.33 Licensure.

458.33(1) (1) Application. A person applying for a license under sub. (2) shall submit an application to the department on a form prescribed by the department. The application shall include all of the following:

458.33(1)(a) (a) The applicant’s name, address, and telephone number.

458.33(1)(b) (b) If the applicant is not a business domiciled in this state, the name, address, and telephone number of the applicant’s agent for service of process in this state.

458.33(1)(c) (c) The name, address, and telephone number of each person that owns more than 10 percent of the applicant.

458.33(1)(d) (d) The name, address, and telephone number of the applicant’s designated controlling individual under s. 458.36.

458.33(1)(e) (e) A statement of the applicant in a form prescribed by the department that certifies all of the following:

458.33(1)(e)1. 1. That the applicant has in place a system to verify that each independent appraiser on the applicant’s appraiser panel and any other appraiser that may perform an appraisal service for the applicant is a certified appraiser or licensed appraiser.

458.33(1)(e)2. 2. That the applicant requires all appraisers performing appraisal services for the applicant to perform appraisal services in accordance with the Uniform Standards of Professional Appraisal Practice described under s. 458.24.

458.33(1)(e)3. 3. That the applicant has in place a system to verify that all appraisal services performed for the applicant are conducted independently and free from inappropriate influence or coercion under s. 458.41 and under 15 USC 1639e and rules promulgated under 15 USC 1639e.

458.33(1)(e)4. 4. That the applicant maintains a detailed record of each request for an appraisal service that it receives, including the identity of the appraiser that performs the appraisal service.

458.33(1)(e)5. 5. That the applicant satisfies s. 458.35 (2).

458.33(1)(f) (f) The information and authorizations necessary to conduct a background investigation for all of the following:

458.33(1)(f)1. 1. Each person identified in par. (c).

458.33(1)(f)2. 2. The applicant’s controlling individual designated under s. 458.36.

458.33(2) (2) Appraisal management company license. The department shall, after an investigation, grant and issue an appraisal management company license to an appraisal management company that does all of the following:

458.33(2)(a) (a) Complies with sub. (1).

458.33(2)(b) (b) Pays the initial credential fee determined by the department under s. 440.03 (9) (a), but not to exceed $4,000.

458.33(2)(c) (c) Meets to the satisfaction of the department any other requirements for licensure under this subchapter and under rules promulgated by the department. The department shall promulgate rules under this paragraph that require an applicant for a license under this subsection to demonstrate that the applicant is qualified to competently perform appraisal management services in compliance with all applicable state and federal laws.

458.33(3) (3) Investigation. The department shall conduct a background investigation that satisfies 12 CFR 34.214 (b) (2) on each person specified under sub. (1) (f) 1. and 2.

458.33(4) (4) Denial of license or renewal. The department may not issue or renew an appraisal management company license if any of the following applies to any person that owns more than 10 percent of the appraisal management company:

458.33(4)(a) (a) The person is determined by the department not to have good moral character.

458.33(4)(b) (b) The person fails to submit to a background investigation under sub. (3).

458.33(5) (5) Renewals. A licensed appraisal management company shall submit a renewal application, along with the applicable renewal fee determined by the department under s. 440.03 (9) (a), but not to exceed $2,000, to the department on a form prescribed by the department by the applicable renewal date specified under s. 440.08 (2) (a). A renewal under this subsection is subject to sub. (4).

458.33 History History: 2017 a. 113.

458.34 458.34 Exemptions.

458.34(1) (1) A license under s. 458.33 (2) is not required for any of the following:

458.34(1)(a) (a) An appraiser that, in the ordinary course of business, contracts with an independent appraiser for the performance of an appraisal if upon completion of the appraisal the appraiser co-signs the appraisal report.

458.34(1)(b) (b) A federally regulated appraisal management company.

458.34(1)(c) (c) A department or unit within a financial institution that is subject to direct regulation by an agency of the United States government that is a member of the federal financial institutions examination council or its successor, or to regulation by an agency of this state, and receives a request for the performance of an appraisal from one employee of the financial institution, and another employee of the same financial institution assigns the request for the appraisal to an appraiser that is an independent contractor to the institution. An appraisal management company that is a wholly owned subsidiary of a financial institution shall not be considered a “department or unit within a financial institution” for purposes of this paragraph.

458.34(1)(d) (d) An appraisal management company that does not contract with independent appraisers for the performance of appraisal services.

458.34(2) (2) An appraisal management company that is exempt from licensure under sub. (1) (b) may advertise as an appraisal management company but may not hold itself out as a licensed appraisal management company.

458.34(3) (3) An appraisal management company that is exempt from licensure under sub. (1) (b) shall be considered a licensed appraisal management company for purposes of, and shall comply with the provisions of, ss. 458.35, 458.365, 458.37, 458.38, 458.39, 458.41, 458.43, and 458.44.

458.34 History History: 2017 a. 113.

458.35 458.35 Limitations.

458.35(1) (1) No licensed appraisal management company may do any of the following:

458.35(1)(a) (a) Contract with an appraiser for the performance of an appraisal service unless the appraiser is a certified appraiser or licensed appraiser.

458.35(1)(b) (b) Employ any person in a position in which the person has the responsibility to request appraisal services from an appraiser or to review the results of completed appraisal services if the person has had a license or other credential to act as an appraiser in any state denied, canceled, revoked, or surrendered in lieu of revocation unless that license or other credential was later granted or reinstated.

458.35(1)(c) (c) Contract with an appraiser for the provision of appraisal services if the appraiser has had a license or other credential to act as an appraiser in any state denied, canceled, revoked, or surrendered in lieu of revocation unless the license or other credential was later granted or reinstated.