§ 5-20.9-2. Definitions.
(a) All definitions set forth in § 5-20.7-2 are herein incorporated by reference.
(b) As used in this chapter, the following terms shall have the following meanings unless the context clearly specifies otherwise:
(1) “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.
(i) A “valuation” is an estimate of the value of real estate or real property.
(ii) An “analysis” is a study of real estate or real property other than estimating value.
(2) “Appraisal management company” means:
(i) In connection with valuing properties collateralizing mortgage loans or mortgages incorporated into a securitization, any external third party authorized either by a creditor of a consumer credit transaction secured by a consumer’s principal dwelling, or by an underwriter of or other principal in the secondary mortgage markets, that oversees a network or panel of more than fifteen (15) certified or licensed appraisers in Rhode Island or twenty-five (25) or more nationally, excluding those appraisers who do not provide appraisal services for covered transactions, within a given year to:
(A) Recruit, select, and retain appraisers;
(B) Contract with licensed and certified appraisers to perform appraisal assignments;
(C) Manage the process of having an appraisal performed, including providing administrative duties such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for services provided, and reimbursing appraisers for services performed; or
(D) Review and verify the work of appraisers.
(ii) An appraisal management company does not include any entity that employs real estate appraisers as employees for the performance of real estate appraisal services in a manner consistent with federal regulations promulgated in accordance with § 1473 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
(3) “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 related to the appraiser’s data collection, analysis, opinions, conclusions, opinion of value, or compliance with the Uniform Standards of Professional Appraisal Practice; provided however, that “appraisal review” shall not include:
(i) A general examination for grammatical, typographical, or similar errors; or
(ii) A general examination for completeness, including regulatory or client requirements as specified in an agreement that does not communicate an opinion of value.
(4) “Appraiser panel” means a group of independent fee appraisers that have been selected by an appraisal management company to perform residential real estate appraisal services for the appraisal management company.
(5) “Client” means any person or entity who or that contracts with, or otherwise enters into an agreement with, an appraisal management company for the management of residential real estate appraisal services.
(6) “Controlling person” means:
(i) An owner, officer, or director of a corporation, partnership, or other business entity seeking to offer appraisal management services in this state; or
(ii) An individual employed, appointed, or authorized by an appraisal management company who has the authority to enter into a contractual relationship with clients for the performance of appraisal management services and has the authority to enter into agreements with independent appraisers for the performance of residential real estate appraisal services; or
(iii) 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.
(7) “Department” means the department of business regulation.
(8) “Director” means the director of the department of business regulation.
(9) “Independent fee appraiser” means:
(i) A natural person who is a state-licensed or state-certified appraiser and receives a fee for performing an appraisal, but who is not an employee of the person engaging the appraiser; or
(ii) An organization that, in the ordinary course of business, employs state-licensed or state-certified appraisers to perform appraisals, receives a fee for performing the appraisals, and is not subject to § 1124 of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“FIRREA”), 12 U.S.C. § 3353.
(10) “Real estate appraisal services” means the practice of developing an appraisal by a licensed or certified appraiser in conformance with the USPAP.
(11) “USPAP” mean the Uniform Standards for Professional Appraisal Practice published by the Appraisal Foundation.
History of Section.
P.L. 2017, ch. 14, § 1; P.L. 2017, ch. 26, § 1.