(a)
(1) Before acting or offering to act as an appraisal management company in this state, a person shall make written application on the forms provided on the official website of the Arkansas Appraiser Licensing and Certification Board to the board for registration accompanied by the fee and bond established by the board.
(2) The same requirements for registration shall apply to the initial application and each subsequent application for renewal.
(b) The initial application or application for renewal shall include without limitation the following information:
(1) The name, business address, and telephone contact information of the person seeking registration;
(2)
(A) If the applicant is a domestic organization, the information required by § 4-20-105(a) to designate an agent for service of process; or
(B)
(i) If the applicant is a foreign organization, documentation that the foreign organization is authorized to transact business in this state and has appointed an agent for service of process by submitting a copy of:
(a) The company's filing with the Secretary of State appointing an agent for service of process under § 4-20-112; and
(b) A certificate of authority issued by the Secretary of State.
(ii) A foreign organization's failure to comply with subdivision (b)(2)(B)(i) of this section may result in the rejection of the application;
(3)
(A) The name, address, and contact information of any person that owns ten percent (10%) or more of the appraisal management company.
(B) Any person owning more than ten percent (10%) of an appraisal management company in this state shall submit to a state criminal background check and a national fingerprint-based criminal background check performed by the Federal Bureau of Investigation in compliance with federal law and regulations;
(4) The name, mailing address, and contact information of a controlling person or a managing principal;
(5)
(A) An appraisal management company is not eligible to be registered in this state if the appraisal management company, in whole or in part, directly or indirectly, is owned by a person who has had an appraiser license or certification refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any state for a substantive cause as determined by the board.
(B) An appraisal management company is not barred by subdivision (b)(5)(A) of this section if the license or certification of the appraiser with an ownership interest was not revoked for a substantive cause and has been reinstated by the state or states in which the appraiser was licensed or certified;
(6) A certification that the person:
(A) Has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company holds a license in good standing in this state under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
(B) Has a system in place to review the work of all independent appraisers that are performing appraisal services for the appraisal management company on a periodic basis to ensure that the appraisal services are being conducted in accordance with the minimum reporting standards under § 17-14-202(b);
(C) Maintains a detailed record of each request for appraisal services that it receives and the independent appraiser that performs the appraisal services for the appraisal management company; and
(D) Has a system in place to verify that:
(i) Appraisals are conducted independently and free from inappropriate influence and coercion under the appraisal independence standards established under 15 U.S.C. § 1639e, as existing on January 1, 2019; and
(ii) The appraisal management company establishes and complies with processes and controls reasonably designed to ensure that the appraisal management company:
(a) When engaging an appraiser, selects an appraiser who is independent of the transaction and has the requisite education, expertise, and experience necessary to competently complete the appraisal assignment for the particular market and property; and
(b) Conducts its appraisal management services in accordance with the requirements of 15 U.S.C. § 1639e, as existing on January 1, 2019, and federal regulations, as existing on January 1, 2019;
(7) Requires appraisers completing appraisals at its request to comply with the Uniform Standards of Professional Appraisal Practice;
(8) Has a system in place to verify that only licensed or certified appraisers are used for federally related transactions; and
(9) Any other information required by the board.
(c) The board shall issue an initial or a renewal certificate of registration to an applicant authorizing the applicant to act or offer to act as an appraisal management company in this state upon:
(1) Receipt of a properly completed application;
(2) Payment of the required fee;
(3) Posting of a bond; and
(4)
(A) Determination by the board that the activities of the applicant will be directed and conducted by persons of good moral character.
(B) The determination of the board under subdivision (c)(4)(A) of this section shall consider the results of all fingerprint-based criminal history reports.
(d)
(1) If the board finds that there is substantial reason to deny the application for registration, the board shall notify the applicant that the application has been denied and shall afford the applicant an opportunity for a hearing before the board to show cause why the application should not be denied.
(2) All proceedings concerning the denial of a certificate of registration shall be governed by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
(e) The acceptance by the board of an application for registration does not constitute the approval of its contents or waive the authority of the board to take disciplinary action under this subchapter.