(a) The Department shall have the authority to adopt rules that are reasonably necessary to establish an appraisal management company licensing program and implement, administer, and enforce the provisions set forth in this chapter.
(b) The Department shall charge appraisal management companies operating in the District reasonable fees to administer this chapter. The Department's fees shall be established by rule.
(c) The Department shall perform the following functions:
(1) Review and approve or deny an appraisal management company's application for initial registration in the District;
(2) Periodically review and renew or review and deny an appraisal management company's registration;
(3) Examine the books and records of an appraisal management company operating in the District and require the appraisal management company to submit reports, information, and documents;
(4) Verify that the appraisers on the appraiser panel of an appraisal management company operating in the District hold valid District certifications or licenses, as applicable;
(5) Conduct investigations of appraisal management companies operating in the District to assess potential violations of applicable appraisal-related laws, regulations, or orders; and
(6) Report an appraisal management company's violation of applicable appraisal- related laws, regulations, or orders, as well as disciplinary and enforcement actions and other relevant information about the operations of an appraisal management company operating in the District.
(d) The Department shall impose requirements on appraisal management companies operating in the District that are not owned and controlled by an insured depository institution and not regulated by a federal financial institutions regulatory agency to:
(1) Register with and be subject to supervision by the Department;
(2) Engage only state-certified or state-licensed appraisers for federally related transactions in conformity with any federally regulated transaction regulations;
(3) Establish and comply with processes and controls reasonably designed to ensure that the appraisal management company, in engaging an appraiser, selects an appraiser who is independent of the transaction and who has the requisite education, expertise, and experience necessary to competently complete the appraisal assignment for the particular market and property type;
(4) Direct appraisers to perform assignments in accordance with Uniform Standards of Professional Appraisal Practice; and
(5) Establish and comply with processes and controls reasonably designed to ensure that the appraisal management company conducts its appraisal management services in accordance with the requirements of section 129E(a)-(i) of the Truth in Lending Act, approved July 21, 2010 (124 Stat. 2187; 15 U.S.C. § 1639e(a)-(i)), and regulations thereunder.
(e) The Department shall maintain a list of the appraisal management companies that are registered in the District.
(f) The Department shall issue a unique registration number to each appraisal management company that is registered in the District pursuant to regulations or guidance promulgated by the Department.
(g) The Department shall require an appraisal management company registered in the District to place its registration number on engagement documents utilized by the appraisal management company to procure appraisal services in the District.
(Mar. 16, 2021, D.C. Law 23-206, § 102, 68 DCR 00057.)
Emergency LegislationFor temporary (90 days) creation of this section, see § 102 of Appraisal Management Company Regulation Emergency Act of 2019 (D.C. Act 23-110, July 31, 2019, 66 DCR 178).
Temporary LegislationFor temporary (225 days) creation of this section, see § 102 of Appraisal Management Company Regulation Temporary Act of 2020 (D.C. Law 23-140, Oct. 20, 2020, 67 DCR 9891).