PocketLaw | Tennessee Code | Part Definitions

Part Definitions

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For purposes of this part, unless the context otherwise requires:

“Affiliate” has the meaning provided in 12 U.S.C. § 1841;
“AMC National Registry” means the registry of state-registered AMCs and federally regulated AMCs maintained by the appraisal subcommittee;
“Appraisal” means the act or process of developing an opinion of value of identified real estate. That opinion of value may be numerically expressed either as a specific amount, as a range of numbers, or as a relationship to a previous value opinion or other numerical benchmark. “Appraisal” does not include any opinion of value referred to as evaluations under § 62-39-104;
“Appraisal management company” or “AMC”:
1. Means a person that:
  1. Provides appraisal management services to creditors or to secondary mortgage market participants, including affiliates;
  2. Provides such services in connection with valuing a consumer's principal dwelling as security for a consumer credit transaction or incorporating such transactions into securitizations; and
  3. Within a given twelve-month period, as defined in 12 C.F.R. 1222.22(d), oversees an appraiser panel of more than fifteen (15) state-certified or state-licensed appraisers in a state or twenty-five (25) or more state-certified or state-licensed appraisers in two (2) or more states, as described in 12 C.F.R. 1222.22;
2. Does not include a department or division of an entity that provides appraisal management services only to that entity;
“Appraisal management services” means one (1) or more of the following:
1. Recruiting, selecting, and retaining appraisers;
2. Contracting with state-certified or state-licensed appraisers to perform appraisal assignments;
3. Managing the process of having an appraisal performed, including providing administrative services such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and secondary mortgage market participants, collecting fees from creditors and secondary mortgage market participants for services provided, and paying appraisers for services performed; and
4. Reviewing and verifying the work of appraisers;
“Appraisal subcommittee” or “ASC” means the Appraisal Subcommittee of the Federal Financial Institutions Examination Council;
“Appraiser” means an individual who holds a license under part 1 of this chapter;
“Appraiser panel” means a network, list, or roster of appraisers approved by an AMC to perform appraisals as independent contractors for the AMC. Appraisers on an AMC's appraiser panel under this part include both appraisers accepted by the AMC for consideration for future appraisal assignments in covered transactions or for secondary mortgage market participants in connection with covered transactions and appraisers engaged by the AMC to perform one (1) or more appraisals in covered transactions or for secondary mortgage market participants in connection with covered transactions. An appraiser is an independent contractor for purposes of this subdivision (8) if the appraiser is treated as an independent contractor by the AMC for purposes of federal income taxation;
“Commission” means the real estate appraiser commission created by § 62-39-201;
“Consumer credit” means credit offered or extended to a consumer primarily for personal, family, or household purposes;
“Controlling person” means:
1. An owner, officer or director of a corporation, partnership, or other business entity seeking to offer appraisal management services in this state;
2. An individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with other persons for the performance of appraisal management services and has the authority to enter into agreements with appraisers for the performance of appraisals; or
3. 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;
“Covered transaction” means any consumer credit transaction secured by the consumer's principal dwelling;
1. “Creditor” means a person who regularly extends consumer credit that is subject to a finance charge or is payable by written agreement in more than four (4) installments, not including any down payment, and to whom the obligation is initially payable, either on the face of the note or contract, or by agreement when there is no note or contract;
2. A person regularly extends consumer credit if the person either:
  1. Extended credit, other than credit subject to the requirements of 12 C.F.R. 1026.32, more than five (5) times for transactions secured by a dwelling in the preceding calendar year or, if a person did not meet these numerical standards in the preceding calendar year, in the current calendar year; or
  2. In any twelve-month period, originates more than one (1) credit extension that is subject to the requirements of 12 C.F.R. 1026.32 or originates one (1) or more such credit extensions through a mortgage broker;
1. “Dwelling” means a residential structure that contains one to four (1-4) units, whether or not that structure is attached to real property. “Dwelling” includes individual condominium units, cooperative units, mobile homes, and trailers, if used as a residence;
2. A consumer may have only one (1) principal dwelling at a time. A vacation or other second home is not a principal dwelling. However, if a consumer buys or builds a new dwelling that will become the consumer's principal dwelling within one (1) year or upon the completion of construction, the new dwelling is considered the principal dwelling for purposes of this section;
“Federally regulated AMC” means an AMC that is owned and controlled by an insured depository institution, as defined in 12 U.S.C. § 1813, and that is regulated by the office of the comptroller of the currency, the board of governors of the federal reserve system, or the federal deposit insurance corporation;
“Person” means a natural person or an entity, including a corporation, limited liability company, partnership, sole proprietorship, association, cooperative, estate, trust, or government unit;
“Secondary mortgage market participant” means a guarantor or insurer of mortgage-backed securities, or an underwriter or issuer of mortgage-backed securities, and only includes an individual investor in a mortgage-backed security if that investor also serves in the capacity of guarantor, insurer, underwriter, or issuer for the mortgage-backed security;
“States” means the fifty (50) states, the District of Columbia and the territories of Guam, Mariana Islands, Puerto Rico, and the U.S. Virgin Islands; and
“Uniform Standards of Professional Appraisal Practice” or “USPAP” means the appraisal standards promulgated by the Appraisal Standards Board of the Appraisal Foundation.

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