Checkout our iOS App for a better way to browser and research.
(1) An appraisal management company required to be registered under this chapter and a controlling person, employee, or agent of the appraisal management company may not:
(a) engage in an act of coercion, extortion, intimidation, or bribery for any purpose related to an appraisal;
(b) compensate an appraiser in a manner that the person should reasonably know would result in the appraiser not conducting a real estate appraisal activity in a manner consistent with applicable appraisal standards;
(c) engage in the business of an appraisal management company under an assumed or fictitious name not properly registered in the state;
(d) accept a contingent fee for performing an appraisal management service if the fee is contingent on:
(i) the appraisal report having a predetermined analysis, opinion, or conclusion;
(ii) the analysis, opinion, conclusion, or valuation reached in an appraisal report; or
(iii) the consequences resulting from the appraisal assignment;
(e) require an appraiser to indemnify the appraisal management company against liability except liability for errors and omissions by the appraiser;
(f) alter, modify, or otherwise change a completed appraisal report submitted by an appraiser; or
(g) engage in any act or practice that violates appraisal independence as defined in 15 U.S.C. Sec. 1639e or in the policies and procedures of:
(i) the Federal Home Loan Mortgage Corporation; or
(ii) the Federal National Mortgage Association.
(2) An appraisal management company required to be registered under this chapter, or a controlling person, employee, or agent of the appraisal management company may not influence or attempt to influence the development, reporting, or review of an appraisal through:
(a) coercion;
(b) extortion;
(c) collusion;
(d) compensation;
(e) instruction;
(f) inducement;
(g) intimidation;
(h) bribery; or
(i) any other manner that would constitute undue influence.
(3) A violation of Subsection (2) includes doing one or more of the following for a purpose listed in Subsection (2):
(a) withholding or threatening to withhold timely payment for an appraisal;
(b) withholding or threatening to withhold future business for an appraiser;
(c) taking adverse action or threatening to take adverse action against an appraiser regarding use of the appraiser for a real estate appraisal activity;
(d) expressly or by implication promising future business or increased compensation for an appraiser;
(e) conditioning one or more of the following on the opinion, conclusion, or valuation to be reached, or on a preliminary estimate or opinion requested from an appraiser:
(i) a request for a real estate appraisal activity; or
(ii) the payment of consideration;
(f) requesting that an appraiser provide at any time before the appraiser's completion of a real estate appraisal activity:
(i) an estimated, predetermined, or desired valuation in an appraisal report; or
(ii) an estimated value or comparable sale;
(g) except for a copy of a sales contract for a purchase transaction, providing to an appraiser:
(i) an anticipated, estimated, encouraged, or desired value for a subject property; or
(ii) a proposed or target amount to be loaned to the borrower;
(h) providing to an appraiser, or an individual related to the appraiser, stock or other financial or non-financial benefits;
(i) allowing the removal of an appraiser from an appraiser panel, without prior written notice to the appraiser as required by Section 61-2e-306;
(j) obtaining, using, or paying for a subsequent appraisal or ordering an automated valuation model in connection with a mortgage financing transaction unless:
(i)
(A) there is a reasonable basis to believe that the initial appraisal does not meet applicable appraisal standards; and
(B) the reasonable basis is noted in the loan file; or
(ii) the subsequent appraisal or automated valuation model is done pursuant to a pre- or post-funding appraisal review or quality control process in accordance with applicable appraisal standards;
(k) removing or threatening to remove an appraiser from the appraiser panel if an appraiser requires a reasonable extension of the completion date for an appraisal assignment in order to complete a credible appraisal report; or
(l) engaging in any other act or practice that impairs or attempts to impair an appraiser's independence, objectivity, or impartiality.
(4) This section may not be construed to prohibit an appraisal management company from requesting that an appraiser:
(a) provide additional information about the basis for a valuation; or
(b) correct an objective factual error in an appraisal report.