Alabama

Regulations:

http://reab.alabama.gov/pdf/AMC%20Forms/Appraisal%20Management%20Company.Chapter%20780-x-17.pdf

Reviewer Requirements

  • Reviewers must be a licensed appraiser in the state of Alabama
  • Code of Alabama: Title 34: Section 34-27A-52-c:

(c) An employee of an appraisal management company, or any contractor working in any capacity on behalf of an appraisal management company, that has any involvement in the actual performance of appraisal services, or the review and analysis of completed appraisals in Alabama shall be an appraiser certified in Alabama. The license classification shall qualify the employee to perform all applicable job functions.

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.03-c:

(c) An employee of an appraisal management company, or any contractor working in any capacity on behalf of an appraisal management company, that has any involvement in the actual

performance of appraisal services, or the review and analysis or completed appraisals in Alabama shall be an appraiser certified in Alabama. The license classification shall qualify the

employee to perform all applicable job functions.

Scope of Law

  • No specific distinction between residential and commercial real estate

 

  • Code of Alabama: Title 34, Section 34-27A-2-1,3,4:

(1) APPRAISAL. The act or process of developing an opinion of value of real property; an opinion of the value of real property; of or pertaining to appraising real property and related functions such as appraisal practice or appraisal services.

(3) APPRAISAL MANAGEMENT COMPANY. An external third party including, but not limited to, a corporation, partnership, sole proprietorship, subsidiary, or limited liability company, authorized either by a creditor of a consumer credit transaction secured by the principal dwelling of a consumer or by an underwriter of or other principal in the secondary mortgage markets, that oversees a network or panel of more than four certified or licensed appraisers in a state or 25 or more nationally in a given year, that perform appraisal management services.

(4) APPRAISAL MANAGEMENT SERVICES. To directly or indirectly perform any of the following functions for a fee on behalf of a lender, financial institution, or any other entity:

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.

d. Review and verify the work of appraisers.

 

Reviewing Provisions

  • Must conduct internal quality control reviews on a periodic basis to assure compliance with USPAP

 

  • Code of Alabama-Title 34, Section 34-27A-51-a-8:

(a) Application for registration under this article shall be made in writing to the board on forms prescribed by the board and shall include all of the following:

(8) Certification that the applicant reviews the work of all appraisers that are performing real estate appraisal services for the applicant on a periodic basis to verify that the real estate appraisal services are being conducted in accordance with the Uniform Standards of Professional Appraisal Practice and Article 1.

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.01-12:

780-X-17-.01 Form. An appraisal management company that wishes to file an application for an appraisal management company certificate of registration may obtain the required form upon

request to the Board. The form calls for information such as:

(12) certification that the applicant reviews the work of all appraisers that are performing real estate appraisal services for the applicant on a periodic basis to verify that the real estate appraisal services are being conducted in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP);

 

Appraiser Requirements

Appraiser Competency

  • Appraisers must be geographically competent

 

  • Code of Alabama: Title 34, Section 34-27A-2-18:

(18) GEOGRAPHIC COMPETENCY. The familiarity of an appraiser with a market or a geographic area applicable to the problem to be addressed in an appraisal or an appraisal review assignment.

  • Code of Alabama: Title 34, Section 34-27A-51-a-7:

(a) Application for registration under this article shall be made in writing to the board on forms prescribed by the board and shall include all of the following:

(7) Certification that the applicant requires that all appraisers shall have geographic competency to perform an appraisal assignment.

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-11:

(11) certification that the applicant requires that all appraisers shall have geographic competency to perform an appraisal assignment;

 

  • Appraisers must certify competence prior to acceptance of assignment

 

  • Code of Alabama: Title 34, Section 34-27A-58-a:

(a) Before placing an assignment with an appraiser, an appraisal management company shall require that the appraiser confirm in writing or via electronic means that the appraiser receiving the assignment is a competent appraiser for the performance of the appraisal being assigned.

 

  • Must require statement of competency from appraisers before adding them to panel

 

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.11-a:

(a) Before an appraiser is added to a panel, an appraisal management company shall require the appraiser to declare in writing or via electronic means that the appraiser receiving the assignment is a competent appraiser for the performance of the appraisal being assigned.

 

Record Keeping

  • Code of Alabama: Title 34, Section 34-27A-51-a-9:

(a) Application for registration under this article shall be made in writing to the board on forms prescribed by the board and shall include all of the following:

(9) Certification that the applicant maintains records of each service request that it receives and identification of the appraiser that performs the real estate appraisal services for the applicant.

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.01-13:

780-X-17-.01 Form. An appraisal management company that wishes to file an application for an appraisal management company certificate of registration may obtain the required form upon

request to the Board. The form calls for information such as:

(13) certification that the applicant maintains records of each service request that it receives and identification of the appraiser that performs the real estate appraisal services for the applicant;

 

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.12-a:

(a) An appraisal management company shall maintain a record of each request it receives for its services for appraisals of Alabama properties. If an appraisal is ordered, the record shall include the name of the appraiser who performs the appraisal, the physical address or legal identification of the subject property, the name of the appraisal management company’s client for the appraisal, and the amount paid to the appraiser.

 

  • Must keep records of appraisal service requests for five years

 

  • Code of Alabama: Title 34, Section 34-27A-57-4:

(4) Maintain a detailed record of each service request received and each appraiser assigned to perform the appraisal. A copy of the record shall be retained for at least five years after the date the appraisal management company forwards the appraisal to the client.

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.12-c:

(c) A registered appraisal management company shall maintain the accounts, correspondence, memoranda, papers, books, and other records related to services provided by the appraisal

management company. Such records may be maintained in electronic form. All records shall be preserved for five (5) years.

 

Licensing Disclosure

  • Must disclose registration # on all relevant documents

 

  • Code of Alabama: Title 34, Section 34-27A-56-b:

(b) Each appraisal management company shall include its registration number on all engagement letters for appraisals in Alabama.

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.07-b:

(b) Each appraisal management company shall include its registration number on all engagement letters for appraisals in Alabama.

 

Communications With Appraisers

  • Must notify appraisers in the event of nonpayment within 30 days of receipt of report

 

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.15-b:

(b) If an appraisal management company decides that it will not pay a fee to an appraiser for an appraisal, the appraisal management company shall notify the appraiser in writing of the reason for nonpayment. Such notice shall be sent to the appraiser within thirty (30) days after the date the appraiser transmits the appraisal to the appraisal management company. The notice shall be sent by registered mail, return receipt requested, to the appraiser’s business address contained

in the records of the Board. The notice shall state the address of the subject property of the appraisal, the name of the appraiser(s) signing the report, and the reason why the fee shall

not be paid. The notice shall also notify the appraiser of any dispute resolution process that the appraisal management company may have in place.

 

  • May request additional info from appraiser on report; must send request within 30 days of transmission of report

 

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.17-a:

(a) An appraisal management company may request that a real estate appraiser who performs an appraisal for the appraisal management company consider additional appropriate property

information, provide further detail, substantiation, or explanation for the appraiser’s value conclusion, or to correct errors in an appraisal report. If the appraisal management company requests that an appraiser consider additional information, such request shall be sent to the appraiser in writing or by electronic means within thirty (30) days of the date the appraisal is transmitted by the appraiser to the appraisal management company.

 

 

Communication With Board

  • Mandatory reporting clause

 

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.14-a:

(a) If an appraisal management company has a good faith belief that a real estate appraiser licensed in Alabama has violated applicable law or the Uniform Standards of Professional

Appraisal Practice (USPAP), engaged in unethical conduct, and the violation has had a material impact on the valuation, the company shall file a complaint with the Board. The complaint shall be filed within ninety (90) days of the date the appraisal is submitted to the appraisal management company.

 

Billing/ Payment

  • Must pay appraisers within 45 days of receipt of appraisal report

 

  • Code of Alabama: Title 34, Section 34-27A-58-b:

(b) An appraisal management company operating in this state, except in cases of a mutually agreed upon payment date, breach of contract, or performance of services that violates Uniform Standards of Professional Appraisal Practice or any published standards of best practices, shall make payment to an appraiser for the completion of an appraisal or valuation assignment within 45 days after the date the appraisal management company, or an assignee, receives a completed appraisal or valuation study.

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.15-a:

(a) An appraisal management company operating in Alabama, except in cases of a mutually agreed upon payment date, breach of contract, or performance of services that violates

Uniform Standards of Professional Appraisal Practice (USPAP) or any published standards of best practices, shall make payment to an appraiser for the completion of an appraisal or valuation

assignment within forty-five (45) days after the date the appraisal management company, or an assignee, receives a completed appraisal or valuation study.

 

Employee Training

Removal of Appraisers from Panel

  • Specific procedures for removal of appraisers from panel

 

  • AL Real Estate Appraisers Board Administrative Code Chapter 780-X-17-.16:

780-X-17-.16 Removal of an Appraiser from an Appraisal Panel.

An appraisal management company may not remove an appraiser from an appraiser panel without:

(1) providing written notice to the appraiser of the reasons for removal;

(2) providing written notice of the nature of any alleged illegal conduct or violations of Uniform

Standards of Professional Appraisal Practice (USPAP) or state licensing standards if such is the reason for removal; and

(3) providing an opportunity for the appraiser to respond to the written notice.

 

  • Code of Alabama: Title 34, Section 34-27A-59:

Section 34-27A-59 – Removal of appraiser from appraiser panel.

An appraisal management company may not remove an appraiser from an appraiser panel without:

(1) Providing written notice to the appraiser of the reasons for removal.

(2) Providing written notice of the nature of any alleged illegal conduct or violation of Uniform Standards of Professional Appraisal Practice or state licensing standards if such is the reason for removal.

(3) Providing an opportunity for the appraiser to respond to the written notice.

Misc

  • Must institute system of independency

 

  • Code of Alabama- Title 34, Section 34-27A-51-a-10:

(a) Application for registration under this article shall be made in writing to the board on forms prescribed by the board and shall include all of the following:

(10) Certification that the applicant has a system in place to require that appraisals are conducted independently and free from inappropriate influence and coercion as required by the appraisal independence standards established under Section 129E of the Truth in Lending Act, including the requirement that fee appraisers be compensated at a customary and reasonable rate when the appraisal management company is providing services for a consumer credit transaction secured by the principal dwelling of the consumer.