Conneticut

Reviewer Requirements

  • Appraisal Reviewers must be licensed appraisers in CT

 

  • CT Senate Bill No. 13 Section 4-(b):

(b) Any employee of an appraisal management company or any contractor working on behalf of such company who has any involvement in the performance of appraisals in this state or review

and analysis of completed appraisals in this state shall be licensed or certified and in good standing pursuant to the provisions of sections 20-500 to 20-528, inclusive, of the general statutes, as amended by this act. This subsection shall not prohibit an individual who is not so

licensed or certified from performing job functions that (1) are confined to an examination of an appraisal or an appraisal report for grammatical, typographical or clerical errors, and (2) do not involve the formulation of opinions or comments about (A) the appraiser’s data collection, analyses, opinions, conclusions or valuation, or (B) compliance of such appraisal or appraisal report with the USPAP.

 

  • **Anyone who SELECTS an appraiser must be a certified appraiser**

 

  • CT AMC Regulations Section 20-529-1-(f)

     

(f) An appraisal management company seeking registration shall demonstrate to the department that each person who selects an appraiser or reviews an appraiser’s work for the appraisal management company is a certified appraiser in good standing.

 

Scope of Law

  • No clear distinction between commercial and residential real estate

 

  • CT Senate Bill No. 13 Section 1-(1):

(1) “Appraisal” means the practice of developing an opinion of the value of real property, in conformance with the USPAP.

 

Reviewing Provisions

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

 

  • CT Senate Bill No. 13 Section 2-(c)-(1)-(c):

(c) Before issuing or renewing a certificate of registration, the commissioner may:

(1) Certify that each appraisal management company applying for a certificate of registration has procedures in place to

 

(C) review on a periodic basis the work of all appraisers performing appraisals for the company, to ensure that such appraisals are being conducted in accordance with the USPAP;

 

  • CT Senate Bill No. 13 Section 3-(b):

 

(b) Each appraisal management company may audit the appraisals completed by appraisers on its appraiser panel to ensure that such appraisals are being performed in accordance with the USPAP.

 

  • CT AMC Regulations Section 20-529-3-(a)-(2):

(a) Upon registration with the department and continuing with each renewal thereafter, an appraisal management company shall provide a statement to the department, signed by its designated controlling person, certifying that the appraisal management company verifies that each appraisal assignment is offered to an appraiser who is in good standing per the National Registry. For appraisers acting as independent contractors, the appraisal management company shall:

(2) Review work of all appraisers periodically for compliance with the Uniform Standards of

Professional Appraisal Practice;

  • CT AMC Regulations Section 20-529-11-(a)-(2):

(2) Appraisal management companies shall adopt reasonable procedures designed to ensure

that all appraisal assignments completed by its independent contractors or employee appraisers

are performed in accordance with the Uniform Standards of Professional Appraisal Practice.

 

 

Appraiser Requirements

Appraiser Competency

  • Must require appraiser to confirm competency prior to accepting assignment

 

  • CT AMC Regulations Section 20-529-5-(b):

(b) An appraisal management company shall, at or before the time the appraiser accepts an assignment, obtain the appraiser’s acknowledgment as to the appraisal management company’s competency requirements as defined by the Uniform Standards of Professional Appraisal Practice.

 

Record Keeping

  • CT Senate Bill No. 13 Section 1-(10)-(B):

(10) “Compliance manager” means a person who holds an appraiser license or certificate in at least one state and who is responsible for overseeing the implementation of, and compliance with, procedures for an appraisal management company to:

 

(B) Maintain detailed records of each appraisal request or order the company receives and of the appraiser who performs such appraisal;

 

  • CT Senate Bill No. 13 Section 2-(c)-(1)-(B):

 

(c) Before issuing or renewing a certificate of registration, the

commissioner may:

 

(1) Certify that each appraisal management company applying for a certificate of registration has procedures in place to

 

(B) maintain detailed records of each appraisal request or order it receives and of the appraiser who performs such appraisal,

 

  • CT Senate Bill No. 13 Section 3-(a):

 

(a) Each appraisal management company shall certify annually to the commissioner that it maintains a detailed record of each appraisal request or order it receives and of the appraiser who performs such appraisal.

 

  • CT AMC Regulations Section 20-529-3-(a)-(3):

(a) Upon registration with the department and continuing with each renewal thereafter, an appraisal management company shall provide a statement to the department, signed by its designated controlling person, certifying that the appraisal management company verifies that each appraisal assignment is offered to an appraiser who is in good standing per the National Registry. For appraisers acting as independent contractors, the appraisal management company shall:

 

(3) Maintain a record of each appraisal request. Each appraisal request shall include:

(a) Name of appraiser;

(b) Property address;

(c) Borrorower’s name;

(d) Lender’s name; and

(e) Date of assignment.

  • CT AMC Regulations Section 20-529-4:

(a) The statement of recordkeeping required to be filed by an appraisal management company upon registration with the department and annually thereafter shall be signed by its designated controlling person and shall contain:

(1) A description of its system for maintaining required records, including the name of the

records custodian and all locations where records are kept; and

(2) A list of all appraisal assignments given by the appraisal management company that have

been accepted during the relevant period, together with the names of the individual appraiser or entity who accepted each assignment and the individual appraiser who signed the corresponding appraisal report.

(b) Records required to be maintained pursuant to this section may be kept in an electronic format.

  • Specific guidelines for records to be kept

 

  • CT AMC Regulations Section 20-529-11-(b,c):

(b) Appraisal management companies shall maintain records of each of the following for each service request:

(1) Date of the receipt of the request for service;

(2) The name of the person from whom the request was received;

(3) The name of the client for whom the request was made, if different from the name of the

person from whom the request was received;

(4) The name of the appraiser or appraisers assigned to perform the contracted service;

(5) The date of delivery of the appraisal product to the client;

(c) Appraisal management companies shall maintain records of all appraisal fees dispersed to

contracted appraisers and the final fee charged to the lender or client.

 

Licensing Disclosure

  • Must disclose registration number on all communications with appraisers

 

  • CT AMC Regulations Section 20-529-5(c)-(3):

 

(3) The appraisal management company’s Connecticut Registration Number shall be included

on all external correspondence with Connecticut appraisers.

 

Communications With Appraisers

  • Certain information required to be included on appraisal assignment

 

  • CT AMC Regulations Section 20-529-5-(a):

(a) An appraisal management company shall, at the time an assignment is offered, disclose to the

appraiser:

(1) The total amount that the appraiser may expect to earn from the assignment, disclosed as a

dollar amount;

(2) The property address, or equivalent information that would allow the appraiser to determine

whether the appraiser has been involved with any service regarding the subject property within

the three years preceding the date on which the assignment is offered;

(3) The assignment conditions and scope of work requirements in sufficient detail to allow the

appraiser to determine whether the appraiser is competent to complete the assignment; and

(4) Any known deadlines within which the assignment shall be completed.

Communication With Board

  • Mandatory reporting clause

 

  • CT AMC Regulations Section 20-529-1-(e):

(e) If an appraisal management company has a good faith belief that a real estate appraiser in Connecticut or any other state has violated applicable law or the Uniform Standards of Professional Appraisal Practice, or engaged in unethical conduct, it shall file a complaint with the department. The complaint shall be filed within one hundred twenty (120) days of the date the appraisal is submitted to the appraisal management company. A copy of the complaint shall be forwarded to the Respondent.

 

Billing/ Payment

  • Fee paid to appraiser and AMC fee must be stated separately

 

  • CT Senate Bill No. 13 Section 3-(c):

(c) Each appraisal management company shall disclose to a client prior to providing, or along with, the appraisal report (1) the dollar amount of the total compensation to be paid by such company to the appraiser who performed the appraisal; and (2) the dollar amount of the total compensation to be retained by such company from the appraisal fee paid to such company for such appraisal.

 

  • Must pay appraisers within 60 days of transmission of appraisal report

 

  • CT Senate bill No. 13 Section 4-(c):

 

(c) Except in cases of breach of contract or substandard performance of services or where the parties have mutually agreed upon an alternate payment schedule in writing, each appraisal management company operating in this state shall make payment to an appraiser for the completion of an appraisal or valuation assignment not later than sixty days after the date on which such appraiser transmits or otherwise provides the completed appraisal or valuation study to the appraisal management company or its assignee.

 

  • Payment to appraisers must be “customary and reasonable”

 

  • CT AMC Regulations Section 20-529-11-(c)-(1,2):

 

(1) The appraisal management company is required to pay the appraiser customary and

reasonable fees based upon the scope of work involved for comparable appraisal services in the

geographic market where the property is located; and

(2) The customary and reasonable fee shall be based upon a survey of a representative amount

including but not limited to Connecticut state chartered trust companies and state chartered

savings banks. Fees registered by reputable appraisal management companies are specifically

excluded.

 

Employee Training

Removal of Appraisers from Panel

  • Specific guidelines for written notice required to remove appraisers from panel

 

  • CT Senate Bill No. 13 Section 5-(a):

Sec. 5. (NEW) (Effective October 1, 2010) (a) Except within the first thirty days after an appraiser is initially added to an appraiser panel of an appraisal management company, such company shall not remove an appraiser from its appraiser panel or otherwise refuse to assign

requests or orders for appraisals without:

 

(1) Notifying the appraiser in writing of the reasons why the appraiser is being removed;

 

(2) If the appraiser is being removed for alleged illegal conduct, violation of the USPAP or violation of state licensing standards, notifying the appraiser in writing of the nature of the alleged conduct or violation; and

 

(3) Providing the appraiser with an opportunity to respond to such notice.

 

  • CT AMC Regulations Section 20-529-11-(i,j):

 

(i) Unless by contractual agreement, the appraisal management company shall not remove an

independent appraiser from its panel of approved appraisers without prior written notice that includes evidence which supports the basis of fact that the appraiser has violated the Uniform Standards of Professional Appraisal Practice, Connecticut General Statutes, or other applicable appraisal regulations or evidence which demonstrates substandard performance, improper or unprofessional behavior, or other substantive deficiencies.

 

(j) The appraiser shall have thirty days to respond to such notice. Such notice shall be sent to the

appraiser by registered mail, return receipt requested, to the appraiser’s business address contained in the records of the Appraisal Commission.

 

Misc

  • Appraisal reports completed by independent contractors must be signed by an appraiser on our panel

 

  • CT AMC Regulations Section 20-529-3-(a)-(1):

(a) Upon registration with the department and continuing with each renewal thereafter, an appraisal management company shall provide a statement to the department, signed by its designated controlling person, certifying that the appraisal management company verifies that each appraisal assignment is offered to an appraiser who is in good standing per the National Registry. For appraisers acting as independent contractors, the appraisal management company shall:

(1) Ensure the appraisal report is signed by an appraiser included on the appraisal management

companies’ panel or is an employee appraiser at the time the assignment is offered;

  • Position of compliance manager must be occupied by a certified appraiser in some state

 

  • CT AMC Regulations Section 20-529-8-(a):

(a) The compliance manager shall be a certified real estate appraiser pursuant to sections 20-500

through 20-528, inclusive, of the Connecticut General Statutes or pursuant to the applicable laws of another state.

  • Registrations are not prorated

 

  • CT AMC Regulations Section 20-529-9-(b):

(b) All registrations expire on the thirty-first day of December, biennially, in even-numbered years.