Lousiana

Reviewer Requirements

  • Reviewers must be Louisiana licensed appraisers

 

  • LA AMC Licensing and Regulation Act Section 3415.3-(C)-(1):

(1) A person who performs an appraisal review for an appraisal management company shall be licensed or certified in Louisiana.

Scope of Law

  • Applies specifically to residential real estate

 

  • LA AMC Licensing and Regulation Act Section 3415.2-(10):

(10) “Real estate appraisal services” means residential valuation services performed by an individual acting as an appraiser, including but not limited to appraisal, appraisal review, or appraisal consulting, as these services are defined under the Uniform Standards for Professional Appraisal Practice.

(3) “Appraisal management services” means the process of receiving a request for the performance of real estate appraisal services from a client, and for a fee paid by the client, entering into an agreement with one or more independent appraisers to perform the real estate appraisal services contained in the request.

Reviewing Provisions

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

 

  • LA AMC Licensing and Registration Act Section 3415.3-(B)-(8):

B. The license required by Subsection A of this Section shall, at a minimum, include the following information:

(8) Certification that the entity has a system in place to review the work on a periodic basis of all independent appraisers that are performing real estate appraisal services for the appraisal management company to ensure that the real estate appraisal services are being conducted in accordance with Uniform Standards of Professional Appraisal Practice, pursuant to this Chapter.

  • LA AMC Licensing and Regulation Act Section 3415.13-(A):

A. Each appraisal management company seeking to be licensed in this state shall certify to the board on an annual basis that it has a system in place to review on a periodic basis the work of all appraisers that are performing real estate appraisal services for the appraisal management company to ensure that the real estate appraisal services are being conducted in accordance with Uniform Standards of Professional Appraisal Practice.

  • LA Professional and Occupational Standards Title 46-3-303-C-2:

C. Applications for initial licensing as an appraisal management company shall include, at a minimum, the following certifications.

2. The applicant has a system in place to review the work of all independent appraisers performing appraisal services.

Appraiser Requirements

Appraiser Competency

  • Must obtain verification of appraiser’s competency prior to assignment of appraisal report

 

  • LA AMC Licensing and Registration Act Section 3415.13-(B):

B. Before or at the time of making an assignment to an appraiser, an appraisal management company shall verify that the appraiser receiving the assignment satisfies each provision of the competency rule of the Uniform Standards of Professional Appraisal Practice for the appraisal being assigned.

Record Keeping

  • Records must be kept for five years

 

  • LA AMC Licensing and Registration Act Section 3415.3-(B)-(9):

B. The license required by Subsection A of this Section shall, at a minimum, include the following information:

(9) Certification that the entity maintains a detailed record for five years of each real estate appraisal service request that it receives and an itemized list of all fees contracted with each appraiser who performs real estate appraisal services for the appraisal management company, pursuant to this Chapter.

 

  • LA AMC Licensing and Registration Act Section 3415.14:

§3415.14. Record keeping
Each appraisal management company seeking to be licensed in this state shall certify to the board on an annual basis that it maintains a detailed record for five years of each real estate appraisal service request that it receives including the fee paid by the lenders to all appraisers for all real estate appraisal services and the names of all appraisers or entities that perform all real estate appraisal services for the appraisal management company.

  • LA Professional and Occupational Standards Title 46-3-303-C-3:

3. The applicant will maintain a record of each request for appraisal services applicable to Louisiana properties, as well as the name of the independent appraiser that performs appraisal services, and the fee paid to the appraiser for each assignment.

  • Specific guidelines for records to be kept:

 

  • LA Professional and Occupational Standards Title 46-3-30501:

§30501. Record Keeping
A. Licensees shall maintain the following records in a complete and accurate manner:
1. all requests for appraisal services that have been referred to state certified real estate appraisers by the appraisal management company;
2. the amount of fees collected from borrowers or clients by the appraisal management company;
3. all payments made by the appraisal management company to any state licensed real estate appraiser;
4. any and all related documents, correspondence, accounts, reports, papers, books, or records.
B. All records shall be kept properly indexed and readily available to the board for review upon request and without prior notice. Duly authorized representatives of the board shall be authorized to inspect such records at the offices of licensees between the hours of 9 a.m. and 4 p.m., Saturdays, Sundays, and legal holidays excluded, and to subpoena any of the said records.
C. All records specified in this Chapter shall be retained for a period of five years; however, records that are used in a judicial proceeding, in which the appraiser provided testimony related to the appraisal assignment, shall be retained for at least two years after disposition, whichever period expires last.
D. At any time that a document or information on file with the board becomes inaccurate or incomplete, the appraisal management company shall notify the board in writing within five days.

Licensing Disclosure

Communications With Appraisers

Communication With Board

  • Must report to board any disciplinary actions from any other jurisdiction

 

  • LA AMC Licensing and Registration Act Section 3415.8-(B,C):

B. Any licensed appraisal management company with an owner or employee who is subsequently refused or denied a real estate or lending-related license in any state, shall notify the board in writing within ten days of such action.
C. Any licensed appraisal management company with an owner or employee whose real estate or lending-related license has been suspended, revoked, or cancelled subsequent to being registered shall notify the board in writing within ten days of such action.

Billing/ Payment

  • Fees paid to appraisers must be “customary and reasonable”

 

  • LA AMC Licensing and Registration Act Section 3415.15-(A):

A. An appraisal management company shall compensate appraisers at a rate that is customary and reasonable for appraisals being performed in the market area of the property being appraised, consistent with the presumptions of compliance under federal law.

  • Fees paid to appraiser and AMC fees must be separately stated to clients

 

  • LA AMC Licensing and Registration Act Section 3415.15-(B), (C-2):

B. An appraisal management company shall separately state to the client all of the following:
(1) The fees paid to an appraiser for appraisal services.
(2) The fees charged by the appraisal management company for services associated with the management of the appraisal process, including procurement of the appraiser’s services.

(2) An appraisal management company shall not include any fees for appraisal management services performed by the company in the amount the company reports as charges for the actual completion of an appraisal by the appraiser.

Employee Training

Removal of Appraisers from Panel

  • Must notify appraisers in writing prior to removal from panel and give them opportunity to respond

 

  • LA AMC Licensing and Registration Act Section 3415.18-(A):

A. Except within the first thirty days after an independent appraiser is first added to the appraiser panel of an appraisal management company, an appraisal management company may not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real estate appraisal services to an independent appraiser without doing all of the following:
(1) Notifying the appraiser in writing of the reasons why the appraiser is being removed from the appraiser panel of the appraisal management company. If the appraiser is being removed from the panel for illegal conduct, violation of the Uniform Standards of Professional Appraisal Practice, or a violation of state licensing standards, the nature of the alleged conduct or violation shall be identified.

(2) Providing an opportunity for the appraiser to respond to the notification of the appraisal management company.

  • LA Professional and Occupational Standards Title 46-3-30701-A-4:

A. Licensees shall not permit an agent, or anyone acting on behalf of the licensee, to engage in any of the following activities:

4. removing an independent appraiser from the appraisal management company’s panel without prior written notice that includes supporting evidence that:
a. the appraiser has acted illegally;
b. the appraiser has violated the Uniform Standards of Professional Appraisal Practice, or other applicable state statutes or rules; or
c. the appraiser has had substandard performances or otherwise acted in an improper or unprofessional manner.

Misc

  • Registrations expire on Dec. 31 of each year

 

  • LA AMC Licensing and Registration Act Section 3415.6

§3415.6. Expiration of license

All licenses granted by the board pursuant to this Chapter shall expire December thirty-first of each calendar year.

 

  • Deadlines must be reasonable

 

  • LA AMC Licensing and Registration Act Section 3415.16-(A)-(9):

A. It shall be unlawful for any employee, director, officer, or agent of an appraisal management company licensed in this state pursuant to this Chapter to influence or attempt to influence the development, reporting, or review of an appraisal through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery, or in any other manner, including but not limited to the following:

(9) Forcing an appraiser to accept an assignment where the delivery times are so short that they force the appraiser to render a misleading report.