Maryland

Reviewer Requirements

  • Reviewers must be MD licensed appraisers

 

  • MD SB 658 Section 16-5B-08-(C):

(C) AN EMPLOYEE OF OR INDEPENDENT CONTRACTOR TO THE APPRAISAL MANAGEMENT COMPANY THAT PERFORMS AN APPRAISAL REVIEW ON A PROPERTY LOCATED IN THE STATE SHALL BE AN APPRAISER LICENSED OR CERTIFIED IN THE STATE.

  • MD SB 658 Section 16-5B—1-(E):

(E) (1) “APPRAISAL REVIEW” MEANS THE ACT OF DEVELOPING AND COMMUNICATING AN OPINION ABOUT THE QUALITY OF ANOTHER APPRAISER’S WORK THAT WAS PERFORMED AS PART OF AN APPRAISER ASSIGNMENT.

(2) “APPRAISAL REVIEW” DOES NOT INCLUDE AN EXAMINATION OF AN APPRAISAL FOR GRAMMATICAL, TYPOGRAPHICAL, OR OTHER SIMILAR ERRORS THAT DO NOT MAKE A SUBSTANTIVE VALUATION CHANGE.

Scope of Law

Reviewing Provisions

Appraiser Requirements

Appraiser Competency

  • Appraisers must possess geographic and product competence
    • MD SB 658 Section 16-5B-03-(B)-(7):

(B) THE REGISTRATION REQUIRED UNDER SUBSECTION (A) OF THIS SECTION SHALL INCLUDE:

(7) A CERTIFICATION THAT THE PERSON SEEKING REGISTRATION REQUIRES APPRAISERS COMPLETING APPRAISALS AT ITS REQUEST TO COMPLY WITH THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE, INCLUDING THE REQUIREMENTS FOR GEOGRAPHIC AND PRODUCT COMPETENCE;

  • Must require confirmation of competency from appraisers prior to assigning appraisal

 

  • MD SB 658 Section 16-5B-08-(A):

(A) AN APPRAISAL MANAGEMENT COMPANY SHALL VERIFY REQUIRE THAT AN APPRAISER CONFIRM IN WRITING OR VIA ELECTRONIC MEANS THAT THE AN APPRAISER RECEIVING THE ASSIGNMENT IS A COMPETENT APPRAISER FOR THE PERFORMANCE OF THE APPRAISAL BEING ASSIGNED.

  • Cannot require an appraiser to complete an appraisal for which they feel incompetent

 

  • MD SB 658 Section 16-5B-13-(2):

16–5B–13.

AN APPRAISAL MANAGEMENT COMPANY COMMITS UNPROFESSIONAL CONDUCT IF THE APPRAISAL MANAGEMENT COMPANY:

(2) REQUIRES AN APPRAISER TO PREPARE AN APPRAISAL REPORT IF THE APPRAISER HAS NOTIFIED THE APPRAISAL MANAGEMENT COMPANY THAT, IN THE APPRAISER’S OWN PROFESSIONAL JUDGMENT, THE APPRAISER BELIEVES THE APPRAISER DOES NOT HAVE THE NECESSARY EXPERTISE FOR THE SPECIFIC GEOGRAPHIC AREA;

Record Keeping

  • MD SB 658 Section 16-5B-09:

16–5B–09.

(A) A PERSON APPLYING FOR REGISTRATION AS AN APPRAISAL MANAGEMENT COMPANY SHALL CERTIFY TO THE COMMISSION ON AN ANNUAL BASIS THAT IT WILL MAINTAIN A DETAILED RECORD OF:

(1) EACH SERVICE REQUEST THAT IT RECEIVES; AND

(2) EACH APPRAISER THAT PERFORMS THE APPRAISAL FOR THE APPRAISAL MANAGEMENT COMPANY.

(B) AN APPRAISAL MANAGEMENT COMPANY SHALL RETAIN THE RECORDS REQUIRED UNDER SUBSECTION (A) OF THIS SECTION FOR 5 YEARS AFTER AN APPRAISAL IS COMPLETED, OR 2 YEARS AFTER FINAL DISPOSITION OF A JUDICIAL PROCEEDING RELATED TO THE ASSIGNMENT, WHICHEVER PERIOD EXPIRES LATER.

Licensing Disclosure

  • Must disclose registration number on all relevant documents

 

  • MD SB 658 Section 16-5B-16-(c):

(C) AN APPRAISAL MANAGEMENT COMPANY SHALL DISCLOSE THE COMPANY’S REGISTRATION NUMBER ON ANY INSTRUMENT UTILIZED BY THE APPRAISAL MANAGEMENT COMPANY TO PROCURE APPRAISAL SERVICES IN THIS STATE.

Communications With Appraisers

Communication With Board

  • Mandatory reporting clause
    • MD SB 658 Section 16-5B-12-(1):

16–5B–12.

AN APPRAISAL MANAGEMENT COMPANY SHALL INFORM THE COMMISSION WHEN THE APPRAISAL MANAGEMENT COMPANY HAS A REASONABLE BASIS TO BELIEVE THAT:

(1) AN APPRAISER HAS:

(1) (I) IS FAILING FAILED TO COMPLY WITH THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE;

(2) (II) IS VIOLATING VIOLATED APPLICABLE LAWS; OR

(3) (III) IS ENGAGING ENGAGED IN UNETHICAL OR UNPROFESSIONAL CONDUCT; AND

Billing/ Payment

  • Must state separately to clients the fees paid to appraisers and AMC fees

 

  • MD SB 658 Section 16-5B-10-(A)-(1):

(A) AN APPRAISAL MANAGEMENT COMPANY MAY NOT:

KNOWINGLY FAIL TO SEPARATE AND DISCLOSE ANY FEES CHARGED TO A CLIENT BY THE APPRAISAL MANAGEMENT COMPANY FOR THE COMPLETION OF AN APPRAISAL BY AN APPRAISER FROM THE FEES CHARGED TO A LENDER, CLIENT, OR ANY OTHER PERSON BY AN APPRAISAL MANAGEMENT COMPANY FOR PROVIDING APPRAISAL MANAGEMENT SERVICES; OR

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

 

  • MD SB 658 Section 16-5B-11-(2)-(I):

(2) (I) AN APPRAISAL MANAGEMENT COMPANY SHALL PAY AN APPRAISER REASONABLE AND CUSTOMARY FEES CONSISTENT WITH THE PRESUMPTIONS OF COMPLIANCE DEFINED UNDER FEDERAL LAW.

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

 

  • MD SB 658 Section 16-5B-14-(A):

16–5B–14.

(A) EXCEPT IN CASES OF BREACH OF CONTRACT OR SUBSTANDARD PERFORMANCE OF SERVICES, AN APPRAISAL MANAGEMENT COMPANY SHALL PAY AN APPRAISER FOR THE COMPLETION OF AN APPRAISAL OR VALUATION ASSIGNMENT WITHIN 60 DAYS AFTER THE APPRAISER PROVIDES THE COMPLETED APPRAISAL OR VALUATION STUDY TO THE APPRAISAL MANAGEMENT COMPANY OR ITS ASSIGNEE.

Employee Training

Removal of Appraisers from Panel

  • Specific procedures for removal of appraisers from panel
  • MD SB 658 Section 16-5B-17-(A):

16–5B–17.

(A) EXCEPT WITHIN 30 DAYS AFTER AN 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 APPRAISER, WITHOUT:

(1) NOTIFYING THE APPRAISER IN WRITING OF THE REASONS WHY THE APPRAISER IS BEING REMOVED FROM THE APPRAISER PANEL OF THE APPRAISAL MANAGEMENT COMPANY;

(2) IDENTIFYING THE ILLEGAL CONDUCT, VIOLATION OF THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE, OR VIOLATION OF STATE LICENSING STANDARDS, OR SUBSTANDARD PERFORMANCE OR VIOLATIONS OF CONTRACTUAL TERMS BETWEEN THE APPRAISER AND THE APPRAISAL MANAGEMENT COMPANY THAT THE APPRAISAL MANAGEMENT COMPANY HAS A REASONABLE BASIS TO BELIEVE THAT THE APPRAISER HAS ENGAGED IN; AND

(3) PROVIDING AN OPPORTUNITY FOR THE APPRAISER TO RESPOND.

Misc

  • Time frames to complete appraisal reports must be reasonable

 

  • MD SB 658 Section 16-5B-13-(3):

16–5B–13.

AN APPRAISAL MANAGEMENT COMPANY COMMITS UNPROFESSIONAL CONDUCT IF THE APPRAISAL MANAGEMENT COMPANY:

(3) REQUIRES AN APPRAISER TO PREPARE AN APPRAISAL REPORT UNDER A TIME FRAME THAT THE APPRAISER HAS NOTIFIED THE APPRAISAL MANAGEMENT COMPANY THAT, IN THE APPRAISER’S OWN PROFESSIONAL JUDGMENT, THE APPRAISER BELIEVES DOES NOT AFFORD THE APPRAISER THE ABILITY TO MEET ALL THE RELEVANT LEGAL AND PROFESSIONAL OBLIGATIONS;