Massachussets


Reviewer Requirements

  • Reviewers must be MA licensed appraisers

 

  • MA HB No. 124 Section 241-(d)-(2):

(2) management of the process of conducting appraisal reviews. Any employee of an

appraisal management company or any contractor working on behalf of such company who has

any involvement in the performance of an appraisal review of completed appraisals of real

property located in Massachusetts shall be licensed or certified in the Commonwealth and in

good standing pursuant to the provisions of this Chapter.

 

Scope of Law

Reviewing Provisions

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

 

  • MA HB No. 124 Section 239-(b)-(2):

(b) An application for registration under this Act must include the following certifications

from the applicant:

(2) A certification that the applicant has a system in place to review the work of all fee

appraisers that are performing real estate appraisal services for the appraisal management

company on a periodic basis to confirm that the real estate appraisal services are being conducted

in accordance with the Uniform Standards of Professional Appraisal Practice; and

Appraiser Requirements

Appraiser Competency

  • Can’t require an appraiser to accept an assignment for which they feel incompetent or gives them insufficient time

 

  • MA HB No. 124 Section 245-(b)-(7):

(b) No employee, director, officer, managing principal or agent of an appraisal

management company or any other third party acting as joint venture partner or independent

contractor shall:

(7) Require a fee appraiser to accept an appraisal assignment if the fee appraiser, in the

fee appraiser’s own independent professional judgment believes, (i) the fee appraiser does not

have the necessary expertise for the assignment, or (ii) knowledge of the geographic area, or (iii)

that the time frame does not allow the appraiser the ability to meet all of the fee appraiser’s

relevant legal or professional obligations.

Record Keeping

  • MA HB No. 124 Section 239-(b)-(3):

(b) An application for registration under this Act must include the following certifications

from the applicant:

(3) A certification that the applicant maintains a detailed record of each service request

that it receives and the fee appraiser that performs the residential real estate appraisal services for the appraisal management company.

 

  • Records must be kept for 5 years

 

  • MA HB No. 124 Section 247-(c):

 

(c) Every registered appraisal management company shall maintain the records related to

services provided by the appraisal management company as prescribed in rules adopted by the

Board. All records shall be preserved for five years unless the Board, by rule, prescribes

otherwise for particular types of records.

 

Licensing Disclosure

Communications With Appraisers

Communication With Board

  • Mandatory reporting requirement

 

  • MA HB No. 124 Section 239-(e):

(e) Any registrant having a good faith belief that a real estate appraiser licensed in the

Commonwealth has violated applicable law or the Uniform Standards of Professional Appraisal

Practice (USPAP) or engaged in unethical conduct shall promptly file a complaint with the

Board.

Billing/ Payment

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

 

  • MA HB No. 124 Section 245-(b)-(8):

(b) No employee, director, officer, managing principal or agent of an appraisal

management company or any other third party acting as joint venture partner or independent contractor shall:

 

(8) Knowingly fail to compensate fee appraisers at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised. Evidence for such fees may be established by objective third-party information, such as the most recently

published government agency fee schedule, an academic study, and an independent private

sector survey. A fee study or survey, if utilized in determining customary and reasonable fees,

shall exclude assignments ordered by known appraisal management companies and shall be

conducted annually. For purposes of this paragraph, an academic study may be commissioned by

and paid for by one or more appraisal management company or an association representing

appraisal management companies provided the terms under which the study is conducted

complies with this paragraph and are published within the study results.

 

Employee Training

Removal of Appraisers from Panel

  • Must provide written notice with specific information prior to removal of appraiser from panel
    • MA HB No. 124 Section 245-(a)-(8):

(a) No employee, director, officer, managing principal or agent of an appraisal

management company or any other third party acting as joint venture partner or independent

contractor shall influence or attempt to influence the development, reporting, result, or review of

a real estate appraisal through coercion, extortion, collusion, compensation, inducement,

intimidation, bribery, or in any other manner, including:

(8) Allowing the removal of a real estate appraiser from a list of qualified appraisers used

by any entity without prior written notice stating the reason for removal to the appraiser. The

notice shall include written evidence if the appraiser is removed from the list for illegal conduct,

substandard performance, or otherwise improper or unprofessional behavior or any violation of

the Uniform Standards of Professional Appraisal Practice (USPAP) or State licensing standards;

Misc

  • Role of employee in charge has certain duties and must be held by someone who is a certified appraiser

 

  • MA HB No. 124 Section 241-(d)-(1,2,3):

Section 241. Employee in charge.

In order to serve as the employee in charge for a registered AMC, a designee shall, in addition to continually holding a valid license issued by a state appraiser licensing authority as a state certified appraiser:

(d) shall be responsible for:

 

(1) management of the process of selecting appraisers for the performance of real estate

appraisal services;

 

(2) management of the process of conducting appraisal reviews. Any employee of an

appraisal management company or any contractor working on behalf of such company who has

any involvement in the performance of an appraisal review of completed appraisals of real

property located in Massachusetts shall be licensed or certified in the Commonwealth and in

good standing pursuant to the provisions of this Chapter.

 

(3) maintaining required documentation as part of the board file.