Michigan

Reviewer Requirements

  • Reviewers must be certified appraisers
    • *Not clear as to whether or not they must be certified in MI
    • MI Act No. 505 Article 26A Section 2671-(2):

(2) An appraisal management company shall ensure that any employee or independent contractor of the company who is responsible for completing standard 3 appraisal reviews, or who performs a standard 3 appraisal review, on its behalf has a valid license as a certified appraiser. As used in this subsection:

(b) “Standard 3 appraisal review” means an appraisal review that meets the requirements of standard 3 of the uniform standards of professional appraisal practice for appraisal reviews. The term does not include a quality control examination.

 

Scope of Law

Reviewing Provisions

  • Must conduct quality assurance reviews on a periodic basis to assure compliance with USPAP
  • Must certify to board the existence of this system

 

  • MI Act No. 505 Article 26a Section 2673-(2):

(2) An appraisal management company licensed under this article shall certify to the department on an annual basis, on a form prescribed by the department, that it has a system in place to periodically review the work of appraisers who perform real estate appraisal services for it to verify that the real estate appraisal services are being conducted in accordance with the uniform standards of professional appraisal practice.

 

Appraiser Requirements

Appraiser Competency

Record Keeping

  • Must keep records for at least 5 years
    • MI Act No. 505 article 26a Section 2673-(3):

(3) An appraisal management company licensed under this article shall certify to the department on an annual basis, on a form prescribed by the department, that it maintains a detailed record of each service request that it receives and the identity of the independent appraiser that performs the real estate appraisal services for the appraisal management company. An appraisal management company shall retain the records described in this subsection for at least 5 years.

 

Licensing Disclosure

Communications With Appraisers

Communication With Board

  • Must inform board of system of verification of appraisers’ certification

 

  • MI Act No. 505 Article 26A Section 2673-(1):

Sec. 2673. (1) An appraisal management company licensed under this article shall certify to the department on an annual basis, on a form prescribed by the department, that it has a system and process in place to verify that an individual the company is adding to its appraiser panel is licensed under article 26.

 

  • Must certify biannually that all appraisers have maintained their license

 

  • MI Act No. 505 Article 26a Section 2673-(4):

 

(4) An appraisal management company licensed under this article shall certify to the department on a biannual basis, on a form prescribed by the department, that it has a system in place to verify that each individual on its appraiser panel has not had his or her license as an appraiser refused, denied, canceled, revoked, or surrendered in lieu of a pending revocation in the 24 months preceding the date of the company’s certification under this subsection.

 

Billing/ Payment

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

 

  • MI Act No. 505 Article 26A Section 2671-(3)-(d):

(3) An appraisal management company that does any of the following is subject to the penalties under article 6:

(d) Fails, neglects, or refuses to pay an independent appraiser for an appraisal or valuation assignment within 60 days after the date on which the independent appraiser transmits or otherwise provides the completed appraisal or valuation to the appraisal management company or its assignee, unless the appraiser breached his or her agreement

with the company concerning that assignment or his or her performance of the appraisal or valuation services was

substandard.

Employee Training

  • Employees responsible for assigning appraisal assignments must be “appropriately trained”
    • MI Act No. 505 Article 26A Section 2671-(1):

Sec. 2671. (1) An appraisal management company shall ensure that any employee of the appraisal management company, or any other individual working on behalf of the appraisal management company, who is responsible for selecting independent appraisers for the performance of real estate appraisal services for the appraisal management company or review completed appraisals for the appraisal management company is appropriately trained.

 

Removal of Appraisers from Panel

  • Specific instructions for removal of appraisers from panel

 

  • MI Act No. 505 Article 26A Section 2677-(1):

(1) Beginning 90 days after an appraisal management company first adds the independent appraiser to its appraiser panel, the appraisal management company shall 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:

(a) Within 10 business days after the removal of the appraiser, notifying the appraiser in writing of all of the following, as applicable:

(i) The reasons why the appraiser was removed from the panel.

(ii) If the appraiser was removed from the panel for illegal conduct, a violation of the uniform standards of professional appraisal practice, or a violation of state licensing standards, the nature of the alleged conduct or violation.

(b) Providing an opportunity for the appraiser to respond to the company’s notification or notifications under subdivision (a).

 

Misc

  • Registration valid for 3 years

 

  • MI Act No. 505 Article 26A Section 2669-(3):

(3) The term of a license under this article is 3 years. The department may grant a shorter term for an initial license under this article so that all licenses issued under this article expire on the same date. The department shall include the expiration date of an appraisal management company’s license on its license certificate.