Mississippi

Reviewer Requirements

  • Reviewers must be MS licensed appraisers

 

  • MS HB No. 1337 Section 8:

SECTION 8. Any employee of, or independent contractor to, the appraisal management company that performs a USPAP Standard 3 appraisal review of an appraisal report on property located in this state shall be an appraiser with the proper level of licensure in Mississippi. Quality control examinations are exempt from this requirement, as they are not considered a Standard 3 review.

  • MS HB No. 1337 Section 17-(n):

(n) “Appraisal review” means the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal assignment, except that a quality control examination of an appraisal shall not be an appraisal review.

Scope of Law

  • No specific distinction between commercial and residential real estate

 

  • MS HB No. 1337 Section 17-(a):

(a) “Appraisal” means an analysis, opinion or conclusion prepared by a real estate appraiser relating to the nature, quality, value or utility of specified interests in, or aspects of, identified real estate or identified real property performed in accordance with the Uniform Standards for Professional Appraisal Practice. An appraisal may be classified by the nature of the assignment into either a valuation assignment or an evaluation assignment. The term “valuation assignment” means an analysis, opinion or conclusion prepared by a real estate appraiser that estimates the value of an identified parcel of real estate or identified real property at a particular point in time. The term “evaluation assignment” means an analysis, opinion or conclusion prepared by a real estate appraiser that relates to the nature, quality or utility of identified real estate or identified real property.

 

Reviewing Provisions

Appraiser Requirements

Appraiser Competency

  • Appraisers must possess necessary geographic and product competence

 

  • MS HB No. 1337 Section 9-(1):

(1) Each appraisal management company doing business in this state shall certify to the commission on an annual basis that it 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.

  • MS Regulations Part 1502 CH 2- Rule 2.2-(2)-(h):

2. Applications for initial registration as an AMC shall include, at a minimum, the following information:

(h) A certification that the applicant AMC requires appraisers completing appraisals at its request to comply with the Uniform Standards of Professional Appraisal Practice (USPAP), including the requirements for geographic and product competence;

  • MS Regulations Part 1502 Ch. 2- Rule 2.9-(2):

Each AMC shall certify on an annual basis:

2. That it requires appraisers completing appraisals at its request to comply with the Uniform Standards of Professional Appraisal Practice (USPAP), including the requirements for geographic and product competence.

Record Keeping

  • Records must be kept for 5 years/ 2 years after any judicial proceeding

 

  • MS HB No. 1337 Section 10:

SECTION 10. Each appraisal management company doing business in this state shall certify to the board on an annual basis that it maintains a detailed record of each service request that it receives and the appraiser that performs the appraisal for the appraisal management company. Records shall be retained for a period of five (5) years after an appraisal is completed or two (2) years after final disposition of a judicial proceeding related to the assignment, whichever period expires later.

  • Specific records to be maintained
    • MS Regulations Part 1502 Ch 2 Rule 2.8-(1,2):

Rule 2.8 Bookkeeping Provisions.

1. Each registrant shall maintain records as follows:

 

(a) detailed record of each service request that it receives for appraisal of real property located in Mississippi, which shall include, but is not limited to:

 

i. a copy of the letter of engagement between the registrant and the appraiser;

ii. a copy of each appraisal report received from an appraiser, including the original report, any revised reports, and any addenda or other materials furnished subsequent to the delivery of the original report;

iii. copies of all correspondence between the appraiser and the registrant and any other entity involved in the transaction;

iv. a copy of the letter of engagement engaging another appraiser for the purpose of reviewing the appraisal;

v. a copy of any review of the appraisal performed, including the original review report, subsequent correspondence between the reviewer and registrant, and each subsequent revised review report;

vi. a copy of the request received from the registrant’s client, all documentation supplied to that client, all correspondence between client and registrant; and

vii. a record of fees disbursed to contracted appraisers and the fee received by the registrant from the registrant’s client.

(b) Copies of all appraiser fee schedules maintained and used by the registrant for the purpose of compliance with the provisions of the Truth in Lending Act (TILA) relating to reasonable and customary fees, which shall include evidence for such fees required by TILA. Such fee schedules shall include the beginning and ending effective dates for the document.

(c) Copies of rosters of appraiser fee panels used for assignments in Mississippi including the name of the appraiser, each appraiser’s Mississippi credential number, the date the appraiser was placed on the panel and the date and reason the appraiser was removed from the panel.

2. Registrants shall maintain the records set forth above for a period of five (5) years, after an appraisal is completed or two (2) years after final disposition of a judicial proceeding related to the assignment, whichever expires later as required by Miss. Code Ann. § 73-34-119.

  • MS Regulations Part 1502 Ch. 2- Rule 2.9-(6):

Each AMC shall certify on an annual basis:

6. That it maintains a detailed record of each service request that it receives and the appraiser that performs the appraisal for the AMC.

Licensing Disclosure

  • Must disclose registration number on all engagement documents

 

  • MS HB No. 1337 Section 12-(3):

(3) An appraisal management company registered in this state shall disclose the registration number provided to it by the board on the engagement documents presented to the appraiser.

Communications With Appraisers

Communication With Board

  • Mandatory reporting clause

 

  • MS HB No. 1337 Section 14:

SECTION 14. An appraisal management company that has a reasonable basis to believe an appraiser has failed to comply with applicable laws, the Uniform Standards of Professional Appraisal Practice or other ethical or professional requirements in connection with a consumer credit transaction secured by a consumer’s principal dwelling, shall refer the matter to the agency if the failure to comply is material. For purposes of this section, a failure to comply is material if it is likely to significantly affect the value assigned to the consumer’s principal dwelling.

Billing/ Payment

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

 

  • MS HB No. 1337 Section 9-(2):

(2) Each appraisal management company doing business in this state shall certify to the commission on an annual basis that it has a system in place to require that appraisals are conducted independently and free from inappropriate influence and coercion as required by the appraisal independence standards established under Section 129E of the Truth in Lending Act, including the requirement that fee appraisers be compensated at a customary and reasonable rate when the appraisal management company is providing services for a consumer credit transaction secured by the principal dwelling of a consumer.

  • MS Regulations Part 1502 Ch. 2- Rule 2.2-(2)-(j):

2. Applications for initial registration as an AMC shall include, at a minimum, the following information:

(j) A certification that the applicant AMC has a system in place to require that appraisals are conducted independently and free from inappropriate influence and coercion as required by the appraisal independence standards established under Section 129E of the Truth in Lending Act, including the requirements for payment of a reasonable and customary fee to appraisers when the AMC is providing services for a consumer credit transaction secured by a principal dwelling of a consumer; and

  • MS Regulations Part 1502 Ch. 2- Rule 2.9-(3):

Each AMC shall certify on an annual basis:

3. That is has a system in place to require that appraisals are conducted independently and free from inappropriate influence and coercion as required by the appraisal independence standards established under Section 129E of the Truth in Lending Act, including the requirement that fee appraisers be compensated at a customary and reasonable rate when the AMC is providing services for a consumer credit transaction secured by the principal dwelling of a consumer.

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

 

  • MS HB No. 1337 Section 9-(3):

(3) Each appraisal management company doing business in this state shall certify to the commission on an annual basis that it has a system in place requiring payment to an independent contract appraiser for the completion of an appraisal service within sixty (60) days after the appraiser provides the completed appraisal report to the appraisal management company, except in cases involving a bona fide breach of contract, substandard performance of services, or alternate payment terms agreed upon by the appraiser and the appraisal management company.

 

  • MS Regulations Part 1502 Ch. 2- Rule 2.9-(4):

Each AMC shall certify on an annual basis:

4. That it has a system in place requiring payment to an independent contract appraiser for the completion of an appraiser service within sixty (60) days after the appraiser provides the completed appraisal report to the AMC, except in cases involving a bona fide breach of contract, substandard performance of services, or alternate payments terms agreed upon by the appraiser and the AMC.

Employee Training

Removal of Appraisers from Panel

  • Specific instructions for removal of appraiser from panel

 

  • MS HB No. 1337 Section 15-(1):

SECTION 15. (1) (a) Except within the first ninety (90) 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:

(b) Notifying the appraiser in writing of the reasons why the appraiser is being removed from the appraiser panel of the appraisal management company;

(c) If the appraiser is being removed from the panel for illegal conduct, violation of USPAP, or a violation of state licensing standards, notifying the appraiser of the nature of the alleged conduct or violation;

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

  • MS Regulations Part 1502 Ch. 2- Rule 2.11-(1,2,3):

Rule 2.11 Removal of Appraisers from AMC Appraiser Panel.

1. Notice.

(a) Except within the first ninety (90) days after an independent appraiser is first added to the AMC’s appraiser panel, an AMC may not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real estate appraisal services to an appraiser without written notice to the appraiser stating the reasons why the appraiser is being removed from the appraiser panel.

(b) If the appraiser is being removed from the panel for illegal conduct, violation of USPAP, or a violation of state licensing standards, the written notice should notify the appraiser of the nature of the alleged conduct or violation; and

(c) The notice must provide an opportunity for the appraiser to respond to the notice.

2. Decision – The decision to remove the appraiser shall be in writing and shall contain the reason(s) and the basis for the removal.

3. Service of Notice and Decision – The AMC shall send both the written notice and decision to the appraiser by certified mail, return receipt requested.

Misc