Montana

Reviewer Requirements

  • Reviewers must be MT licensed appraisers

 

  • MT HB 188 Section 8:

Section 8. Appraisal review. An employee or independent contractor of the appraisal management company that performs an appraisal review for a property located in this state:

(1) must be an appraiser licensed or certified in this state; and

(2) shall comply with the review provisions of the Uniform Standards of Professional Appraisal Practice.

  • MT HB 188 Section 1-37-54-102-(5):

(5) “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. The term does not include a quality control examination.

 

Scope of Law

  • No specific distinction between commercial and residential real estate

 

  • MT HB 188 Section 1- 37-54-102-(1):

(1) “Appraisal” means the practice of developing an opinion of the value of real property in conformance with the Uniform Standards of Professional Appraisal Practice as developed by the appraisal foundation.

 

Reviewing Provisions

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

 

  • MT HB 188 Section 13:

Section 13. Certification — adherence to standards. Each appraisal management company seeking to be registered in this state shall certify to the board on an annual basis that it has a system in place to perform on an annual basis an appraisal review of the work of all appraisers who are performing appraisals for the appraisal management company on a periodic basis to validate that the appraisals are being conducted in accordance with the Uniform Standards of Professional Appraisal Practice.

 

Appraiser Requirements

Appraiser Competency

  • Appraisers must posses geographic and product competence

 

  • MT HB 188 Section 3-(2)-(g):

(2) An application for the registration required by subsection (1) must include the following information:

(g) a certification that the person requires appraisers completing appraisal assignments at its request to comply with the Uniform Standards of Professional Appraisal Practice, including the requirements for geographic and product competence;

 

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

 

  • MT HB 188 Section 21-(2):

 

Section 21. Unprofessional conduct. An appraisal management company engages in unprofessional conduct if it:

(2) requires an appraiser to prepare an appraisal report if the appraiser, in the appraiser’s own

professional judgment, believes the appraiser does not have the necessary expertise for the specific geographic area and the appraiser has notified the appraisal management company of the issue;

 

Record Keeping

  • MT HB 188 Section 3-(2)-(j):

(2) An application for the registration required by subsection (1) must include the following information:

(j) a certification that the person maintains a detailed record of each service request that it receives and the appraiser that performs the appraisal service for the appraisal management company;

 

  • MT HB 188 Section 15:

 

Section 15. Recordkeeping. Each appraisal management company seeking to be registered in this

state shall certify to the board on an annual basis that it has retained the following documentation in accordance with the recordkeeping provisions of the Uniform Standards of Professional Appraisal Practice and applicable state law:

(1) a full record as prescribed by the board that includes the names of the entities requesting service from the appraisal management company and the corresponding names of the appraisers that performed the appraisal services; and

(2) all certifications and supporting documentation for board registration and renewals, including audit reports required by this chapter.

 

Licensing Disclosure

  • Must disclose registration number on all engagement documents

 

  • MT HB 188 Section 20:

Section 20. Advertising. (1)An appraisal management company registered in this state shall disclose its registration number on its engagement letter for each appraisal assignment.

Communications With Appraisers

Communication With Board

  • Mandatory reporting clause

 

  • MT HB Section 9:

Section 9. Mandatory reporting. An appraisal management company that has a reasonable basis to believe an appraiser is failing to comply with the Uniform Standards of Professional Appraisal Practice, is violating applicable laws, or is otherwise engaging in unethical or unprofessional conduct shall refer the matter to the board.

 

Billing/ Payment

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

 

  • MT HB 188 Section 3-(2)-(i):

(2) An application for the registration required by subsection (1) must include the following information:

(i) a certification that the person 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 of 1968,15U.S.C. 1601, etseq., including the requirement that the 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;

 

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

 

  • MT HB 188 Section 17:

 

Section 17. Guaranty of payment. Each appraisal management company registered in this state shall, except in cases of breach of contract, pay an appraiser for the completion of an appraisal or valuation assignment within 60 days of the date on which the appraiser transmits or otherwise provides the completed appraisal or valuation study to the appraisal management company or its assignee.

 

Employee Training

Removal of Appraisers from Panel

  • Must provide appraiser with written notice prior to removal from panel
    • MT HB 188 Section 16-(h):

Section 16. Appraiser independence — prohibitions. (1) An employee, director, officer, or agent of an appraisal management company registered in this state may not influence or attempt to influence the development, reporting, or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, or bribery or in any other manner, including but not limited to:

(h) allowing the removal of an appraiser from an appraiser panel without prior written notice to the appraiser; or

 

Misc

  • Position of “contact individual” must be occupied by someone who is a licensed appraiser in some state

 

  • MT HB 188 Section 6-(2)-(a):

Section 6. Contact individual. (1) Each appraisal management company shall designate one individual as the main contact for communication between the board and the appraisal management company. An appraisal management company may designate a controlling person of the company as the contact individual.

(2) The contact individual designated pursuant to subsection (1):

(a) must hold a license or certificate to act as an appraiser in at least one state;

 

  • Time frames given to appraisers must be reasonable

 

  • MT HB 188 Section 21-(3):

Section 21. Unprofessional conduct. An appraisal management company engages in unprofessional conduct if it:

(3) requires an appraiser to prepare an appraisal report under a timeframe that the appraiser, in the appraiser’s professional judgment, believes does not allow the appraiser to meet all relevant legal and

professional obligations and the appraiser has notified the appraisal management company of the issue;