- Reviewers shall have “demonstrated knowledge of USPAP”
- NM AMC Registration Act Section 47-14-12-(B):
B. Any employee of the appraisal management company that has the responsibility to review the work of independent appraisers shall have demonstrated knowledge of the uniform standards of professional appraisal practice, as determined by the board by rule.
Scope of Law
- No specific distinction between commercial and residential real estate
- NM AMC Registration Act Section 47-14-2-(A):
A. “appraisal” means the act or process of developing an opinion of the value of real property in conformance with the uniform standards for professional appraisal practice published by the appraisal foundation
- Must conduct internal quality control reviews on a periodic basis to assure compliance with USPAP
- NM AMC Registration Act Section 47-14-15:
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 review the work of all independent appraisers that are performing real estate appraisal services for the appraisal management company on a periodic basis to ensure that the real estate appraisal services are being conducted in accordance with uniform standards of professional appraisal practice.
- NM AMC Registration Act Section 47-14-16:
Each appraisal management company seeking to be registered shall certify to the board on an annual basis that it maintains a detailed record of each service request that it receives and the independent appraiser that performs the real estate appraisal services for the appraisal management company.
Communications With Appraisers
- Must provide appraisers with transaction certificates
- NM AMC Registration Act Section 47-14-18-(F):
F. An appraisal management company shall provide an appraiser with the appropriate nontaxable transaction certificate pursuant to section 7-9-48 NMSA 1978.
Communication With Board
- Must state separately the fees paid to appraisers and AMC fees to clients
- NM AMC Registration Act Section 47-14-18-(B):
An appraisal management company shall separately state the fees paid to an appraiser for appraisal services and the fees charged by the appraisal management company for services associated with the management of the appraisal process, including procurement of the appraiser’s services to the client, borrower and any other payor.
- Must pay appraisers within 60 days of transmission of appraisal report
- NM AMC Registration Act Section 47-14-18-(E):
An appraisal management company shall, except in cases of breach of contract or substandard performance of services, make payment to an independent appraiser for the completion of an appraisal or valuation assignment within sixty days of the date on which the independent appraiser transmits or otherwise provides the completed appraisal or valuation study to the appraisal management company or its assignee.
- Employees responsible for selecting appraisers must be competent and “appropriately trained and qualified”
- NM AMC Registration Act Section 47-14-12-(A):
A. Any employee of the appraisal management company, or any person working on behalf of the appraisal management company, that has the responsibility of selecting independent appraisers for the performance of real estate appraisal services for the appraisal management company or the responsibility of reviewing completed appraisals shall have geographic and product competence and be appropriately trained and qualified in the performance of real estate appraisals as determined by the board by rule.
Removal of Appraisers from Panel
- Must provide written notice to appraisers prior to removal from panel
- NM AMC Registration Act Section 47-14-20-(A):
Except within the first thirty days after an independent appraiser is first added to the appraiser panel of an appraisal management company, an 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 notifying the appraiser in writing of the reasons for the appraiser being removed from the appraiser panel of the appraisal management company. If the appraiser is being removed from the panel for illegal conduct, violation of the uniform standards of professional appraisal practice or a violation of state licensing standards, the appraisal management company shall provide the independent appraiser the nature of the alleged conduct or violation and provide an opportunity for the appraiser to respond.