Pennsylvania

Reviewer Requirements

  • Reviewers must be certified appraisers somewhere

 

  • PA HB 398 Section 7-(a):

(a) Conduct of reviews.–All appraisal reviews in this Commonwealth must be conducted for an appraisal man-agement company by:

(1) a certified appraiser in good standing in this Commonwealth; or

(2) a certified or licensed appraiser in good standing in another state.

  • PA HB 398 Section 2:

“Appraisal review.” An appraisal review as defined by the Uniform Standards of Professional Appraisal Practice issued by the Appraisal Standards Board.

Scope of Law

  • No specific distinction between residential and commercial real estate

 

  • PA HB 398 Section 2:

“Appraisal.” The term has the meaning provided in section 2 of the act of July 10, 1990 (P.L. 404, No. 98)1, known as the Real Estate Appraisers Certification Act.

  • PA Real Estate Appraisers Certification Act 457.2:

“APPRAISAL.” A written analysis, opinion or conclusion relating to the nature, quality, value or utility of specified

interests in, or aspects of, identified real property, for or in expectation of compensation.

Reviewing Provisions

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

 

  • PA HB 398 Section 5-(b)-(5)-(ii):

(b) Required information.–The application shall contain such information as the board shall require, including the following information:

(5) A certification that the applicant:

(ii) Has a system in place for the performance of appraisal reviews with respect to the work of all appraisers that are performing appraisals for the applicant of property located in this Commonwealth to determine whether the appraisals are being conducted in conformance with the minimum standards under REACA both on a periodic basis and whenever requested by a client.

  • PA AMC Rules and Regulations Section 36.304-(b)-(2):

(b) The individual designated by the applicant as compliance person shall certify that the applicant has:

(2) A system in place for the performance of appraisal reviews with respect to the work of appraisers that are performing appraisals for the applicant of property in this Commonwealth to determine if the appraisals are being conducted in conformance with the minimum standards under REACA on a periodic basis and whenever requested by a client.

  • Reviews must assure that appraisals are in accordance with USPAP

 

  • PA AMC Rules and Regulations Section 36.331-(b):

(b) An appraisal management company shall establish a system to review appraisal assignments which is reasonably calculated to ensure compliance with USPAP by appraisers.

  • PA AMC Rules and Regulations Section 36.333:

(a) Appraisal reviews shall be performed in accordance with USPAP.

(b) An examination of an appraisal report for grammatical or typographical errors or for completeness is not required to comply with USPAP.

Appraiser Requirements

Appraiser Competency

Record Keeping

  • PA HB 398 Section 5-(b)-(5)-(iii):

(b) Required information.–The application shall contain such information as the board shall require, including the following information:

(5) A certification that the applicant:

(iii) Maintains a detailed record of each request for an appraisal that it receives, the appraiser assigned to perform the appraisal, the fees received from the client for the appraisal and the fees paid to the appraiser.

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

 

  • PA HB 398 Section 7-(b):

(1) An appraisal management company shall maintain or cause to be maintained:

(i) in the case of a registrant, complete records of its compliance with the certifications required under section 5(b)(5); and

(ii) in the case of registrants and exempt companies, such accounts, correspondence, memoranda, papers, books and other records as shall be required by the rules and regulations of the board.

(2) The records must be retained for:

(i) five years after their preparation;

(ii) two years after final disposition of any judicial proceeding that involves the actions of the appraisal management company that are the subject of the records; or

(iii) such other period as shall be required by the rules and regulations of the board with respect to a particular class or type of records.

(3) The board may inspect the records required under paragraph (1) at any time.

  • Very specific documents which are subject to record keeping requirements

 

  • PA AMC Rules and Regulations Section 36.335:

(a) Each appraisal management company shall maintain the following records:

(1) A record of each assignment it has ordered for appraisal of real property in this Commonwealth, including the following:

(i) The order between the appraisal management company and the appraiser.

(ii) Each appraisal report received from an appraiser, including the original report, revised reports and addenda or other materials furnished subsequent to the delivery of the original report.

(iii) Written communication between the appraiser and the appraisal management company and any other entity involved in the transaction.

(iv) The order engaging another appraiser for the purpose of reviewing the appraisal.

(v) A review of the appraisal performed, including data supporting the selection of the appraisal for review, the original review report, subsequent correspondence between the reviewer and appraisal management company, and each subsequent revised review report.

(vi) Written communications related to obligations under the law or this subchapter between the appraisal management company and its client, including documents supplied to that client.

(vii) A record of fees disbursed to contracted appraisers and the fee received by the appraisal management company from the appraisal management company’s client.

(2) Appraiser fee schedules, including:

(i) Fees paid for a defined service.

(ii) Documentation to support that the fee schedule is customary and reasonable and complies with TILA.

(iii) Payment policies, including time for payment of appraisal fees.

(iv) Effective dates of the schedules.

(3) Panels of appraisers used for assignments in this Commonwealth, including:

(i) The name of each appraiser.

(ii) The appraiser’s certificate number.

(iii) The date the appraiser was placed on the panel.

(iv) The region or area in which the appraiser’s service may be used.

(v) The date and reason for removal if the appraiser is removed from the panel.

(b) An appraisal management company shall maintain the records in subsection (a)(1) for 5 years beginning on the latest of the following:

(1) The date of final action of the assignment.

(2) The date of final disposition of the proceeding if the appraisal management company is notified that the transaction is the subject of a court proceeding or an administrative proceeding by the Board.

(c) An appraisal management company shall produce for inspection and copying by the Board within 30 days any record required to be maintained by the law or this subchapter.

Licensing Disclosure

  • Must include AMC registration number no all appraisal orders

 

  • PA AMC Rules and Regulations Section 36.336-(a)-(3):

(a) An appraisal management company shall include in an order or order solicitation for appraisal services:

(3) The appraisal management company’s registration number.

  • Must include AMC registration number on panel solicitations for appraisal services
    • PA AMC Rules and Regulations Section 36.336-(c):

(c) An appraisal management company shall include in a panel solicitation for appraisal services in this Commonwealth its appraisal management company registration number.

Communications With Appraisers

  • Must provide appraisers with contracts of sale of properties and other relevant documents

 

  • PA HB 398 Section 7-(g):

(g) Provision of sales contract.–Whenever an appraisal management company requests an appraiser to perform an appraisal, the appraisal management company must make a reasonable effort to provide in a timely manner to the appraiser a copy of the contract for the sale of the property, if available, along with legal descriptions and any other documents pertinent to the assignment.

Communication With Board

  • Must notify board of any disciplinary action from any other state

 

  • PA HB 398 Section 7-(f):

(f) Notice of discipline.–A registrant must notify the board in writing within 30 days after its occurrence of any denial, revocation or suspension of its designation, registration, certificate or license under any law of any jurisdiction other than this Commonwealth regulating appraisal management companies, the imposition of any other form of discipline under any such law or the commencement of a disciplinary or enforcement action against the registrant under any such law.

  • Mandatory reporting

 

  • PA AMC Rules and Regulations Section 36.337-(c,d):

(c) An appraisal management company, acting through its compliance person, shall report to the Bureau, directly or through another agent of the appraisal management company, a material violation as defined under section 129E(e) of TILA (15 U.S.C.A. § 1639e(e)) and corresponding regulations regarding appraisal independence requirements.

(d) A compliance person who has a reasonable basis to believe that an appraisal management company, its employee or agent has violated appraisal independence requirements of the law or this subchapter shall report the matter to the Bureau within a reasonable time after formulating the belief that a violation has occurred.

Billing/ Payment

  • Must state fee paid to appraiser separately from AMC fee

 

  • PA HB 398 Section 7-(e):

(e) Disclosure.–An appraisal management company shall disclose to its lender the fees paid for an appraisal separately from any other fees or charges for appraisal management services.

  • Fee paid to appraiser and payment schedule must be included on appraisal orders

 

  • PA AMC Rules and Regulations Section 36.336-(a)-(1,2):

(a) An appraisal management company shall include in an order or order solicitation for appraisal services:

(1) The fee to be paid to the appraiser for the appraisal assignment.

(2) The terms for time of payment for appraisal services.

Employee Training

Removal of Appraisers from Panel

  • Must provide prior written notice before removing appraisers from panel

 

  • PA HB 398 Section 8-(b)-(4):

(b) Other prohibitions.–A registrant or exempt company shall not:

(4) Remove an appraiser from an appraiser panel without prior written notice to the appraiser. The notice must include evidence of:

(i) illegal or unlawful conduct by the appraiser;

(ii) a violation of the minimum reporting standards under the REACA or other applicable statute or regulation;

(iii) failure to satisfy minimum standards required by the appraisal management company or any contract between the appraiser and the appraisal management company;

(iv) otherwise improper or unprofessional behavior; or

(v) a legitimate business reason for the removal that is not related to the appraiser’s performance.

  • PA AMC Rules and Regulations Section 36.342-(a)-(8):

(a) The following acts constitute a coercive act or practice in violation of the law and this chapter without proof of intent of the appraisal management company or its agent:

(8) Removal of an appraiser from the panel or roster of appraisers without notice and opportunity for rebuttal.

Misc

  • Must provide resolution processes for consumers and appraisers

 

  • PA AMC Rules and Regulations Section 36.311-(c)-(4,5):

(c) An appraisal management company shall establish and maintain procedures that provide assurance of compliance with the following standards of appraisal management services:

(4) Availability of a process for resolution of consumer complaints.

(5) Availability of a process for resolution of appraiser complaints.

  • Position of controlling person cannot remain vacant for more than 30 days

 

  • PA AMC Rules and Regulations Section 36.313-(f):

(f) An absence or vacancy in the position of compliance person more than 30 days is cause for suspension of an appraisal management company’s authority to conduct business until a compliance person has been designated and notice of the change has been filed with the Board as provided in § 36.314 (relating to reporting change of information.)

 

  • Registration expires June 30

 

  • PA AMC Rules and Regulations Section 36.321:

§ 36.321. Expiration of registration.

Registration expires on the last day of June of each odd-numbered year.