4 Colo. Code Regs. § 725-2, ch. 18
Current through Register Vol. 47, No. 22, November 25, 2024
Chapter 18 - PROFESSIONAL STANDARDS - APPRAISAL MANAGEMENT COMPANIES18.1 An AMC must have and follow a written policy in place regarding the annual audit of appraisals completed for Colorado assignments during the previous Reporting Period. The policy must have an effective date and memorialize the dates any modifications are made. The policy must outline, at a minimum, the following: A. Appraisal Selection. The audit sample must be randomly selected and a USPAP Standard 3 Review must be performed on not less than two percent (2%) of all appraisal reports performed by appraisers for the AMC during the previous Reporting Period. A minimum of at least one (1) USPAP Standard 3 Review must be performed for each appraiser who completed a Colorado appraisal assignment during that Reporting Period.B. Risk-Based Reviews. If an AMC maintains a risk-based review process, the AMC is required to comply with Subsection A. of this Rule only for those appraisers for whom a USPAP Standard 3 Review was not performed under the risk-based appraisal review process.C. Review Criterion. The appraisals must be evaluated for compliance with state and federal regulations, including the USPAP.D. Reviewer Qualifications. The individual(s) performing the audit of the appraisals must possess a certified credential in this state or any Jurisdiction and be competent to appraise residential real estate.E. Appraisal Deficiencies. The AMC must have procedures in place to address material deficiencies that affect the value conclusion or the credibility of the report with the appraiser. Material violations of the USPAP or the Colorado Real Estate Appraiser Licensing Act must be reported to the Board. The Board may evaluate an AMC's compliance with its own audit policies during an investigation.
18.2 For each Colorado appraisal assignment, an AMC must maintain the following documents or records in a Safe and Secure Manner for a period of at least five (5) years, or at least two (2) years after the final disposition of any judicial proceeding in which a representative of the AMC provided testimony related to the assignment, whichever period expires last:A. Contractual agreements with clients.B. Any documents associated with the engagement of an appraiser used to appraise Colorado real estate.C. All correspondence with a client or an appraiser regarding a specific assignment, including an accounting of payments received from the client and paid to the appraiser.D. Appraisals, appraisal reviews, appraisal updates, recertifications of value, certificates of completion, broker price opinions or competitive market analyses, comparable property checks, rent schedules or income analyses, measurements, building sketches, and any client approved forms.E. A list of all licensed or certified appraisers on the AMC's Panel.F. Copies of final appraisal reports reviewed as set forth in Rule 18.1, findings and any subsequent correspondence with the appraiser, client, or Board.G. Copies of all processes and controls pursuant to section 12-10-614(1)(a)(II), C.R.S. Records may be maintained in electronic format, but must be produced upon request by the Board and must be in a format that has the continued capability to be retrieved and legibly printed. Upon request by the Board, printed records must be produced.18.3 For all Colorado appraisal assignments, an AMC must disclose its Colorado license number in writing in the engagement letter with an appraiser.18.4 Pursuant to section 12-10-614(1)(h), C.R.S., when a bona fide dispute exists regarding the performance or quality of an appraisal, the AMC must notify the appraiser in writing of the reason for the dispute, how the dispute may be resolved, and what payment will not be made for the appraisal until the dispute is resolved. The AMC must notify the appraiser of the dispute and grounds for nonpayment within sixty (60) days of completion of the appraisal.37 CR 15, August 10, 2014, effective 8/30/201437 CR 23, December 10, 2014, effective 1/1/201538 CR 19, October 10, 2015, effective 10/30/201539 CR 11, June 10, 2016, effective 6/30/201639 CR 23, December 10, 2016, effective 1/1/201740 CR 15, August 10, 2017, effective 8/30/201740 CR 23, December 10, 2017, effective 1/1/201841 CR 07, April 10, 2018, effective 4/30/201841 CR 15, August 10, 2018, effective 8/30/201841 CR 23, December 10, 2018, effective 12/31/201842 CR 11, June 10, 2019, effective 6/30/201942 CR 23, December 10, 2019, effective 1/1/202043 CR 23, December 10, 2020, effective 1/1/202144 CR 07, April 10, 2021, effective 4/30/202144 CR 23, December 10, 2021, effective 1/1/202245 CR 07, April 10, 2022, effective 4/30/202245 CR 19, October 10, 2022, effective 10/30/202245 CR 23, December 10, 2022, effective 12/30/202246 CR 23, December 10, 2023, effective 1/1/2024