N.J. Admin. Code § 13:40A-9.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:40A-9.6 - Annual certification; AMC responsibilities

(a) Each State-registered appraisal management company shall certify to the Board, annually, on a form provided by the Board, that it:

1. Requires appraisers completing appraisals, including appraisal reviews, at its request to comply with the Uniform Standards of Professional Appraisal Practice, including the requirements for geographic and product competence;

2. Has a system in place to verify that only licensed or certified appraisers are used for appraisals covered in this subchapter, including, but not limited to, those performed for Federally related transactions, appraisals pursuant to the provisions of the N.J.S.A. 45:14F-1 et seq., and this chapter;

3. Has a system in place to verify that an individual on the appraiser panel has not had a license or certification as an appraiser refused, denied, cancelled, revoked, or surrendered in lieu of a pending revocation;

4. 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 1639e of the Federal Truth in Lending Act, Pub. L. 90-321 (15 U.S. C. § 1639e) , including the requirements for payment of customary and reasonable compensation to fee appraisers when the appraisal management company is providing services for a consumer credit transaction secured by the principal dwelling of a consumer; and

5. Is in compliance with State laws and rules.

(b) Each State-registered appraisal management company shall certify to the Board, annually, by submission of a statement signed by the appraisal management company, that it maintains a detailed record of each service request that it receives and the name of the appraiser that performs the appraisal for the appraisal management company.

1. Detailed records include, but are not limited to, a copy of:

i. The assignment order or service request identifying the end-user client;

ii. Each assignment result, including revised reports, addenda, certifications, and any webform communications;

iii. Any and all correspondence between the appraisers, the registrant, and any other entity or party related to the assignment;

iv. Any copy of any quality control review related to the assignment;

v. Any review not consistent with a quality control review;

vi. All fee schedules maintained and used by the registrant for the purpose of compliance with the provisions of the Truth in Lending Act, Pub. L. 90-321 (15 U.S.C. § 1639e) relating to customary and reasonable fees. The fee schedules shall be definitive in nature; and

vii. Any roster of New Jersey active and approved fee panel appraiser vendors, including the name of the appraiser, each appraiser's State credential number, the date the appraiser was placed on the panel, and the date and reason an appraiser was removed from the panel.

2. Records shall be retained for a period of at least five years after an appraisal is completed or two years after final disposition of a judicial proceeding related to the assignment, whichever period expires later.

(c) The annual certifications required under this section shall be submitted to the Board by December 31 of each calendar year.

(d) Prior to assigning appraisal orders, an appraisal management company shall have a system in place to verify that a person being added to the appraiser panel holds the appropriate State-issued appraiser credential in good standing.

(e) Each registered appraisal management company shall disclose its Board-issued registration number on all engagement documents presented to the appraiser.

N.J. Admin. Code § 13:40A-9.6

Adopted by 51 N.J.R. 1124(a), effective 7/1/2019