N.M. Admin. Code § 16.65.2.8

Current through Register Vol. 35, No. 20, October 22, 2024

Section 16.65.2.8 - AMC REGISTRATION REQUIREMENTS

Each AMC applying to the board for registration shall:

A. designate one controlling person (CP) that will submit to service of process;

B. designate one employee in charge (EIC) that will be the main contact for all communication between the board and the AMC (CP may be designated as the EIC, if that person meets all qualifications required by the board);

C. specify all entities doing business as (DBA) under the AMC;

D. certify that all appraisers added to the panel of the AMC hold a New Mexico license and certificate in good standing as an appraiser;

E. the AMC shall evaluate all appraisers within the renewal period to ensure that the real estate appraisal services are being conducted in accordance with the uniform standards of professional appraisal practices and board rules;

F. maintains a board file, containing:

(1) a detailed record of each appraisal assignment with the corresponding engagement letter and the independent appraiser that performs the real estate appraisal services for the AMC;

(2) certification and evaluation of all appraisers, as required under Subsections C and D;

(3) list of all non-taxable transaction certificates issued;

(4) a detailed record of the process and criteria that the AMC has in place to review the work of appraisers; and

(5) written procedure for contracting with and paying appraisers.

(6) a list of all appraisers who performed an appraisal in connection with a transaction secured by a consumer's principal dwelling or by an underwriter of or other principal in the secondary mortgage markets in New Mexico during the previous year.

G. maintain a bond or other equivalent means of surety:

(1) a bond of twenty-five thousand dollars ($25,000) shall be underwritten by a corporate surety authorized to transact business in New Mexico; such bond shall meet the following conditions:

(a) payments from a bond required pursuant to this section shall only be used to cure violations caused by a registrant, confirmed by the board;

(b) claims against the bond shall be made within two years following the board's final decision and order, finding a violation;

(c) bonds shall be construed so that the corporate surety may pay claimants directly, upon approval by the board;

(d) the total aggregate liability of the surety for all claims shall be limited to the face amount of the board;

(e) the bond carrier shall provide to the board and to the AMC thirty days prior written notice of intent to cancel a bond required pursuant to this section; the surety for such a bond shall remain liable under the provisions of the bond for all obligations of the principal pertaining to bond terms that occur before the bond is canceled, expires or otherwise becomes ineffective;

(f) failure to maintain the bond for the period required by law is cause for revocation of the AMC registration; and

(g) if the bond is canceled, expires or otherwise becomes ineffective during the period of the registration, the AMC shall immediately notify the board; if the AMC has not provided proof of a new bond before the fortieth day after the date on which the bond was canceled, expired or otherwise became ineffective, the AMC shall be subject to revocation of its registration for failure to maintain a bond;

(2) as an equivalent means of surety, an AMC may maintain an agreement of cash collateral assignment executed with a state or national bank or federally insured savings association authorized to do business in New Mexico as trustee; interest, if any, accumulating on the cash collateral assignment shall accrue to the AMC.

N.M. Admin. Code § 16.65.2.8

16.65.2.8 NMAC - N, 10/16/09; A, 01/16/11, Amended by New Mexico Register, Volume XXV, Issue 23, December 15, 2014, eff. 1/1/2015, Amended by New Mexico Register, Volume XXX, Issue 01, January 15, 2019, eff. 2/3/2019