Section 17-14-402 - DefinitionsAs used in this subchapter:
(1) "Affiliate" means any company that controls, is controlled by, or is under common control with another company;(2)(A) "Appraisal management company" means a person that:(i) Provides appraisal management services to creditors or to secondary mortgage market participants, including affiliates;(ii) Provides such services in connection with valuing a consumer's principal dwelling as securitizations; and(iii) Within a given twelve-month period, oversees an appraiser panel of more than fifteen (15) state-certified or state-licensed appraisers in a state or twenty-five (25) or more state-certified or state-licensed appraisers in two (2) or more states.(B) An appraisal management company does not include a department or division of an entity that provides appraisal management services only to that entity;(3) "Appraisal Management Company National Registry" means the registry of state-registered appraisal management companies and federally regulated appraisal management companies maintained by the Appraisal Subcommittee of the Federal Financial Institutions Examination Council;(4) "Appraisal management services" means one (1) or more of the following activities: (A) Recruiting, selecting, and retaining appraisers;(B) Contracting with state-certified or state-licensed appraisers to perform appraisal assignments;(C) Managing the process of having an appraisal performed, including without limitation providing administrative services such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and secondary market participants, collecting fees from creditors and secondary market participants for services provided, and paying appraisers for services performed; and(D) Reviewing and verifying the work of appraisers;(5) "Appraisal services" means the practice of developing an opinion of the value of real property in conformance with the minimum reporting standards under § 17-14-202(b);(6) "Appraisal Subcommittee" means the Appraisal Subcommittee of the Federal Financial Institutions Examination Council;(7) "Appraiser" means an individual licensed under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., who for a fee or other consideration develops and communicates a real estate appraisal or otherwise gives an opinion of the value of real estate or any interest in real estate;(8) "Appraiser panel" means a group, pool, network, list, or roster of licensed or certified appraisers approved to perform appraisal services as independent contractors for the appraisal management company;(10) "Client" means a person that contracts with or otherwise enters into an agreement with an appraisal management company for the performance of appraisal services;(11) "Controlling person" or "managing principal" means an:(A) Owner, officer, or director of an appraisal management company;(B) Individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with other persons for the performance of appraisal management services and the authority to enter into agreements with appraisers for the performance of appraisals; or(C) Individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company;(12) "Covered transaction" means any consumer credit transaction secured by the principal dwelling of the consumer;(13) "Creditor" means a person that regularly extends consumer credit:(A) That is subject to a finance charge or is payable by written agreement in more than four (4) installments, not including a down payment, and to whom the obligation is initially payable, either on the face of the note or contract, or by agreement when there is no note or contract; or(B)(i) If the person extended credit more than five (5) times for a transaction secured by a dwelling in the preceding calendar year.(ii) If a person meets the numerical standards under subdivision (13)(B)(i) of this section in the preceding calendar year, the numerical standards shall be applied to the current calendar year.(iii) A person regularly extends consumer credit if, in any twelve-month period, the person originates more than one (1) credit extension that is subject to the requirements of 12 C.F.R. § 1026.32 or one (1) or more credit extensions through a mortgage broker;(14)(A) "Dwelling" means a residential structure that contains one to four (1-4) units, whether or not that structure is attached to real property.(B) A dwelling includes an individual condominium unit, cooperative unit, mobile home, and trailer if it is used as a residence.(C)(i) A consumer can have only one (1) principal dwelling at a time.(ii) A vacation home or other second home is not a principal dwelling.(iii) However, if a consumer buys or builds a new dwelling that will become the principal dwelling of the consumer within a year or upon the completion of construction, the new dwelling is considered the principal dwelling under this section;(15) "Federally regulated appraisal management company" means an appraisal management company that is owned and controlled by an insured depository institution as defined under 12 U.S.C. § 1813, and regulated by the United States Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation;(16) "Federally related transaction regulations" means regulations established by the United States Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration, under Sections 1112, 1113, and 1114 of Title XI of Pub. L. No. 101-73, 12 U.S.C. §§ 3341- 3343;(17) "Person" means a natural person or an organization, including without limitation a corporation, partnership, proprietorship, association, cooperative, estate, trust, or government unit;(18) "Registrant" means an appraisal management company or person that is registered under this subchapter;(19)(A) "Secondary mortgage market participant" means a guarantor or insurer of mortgage-backed securities or an underwriter or issuer of mortgage-backed securities.(B) Secondary mortgage market participant only includes an individual investor in a mortgage-backed security if that investor also serves in the capacity of a guarantor, insurer, underwriter, or issuer for the mortgage-backed security;(20) "States" means the fifty (50) states, the District of Columbia, and the territories of Guam, Mariana Islands, Puerto Rico, and the U.S. Virgin Islands; and(21) "Uniform Standards of Professional Appraisal Practice" means the appraisal standards promulgated by the Appraisal Standards Board of the Appraisal Foundation.Amended by Act 2023, No. 628,§ 35, eff. 7/1/2023.Amended by Act 2017, No. 535,§ 4, eff. 3/20/2017.