Section 43-23.5-01 - DefinitionsAs used in this chapter, unless the context otherwise requires:
1. "Appraisal firm" means any person or entity that exclusively employs persons on an employer and employee basis for the performance of real estate appraisal services in the normal course of its business and the real estate appraisal services being performed are in accordance with the uniform standards of professional appraisal practices.2. "Appraisal management company" means, in connection with valuing properties collateralizing mortgage loans or mortgages incorporated into a securitization, any external third party that oversees a network or panel of more than fifteen certified or licensed appraisers in this state or twenty-five or more nationally within a given year, that is authorized either by a creditor of a consumer credit transaction secured by a consumer's principal dwelling or by an underwriter or other principal in the secondary mortgage markets that engages in appraisal management services.3. "Appraisal management services" means to, directly or indirectly, perform any of the following functions on behalf of a lender, financial institution, client, or any other person in conjunction with a consumer credit transaction that is secured by a consumer's primary dwelling: a. Administer an appraiser panel.b. Recruit, retain, or select appraisers.c. Qualify, verify licensing or certification, and negotiate fees and service level expectations with persons who are part of an appraiser panel.d. Contract with appraisers to perform appraisal assignments.e. Receive an order for an appraisal from one person, and deliver the order for the appraisal to an appraiser that is part of an appraiser panel for completion.f. Manage the process of having an appraisal performed, including providing administrative duties, such as receiving appraisal orders and reports, submitting completed appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for services provided, and reimbursing appraisers for services performed.g. Track and determine the status of appraisal orders.h. Conduct an appraisal review or other quality control of a completed appraisal prior to the delivery of the appraisal to the person that ordered the appraisal.i. Provide a completed appraisal performed by an appraiser to one or more clients.4. "Appraisal review" means the act or process of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal assignment related to the appraiser's data collection, analysis, opinions, conclusions, estimate of value, or compliance with the uniform standards of professional appraisal practice. This term does not include: a. A general examination for grammatical, typographical, or other similar errors.b. A general examination for completeness, including regulatory client requirements, or both, as specified in the agreement process that does not communicate an opinion.5. "Appraiser panel" means a network of licensed or certified appraisers who have:a. Responded to an invitation, request, or solicitation from an appraisal management company, in any form, to perform appraisals for persons that have ordered appraisals through the appraisal management company, or to perform appraisals for the appraisal management company directly, on a periodic basis, as requested and assigned by the appraisal management company.b. Been selected and approved by an appraisal management company to perform appraisals for any client of the appraisal management company that has ordered an appraisal through the appraisal management company, or to perform appraisals for the appraisal management company directly, on a periodic basis, as assigned by the appraisal management company.6. "Board" means the North Dakota real estate appraiser qualifications and ethics board.7. "Controlling person" means:a. An officer, director, or owner of greater than a ten percent interest of a corporation, partnership, or other business entity seeking to act as an appraisal management company in this state.b. An individual employed, appointed, or authorized by an appraisal management company that has the authority to enter a contractual relationship with other persons for performance of services requiring registration as an appraisal management company and has the authority to enter agreements with appraisers for the performance of appraisals.c. An individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company.8. "Federal financial institutions regulatory agencies" includes the board of governors of the federal reserve system, the federal deposit insurance corporation, the office of the comptroller of the currency, and the national credit union administration.9. "Federally related transaction" means any real estate-related financial transaction which a federal financial institutions regulatory agency or the resolution trust corporation engages in, contracts for, or regulates, and requires the services of an appraiser.10. "Real estate-related financial transaction" means any transaction involving: a. The sale, lease, purchase, investment in, or exchange of real property, including interests in property or the financing thereof.b. The refinancing of real property or interests in real property.c. The use of real property or interests in property as security for a loan or investment, including mortgage-backed securities.Added by S.L. 2013, ch. 325 (HB 1389),§ 2, eff. 7/1/2013. See S.L. 2013, ch. 325 (HB 1389), § 3.