§ 19-9-3.1 - Mortgage loan appraisers – Relationship with lending institution.
SECTION 19-9-3.1
§ 19-9-3.1 Mortgage loan appraisers –Relationship with lending institution. – (a) Every lending institution, which accepts an application for any residentialmortgage loan or any commercial mortgage loan which requires an appraisal inorder to process the loan, is not permitted to use an appraisal company that iseither owned by or has directors, stockholders, or employees of that lendinginstitution.
(b) Each lending institution doing business in the statepursuant to a charter or license issued under this title shall, upon request ofthe director of business regulation, or his or her designee, disclose to thedirector those appraisal companies with which the lending institution has anownership interest or which have directors, stockholders, or employees of thelending institution.
(c) Any lending institution which maintains Federal DepositInsurance Corporation (FDIC) or National Credit Union Administration (NCUA)insurance protection for its deposits is exempt from the provisions of thissection.