61-2e-307 - Prohibitions related to an appraiser.
61-2e-307. Prohibitions related to an appraiser.
(1) An appraisal management company required to be registered under this chapter, or acontrolling person, employee, or agent of the appraisal management company may not influenceor attempt to influence the development, reporting, or review of an appraisal through:
(a) coercion;
(b) extortion;
(c) collusion;
(d) compensation;
(e) instruction;
(f) inducement;
(g) intimidation;
(h) bribery; or
(i) any other manner that would constitute undue influence.
(2) A violation of Subsection (1) includes doing one or more of the following for apurpose listed in Subsection (1):
(a) withholding or threatening to withhold timely payment for an appraisal;
(b) withholding or threatening to withhold future business for an appraiser;
(c) taking adverse action or threatening to take adverse action against an appraiserregarding use of the appraiser for a real estate appraisal activity;
(d) expressly or by implication promising future business or increased compensation foran appraiser;
(e) conditioning one or more of the following on the opinion, conclusion, or valuation tobe reached, or on a preliminary estimate or opinion requested from an appraiser:
(i) a request for a real estate appraisal activity; or
(ii) the payment of consideration;
(f) requesting that an appraiser provide at any time before the appraiser's completion of areal estate appraisal activity:
(i) an estimated, predetermined, or desired valuation in an appraisal report; or
(ii) an estimated value or comparable sale;
(g) except for a copy of a sales contract for a purchase transaction, providing to anappraiser:
(i) an anticipated, estimated, encouraged, or desired value for a subject property; or
(ii) a proposed or target amount to be loaned to the borrower;
(h) providing to an appraiser, or an individual related to the appraiser, stock or otherfinancial or non-financial benefits;
(i) allowing the removal of an appraiser from an appraiser panel, without prior writtennotice to the appraiser as required by Section 61-2e-306;
(j) obtaining, using, or paying for a subsequent appraisal or ordering an automatedvaluation model in connection with a mortgage financing transaction unless:
(i) (A) there is a reasonable basis to believe that the initial appraisal does not meetapplicable appraisal standards; and
(B) the reasonable basis is noted in the loan file; or
(ii) the subsequent appraisal or automated valuation model is done pursuant to a pre- orpost-funding appraisal review or quality control process in accordance with applicable appraisalstandards;
(k) compensating an appraiser in a manner that the person should reasonably have knownwould result in the appraiser not conducting a real estate appraisal activity in a manner consistentwith applicable appraisal standards;
(l) engaging in the business of an appraisal management company under an assumed orfictitious name not properly registered in this state;
(m) accepting a contingent fee for performing an appraisal management service if the feeis contingent on:
(i) the appraiser report having a predetermined analysis, opinion, or conclusion;
(ii) the analysis, opinion, conclusion, or valuation reached in an appraisal report; or
(iii) the consequences resulting from the appraisal assignment; or
(n) any other act or practice that impairs or attempts to impair an appraiser'sindependence, objectivity, or impartiality.
(3) This section may not be construed to prohibit an appraisal management companyfrom requesting that an appraiser:
(a) provide additional information about the basis for a valuation; or
(b) correct an objective factual error in an appraisal report.
(4) An appraisal management company required to be registered under this chapter, or acontrolling person, employee, or agent of the appraisal management company may not alter,modify, or otherwise change a completed appraisal report submitted by an appraiser.
Enacted by Chapter 269, 2009 General Session