TITLE 16 OCCUPATIONAL
AND PROFESSIONAL LICENSING
CHAPTER 65 REAL
ESTATE APPRAISAL MANAGEMENT COMPANIES
PART 1 GENERAL PROVISIONS
16.65.1.1 ISSUING AGENCY: State
of New Mexico Real Estate Appraisers Board.
[16.65.1.1 NMAC - N, 10/16/09]
16.65.1.2 SCOPE: All
real estate appraisal management companies registered and applying for
registration with the board.
[16.65.1.2 NMAC - N, 10/16/09]
16.65.1.3 STATUTORY AUTHORITY: These
rules are promulgated pursuant to the Appraisal Management Company Registration
Act (NMSA 1978, Sections 47-14-1 through -23).
[16.65.1.3 NMAC - N, 10/16/09]
16.65.1.4 DURATION:
Permanent.
[16.65.1.4 NMAC - N, 10/16/09]
16.65.1.5 EFFECTIVE DATE:
October 16, 2009, unless a later date is cited at the end of a section.
[16.65.1.5 NMAC - N, 10/16/09]
16.65.1.6 OBJECTIVE: The
objective of Part 1 is to set forth the provisions, which apply to all of
Chapter 65, and to all persons affected or regulated by Chapter 65 of Title 16.
[16.65.1.6 NMAC - N, 10/16/09]
16.65.1.7 DEFINITIONS: All
words and terms defined in the Appraisal Management Company Registration Act
have the same meaning in these rules.
A. Terms starting with the letter ‘A’ are defined
as follows:
(1) “Act” means the Real Estate Appraisal Management Company Registration Act.
(2) “Applicant”
means a company who has submitted an application to the board seeking
registration.
(3) “Appraisal”
means the act or process of developing an opinion of the value of real property
in conformance with the uniform standards for professional appraisal practice
published by the appraisal foundation.
(4) “Appraisal
foundation” means the appraisal foundation incorporated as an Illinois
not-for-profit corporation on November 30, 1987, and which reference is made in
the federal Financial Institutions Examination Council Act of 1978, as amended
by Title 11, Real Estate Appraisal Reform Amendments.”
(5) “Appraisal
management company’ (AMC) means;
(a) any external third party that oversees a network or panel of
more than 15
certified or licensed
appraisers in a state or 25 or more nationally within a given year to:
(i) recruit,
select and retain appraisers;
(ii) contract with appraisers to perform appraisal assignments;
(iii) manage the process of having an appraisal performed; or
(iv) review and verify the work of appraisers; or
(b) any external third party that contracts with a qualifying
licensed real estate broker or associate
broker as defined in Chapter 61, Article 29 NMSA 1978 to provide broker price
opinions.
(6) “Appraisal
management services” means:
(a) to recruit, select, and retain appraisers;
(b) to contract with licensed and certified appraisers to
perform appraisal assignments;
(c) to
manage the process of having an appraisal performed, including providing
administrative duties such as receiving appraisal orders and appraisal reports,
submitting completed appraisal reports to creditors and underwriters,
collecting fees from creditors and underwriters for services provided, and reimbursing
appraisers for services performed; or
(d) to review and verify the work of appraisers.
(7) “Appraisal review” 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, or an appraisal review.
(8) “Appraisal
review report” is a report that develops or communicates an opinion about the
quality of another appraiser work that was performed as part of an appraisal.
(9) “Appraisers
Act” means the New Mexico Real Estate Appraisers Act as defined in Section
61-30-1 NMSA 1978.
(10) “Assignment”
means one or more real estate appraisals and written appraisal report(s)
covered by a single contractual agreement for a specified number of properties.
B. Terms starting with the letter ‘B’ are defined
as follows:
(1) “Board”
means the New Mexico real estate appraisers board.
(2) “Board
file” means all documents that an AMC is required to create and maintain for
the board.
C. Terms starting with the letter ‘C’ are defined
as follows:
(1) “Client”
means a person or entity that contracts with, or otherwise enters into an
agreement with an appraisal management company for the performance of real
estate appraisal services.
(2) “Complaint
committee” is a board appointed committee that is composed for the purpose of
reviewing complaints and making recommendation to the board as to its findings.
(3) “Controlling
person” (CP) means:
(a) an owner, officer or director of a corporation,
partnership, limited liability company or other business entity seeking to
offer appraisal management services in this state;
(b) an
individual employed, appointed or authorized by an appraisal management company
that has the authority to enter into a contractual relationship with clients
for the performance of appraisal management services and that has the authority
to enter into agreements with independent for the performance of real estate
appraisal services; or
(c) an individual who possesses, directly or indirectly, the
power to direct or cause the direction of the management or polices of
appraisal management companies.
(4) “Clerical
review” is a non-standard three review of the completeness of the appraisal.
D. Terms starting with the letter ‘D’.
[Reserved]
E. Term starting with the letter ‘E’ is defined as follows:
(1) “Employee
in charge (EIC)” means a designated employee of the appraisal management company,
with the responsibilities and obligations to the board set forth with these
rules.
(2) “Evaluation”
is a valuation permitted by the board’s appraisal regulations for transactions
that qualify for the appraisal threshold exception, business loan exception, or
subsequent transaction exception.
F. Term starting with the letter ‘F’ is defined as follows: “FIRREA” means the Financial Institutions
Reform, Recovery and Enforcement Act of 1989, and its amendments.
G. Terms
starting with the letter ‘G’. [Reserved]
H. Terms
starting with the letter ‘H’. [Reserved]
I. Terms
starting with the letter ‘I’. [Reserved]
J. Terms
starting with the letter ‘J’. [Reserved]
K. Terms
starting with the letter ‘K’. [Reserved]
L. Terms starting with the letter ‘L’.
[Reserved]
M. Terms
starting with the letter ‘M’. [Reserved]
N. Term starting with the letter ‘N’ is defined as follows: “Nonresident appraiser” means an individual
or entity that holds a current registration or license in another state.
O. Term starting with the letter ‘O’ is defined as follows: “Outsourced
appraisal review” is an appraisal review conducted by a licensed appraiser who
is not an employee of the AMC.
P. Terms
starting with the letter ‘P’ are defined as follows.
(1) “Panel”
means a group of independent appraisers that have been selected by an appraisal
management company to perform real estate appraisal services for the appraisal
management company.
(2) “Peer
review” is an opinion as to the completeness of another appraiser’s work;
completed by a licensed appraiser of similar experience and qualifications for
the purpose of making a recommendation to the board as to its findings.
Q. Terms starting with the letter ‘Q’.
[Reserved]
R. Terms starting with the letter
‘R’. [Reserved]
S. Term starting with the letter ‘S’ is defined as follows: “Staff appraiser” is an appraiser hired by an
AMC as an employee, who is licensed by the board, to act as an appraiser and is
subject to these rules.
T. Terms starting with the letter ‘T’.
[Reserved]
U. Term starting with the letter ‘U’ is defined as follows: “Uniform standards of professional appraisal
practice (USPAP)” means the uniform standards or professional appraisal
practice promulgated by the appraisal foundation and adopted by rules pursuant
to the Real Estate Appraiser Act. USPAP deals with the procedures to be
followed in which an appraisal, analysis, or opinion is communicated.
V. Terms starting with the letter ‘V’. [Reserved]
W. Term starting with
the letter ‘W’ is defined as follows: “Work file” is documentation necessary
to support an appraiser’s analyses, opinions, and conclusions.
X. Terms starting with the letter ‘X’. [Reserved]
Y. Terms starting with the letter ‘Y’. [Reserved]
Z. Terms starting with the letter ‘Z’. [Reserved]
[16.65.1.7 NMAC - N, 10/16/09; A, 01/01/2015;
A, 01/15/2017; A, 02/03/2019]
16.65.1.8 PUBLIC RECORDS:
Except as protected by law, public records shall be available for
inspection in accordance with the provisions of the Inspection of Public
Records Act (IPRA), Sections 14-2-1 through -12, NMSA 1978, (1974, as amended
through 2009). Cost will be determined
by regulation and licensing department.
[16.65.1.8 NMAC -
N, 10/16/09]
16.65.1.9 SEVERABILTY: The
provisions of these regulations are servable. If any part of the regulations is
held invalid by a court of competent jurisdiction, the remaining provisions
shall remain in force and effect, unless otherwise determined by a court of competent
jurisdiction.
[16.65.1.9 NMAC - N, 10/16/09]
16.65.1.10 1NCORPORATION: The
rules and regulations of the New Mexico real estate appraisers board are hereby
incorporated by reference and shall govern all appraisals conducted pursuant
the Appraisal Management Company Registration Act.
[16.65.1.10 NMAC - N, 10/16/09]
HISTORY OF 16.65.1 NMAC: [Reserved]