Sec.20-529e-12. Appraisal management company prohibitions and requirements. Payment to appraisers

(a) Appraisal management companies shall adhere to the following business practices when performing appraisal management services related to properties located within the state of Connecticut:

(1) Appraisal management companies shall delegate appraisal assignments for completion only to appraisers who possess the certifications required by the department.

(2) Appraisal management companies shall adopt reasonable procedures designed to ensure that all appraisal assignments completed by its independent contractors or employee appraisers are performed in accordance with the USPAP.

(b) Appraisal management companies shall maintain records of each of the following for each appraisal request:

(1) Date of the receipt of the request for the appraisal;

(2) The name of the person from whom the request was received, if not an employee of the client;

(3) The name of the client for whom the request was made;

(4) The name of the appraiser or appraisers assigned to perform the contracted service; and

(5) The date of delivery of the appraisal product to the client.

(c) Appraisal management companies shall maintain records of all appraisal fees dispersed to contracted appraisers and the final fee charged to the lender or client.

(d) An appraisal management company shall not prohibit a contracted appraiser or client from disclosing the fee paid to the appraiser or client for an appraisal assignment in the body of the appraisal report.

(e) Nothing in section 20-529e-7 of the Regulations of Connecticut State Agencies shall be construed to prohibit an appraisal management company or the client in a real estate transaction from requesting that an appraiser:

(1) Consider additional appropriate property information including relevant sales comparables not considered in the initial appraisal report;

(2) Provide further detail, substantiation or explanation of the appraiser's conclusion of value; or

(3) Correct errors in the appraisal report.

(f) The appraisal management company shall not base the payment of an appraisal fee on a mortgage-related event occurring subsequent to completion of the appraisal.

(g) The appraiser shall not be required to provide the appraisal management company with the appraiser's digital signature.

(h) The appraisal management company shall not alter, amend, or change an appraisal report submitted by a certified appraiser by removing the appraiser's signature or seal or by adding information to or removing information from the appraisal report.

(i) The appraisal management company shall not remove an independent appraiser from its panel of approved appraisers without prior written notice that includes evidence the appraiser has violated chapter 400g of the Connecticut General Statutes, the USPAP, or other applicable appraisal regulations, or evidence which demonstrates substandard performance, improper or unprofessional behavior, or other substantive deficiencies.

(j) The appraiser shall have thirty days to respond to the notice given pursuant to subsection (i) of this section. Such notice shall be sent to the appraiser by registered mail, return receipt requested, to the appraiser's business address contained in the records of the commission.

(k) The commissioner shall make the final determination as to any alleged violations. There shall be no adverse action taken against an appraiser who had been accused of a violation of an applicable section of sections 20-529e-1 to 20-529e-17, inclusive, of the Regulations of Connecticut State Agencies or chapter 400g of the Connecticut General Statutes if the commissioner has made a finding of no cause against the appraiser. Such prohibited adverse action includes, but is not limited to, a reduction in assignments, a reduction in order of appraisals, or otherwise penalizing the appraiser.

(Effective November 10, 2015; Amended September 30, 2021)