HLS 12RS-1426 ORIGINAL
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are additions.
Regular Session, 2012
HOUSE BILL NO. 1014
BY REPRESENTATIVE HOFFMANN
REAL ESTATE/APPRAISERS: Provides relative to appraisal management companies
AN ACT1
To amend and reenact R.S. 37:3415.13 and 3415.21 and to enact R.S. 37:3415.2(11), (12),2
(13), and (14), 3415.3(C), and 3415.15, relative to appraisal management companies;3
to define certain terms; to require an appraiser's license to perform appraisal reviews;4
to provide that administrative reviews of an appraisal do not require an appraiser's5
license; to provide for the competency of appraisers; to provide for customary and6
reasonable fees for appraisers; to provide for increased fees for complex appraisals;7
to provide for disclosure of fees paid to appraisers by appraisal management8
companies; to provide for the disclosure of administration fees charged by appraisal9
management companies; to repeal the requirement that administrative rules receive10
affirmative approval from the Louisiana Legislature; to repeal an outdated11
grandfathering clause; and to provide for related matters.12
Be it enacted by the Legislature of Louisiana:13
Section 1. R.S. 37:3415.13 and 3415.21 are hereby amended and reenacted and R.S.14
37:3415.2(11), (12), (13), and (14), 3415.3(C), and 3415.15 are hereby enacted to read as15
follows: 16
§3415.2. Definitions17
As used in this Chapter, the following words have the meaning ascribed to18
them in this Section unless the context clearly indicates otherwise:19
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(11) "Administrative review", "compliance review", "quality check", or1
"QC" means a process that checks an appraisal report for compliance with the2
Uniform Standards of Professional Appraisal Practice or other stipulated3
requirements.4
(12) "Appraisal review" or "technical review" means the act or process of5
developing and communicating an opinion about the quality of an appraiser's work.6
(13) "Fee appraiser" means a person who is not an employee of the mortgage7
loan originator or appraisal management company engaging the appraiser and is one8
of the following:9
(a) A state-licensed or certified appraiser who receives a fee for performing10
an appraisal and certifies that the appraisal has been prepared in accordance with the11
Uniform Standards of Professional Appraisal Practice.12
(b) A company not subject to the requirements of §1124 of the Financial13
Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. 3331 et14
seq., that utilizes the services of state-licensed or certified appraisers and receives a15
fee for performing appraisals in accordance with the Uniform Standards of16
Professional Appraisal Practice. 17
(14) "Uniform settlement statement" means the standard form described in18
12 U.S.C. 2603(a).19
§3415.3. License required20
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C.(1) A person who performs an appraisal review for an appraisal22
management company shall be licensed or certified, with at least the same23
certification for the property type as the appraiser who completed the report being24
reviewed.25
(2) An administrative review may be performed by any individual, including26
a certified appraiser.27
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§3415.13. Adherence to standards; competency1
A. Each appraisal management company seeking to be licensed in this state2
shall certify to the board on an annual basis that it has a system in place to review on3
a periodic basis the work of all appraisers that are performing real estate appraisal4
services for the appraisal management company to ensure that the real estate5
appraisal services are being conducted in accordance with Uniform Standards of6
Professional Appraisal Practice.7
B. Before making an assignment to an appraiser, an appraisal management8
company shall verify that the appraiser receiving the assignment satisfies each9
provision of the competency rule of the Uniform Standards of Professional Appraisal10
Practice for the appraisal being assigned.11
* * *12
§3415.15. Fees; customary and reasonable; disclosure13
A.(1) Lenders and their agents shall compensate fee appraisers at a rate that14
is customary and reasonable for appraisal services performed in the market area of15
the property being appraised. Evidence for such fees may be established by16
objective third-party information, such as government agency fee schedules,17
academic studies, and independent private sector surveys. Fee studies shall exclude18
assignments ordered by known appraisal management companies.19
(2) In the case of an appraisal involving a complex assignment, the fee may20
reflect the increased time, difficulty, and scope of the work required for such an21
appraisal and may include an amount over and above the customary and reasonable22
fee for noncomplex assignments.23
B. In the case of an appraisal coordinated by an appraisal management24
company, the uniform settlement statement shall include a clear disclosure of both25
of the following:26
(1) The fee paid directly to the appraiser by such company.27
(2) The administration fee charged by such company. 28
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§3415.21. Rulemaking authority; effective date1
A. The board shall have the power to may adopt any rules and regulations2
in accordance with the Administrative Procedure Act necessary for the enforcement3
of this Chapter.4
B. Notwithstanding any law to the contrary, these rules shall require the5
affirmative approval by the House of Representatives Committee on Commerce and6
the Senate Committee on Commerce, Consumer Protection and International Affairs.7
C. Any appraisal management company doing business in this state at the8
time of passage of this Act, may continue to perform such services without a license9
until the earlier of either such time that the rules and regulations pertaining to this10
Chapter have been approved in accordance with Subsections A and B of this Section11
or January 1, 2011.12
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Hoffmann HB No. 1014
Abstract: Provides for appraisal reviews by licensed appraisers; establishes guidelines for
fees to be paid to appraisers; and requires an appraisal management company to
confirm the competency level of an appraiser prior to assignment.
Proposed law defines "administrative review", "compliance review", "quality check", or
"QC" as a process that checks an appraisal report for compliance with the Uniform Standards
of Professional Appraisal Practice or other stipulated requirements.
Proposed law defines "appraisal review" or "technical review" as the act or process of
developing and communicating an opinion about the quality of an appraiser's work.
Proposed law defines "fee appraiser" as a person who is not an employee of the mortgage
loan originator or appraisal management company engaging the appraiser and is one of the
following:
(1)A state-licensed or certified appraiser who receives a fee for performing an appraisal
and certifies that the appraisal has been prepared in accordance with the Uniform
Standards of Professional Appraisal Practice.
(2)A company not subject to the requirements of §1124 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 that utilizes the services of state-
licensed or certified appraisers and receives a fee for performing appraisals in
accordance with the Uniform Standards of Professional Appraisal Practice. HLS 12RS-1426 ORIGINAL
HB NO. 1014
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are additions.
Proposed law defines "uniform settlement statement" as the standard form described in 12
U.S.C. 2603(a).
Proposed law requires a person who performs an appraisal review for an appraisal
management company to be licensed or certified, with at least the same certification for the
property type as the appraiser who completed the report being reviewed.
Proposed law provides that an administrative review may be performed by any individual,
including a certified appraiser.
Proposed law requires an appraisal management company, before making an assignment to
an appraiser, to verify that the appraiser receiving the assignment satisfies each provision
of the competency rule of the Uniform Standards of Professional Appraisal Practice for the
appraisal being assigned.
Proposed law requires lenders and their agents to compensate fee appraisers at a rate that is
customary and reasonable for appraisal services performed in the market area of the property
being appraised.
Proposed law provides that evidence for such fees may be established by objective
third-party information, such as government agency fee schedules, academic studies, and
independent private sector surveys. Proposed law further provides that fee studies shall
exclude assignments ordered by known appraisal management companies.
Proposed law provides that, in the case of an appraisal involving a complex assignment, the
fee may reflect the increased time, difficulty, and scope of the work required for such an
appraisal and may include an amount over and above the customary and reasonable fee for
noncomplex assignments.
Proposed law requires, in the case of an appraisal coordinated by an appraisal management
company, the uniform settlement statement to include a clear disclosure of both of the
following:
(1)The fee paid directly to the appraiser by such company.
(2)The administration fee charged by such company.
Present law authorizes the board to adopt any rules and regulations necessary for the
enforcement of present law.
Proposed law retains present law but makes technical changes.
Present law requires the rules to obtain the affirmative approval of the House Committee on
Commerce and the Senate Committee on Commerce, Consumer Protection, and International
Affairs.
Proposed law repeals present law.
Present law provides that any appraisal management company doing business in this state
at the time of passage of present law, may continue to perform such services without a
license until the earlier of either such time that the rules and regulations pertaining to present
law have been approved in accordance with present law or Jan. 1, 2011.
Proposed law repeals present law.
(Amends R.S. 37:3415.13 and 3415.21; Adds R.S. 37:3415.2(11), (12), (13), and (14),
3415.3(C), and 3415.15)