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Regular Session, 2012
HOUSE BILL NO. 823
BY REPRESENTATIVE GREENE
AN ACT1
To amend and reenact R.S. 37:3415.3(B)(10) and (11), 3415.13, and 3415.21 and to enact2
R.S. 37:3415.2(11), (12), and (13), 3415.3(C) and (D), and 3415.15, relative to real3
estate appraisals; to define certain terms; to require an appraiser's license to perform4
appraisal reviews; to provide that administrative reviews of an appraisal do not5
require an appraiser's license; to require a surety bond; to provide for the competency6
of appraisers; to provide for customary and reasonable fees for appraisers; to provide7
for disclosure of fees paid to appraisers by appraisal management companies; to8
provide for the disclosure of administration fees charged by appraisal management9
companies; to require that administrative rules receive affirmative approval from the10
Louisiana Legislature; to repeal an outdated grandfathering clause; to provide for11
applicability; and to provide for related matters.12
Be it enacted by the Legislature of Louisiana:13
Section 1. R.S. 37:3415.3(B)(10) and (11), 3415.13, and 3415.21 are hereby14
amended and reenacted and R.S. 37:3415.2(11), (12), and (13), 3415.3(C) and (D), and15
3415.15 are hereby enacted to read as 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
* * *20
(11) "Administrative review", "compliance review", "quality check", or21
"QC" means a process that checks an appraisal report for compliance with the22 ENROLLEDHB NO. 823
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Uniform Standards of Professional Appraisal Practice or other stipulated1
requirements.2
(12) "Appraisal review" means the act or process of developing and3
communicating an opinion about the quality of another appraiser's work that was4
performed as part of an appraisal assignment. The term shall not include an5
examination of an appraisal for grammatical, typographical, mathematical, or other6
similar administrative errors that do not involve the appraiser's professional7
judgment, including compliance with the elements of the client's statement of work.8
(13) "Fee appraiser" means a person who is not an employee of the mortgage9
loan originator or appraisal management company engaging the appraiser and is one10
of the following:11
(a) A state-licensed or certified appraiser who receives a fee for performing12
an appraisal and certifies that the appraisal has been prepared in accordance with the13
Uniform Standards of Professional Appraisal Practice.14
(b) A company not subject to the requirements of §1124 of the Financial15
Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. 3331 et16
seq., that utilizes the services of state-licensed or certified appraisers and receives a17
fee for performing appraisals in accordance with the Uniform Standards of18
Professional Appraisal Practice.19
§3415.3. License required; bond required20
* * *21
B. The license required by Subsection A of this Section shall, at a minimum,22
include the following information:23
* * *24
(10) Proof that the entity has obtained and maintains a surety bond that meets25
the requirements of Subsection D of this Section.26
(11) An irrevocable Uniform Consent to Service of Process, pursuant to this27
Chapter.28
(11) Any other information required by the board.29 ENROLLEDHB NO. 823
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C.(1) A person who performs an appraisal review for an appraisal1
management company shall be licensed or certified in Louisiana.2
(2) An administrative review may be performed by any individual, including3
a certified appraiser.4
D.(1) Every applicant for a license or the renewal of a license shall obtain5
and maintain a surety bond in the amount of twenty thousand dollars. The surety6
bond shall:7
(a) Be in the form prescribed by the board pursuant to regulations duly8
promulgated by it.9
(b) Accrue to the state for the benefit of a claimant against the registrant to10
secure the faithful performance of the licensee obligations under this Chapter.11
(2) The aggregate liability of the surety shall not exceed the principal sum12
of the bond.13
(3) A party having a claim against the licensee may bring suit directly on the14
surety bond, or the board may bring suit on behalf of the party having a claim against15
the licensee.16
(4) Consumer claims shall be given priority in recovering from the bond.17
(5) A deposit of cash or security may be accepted in lieu of the surety bond.18
(6) If a claim reduces the face amount of the bond, the bond shall be19
annually restored upon renewal of the licensee's registration.20
* * *21
§3415.13. Adherence to standards; competency22
A. Each appraisal management company seeking to be licensed in this state23
shall certify to the board on an annual basis that it has a system in place to review on24
a periodic basis the work of all appraisers that are performing real estate appraisal25
services for the appraisal management company to ensure that the real estate26
appraisal services are being conducted in accordance with Uniform Standards of27
Professional Appraisal Practice.28
B. Before or at the time of making an assignment to an appraiser, an29
appraisal management company shall verify that the appraiser receiving the30 ENROLLEDHB NO. 823
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assignment satisfies each provision of the competency rule of the Uniform Standards1
of Professional Appraisal Practice for the appraisal being assigned.2
* * *3
§3415.15. Fees; customary and reasonable; disclosure4
A. An appraisal management company shall compensate appraisers at a rate5
that is customary and reasonable for appraisals being performed in the market area6
of the property being appraised, consistent with the presumptions of compliance7
under federal law.8
B. An appraisal management company shall separately state to the client all9
of the following:10
(1) The fees paid to an appraiser for appraisal services.11
(2) The fees charged by the appraisal management company for services12
associated with the management of the appraisal process, including procurement of13
the appraiser's services.14
C.(1) An appraisal management company shall not prohibit any appraiser15
who is part of an appraiser panel from recording the fee that the appraiser was paid16
by the appraisal management company for the performance of the appraisal within17
the appraisal report that is submitted by the appraiser to the appraisal management18
company.19
(2) An appraisal management company shall not include any fees for20
appraisal management services performed by the company in the amount the21
company reports as charges for the actual completion of an appraisal by the22
appraiser.23
* * *24
§3415.21. Rulemaking authority; effective date25
A. The board shall have the power to may adopt any rules and regulations26
in accordance with the Administrative Procedure Act necessary for the enforcement27
of this Chapter.28
B. Notwithstanding any law to the contrary, these rules shall require the29
affirmative approval by the House of Representatives Committee on Commerce and30 ENROLLEDHB NO. 823
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the Senate Committee on Commerce, Consumer Protection and International Affairs.1
If the board submits its proposed rules for affirmative approval and the legislature2
is not in session, the proposed rules shall be deemed affirmatively approved if sixty3
days have elapsed from the date the proposed rules are received by the oversight4
committees and no hearing is held by either committee.5
C. Any appraisal management company doing business in this state at the6
time of passage of this Act, may continue to perform such services without a license7
until the earlier of either such time that the rules and regulations pertaining to this8
Chapter have been approved in accordance with Subsections A and B of this Section9
or January 1, 2011.10
Section 2. The provisions of R.S. 37:3415.3(B)(10) and (C) shall apply to any new11
or renewed license after December 31, 2011, and only upon promulgation of rules by the12
board concerning the provisions of R.S. 37:3415.3(B)(10) and (C).13
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: