Louisiana Revised Statutes 37:3415.3 – License required
Terms Used In Louisiana Revised Statutes 37:3415.3
- Appraisal: A determination of property value.
- Appraisal: means the act or process of developing an opinion of value of real property following the appraisal process defined by the Uniform Standards for Professional Appraisal Practice. See Louisiana Revised Statutes 37:3415.2
- Appraisal management company: means , in connection with valuing properties collateralizing mortgage loans or mortgages incorporated into a securitization, any third party that annually oversees a network panel of more than fifteen licensed appraisers in the state or twenty-five or more licensed appraisers in two or more states and is authorized either by a creditor of a consumer credit transaction secured by a consumer's principal dwelling or by an underwriter of, or other principal in, the secondary mortgage markets to do both of the following:
(a) Recruit, select, contract with, or otherwise retain an appraiser for the purpose of performing an appraisal and to verify any work performed by the appraiser for compliance with applicable state and federal requirements. See Louisiana Revised Statutes 37:3415.2
- Appraisal management services: means the process of receiving a request for the performance of real estate appraisal services from a client, and for a fee paid by the client, entering into an agreement with one or more independent appraisers to perform the real estate appraisal services contained in the request. See Louisiana Revised Statutes 37:3415.2
- Appraisal review: means 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 assignment. See Louisiana Revised Statutes 37:3415.2
- Appraiser panel: means a group of appraisers that has been selected by an appraisal management company to perform real estate appraisal services for the appraisal management company on behalf of lenders or other clients. See Louisiana Revised Statutes 37:3415.2
- Board: means the Louisiana Real Estate Appraisers Board. See Louisiana Revised Statutes 37:3415.2
- Controlling person: means any of the following:
(a) An owner, officer, or director of a corporation, partnership, or other business entity seeking to offer appraisal management services in this state. See Louisiana Revised Statutes 37:3415.2
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
- Real estate appraisal services: means residential valuation services performed by an individual acting as an appraiser, including but not limited to appraisal, appraisal review, or appraisal consulting, as these services are defined under the Uniform Standards for Professional Appraisal Practice. See Louisiana Revised Statutes 37:3415.2
- Service of process: The service of writs or summonses to the appropriate party.
A. It shall be unlawful for a person, corporation, partnership, sole proprietorship, subsidiary, unit, or any other business entity to directly or indirectly engage or attempt to engage in business as an appraisal management company, to directly or indirectly engage or attempt to perform appraisal management services, or to advertise or hold itself out as engaging in or conducting business as an appraisal management company without first obtaining a license issued by the board under the provisions of this Chapter, regardless of the entity’s use of the term “appraisal management company”, “national valuations solutions provider”, “mortgage technology company”, or any other name.
B. The license required by Subsection A of this Section shall, at a minimum, include the following information:
(1) The name of the entity seeking a license.
(2) The business address of the entity seeking a license.
(3) The phone contact information of the entity seeking a license.
(4) If the entity is not a corporation that is domiciled in this state, the name and contact information for the company’s agent for service of process in this state.
(5) The name, address, and contact information of any individual, corporation, partnership, or other business entity that has any ownership interest in the appraisal management company.
(6) The name, address, and contact information for a controlling person, as defined in this Chapter.
(7) Certification that the entity has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company holds an appraisal license in good standing in this state pursuant to this Chapter.
(8) Certification that the entity has a system in place to review the work on a periodic basis of all independent appraisers that are performing real estate appraisal services for the appraisal management company to ensure that the real estate appraisal services are being conducted in accordance with Uniform Standards of Professional Appraisal Practice, pursuant to this Chapter.
(9) Certification that the entity maintains a detailed record for five years of each real estate appraisal service request that it receives and an itemized list of all fees contracted with each appraiser who performs real estate appraisal services for the appraisal management company, pursuant to this Chapter.
(10) Proof that the entity has obtained and maintains a surety bond that meets the requirements of Subsection D of this Section.
(11) An irrevocable Uniform Consent to Service of Process, pursuant to this Chapter.
C.(1) A person who performs an appraisal review for an appraisal management company shall be licensed or certified in Louisiana.
(2) An administrative review may be performed by any individual, including a certified appraiser.
D.(1) Every applicant for a license or the renewal of a license shall obtain and maintain a surety bond in the amount of twenty thousand dollars. The surety bond shall:
(a) Be in the form prescribed by the board pursuant to regulations duly promulgated by it.
(b) Accrue to the state for the benefit of a claimant against the registrant to secure the faithful performance of the licensee obligations under this Chapter.
(2) The aggregate liability of the surety shall not exceed the principal sum of the bond.
(3) A party having a claim against the licensee may bring suit directly on the surety bond, or the board may bring suit on behalf of the party having a claim against the licensee.
(4) Consumer claims shall be given priority in recovering from the bond.
(5) A deposit of cash or security may be accepted in lieu of the surety bond.
(6) If a claim reduces the face amount of the bond, the bond shall be annually restored upon renewal of the licensee’s registration.
Acts 2009, No. 502, §1, eff. Jan. 1, 2010; Acts 2012, No. 429, §1, eff. May 31, 2012.