61-2e-201. Registration required — Qualification for registration.
(1)
Unless exempted under Section 61-2e-104, an appraisal management company is required to register under this chapter if, in a calendar year, the company:
Appraiser: means an individual who engages in a real estate appraisal activity. See Utah Code 61-2e-102
Appraiser panel: includes an appraiser whom the appraisal management company has:
(i)
accepted for consideration for a future appraisal assignment:
(A)
in a residential mortgage loan transaction; or
(B)
for a secondary mortgage market participant in connection with a residential mortgage loan transaction; or
(ii)
engaged to perform an appraisal:
(A)
in a residential mortgage loan transaction; or
(B)
for a secondary mortgage market participant in connection with a residential mortgage loan transaction. See Utah Code 61-2e-102
Board: means the Real Estate Appraiser Licensing and Certification Board that is created in Section 61-2g-204. See Utah Code 61-2e-102
Client: means a person that enters into an agreement with an appraisal management company for the performance of a real estate appraisal activity. See Utah Code 61-2e-102
Controlling person: means :
(a)
an owner, officer, or director of an entity seeking to offer appraisal management services;
(b)
an individual employed, appointed, or authorized by an appraisal management company who has the authority to:
(i)
enter into a contractual relationship with a client for the performance of an appraisal management service; and
(ii)
enter into an agreement with an appraiser for the performance of a real estate appraisal activity; or
(c)
a person who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company. See Utah Code 61-2e-102
Division: means the Division of Real Estate, created in Section 61-2-201, of the Department of Commerce. See Utah Code 61-2e-102
Entity: means :
(a)
a corporation;
(b)
a partnership;
(c)
a sole proprietorship;
(d)
a limited liability company;
(e)
another business entity; or
(f)
a subsidiary or unit of an entity described in Subsections (18)(a) through (e). See Utah Code 61-2e-102
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
Real estate appraisal activity: means the same as that term is defined in Section 61-2g-102. See Utah Code 61-2e-102
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Territory: means any of the following United States territories:
contracts with one or more appraisers for the performance of 10 or more appraisals in the state;
(b)
oversees an appraiser panel of more than 15 appraisers certified or licensed in the state in accordance with 3; or
(c)
oversees an appraiser panel of 25 or more certified or licensed appraisers, including:
(i)
at least one appraiser certified or licensed in the state in accordance with 3; and
(ii)
at least one appraiser certified or licensed in a state other than Utah, a territory, or the District of Columbia.
(2)
(a)
For the purposes of Subsection (1):
(i)
an appraiser is considered part of an appraisal management company’s appraiser panel as of the earlier of the day on which the appraisal management company:
(A)
accepts the appraiser for the appraisal management company’s consideration for future appraisal assignments; or
(B)
engages the appraiser to perform an appraisal on behalf of a client; and
(ii)
an appraiser who is part of the appraisal management company’s appraiser panel under Subsection (2)(a)(i) remains a part of the appraiser panel until the earlier of the day on which the appraisal management company:
(A)
sends written notice to the appraiser removing the appraiser from the appraiser panel, in accordance with Section 61-2e-306;
(B)
receives written notice from the appraiser asking to be removed from the appraiser panel; or
(C)
receives notice of the death or incapacity of the appraiser.
(b)
An appraisal management company shall consider an appraiser as never having been removed from the appraisal management company’s appraiser panel under Subsection (2)(a)(ii) if, within 12 months after the day on which the appraisal management company removes the appraiser, the appraisal management company:
(i)
accepts the appraiser for consideration for a future assignment; or
(ii)
engages the appraiser to perform an appraisal on behalf of a client.
(3)
Unless registered under this chapter or exempt under Section 61-2e-104, an entity may not with regard to a real estate appraisal activity for real estate located in this state:
(a)
directly or indirectly engage or attempt to engage in business as an appraisal management company;
(b)
directly or indirectly engage or attempt to perform an appraisal management service; or
(c)
advertise or hold itself out as engaging in or conducting business as an appraisal management company.
(4)
To qualify to be registered or to have registration renewed as an appraisal management company under this chapter:
(a)
the appraisal management company may not have had a license or registration revoked by a government regulatory body at any time, unless the revocation is subsequently vacated or converted;
(b)
the appraisal management company may not be owned, in whole or in part, directly or indirectly, by an individual who has had an appraiser license or certificate refused, denied, canceled, surrendered in lieu of revocation, or revoked by any state, territory, or the District of Columbia, unless the state, territory, or District of Columbia:
(i)
refused, denied, canceled, surrendered in lieu of revocation, or revoked the license or certificate for a nonsubstantive cause, as determined by the board; and
(ii)
reinstated the individual’s license or certificate;
(c)
each individual who owns, directly or indirectly, more than 10% of the appraisal management company shall:
(i)
be of good moral character, as determined by the board; and
(ii)
not have had a license or certificate to engage in an act related to a real estate or mortgage transaction refused, denied, canceled, surrendered in lieu of revocation, or revoked in any state, territory, or the District of Columbia; and
(d)
the appraisal management company shall designate a main contact for communication between the appraisal management company and either the board or division who:
(i)
is a controlling person;
(ii)
is of good moral character, as determined by the board; and
(iii)
has not had a license or certificate to engage in an act related to a real estate or mortgage transaction refused, denied, canceled, or revoked in any state, territory, or the District of Columbia.
(5)
This section applies without regard to whether the entity uses the term:
