Section 13.02 - Registration, Qualifications, and Exemption(1) All appraisal management companies shall register with and be subject to supervision by the Board of Registration of Real Estate Appraisers in compliance with all rules, regulations and orders duly issued and with all registrations, licenses and approvals duly granted by the Board. Each AMC that operates as a subsidiary of a federally regulated financial institution shall provide identifying information, information related to ownership, panel size and the number of appraisers used to calculate the AMC registry fee, submitted on a form prescribed by the board
(2) In addition, every appraisal management company shall:(a) Make the certifications required by 264 CMR 13.02(2)(b) through (f) in original applications for registration, renewal forms and upon request of the Board;(b) Certify that only persons who hold Massachusetts appraiser licenses or certifications in good standing pursuant to M.G.L. c. 112, §§ 173 through 195 are added to its appraiser panel for appraisal services on real property located in Massachusetts after verifying the status of the appraiser by contacting the Board or utilizing the national AMC registry;(c) Certify that the AMC requires appraisers completing appraisal services at its request to comply with the Uniform Standards of Professional Appraisal Practice;(d) Certify that the company periodically reviews the work of all appraisers performing appraisal services for the appraisal management company to confirm that those services are conducted in compliance with the Uniform Standards of Professional Appraisal Practice;(e) Certify that the company maintains a detailed record of each request for appraisal services that it receives; the name of the appraiser who performs those appraisal services for the appraisal management company; and a complete digital copy of every version of each appraisal report competed by the appraiser; and all information required by 264 CMR 13.04(3); (f) Certify that appraisals are conducted independently and are free from inappropriate influence or coercion, and that appraisers are not encouraged in any manner to misstate or misrepresent the value of a subject property and that the company complies with Sections 129E(a) through (i) of the Truth in Lending Act, 15 U.S.C. 1639e(a) through (i), and regulations thereunder 12 CFR 226 and 1026; and (g) Designate one controlling person who shall be the primary point of contact for all communication between the Board and the appraisal management company. 1. The application shall also designate an employee in charge, who may be the same person as the controlling person.2. The application shall include a signed acceptance of the responsibility of controlling person and employee in charge.(3) Each person who directly or indirectly owns 10% or more of an appraisal management company or is an officer, controlling person or employee in charge of an appraisal management company shall be of good moral character as determined by the Board. Each such person may be required to provide a certified copy of the criminal history record check conducted in the applicant's home state, which shall have been performed within 12 months of the date the completed application for registration or amendment is received by the Board.(4) The Board may conduct criminal history background checks using information reasonably identified by the board to determine the suitability of all persons who directly or indirectly own more than 10% of an appraisal management company, and all officers, controlling persons, and employees in charge of appraisal management companies. a. The Board may conduct fingerprint-based checks of state and national criminal history databases only as authorized by U.S. Public Law 92-544 and M.G.L. c. 112, §§ 279(c) and 289, to determine the suitability of persons who directly or indirectly own more than 10% of an appraisal management company, and officers, controlling persons, and employees in charge of appraisal management companies.(5) An AMC shall not be registered by the Board if such AMC, in whole or in part, directly or indirectly, is owned by any person who has had a license or certificate to act as an appraiser or to engage in any activity related to the transfer of real property refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any state for substantive cause as determined by the Board.(6) Each applicant shall submit the name and address of the applicant's registered agent located in the Commonwealth.(7) An individual operating an appraisal management company as a sole proprietorship shall be a state-certified general real estate appraiser or state-certified residential real estate appraiser and shall be considered the controlling person of the AMC.(8)Exemptions. The provisions of 264 CMR 13.00 do not apply to the following entities: a. An AMC that operates as a subsidiary of a federally regulated financial institution, except as provided in 264 CMR 13.02(1)(a) and 13.05(3)-(4);b. A person that performs appraisals, appraisal reviews or appraisal consulting and that, at all times during a 12 month calendar year, engages as independent contractors fewer than 16 appraisers licensed or certified in Massachusetts and fewer than 25 appraisers licensed or certified in Massachusetts and other states for the performance of appraisals.Adopted by Mass Register Issue 1510, eff. 12/8/2023.