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324A.158 Prohibitions against certain conduct by registrants.
(1)
(2)
(3)
An employee, director, officer, or agent of an appraisal management company
or any other third party acting as a joint venture partner with or as an
independent contractor for an appraisal management company shall not
improperly influence or attempt to improperly influence the development,
reporting, result, or review of a real estate appraisal, including but not limited to
the use of intimidation, coercion, extortion, bribery, blackmail, threat of
nonpayment or withholding payment for appraisal services, or threat of
exclusion from future appraisal work.
The registrant shall not:
(a) Request, allow, or require an appraiser to collect any portion of the fee
charged by the appraisal management company, including the appraisal
fee, from a borrower, homeowner, or other third party;
(b) Require an appraiser to provide the registrant with the appraiser's digital
signature or seal;
(c) Alter, amend, or change an appraisal report submitted by a licensed or
certified appraiser, by the following or any other actions:
1.
Removing the appraiser's signature;
2.
Adding or removing information to or from the appraisal report; or
3.
Altering the final value opinion reported by an appraiser;
(d) Remove an appraiser from an appraiser panel without prior written notice
to the appraiser. An appraiser may only be removed from an appraiser
panel with written notice for:
1.
A violation of the minimum USPAP standards or other applicable
statutes or administrative regulations resulting in a suspension or
revocation of the appraiser's license in Kentucky; or
2.
Other substandard or otherwise improper performance as may be
determined by administrative regulations promulgated by the board;
(e) Enter into contracts or agreements with an appraiser for the performance
of appraisal services unless the appraiser is licensed or certified in good
standing with the board;
(f) Request that an appraiser provide an estimated, predetermined, or
desired valuation in an appraisal report or provide estimated values or
comparable sales at any time before the appraiser completes an
appraisal report;
(g) Provide to an appraiser an anticipated, estimated, encouraged, or desired
value for a property or a proposed or target amount to be loaned or
borrowed, except that a copy of the sales contract for purchase
transactions may be provided;
(h) Commit an act or practice that impairs or attempts to impair an
appraiser's independence, objectivity, or impartiality; or
(i) Have a direct or indirect interest, financial or otherwise, in the property or
transaction involving the appraisal.
Subsection (1) of this section shall not prohibit an appraisal management
company from requesting that an appraiser:
(a) Provide additional information about the basis for a valuation;
(b) Correct objective factual errors in an appraisal report; or
(c) Provide further detail, substantiation, or explanation for the appraiser's
value conclusion.
Effective:June 8, 2011
History: Created 2011 Ky. Acts ch. 58, sec. 5, effective June 8, 2011.
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