N.J. Admin. Code § 13:40A-9.4

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:40A-9.4 - Registration

(a) Each person that directly or indirectly engages, or attempts to engage, in business as an appraisal management company, or advertises or holds itself out as engaging in or conducting business as an appraisal management company, shall obtain a registration from the Board.

1. The registration requirements in this section shall not apply to an appraisal management company that is owned and controlled by an insured depository institution that is regulated by a Federal financial institution regulatory agency.

(b) An applicant for registration as an appraisal management company shall pay the application and registration fee set forth at N.J.A.C. 13:40A-7.1 and file an application on a form provided by the Board. The registration application shall include, but not be limited to, the following information, which shall be certified by the compliance officer of the appraisal management company:

1. The name of the entity or individual seeking registration, and the fictitious name or names, if any, under which it does business in any state;

2. The business address of the entity or individual seeking registration;

3. The telephone number and e-mail address of the entity or individual seeking registration;

4. The name and contact information for the individual's or entity's agent for service of process in this State, if the entity or individual is not a corporation that is domiciled in this State;

5. The name, address, and contact information for any individual or any corporation, partnership, or other business entity that owns 10 percent or more of the appraisal management company;

6. The name, address, and contact information for each controlling person;

7. The name, address, e-mail address, and telephone number for one controlling person designated as the main contact for all communication between the appraisal management company and the Board;

8. A certification that the entity or individual has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company holds a license or certification in good standing in this State pursuant to N.J.S.A. 45:14F-1 et seq., and this chapter;

9. A certification that the entity or individual requires appraisers completing appraisals, including, but not limited to, appraisals and appraisal reviews, at its request to comply with the Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board of the Appraisal Foundation, including the requirements for geographic and product competence;

10. A certification that the entity or individual has a system in place to verify that only licensed or certified appraisers are used for Federally related transactions;

11. A certification that the entity or individual has a system in place to require that appraisals are conducted independently and free from inappropriate influence and coercion as required by the appraisal independence standards established under section 1639e of the Federal Truth in Lending Act, Pub. L. 90-321 (15 U.S.C. § 1639e) , including the requirements for payment of customary and reasonable compensation to fee appraisers when the appraisal management company is providing services for a consumer credit transaction secured by the principal dwelling of a consumer;

12. A certification, on a form provided by the Board, that the entity maintains a detailed record of each service request that it receives and the name of the appraiser that performs the residential real estate appraisal services for the appraisal management company;

13. For an entity or individual applicant that is not domiciled in this State, an irrevocable Uniform Consent to Service of Process;

14. The type of business organization of the appraisal management company; and

15. For each controlling person or compliance officer who has a license or certification to engage in the practice of real estate appraisal in New Jersey or any other jurisdiction, disclosure of any investigations pending against his or her professional license or certification, and disclosure of any action pending before any employer, association, society, or other professional group related to the practice of real estate appraisal in New Jersey or any other jurisdiction.

(c) Each applicant for registration shall submit a surety bond in the amount of $ 25,000, as required pursuant to N.J.S.A. 45:14F-35.

1. The surety bond shall be executed by a surety company authorized to transact business in the State of New Jersey, approved by the Department of Banking and Insurance, and be conditioned on the faithful performance of the provisions of the Act.

2. The surety bond shall be for a period of 24 months consistent with the biennial registration period.

(d) Each controlling person of an appraisal management company for registration shall submit the certification and authorization form for criminal history background check, as provided by the Board, and the controlling person's fingerprints as processed by the vendor under contract with the State.

(e) An appraisal management company applying to the Board for registration in this State shall not:

1. In whole or in part, directly or indirectly, be owned by any person who has had an appraiser license or certification in this State or in any other state, refused, denied, cancelled, surrendered in lieu of revocation, or revoked; or

2. Be subject to the ownership, control, direction, or authority of, or employ, appoint, or otherwise retain, a controlling person who is not of good moral character, which, for purposes of this paragraph, shall require that such person has not been convicted of, or entered a plea of nolo contendere to, a crime relating to the practice of appraisal or any crime involving financial services, fraud, misrepresentation, or moral turpitude. A controlling person shall not have been convicted of the crimes and offenses as set forth at N.J.A.C. 13:40A-7.9.

(f) Each applicant shall designate one controlling person that will be the designated contact for all communication between the Board and the appraisal management company.

1. A controlling person shall not, at any given time, be designated as the designated contact for more than one appraisal management company.

(g) Upon registration, the Board shall issue a unique registration number to each appraisal management company registered in this State.

N.J. Admin. Code § 13:40A-9.4

Adopted by 51 N.J.R. 1124(a), effective 7/1/2019