S.D. Admin. R. 20:77:05:01

Current through Register Vol. 50, page 162, June 24, 2024

Section 20:77:05:01 - Responsibilities and duties

An appraisal management company registered under the provisions of this article shall:

(1) Have a system in place to verify that utilized appraisers are licensed or certified and in good standing by this state;

(2) Require each utilized appraiser who performs appraisals in this state to certify in writing the area of geographic competency and the specific appraisal assignments competent to appraise;

(3) Have an appraisal quality control system in place that is reasonably designed and properly applied by the appraisal management company to ensure the work of utilized appraisers who perform appraisal services are subject to a Standard 3 review to determine if the services were performed in compliance with the uniform standards;

(4) Have a system in place to verify that any employee of, or independent contractor to, the appraisal management company that is utilized to perform a Standard 3 appraisal review, of the work of utilized appraisers who perform an appraisal assignment for a property located in South Dakota, be licensed or certified and in good standing by this state and conducts the appraisal review in compliance with the uniform standards;

(5) File a referral with the department if there is evidence that a utilized appraiser is in violation of the laws, rules, or uniform standards regarding appraisers, including but not limited to grounds for disciplinary action as prescribed in § 20:14:11:03;

(6) Authorize a designated officer, who will be responsible for accepting the responsibilities for compliance with SDCL chapter 36-21 D and the provisions of this article, and notify the department, within five days, of any change in its designated officer;

(7) Maintain with the department the name and address of a registered agent for service of process; and notify the department, within five days, of any change to the information on file;

(8) Disclose to its client the actual fees paid to an appraiser for appraisal services, separate from any other fees or charges for appraisal management services, and make the information available to the department upon request; and

(9) Disclose its certificate of registration number within its engagement document with each utilized appraiser.

(10) Pay the appraisal fee to a utilized appraiser within 45 days of the date the utilized appraiser first transmits the appraisal report to the appraisal management company.

(11) Establish and comply with processes and controls reasonably designed to ensure that the appraisal management company conducts its appraisal management services in accordance with the requirements of section 129E(a) through (i) of the Truth in Lending Act (TILA), 15 U.S.C. 1639e(a) through (i), and regulations thereunder.

S.D. Admin. R. 20:77:05:01

38 SDR 40, effective 9/20/2011; 45 SDR 045, effective 10/8/2018

General Authority: SDCL 36-21D-4(3).

Law Implemented: SDCL 36-21D-1, 36-21D-2(2)(4), 36-21D-4(3).