DAR File No. 39291

Commerce, Real Estate

Rule R162-2e

Appraisal Management Company Administrative Rules

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 39291
Filed: 04/17/2015 02:30:29 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

The rule was adopted under the statutory provisions of Title 61, Chapter 2e, primarily as a renumbering and reorganizing of the previously adopted rule. Section 61-2e-103 provides that that the Real Estate Appraiser Licensing and Appraiser Board, with the concurrence of the Utah Real Estate Division, may make rules that are consistent with Chapter 2e and necessary to implement Chapter 2e. Other sections which authorize the rulemaking process are Sections 61-2e-102, 61-2e-203, 61-2e-204, 61-2e-304, 61-2e-305, 61-2e-401, and 61-2e-402. Changes and updates to the rule were included in response to questions from the industry. The rule helps to guide appraisal management companies (AMCs) to satisfy the statutory requirements of registration, recordkeeping, disclosures bonds, and other statutory requirements. In addition, the rule ensures that AMCs use licensed or certified appraisers and outlines specific information required to be provided to an appraiser at the time the assignment is offered.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

In 2011, the division received one public comment on a proposed rule amendment which would require disclosure by an AMC of any charges of costs or fees to an appraiser at the time the assignment is offered and such costs or fees could not be inflated above the actual cost of a service provided by a third party and could not be charged for a service not actually performed. The commenter suggested that the amendment should be changed to distinguish general fees from transactional fees. In response to an amendment filed 07/09/2012, which would require that AMCs obtain a $25,000 surety bond, the division received 11 public comments, six in favor of the amendment, two against, two that thought the bond amount should be higher, and one neutral comment. In response to an amendment filed 03/06/2012, which would clarify the administrative procedures for adjudicating a matter involving an AMC, the division received one public comment recommending changes to the proposed amendment including a requirement of a formal adjudicative proceeding in certain circumstances. In response to a proposed amendment filed 05/31/2013, the division received four comments on a proposed rule amendment which would clarify the unprofessional conduct provision relative to the use of an employee to complete an appraisal assignment. All of the comments expressed concern about the effective of the proposed rule amendment or were opposed to the proposed amendment.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

The statutory requirements found in Title 61, Chapter 2e, remain in effect or have been updated at the time of this five-year review. The rulemaking authority from the statute continues in effect as does the need for rules to implement the statute. Therefore, the rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Real Estate
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Justin Barney at the above address, by phone at 801-530-6603, by FAX at , or by Internet E-mail at [email protected]

Effective:

04/17/2015

Authorized by:

Jonathan Stewart, Director