New York State law (Article 6-H of the Executive Law) defines an Appraisal Management Company as an individual or business entity that provides appraisal management services to creditors or to secondary mortgage market participants, including affiliates, provides such services in connection with valuing a consumer’s real property as security for consumer credit transactions secured by a consumer’s principal dwelling, and within a given year, oversees an appraisal panel of more than fifteen appraisers working in New York State or twenty-five or more appraisers working in two or more states. A business that hires both appraisers as employees and engages appraisers as independent contractors shall only include the independent contractors during numerical calculation to determine if they meet the definition of an AMC for purposes of state registration.
An AMC shall not include a department or division of an entity that provides appraisal management services only to that entity. An individual who hires an appraiser solely for his or her own purposes, shall not be deemed an appraisal management company.
Controlling person means an owner, officer or director of the AMC or an individual who holds an ownership interest of such company; an individual employed, appointed or authorized by an Appraisal Management Company that has the authority to enter into a contractual relationship with other persons for the performance of AMC services and has the authority to enter into agreements with appraisers for the performance of appraisals; or an individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of the AMC. All controlling persons must be identified on this application.
The Designated Controlling Person meets the definition of Controlling Person who will be the main contact for all communication between the department and the appraisal management company.
Federally regulated AMC means an AMC that is owned and controlled by an insured depository institution, as defined in 12 U.S.C. 1813 and regulated by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation.
An AMC regulated by a federal financial institution regulatory agency is excluded from the registration requirement but required to report to the department annually the number of appraiser panel members who performed appraisals in New York for the AMC. See “What is the ASC National Registry reporting requirement” contained within these instructions.
An appraiser panel is a network, list or roster of licensed or certified appraisers approved by the appraisal management company to perform appraisals in New York as independent contractors for the appraisal management company. There is a fee of $25 for each appraiser listed on your appraiser panel.
Adding or removing a member from your panel can be completed online using your established account by choosing the appropriate amendment option or by submitting an Appraisal Management Company Panel Change Notification form along with the appropriate fee.
Section 160-jjjj(3) makes it unlawful for an AMC to: "hire, employ or engage, or in any way contract with or pay a person who is not licensed or certified as a real estate appraiser by the department pursuant to article six-E of this chapter, unless the work being performed is a comparative market analysis for the purpose of or intention to list or sell real estate." The Department interprets this section broadly while still adhering to the statute’s original purpose.
This section does not mean that AMCs are prohibited from hiring non-licensed or non-certified appraisers to perform tasks indirectly connected with valuing a consumer’s principal dwelling, including Broker Price Opinions (a/k/a BPOs). However, if the real estate appraiser will need to rely upon the information to perform the valuation, an AMC would need to hire a licensed or certified appraiser.
For example, an AMC would be prohibited from hiring a non-licensed or non-certified appraiser from taking property photographs if such photographs are likely to be materially relied upon by an appraiser retained by the AMC in connection with valuing a consumer’s property.
For more information regarding employment by AMCs, including to see a list of acceptable hiring practices, please review our Guidance for Appraisal Management Companies available here.
Yes, AMCs are required to disclose the fee owed or paid to the appraiser completing an appraisal assignment.
Section 160-oooo requires that a "copy of the appraiser’s invoice with a copy of any appraisal report [be] submitted to a client or a client’s representative". This section of the law requires that the appraiser’s invoice be provided at the same time as the appraisal report is submitted to the client; however, it does not require that the appraiser’s invoice be provided within the appraisal report. The appraiser may include this information in the actual report at his/her own discretion and the AMC is prohibited from restricting the appraiser’s rights to do so.
The Department liberally interprets an “invoice” as any bill-like document or statement, whether originally prepared by the appraiser or the AMC, accurately itemizing the list of services provided and detailing amount directly paid or owed to the appraiser for his/her services.
If an appraiser is an employee of the AMC and not contracted/paid per appraisal report, the AMC must disclose when submitting the appraisal to the client that all fees for services were retained by the AMC and the sum “invoiced” for the particular assignment by the appraiser may be disclosed as “salaried”.
An AMC is not required to pay an appraiser for services in any particular method. An appraiser may accept payment for services through any means (e.g., cash, check, direct deposit, etc.) that is agreed upon by both parties. However, AMCs are required to "make payments" to the appraiser within 30 days. Section 160-oooo(1)(g) states:"[e]ach appraisal management company operating in this state shall make payment to an appraiser for the completion of an appraisal or valuation assignment within thirty days of the date on which such appraiser transmits or otherwise provides the completed appraisal or valuation services to the appraisal management company or its assignee." The Department interprets "make payment" as providing funds to the appraiser within 30 days through any accepted form of payment.
Yes, AMCs are required to disclose the fee they collect for AMC services to their clients. Section 160-oooo(e) states it is unlawful for an AMC to “[k]nowingly fail to separately state the fees paid to an appraiser for appraisal services and the fees charged by the appraisal management company for services associated with the management of the appraisal process to the client, borrower and any other payer.” Accordingly, the fee for AMC’s services must be separately stated from the fee paid to the appraiser. Nothing in this section requires the AMC to disclose to the appraiser how much the AMC collects from the client, borrower and any other payer.
The AMC will be required to submit annually a list of appraisers on its appraiser panel who performed appraisals in New York as independent contractors for the AMC in connection with a covered transaction along with a fee of $25 for each appraiser listed to be reported on the ASC National Registry.
The initial annual reporting period is a 12-month period beginning 15 months immediately preceding application submission. This will be your annual reporting period for subsequent years.
Application submission date = 1/1/2019.
Initial National Registry reporting period will be 10/1/2017 - 9/30/2018.
Subsequent annual reporting periods will be 10/1 to 9/30 each year.
The Division of Licensing Services encourages applicants to apply online. Using online services provides quicker processing of your application and allows you to view the status of your application through your online account. Additionally, you can amend your license record, submit annual reports and renew your license more efficiently. To apply online, create a NY.gov business account and follow the application instructions provided, click here.