[§466L-6]  Registration required.  [See Note at chapter heading.]  (a)  No person may directly or indirectly engage or attempt to engage in business as an appraisal management company, directly or indirectly perform or attempt to perform appraisal management services, or advertise or hold oneself out as engaging in or conducting business as an appraisal management company without first being registered pursuant to this chapter.

     (b)  An appraisal management company shall:

     (1)  Register with the real estate appraiser program administered by the department pursuant to chapter 466K;

     (2)  Engage only state-licensed or state-certified appraisers for federally related transactions in conformity with any federally related transaction regulations;

     (3)  Establish and comply with processes and controls reasonably designed to ensure that the appraisal management company, in engaging an appraiser, selects an appraiser who is independent of the transaction and has the requisite education, expertise, and experience necessary to competently complete the appraisal assignment for the particular market and property type;

     (4)  Direct an appraiser to perform the assignment in accordance with the Uniform Standards of Professional Appraisal Practice; and

     (5)  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 129E(i) of the Truth in Lending Act, title 15 United States Code [section] 1639e(a) through 1639e(i), and regulations adopted thereunder.

     (c)  This section shall not apply to:

     (1)  A person that exclusively employs appraisers on an employer and employee basis for the performance of appraisals in this State;

     (2)  A federally regulated appraisal management company;

     (3)  A department or unit within a financial institution that is subject to direct regulation by an agency of the federal government that is a member of the Federal Financial Institutions Examination Council or its successor, or to regulation by the commissioner of financial institutions under chapter 412, that receives a request for the performance of an appraisal from one employee of the financial institution, and another employee of the same financial institution assigns the request for the appraisal to an appraiser that is an independent contractor to the institution, except that an appraisal management company that is a wholly owned subsidiary of a financial institution shall not be considered a department or unit within a financial institution to which the provisions of this chapter do not apply; or

     (4)  An appraiser who enters into an agreement with another appraiser for the performance of an appraisal that upon completion results in a report signed by both the appraiser who completed the appraisal and the appraiser who requested the completion of the appraisal.

     (d)  Any person who engages in an activity requiring registration as an appraisal management company issued by the director and who fails to obtain the required registration, or who uses any work, title, or representation to induce the false belief that the person is registered to engage in said activity, shall be guilty of a misdemeanor and shall be subject to a fine of not more than $1,000 or imprisoned not more than one year, or both, and each day of violation shall be deemed a separate offense.

     (e)  The director may maintain a suit to enjoin the performance or the continuance of any act or acts by a person acting without a registration where a registration is required by law, and if injured thereby, for the recovery of damages. [L 2017, c 118, pt of §2]