CHAPTER 20:77:01
GENERAL PROVISIONS
Section
20:77:01:01 Appraisal management services.
20:77:01:02 Appraisal review.
20:77:01:03 Controlling person.
20:77:01:04 Designated officer.
20:77:01:05 Definitions.
20:77:01:01. Appraisal
management services. "Appraisal management services," is the act
or process to (a) recruit, select, and retain appraisers; (b) contract with
licensed or certified appraisers to perform appraisal assignments; and (c)
manage the process of having an appraisal performed.
Appraisal management services includes
administrative duties such as receiving appraisal orders and appraisal reports;
submitting completed appraisal reports to creditors and underwriters;
collecting fees from creditors and underwriters for services provided; and
reimbursing appraisers for services performed. It also includes the review and
verification of the work of appraisers for compliance with the Uniform
Standards of Professional Appraisal Practice.
Source:
38 SDR 40, effective September 20, 2011.
General
Authority: SDCL 36-21D-4.
Law
Implemented: SDCL 36-21D-1, 36-21D-2, 36-21D-4(2).
20:77:01:02. Appraisal
review. "Appraisal review," is an act or process of developing
and communicating an opinion about the quality of another appraiser's work that
was performed as part of an appraisal assignment related to the appraiser's
data collection, analysis, opinions, conclusions, estimate of value, or
compliance with the Uniform Standards of Professional Appraisal Practice. The
term does not include a general examination for grammatical, typographical or
other similar errors, or a general examination for completeness including
regulatory, or client requirements or both as specified in the agreement
process that does not communicate an opinion.
Source:
38 SDR 40, effective September 20, 2011.
General
Authority: SDCL 36-21D-4.
Law
Implemented: SDCL 36-21D-2(4), 36-21D-4(2).
20:77:01:03. Controlling
person. A "controlling person," is one or more of the following:
(1) An officer or director
of an appraisal management company, or an individual that holds 10% or greater
ownership interest in an appraisal management company;
(2) An individual employed,
appointed, or authorized by an appraisal management company that has the
authority to enter into a contractual relationship with clients for performance
of appraisal services and that has the authority to enter into agreements with
independent appraisers for the completion of appraisals; or
(3) An individual who
possesses the power to direct or cause the direction of the management or
policies of an appraisal management company.
Source:
38 SDR 40, effective September 20, 2011.
General
Authority: SDCL 36-21D-4.
Law
Implemented: SDCL 36-21D-4(2).
20:77:01:04. Designated
officer. A "designated officer," is a controlling person
authorized by the governing structure of the appraisal management company to
act on behalf of the company for purposes of application for, and compliance
with, requirements of this article and responsible for the supervision and
control of activities conducted on behalf of the appraisal management company.
Source:
38 SDR 40, effective September 20, 2011.
General
Authority: SDCL 36-21D-4.
Law
Implemented: SDCL 36-21D-4(2).
20:77:01:05. Definitions. Terms used in this article mean:
(1) "AMC National Registry," the registry of state-registered appraisal management companies and federally regulated appraisal management companies maintained by the Appraisal Subcommittee;
(2) "Appraisal Subcommittee," the Appraisal Subcommittee of the Federal Financial Institutions Examination Council;
(3) "Appraiser," a person who has been issued by the department a state-certified general, state-certified residential, state-licensed, or registered trainee appraiser credential to perform appraisals;
(4) "Appraiser panel," a network, list, or roster of licensed or certified appraisers approved by an appraisal management company to perform appraisals as independent contractors for the appraisal management company. Appraisers on an appraisal management company's appraiser panel under this article include the following:
(a) Appraisers accepted by the appraisal management company for consideration for future appraisal assignments in covered transactions and for secondary mortgage market participants in connection with covered transactions; and
(b) Appraisers engaged by the appraisal management company to perform one or more appraisals in covered transactions or for secondary mortgage market participants in connection with covered transactions.
An appraiser is an independent contractor for purposes of this article if considered an independent contractor by the appraisal management company for federal income tax purposes;
(5) "Certificate of Registration," the certificate verifying the registration of any person or entity approved as an appraisal management company by the State of South Dakota;
(6) "Covered transaction," any consumer credit transaction secured by the consumer's principal dwelling;
(7) "Department," the Department of Labor and Regulation;
(8) "Federally regulated appraisal management company," an appraisal management company that is owned and controlled by an insured depository institution, as defined in 12 U.S.C. § 1813 as amended to July 21, 2010 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;
(9) "Federally related transaction regulations," regulations established by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration, pursuant to sections 1112, 1113, and 1114 of FIREA Title XI, 12 U.S.C. §§ 3341-3343 as amended to July 21, 2010;
(10) "Financial institutions," institutions regulated by the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, and National Credit Union Administration;
(11) "FIRREA," the Financial Institution Reform Recovery and Enforcement Act of 1989, Pub. L. No. 101-73, 103 Stat. 183 (1989), 12 U.S.C. § 3310, et seq. as amended to July 21, 2010;
(12) "Real estate," as defined in SDCL 36-21A-11;
(13) "Secondary mortgage market participant," a guarantor or insurer of mortgage-backed securities, or an underwriter or issuer of mortgage-backed securities. Secondary mortgage market participant only includes an individual investor in a mortgage-backed security if that investor also serves in the capacity of a guarantor, insurer, underwriter, or issuer for the mortgage-backed security;
(14) "Secretary," the secretary of the department;
(15) "Substantive cause," a reason for imposing discipline against an appraiser described in § 20:77:07:03 or a substantially similar provision in the jurisdiction that imposed the discipline;
(16) "Uniform Standards," Uniform Standards of Professional Appraisal Practice as incorporated in § 20:14:06:01.
Source: 38 SDR 40, effective September 20, 2011; 45 SDR 45, effective October 8, 2018; 49 SDR 25, effective September 18, 2022; 49 SDR 48, effective November 22, 2022; 49 SDR 48, effective October 1, 2023.
General Authority: SDCL 36-21D-4(2).
Law Implemented: SDCL 36-21D-1, 36-21D-4(2).
