§ 5-20.9-13. Appraiser independence.
(a) It shall be unlawful for any employee, director, officer, or agent of an appraisal management company registered in this state to influence or attempt to influence the development, reporting, or review of an appraisal through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery, or in any other manner. Examples of unlawful influence include, but are not limited to:
(1) Withholding or threatening to withhold timely payment for an appraisal except in cases of breach of contract or substandard performance of services;
(2) Withholding or threatening to withhold future business for an independent appraiser, or demoting or terminating or threatening to demote or terminate an independent appraiser;
(3) Expressly or impliedly promising future business, promotions, or increased compensation for an independent appraiser;
(4) Conditioning the request for an appraisal service or the payment of an appraisal fee or salary or bonus on the opinion, conclusion, or valuation to be reached, or on a preliminary estimate or opinion requested from an independent appraiser;
(5) Requesting that an independent appraiser provide an estimated, predetermined, or desired valuation in an appraisal report, or provide estimated values or comparable sales at any time prior to the independent appraiser’s completion of an appraisal service;
(6) Providing to an independent appraiser an anticipated, estimated, encouraged, or desired value for a subject property or a proposed or target amount to be loaned to the borrower, except that a copy of the sales contract for purchase transactions may be provided;
(7) Providing to an independent appraiser, or any entity or person related to the appraiser, stock or other financial or nonfinancial benefits;
(8) Removing an appraiser from a list of qualified appraisers, or adding an appraiser to an exclusionary list of disapproved appraisers, in connection with the influencing or attempting to influence an appraisal. This prohibition does not preclude the management of appraiser lists for bona fide administrative or quality-control reasons based on written policy;
(9) Obtaining, using, or paying for a second or subsequent appraisal or ordering an automated valuation model in connection with a mortgage financing transaction unless there is a reasonable basis to believe that the initial appraisal was flawed or tainted and such basis is clearly and appropriately noted in the loan file, or unless such appraisal or automated valuation model is done pursuant to a bona fide pre-funding or post-funding appraisal review or quality control process; or
(10) Any other act or practice that impairs or attempts to impair an appraiser’s independence, objectivity, or impartiality.
(b) Nothing in subsection (a) of this section shall be construed as prohibiting the appraisal management company from requesting that an independent fee appraiser:
(1) Consider additional property information;
(2) Provide additional information about the basis for a valuation; or
(3) Correct objective factual errors in an appraisal report.
History of Section.P.L. 2017, ch. 14, § 1; P.L. 2017, ch. 26, § 1.
Structure Rhode Island General Laws
Title 5 - Businesses and Professions
Chapter 5-20.9 - Real Estate Appraisal Management Company Registration Act
Section 5-20.9-1. - Legislative purpose.
Section 5-20.9-2. - Definitions.
Section 5-20.9-3. - Registration required for appraisal management companies.
Section 5-20.9-4. - Requirements for registration.
Section 5-20.9-5. - Consent to service of process.
Section 5-20.9-6. - Retention of records.
Section 5-20.9-7. - Initial registration, renewals, forms, and fees.
Section 5-20.9-8. - Expiration of registration.
Section 5-20.9-10. - Owner requirements.
Section 5-20.9-11. - Controlling person and review appraiser employees.
Section 5-20.9-12. - Verification of appraiser licensure or certification.
Section 5-20.9-13. - Appraiser independence.
Section 5-20.9-14. - Prohibited practices.
Section 5-20.9-16. - Investigations.
Section 5-20.9-17. - Order to cease and desist.
Section 5-20.9-18. - Hearing before revocation or suspension or refusal of registration.