0001|                            HOUSE BILL 348
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                              RICK MIERA
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO REAL ESTATE APPRAISALS; REQUIRING OUT-OF-STATE
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0012|     APPRAISAL MANAGEMENT COMPANIES TO BE REGISTERED WITH THE REAL
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0013|     ESTATE APPRAISERS BOARD AND EMPLOY A LEGALLY QUALIFIED NEW
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0014|     MEXICO APPRAISER FOR THE PURPOSE OF APPRAISAL REVIEWS.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  A new section of the Real Estate Appraisers
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0018|     Act is enacted to read:
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0019|          "[<u>NEW MATERIAL</u>] APPRAISAL MANAGEMENT COMPANIES--
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0020|     REGISTRATION--EMPLOYMENT OF LEGALLY QUALIFIED APPRAISER.--
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0021|               A.  For the purpose of this section, "appraisal
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0022|     management company" means a person that acts as an
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0023|     intermediary for mortgage lending institutions to recruit and
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0024|     hire appraisers to perform real estate appraisals or appraisal
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0025|     reviews and to transmit the appraisals, appraisal reviews,
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0001|     final value estimates or certificates of value to lending
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0002|     institutions to be used in the making of mortgage loans.  An
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0003|     appraisal management company insures, guarantees, indemnifies
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0004|     or by similar means protects the mortgage lender from
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0005|     improper, inaccurate or fraudulent appraisals.
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0006|               B.  An appraisal management company doing business
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0007|     in New Mexico must be registered with the board.  An appraisal
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0008|     management company shall conduct its business in accordance
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0009|     with all federal and state laws governing the appraisal of
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0010|     real estate.
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0011|               C.  If an appraisal management company provides
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0012|     insurance or guaranty to users of its services, the appraisal
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0013|     management company shall comply with all federal and state
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0014|     laws governing the issuance of insurance policies and comply
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0015|     with the New Mexico Insurance Code and rules adopted by the
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0016|     superintendent of insurance in accordance with that act.
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0017|               D.  When an appraisal review is conducted or
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0018|     required, the New Mexico-certified appraiser shall have
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0019|     specific geographic competency to perform the appraisal or
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0020|     review in accordance with the uniform standards of
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0021|     professional practice and the appraiser shall maintain the
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0022|     required and appropriate New Mexico certification to perform
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0023|     appraisal reviews."
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0024|                              
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