N.Y. Executive Law § 160-jjjj: Employee requirements

§ 160-jjjj. Employee requirements. 1. An appraisal management company

that applies for a certificate of registration shall not knowingly

employ, utilize, or engage, for any real estate appraisal, valuation

service or appraisal review assignment, a person who has had a license

or certificate to act as an appraiser in this state or in any other

state denied, revoked, or surrendered in lieu of possible discipline,

unless such license has been reinstated.

2. Prior to placing an assignment for an appraisal or valuation

service with an appraiser on the appraiser panel of an appraisal

management company, the appraisal management company shall verify that

the appraiser receiving the assignment is a competent appraiser as

defined by the USPAP Competency Rule with regards to geographic area and

the type of property being appraised. An appraiser is deemed part of an

appraisal management company panel as of the earliest date on which: (a)

the appraisal management company accepts the appraiser for consideration

for future appraisal assignments in covered transactions or for

secondary mortgage market participants in connection with covered

transactions; or (b) engages the appraiser to perform one or more

appraisals on behalf of a creditor for a covered transaction or

secondary mortgage market participant in connection with covered

transactions.

3. An appraisal management company may not 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 for the purposes of performing an

appraisal as defined in this article. Nothing in this section shall

prohibit an appraisal management company from hiring, employing,

engaging or contracting with or paying a person to perform a property

inspection, or property evaluation if they are licensed as an appraiser,

a real estate broker including associate real estate brokers and real

estate salespersons pursuant to article twelve-A of the real property

law or a home inspector pursuant to article twelve-B of the real

property law, or a person to perform a broker price opinion if they are

licensed as a real estate broker including associate real estate brokers

and real estate salespersons pursuant to article twelve-A of the real

property law.

4. An appraiser shall be considered part of an appraisal management

company's appraiser panel until: (a) the appraisal management company

sends a written notice to such appraiser removing such appraiser with an

explanation; or (b) receives a written notice from such appraiser asking

to be removed or of the death or incapacity of such appraiser.