WSR 16-16-059
[Filed July 27, 2016, 12:44 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 16-08-088.
Title of Rule and Other Identifying Information: WAC 308-409-020, 308-409-030, 308-409-050; and add new WAC 308-409-090.
Hearing Location(s): Department of Licensing, Business and Professions Division, Real Estate Programs, 405 Black Lake Boulevard S.W., Conference Room 2105, Olympia, WA 98502, on September 7, 2016, at 9:00 a.m.
Date of Intended Adoption: September 8, 2016.
Submit Written Comments to: Dee A. Sharp, P.O. Box 9021, Olympia, WA 98507-9021, e-mail, fax (360) 570-4981, by September 6, 2016.
Assistance for Persons with Disabilities: Contact Tambra McCowan by September 6, 2016, TTY (360) 664-8885 or (360) 664-6504.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: All updates and adoptions are being proposed for our state to remain in compliance with state (chapter 18.310 RCW) and federal rules under section 1124 to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) as modified by section 1473 of the Dodd-Frank Act.
The proposed updates and adoption will: Update current fingerprint processes in rule to include submission to fingerprinting vendor and clarify fingerprinting fees will be paid to and set by the vendor; update existing time frame for renewing rules to accommodate for technology changes; and will adopt a new rule pertaining to valuation independence standards as required under the Truth in Lending Act (TILA) 15 U.S.C. Secs. 1601-1667.
Reasons Supporting Proposal: Rule modifications and adoptions are proposed to comply with the final federal rules pertaining to state's requirements to supervise appraisal management companies in compliance with the amendments made to Title XI by the Dodd-Frank Act.
Statutory Authority for Adoption: RCW 18.310.020 (1) and (11).
Statute Being Implemented: Chapter 18.310 RCW.
Rule is necessary because of federal law, 12 U.S.C. § 3353(d); 12 C.F.R. § 226.42
Name of Proponent: Department of licensing, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Dee A. Sharp, Olympia, (360) 664-6504.
No small business economic impact statement has been prepared under chapter 19.85 RCW. This rule adopts or references federal statutes or regulations without substantive change – exempt under RCW 19.85.025(3) and 34.05.310 (4)(c); and imposes no costs to businesses – exempt under RCW 19.85.030 (1)(a) and 19.85.020(2).
A cost-benefit analysis is not required under RCW 34.05.328. Department of licensing is exempt from this requirement under RCW 34.05.328 (5)(a).
July 27, 2016
Damon Monroe
Rules Coordinator
AMENDATORY SECTION (Amending WSR 11-24-067, filed 12/6/11, effective 1/6/12)
WAC 308-409-020 Application process to license as an appraisal management company.
(1) An entity applying for licensure as an appraisal management company shall present to the department:
(a) A completed licensure application form that complies with RCW 18.310.060;
(b) Completed registration forms for the owner(s) of ten percent or more of the company and controlling persons, including a designated controlling person((.));
(c) Fingerprint ((cards, that are)) background checks that are identified to the appraisal management company program, for owner(s) of ten percent or more of the company and controlling person(s);
(i) An application submitted without the required fingerprint ((card(s))) background check is considered incomplete.
(ii) ((When)) If a fingerprint ((card)) submission is rejected, the owner or controlling person must ((submit to the department a new fingerprint card)) follow the department's authorized vendor's procedures for resubmitting fingerprints within twenty-one calendar days ((of written notice to the address of record on file with the appraisal management company program)) of the date the department notifies the applicant.
(iii) Failure to ((submit a new fingerprint card may result in a suspension of the appraisal management company license until the fingerprint card is received by the department)) follow the vendor's fingerprint procedures within twenty-one days may result in a suspension of the appraisal management company license until the vendor's fingerprint procedures are followed. The applicant will be responsible for any fingerprinting fees due to the department's authorized vendor.
(iv) If the fingerprint ((card)) submission is rejected, the applicant must pay a new fee for fingerprinting and background processing. After three failed submissions, the program may use other sources/methods to satisfy the background check requirement.
(d) Proof of surety bond; and
(e) Appropriate fees.
(2) A change in ownership or controlling person(s) of the appraisal management company will require the new owner(s) or controlling person(s) to submit owner or controlling person registration form(s) to the department together with fingerprint ((cards)) background check(s), that are identified to the appraisal management company program((, and appropriate processing fees)) within fourteen business days of change.
AMENDATORY SECTION (Amending WSR 11-24-067, filed 12/6/11, effective 1/6/12)
WAC 308-409-030 Licensure and renewal.
(1) Appraisal management companies must be licensed by January 1, 2012.
(2) Each original and renewal license issued under chapter 18-310 RCW shall expire two years from date of issue.
(3) To be renewed as an appraisal management company, the holder of a valid license shall submit an application and pay the prescribed fee to the director no earlier than ((ninety)) one hundred twenty days prior to the expiration date.
(4) If a company fails to renew a license prior to its expiration and no more than one year has passed since the company last held a valid license, the company may obtain a renewed license by paying the renewal fee and late renewal penalty fee.
(5) The director shall cancel the license of any company whose renewal fee is not received within one year from the date of expiration. A company may obtain a new license by applying for original licensure as an appraisal management company.
AMENDATORY SECTION (Amending WSR 11-24-067, filed 12/6/11, effective 1/6/12)
WAC 308-409-050 Fees and charges.
The following fees shall be paid under the provisions of chapter 18.310 RCW:
Title of Fee
Original licensure
Late renewal penalty
Duplicate license
Fingerprint processing
((35.25)) per vendor schedule*
Fees for the category marked with an asterisk are determined by contract with an outside vendor.
WAC 308-409-090 Valuation independence standards.
(1) Appraisal management companies shall select an appraiser who is independent of the transaction and who has the requisite education, expertise, and experience necessary to competently complete the appraisal assignment for the particular market and property type; and
(2) Appraisal management companies shall conduct appraisal management services in accordance with the requirements of the Truth in Lending Act, 15 U.S.C. Secs. 1601-1667.