1. “Appraisal management company” means a person, limited-liability company, partnership, association or corporation which, for compensation:

(a) Functions as a third-party intermediary between an appraiser valuing properties which secure mortgage loans or mortgages incorporated into a securitization and:

(1) A creditor of a consumer credit transaction secured by the principal dwelling of a consumer or other principal in secondary mortgage markets; or

(2) Any other user of real estate appraisal services;

(b) Recruits, selects, retains and administers a network or panel of appraisers in this State or in the United States, performing real estate appraisal services as independent contractors;

(c) Enters into an agreement to provide real estate appraisal services with a user of such services and one or more appraisers performing such services as independent contractors;

(d) Manages the process of having an appraisal performed, including, without limitation, providing administrative duties such as:

(1) Receiving appraisal orders and appraisal reports;

(2) Submitting completed appraisal reports to creditors and underwriters;

(3) Collecting fees from creditors and underwriters for services provided; and

(4) Reimbursing appraisers for services performed;

(e) Reviews and verifies the work of appraisers;

(f) Contracts with certified appraisers and licensed appraisers to perform appraisal assignments; or

(g) Otherwise serves as a third-party broker of appraisal services.

2. The term does not include:

(a) An appraisal firm;

(b) Any person licensed to practice law in this State who orders an appraisal in connection with a bona fide client relationship when that person directly contracts with an independent appraiser;

(c) Any person or entity that contracts with an independent appraiser acting as an independent contractor for the completion of appraisal assignments that the person or entity cannot complete for any reason, including, without limitation, competency, workload, scheduling or geographic location; and

(d) Any person or entity that contracts with an independent appraiser acting as an independent contractor for the completion of a real estate appraisal assignment and, upon the completion of such an assignment, cosigns the appraisal report with the independent appraiser acting as an independent contractor.

(Added to NRS by 2009, 1513; A 2019, 479)