Who Needs an Appraisal Management Company License

Minn. Stat. §82C.03 Licensing

Subdivision 1. Requirement. It is unlawful for a person, corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity to directly or indirectly engage or attempt to engage in business as an appraisal management company, to directly or indirectly engage or attempt to perform appraisal management services, or to advertise or hold itself out as engaging in or conducting business as an appraisal management company without first obtaining a license issued by the commissioner under the provisions of this chapter.

Important Definitions

Appraisal 

"Appraisal" means (noun) the act or process of developing an opinion of value; an opinion of value; (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services. For purposes of Chapter 82C, all appraisals or assignments that are referred to involve one to four unit single-family properties.

Appraisal Management Company 

"Appraisal management company" means a corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity that directly or indirectly performs the following appraisal management services:

1. within a given 12-month period, as defined in Minnesota Statutes §82C.025 (see the Appraiser Panel Annual Size Calculation section below), administers a network or networks of more than 15 Minnesota state-licensed or state-certified real estate appraisers or 25 or more state-licensed or state-certified real estate appraisers in two or more states, who are independent contractors to the appraisal management company, as described in Minnesota Statutes §82C.025, to perform residential real estate appraisal assignments for clients;
2. receives requests for residential real estate appraisal services from clients and, for a fee paid by the client, enters into an agreement with one or more independent contractor appraisers to perform the real estate appraisal services contained in the request; or
3. serves as a third-party broker of appraisal management services between clients and appraisers.

An "appraisal management company" does not include a department or division of an entity that provides appraisal management services only to that entity. 

Appraisal Management Services 

"Appraisal management services" means the process of directly or indirectly performing any of the following functions on behalf of a lender, financial institution, client, or any other person to:

1. administer an appraiser panel;
2. recruit, qualify, verify licensing or certification, and negotiate fees and service level expectations with persons who are part of an appraiser panel;
3. receive an order for an appraisal from one person, and deliver the order for the appraisal to an appraiser that is part of an appraiser panel for completion;
4. track and determine the status of orders for appraisals;
5. conduct quality control of a completed appraisal prior to the delivery of the appraisal to the person that ordered the appraisal; or
6. provide a completed appraisal performed by an appraiser to one or more clients.

Appraiser Panel 

"Appraiser panel" means a network of licensed or certified appraisers who are independent contractors to the appraisal management company that have:

1. responded to an invitation, request, or solicitation from an appraisal management company, in any form, to perform appraisals for persons that have ordered appraisals through the appraisal management company, or to perform appraisals for the appraisal management company directly, on a periodic basis, as requested and assigned by the appraisal management company; and
2. been selected and approved by an appraisal management company to perform appraisals for any client of the appraisal management company that has ordered an appraisal through the appraisal management company, or to perform appraisals for the appraisal management company directly, on a periodic basis, as assigned by the appraisal management company.

Controlling Person 

"Controlling person" means:

1. any owner, officer, or director of an appraisal management company seeking to offer appraisal management services in Minnesota;
2. an individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with other persons for the performance of appraisal management services and has the authority to enter into agreements with appraisers for the performance of appraisals;
3. an individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company; or
4. an individual who enters into:
   • contractual relationships with clients for the performance of appraisal management services; and
   • agreements with employed and independent appraisers for the performance of real estate appraisal services.

Federally Regulated Appraisal Management Company

"Federally regulated appraisal management company" means an appraisal management company that is owned and controlled by an insured depository institution, as defined in United States Code, title 12, section 1813, and regulated by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation. 

Exemptions 

Exempt from licensure as an appraisal management company are:

1. a person that exclusively employs appraisers on an employer and employee basis for the performance of appraisals, and: the employer is responsible for ensuring that the appraisals are performed by employees in accordance with USPAP; and the employer accepts all liability associated with the performance of the appraisal by the employee;
2. a department or unit within a financial institution that is subject to direct regulation by an agency of the United States government, or to regulation by an agency of Minnesota, that receives a request for the performance of an appraisal from one employee of the financial institution, and another employee of the same financial institution assigns the request for the appraisal to an appraiser that is an independent contractor to the institution, except that an appraisal management company that is a wholly owned subsidiary of a financial institution shall not be considered a department or unit within a financial institution to which the provisions of Chapter 82C do not apply;
3. a person that enters into an agreement, whether written or otherwise, with an appraiser for the performance of an appraisal, and upon the completion of the appraisal, the report of the appraiser performing the appraisal is signed by both the appraiser who completed the appraisal and the appraiser who requested the completion of the appraisal, except that an appraisal management company may not avoid the requirements of Chapter 82C by requiring an employee of the appraisal management company that is an appraiser to sign an appraisal that is completed by an appraiser that is part of the appraisal panel of the appraisal management company; or
4. any governmental agency performing appraisals on behalf of that level of government or any agency performing ad valorem tax appraisals for county assessors.

Appraiser Panel Annual Size Calculation

How to Apply

1. Start the application at www.pulseportal.com
2. Select "Minnesota Department of Commerce" as the Program and "Appraiser" as the Board.
3. Click on "Submit License Application" from the list of options.
4. Select “Organization” as the entity type and “Appraisal Management Company” as the License Type.
5. Enter the name of the company, the state that the company is from, and the company’s Federal Employer Identification Number (EIN).
6. Continue filling out the required information within the electronic application.
7. You will receive a “Confirmation Number” that can be used to check the status of the application within Pulse Portal by using the “Application Status Inquiry” feature”. If a discrepancy is found or the application is approved, it will be indicated within the “Application Status Inquiry” feature.

Required Forms and Documents

Once the application is paid and submitted, additional documentation is required. This supplemental information can be submitted via U.S. Mail or e-mailed. Please indicate “ATTN: AMC Processor” in the subject line.

• Affidavit of Designated Controlling Person form
• Affidavit of Official Signing Application form
• Uniform Consent to Service of Process
• Biographical Statement and the Bureau of Criminal Apprehension (BCA) form for Owners, Partners and Officers.
• Disclosure of Company Owners, Partners and Officers (if not completed online).
• If the company is from Minnesota, a copy of the Certificate of Incorporation, Partnership Agreement or Articles of Organization from the Minnesota Secretary of State.
• If the company is not domiciled within Minnesota, a “Certificate of Authority to Transact Business” from the Minnesota Secretary of State’s office.
• If the applicant is a partnership, a partnership agreement.
• A certificate of good standing from the state of domicile.
• If the applicant has Minnesota employees, evidence of current workers' compensation coverage.
• If the business is operating under any name other than the exact corporate or partnership name, a copy of the "Assumed Name Certificate" issued by the Minnesota Secretary of State. (The name under which the business will be conducted must be exactly the same as the name under which the license will be issued.)

License Renewal Information

An Appraisal Management Company (AMC) license expires annually on August 31.

Application for renewal of a license is considered timely filed if received by the Department of Commerce before the date of the license expiration. An AMC failing to make timely application for renewal of the license is unlicensed until the renewal license has been issued by the commissioner and is received by the licensee.

Renewal applications can be submitted electronically to the MN Department of Commerce beginning July 1 of the applicable year, by using Pulse Portal. 

Electronic renewal applications must be received by the MN Department of Commerce before 11:59 P.M. CST on August 31 of the applicable year.

Licenses that are timely renewed are valid for a period of 12 months (that is, until August 31 of the applicable year).

Required Information 

Only the requested information having changed from the most recent prior application/ renewal must be submitted. In other words, complete only those sections of the electronic renewal application that ask for information that has changed since you submitted your previous application.

Fees 

The $2,500 non-refundable fee for the license renewal must be paid at the end of the renewal process on Pulse Portal. Pulse Portal will also charge a credit card processing fee.

How to Renew an AMC License 

• Go to www.pulseportal.com.
• Do not use your browser's "Back" button at any point in the process, or you will lose all of the data that you have entered to that point and will need to start over from the beginning.
• From the "Choose a Program" drop-down menu, select "Minnesota Department of Commerce."
• From the "Choose a Board" drop-down menu, select "Appraiser."
• Under "Renew an Existing License," select “Business” as the type of license you would like to renew.
• Enter the company's EIN, License Number, and Postal Code from your mailing address.
• Click the "Next" button. At this point, review the information that is on the licensure record and make any necessary changes.
• As you continue forward, the "Attestation" screen will appear. Click the "I Agree" button.
• The renewed license summary will appear. Click the "Continue" button.
• The Credit Card Information screen will appear. Enter all requested information. (Note: If your mailing address is in the United States, you do not need to enter anything in the "Country" field.) Click the "Continue" button.
• Verify your information on the next screen. If something needs to be added or corrected, click the "Change My Request" button. If everything is correct, click the "Renew My License" button.
• The confirmation page will appear. Please write down the Confirmation ID number and print the page for your records. The Confirmation ID number can be used to check the status of your renewal. Note: If you do not print the page for your records and click the "Close" button, a dialog box will appear that asks you to print the page for your records. Do not click the "OK" button in this box unless you do not want to print the page. Clicking the "OK" button in this box will take you to the Home page. Note: The "Print" button on this page prints the confirmation page, not your license.

Additional Information

Print a License 

Your current/renewed MN AMC License is available for printing on www.pulseportal.com.

• From the "Choose a Program" drop-down menu, select "Minnesota Department of Commerce."
• From the "Choose a Board" drop-down menu, select "Appraiser."
• Click “Print a License” under “Licensing Services.”
• Enter your company information and follow the prompts. 

Updates

Company Address Change

Address changes and completed online at www.pulseportal.com by using the “Change Your Address” tab.

If the address change is from state to state or changes your residency status, you must request an address change via email to licensing.commerce@state.mn.us.

How to Change the Controlling Person

The Controlling Person Change Form (.pdf) must be completed and submitted to the Commerce Licensing Division by e-mail or by mail.

M.S. 82C.02, Subd. 11."Controlling person" means:

1. any owner, officer, or director of an appraisal management company seeking to offer appraisal management services in this state;
2. an individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with other persons for the performance of appraisal management services and has the authority to enter into agreements with appraisers for the performance of appraisals;
3. an individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company; or
4. an individual who enters into:
   • contractual relationships with clients for the performance of appraisal management services; and
   • agreements with employed and independent appraisers for the performance of real estate appraisal services.

M.S. 82C.03, Subd. 3.Designated controlling person requirements:

1. Designation. Each appraisal management company applying to the commissioner for a license in this state shall designate a controlling person that will be the main contact for all communication between the commissioner and the appraisal management company.
2. Requirements. In order to serve as a designated controlling person of an appraisal management company, a person must:
   1. certify to the commissioner that the person is not currently subject to any cease and desist order or injunctive order that would preclude involvement with an appraisal management company, and has never been the subject of an order suspending, revoking, or denying a certification, registration, or license for real estate services, or a final order barring involvement in any industry or profession issued by this or another state or federal regulatory agency;
   2. be of good moral character, as determined by the commissioner; and
   3. submit to a background investigation, as determined by the commissioner

Ownership and Office Updates

If the company has to make changes to the ownership or to the officers, please email the Licensing Division for additional instructions.