For the purpose of applying this part, the following terms, unless otherwise expressly indicated, shall mean and have the following definitions:
(a)CA Business & Professions Code § 11302(a) “Affiliate” means any entity that controls, is controlled by, or is under common control with another entity.
(b)CA Business & Professions Code § 11302(b) “Appraisal” means the act or process of developing an opinion of value for real property.
The term “appraisal” does not include an opinion given by a real estate licensee or engineer or land surveyor in the ordinary course of the person’s business in connection with a function for which a license is required under Chapter 7 (commencing with Section
6700) or Chapter 15 (commencing with Section 8700) of Division 3, or Chapter 3 (commencing with Section 10130) or Chapter 7 (commencing with Section 10500) of Part 1 and the opinion shall not be referred to as an appraisal. This part does not apply to a probate referee acting pursuant to Sections 400 to 408, inclusive, of the Probate Code unless the appraised transaction is federally related.
(c)CA Business & Professions Code § 11302(c) “Appraisal Foundation” means the Appraisal Foundation that was incorporated as an Illinois not-for-profit corporation on November 30, 1987.
(d)Copy CA Business & Professions Code § 11302(d)
(1)Copy CA Business & Professions Code § 11302(d)(1) “Appraisal management company” means any person or entity that satisfies all of the following conditions:
(A)CA Business & Professions Code § 11302(d)(1)(A) Provides appraisal management services to creditors
or to secondary mortgage market participants, including affiliates.
(B)CA Business & Professions Code § 11302(d)(1)(B) Provides those services in connection with valuing a consumer’s principal dwelling as security for a consumer credit transaction or incorporating those transactions into securitizations.
(C)CA Business & Professions Code § 11302(d)(1)(C) Within a given 12 calendar month period oversees an appraiser panel of more than 15 state-certified or state-licensed appraisers in a state or 25 or more state-certified or state-licensed appraisers in two or more states, as described in Section 11345.5.
(2)CA Business & Professions Code § 11302(d)(2) An appraisal management company does not include a department or division of an entity that provides appraisal management services only to that entity.
(3)CA Business & Professions Code § 11302(d)(3) An appraisal management company that is a subsidiary of an insured depository institution and regulated by a federal financial institution is not required to register with the bureau.
(e)CA Business & Professions Code § 11302(e) “Appraisal management services” means one or more of the following:
(1)CA Business & Professions Code § 11302(e)(1) Recruiting, selecting, and retaining appraisers.
(2)CA Business & Professions Code § 11302(e)(2) Contracting with state-certified or state-licensed appraisers to perform appraisal assignments.
(3)CA Business & Professions Code § 11302(e)(3) Managing the process of having an appraisal performed,
including providing administrative services such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and secondary market participants, collecting fees from creditors and secondary market participants for services provided, and paying appraisers for services performed.
(4)CA Business & Professions Code § 11302(e)(4) Reviewing and verifying the work of appraisers.
(f)CA Business & Professions Code § 11302(f) “Appraiser panel” means a network, list, or roster of licensed or certified appraisers approved by an appraisal management company to perform appraisals as independent contractors for the appraisal management company. Appraisers on an appraisal management company’s “appraiser panel” under this part include both appraisers accepted by the appraisal management company for consideration for future
appraisal assignments in covered transactions or for secondary mortgage market participants in connection with covered transactions, and appraisers engaged by the appraisal management company to perform one or more appraisals in covered transactions or for secondary mortgage market participants in connection with covered transactions. An appraiser is an independent contractor for purposes of this part if the appraiser is treated as an independent contractor by the appraisal management company for purposes of federal income taxation.
(g)CA Business & Professions Code § 11302(g) “Appraisal Subcommittee” means the Appraisal Subcommittee of the Federal Financial Institutions Examination Council.
(h)CA Business & Professions Code § 11302(h) “Bureau” means the Bureau of Real Estate Appraisers.
(i)CA Business & Professions Code § 11302(i) “Consumer
credit” means credit offered or extended to a consumer primarily for personal, family, or household purposes.
(j)CA Business & Professions Code § 11302(j) “Controlling person” means one or more of the following:
(1)CA Business & Professions Code § 11302(j)(1) An officer or director of an appraisal management company, or an individual who holds a 10 percent or greater ownership interest in an appraisal management company.
(2)CA Business & Professions Code § 11302(j)(2) An individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with clients for the performance of appraisal services and that has the authority to enter into agreements with independent appraisers for the completion of appraisals.
(3)CA Business & Professions Code § 11302(j)(3) An
individual who possesses the power to direct or cause the direction of the management or policies of an appraisal management company.
(k)CA Business & Professions Code § 11302(k) “Course provider” means a person or entity that provides educational courses related to professional appraisal practice.
(l)CA Business & Professions Code § 11302(l) “Covered transaction” means any consumer credit transaction secured by the consumer’s principal dwelling.
(m)CA Business & Professions Code § 11302(m) “Creditor” means:
(1)CA Business & Professions Code § 11302(m)(1) A person who regularly extends consumer credit that is subject to a finance charge or is payable by written agreement in more than four installments, not including a down payment, and to whom the obligation is initially payable, either on the face of the note or contract,
or by agreement when there is no note or contract.
(2)CA Business & Professions Code § 11302(m)(2) A person regularly extends consumer credit if, in any 12-month period, the person originates more than one credit extension for transactions secured by a dwelling.
(n)CA Business & Professions Code § 11302(n) “Department” means the Department of Consumer Affairs.
(o)CA Business & Professions Code § 11302(o) “Director” or “chief” means the Chief of the Bureau of Real Estate Appraisers.
(p)CA Business & Professions Code § 11302(p) “Dwelling” means:
(1)CA Business & Professions Code § 11302(p)(1) A residential structure that contains one to four units, whether or not that structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobilehome, and trailer,
if it is used as a residence.
(2)CA Business & Professions Code § 11302(p)(2) A consumer can have only one “principal” dwelling at a time. Thus, a vacation or other second home is not a principal dwelling. However, if a consumer buys or builds a new dwelling
that will become the consumer’s principal dwelling within a year or upon the completion of construction, the new dwelling is considered the principal dwelling for purposes of this section.
(q)CA Business & Professions Code § 11302(q) “Federal financial institutions regulatory agency” means the Federal Reserve Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Federal Home Loan Bank System, National Credit Union Administration, and any other agency determined by the director to have jurisdiction over transactions subject to this part.
(r)CA Business & Professions Code § 11302(r) “Federally regulated appraisal management company” means an appraisal management company that is owned and controlled by an insured depository institution, as defined in Section 1813 of Title 12 of the United States Code 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.
(s)CA Business & Professions Code § 11302(s) “Federally related real estate appraisal activity” means the act or process of making or performing an appraisal on real estate or real property in a federally related transaction and preparing an appraisal as a result of that activity.
(t)CA Business & Professions Code § 11302(t) “Federally related transaction” means any real estate-related financial transaction that a federal financial institutions regulatory agency engages in, contracts for or regulates and that requires the services of a state licensed real estate appraiser regulated by this part. This term also includes any transaction identified as such by a federal financial institutions regulatory agency.
(u)CA Business & Professions Code § 11302(u) “License” means any license, certificate, permit, registration, or other means issued by the bureau authorizing the person to
whom it is issued to act pursuant to this part within this state.
(v)CA Business & Professions Code § 11302(v) “Licensure” means the procedures and requirements a person shall comply with in order to qualify for issuance of a license and includes the issuance of the license.
(w)CA Business & Professions Code § 11302(w) “Registration” means the procedures and requirements with which a person or entity shall comply in order to qualify to conduct business as an appraisal management company.
(x)CA Business & Professions Code § 11302(x) “Secondary mortgage participant” means a guarantor or insurer of mortgage-backed securities, or an underwriter or issuer of mortgage-backed securities. Secondary mortgage market participant only includes an individual investor in a mortgage-backed security if that investor also serves in the capacity of
a guarantor, insurer, underwriter, or issuer for the mortgage-backed security.
(y)CA Business & Professions Code § 11302(y) “State licensed real estate appraiser” is a person who is issued and holds a current valid license under this part.
(z)CA Business & Professions Code § 11302(z) “Uniform Standards of Professional Appraisal Practice” are the standards of professional appraisal practice established by the Appraisal Foundation.
