1. (a) A license holder must review the work of appraisers performing appraisal services on 1-4 family unit properties collateralizing mortgage obligations by performing a review in accordance with Standards 3 and 4 of USPAP of:

   1. (1) one of the first five appraisals performed for the license holder by each appraiser, prior to making a sixth assignment; and
   2. (2) a total of two percent, randomly selected, of the appraisals performed for the AMC for each twelve-month period following the date of the AMC's registration.
2. (b) Appraisal reviews performed pursuant to subsection (a)(1) of this section will be counted toward the calculation of two percent for the purposes of subsection (a)(2) of this section.
3. (c) An appraisal review pursuant to subsection (a)(1) of this section is not required if the first five appraisals by an appraiser were completed before the AMC was required by the AMC Act to be registered with the Board.

4. (d) An appraiser is qualified to perform an appraisal review within the meaning of §1104.153 of the AMC Act if the appraiser conducting the review:

   1. (1) is licensed or certified to act as an appraiser in Texas or another jurisdiction;
   2. (2) holds the appropriate credential to have performed the appraisal being reviewed; and
   3. (3) does not develop an opinion of value.

5. (e) To satisfy the requirements of the AMC Act and this rule, a license holder performing an appraisal review must develop a credible opinion about the completeness, accuracy, adequacy, relevance and reasonableness of the work under review and adhere to the following minimum scope of work:

   1. (1) research and consult the appropriate data sources for the work being reviewed to, at a minimum, validate the significant characteristics of the comparables and the essential elements of the transactions including:

      1. (A) the multiple listing service(s) or other recognized methods, techniques and data sources for the geographic area in which the work under review was performed, if the work under review included a sales comparison approach; and
      2. (B) the sales or listing history of the property which is the subject of the work under review, if that property was sold within the three years prior to the effective date of the work under review or listed for sale as of the effective date of the work under review;
   2. (2) provide a certification that complies with Standard 4 of USPAP.
6. (f) If the reviewer elects to develop an opinion of value or review opinion, the review must comply with the additional provisions of Standards 3 and 4 of USPAP governing the development of an opinion of value or review opinion.

Source Note:The provisions of this §159.155 adopted to be effective March 5, 2012, 37 TexReg 483; amended to be effective December 4, 2012, 37 TexReg 9509; amended to be effective September 11, 2013, 38 TexReg 5879; amended to be effective December 14, 2014, 39 TexReg 9668; amended to be effective December 10, 2017, 42 TexReg 6927; amended to be effective December 9, 2018, 43 TexReg 7892.