(a) AMCs, persons who own more than 10% interest in an AMC, and individuals who act as the primary contact for an AMC must be honest, trustworthy, and reliable. Accordingly, such persons must satisfy the Board of their honesty, integrity, and trustworthiness before a registration may be issued and upon renewal.
(b) The board deems the following felonies and misdemeanors directly related to the field of appraisal management and suggestive of a lack of the requisite moral character:
  (1) offenses involving fraud or misrepresentation;
  (2) offenses against real or personal property belonging to another, if committed knowingly or intentionally;
  (3) offenses against public administration;
  (4) offenses involving the sale or other disposition of real or personal property belonging to another without authorization of law;
  (5) offenses involving moral turpitude; and
  (6) offenses of attempting or conspiring to commit any of the foregoing offenses.
(c) In determining whether a criminal offense by an applicant, the primary contact, or an owner of any interest in the AMC prevents the issuance or renewal of a registration, the Board will consider the following factors:
  (1) the nature and seriousness of the crime;
  (2) the relationship of the crime to the purposes for requiring a registration to provide appraisal management services;
  (3) the extent to which a registration might offer an opportunity to engage in further criminal activity of the same type as that which the person had previously been involved; and
  (4) the relationship of the crime to the ability, capacity, or fitness required to be involved, directly or indirectly, in performing the duties and discharge the responsibilities of AMC.
(d) In determining the present fitness of a person who has committed an offense under this section, the Board will consider the following evidence:
  (1) the extent and nature of the person's past criminal activity;
  (2) the age of the person at the time of the commission of the crime;
  (3) the amount of time that has elapsed since the person's last criminal activity;
  (4) the conduct and work activity of the person prior to and following the criminal activity;
  (5) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; and
  (6) other evidence of the person's present fitness including letters of recommendation from prosecution, law enforcement, and correctional officers who prosecuted, arrested, or had custodial responsibility for the person; the sheriff and chief of police in the community where the person resides; and any other persons in contact with the person.
(e) A person is presumed to lack the requisite moral character if less than two years has elapsed since the offense was committed.
(f) An applicant is presumed to be unfit to perform appraisal management services if the person has violated the appraiser independence standards of Section 129E of the Truth in Lending Act (15 U.S.C. §1601 et seq.). This presumption may be rebutted by credible evidence to the contrary.
(g) It is the responsibility of the applicant to the extent possible to secure and provide the Board the recommendations of the prosecution, law enforcement, and correctional authorities, as well as evidence, in the form required by the Board, relating to whether the applicant has maintained a record of steady employment, has maintained a record of good conduct, and is current on the payment of any outstanding court costs, supervision fees, fines, and restitution.
(h) A currently incarcerated individual does not possess the required good moral character.
(i) The primary contact and each owner of more than 10% of the AMC must consent in writing to a criminal history background check at the time the AMC submits an application for registration or renewal.
(j) An applicant must provide information related to whether a person who owns an interest in the applicant has:
  (1) had a license or certification to act as an appraiser denied, revoked, or surrendered in lieu of revocation;
  (2) the license or certification to act as an appraiser has not been subsequently granted or reinstated; and
  (3) the license or certification to act as an appraiser was denied, revoked, or surrendered in lieu of revocation for a nonsubstantive reason for the Board's determination under §159.102 of this chapter.
(k) An application for registration or renewal of registration that is denied by TALCB Division staff may be reviewed and reconsidered by the Executive Director if the applicant submits a written request for reconsideration within 10 days of notice of the denial. The right to request reconsideration is distinct from, and in addition to, an applicant's right to appeal an application denial before SOAH.

Source Note: The provisions of this §159.105 adopted to be effective November 3, 2011, 36 TexReg 7320; amended to be effective December 14, 2014, 39 TexReg 9668; amended to be effective December 10, 2017, 42 TexReg 6926; amended to be effective December 9, 2018, 43 TexReg 7892; amended to be effective December 25, 2022, 47 TexReg 8272; amended to be effective December 3, 2023, 48 TexReg 6905