Appraisal groups release model AMC legislation and invite public comment MortgagePress.comAppraisal Institute, appraisal management companies, model legislation, registration, regulation, American Society of Appraisers,National Association of Independent Fee Appraisers
As the number of appraisal management companies (AMCs) continues
to grow across the United States, the nation's largest professional
organizations of real estate appraisers are releasing draft model
legislation calling for the registration and regulation of AMCs.
The model legislation is a joint effort of the Appraisal Institute
(AI), the American Society of Appraisers (ASA), the American
Society of Farm Managers and Rural Appraisers (ASFMRA), and the
National Association of Independent Fee Appraisers (NAIFA). The
organizations are inviting comment and discussion from all
stakeholders regarding the model and the overall topic of the
future regulation of AMCs. A copy of the draft model legislation is
available by clicking
here.
"The nation's real estate appraisers are excited to be at the
forefront on this very important issue. We look forward to a robust
discussion regarding AMC registration and regulation. The model is
intended to be a starting point from which the appraisal community,
state appraiser boards, and state legislatures can begin to draft
their own legislation and regulation," explained Bill Garber,
director of government and external relations for the Appraisal
Institute.
Garber further explained that the language in the model is
intended to give state appraiser boards the statutory authority
that they need to develop and implement registration requirements
for appraisal management companies operating in their states.
"Today, AMCs are presenting themselves as appraisal service
providers to the public, charging consumers appraisal fees on their
HUD-1 statements," Garber explained. "Yet these entities are
currently outside the bounds of state appraisal regulatory
agencies. This model bill is intended to address this glaring
loophole."
As currently drafted, the model contains the following
provisions:
• Requires the registration of AMCs operating in the state
that order residential appraisals from independent appraisers.
Provides exemptions for "in-house" appraisal departments, AMCs that
order less than 10 appraisals in a state in a year, and for
appraisers that subcontract to other appraisers on an incidental
basis;
• Prohibits AMCs from being owned by individuals who have
had an appraiser license or certification denied, refused,
cancelled or revoked;
• Requires the identification of a "controlling person"
for each AMC;
• Requires AMCs to have systems in place to verify that
they only utilize licensed or certified appraisers, and that all
appraisals are in compliance with USPAP;
• Enacts requirements that ensure that appraisers are free
from coercion or inappropriate influence from AMCs; and
• Provides for the adjudication of disputes between AMCs
and independent appraisers.
"The organizations look forward to working with state
legislators, state boards and our local chapters as they begin
discussions on this extremely important topic in their states,"
said Garber.
For more information, visit www.appraisalinstitute.org.
