Florida Association of Realtors seeks Regulation of AMC’s

From Frank Gregoire’s blog:

Thankfully, the Florida Association of Realtors has stepped up to the plate and stated their support of an effort to establish regulations for Appraisal Management Companies. During their January 26, 2009 meeting, the Board of Directors of the Florida Association of Realtors passed a motion to support the registration and regulation of Appraisal Management Companies operating in Florida. Draft legislation has been written by a concerned group of appraisers consisting of members of the Appraisal Institute, the National Association of Independent Fee Appraisers and the Florida Association of Realtors. The Florida Real Estate Appraisal Board supports the concept as well.

Frank is a former state regulator who has a lot of insight into the appraisal profession. Be sure to check out his blog.

  1. Justin, thanks for posting. Needless to say, the Florida Association of REALTORS Appraisal Council is extremely pleased with this action by the Board of Directors.
    It would not have happened without the support and cooperation of Cynthia Shelton, President of FAR, Rodger Wunderlich, Management Team Liaison to the Appraisal Council, and Trey Goldman, FAR Legislative Council.
    Additionally, kudos to the Florida Chapters of the Appraisal Institute for their lead on this effort.

  2. Gregg Brown, MAI, SRA

    Excellent news! AMCs are clearly the “weak-link” in the chain of accountability regarding appraisals. Everyone else in the process is highly regulated and it’s about time the AMCs were as well.
    Keep up the good work!!

  3. Richard Muprhy, MAI

    California is on the verge of following Florida in this necessary and immediate legislation. Kudos to Florida for paving the path!!
    Richard A. Murphy, MAI
    California State Government Relations Committee of the Appraisal Institute

  4. Paul Bourgeois

    Mississippi Association of Realtors is also pushing for AMC regulation this year – maybe if enough states follow suit, we appraisers will at least be playing on a level field –

  5. Glad to see SOME states stepping up and doing HOPEFULY the right thing. Take a moment to test-case the current abuse for reform to ACTUALLY PROTECT the public and appraiser from AMC-Bank abuse of the system. As an appraiser, I was scammed with a not-sifficient-funds check from an AMC, though I had NO choice but to use the AMC as a go between with the Bank. The Bank Intended User-Client indicated they were not my client and not responsible for the AMC or payment. The HVCC Code of Conduct needs to be reviewed as there are cracks in the code as written. Borrowers should pay a fair fee to appraisers for their service and the majority of that fee should not be split between the Bank and the AMC. I do not want to be part of that unethical borrower scam. Appraisers should not have to give a large portion of their well earned fee to the Bank-AMC. Unless the law changes many ethical appraisers will not be able to stay in business. Won’t Ethical Appraisers be needed? Why can’t a Volunatry Group of Appraisers from areas of the country be allowed to set a fair fee range for service rendered??? Thanks for allowing me to post a few facts!

  6. Armando A. Malanga

    As an ethical appraiser for 33 years, I won’t do work for AMC’s, the HMO’s of the appraisal industry. Now I know what some doctors tolerate. I want my full fee and they can collect anything in addition.

  7. David

    States won’t be regulating AMCs to help appraisers. They could care less about the appraiser. They will be doing this so they can collect the new license fees and taxes on the portion of your fee that will now go out of state.

  8. To those that believe regulation of AMCs is being proposed to generate income, that is not the case in Florida. The proposal is being advanced to PROTECT THE PUBLIC. Since there is no regulation of Appraisal Management Companies, and there are documented cases of abuses, there is a real danger to the public if AMCs continue to exist outside of the regulatory structure.
    Here in the Sunshine State, although the Florida Real Estate Appraisal Board operates on license and renewal fees, the board does not have the power or ability to use the money unless the State Legislature appropriates it back to the board.
    The FREAB is required to set fees based upon what is needed to operate their regulatory program and cannot set fees to generate in excess of the cost of the program.

  9. When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get four e-mails with the same comment. Is there any way you can remove people from that service? Bless you!

  10. Tim In Fla

    Well April 1st soon approaches. So far all I have seen is; Landsafe apparently is going to do business as usual with no change in fee’s or policy. Chase announced today to mortgage brokers that they do not see any change in policy or fee structure. I’m sure Wells/RELS will follow and Citi. April 1st truly appears to be April Fools for Appraisers.

    I didn’t expect much different. If they did change compensation for independent appraisers their staff would have bailed on them and that profit margin lost. Its not going to happen. Business as usual.

    Regulation, Dodd-Frank, meaningless….

  11. You can now easily find out who the Property Manager and Board Members are for all of the Florida HOA’s. This is a terrific resource. Check it out!