On Saturday, May 16, 2009, the NAR Board of Directors adopted policy that supports the regulation of appraisal management companies, primarily through FIRREA and the existing appraisal regulatory infrastructure. NAR President Charles McMillan hinted at such a policy in March when he testified before the House Financial Services Subcommittee on appraiser independence.
NAR’s Policy: That NAR supports the empowerment of federal mortgage regulators to adopt standards for real estate appraisal management companies and promulgate licensing requirements of said companies to the states through the Financial Institutions Reform and Recover Enforcement Act (FIRREA) and other similar legislation.
NAR’s Rationale: Appraisal management companies are not currently regulated at the federal level and regulation at the state level varies. Regulation would ensure that AMCs operate within the same basic guidelines and standards as independent appraisers. Further, this allows AMCs to be regulated within the existing appraisal regulatory structure, which avoids the need to create additional layers of government bureaucracy.