Last week the Appraisal Institute announced draft legislation for states to regulate appraisal management companies (AMC). AI worked with the American Society of Appraisers, the American Society of Farm Managers and Rural Appraisers, and the National Association of Independent Fee Appraisers on this. Bill Garber, Director of Government and External Relations for AI explained that the language in the model is intended to give states the statutory authority to develop and implement registration requirements for AMCs operating in their states. Overall, the legislation:
•Requires the registration of AMCs operating in the state that order residential appraisals from independent appraisers;
•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.
AI is asking for comments and insight from the public. You can get a copy of the legislation here. Submit your thoughts on it to Scott DiBiasio of AI at 202-298-5593 or firstname.lastname@example.org