Thursday, March 29th, the Michigan House passed House Bills 4975 and 5271 to provide regulatory structure to Appraisal Management Companies (AMC's). The bills were introduced by Realtor member and State Rep Margaret O'Brien, a Republican from Portage, Michigan.
In compliance to Dodd-Frank, AMC's would need to meet 4 minimum requirements:
- Register with and be subject to supervision by State-appraiser certifying and licensing agency in each state which they operate;
- Verify that only licensed or certified appraisers are used for federally related transactions;
- Require appraisals coordinated by AMC comply with USPAP;
- Require appraisals are conducted independently and free from inappropriate influence and coercion pursuant to appraisal independence standards.
The bills now move to the Michigan Senate for consideration.
While this is a large step forward, 2 key additions would have made this legislation stand above most other states:
- Requirement that AMC's select appraisers based upon competency rather than price;
- Require fee structure to be based upon local non-AMC fees.
However, this legislation is a welcome beginning and I would urge any Realtors or Appraisers within Michigan to contact their local Senator and urge swift passage of the measure.
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