Wednesday, February 25, 2009

UTAH-Legislators Crack Down on Appraisal Management Companies

Florida is not the only state interested in the regulation of Appraisal Management Companies (AMCs). The NPR station in Salt Lake City:

Legislators Crack Down on Appraisal
Management Companies

(KCPW News) Utah legislators are cracking down on appraisal management companies in an effort to help the housing market. The Utah House of Representatives passed a bill yesterday that would create a Real Estate Appraiser Licensing and Certification Board. Bill Sponsor Michael Morley said some appraisers are not disclosing the market value of a home, but what the lender or mortgage broker wants the home to be valued at.

"This would simply place a new industry that has a great deal of power over the values that are being placed on real estate under the same requirements that mortgage brokers, and lending institutions, and appraisers are already subject to," Morley said.

Morley said appraisal management companies often hire inexperienced appraisers who are susceptible to influence from lenders or mortgage brokers. And Representative Jack Draxler said regulating appraisers is important to the integrity of the housing industry.


For those of you in Utah, how about giving your State Representative a call or email to express your appreciation. Representative Morley deserves a special THANK YOU!