Following is a Newsletter Article summarizing the recent AMC legislation.
It is official, the Colorado legislature passed Appraisal Management Company (AMC) legislation in 2012. Governor John Hickenlooper signed the bill into law on June 8, 2012 and it’s requirements become effective July 1, 2013. To read the bill (HB12-1110) go to the Colorado Coalition of Appraisers’ Legislative webpagewww.cocoapp.org/AMC (which is this page - please see link below).
Highlights of the bill include:
• Requires AMCs to exercise due diligence when hiring and/or engaging a real estate appraiser.
• Prohibits AMCs from attempting to influence the development, reporting, result, or review of a real estate appraisal.
• Enacts reasonable registration and regulatory structure for AMCs operating in Colorado.
• Requires The Division of Real Estate to administer the provisions in compliance with The Dodd–Frank Wall Street Reform and Consumer Protection Act.
• Implements the requirements of federal law in the least burdensome manner to real estate appraisers and AMCs.
• Establishes an enforcement mechanism for The Division of Real Estate.
• Requires payment to appraisers within 60 days after completion of the appraisal.
• AMCs are required to provide a $25,000 surety bond to ensure payment to appraisers.
The AMC bill was part of Governor Hickenlooper’s 2012 legislative agenda. The AMC bill was sponsored by Representative Angela Williams and Senator Morgan Carroll. The AMC bill had the support of the Department of Regulatory Agencies (DORA), with Marcia Waters, Director, Real Estate Division, actively overseeing the process and negotiating key issues with the legislature. Despite the fact that implementing AMC legislation is mandated by Dodd-Frank by 2014 and that 32 states have already approved AMC legislation, getting the AMC legislation through the Colorado legislature was difficult. The Colorado Coalition of Appraisers (CCA) through a coordinated effort with it’s member organizations supported the bill and provided testimony at multiple hearings. CCA officers providing testimony on behalf of the AMC legislation included: Jo Stinett, President and Lee Ormiston, Treasurer. Gayle Berry, CCA lobbyist, played a major role in successfully moving the AMC legislation through the process.
The following link will take you to a copy of the final bill which has been signed.