New Law Governs AMCs' Conduct

By Staff (Oct 15, 2009 )

With the signing this week of SB 237, California became the sixth state in the nation to regulate appraisal management companies to ensure that they follow the Home Valuation Code of Conduct.

The new law requires all appraisers to be licensed by the Office of Real Estate Appraisers and requires all senior managers and directors in appraisal companies to pass criminal background checks. AMCs are also required to pay independent appraisers in a timely manner, and prohibited from threatening to withhold business from them.

The National Association of Realtors opposed the bill, and has requested an 18-month moratorium on the Code of Conduct, claiming that it allows inexperienced appraisers to operate in neighborhoods where they lack experience and to use distressed properties as the basis for sales comparisons.
Read More at InMan News.