Amend Regulation Of Appraisal Management Companies
Real estate appraisers - appraisal management companies - regulation in accordance with federal law. The act amends the definition of "appraisal management company" to contain all of the elements specified in recent amendments to Title XI of the federal "Financial Institutions Reform, Recovery, and Enforcement Act of 1989" (FIRREA) and regulations adopted in furtherance of FIRREA. In addition, the act adds a definition of "appraiser panel" to include appraisers working as independent contractors. The state board of real estate appraisers is directed to:
- Maintain a separate list of appraisal management companies (AMCs) that have an appraiser panel larger than the federal jurisdictional threshold of 15 appraisers in Colorado or 25 appraisers in all states in which the company operates;
- Require that an AMC establish processes and controls to ensure compliance with the federal "Truth in Lending Act" and applicable federal regulations;
- Collect an annual registry fee from AMCs that operate as subsidiaries of federally regulated financial institutions; and
- Transmit the annual registry fee to the federal financial institutions examinations council.
(Note: This summary applies to this bill as enacted.)