State Legislation Updates that Affect the Appraisal Industry

State Legislation Updates that Affect the Appraisal IndustryIn its latest quarterly Washington Report, the Appraisal Institute provided a list of state-related mandates that affect the valuation profession. Many of these bills are still being considered by their respective state legislatures, but a couple have already passed into law.

In response to recent discriminatory claims, several states introduced legislation to help combat bias, including California, Illinois, Minnesota, and New Jersey. Maryland also introduced similar legislation, which was recently passed and will offer financial assistance to affordable housing developers in low-income and historically redlined neighborhoods that have experienced appraisal gaps.

Others, such as Florida, Kentucky, and Montana, have bills that update employee and/or member requirements for their respective Appraisal Boards – with Kentucky already passing its mandate and now requiring appraisers to have at least 5 years of experience when conducting grievance investigations for the board.

In addition, Kansas is considering legislation that would allow appraisers to exclude the sales comparison approach for unique rural properties (in which there are no comparable sales within 30 miles), while South Carolina is proposing a bill that would require AMCs to post a $25,000 surety bond – replacing the existing requirement of a “detailed statement of current financial condition” or $50,000 surety bond.

For more information, including additional state-related mandates, check out the Appraisal Institute’s Q1 2021 Washington Report.

 

Source:
Appraisal Institute – appraisalinstitute.org

Topics: Lenders, Appraisers, AMCs, Compliance, Regulations