Arizona is one of many states that have begun to implement procedural changes with regards to appraisal management companies. Arizona’s reform bill titled Senate Bill 1351 passed in mid April, and it is now on its way to the House where it is expected to pass without extended delays. The new bill requires appraisal management company owners to submit to a background check. The bill also requires appraisal management companies to reveal any hidden fees to consumers and comply with the same rules applied to lenders and appraisers.
Appraisal management companies were created to act as a buffer between lenders and appraisers. As the federal government continues to enact financial reform within the mortgage market, one of the new guidelines requires that federal loan guarantors use appraisal management companies. This insures that banks and lending institutions are not able to influence the outcome of a properties actual value. Prior to the implementation of these new guidelines banks and lenders had direct access to appraisers. The practice allowed banks the opportunity to apply pressure on appraisers to tilt the value of a property in the banks direction.
Sue Miller, who is the president of the Coalition of Arizona Appraisers said “the rules implemented in May 2009 have done some good for appraisers and consumers”, Mrs. Miller further stated “while the new code has made some appraisals more objective, some appraisal management firms continue to be influenced by some bankers and lending institutions”. The issue now at hand is there are currently no regulation policies in effect when it comes to appraisal management firms. Many in the financial community believe that these appraisal management firms. Many in the financial community believe that these appraisal management firms should fall under many of the same rules and guidelines as banks and independent appraisers. Without some form of oversight it is feared that the practice of undue influence being applied by banks will continue through these appraisal management firms. If in fact Senate Bill 1351 passes the House many of these fears should be calmed.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites