This summer federal regulators issued for comment a plan that would establish standards for states to license and supervise appraisal management companies. This plan was no surprise as most states were moving towards compliance with the Dodd-Frank Act which requires states to license AMC’s. Of the 37 states that currently license AMC’s there does not seem to be any need for changing their requirements as all are within the guidelines of the regulatory plan.
It is hoped that this will stimulate the remaining 13 states to set up their own licensing/oversight programs. The new plan gives the states three years to set up the oversight program required by the Interim Final Rule of the Federal Reserve.
The plan defines an AMC as an organization that oversees a panel of more than 15 appraisers in a single state, or 25 or more appraisers in more than two states.
Some states have considered AMC licensing as an avenue for increased fee income. Essentially costing the consumer more in the long-term. But there have been several states that have not approached AMC licensing in this way, and have more moderate licensing fee’s and requirements, saving the consumer and lender added expense.