Industry NewsMortgage

California adopts rules for AMCs

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

California has become the sixth state to regulate appraisal management companies after Gov. Arnold Schwarzenegger signed into law legislation establishing compliance standards for the firms and requiring them to register with the Office of Real Estate Appraisers.The Appraisal Institute, an industry group representing appraisers, issued a press release lauding California's law, saying it will protect consumers and appraisers while providing "positive effects" to the state's real estate market.Arkansas, Louisiana, Nevada, New Mexico and Utah passed similar bills earlier this year, the group said, and as many as 20 other states are expected to consider such legislation when lawmakers reconvene in January.New rules for appraisals adopted May 1 by Fannie Mae and Freddie Mac have led to an increased use of appraisal management companies, which critics say often don't give appraisers adequate time to complete their work, and assign them to neighborhoods where they lack experience.Th...