Connecticut House Bill HB05221

Connecticut 2010 Regular Session

• Introduced: 2/17/10
• Refer: 2/17/10

Caption

An Act Concerning The Registration Of Appraisal Management Companies.

Impact

The impact of HB 05221 on state laws includes the establishment of a formal registration process for AMCs, which previously operated without stringent oversight. By implementing these regulations, the legislation helps to protect consumers from potential malpractice associated with appraisals and ensures that appraisals uphold a standard of quality and objectivity mandated by the Uniform Standards of Professional Appraisal Practice (USPAP). Additionally, AMCs will be required to maintain records of all appraisal requests and perform periodic evaluations to confirm compliance with these standards.

Summary

House Bill 05221 aims to regulate appraisal management companies (AMCs) in the state by requiring them to register with the Department of Consumer Protection. The legislation establishes guidelines that AMCs must follow to ensure that appraisal practices are conducted fairly and without conflict of interest. Notably, the bill outlines the necessary qualifications for individuals managing these companies, including the stipulation that more than ten percent ownership of an AMC cannot be held by someone with a denied or revoked appraiser’s license. This regulatory framework seeks to enhance the credibility and effectiveness of appraisals conducted within the state.

Contention

There are concerns regarding the bill's potential limitations on the ease of doing business for appraisal management companies, particularly in the wake of expanded regulatory requirements. Some stakeholders in the real estate sector argue that the bill may impose unnecessary bureaucracy and may increase operational costs, which could be passed on to consumers. Critics believe that while regulation is necessary to protect consumers, the specifics laid out in this bill could stifle competition among AMCs, leading to higher service costs in the appraisal market.