Provides relative to customary and reasonable fees paid by appraisal management companies
The enactment of HB 882 would solidify the Louisiana Real Estate Appraisers Board's role in overseeing AMC operations, mandating that they maintain detailed records about the appraisal process. This legislative measure is expected to protect appraisers from underpayment and enhance overall accountability within the appraisal sector, thus bolstering the integrity of residential mortgage appraisals in Louisiana. Furthermore, it creates a structured approach for determining customary fees through objective third-party studies and surveys.
House Bill 882 aims to regulate and ensure that appraisal management companies (AMCs) compensate appraisers at a rate that is customary and reasonable for appraisals within the relevant market area. This includes precise definitions of the geographic zones for appraisal fees to be evaluated based on zip codes, parishes, or metropolitan areas. The bill also retains existing laws but enhances documentation requirements for the methods and factors used by AMCs to determine appraisal fees, ensuring transparency and compliance with both state and federal standards.
The sentiment surrounding the bill appears primarily positive, with proponents emphasizing the need for fair compensation for appraisers and enhanced accountability for AMCs. Supporters argue that these regulations will lead to better protection for consumers and the integrity of real estate transactions, while opponents may express concerns over the administrative burden this places on AMCs and potential implications for their operational flexibility.
Notably, there are points of contention regarding the level of oversight the Louisiana Real Estate Appraisers Board would have over AMCs and how this might affect the overall cost of appraisal services. Critics may argue that stringent regulation could lead to higher fees for consumers, while supporters would likely counter that ensuring customary and reasonable fees is necessary to promote fair market practices and protect appraisers’ livelihoods.