Mississippi House Bill HB1342

Mississippi 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22
• Failed: 2/1/22

Caption

Appraisal management company; remove ninety-day exception to prohibition on removing appraisers from appraiser panel of.

Impact

The removal of the ninety-day exception means that independent appraisers will have more job security and formal protections against arbitrary removal by appraisal management companies. This change is expected to enhance professional stability among appraisers by ensuring that their removal process is transparent and justifiable. Furthermore, it allows appraisers a formal avenue to contest their removal should they believe it to be unjustified, which could improve trust between appraisers and their managing companies.

Summary

House Bill 1342 seeks to amend Section 73-34-129 of the Mississippi Code by removing the ninety-day exception that currently allows appraisal management companies to remove independent appraisers from their panels without a formal process. The bill mandates that once an appraiser is added to an appraisal management company’s panel, they can only be removed for specific reasons, namely illegal conduct, violations of the Uniform Standards of Professional Appraisal Practice (USPAP), or breaches of state licensing standards, and only after appropriate notifications and opportunities for response have been provided.

Contention

There may be points of contention surrounding this bill, particularly regarding the balance between business flexibility for appraisal management companies and the rights of independent appraisers. Critics may argue that this legislation could complicate the operations of appraisal management companies by limiting their ability to make decisions about their appraiser panels quickly. Conversely, supporters are likely to emphasize the need for increased fairness and accountability in the appraisal industry, aiming to reduce potential abuses and ensure that appraisers operate within a clearly defined regulatory framework.