Colorado Appraisal Management Company Regulation Becomes Law July 1

As of July 1, 2013 Colorado will regulate the licensing and activities of Appraisal Management Companies (AMCs). This is a result of HB-1110, which was signed into law by Governor Hickenlooper in 2012.

The definition of an AMC broadly covers any external third party that oversees a network or panels of appraisers who value a consumer’s principal dwelling that is used as collateral for home loans. The definition of AMC does not include an appraisal entity that directly performs appraisal services or distributes orders to a client selected panel of appraisers to provide appraisal services on loans originated or funded by such company.

Additionally, a new definition of a Real Estate appraiser will be effective July 1, which removes the requirement that only real estate appraisers who provide appraisals for a fee or salary will be covered by the legislation. Therefore even an appraiser who performers an appraisal gratuitously will be subject to the law.

%d bloggers like this: