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As of now, 47
states have put into law the regulations necessary to comply. Massachusetts, New
York and Wisconsin have yet to enact regulations regarding the registration and
supervision of AMCs. Two of those state legislatures, New York and Wisconsin,
have adjourned for the year. The District of Columbia (DC) City Council decided
last year to opt out of adopting a regulation.
regulations directly impact appraisal management companies, and regulators in
certain states have determined the laws apply to relocation management
companies as well. This creates additional regulatory requirements for
companies as well as increased costs associated with the application and renewal
fees for registering as an AMC.
last report, several states have acted on regulations
regarding the registration of AMCs:
Wisconsin, legislation had yet to be introduced before the legislature
adjourned for the year.
Section 1473 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act directed federal
financial institution regulatory agencies and the Consumer Financial Protection
Bureau to issue a joint rule establishing minimum requirements to be
implemented by states regarding the registration and supervision of appraisal
of AMCs include that:
In early April
2014, the Office of the Comptroller of the Currency (OCC) along with five other
federal financial regulators formally issued the long awaited joint proposed
rule on minimum standards for state registration and regulation of AMCs.
Related: New York Judge Revives U.S. CFPB Constitutionality Question
On 9 June 2015,
the agencies issued a final rule within the Federal Register. The publication
of the rule was primarily a formality as the requirements were already outlined
within section 1473 of the Dodd-Frank Act which allowed a majority of states to
enact regulations before the final rule was issued. States have had three years
from the effective date, 10 August 2018, to enact regulations.
If a state does
not adopt AMC registration regulations by 11 August 2018, then AMCs with
operations in that state, are regulated by the state and meet the thresholds, cannot
services related to a federally related transaction.
extension can be granted, however, if it is determined that a state has made
substantial progress toward establishing regulations.
It is up to the
Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination
Council to determine whether a state has comparable regulations or has made
significant progress toward establishing registration requirements. RMCs should
consult counsel as to whether a state regulation applies to RMCs and whether
their company would be required to register in a particular state.