State Rep. Dever Announces Passage of Bill Establishing Requirements for Appraisal Management Companies

COLUMBUS—State Representative Jonathan Dever (R-Madeira) today announced the passage of House Bill 213, which establishes requirements for appraisal management companies (AMCs) and brings Ohio into compliance with federal law and regulations.
 
AMCs are third-party service providers hired by lenders to work with appraisers to complete residential assignments. Provisions added to the federal Dodd-Frank Wall Street Reform and Consumer Protection Act give states 36 months to adopt regulations for AMCs in order to meet new required standards.
 
“With the passage of House Bill 213, we are ensuring that Ohioans can continue to pursue their American dream of homeownership, while protecting them against predatory practices,” said Dever.
 
For AMCs to continue facilitating federally related transactions, Ohio must be in accordance with federal law by no later than August 10, 2018, unless an extension is deemed appropriate by the Appraisal Subcommittee of the Federal Financial Institutions Examination Council.  
 
Through House Bill 213 Ohio would meet the federal requirements for AMC licensure, which include:
 
• Registration, with and subject to, supervision by an appraiser certifying and licensing agency in the state or states in which the company operates
• Verification that only state-certified or state-licensed appraisers are used for federally related transactions
• Requiring  appraisals to comply with the Uniform Standards of Professional Appraisal Practice
• Requiring  appraisals to be conducted in accordance with the statutory valuation independence standards
• Requiring each person that owns more than 10 percent of an appraisal management company to be of good character and submit to a background check
 
House Bill 213 now goes to the Ohio Senate for further consideration.