The North Carolina Chapter of the Appraisal Institute (NCAI) is aware of legislation pending in the North Carolina Senate and House of Representatives requiring customary and reasonable fees to be paid to appraisers by Appraisal Management Companies (AMCs) for residential appraisals.
Two bills are currently pending in the House, House Bill 851 (Representatives Ross and Setzer) and House Bill 829 (Representatives Saine, Lewis, and Hardister); and two bills are currently pending in the Senate, Senate Bill 573 (Senator Gunn) and Senate Bill 571 (Senators Rabin and Woodard). NCAI would like to thank these bill sponsors for their interest and assistance in this important area of appraisal practice.
NCAI supports a law allowing appraisers to be paid customary and reasonable fees in performing residential appraisals in North Carolina. NCAI supports legislation that provides the Appraisal Board the direction and authority to adopt administrative rules to enforce and ensure that customary and reasonable fees are paid by AMCs to appraisers for residential appraisals.
All four bills pending in the legislature appear to give the Appraisal Board guidance and direction to adopt rules to enforce customary and reasonable fees for residential appraisals.
- House Bill 851 and Senate Bill 573 contain language the interested parties agreed to in 2016 to address the issue by citing to the federal Truth In Lending Act and regulations promulgated thereunder. This approach is satisfactory to NCAI.
- House Bill 829 and Senate Bill 571 contain an alternative approach to the issue, one that is not tied specifically to the federal Truth In Lending Act. If this alternative approach gives the Appraisal Board the guidance and direction it needs to adopt administrative rules to enforce customary and reasonable fees for residential appraisals (which we understand is uncertain at this time), this approach is satisfactory to NCAI.
Again, NCAI supports any legislation that gives the Appraisal Board direction and authority to adopt administrative rules to enforce and ensure that customary and reasonable fees are paid by AMCs to appraisers for residential appraisals. We hope legislation will be enacted during the 2017 legislative session on this topic, so the North Carolina Appraisal Board can begin its rulemaking process in 2017. If we can answer questions or provide additional information on this important topic, please contact our Legislative Counsel David Ferrell at 919-805-0523. Thank you.
If you were not able to make it, we hope to see you next year.
Mike Moody, MAI
2017 NCAI Government Relations Committee Chairman