HB12-1110

HB12-1110 - Regulation Of Appraisal Management Companies

Passed/Signed into Law
Concerning The Regulation Of Appraisal Management Companies.

In compliance with federal law, Colorado currently requires the licensing of real estate appraisers. In order to promote enhanced consumer protection, recently adopted federal guidelines now require mortgage lenders to use entities known as appraisal management companies, which hire licensed real estate appraisers, to value property for lending purposes. Appraisal management companies are not currently subject to regulation under Colorado law.

The bill authorizes the board of real estate appraisers in the division of real estate in the department of regulatory agencies to regulate appraisal management companies. Necessary terminology is defined and the registration of appraisal management companies is required. Section 5 of the bill sets forth the requirements for registration and exemptions for certain types of activities. Section 3 of the bill amends the section creating the board of real estate appraisers by adding a member who is an officer or employee of an appraisal management company and subtracting one public member. Requirements for owners and controlling persons of appraisal management companies are established, including a requirement that certain persons submit information, including fingerprints, for criminal history record checks. The bill sets forth prohibited activities and grounds for disciplinary action against appraisal management companies and owners and controlling persons. Administrative and criminal penalties for violations are established, and the board of real estate appraisers is granted the power to administer the provisions of the bill.

The bill requires real estate appraisers to maintain errors and omissions insurance. Appraisal management companies are required to post with the board a surety bond in the amount of $25,000.

Sections 12 through 15 of the bill make conforming amendments to existing statutes to make them consistent with the changes made in the bill.

Latest update: June 8, 2012
06/08/2012 Governor Action - Signed
05/18/2012 Sent to the Governor
05/17/2012 Signed by the President of the Senate
05/17/2012 Signed by the Speaker of the House
05/09/2012 Senate Third Reading Passed
05/09/2012 Senate Third Reading Passed
05/09/2012 Senate Third Reading Reconsidered
05/08/2012 Senate Second Reading Special Orders - Passed
05/04/2012 Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole
05/01/2012 Senate Committee on Finance Refer Unamended to Appropriations
04/23/2012 Senate Committee on Business, Labor and Technology Refer Unamended to Finance
04/09/2012 Introduced In Senate - Assigned to Business, Labor and Technology
04/04/2012 House Third Reading Passed
04/03/2012 House Third Reading Laid Over Daily
04/02/2012 House Second Reading Passed with Amendments
03/27/2012 House Second Reading Laid Over Daily
03/23/2012 House Committee on Appropriations Refer Amended to House Committee of the Whole
03/07/2012 House Committee on Finance Refer Amended to Appropriations
02/23/2012 House Committee on Economic and Business Development Refer Amended to Finance
01/20/2012 Introduced In House - Assigned to Economic and Business Development