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Committee advances amended bill clarifying appraiser evaluations and exemptions
Summary
The Senate Industry and Business Committee voted 5-0 to give a due-pass recommendation to an amended House Bill 13 54 that clarifies that appraisers may perform evaluations, defines real property, and adds an exemption allowing lenders to accept evaluations from non-appraisers for internal use.
Senators on the Industry and Business Committee voted 5-0 to give a due-pass recommendation to an amended House Bill 13 54 that revises state appraisal law to clarify the status of evaluations and who may prepare them.
Committee members, legislative counsel, representatives of the Appraisal Board and the Department of Financial Institutions discussed language changes intended to remove ambiguity about whether licensed appraisers may produce evaluations in addition to appraisals. Matt Mengi, an assistant attorney general representing the Appraisal Board and Department of Financial Institutions, told the committee the original goal of the bill was to “make abundantly clear and specifically clear in statute that a licensed appraiser could perform an evaluation,” and to allow lenders to accept evaluations done by non-appraisers for internal use when appropriate.
The amended draft adds a definition of real property and clarifies that the term appraisal does not encompass evaluations, while asking in a separate section that licensed appraisers be explicitly permitted to provide evaluations. The committee and stakeholders removed an earlier provision that would have barred calling a prepared evaluation an appraisal; board counsel said the Appraisal Board’s existing authority to address misrepresentation would be sufficient if issues arose.
Senators praised the stakeholder process that produced the amended language. After debate and a motion to adopt the amendments, the clerk recorded aye votes from Senators Cline, Kessel, Chairman Barta, Vice Chair Behm and Senator Engott. The chair indicated he would carry the bill forward from committee.
Supporters said the changes are intended to reduce uncertainty for appraisers and lenders and to codify the difference between an appraisal (the regulated product used in many consumer lending contexts) and an evaluation (a distinct product that lenders may accept under certain conditions). The committee’s action sends the amended bill to the next stage of consideration in the Senate.
