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House approves regulation for appraisal management companies to curb appraisal abuses
Summary
The House passed HB152, extending licensing and ethical standards to appraisal management companies to reduce conflicts and appraisal manipulation; vote recorded 72-1 on Feb. 23, 2009.
SALT LAKE CITY — House Bill 152, which would subject appraisal management companies to licensing and ethical standards similar to individual appraisers, passed the Utah House on Feb. 23, 2009 by a vote of 72-1 and will be transmitted to the Senate.
Representative Morley presented the bill as a response to abuses tied to mortgage-fraud dynamics and the growing role of third-party appraisal management companies that oversee multiple appraisers. Supporters described provisions that prohibit coercion, payment incentives, collusion or other pressure intended to influence appraisal values, and that require appraisal-management entities to use licensed and certified appraisers.
Representative Draxler, a state-certified general appraiser, urged support and described cases where low fees and pressure undermined appraisal quality. Other members raised technical questions about licensing versus certification and about the regulatory scope; supporters said the bill creates a level playing field and insists on ethical standards across the industry.
The roll call recorded 72 yes and 1 no; the measure will be transmitted to the Senate for consideration.
