HB490 Alabama 2010 Session

Summary

Primary Sponsor

Randy WoodRepresentative

Republican

Session

Regular Session 2010

Title

Real Estate Appraisal Management Companies, subject to regulation by Real Estate Appraisers Board, Real Estate Appraisers Act, renamed the Alabama Real Estate Appraisers and Appraisal Management Company Registration and Regulation Act, Secs. 34-27A-50 to 34-27A-64, inclusive, added; Secs. 34-27A-1, 34-27A-2 am'd.

Summary

HB490 would regulate appraisal management companies in Alabama, rename the Real Estate Appraisers Act, and establish a registration and oversight system run by the Real Estate Appraisers Board.

What This Bill Does

It renames the existing act to the Alabama Real Estate Appraisers and Appraisal Management Company Registration and Regulation Act and creates a new article to regulate appraisal management companies (AMCs). It requires AMCs to register, post a $20,000 bond, pass background and character checks, designate a controlling person, and renew registration annually. It sets standards for appraiser panels, independence, fee disclosure, audits, and record-keeping to ensure appraisals follow USPAP, and gives the board enforcement powers including fines and disciplinary actions with due process protections. It also lists exemptions for certain employer–employee setups and internal bank units, and establishes an effective date after passage and governor approval.

Who It Affects

• Appraisal management companies and their owners/controlling persons will must register with the board, meet character and financial requirements, post a bond, undergo background checks, designate a controlling person, and comply with ongoing oversight.
• Licensed or certified real estate appraisers and the lenders/clients who rely on appraisal services will be affected by panel requirements, fee disclosures, independence protections, and due-process procedures for removal from panels; appraisals must comply with USPAP and payment timelines.

Key Provisions

• Renames the act to the Alabama Real Estate Appraisers and Appraisal Management Company Registration and Regulation Act and adds Article 2 to regulate AMCs.
• Defines key terms: appraisal management company, appraisal management services, appraisal panel, and related concepts; requires adherence to Uniform Standards of Professional Appraisal Practice (USPAP).
• Makes it unlawful to operate as an AMC or perform appraisal management services without registration; registration is valid for one year and requires certain criteria to be met.
• Requires AMCs to register with the Real Estate Appraisers Board, submit a bond of $20,000, pass background checks, and designate a controlling person who meets licensing, character, and financial stability requirements.
• Prohibits certain ownership, employment, and contractor relationships with individuals who have prior disqualifications or misconduct in appraising; requires verification and ongoing oversight of appraisers on panels.
• Mandates AMCs to verify appraisers are licensed or certified and to ensure appraisers are properly trained and compliant; restricts payment timelines and requires timely payments to appraisers (within 45 days after completion).
• Imposes annual certifications, audits of appraisals, and detailed record-keeping by AMCs, with records retained for at least five years and records of service requests and assigned appraisers kept.
• Requires disclosure of appraiser fee schedules and methodologies to the board; the board may publish substantive fee-related results for transparency.
• Gives the board authority to censure, suspend, revoke registrations, assess investigation costs, and impose fines up to $25,000 for violations, with due process protections and adjudicatory procedures.
• Establishes exemptions for purely employer-employee arrangements, certain bank units, and some inter-employee requests, limiting the reach of AMC regulation in those cases.
• Provides a defined effective date: the act takes effect on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Licenses and Licensing