HB304 Alabama 2019 Session

Updated Feb 26, 2026

Low Interest

Summary

Primary Sponsor: Merika ColemanSenator
Democrat
Session: Regular Session 2019
Title: Real Estate Appraisers Board, evaluations of property for financial institutions authorized by federal financial institutions regulatory agencies, excluded from regulation by the board, investigators employed by board authorized to be licensees, Secs. 34-27A-2, 34-27A-3, 34-27A-5, 34-27A-23 am'd.
Summary: HB 304 defines 'evaluation' for lending and lets licensed appraisers perform federally regulated evaluations for financial institutions, exempting those evaluations from state Real Estate Appraisers Board rules and authorizing board-employed investigators who are licensees.
What This Bill Does
It defines key terms and clarifies that evaluations done for federally related lending transactions are governed by federal law, not Alabama's Chapter 27A. It allows licensed real estate appraisers to prepare evaluations for financial institutions and requires the appraisal document to clearly state 'This is not an appraisal.' It also authorizes the board to hire investigators who may themselves be licensed appraisers and to regulate licensure and discipline for appraisers; however, evaluations are not subject to the board but to federal regulatory rules. It preserves certain exemptions where the chapter does not apply, such as routine market analyses or opinions offered by brokers in ordinary course of business.

Who It Affects
Licensed real estate appraisers, who may perform evaluations for financial institutions under federal rules and must label those documents as not being appraisals.
Financial institutions and mortgage lenders (and appraisal management companies involved in federally related transactions), whose use of evaluations would be governed by federal rules rather than Alabama's appraisal board regulations.

Key Provisions
Defines 'evaluation' and states evaluations performed for federally related lending transactions are governed by federal law and are not subject to Chapter 27A.
Allows licensed appraisers to perform evaluations for financial institutions and requires the evaluation to state 'This is not an appraisal.'
Authorizes the Real Estate Appraisers Board to hire an executive director, staff, and even investigators who may be practicing licensees, and to regulate licensure and disciplinary actions for appraisers.
Section 34-27A-23 allows compliance with USPAP except when performing an evaluation, and confirms that evaluations are exempt from board regulation while still subject to federal standards.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Real Estate Appraisers Board