The Florida Senate today approved legislation requiring Appraisal Management Companies (AMCs) operating in Florida to register with the Department of Business and Professional Regulation (DBPR). This is one of Florida Realtors' key legislative initiatives this session. The bill now goes to the governor for his signature.
In addition to mandating registration with DBPR, the bill, once signed by Gov. Charlie Crist, will create a list of AMCs working in Florida and their locations. The bill also bans appraisers who have lost their state license from operating an AMC.
"There has been tremendous growth in the use of AMCs in the last several years," says Sarah Zieman Martinez of Florida Realtors' Public Policy team. "They play an important role in the real estate transaction but lack necessary oversight. This legislation not only requires AMCs to register with the state business board, but it also allows the Florida Real Estate Appraisal Board to adopt rules to specify the means by which an appraiser's signature may be affixed to an appraisal report."
The bill, SB 2210 by Sen. Lee Constantine (R-Altamonte Springs), passed the Senate unanimously. Its companion bill, HB 303 by Rep. Matt Hudson (R-Naples), who's also a Realtor, passed the House yesterday on a 112-0 vote.
AMCs are business entities that administer a network of independent contractor appraisers who do real estate appraisals on behalf of clients, primarily lenders.
Currently, eight other states have laws regulating AMCs. Legislation is pending in 16 other states.
© 2010 Florida Realtors®
