HCS HB 967 -- MISSOURI APPRAISAL MANAGEMENT COMPANY REGISTRATION
AND REGULATION ACT

SPONSOR:  Cunningham (Hobbs)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Financial
Institutions by a vote of 8 to 0.

This substitute establishes the Missouri Appraisal Management
Company Registration and Regulation Act to regulate real estate
appraisal management companies.  In its main provisions, the
substitute:

(1)  Makes it unlawful for any person to act as a real estate
appraisal management company, to directly or indirectly engage or
assume to engage in the business of real estate appraisal
management, or to advertise or hold himself or herself out as
engaging in or conducting the business of real estate appraisal
management without being registered with the Division of Finance
within the Department of Insurance, Financial Institutions and
Professional Registration;

(2)  Allows the division to adopt rules necessary to implement,
administer, and enforce the provisions of the substitute and to:

(a)  Prescribe forms and procedures for submitting information to
the division;

(b)  Prescribe standards of practice for registered companies;
and

(c)  Prescribe standards for the operation of real estate
appraisal management companies;

(3)  Requires appraisal management companies to make written
application to the division for the registration of the company
accompanied by the required fee as established by rule.  No
company may be owned by a person who has had an appraiser license
or certificate refused, denied, canceled, or revoked.  Anyone
with more than 10% ownership in an appraisal management company
must be of good moral character and submit to a background
investigation at his or her own expense.  Once the division has
received all the required information and fees, a certificate of
registration authorizing the company to act as an appraiser
management company will be issued unless the division finds
reason to deny.  An applicant who is denied will be given the
opportunity for a hearing before the division;

(4)  Allows the division to take disciplinary action for
violations of the provisions of Sections 361.800 - 361.855, RSMo,
as specified;

(5)  Requires registrants who believe a real estate appraiser has
violated any applicable law or the Uniform Standards of
Professional Appraisal Practice (USPAP) to file a complaint with
the division against the appraiser;

(6)  Requires fees charged by a real estate appraiser to comply
with USPAP standards and not to contain hidden charges.  Fees
must be paid to the appraiser within 30 days of the date the
appraisal is transmitted;

(7)  Requires an applicant who is not a resident of this state to
also submit with his or her application an irrevocable consent
that service of process in any action against the applicant
arising out of the applicant's activities as an appraisal
management company be made by delivery of the process on the
division director and to submit the name and address of its
registered agent;

(8)  Requires registrants to maintain complete records of all
appraisal information and allows the division to inspect the
records periodically without prior notice or when pertinent to an
investigation;

(9)  Requires each real estate appraisal management company to
designate a managing principal who is responsible to assure that
the company is in compliance with these provisions.  An
individual registrant operating as a sole proprietorship will be
considered the managing principal.  Anyone not complying with
this provision will have his or her registration suspended until
compliance has been achieved;

(10)  Specifies that registrations will expire June 30 of every
year and become invalid unless renewed by filing an application
and paying a renewal fee as established by rule.  Additional fees
will be charged if the application is late, except that any
registrant failing to reinstate within six months will be
required to file a new application for registration.
Reinstatement is not retroactive;

(11)  Prohibits anyone under a real estate appraisal management
company, third party acting as joint venture partner, or
independent contractor from influencing or attempting to
influence the development, reporting, result, or review of an
appraisal through coercion, extortion, collusion, compensation,
inducement, intimidation, bribery, or any other manner as
specified in the substitute;

(12)  Requires the division to keep records relating to all
applicants for registration whether granted or refused.  The
division will also keep a current roster of all appraisal
management companies registered and will file the roster with the
Secretary of State on or before November 1 of each year; and

(13)  Requires a surety bond of $250,000 to accompany each
registration.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Income on General Revenue Fund of $2,242
in FY 2010, $10,102 in FY 2011, and $2,152 in FY 2012.  No impact
on Other State Funds in FY 2010, FY 2011, and FY 2012.

PROPONENTS:  Supporters say that the bill will provide a standard
of conduct for Missouri appraisers, further protect the consumer,
and bring greater accountability.  These changes will help to
eliminate conflicts of interest on mortgage appraisals.

Testifying for the bill were Representative Hobbs; Missouri
Appraisers Advisory Council; Missouri Association of Realtors;
and Missouri Bankers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am