Fifty states. Fifty potentially different legislations. Fifty chances to miss a unique provision and be held at the mercy of regulators. Fifty different fees to pay. These are just some of the problems that appraisal management companies (AMCs) face with each state enacting its own version of an AMC registration act.
Valuation Review took an in-depth look at the AMC state registration experience — from all sides. This is a round-up of our exclusive content that you can only read here at
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The AMC state registration experience
Conflict and costs. Talk to anyone in the industry about the appraisal management company (AMC) state registration issue and those are the two primary themes that bubble to surface. The conflicts are complicated and the costs are more than monetary. To date, legislatures in 34 states have enacted comprehensive AMC oversight and registration laws. Twenty-four states have also completed their rulemaking process, while 10 states are still making their way through the rulemaking process.
The costs of state registration adds up for AMCs
Lincoln Appraisal and Settlement Services already spent $75,000. According to StreetLinks President Tom Hurst, StreetLinks plans to spend more than $1 million this year to satisfy registration fees. The William Fall Group reported an expected cost of $250,000. LRES Corp. will spend approximately $50,000. InHouse Inc. has already spent more than $100,000. And Appraisal Logistics anticipates spending $150,000, with annual renewals in excess of $100,000. But the costs don’t end at registration.
Different states of AMC registration
Given that each state is responsible for crafting its own appraisal management company (AMC) registration laws, there is no one state registration law that matches that of another. Needless to say, complying with the currently enacted laws is complicated. Let’s not forget that there are still 15 states with legislation coming down the pike. “The biggest impact on the AMC industry is in the area of compliance with the state laws,” said Richard Borges II, president of the Appraisal Institute.
The means and ends of AMC state registration
Although there is some obvious frustration and animosity, some AMCs understand the motivation behind the registration, even if they feel the growing pains of legislation development. “StreetLinks supports the efforts each state has put forth for AMC regulation. While the AMC industry has been around for over 20 years, the last two to three years have brought an influx of new providers,” Hurst said.