A total of 18 states now have laws on the books governing the operation of appraisal management companies, and eight more states are considering similar legislation, the Appraisal Institute reports.
Georgia, Tennessee and Oklahoma are the latest states to pass laws requiring AMCs to register with and be overseen by state appraiser boards.
Companies in those states will be barred from attempting to influence appraisals through coercion, extortion or collusion by withholding or threatening to withhold timely payment or future business from an appraiser, the Appraisal Institute said.
Although Georgia’s law goes into effect Sept. 1, Oklahoma’s and Tennessee’s laws don’t become effective until next year.
Lawmakers in Arizona, Arkansas, California, Connecticut, Florida, Indiana, Louisiana, Minnesota, Nevada, New Mexico, Oregon, Utah, Vermont, Virginia and Washington have also passed legislation governing AMCs.
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