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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: COM DP 11-0-0-0 |
HB 2501: appraisal management companies; definition
Sponsor: Representative Livingston, LD 28
Caucus & COW
Overview
Conforms the statutory definition of appraisal management company with the federal definition.
History
The Arizona Department of Insurance and Financial Institutions (DIFI) is the primary regulatory authority that oversees and administers laws governing Appraisal Management Companies (AMCs). DIFI is responsible for the registering, monitoring, and investigating of AMCs to ensure compliance with laws and regulations (A.R.S. § 32-3605).
An AMC is an entity that administers an appraiser panel of independent contract appraisers to perform real property appraisal services, receives requests for real property appraisal services from clients, and for a fee, contracts with one or more independent appraisers to perform appraisal services. They serve as a third-party liaison between primarily lenders and appraisers.
AMCs are statutorily defined as a corporation, partnership, sole proprietorship, subsidiary or other business entity that directly or indirectly performs appraisal management services, and that: a) administers an appraisal panel of at least 16 state-licensed or state-certified appraisers in one state who are independent contractors or at least 25 state-licensed or state-certified appraisers in at least two states who perform real property appraisal services in this state for clients; and b) otherwise serves as a third-party liaison of appraisal management services between clients and appraisers (A.R.S. § 32-3661).
AMCs are federally defined as a person that: 1) provides appraisal management services to creditors or to secondary mortgage market participants, including affiliates; 2) provides such services in connection with valuing a consumer's principal dwelling as security for a consumer credit transaction or incorporating such transactions into securitizations; and 3) within a given 12-month period, oversees an appraiser panel of more than 15 State-certified or State-licensed appraisers in a State or 25 or more State-certified or State-licensed appraisers in two or more States (12 CFR § 34.211).
Provisions
1. Modifies the definition of appraisal management company, to include an entity that does either:
a. administers the specified appraisal panel who perform real property appraisal services within a twelve-month period; or
b. otherwise serves as a third-party liaison. (Sec. 1)
2. Defines twelve-month period as the calendar year unless an alternative twelve-month period is prescribed by DIFI. (Sec. 1)
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6. Initials PB HB 2501
7. 1/22/2026 Page 0 Caucus & COW
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