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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
appraisal management companies; definition
Purpose
Modifies, under the occupations and professions statutes, the definition of appraisal management company.
Background
The Department of Insurance and Financial Institutions (DIFI) is responsible for regulating the insurance industry, financial institutions, financial service professionals and business entities, including appraisal management companies. The duties of DIFI include licensing, investigating and resolving consumer complaints against regulated entities and professionals (Ariz. Const. art. 15 § 5; A.R.S. § Title 6 and Title 20).
Statute defines an appraisal as the act or process of developing an opinion of the value of real property in conformance with the Uniform Standards of Professional Appraisal Practice published by the Appraisal Foundation, or any other definition used in state or federal laws. An appraisal management company is defined as any business entity that directly or indirectly performs appraisal management services and that: 1) administers an appraiser 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 Arizona for clients; or 2) otherwise serves as a third-party liaison of appraisal management services between clients and appraisers (A.R.S. § 32-3661).
Federal regulation defines an appraisal management company as a
person that provides: 1) 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 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, as
prescribed by appraiser panel annual size calculation (12 C.F.R. §
225.191).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1.
Modifies the definition of appraisal management company to
include the administering an appraiser panel who perform property appraisal
services in Arizona for clients, within a
12-month period.
2. Defines 12-month period as the calendar year unless an alternative 12-month period is prescribed in rule by the Deputy Director of the Financial Institutions Division of DIFI.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
House Action
COM 1/27/26 DP 11-0-0-0
3rd Read 2/18/26 57-0-3
Prepared by Senate Research
March 2, 2026
JT/HD/ci