Petition to SCLLR Appraisers Board

[Debij310]

[url]http://www.gopetition.com/petitions/llr-regulatory-review-comments.html[/URL]

 

[Mike Kennedy]

May wish to edit the petition by deleting the assertion below which is false:

"the law requires that a third party be used".

Neither the HVCC or Dodd-Frank required Lender utilization of AMCs.

Further, the published OCC Interagency Regulations pursuant to D-F and TILA et al (federal laws governing appraiser selection) stipulated this guidance for Lenders:

"Third Party Arrangements. This section in the Guidelines addresses the risk management practices that an institution should consider if it uses a third party to manage or conduct all or part of its collateral valuation function. In the Guidelines, this section was expanded to provide additional specificity on an institution’s responsibilities for the selection, monitoring, and management of arrangements with third parties. Revisions to
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this section reflect requests from commenters for clarification on the relationship between regulated institutions and third parties. Commenters also asked the Agencies to reaffirm that an institution cannot outsource its responsibility to maintain an effective and independent collateral valuation function. The Proposal and Guidelines reference each Agency’s guidance on third party arrangements. Revisions to this section summarize key considerations from those issuances and state that institutions should use caution in determining whether to engage a third party. In response to several comments regarding an institution’s use of appraisal management companies, this section addresses the due diligence procedures for selecting a third party, including an effective risk management system and internal controls"

http://www.occ.gov/topics/credit/commercial-credit/appraisals.html

 

[Brian Weaver]

"· Lack of any type of surety bond requirement for AMC’s which would protect small business owners and appraisers in the event that a management company files for bankruptcy."

Be careful. The Surety Bond in Illinois does NOT protect appraisers from failed AMCs. Few Surety Bonds do that. A Recovery Fund is what you're looking for and that's completely different.