Registered AMC's

[Anthem]

"


The law does not mention reviews (desk reviews) under the definitions of what an services an AMC provides. see 93e-2.2 Definitions. (a) (2) a-g.



1) These folks are EXEMPT from the law: An appraisal management company does not include any of the following:

a. Any agency of the federal government or any State or municipal
government.

c. Any state or federally chartered bank, farm credit system, savings
institution, or credit union. If it is an REO....it is owned by one of those.


2) Yes...but could be challenged. The NC Appraisers Act covers Standards 1, 2 & 3....with Standard 3 being reviews. The poorly written AMC law fails to specifically refer to "reviews" in 93e-2.2 Definitions. (a) (2) a-g. fails to mention the word "review" or the phrase "appraisal review". Only the word "appraisal" was used as to what Appraisal management services include.

3) No. The AMC law does not apply to services provided outside of NC. That would be up to the "other state". If an appraiser who lives in NC can properly review appraisals outside of the state he would be subject to specific laws in the state outside of NC. Again, the Appraisal management services promulgated in the AMC law.....fail to mention appraisal reviews.


4) The NC Appraisers Act (93-e) and the NCAB rules do not cover Standard 4.....Appraisal Consulting. NC law only covers Standards 1, 2 & 3.




Why not just read the law and see what it says.


§ 93E-2-1. Registration required of real estate appraisal management companies;
exceptions.
Beginning January 1, 2011, it shall be unlawful for any person, corporation, partnership,
sole proprietorship, subsidiary, unit, or any other business entity in this State to do any of the
following without first registering with the Board under the provisions of this Article:
(1) Directly or indirectly engage or attempt to engage in business as an appraisal
management company.
(2) Advertise or make a representation that the person or entity is engaging in or
conducting business as an appraisal management company.
(3) In any way act as or provide the services of an appraisal management
company.
"§ 93E-2-2. Definitions.
(a) The following definitions apply in this Article:
(1) Appraisal management company. – A corporation, partnership, sole
proprietorship, subsidiary, unit, or other business entity that utilizes an
appraisal panel or fee panel and performs, directly or indirectly, appraisal
management services.
An appraisal management company does not include any of the following:
a. Any agency of the federal government or any State or municipal
government.
b. An appraiser who enters into an agreement, whether written or
otherwise, with another appraiser for the performance of an
appraisal, and upon completion of the appraisal, the appraisal report
is signed both by the appraiser who completed the appraisal and the
appraiser who requested the completion of the appraisal, except that
an appraisal management company may not avoid the requirements
of this Article by requiring that an employee of the appraisal
management company who is an appraiser sign an appraisal report
that is completed by an appraiser who is a member of the appraisal
panel of the appraisal management company.
c. Any state or federally chartered bank, farm credit system, savings
institution, or credit union.
d. Any licensed real estate broker performing only activities in
accordance with Article 1 of this Chapter.
e. Any officer or employee of an exempt entity described in this
subdivision when acting in the scope of employment for the exempt
entity.
f. Any person licensed to practice law in this State, a court-appointed
personal representative or trustee who orders an appraisal in
connection with a bona fide client relationship in which the person
directly contracts with an independent appraiser.
Page 2 Session Law 2010-141 SL2010-0141
(2) Appraisal management services. – Direct or indirect performance of any of
the following functions on behalf of a lender, financial institution, client, or
any other person:a. Administer an appraiser panel.
b. Recruit, qualify, and/or verify licensing or certification of appraiserswho are or may become part of an appraiser panel.
c. Negotiate fees and service level expectations with appraisers who are
part of an appraiser panel.d. Receive an order for an appraisal from one person and deliver the
order for the appraisal to an appraiser that is part of an appraiser
panel for completion.
e. Take and determine the status of orders for appraisals.
f. Conduct quality control of a completed appraisal performed by an
appraiser who is part of an appraiser panel prior to the delivery of the
appraisal to the person that ordered the appraisal.
g. Provide a completed appraisal performed by an appraiser who is part
of an appraiser panel to one or more persons who have ordered an
appraisal.

(3) Appraiser panel or fee panel. – A network of licensed or certified appraisers
who are independent contractors to the appraisal management company that
have:
a. Responded to an invitation, request, or solicitation from an appraisal
management company, in any form, to perform appraisals for
persons that have ordered appraisals through the appraisal
management company or to perform appraisals for the appraisal
management company directly, on a periodic basis, as requested and
assigned by the appraisal management company; and
b. Been selected and approved by an appraisal management company to
perform appraisals for any client or the appraisal management
company that has ordered an appraisal through the appraisal
management company or to perform appraisals for the appraisal
management company directly, on a periodic basis, as assigned by
the appraisal management company.
(4) Appraisal review. – The act or process of developing and communicating an opinion about the quality of another appraiser's work that was performed as
part of an appraisal assignment, except that an examination of an appraisal
for grammatical, typographical, or other similar errors shall not be an
appraisal review.
(5) Board. – The North Carolina Appraisal Board under Article 1 of this
Chapter.
(6) Employee. – An individual who has an employment relationship
acknowledged by both the individual and the company and is treated as an
employee for purposes of compliance with federal income tax laws.
(7) Registrant. – A real estate appraisal management company registered
pursuant to this Article.

thanks Bob, I will read the law once I need to, you know I never think twice about calling Don at NCAB to for clarity But these days appraisals take a back seat to my spending time with the family and flying around this gorgeous State. I sure don't miss living and breathing appraisals, I am able to enjoy it much more these days. Hope you are well!

 

[Bob Ipock]

I was wrong about something and want to correct it.


In a PRIOR VERSION of the AMC bill that eventually did pass the following section was included:


This is the OLD version that was not passed.

"§ 93E-2-5.




Managing principals.[/U]5



Each appraisal management company registered under this Article shall designate a
6 managing principal who is responsible for ensuring the company operates in compliance with
7 this Article. The managing principal shall be a certified general real estate appraiser certified
8 under Article 1 of this Chapter.
The appraisal management company shall file a form with the
9 Board indicating the appraisal management company's designation of managing principal and
10 the individual's acceptance of the responsibility. An appraisal management company shall
11 notify the Board of any change in the appraisal management company's managing principal.
12 Any appraisal management company that does not comply with this section shall have the
13 appraisal management company's registration suspended pursuant to G.S. 93E-2-8 until the
14 appraisal management company complies with this section. An individual operating an
15 appraisal management company as a sole proprietorship shall be considered the managing
16 principal for purposes of this Article.


The final diluted version of the bill dropped the "Managing Principal" and replaced it with "Compliance Officer". This "compliance officer" does not need to be a licensed or certified appraiser NOR live in NC. The original bill called for the "managing principal" to be a Certified General appraiser. Now, the "Compliance Officer" may be one of the very same "phone monkeys" that we all complain about. Next time some bozo calls from your favorite AMC....congratulate them on their promotion.


I asked several times on this forum but never had an answer as to how this law does anything to protect the public or help out appraisers. If this law is the salvation for appraisers.......we are living in a fantasy world.

 

[David Beasley]

Thanks David. That wasn't there earlier when I tried it. I guess maybe I should give them a couple of days to get all the bugs worked out.

They're still tweaking with it. Now there's a simple "Show All AMCs" button on the search form, and I did a search on a couple of names that ONLY show up in the DBA line, and the search found them. IE: I searched for only PVC, it found Murcor, Inc for me (and of course, its DBA was PVC/Murcor). So they apparently have it searching the DBA and the corp. names now from the single name search box.

I think they're getting the hang of it a little better now.

 

[JRS at OBX]

I just had a call from an AMC that wanted to order a drive-by on a 10,000SF house, pre-foreclosure. I quoted my fee and asked if they were registered. She said they were in process of registering. She asked what my turntime is. I said it depends on how soon she can get me their NC AMC registration number.

Hopefully the NCAB is processing these apps quickly! This one could be a nice fee!

 

[Couch Potato]

I just had a call from an AMC that wanted to order a drive-by on a 10,000SF house, pre-foreclosure. I quoted my fee and asked if they were registered. She said they were in process of registering. She asked what my turntime is. I said it depends on how soon she can get me their NC AMC registration number.

Hopefully the NCAB is processing these apps quickly! This one could be a nice fee!

Every appraiser should require the registration number be provided with the order. No need to search for names in the database, just check the registration number provided to you.

I asked several times on this forum but never had an answer as to how this law does anything to protect the public or help out appraisers. If this law is the salvation for appraisers.......we are living in a fantasy world.

By providing additional revenue to the NCAB, the law helps appraisers by removing some of the upward pressure on license fees. :new_all_coholic:

 

[Bob Ipock]

By providing additional revenue to the NCAB, the law helps appraisers by removing some of the upward pressure on license fees.

Only the legislature can raise the fees.

The new AMC division will require additional work and probably an added employee. The first year is great at $3,500 license fee....renewals will be less than $2,000.

It will take every dime of the AMC money to cover the costs.....including the costs for two additional board members from the AMC community. Adding two more board members is not cheap after paying per diems for attending board meetings, motel & food cost while in Raleigh and of course the travel expenses, expenses a for conferences and AARO and TAF meetings.

So maybe you are correct but I surely don't agree. Putting that aside, what if any are other benefits of the law?

 

[Kim Whiting]

Just be proud your State is far more progressive than most others. I'm in Michigan and have been pushing for AMC regulation similar to your State after talking to Mr. Archibald Williams. It's an uphill battle. We don't even have a coalition here.

 

[EddieB]

Putting that aside, what if any are other benefits of the law?

One benefit is that it should curtail these fly by night AMC's

I am fighting one now that collected the appraisal fee from the lender but still hasn't paid me.

We will see what kind of bite the board will have.

 

[Bob Ipock]

I don't know how this law will prevent "fly by night" AMCs. There are about 80 registered now and they are now fine up standing REGISTERED AMCs. They are OFFICIAL and have been blessed and approved to engage in the AMC business.

I remember 20 years ago when the USPAP and state by state licensure and certification was going to put an end to "fly by night appraisers". That plan has been a dismal failure.


In your specific case was the AMC "fly by night" when you agreed to prepare appraisals for them....or only after you could not get your money from them?

There is very little meat left on the bone after the AMC proposed bills were finally sliced, diced and pared down in the legislature. The resulting law does little more than legitimize a business that most appraisers believe was invented by Satan and maintains headquarters in Hell. A good exercise for appraisers is to put the original AMC bills side by side with what became law and see what got cut out.

Of course there will now be an AMC representative (or banking representative) sitting on the NCAB. These folks will be nothing more than un-registered lobbyists for the AMC industry. Gov. Perdue will now have 5 appointments on the 9 member board. It will be interesting to see who buys that seat.

Sometimes you don't get exactly what you had hoped for and this is going to be one of those times.

 

[EddieB]

I agree that the final bill lacked alot of what we needed but hopefully issues like prompt payment and financial oversight might benefits us. But I always listen to your insight.

Unfortunately, AMC's will be a portion of our business unless we can eliminate that business model.

As far as my situation, they were probably shady before I accepted the orders. I did due diligence here and spoke with several officers with the AMC before I got too far in bed with them and did not see any red flags. They were paying full fee but payment was 30-60 days. I prepared 10 reports in two months but have been stuck for the last four. I was batting 1000 for the past 6 years, so this really angered me.

They have restructured three times in six months so I will stick with the "fly by night" label. I don't think they would get away with this under the current legislation.