What to do with non-registered AMC's

[Scott R Marshall]

So I'm just wondering what peers are doing. I have not yet taken the 4 hour course (yeah I know I'm waiting till the last minute) but for those AMC's not holding a valid AMC license, what is the penalty for an appraiser accepting work from them and what is the responsibility of the appraiser who comes across an AMC placing orders without a license.

I just received an order via AppraisalPort and upon asking for their license number as I could not find them on the states site, the order was cancelled with the explantion that they were not aware of the states licensing requirements and were going to decline the order as well. While I hope that is the truth, there just seems to be the great temptation to keep going from appraiser to appraiser until they find someone who doesn't care about the states law.

I know of another AMC that also sends orders from time to time that also appears to not be registered and they've been doing it for about a year now. So either they forget that they need a license or are shopping around for the appraiser who doesn't care. So I'm asking in all honesty do you politely decline the order, turn them into the state or take the appraisal assignment and let the state sort it all out?

 

[Brian Weaver]

So I'm just wondering what peers are doing. I have not yet taken the 4 hour course (yeah I know I'm waiting till the last minute) but for those AMC's not holding a valid AMC license, what is the penalty for an appraiser accepting work from them and what is the responsibility of the appraiser who comes across an AMC placing orders without a license.

I just received an order via AppraisalPort and upon asking for their license number as I could not find them on the states site, the order was cancelled with the explantion that they were not aware of the states licensing requirements and were going to decline the order as well. While I hope that is the truth, there just seems to be the great temptation to keep going from appraiser to appraiser until they find someone who doesn't care about the states law.

I know of another AMC that also sends orders from time to time that also appears to not be registered and they've been doing it for about a year now. So either they forget that they need a license or are shopping around for the appraiser who doesn't care. So I'm asking in all honesty do you politely decline the order, turn them into the state or take the appraisal assignment and let the state sort it all out?

In Illinois, both, the unregistered AMC AND the appraiser who accepts the order will be subject to discipline. Is the Land of Enchantment any different?

Ignorance of state law is an answer...just not a good one.

 

[Michael S]

I just took the 4-hour class last month and I've already forgotten most of it since we don't deal with AMCs. I believe the onus is on the appraiser to determine if they're registered. I guess there's some registration number they're supposed to provide. Considering there's not a single AMC based out of New Mexico (which means the AMC position on the real estate appraisers board remains empty) I'm not sure how much power the board has to try and fine an out of state company. A New Mexico appraiser on the other hand is well within reach.

Marty Molloy was the teacher although he was filling in for Karen Cuellar. I'm sure either one of them could give you a definitive answer. No mention of specific penalties in the code (see below). The biggest takeaway from the class was nobody reports anything regarding violations because they don't want to rock the boat. There's never been a single complaint even filed regarding a broker charging for a BOV/BPO.

16.62.1.14 APPRAISAL MANAGEMENT COMPANIES:

A. An appraiser may not perform an appraisal for an appraisal management company (AMC) unless that company is registered pursuant to the Appraisal Management Company Registration Act 47-14-1 NMSA 1978.

B. In the body of an appraisal report completed for an AMC, the appraiser must include:

(1) the required minimum information contained within the engagement letter as set forth in AMC 16.65.2.12 NMAC; a copy of the engagement letter will meet this requirement;

(2) any additional scope of work requirements.

C. An appraiser engaged with an AMC must provide the AMC with their combined reporting system (CRS) identification number.

[16.62.1.14 NMAC - N, 08/21/2010; A, 01/16/2011]

 

[Lobo Fan]

The penalty for delivering an order to an unregistered AMC is the same for the appraiser as it is for the AMC...nothing. I was getting a ton of e-mails and calls from some scumbag AMC that was offering poor pay and rediculous terms. I finally turned them into the state. They came back and said that there was no penalty because they did not know they had to be registered.

I think the fine could be as much as $10,000 per violation, so I would think the appraisal board would be interested for fiscal purposes. These guys are doing hundreds of appraisals in NM and the appraisal board could have a nice payday. Maybe they would have the funds to go after some of the scumbags.

 

[Bob Ipock]

Simply call your state board and ask them. Better yet email them and send them a copy of the order.


Just remember.....if they are not registered in the state (and need to be)....they may just not pay you. If they scoff at the registration law then they surely won't think twice about not paying you.

 

[Bob Ipock]

From NCAB Appraiserport



How does AMC registration affect appraisers?
Appraisers are required to make sure the AMC they are
working for is registered with the North Carolina Appraisal
Board. Appraisers may be disciplined if they work for an
unregistered AMC. You must obtain the AMC’s North Carolina
registration number for every AMC. If the AMC does not have a
number or tries to tell you that they are licensed in another state, do
not accept the assignment. Contact the Board office for further
guidance.

 

[Scott R Marshall]

While I'll continue to turn down these orders, there's just something wrong when the laws in place only penalize the honest fellas. Disreputable unregistered AMC hires oblivious and/or unscrupulous appraiser to do their work as they can't get the honest appraiser to bite. So the honest appraiser loses potential work for no other reason then they've been told to enforce the law which the state can't or won't do. I guess if the state finds out there may be some consequences but I'm not holding my breath that this will ever happen

 

[Bob Ipock]

Scott,

My message has not changed since 1989.

In 1989 states were told to establish appraisal boards and commissions to license, certify and regulate appraisers involved with FRTs.

Since 1989 state appraisal boards and commissions have been 100% responsible for regulation of appraisers and for the ENFORCEMENT of the regulations and the DISCIPLINARY actions needed to keep the ship on track.


Now, tell me who is responsible for any and all issues regarding real estate appraisers? Were not these boards and commissions in place to keep state and federal elected officials and agencies informed of PROBLEMS and what needed to be done?

I know who is responsible allowing the appraisal profession to be destroyed.....and it has nothing to do with any AMC.

 

[Riick]

I've been upset that my State has no AMC registration law.

Now I'm reminded
that yet another law
and more regulations
mean exactly NOTHING
when there is
NO WAY
TO ENFORCE
THE damm LAW !
m2: . m2: . m2:

Oh, wait, I can go to the IVPI (Invisible Valuation Protection Institute) and they will take care of everything

 

[Bob Ipock]

What is it you want enforced?