HB490 Summary

• Renames the Alabama Real Estate Appraisers Act to the Alabama Real Estate Appraisers and Appraisal Management Company Registration and Regulation Act and establishes regulatory authority over appraisal management companies.

• Requires appraisal management companies to register with the State of Alabama Real Estate Appraisers Board and prohibits unlicensed operation; applicants must submit detailed information, post a $20,000 surety bond, and satisfy good moral character and financial soundness requirements.

• Mandates appraisal management companies maintain quality control systems, verify appraiser licenses, conduct annual audits, and retain service records for five years; companies must pay appraisers within 45 days of receiving completed work.

• Prohibits coercion, bribery, fee manipulation, and other practices that influence appraiser independence; establishes due process protections for appraiser removal and board enforcement actions with penalties up to $25,000.

• Becomes effective on the first day of the third month following passage and approval.