Raised Bill No. 228 - Appraisal Reform Summary

• Requires real estate appraisers to be licensed under chapter 400g before charging fees for appraisals in Connecticut, effective October 1, 2010.

• Prohibits appraisers from sharing fees with anyone other than another licensed real estate appraiser, preventing fee-splitting with unlicensed parties.

• Mandates appraisers include an invoice in appraisal reports showing actual fees charged and provide a copy to loan applicants or property owners.

• Requires financial institutions to provide mortgage loan applicants with appraisal invoices within ten days of receipt and make full appraisal reports available at no cost within 90 days of application decision or withdrawal.

• Updates loan policies for Connecticut banks and credit unions to incorporate new appraiser licensing and fee transparency requirements for safe and sound lending practices.