HB50 Summary

• Establishes a registration program for appraisal management companies (AMCs) in Hawaii administered by the Department of Commerce and Consumer Affairs to comply with federal Dodd-Frank Wall Street Reform and Consumer Protection Act requirements.

• Requires AMCs to register with the state, maintain appraiser panels, verify appraiser licenses, pay appraisers within 45 days, and comply with Uniform Standards of Professional Appraisal Practice and federal appraisal independence requirements.

• Prohibits AMCs from engaging in practices that compromise appraiser independence, including withholding payment, threatening to exclude appraisers, conditioning fees on valuations, or altering appraisal reports without appraiser consent.

• Establishes director authority to deny, suspend, or revoke AMC registrations for violations, impose penalties up to $5,000 per violation, and requires AMCs to post a $25,000 surety bond and pay registration fees ($60 application, $4,200 biennial, $500 compliance fund, plus $300 special assessment).

• Takes effect January 1, 2018, with an appropriation of $140,000 from the Compliance Resolution Fund for fiscal year 2017-2018; program subject to repeal on June 30, 2023.