IL HB5868

Amends the Real Estate Appraiser Licensing Act of 2002 to define and regulate "appraisal companies" that broker appraisal services between clients and independent appraisers, requiring them to obtain licenses from the Department of Financial and Professional Regulation.

Establishes licensing requirements for appraisal companies with a fee not to exceed $50, and permits out-of-state appraisal companies to operate in Illinois without maintaining a physical office if they meet specific conditions including maintaining an office in their home state and appointing the Secretary as their agent.

Prohibits appraisal companies and their employees from influencing appraiser independence through coercion, extortion, bribery, compensation schemes, turnaround time penalties, non-compete clauses, or other specific listed practices that compromise appraisal integrity.

Prohibits licensed appraisers from altering completed appraisal reports submitted by independent appraisers, including removing signatures, modifying value conclusions, conditioning payments on desired valuations, or removing appraisers from panels without written notice.

Increases the Real Estate Appraisal Administration and Disciplinary Board from 10 to 11 members and adds a representative from appraisal management companies with at least 10 licensed appraisers to the board composition.