HF3122 Summary

• Creates the Minnesota Appraisal Management Company Licensing and Regulation Act (Chapter 82C), requiring appraisal management companies to obtain licenses from the commissioner of commerce with a $5,000 initial application fee and $2,500 renewal fee every 12 months.

• Establishes licensing requirements including owner vetting for good moral character, background investigations, designated controlling persons, and compliance certifications regarding appraiser licensing, USPAP standards, and quality control systems.

• Prohibits appraisal management companies from influencing appraisals through coercion, withholding payments, conditioning assignments on valuation outcomes, or requesting predetermined values; requires removal of appraisers only with written notice and documented evidence of violations.

• Amends the Real Estate Appraiser Advisory Board to nine members (reduced from 15) with specified composition: three consumers, one from financial lending industry, three to six licensed appraisers, and at least one member certified to teach USPAP; establishes meeting and quorum procedures.

• Appropriates $223,000 in fiscal year 2011 with base appropriations of $119,000 (FY 2012) and $123,000 (FY 2013) to the commissioner of commerce for program implementation.