H 716 - Regulation of Appraisal Management Companies

• Requires real estate appraisal management companies to register with the North Carolina Appraisal Board beginning January 1, 2010, with an initial fee of $5,000 and annual renewal fee of $2,500.

• Mandates that each registered company designate a certified general real estate appraiser as managing principal responsible for ensuring compliance with the regulation.

• Prohibits appraisal management companies and their employees from influencing appraisers through coercion, compensation, withholding payment, threatening removal from networks, or providing predetermined valuations.

• Requires appraisers be paid within 30 days of transmitting appraisals, directly from lenders rather than from the management company, without fee splits.

• Grants the Appraisal Board authority to deny, suspend, or revoke registrations and impose civil penalties up to $10,000 for violations, and up to $25,000 for continued violations after Board orders.