HB 1389 Summary

• Creates chapter 43-23.5 of the North Dakota Century Code to regulate appraisal management companies, requiring registration with the state Real Estate Appraiser Qualifications and Ethics Board.

• Defines appraisal management companies as external third parties overseeing networks of more than 15 certified or licensed appraisers in-state or 25+ nationally that manage appraiser panels for mortgage loan valuations.

• Requires applicants, owners with greater than 10% ownership, and controlling persons to submit to statewide and nationwide criminal history background checks, with applicants bearing all costs.

• Prohibits conduct that improperly influences appraisals, including withholding payment, conditioning fees on desired valuations, altering reports without appraiser consent, and requiring indemnification agreements that protect the company from liability.

• Makes it a Class A misdemeanor to perform appraisal management services without registration; registrations expire annually on September 30th and may require surety bonds up to $25,000.