A bill requiring AMC’s to be registered with and regulated by the state of New Mexico was signed into law by Governor Bill Richardson on March 1.  The bill not only requires AMC’s to be registered with the state, but also requires that internal appraisal review staff meet significant competency thresholds and requires AMC’s to only hire licensed or certified appraisers.  In addition, the bill prohibits AMC’s from requiring appraisers to indemnify them from potential liability, and also requires that the appraisal fee be disclosed separately from AMC fees.

The bill originally included language that would require appraisers be paid a “customary and reasonable” fee for their services, but this provision was removed from the bill after AMC and bank representatives protested its inclusion.  The bill does require AMC’s pay appraisers no later than sixty days after the completed appraisal is transmitted to the AMC.  The bill also requires AMC’s to post a surety bond as part of its registration requirements.

The final version of the bill is not yet available, but will be posted to ASA’s website shortly.