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WV Legislature to consider licensing appraisers

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CHARLESTON (AP) — The West Virginia Legislature will consider a bill requiring appraisal management companies to register with a state board.

The companies are meant to serve as a buffer between banks and appraisers. A legislative legal counsel says when mortgage lending banks deal directly with appraisers, there's an incentive for appraisers to over-value properties so that banks can issue larger mortgages.

The 2012 federal Dodd-Frank financial reform law requires regulation of appraisal management companies.

The proposed bill would require appraisal management companies to be independent, to meet minimum standards and to post a bond with that would reimburse potential consumer complaints. Ownership and management would have to submit to criminal background checks.

A rough draft of the bill was presented to legislators during interim sessions on Tuesday.

 

Copyright 2013 The Associated Press