The Amendments to the Ms AMC Registration Act are now law.  You can read all about it in the MSCAPP Forums. 

Both the BPO Bill and the AMC Bill are now Law.  MSCAPP members received copies of the bills as passed last week, a summation of the efforts on the amendments by MSCAPP Legislative Chairman Bill Williams and a synopsis of the BPO bill.  Untold hours were spent on these two bills by the MSCAPP Legislative Committee, the Appraisal Institute and the MSCAPP lobbyists.  Bill Williams sums the process up this way, "Politics is always a tug of war with all interested parties trying to craft legislation in their favor.  That is the nature of the game, as we all know. I am exceedingly glad the appraisal industry got a “seat at the table” in this process and was able to be highly influential, in changing what would have been totally awful legislation for the appraisal industry and the general public into more or less acceptable legislation.  The appraisal industry clearly would have liked to have both bills contain even stronger language than they do.  But the fact that they contain anything at all favorable to the appraiser’s point of view is a tribute to the hard work put in by all the appraisal industry participants."   MAB and MREC will begin the process of writing Rules and Regulations administering these two bills in April.  They will be taking comments regarding both bills so Appraisers are encouraged to stay alert the next two months on this process and send comments on these two bills when requested.   For a copy of the BPO bill in its final form, click here.  For a copy of the AMC bill, click here.

Adopted by the Membership

December 6, 2011

MSCAPP

Governmental Affairs Policy Statements

And

2012 Action Plan:

Policy Statements:

1. In an effort to serve the needs of the appraiser community in Mississippi, MSCAPP shall engage in a variety of activities as from time to time its Board of Directors deems appropriate to advance those appraiser interests of merit, both at the local, state, or federal level. The primary committee responsible for coordination of these efforts is the Governmental Affairs Committee.

1. MSCAPP supports the current statutory principle that, as a special fund state agency, the MREC and its two subsidiary boards, the MAB and the MHIB, should be fully supported by license and registration fees paid on an equitable “fair share” basis by all parties, including appraisers, AMC’s, BPO companies, brokers, agents, or home inspectors, or any other regulated group, coming under the domain of the agency’s regulatory authority and not by taxation of the general public.

1. MSCAPP supports efficiency and economy in government at all levels, full public disclosure of agency financial and business conduct, and accountability to the appraisal community and the general public for wise expenditure of public funds.

1. MSCAPP supports the principle that the appraisal industry is able to self regulate in a responsible manner consistent with the need to protect the public interest. MSCAPP believes the appraisal community deserves and must have meaningful, effective, and responsive representation at the governmental regulatory level via appraiser members holding a majority on the directing body of any agency regulating appraisers or appraisal services.   MSCAPP believes that regulatory agency staff must also possess sufficient appraisal experience and qualifications for the positions they hold and, to the extent possible, be free from conflicts of interest.

1. MSCAPP believes appraisers serve an important function in society and their role deserves to be protected by the regulatory agencies from detrimental and self serving practices within the market place which may undermine the long term stability of the appraisal profession.

Accordingly, consistent with the above policy statements, MSCAPP will strive to implement the following Action Plan for 2012.

2012 Action Plan:

1. MSCAPP shall monitor meetings and activities of the MAB primarily, and other boards or commissions secondarily, to remain aware of actions and issues arising which may impact the appraisal community. MSCAPP may offer input to these agencies, when appropriate, regarding appraisal industry concerns. MSCAPP may also communicate information to its membership periodically regarding the actions of these agencies.

1. To foster achievement of its legislative and other goals, MSCAPP may engage a lobbyist or undertake other activities, such as operate a political action fund, designed to enhance the achievement of its objectives.

1. MSCAPP may support or take other appropriate actions related to nominees or candidates for MAB and other agency board member or agency staff positions which may from time to time arise which it deems are beneficial to the interests of the appraisal community.

1. MSCAPP will support corrective amendments to the not yet implemented AMC bill which will:

1. Correct typo errors in the original bill to provide for a one (1) year AMC registration period instead of a two year period.
2. Raise the AMC registration fee to at least $2,500 per year or an amount commensurate with the anticipated costs of administration and consistent with registration fees at the national level in other states.
3. Stipulate the increased AMC registration fees are to be effective immediately upon passage.
4. Defer registration of any AMC until the new fees are effective.
5. Require a surety bond to insure payment of appraisal fees to appraisers.

1. MSCAPP will support an amendment to the current appraisal license fee statue which:
   1. Raises the statutory cap up to $425 but allows the MAB to determine any proposed license fee increase as needed but with a 30 day public notice and comment period required.
   2. Stipulates any fee increase proposed for any form of licensure or registration fee must be justified in writing with adequate supporting financial data, projections, and proposed budget revenues and expenditures also stated for the applicable time period for which the fee increase is proposed.
   3. Allows for the evaluation of the amount of revenue raised by AMC registration during one full calendar year, which is currently unknown, PRIOR TO any action being taken to raise appraiser license fees. Thus, implementation of any new appraiser license fee increase would not become effective any sooner than for the FY 2014 fiscal year.

1. MSCAPP will support amendment of the current contractor lien statue which:
   1. Allows for liens to be placed against real property for real estate commissions, if appraisal fees are also included.

1. MSCAPP will initiate study of possible amendment to the BPO bill to require registration and regulation of all BPO companies doing business in the State of Mississippi.

The following is an excerpt regarding the Interim Final Rule of TIL, Reg Z

(f) Customary and reasonable compensation —

(1) Requirement to provide customary and reasonable
compensation to fee appraisers. In any covered transaction, the creditor and its agents shall
compensate a fee appraiser for performing appraisal services at a rate that is customary and reasonable
for comparable appraisal services performed in the geographic market of the property being appraised.
For purposes of paragraph (f) of this section, “agents” of the creditor do not include any fee appraiser as
defined in paragraph (f)(4)(i) of this section.

 
(2)  Presumption of compliance. A creditor and its agents shall be presumed to comply with paragraph (f)
(1) if—
(i) The creditor or its agents compensate the fee appraiser in an amount that is reasonably related to
recent rates paid for comparable appraisal services performed in the geographic market of the property
being appraised. In determining this amount, a creditor or its agents shall review the factors below and
make any adjustments to recent rates paid in the relevant geographic market necessary to ensure that
the amount of compensation is reasonable:
(A) The type of property,
(B) The scope of work,
(C) The time in which the appraisal services are required to be performed,
(D) Fee appraiser qualifications,
(E) Fee appraiser experience and professional record, and
(F) Fee appraiser work quality; and

 
(ii) The creditor and its agents do not engage in any anticompetitive acts in violation of state or federal
law that affect the compensation paid to fee appraisers, including

(A) Entering into any contracts or engaging in any conspiracies to restrain trade through methods such
as price fixing or market allocation, as prohibited under section 1 of the Sherman Antitrust Act, 15 U.S.C.
1, or any other relevant antitrust laws; or
(B) Engaging in any acts of monopolization such as restricting any person from entering the relevant
geographic market or causing any person to leave the relevant geographic market, as prohibited under
section 2 of the Sherman Antitrust Act, 15 U.S.C. 2, or any other relevant antitrust laws.

 
(3) Alternative presumption of compliance. A creditor and its agents shall be presumed to comply with
paragraph (f)(1) if the creditor or its agents determine the amount of compensation paid to the fee
appraiser by relying on information about rates that:

(i) Is based on objective third-party information, including fee schedules, studies, and surveys prepared
by independent third parties such as government agencies, academic institutions, and private research
firms;
(ii) Is based on recent rates paid to a representative sample of providers of appraisal services in the
geographic market of the property being appraised or the fee schedules of those providers; and
(iii) In the case of information based on fee schedules, studies, and surveys, such fee schedules,
studies, or surveys, or the information derived therefrom, excludes compensation paid to fee appraisers
for appraisals ordered by appraisal management companies, as defined in paragraph (f)(4)(iii) of this
section.

 
(4) Definitions. For purposes of this paragraph (f), the following definitions apply:
(i) Fee appraiser. The term “fee appraiser” means—
(A) A natural person who is a state-licensed or state-certified appraiser and receives a fee for performing
an appraisal, but who is not an employee of the person engaging the appraiser; or
(B) An organization that, in the ordinary course of business, employs state-licensed or state-certified
appraisers to perform appraisals, receives a fee for performing appraisals, and is not subject to the
requirements of section 1124 of the Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3331 et seq. ).
(ii) Appraisal services. The term “appraisal services” means the services required to perform an
appraisal, including defining the scope of work, inspecting the property, reviewing necessary and
appropriate public and private data sources (for example, multiple listing services, tax assessment
records and public land records), developing and rendering an opinion of value, and preparing and 
submitting the appraisal report.