Kentucky Passes Legislation Helping Appraisers Harmed by AMCs
On March 21, Kentucky Governor Steve Beshear signed into law House Bill 120, which created a new appraisal management company recovery fund to replace its current surety bond requirement.
The Kentucky Real Estate Appraisers Board will establish procedures for making claims against the fund and will administer the funds in order to provide restitution to licensed or certified real property appraisers who have suffered pecuniary harm by an AMC. Appraisers will be able to seek reimbursement for “reasonable and appropriate court costs.”
The legislation also extends the Kentucky AMC registration requirements to “portals” that “fulfill requests for appraisal management services on behalf of clients, whether directly or through the use of software products or online.”
The recovery fund is supported by an annual surcharge of up to $800 on each AMC registered in the state. The fund has a cap of $300,000, at which point the surcharge will be suspended until the fund needs to once again be replenished.
View details of the bill below.
~ Source Appraisal Institute (AI)