Arnold Schwarzenegger passed SB237, which tightens the Housing Value Code of Conduct. While it certainly doesn’t take care of the many issues that have resulted from these guidelines, it does take a step in the right direction.
Appraisal management companies, starting January 1st, will be required to ensure their appraisers have all licenses and certificates required by the state Office of Real Estate Appraisers as well as review their work to be certain that it is performed in accordance with the Uniform Standards of Professional Appraisal Practice.
Managers, officers and directors of appraisal management companies will join appraisers (who already have this requirement) who will have to be fingerprinted and pass criminal background checks. They also cannot have had their licenses or certificates revoked in any state.
The act of withholding or threatening to withhold timely payments, threatening to withhold future assignments for independent contractors or removing appraisers from the approved panel of appraisers would be prohibited.
It is a sad commentary on the effectiveness of HVCC when such ethical standards have to be mandated by law in order to clean up the mess these guidelines have created.
October 15, 2009
Uncategorized