(KCPW News) Utah legislators are cracking down on appraisal management companies in an effort to help the housing market. The Utah House of Representatives passed a bill yesterday that would create a Real Estate Appraiser Licensing and Certification Board. Bill Sponsor Michael Morley said some appraisers are not disclosing the market value of a home, but what the lender or mortgage broker wants the home to be valued at.
"This would simply place a new industry that has a great deal of power over the values that are being placed on real estate under the same requirements that mortgage brokers, and lending institutions, and appraisers are already subject to," Morley said.
Morley said appraisal management companies often hire inexperienced appraisers who are susceptible to influence from lenders or mortgage brokers. And Representative Jack Draxler said regulating appraisers is important to the integrity of the housing industry.
"If we want the integrity of the process to go forward, if we want to prevent mortgage fraud, appraisal management companies should come under the same set of standards as the rest of the people operating in this very, very critical industry," Draxler said.
The bill passed with only one vote against it, and will now be sent to the Senate.