Date: 02/21/2012
Final
BILL SUMMARY for HB12-1110
HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT
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04:12 PM -- House Bill 12-1110
Representative A. Williams, prime sponsor, presented House Bill 12-1110. She asked that the bill be laid over. The bill redefines the legal meaning of appraisal management companies (AMC) and establishes a licensure program for AMCs in the Division of Real Estate (division) in the Department of Regulatory Agencies (DORA). An AMC license may be given to an individual or any third party entity that, in connection with an appraisal for a mortgage transaction, oversees a network or panel of certified appraisers. The composition of the Board of Real Estate Appraisers (board) is modified to include a representative of an AMC. To receive a license, AMCs must:
- follow application procedures established by the board and pay a fee;
- designate a controlling appraiser to be responsible for the licensed activities of the entity;
- maintain errors and omissions insurance;
- post a surety bond in the amount of $25,000 with the board; and
- submit to a fingerprint-based criminal history check for the controlling appraiser and each principal owner of the entity.
The board may deny a license application based on the outcome of the background check, or based on past disciplinary actions against a controlling appraiser or principal owners. The bill details prohibited acts for licensees and gives the division the authority to investigate and take disciplinary actions, including imposing fines up to $2,500 per offense. The bill establishes misdemeanor penalties for both persons and entities that operate without a valid license.
The bill also requires that applicants for a real estate appraiser license, registration, or certification submit to a fingerprint-based criminal history background check and pay the fee. The board may deny the authority to practice based on the outcome of the background check.
04:23 PM -- Jayne Bail, representing the Colorado Association of Mortgage Professionals, testified in support of the bill and distributed a handout on the bill (Attachment P).
The bill was laid over until February 23.