Full Text of HB5880 99th General Assembly
HB5880ham001 99TH GENERAL ASSEMBLY | Rep. Robert Rita Filed: 3/28/2016
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| 1 | | AMENDMENT TO HOUSE BILL 5880
| 2 | | AMENDMENT NO. ______. Amend House Bill 5880 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Appraisal Management Company Registration | 5 | | Act is amended by changing Section 165 as follows: | 6 | | (225 ILCS 459/165)
| 7 | | Sec. 165. Prohibited activities. | 8 | | (a) No person or entity acting in the capacity of an | 9 | | appraisal management company shall improperly influence or | 10 | | attempt to improperly influence the development, reporting, | 11 | | result, or review of any appraisal by engaging, without | 12 | | limitation, in any of the following: | 13 | | (1) Withholding or threatening to withhold timely | 14 | | payment for a completed appraisal, except where addressed | 15 | | in a mutually agreed upon contract. | 16 | | (2) Withholding or threatening to withhold, either |
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| 1 | | expressed or by implication, future business from, or | 2 | | demoting, or terminating, or threatening to demote or | 3 | | terminate an Illinois licensed or certified appraiser. | 4 | | (3) Expressly or impliedly promising future business, | 5 | | promotions, or increased compensation for an independent | 6 | | appraiser. | 7 | | (4) Conditioning an assignment for an appraisal | 8 | | service or the payment of an appraisal fee or salary or | 9 | | bonus on the opinion, conclusion, or valuation to be | 10 | | reached in an appraisal report. | 11 | | (5) Requesting that an appraiser provide an estimated, | 12 | | predetermined, or desired valuation in an appraisal report | 13 | | or provide estimated values or sales at any time prior to | 14 | | the appraiser's completion of an appraisal report. | 15 | | (6) Allowing or directing the removal of an appraiser | 16 | | from an appraisal panel without prior written notice to the | 17 | | appraiser. | 18 | | (7) Requiring an appraiser to sign a non-compete clause | 19 | | when not an employee of the entity. | 20 | | (8) Requiring an appraiser to sign any sort of | 21 | | indemnification agreement that would require the appraiser | 22 | | to defend and hold harmless the appraisal management | 23 | | company or any of its agents, employees, or independent | 24 | | contractors for any liability, damage, losses, or claims | 25 | | arising out of the services performed by the appraisal | 26 | | management company or its agents, employees, or |
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| 1 | | independent contractors and not the services performed by | 2 | | the appraiser. | 3 | | (9) Prohibiting or attempting to prohibit the | 4 | | appraiser from including or referencing the appraisal fee, | 5 | | the appraisal management company name or identity, or the | 6 | | client's or lender's name or identity within the body of | 7 | | the appraisal report. | 8 | | (10) Require an appraiser to collect a fee from the | 9 | | borrower or occupant of the property to be appraised. | 10 | | (11) Knowingly withholding any end-user client | 11 | | guidelines, policies, requirements, standards, assignment | 12 | | conditions, and special instructions from an appraiser | 13 | | prior to the acceptance of an appraisal assignment.
| 14 | | (b) A person or entity may not structure an appraisal | 15 | | assignment or a contract with an independent appraiser for the | 16 | | purpose of evading the provisions of this Act.
| 17 | | (c) No registrant or other person or entity may alter, | 18 | | modify, or otherwise change a completed appraisal report | 19 | | submitted by an independent appraiser, including without | 20 | | limitation, by doing either of the following:
| 21 | | (1) permanently or temporarily removing the | 22 | | appraiser's signature or seal; or | 23 | | (2) adding information to, or removing information | 24 | | from, the appraisal report with an intent to change the | 25 | | value conclusion or the condition of the property.
| 26 | | (d) No appraisal management company may require an |
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| 1 | | appraiser to provide it with the appraiser's digital signature | 2 | | or seal. However, nothing in this Act shall be deemed to | 3 | | prohibit an appraiser from voluntarily providing his or her | 4 | | digital signature or seal to another person on an | 5 | | assignment-by-assignment basis, in accordance with USPAP. | 6 | | (e) Nothing in this Act shall prohibit an appraisal | 7 | | management company from requesting that an appraiser:
| 8 | | (1) consider additional appropriate property | 9 | | information, including the consideration of additional | 10 | | comparable properties to make or support an appraisal; | 11 | | (2) provide further detail, substantiation, or | 12 | | explanation for the appraiser's value conclusion; or | 13 | | (3) correct factual errors in the appraisal report.
| 14 | | (f) An appraisal management company shall not: | 15 | | (1) require an appraiser to pay the appraisal | 16 | | management company national registry fee assessed by the | 17 | | Appraisal Subcommittee of the Federal Financial | 18 | | Institutions Examination Council pursuant to 12 U.S.C. | 19 | | 3338 for a person that is certified as an appraiser in this | 20 | | State and is on the appraiser panel of the appraisal | 21 | | management company; | 22 | | (2) require an appraiser to pay any fee directly or | 23 | | indirectly to an appraisal management company or to | 24 | | reimburse an appraisal management company for any costs, | 25 | | fees, or other expenses incurred solely by the appraisal | 26 | | management company as a prerequisite to an appraiser being |
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| 1 | | added to an appraiser panel or as a prerequisite to an | 2 | | appraiser receiving an order for an appraisal from an | 3 | | appraisal management company; or | 4 | | (3) deduct any amount from the reasonable and customary | 5 | | fee paid to an appraiser for any costs, fees, or other | 6 | | expenses incurred solely by the appraisal management | 7 | | company. | 8 | | (Source: P.A. 97-602, eff. 8-26-11.)".
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