Illinois General Assembly - Full Text of HB5880
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Full Text of HB5880  99th General Assembly


Rep. Robert Rita

Filed: 3/28/2016





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2    AMENDMENT NO. ______. Amend House Bill 5880 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Appraisal Management Company Registration
5Act 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
9appraisal management company shall improperly influence or
10attempt to improperly influence the development, reporting,
11result, or review of any appraisal by engaging, without
12limitation, 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
15assignment or a contract with an independent appraiser for the
16purpose of evading the provisions of this Act.
17    (c) No registrant or other person or entity may alter,
18modify, or otherwise change a completed appraisal report
19submitted by an independent appraiser, including without
20limitation, 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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1appraiser to provide it with the appraiser's digital signature
2or seal. However, nothing in this Act shall be deemed to
3prohibit an appraiser from voluntarily providing his or her
4digital signature or seal to another person on an
5assignment-by-assignment basis, in accordance with USPAP.
6    (e) Nothing in this Act shall prohibit an appraisal
7management 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.)".