Full Text of HB5880 99th General Assembly
HB5880 99TH GENERAL ASSEMBLY
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
Introduced , by Rep. Robert Rita
SYNOPSIS AS INTRODUCED:
Amends the Appraisal Management Company Registration Act. Provides
that no appraisal management company may require an appraiser to pay the
national registry fee required by the Appraisal Subcommittee of the Federal
Financial Institutions Examination Council for a person who is (i) on the
appraisal panel of the appraisal management company and (ii) certified as
an appraiser in this State.
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Appraisal Management Company Registration
Act is amended by changing Section 165 as follows:
(225 ILCS 459/165)
(a) No person or entity acting in the capacity of an
appraisal management company shall improperly influence or
attempt to improperly influence the development, reporting,
result, or review of any appraisal by engaging, without
limitation, in any of the following:
(1) Withholding or threatening to withhold timely
payment for a completed appraisal, except where addressed
in a mutually agreed upon contract.
(2) Withholding or threatening to withhold, either
expressed or by implication, future business from, or
demoting, or terminating, or threatening to demote or
terminate an Illinois licensed or certified appraiser.
(3) Expressly or impliedly promising future business,
promotions, or increased compensation for an independent
(4) Conditioning an assignment for an appraisal
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service or the payment of an appraisal fee or salary or
bonus on the opinion, conclusion, or valuation to be
reached in an appraisal report.
(5) Requesting that an appraiser provide an estimated,
predetermined, or desired valuation in an appraisal report
or provide estimated values or sales at any time prior to
the appraiser's completion of an appraisal report.
(6) Allowing or directing the removal of an appraiser
from an appraisal panel without prior written notice to the
(7) Requiring an appraiser to sign a non-compete clause
when not an employee of the entity.
(8) Requiring an appraiser to sign any sort of
indemnification agreement that would require the appraiser
to defend and hold harmless the appraisal management
company or any of its agents, employees, or independent
contractors for any liability, damage, losses, or claims
arising out of the services performed by the appraisal
management company or its agents, employees, or
independent contractors and not the services performed by
(9) Prohibiting or attempting to prohibit the
appraiser from including or referencing the appraisal fee,
the appraisal management company name or identity, or the
client's or lender's name or identity within the body of
the appraisal report.
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(10) Require an appraiser to collect a fee from the
borrower or occupant of the property to be appraised.
(11) Knowingly withholding any end-user client
guidelines, policies, requirements, standards, assignment
conditions, and special instructions from an appraiser
prior to the acceptance of an appraisal assignment.
(b) A person or entity may not structure an appraisal
assignment or a contract with an independent appraiser for the
purpose of evading the provisions of this Act.
(c) No registrant or other person or entity may alter,
modify, or otherwise change a completed appraisal report
submitted by an independent appraiser, including without
limitation, by doing either of the following:
(1) permanently or temporarily removing the
appraiser's signature or seal; or
(2) adding information to, or removing information
from, the appraisal report with an intent to change the
value conclusion or the condition of the property.
(d) No appraisal management company may require an
appraiser to provide it with the appraiser's digital signature
or seal. However, nothing in this Act shall be deemed to
prohibit an appraiser from voluntarily providing his or her
digital signature or seal to another person on an
assignment-by-assignment basis, in accordance with USPAP.
(e) Nothing in this Act shall prohibit an appraisal
management company from requesting that an appraiser:
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(1) consider additional appropriate property
information, including the consideration of additional
comparable properties to make or support an appraisal;
(2) provide further detail, substantiation, or
explanation for the appraiser's value conclusion; or
(3) correct factual errors in the appraisal report.
(f) No appraisal management company may require an
appraiser to pay the national registry fee required by the
Appraisal Subcommittee of the Federal Financial Institutions
Examination Council for a person who is (i) on the appraisal
panel of the appraisal management company and (ii) certified as
an appraiser in this State.
(Source: P.A. 97-602, eff. 8-26-11.)