STATEHOUSE (Jan. 31, 2018) — The House of Representatives today voted in support of a bill co-authored by State Rep. Doug Miller (R-Elkhart) that would better ensure the appraisal process for real estate transactions is fair, affordable and timely.
Miller said the bill would require an appraisal management company to provide a real estate appraiser with a contract before evaluations are conducted. The contract must include details about the work involved, the date when the appraisal must be completed, and the terms and conditions for the payment of the real estate appraiser.
“Housing is one of the economic drivers in the state,” Miller said. “I spoke with an appraisal group over the summer about this legislation, and they support this proposal. This bill would quantify the practices and understandings for both the appraisal management company and the appraiser on timeframes and expectations for completion.”
Miller said when buying a home using a mortgage, refinancing existing mortgages, or selling property to anyone other than an all-cash buyer, the appraisal is a key component of the transaction. Appraisers determine a home’s value and help unbiasedly determine whether a property’s contract price is appropriate. Appraisal Management Companies do not perform appraisals, but instead work with lenders and appraisers to facilitate the ordering, tracking, quality control and delivery of appraisal reports.
Miller said some consumers are paying excess appraisal charges despite appraisers charging relatively low fees. Appraisal management companies under contract by lenders sometimes add surcharges passed along to consumers.
“A contract would prevent consumers from paying high fees that go directly into a third party’s pocket,” Miller said.
Appraisal companies would also be required to maintain a record of each service request for an appraisal they receive and to keep these records for a minimum of six years after the service request is made.
House Bill 1277 can now be considered by the Senate for consideration. For more information, visit iga.in.gov.
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State Rep. Doug Miller (R-Elkhart) represents House District 48, which includes portions of Elkhart County.
A high-resolution photo of Miller can be downloaded by clicking here.
