20, the Louisiana state legislature approved a set of appraisal management company rules that provide strong provisions regarding the payment of reasonable and customary fees that were put forth by the state's appraiser board.
The state's new rules allow AMCs to use "objective third-party information such as government agency fee schedules, academic studies and independent private sector surveys" as evidence for what constitutes reasonable and customary fees.
The Louisiana Real Estate Appraisal Board became the first state appraiser board to have authority to make its own administrative determinations as to whether or not an AMC has paid an appraiser a reasonable and customary fee.
The petition outlines areas where AGA feels the IFR has not properly followed the Dodd-Frank legislative mandate related to the establishment of reasonable and customary fees.
PHOTO CAPTION: The American Guild of Appraisers/OPEIU Guild 44 meets with Senator Ben Cardin to discuss reconsideration of elements of Dodd-Frank legislation related to establishment of reasonable and customary fees.
Though it may not be stated within the policy form, some carriers will allow the insured to appoint an attorney of choice, provided the attorney has expertise in the field and charges reasonable and customary fees
A key component of the legislation is a requirement that appraisers be paid Reasonable and Customary fees for their work.
Earlier this year, however, the Federal Reserve Board adopted implementing rules that have been interpreted by the banking industry and AMC's as permitting paying appraisers a fraction of Reasonable and Customary fees.
From a legal standpoint, it's quite clear that Congress intended that appraisers be paid Reasonable and Customary fees and that most appraisal management companies are simply violating the law," said Matt Schneider with Garvey Schubert Barer, the law firm retained to represent the AGA.