Massachusetts House Bill H4133

Massachusetts 2023-2024 Regular Session

• Introduced: 10/18/23
• Refer: 10/18/23

Caption

Making corrective changes to Chapter 112 of the General Laws

Impact

The bill's amendments to the existing laws are expected to tighten the licensing criteria for appraisal companies, promoting better governance in the appraisal sector. By requiring individuals who own a significant share of appraisal management companies to undergo criminal history background checks, the bill seeks to enhance standards of good moral character for entities operating within the industry. This change aims to bolster consumer protection by ensuring only qualified candidates can manage appraisal companies, thus potentially reducing fraudulent practices.

Summary

House Bill 4133 seeks to implement corrective changes to Chapter 112 of the General Laws in Massachusetts, specifically focusing on the licensing process for small appraisal companies. The bill aims to align state law with federal regulations by ensuring the definitions and framework for appraisal management are consistent with the Federal Appraisal Subcommittee guidelines. Notably, the legislation introduces and clarifies terms related to financial institutions and appraisal management, thereby improving clarity around legal responsibilities for licensed appraisers and related entities.

Contention

While the intent of HB 4133 is to streamline and enhance the appraisal licensing process, some stakeholders may view it as an overregulation that could burden smaller appraisal companies with additional compliance measures. As the bill strengthens the requirements around ownership disclosures and character assessments, there might be concerns raised about its impact on the competitiveness of smaller firms. Additionally, the legislation's requirement to remit fees to the Federal Appraisal Subcommittee could create financial strains, especially for newly established businesses operating on tight budgets.