We Value Bloomington-Normal

Illinois and North Carolina have become the latest states to enact new appraiser independence laws when Govs. Pat Quinn, D-Ill., and Bev Perdue, D-N.C., signed legislation into law last week. Forty-two states now have some form of appraiser independence law on their books.

The language of each of the new laws is somewhat different, but each of them generally prohibits mortgage brokers and lenders from improperly influencing the development, reporting, result or review of a real estate appraisal sought in connection with a mortgage loan.

These new appraiser independence laws were enacted as part of much broader legislation regarding the licensing of mortgage loan originators that is required under existing federal law – the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

As of today, 46 states have enacted legislation to comply with the federal SAFE Act. Of these states, 32 have included new appraiser independence provisions, bringing the total number of states with appraiser independence provisions to 42. (Some states had existing appraiser independence laws prior to the SAFE Act.)

To view a copy of the new Illinois law, visit www.ilga.gov/legislation/BillStatus.asp?DocNum=4011&GAID=10&DocTypeID=HB&LegId=46849&SessionID=76&GA=96 .