Bill
HB 1080
ND regulates large appraisal management companies that oversee 15+ in-state or 25+ national appraisers, outlining approved services and exemptions.
Status & Sponsorship
- Introduced by the Industry, Business and Labor Committee at the request of the North Dakota Real Estate Appraiser Qualifications and Ethics Board.
- Bill amends and reenacts sections 43‑23.5‑01, 43‑23.5‑07, 43‑23.5‑08, 43‑23.5‑15 and subsection 6 of 43‑23.5‑21 of the North Dakota Century Code.
- Committee report was issued (favorable) and forwarded to calendars (committee action documented May 2025).
Purpose and intent
- Update and clarify the statutory framework for regulating appraisal management companies (AMCs) in North Dakota.
- Provide precise definitions of AMCs, the services they perform, and the parties subject to regulation; and to enumerate specific statutory exemptions.
Key provisions and changes
- Revised definitions (43‑23.5‑01)
- “Appraisal management company” is defined to mean an external third party that oversees a network or panel of more than 15 certified/licensed appraisers in North Dakota or 25 or more nationally in a given year, when authorized by a creditor or secondary-market principal in connection with consumer mortgage transactions on a consumer’s principal dwelling.
- “Appraisal management services” is explicitly defined and enumerated (examples include administering appraiser panels; recruiting/qualifying appraisers; contracting with appraisers; receiving and delivering appraisal orders; managing appraisal workflows; tracking orders; conducting appraisal reviews/quality control; and providing completed appraisals to clients).
- “Appraisal review” is defined as forming and communicating an opinion about the quality of another appraiser’s work (and expressly excludes purely grammatical/typographical checks or non‑opinion completeness checks).
- “Appraiser panel” and “controlling person” (e.g., >10% owners, officers, or individuals with contracting/management authority) are defined.
- “Federally regulated appraisal management company” and “federally related transaction” are clarified.
Who is affected
- Primary: appraisal management companies that meet the panel‑size thresholds and perform appraisal management services for consumer mortgage transactions secured by a primary dwelling in North Dakota.
- Also affected: licensed/certified appraisers who participate on AMC panels; controlling persons (owners/officers) of AMCs; the North Dakota Real Estate Appraiser Qualifications and Ethics Board (oversight/implementation).
- Excluded: small AMCs (below thresholds), in‑house appraisal firms, federally regulated AMCs and certain bank subsidiaries.
Procedural / next steps
- The bill was considered in committee, reported favorably, and sent to the legislative calendar for further floor consideration (dates noted in committee report distribution in May 2025).
- If enacted, the bill will modify statutory definitions and exemptions; additional implementing rules or administrative procedures may follow from the Real Estate Appraiser Qualifications and Ethics Board.
Practical implications / notes
- The clear enumeration of activities that constitute “appraisal management services” narrows ambiguity about which entities are AMCs subject to state regulation.
- The numeric thresholds (more than 15 in‑state or 25 nationally) are the primary triggers for AMC coverage; smaller AMCs remain exempt under the text provided.
- By excluding federally regulated AMCs and certain bank subsidiaries, the bill aligns state regulatory reach with entities already regulated at the federal level.
Compiled from official sources — confirm details with the bill’s official record.
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