No. 43123 (Amendment): Section R162-2e-205. Division Service Fees -- AMC Registry Fee

(Amendment)

DAR File No.: 43123
Filed: 07/30/2018 12:52:38 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this proposed rule section is to provide notice and information to appraisal management companies (AMCs) registered in Utah that the Division of Real Estate (Division) will be collecting and transmitting to the Appraisal Subcommittee the federal AMC registry fee. This new section implements H.B. 243 from the 2018 General Session.

Summary of the rule or change:

The AMC registry fee is a new federal fee established by the Appraisal Subcommittee which is collected by each state AMC regulatory agency. In Utah, the regulatory agency is the Division. The Division will collect the AMC registry fee from AMCs and transmit the fees to the Appraisal Subcommittee.

Statutory or constitutional authorization for this rule:

• Section 61-2e-205
• Section 61-2e-103

Anticipated cost or savings to:

the state budget:

The Division has the staff and budget in place to administer this proposed amendment. After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact, affect those resources, or result in any additional cost or savings to the state budget.

local governments:

Local governments are not required to comply with or enforce the Appraisal Management Company Registration and Regulation rules. After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to local governments.

small businesses:

Only small businesses that are AMCs registered in Utah, or are operated as a subsidiary of a federally-regulated financial institution are subject to payment of the AMC registry fee. After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to small businesses, except for the affected AMCs. The compliance cost for AMCs affected by this proposed rule amendment is estimated under compliance costs for affected persons below.

persons other than small businesses, businesses, or local governmental entities:

Only AMCs registered in Utah, or that operate in Utah as a subsidiary of a federally-regulated financial institution are subject to payment of the AMC registry fee. After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to persons other than small businesses, businesses, or local government entities, except for the affected AMCs. The compliance cost for AMCs affected by this proposed rule amendment is estimated under compliance costs for affected persons below.

Compliance costs for affected persons:

This proposed amendment provides for the collection and transmittal of the AMC registry fee. The AMC registry fee is a new federal requirement for AMCs registered in Utah, or operating in Utah as a subsidiary of a federally-regulated financial institution. The Division only collects the fee and transmits it to the Appraisal Subcommittee. After conducting a thorough analysis, it was determined that the AMC registry fee will result in a combined fiscal impact to affected AMCs of $80,000 per year.

Comments by the department head on the fiscal impact the rule may have on businesses:

This new rule implements H.B. 243 (2018) which provides that the federally-mandated AMC registry fee shall be collected by the Division and transmitted to the appropriate federal agency. The AMC registry fee is a new federal requirement for AMCs registered in Utah, or operating in Utah as a subsidiary of a federally-regulated financial institution. The Division only collects the fee and transmits it to the Appraisal Subcommittee. After conducting a thorough analysis, the Division determined that the AMC registry fee will result in a combined fiscal impact to affected Utah AMCs of $80,000 per year. There are an estimated 34 large businesses in the AMC industry (NAICS) operating in Utah. These businesses account for an estimated 25% of the total number of AMC registry fees required to be paid to the federal Appraisal Subcommittee per year. The estimated remaining 75% of the AMC registry fees will be paid by small business AMCs.

Francine A. Giani, Executive Director, Commerce

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Commerce
Real Estate
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Justin Barney at the above address, by phone at 801-530-6603, by FAX at , or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

09/14/2018

This rule may become effective on:

09/21/2018

Authorized by:

Jonathan Stewart, Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$60,000

$60,000

$60,000

Non-Small Businesses

$20,000

$20,000

$20,000

Other Person

$0

$0

$0

Total Fiscal Costs:

$80,000

$80,000

$80,000

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0

Net Fiscal Benefits:

$<80,000>

$<80,000>

$<80,000>

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for Non-Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non-Small Businesses

There are an estimated 34 non-small businesses in the AMC industry (NAICS 531320) operating in Utah. These businesses account for an estimated 25% of the total number of AMC registry fees required to be paid to the Appraisal Subcommittee per year. The Appraisal Subcommittee has established the current amount of the fee to be $25 per appraiser who has performed an appraisal for the AMC in connection with a residential mortgage loan transaction during the previous year. It is estimated that the registry fee associated with this section will be ongoing.

 

The AMC registry fee is a federal fee collected by the Division of Real Estate and transmitted to the Appraisal Subcommittee. The Appraisal Subcommittee will receive an estimated $80,000 per year.

 

The Executive Director of the Commerce Department, Francine A. Giani, has reviewed and approved this fiscal analysis."

 

 

R162. Commerce, Real Estate.

R162-2e. Appraisal Management Company Administrative Rules.

R162-2e-205. Division Service Fees -- AMC Registry Fee.

(1) The division shall collect and transmit to the Appraisal Subcommittee an AMC registry fee from:

(a) an AMC registered under the Appraisal Management Company Registration and Regulation Act; or

(b) an AMC that operates as a subsidiary of a federally regulated financial institution.

(2) The amount of the AMC registry fee shall be as follows:

(a) for an AMC that has been in existence for more than one year, the amount collected shall be the established AMC registry fee multiplied by the number of appraisers who have performed an appraisal in connection with a residential mortgage loan transaction for the AMC in Utah during the previous year; and

(b) for an AMC that has not been in existence for more than one year, the amount collected shall be the established AMC registry fee multiplied by the number of appraisers who have performed an appraisal in connection with a residential mortgage loan transaction for the AMC in Utah since the AMC commenced doing business.

 

KEY: administrative proceedings, appraisal management company (AMC) , conduct, [registration]AMC registry fee

Date of Enactment or Last Substantive Amendment: [January 28, 2015]2018

Notice of Continuation: April 17, 2015

Authorizing, and Implemented or Interpreted Law: 61-2e-102(4); 61-2e-103; 61-2e-307; 61-2e-305; 61-2e-402(1)

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