Assuming the other elements of the federal AMC definition are satisfied, what panel-size threshold applies within the specified 12-month period?
Correct Answer
C) Over 15 appraisers in one state, or 25 or more in multiple states
The federal definition uses an appraiser panel exceeding 15 state-certified or licensed appraisers in one state or 25 or more in two or more states within the specified 12-month period, applying the panel-counting rules. Other definition elements and the distinction between state-registered and federally regulated AMCs still matter. The test is not employee count or order volume.
Why This Is the Correct Answer
Option C is correct because the federal AMC definition uses an appraiser panel of more than 15 state-certified or licensed appraisers in one state, or 25 or more in two or more states, within the specified 12-month period. The other elements of the definition and the panel-counting rules still apply.
Why the Other Options Are Wrong
Option A: More than 50 employees on staff, counted across all of its offices
Option A, more than 50 employees on staff counted across all of its offices, measures employee headcount. The federal threshold counts appraisers on the panel, not employees, and the figure of 50 does not come from the definition.
Option B: More than 100 appraisal orders managed during a calendar year
Option B, more than 100 appraisal orders managed during a calendar year, measures order volume. The federal test is panel size, not the number of orders, and the figure of 100 does not come from the definition.
Option D: Offices located in more than three states at the same time
Option D, offices in more than three states at the same time, measures office locations. The federal threshold counts appraisers on the panel by state, not the number of states with offices.
Fifteen in one, twenty-five across
More than 15 appraisers in one state, or 25 or more in two or more states, within the 12-month period.
How to use: Use this to answer any AMC threshold question that offers employee, order, or office counts.
Exam Tip
Note the wording: more than 15 for one state, but 25 or more for two or more states.
Common Mistakes to Avoid
- -Counting employees or orders instead of panel appraisers
- -Mixing up more than 15 with 15 or more
- -Assuming meeting the threshold settles whether the AMC is federally regulated
Concept Deep Dive
Analysis
This question tests the panel-size element of the federal appraisal management company definition. The threshold is based on the number of state-certified or licensed appraisers on the panel within the specified 12-month period, not on employees, order volume, or office locations. Recall the two numbers: more than 15 in one state, or 25 or more across two or more states.
Background Knowledge
Appraisal management companies serve as intermediaries between lenders and appraisers, and federal rules define which entities count as AMCs partly by panel size. The panel-size threshold is distinct from whether an AMC is federally regulated or subject to state registration, which must also be determined.
Real-World Application
A regional company coordinates appraisals using 20 licensed appraisers in one state during a 12-month period. Assuming the other elements are met, it exceeds the one-state threshold and must determine its AMC registration or regulatory status.
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