Texas Appraisal Management Company (AMC)
Licensing Exam – Practice Exam Questions And
Correct Answers (Verified Answers) Plus Rationales
2026/2027 Q&A | Instant Download Pdf
1. Which agency regulates Appraisal Management Companies (AMCs) in Texas?
A. Texas Department of Insurance
B. Texas Workforce Commission
C. Texas Appraiser Licensing and Certification Board (TALCB)
D. Texas Real Estate Commission
AMCs are regulated by TALCB under Chapter 1104 of the Texas Occupations Code.
2. What is the minimum number of appraisers an AMC must have on its panel in
a state before it is subject to federal oversight?
A. 5
B. 10
C. 15
D. 15 or more in a single state (or 25 nationwide)
Under the Dodd-Frank Act, AMCs with 15+ appraisers in one state, or 25+
nationwide, fall under federal AMC registration requirements.
3. An AMC in Texas must renew its license how often?
A. Every year
B. Every two years
C. Every three years
,D. Every five years
TALCB issues two-year AMC licenses with renewal deadlines set by statute.
4. Which of the following is a primary purpose of an AMC?
A. To set property tax values
B. To manage appraisal orders between lenders and appraisers
C. To regulate real estate brokers
D. To determine insurance replacement costs
AMCs serve as intermediaries between lenders and appraisers, assigning appraisal
orders and ensuring independence.
5. Which federal law prohibits coercion of appraisers by AMCs or lenders?
A. Real Estate Settlement Procedures Act (RESPA)
B. Equal Credit Opportunity Act (ECOA)
C. Truth in Lending Act (TILA) / Dodd-Frank Act
D. Sherman Antitrust Act
The Dodd-Frank Act and TILA amendments prohibit coercion, conflicts of interest,
and improper influence on appraisers.
6. An AMC operating in Texas must maintain a surety bond in the amount of:
A. $10,000
B. $15,000
C. $25,000
D. $50,000
TALCB requires AMCs to carry a $25,000 surety bond to protect consumers and
appraisers.
, 7. What is the penalty for an AMC failing to disclose an appraiser’s fee
separately from the AMC’s fee?
A. No penalty
B. Small administrative fine only
C. Violation of Texas Occupations Code subject to disciplinary action
D. Report to IRS
Texas law requires clear disclosure of the appraiser’s fee separate from AMC
charges. Failure can result in TALCB discipline.
8. An AMC must maintain records of appraisal orders for at least:
A. 2 years
B. 3 years
C. 5 years
D. 7 years
TALCB requires AMCs to keep appraisal assignment records for 5 years, or 2 years
after final disposition of a judicial proceeding.
9. A federally regulated AMC is one that:
A. Is exempt from state registration
B. Is only licensed by the FDIC
C. Is owned and controlled by an insured depository institution and regulated by
a federal agency
D. Operates in more than 3 states
Federally regulated AMCs are bank-affiliated AMCs overseen by federal regulators
instead of states.
10. Which of the following must AMCs ensure when assigning appraisals?
Licensing Exam – Practice Exam Questions And
Correct Answers (Verified Answers) Plus Rationales
2026/2027 Q&A | Instant Download Pdf
1. Which agency regulates Appraisal Management Companies (AMCs) in Texas?
A. Texas Department of Insurance
B. Texas Workforce Commission
C. Texas Appraiser Licensing and Certification Board (TALCB)
D. Texas Real Estate Commission
AMCs are regulated by TALCB under Chapter 1104 of the Texas Occupations Code.
2. What is the minimum number of appraisers an AMC must have on its panel in
a state before it is subject to federal oversight?
A. 5
B. 10
C. 15
D. 15 or more in a single state (or 25 nationwide)
Under the Dodd-Frank Act, AMCs with 15+ appraisers in one state, or 25+
nationwide, fall under federal AMC registration requirements.
3. An AMC in Texas must renew its license how often?
A. Every year
B. Every two years
C. Every three years
,D. Every five years
TALCB issues two-year AMC licenses with renewal deadlines set by statute.
4. Which of the following is a primary purpose of an AMC?
A. To set property tax values
B. To manage appraisal orders between lenders and appraisers
C. To regulate real estate brokers
D. To determine insurance replacement costs
AMCs serve as intermediaries between lenders and appraisers, assigning appraisal
orders and ensuring independence.
5. Which federal law prohibits coercion of appraisers by AMCs or lenders?
A. Real Estate Settlement Procedures Act (RESPA)
B. Equal Credit Opportunity Act (ECOA)
C. Truth in Lending Act (TILA) / Dodd-Frank Act
D. Sherman Antitrust Act
The Dodd-Frank Act and TILA amendments prohibit coercion, conflicts of interest,
and improper influence on appraisers.
6. An AMC operating in Texas must maintain a surety bond in the amount of:
A. $10,000
B. $15,000
C. $25,000
D. $50,000
TALCB requires AMCs to carry a $25,000 surety bond to protect consumers and
appraisers.
, 7. What is the penalty for an AMC failing to disclose an appraiser’s fee
separately from the AMC’s fee?
A. No penalty
B. Small administrative fine only
C. Violation of Texas Occupations Code subject to disciplinary action
D. Report to IRS
Texas law requires clear disclosure of the appraiser’s fee separate from AMC
charges. Failure can result in TALCB discipline.
8. An AMC must maintain records of appraisal orders for at least:
A. 2 years
B. 3 years
C. 5 years
D. 7 years
TALCB requires AMCs to keep appraisal assignment records for 5 years, or 2 years
after final disposition of a judicial proceeding.
9. A federally regulated AMC is one that:
A. Is exempt from state registration
B. Is only licensed by the FDIC
C. Is owned and controlled by an insured depository institution and regulated by
a federal agency
D. Operates in more than 3 states
Federally regulated AMCs are bank-affiliated AMCs overseen by federal regulators
instead of states.
10. Which of the following must AMCs ensure when assigning appraisals?
