1. U.S. Code
  2. title 12
  3. chapter 34A
  4. § 3345

Collapse to view only § 3345. Certification and licensing requirements

§ 3331. Purpose

The purpose of this chapter is to provide that Federal financial and public policy interests in real estate related transactions will be protected by requiring that real estate appraisals utilized in connection with federally related transactions are performed in writing, in accordance with uniform standards, by individuals whose competency has been demonstrated and whose professional conduct will be subject to effective supervision.

(Pub. L. 101–73, title XI, § 1101, Aug. 9, 1989, 103 Stat. 511.)

CITE AS: 12 USC 3331

§ 3332. Functions of Appraisal Subcommittee
(a) In generalThe Appraisal Subcommittee shall—
(1) monitor the requirements established by States—
(A) for the certification and licensing of individuals who are qualified to perform appraisals in connection with federally related transactions, including a code of professional responsibility; and
(B) for the registration and supervision of the operations and activities of an appraisal management company;
(2) monitor the requirements established by the Federal financial institutions regulatory agencies with respect to—
(A) appraisal standards for federally related transactions under their jurisdiction, and
(B) determinations as to which federally related transactions under their jurisdiction require the services of a State certified appraiser and which require the services of a State licensed appraiser;
(3) maintain a national registry of State certified and licensed appraisers who are eligible to perform appraisals in federally related transactions; and 1
1 So in original. The word “and” probably should not appear.
(4) Omitted
(5) transmit an annual report to the Congress not later than June 15 of each year that describes the manner in which each function assigned to the Appraisal Subcommittee has been carried out during the preceding year. The report shall also detail the activities of the Appraisal Subcommittee, including the results of all audits of State appraiser regulatory agencies, and provide an accounting of disapproved actions and warnings taken in the previous year, including a description of the conditions causing the disapproval and actions taken to achieve compliance.2
2 So in original. Probably should be “compliance; and”.
(6) maintain a national registry of appraisal management companies that either are registered with and subject to supervision of a State appraiser certifying and licensing agency or are operating subsidiaries of a Federally regulated financial institution.
(b) Monitoring and reviewing foundation
(Pub. L. 101–73, title XI, § 1103, Aug. 9, 1989, 103 Stat. 512; Pub. L. 111–203, title III, § 367(6), title XIV, § 1473(b), (f)(1), July 21, 2010, 124 Stat. 1557, 2190, 2191.)

CITE AS: 12 USC 3332

§ 3333. Chairperson of Appraisal Subcommittee; term of Chairperson; meetings
(a) Chairperson
(b) Meetings; quorum; voting
(Pub. L. 101–73, title XI, § 1104, Aug. 9, 1989, 103 Stat. 512; Pub. L. 111–203, title XIV, § 1473(c), July 21, 2010, 124 Stat. 2191.)

CITE AS: 12 USC 3333

§ 3334. Officers and staff

The Chairperson of the Appraisal Subcommittee shall appoint such officers and staff as may be necessary to carry out the functions of this chapter consistent with the appointment and compensation practices of the Council.

(Pub. L. 101–73, title XI, § 1105, Aug. 9, 1989, 103 Stat. 512.)

CITE AS: 12 USC 3334

§ 3335. Powers of Appraisal Subcommittee

The Appraisal Subcommittee may, for the purpose of carrying out this chapter, establish advisory committees, hold hearings prescribe 1

1 So in original. Probably should be preceded by a comma.
regulations in accordance with chapter 5 of title 5 (commonly referred to as the Administrative Procedures Act) after notice and opportunity for comment,,2
2 So in original.
sit and act at times and places, take testimony, receive evidence, provide information, and perform research, as the Appraisal Subcommittee considers appropriate. Any regulations prescribed by the Appraisal Subcommittee shall (unless otherwise provided in this chapter) be limited to the following functions: temporary practice, national registry, information sharing, and enforcement. For purposes of prescribing regulations, the Appraisal Subcommittee shall establish an advisory committee of industry participants, including appraisers, lenders, consumer advocates, real estate agents, and government agencies, and hold meetings as necessary to support the development of regulations.

(Pub. L. 101–73, title XI, § 1106, Aug. 9, 1989, 103 Stat. 512; Pub. L. 111–203, title XIV, § 1473(d), July 21, 2010, 124 Stat. 2191.)

CITE AS: 12 USC 3335

§ 3336. Procedures for establishing appraisal standards and requiring use of certified and licensed appraisers

Appraisal standards and requirements for using State certified and licensed appraisers in federally related transactions pursuant to this chapter shall be prescribed in accordance with procedures set forth in section 553 of title 5, including the publication of notice and receipt of written comments or the holding of public hearings with respect to any standards or requirements proposed to be established.

(Pub. L. 101–73, title XI, § 1107, Aug. 9, 1989, 103 Stat. 513.)

CITE AS: 12 USC 3336

§ 3337. Startup funding
(a) In general
(b) Additional funds
(c) Repayment of Treasury loan
(Pub. L. 101–73, title XI, § 1108, Aug. 9, 1989, 103 Stat. 513; Pub. L. 104–208, div. A, title II, § 2212, Sept. 30, 1996, 110 Stat. 3009–411.)

CITE AS: 12 USC 3337

§ 3338. Roster of State certified or licensed appraisers; authority to collect and transmit fees
(a) In generalEach State with an appraiser certifying and licensing agency whose certifications and licenses comply with this chapter, shall—
(1) transmit to the Appraisal Subcommittee, no less than annually, a roster listing individuals who have received a State certification or license in accordance with this chapter;
(2) transmit reports on the issuance and renewal of licenses and certifications, sanctions, disciplinary actions, license and certification revocations, and license and certification suspensions on a timely basis to the national registry of the Appraisal Subcommittee;
(3) transmit reports on a timely basis of supervisory activities involving appraisal management companies or other third-party providers of appraisals and appraisal management services, including investigations initiated and disciplinary actions taken; and
(4) collect—
(A) from such individuals who perform or seek to perform appraisals in federally related transactions, an annual registry fee of not more than $40, such fees to be transmitted by the State agencies to the Council on an annual basis; and
(B) from an appraisal management company that either has registered with a State appraiser certifying and licensing agency in accordance with this chapter or operates as a subsidiary of a federally regulated financial institution, an annual registry fee of—
(i) in the case of such a company that has been in existence for more than a year, $25 multiplied by the number of appraisers working for or contracting with such company in such State during the previous year, but where such $25 amount may be adjusted, up to a maximum of $50, at the discretion of the Appraisal Subcommittee, if necessary to carry out the Subcommittee’s functions under this chapter; and
(ii) in the case of such a company that has not been in existence for more than a year, $25 multiplied by an appropriate number to be determined by the Appraisal Subcommittee, and where such number will be used for determining the fee of all such companies that were not in existence for more than a year, but where such $25 amount may be adjusted, up to a maximum of $50, at the discretion of the Appraisal Subcommittee, if necessary to carry out the Subcommittee’s functions under this chapter.
Subject to the approval of the Council, the Appraisal Subcommittee may adjust the dollar amount of registry fees under paragraph (4)(A), up to a maximum of $80 per annum, as necessary to carry out its functions under this chapter. The Appraisal Subcommittee shall consider at least once every 5 years whether to adjust the dollar amount of the registry fees to account for inflation. In implementing any change in registry fees, the Appraisal Subcommittee shall provide flexibility to the States for multi-year certifications and licenses already in place, as well as a transition period to implement the changes in registry fees. In establishing the amount of the annual registry fee for an appraisal management company, the Appraisal Subcommittee shall have the discretion to impose a minimum annual registry fee for an appraisal management company to protect against the under reporting of the number of appraisers working for or contracted by the appraisal management company.
(b) Use of amounts appropriated or collectedAmounts appropriated for or collected by the Appraisal Subcommittee under this section shall be used—
(1) to maintain a registry of individuals who are qualified and eligible to perform appraisals in connection with federally related transactions;
(2) to support its activities under this chapter;
(3) to reimburse the general fund of the Treasury for amounts appropriated to and expended by the Appraisal Subcommittee during the 24-month startup period following August 9, 1989;
(4) to make grants in such amounts as it deems appropriate to the Appraisal Foundation, to help defray those costs of the foundation relating to the activities of its Appraisal Standards and Appraiser Qualification Boards;
(5) to make grants to State appraiser certifying and licensing agencies, in accordance with policies to be developed by the Appraisal Subcommittee, to support the efforts of such agencies to comply with this chapter, including—
(A) the complaint process, complaint investigations, and appraiser enforcement activities of such agencies; and
(B) the submission of data on State licensed and certified appraisers and appraisal management companies to the National appraisal registry, including information affirming that the appraiser or appraisal management company meets the required qualification criteria and formal and informal disciplinary actions; and
(6) to report to all State appraiser certifying and licensing agencies when a license or certification is surrendered, revoked, or suspended.
(Pub. L. 101–73, title XI, § 1109, Aug. 9, 1989, 103 Stat. 513; Pub. L. 111–203, title XIV, § 1473(g), (h)(1), (i), July 21, 2010, 124 Stat. 2194, 2195.)

CITE AS: 12 USC 3338

§ 3339. Functions of Federal financial institutions regulatory agencies relating to appraisal standards
Each Federal financial institutions regulatory agency and the Resolution Trust Corporation shall prescribe appropriate standards for the performance of real estate appraisals in connection with federally related transactions under the jurisdiction of each such agency or instrumentality. These rules shall require, at a minimum—
(1) that real estate appraisals be performed in accordance with generally accepted appraisal standards as evidenced by the appraisal standards promulgated by the Appraisal Standards Board of the Appraisal Foundation;
(2) that such appraisals shall be written appraisals; and
(3) that such appraisals shall be subject to appropriate review for compliance with the Uniform Standards of Professional Appraisal Practice.
Each such agency or instrumentality may require compliance with additional standards if it makes a determination in writing that such additional standards are required in order to properly carry out its statutory responsibilities.
(Pub. L. 101–73, title XI, § 1110, Aug. 9, 1989, 103 Stat. 514; Pub. L. 111–203, title XIV, § 1473(e)(1), July 21, 2010, 124 Stat. 2191.)

CITE AS: 12 USC 3339

§ 3340. Time for proposal and adoption of standards

Appraisal standards established under this chapter shall be proposed not later than 6 months and shall be adopted in final form and become effective not later than 12 months after August 9, 1989.

(Pub. L. 101–73, title XI, § 1111, Aug. 9, 1989, 103 Stat. 514.)

CITE AS: 12 USC 3340

§ 3341. Functions of Federal financial institutions regulatory agencies relating to appraiser qualifications
(a) In general
(b) Threshold level
(c) GAO study of appraisals in connection with real estate related financial transactions below threshold level
(1) GAO studies
(A) the cost to any financial institution involved in any such transaction;
(B) the possibility of losses to the Deposit Insurance Fund or the National Credit Union Share Insurance Fund;
(C) the cost to any customer involved in any such transaction; and
(D) the effect on low-income housing.
(2) Reports to Congress and the appropriate Federal financial institutions regulatory agencies
(Pub. L. 101–73, title XI, § 1112, Aug. 9, 1989, 103 Stat. 514; Pub. L. 102–550, title IX, § 954, Oct. 28, 1992, 106 Stat. 3894; Pub. L. 104–208, div. A, title II, § 2704(d)(15)(B), Sept. 30, 1996, 110 Stat. 3009–495; Pub. L. 104–316, title I, § 106(g), Oct. 19, 1996, 110 Stat. 3831; Pub. L. 109–171, title II, § 2102(b), Feb. 8, 2006, 120 Stat. 9; Pub. L. 109–173, § 9(g)(2), Feb. 15, 2006, 119 Stat. 3618; Pub. L. 111–203, title XIV, § 1473(a), July 21, 2010, 124 Stat. 2190.)

CITE AS: 12 USC 3341

§ 3342. Transactions requiring services of State certified appraiser
In determining whether an appraisal in connection with a federally related transaction shall be performed by a State certified appraiser, an agency or instrumentality under this chapter shall consider whether transactions, either individually or collectively, are of sufficient financial or public policy importance to the United States that an individual who performs an appraisal in connection with such transactions should be a State certified appraiser, except that—
(1) a State certified appraiser shall be required for all federally related transactions having a value of $1,000,000 or more; and
(2) 1-to-4 unit, single family residential appraisals may be performed by State licensed appraisers unless the size and complexity requires a State certified appraiser, where a complex 1-to-4 unit single family residential appraisal means an appraisal for which the property to be appraised, the form of ownership, the property characteristics, or the market conditions are atypical.
(Pub. L. 101–73, title XI, § 1113, Aug. 9, 1989, 103 Stat. 514; Pub. L. 111–203, title XIV, § 1473(e)(2), July 21, 2010, 124 Stat. 2191.)

CITE AS: 12 USC 3342

§ 3343. Transactions requiring services of State licensed appraiser

All federally related transactions not requiring the services of a State certified appraiser shall be performed by either a State certified or licensed appraiser.

(Pub. L. 101–73, title XI, § 1114, Aug. 9, 1989, 103 Stat. 514.)

CITE AS: 12 USC 3343

§ 3344. Time for proposal and adoption of rules

As appropriate, rules issued under sections 3342 and 3343 of this title shall be proposed not later than 6 months and shall be effective upon adoption in final form not later than 12 months after August 9, 1989.

(Pub. L. 101–73, title XI, § 1115, Aug. 9, 1989, 103 Stat. 515.)

CITE AS: 12 USC 3344

§ 3345. Certification and licensing requirements
(a) In general
(b) Restriction
(c) “State licensed appraiser” defined
(d) Additional qualification criteria
(e) Minimum qualification requirements
(Pub. L. 101–73, title XI, § 1116, Aug. 9, 1989, 103 Stat. 515; Pub. L. 102–233, title VII, § 701(a), Dec. 12, 1991, 105 Stat. 1792; Pub. L. 102–242, title IV, § 472(a), Dec. 19, 1991, 105 Stat. 2386; Pub. L. 102–550, title XVI, § 1617(a), Oct. 28, 1992, 106 Stat. 4096; Pub. L. 111–203, title XIV, § 1473(j), July 21, 2010, 124 Stat. 2195.)

CITE AS: 12 USC 3345

§ 3346. Establishment of State appraiser certifying and licensing agencies

To assure the availability of State certified and licensed appraisers for the performance in a State of appraisals in federally related transactions and to assure effective supervision of the activities of certified and licensed appraisers, a State may establish a State appraiser certifying and licensing agency. The duties of such agency may additionally include the registration and supervision of appraisal management companies and the addition of information about the appraisal management company to the national registry.

(Pub. L. 101–73, title XI, § 1117, Aug. 9, 1989, 103 Stat. 515; Pub. L. 111–203, title XIV, § 1473(f)(3), July 21, 2010, 124 Stat. 2193.)

CITE AS: 12 USC 3346

§ 3347. Monitoring of State appraiser certifying and licensing agencies
(a) In general
The Appraisal Subcommittee shall monitor each State appraiser certifying and licensing agency for the purposes of determining whether such agency—
(1) has policies, practices, funding, staffing, and procedures that are consistent with this chapter;
(2) processes complaints and completes investigations in a reasonable time period;
(3) appropriately disciplines sanctioned appraisers and appraisal management companies;
(4) maintains an effective regulatory program; and
(5) reports complaints and disciplinary actions on a timely basis to the national registries on appraisers and appraisal management companies maintained by the Appraisal Subcommittee.
The Appraisal Subcommittee shall have the authority to remove a State licensed or certified appraiser or a registered appraisal management company from a national registry on an interim basis, not to exceed 90 days, pending State agency action on licensing, certification, registration, and disciplinary proceedings. The Appraisal Subcommittee and all agencies, instrumentalities, and Federally recognized entities under this chapter shall not recognize appraiser certifications and licenses from States whose appraisal policies, practices, funding, staffing, or procedures are found to be inconsistent with this chapter. The Appraisal Subcommittee shall have the authority to impose sanctions, as described in this section, against a State agency that fails to have an effective appraiser regulatory program. In determining whether such a program is effective, the Appraisal Subcommittee shall include an analysis of the licensing and certification of appraisers, the registration of appraisal management companies, the issuance of temporary licenses and certifications for appraisers, the receiving and tracking of submitted complaints against appraisers and appraisal management companies, the investigation of complaints, and enforcement actions against appraisers and appraisal management companies. The Appraisal Subcommittee shall have the authority to impose interim actions and suspensions against a State agency as an alternative to, or in advance of, the derecognition of a State agency.
(b) Disapproval by Appraisal Subcommittee
The Federal financial institutions, 1
1 So in original. The comma probably should not appear.
regulatory agencies, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Resolution Trust Corporation shall accept certifications and licenses awarded by a State appraiser certifying the licensing agency unless the Appraisal Subcommittee issues a written finding that—
(1) the State agency fails to recognize and enforce the standards, requirements, and procedures prescribed pursuant to this chapter;
(2) the State agency is not granted authority or sufficient funding by the State which is adequate to permit the agency to carry out its functions under this chapter; or
(3) decisions concerning appraisal standards, appraiser qualifications and supervision of appraiser practices are not made in a manner that carries out the purposes of this chapter.
(c) Rejection of State certifications and licenses
(1) Opportunity to be heard or correct conditions
(2) Adoption of procedures
(3) Judicial review
(Pub. L. 101–73, title XI, § 1118, Aug. 9, 1989, 103 Stat. 515; Pub. L. 111–203, title XIV, § 1473(k), July 21, 2010, 124 Stat. 2196.)

CITE AS: 12 USC 3347

§ 3348. Recognition of State certified and licensed appraisers for purposes of this chapter
(a) Effective date for use of certified or licensed appraisers only
(1) In general
(2) Extension of effective date
(b) Temporary waiver of appraiser certification or licensing requirements for State having scarcity of qualified appraisers
(c) Reports to State certifying and licensing agencies
(Pub. L. 101–73, title XI, § 1119, Aug. 9, 1989, 103 Stat. 516; Pub. L. 102–233, title VII, § 701(b), Dec. 12, 1991, 105 Stat. 1792; Pub. L. 102–242, title IV, § 472(b), Dec. 19, 1991, 105 Stat. 2386; Pub. L. 102–550, title XVI, § 1617(a), Oct. 28, 1992, 106 Stat. 4096; Pub. L. 111–203, title XIV, § 1473(t)(1), July 21, 2010, 124 Stat. 2199.)

CITE AS: 12 USC 3348

§ 3349. Violations in obtaining and performing appraisals in federally related transactions
(a) Violations
Except as authorized by the Appraisal Subcommittee in exercising its waiver authority pursuant to section 3348(b) of this title, it shall be a violation of this section—
(1) for a financial institution to seek, obtain, or give money or any other thing of value in exchange for the performance of an appraisal by a person who the institution knows is not a State certified or licensed appraiser in connection with a federally related transaction; and
(2) for the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or the Resolution Trust Corporation to knowingly contract for the performance of any appraisal by a person who is not a State certified or licensed appraiser in connection with a real estate related financial transaction defined in section 3350(5) of this title to which such association or corporation is a party.
(b) Penalties
(c) Proceeding
(Pub. L. 101–73, title XI, § 1120, Aug. 9, 1989, 103 Stat. 517.)

CITE AS: 12 USC 3349

§ 3350. Definitions
For purposes of this chapter:
(1) State appraiser certifying and licensing agency
(2) Appraisal Subcommittee; subcommittee
(3) Council
(4) Federally related transaction
The term “federally related transaction” means any real estate-related financial transaction which—
(A) a federal financial institutions regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates; and
(B) requires the services of an appraiser.
(5) Real estate related financial transaction
The term “real estate-related financial transaction” means any transaction involving—
(A) the sale, lease, purchase, investment in or exchange of real property, including interests in property, or the financing thereof;
(B) the refinancing of real property or interests in real property; and
(C) the use of real property or interests in property as security for a loan or investment, including mortgage-backed securities.
(6) Federal financial institutions regulatory agencies
(7) Financial institution
(8) Chairperson
(9) Foundation
(10) Written appraisal
(11) Appraisal management company
The term “appraisal management company” means, in connection with valuing properties collateralizing mortgage loans or mortgages incorporated into a securitization, any external third party authorized either by a creditor of a consumer credit transaction secured by a consumer’s principal dwelling or by an underwriter of or other principal in the secondary mortgage markets, that oversees a network or panel of more than 15 certified or licensed appraisers in a State or 25 or more nationally within a given year—
(A) to recruit, select, and retain appraisers;
(B) to contract with licensed and certified appraisers to perform appraisal assignments;
(C) to manage the process of having an appraisal performed, including providing administrative duties such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for services provided, and reimbursing appraisers for services performed; or
(D) to review and verify the work of appraisers.
(Pub. L. 101–73, title XI, § 1121, Aug. 9, 1989, 103 Stat. 517; Pub. L. 111–203, title XIV, § 1473(f)(4), (t)(2), (3), July 21, 2010, 124 Stat. 2193, 2199.)

CITE AS: 12 USC 3350

§ 3351. Miscellaneous provisions
(a) Temporary practice
(1) In general
A State appraiser certifying or licensing agency shall recognize on a temporary basis the certification or license of an appraiser issued by another State if—
(A) the property to be appraised is part of a federally related transaction,
(B) the appraiser’s business is of a temporary nature, and
(C) the appraiser registers with the appraiser certifying or licensing agency in the State of temporary practice.
(2) Fees for temporary practice
(b) Reciprocity
Notwithstanding any other provisions of this chapter, a federally related transaction shall not be appraised by a certified or licensed appraiser unless the State appraiser certifying or licensing agency of the State certifying or licensing such appraiser has in place a policy of issuing a reciprocal certification or license for an individual from another State when—
(1) the appraiser licensing and certification program of such other State is in compliance with the provisions of this chapter; and
(2) the appraiser holds a valid certification from a State whose requirements for certification or licensing meet or exceed the licensure standards established by the State where an individual seeks appraisal licensure.
(c) Supplemental funding
(d) Prohibition against discrimination
(e) Other requirements
A corporation, partnership, or other business entity may provide appraisal services in connection with federally related transactions if such appraisal is prepared by individuals certified or licensed in accordance with the requirements of this chapter. An individual who is not a State certified or licensed appraiser may assist in the preparation of an appraisal if—
(1) the assistant is under the direct supervision of a licensed or certified individual; and
(2) the final appraisal document is approved and signed by an individual who is certified or licensed.
(f) Studies
(1) Study
The Appraisal Subcommittee shall—
(A) conduct a study to determine whether real estate sales and financing information and data that is available to real estate appraisers in the States is sufficient to permit appraisers to properly estimate the values of properties in connection with federally related transactions; and
(B) study the feasibility and desirability of extending the provisions of this chapter to the function of personal property appraising and to personal property appraisers in connection with Federal financial and public policy interests.
(2) Report
The Appraisal Subcommittee shall—
(A) report its findings to the Congress with respect to the study described in paragraph (1)(A) no later than 12 months after August 9, 1989, and
(B) report its findings with respect to the study described in paragraph (1)(B) to Congress not later than 18 months after August 9, 1989.
(g) Appraiser independence monitoring
(h) Approved education
(i) Appraisal complaint national hotline
(Pub. L. 101–73, title XI, § 1122, Aug. 9, 1989, 103 Stat. 518; Pub. L. 103–325, title III, § 315, Sept. 23, 1994, 108 Stat. 2222; Pub. L. 111–203, title XIV, § 1473(l)–(p), (t)(4), July 21, 2010, 124 Stat. 2196, 2197, 2199.)

CITE AS: 12 USC 3351

§ 3352. Emergency exceptions for disaster areas
(a) In generalEach Federal financial institutions regulatory agency may, by regulation or order, make exceptions to this chapter, and to standards prescribed pursuant to this chapter, for transactions involving institutions for which the agency is the primary Federal regulator with respect to real property located within a disaster area if the agency—
(1) makes the exception not later than 30 months after the date on which the President determines, pursuant to section 5170 of title 42, that a major disaster exists in the area; and
(2) determines that the exception—
(A) would facilitate recovery from the major disaster; and
(B) is consistent with safety and soundness.
(b) 3-year limit on exceptions
(c) Publication requiredAny Federal financial institutions regulatory agency shall publish in the Federal Register a statement that—
(1) describes any exception made under this section; and
(2) explains how the exception—
(A) would facilitate recovery from the major disaster; and
(B) is consistent with safety and soundness.
(d) “Disaster area” defined
(Pub. L. 101–73, title XI, § 1123, as added Pub. L. 102–485, § 2, Oct. 23, 1992, 106 Stat. 2771.)

CITE AS: 12 USC 3352

§ 3353. Appraisal management company minimum requirements
(a) In general
The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, the Federal Housing Finance Agency, and the Bureau of Consumer Financial Protection shall jointly, by rule, establish minimum requirements to be applied by a State in the registration of appraisal management companies. Such requirements shall include a requirement that such companies—
(1) register with and be subject to supervision by a State appraiser certifying and licensing agency in each State in which such company operates;
(2) verify that only licensed or certified appraisers are used for federally related transactions;
(3) require that appraisals coordinated by an appraisal management company comply with the Uniform Standards of Professional Appraisal Practice; and
(4) require that appraisals are conducted independently and free from inappropriate influence and coercion pursuant to the appraisal independence standards established under section 1639e of title 15.
(b) Relation to State law
(c) Federally regulated financial institutions
(d) Registration limitations
(e) Reporting
(f) Effective date
(1) In general
(2) Extension of effective date
(Pub. L. 101–73, title XI, § 1124, as added Pub. L. 111–203, title XIV, § 1473(f)(2), July 21, 2010, 124 Stat. 2192.)

CITE AS: 12 USC 3353

§ 3354. Automated valuation models used to estimate collateral value for mortgage lending purposes
(a) In general
Automated valuation models shall adhere to quality control standards designed to—
(1) ensure a high level of confidence in the estimates produced by automated valuation models;
(2) protect against the manipulation of data;
(3) seek to avoid conflicts of interest;
(4) require random sample testing and reviews; and
(5) account for any other such factor that the agencies listed in subsection (b) determine to be appropriate.
(b) Adoption of regulations
(c) Enforcement
Compliance with regulations issued under this subsection shall be enforced by—
(1) with respect to a financial institution, or subsidiary owned and controlled by a financial institution and regulated by a Federal financial institution regulatory agency, the Federal financial institution regulatory agency that acts as the primary Federal supervisor of such financial institution or subsidiary; and
(2) with respect to other participants in the market for appraisals of 1-to-4 unit single family residential real estate, the Federal Trade Commission, the Bureau of Consumer Financial Protection, and a State attorney general.
(d) Automated valuation model defined
(Pub. L. 101–73, title XI, § 1125, as added Pub. L. 111–203, title XIV, § 1473(q), July 21, 2010, 124 Stat. 2198.)

CITE AS: 12 USC 3354

§ 3355. Broker price opinions
(a) General prohibition
(b) Broker price opinion defined
(Pub. L. 101–73, title XI, § 1126, as added Pub. L. 111–203, title XIV, § 1473(r), July 21, 2010, 124 Stat. 2198.)

CITE AS: 12 USC 3355

§ 3356. Exemption from appraisals of real estate located in rural areas
(a) DefinitionsIn this section—
(1) the term “mortgage originator” has the meaning given the term in section 1602 of title 15; and
(2) the term “transaction value” means the amount of a loan or extension of credit, including a loan or extension of credit that is part of a pool of loans or extensions of credit.
(b) Appraisal not requiredExcept as provided in subsection (d), notwithstanding any other provision of law, an appraisal in connection with a federally related transaction involving real property or an interest in real property is not required if—
(1) the real property or interest in real property is located in a rural area, as described in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations;
(2) not later than 3 days after the date on which the Closing Disclosure Form, made in accordance with the final rule of the Bureau of Consumer Financial Protection entitled “Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)” (78 Fed. Reg. 79730 (December 31, 2013)), relating to the federally related transaction is given to the consumer, the mortgage originator or its agent, directly or indirectly—
(A) has contacted not fewer than 3 State certified appraisers or State licensed appraisers, as applicable, on the mortgage originator’s approved appraiser list in the market area in accordance with part 226 of title 12, Code of Federal Regulations; and
(B) has documented that no State certified appraiser or State licensed appraiser, as applicable, was available within 5 business days beyond customary and reasonable fee and timeliness standards for comparable appraisal assignments, as documented by the mortgage originator or its agent;
(3) the transaction value is less than $400,000; and
(4) the mortgage originator is subject to oversight by a Federal financial institutions regulatory agency.
(c) Sale, assignment, or transferA mortgage originator that makes a loan without an appraisal under the terms of subsection (b) shall not sell, assign, or otherwise transfer legal title to the loan unless—
(1) the loan is sold, assigned, or otherwise transferred to another person by reason of the bankruptcy or failure of the mortgage originator;
(2) the loan is sold, assigned, or otherwise transferred to another person regulated by a Federal financial institutions regulatory agency, so long as the loan is retained in portfolio by the person;
(3) the sale, assignment, or transfer is pursuant to a merger of the mortgage originator with another person or the acquisition of the mortgage originator by another person or of another person by the mortgage originator; or
(4) the sale, loan, or transfer is to a wholly owned subsidiary of the mortgage originator, provided that, after the sale, assignment, or transfer, the loan is considered to be an asset of the mortgage originator for regulatory accounting purposes.
(d) ExceptionSubsection (b) shall not apply if—
(1) a Federal financial institutions regulatory agency requires an appraisal under section 225.63(c), 323.3(c), 34.43(c), or 722.3(e) of title 12, Code of Federal Regulations; or
(2) the loan is a high-cost mortgage, as defined in section 1602 of title 15.
(e) Anti-evasion
(Pub. L. 101–73, title XI, § 1127, as added Pub. L. 115–174, title I, § 103, May 24, 2018, 132 Stat. 1299.)

CITE AS: 12 USC 3356