12 U.S.C. § 3353 — Appraisal management company minimum requirements

submitted 16 years ago by Pub. L. 101-73 to r/title-12-BANKS-AND-BANKING · 555 words · no verdicts yet

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This section requires the listed Federal financial regulators to set minimum State registration rules for appraisal-management companies. It also addresses supervision, independence, ownership, reporting, and when registration is required.

(a) The listed Federal financial regulators must jointly make rules establishing minimum State requirements for registering appraisal-management companies. The rules must require registration and State supervision wherever the company operates; verification that federally related transactions use licensed or certified appraisers; compliance with the Uniform Standards of Professional Appraisal Practice; and independent appraisals free from improper influence or coercion under 15 U.S.C. 1639e. (b) States may impose additional requirements. (c) The requirements apply to a regulated financial institution’s controlled subsidiary, but that subsidiary need not register with a State. (d) A company may not be State-registered or placed on the national registry if any direct or indirect owner had an appraiser license refused, denied, canceled, surrendered instead of revocation, or revoked in any State. Each owner of more than 10 percent must have good moral character as the State agency determines and undergo its background investigation. (e) The regulators must jointly make rules for reporting company activities to the Appraisal Subcommittee when determining the annual registry fee. (f) No company may perform federally related appraisal services in a State after 36 months from final regulations unless State-registered or federally supervised. With Council approval, the Subcommittee may extend the registration and supervision requirement 12 months if it finds in writing that the State has made substantial progress toward a conforming system.

the actual law source: uscode.house.gov ↗public domain

(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

Nothing in this section shall be construed to prevent States from establishing requirements in addition to any rules promulgated under subsection (a).

The requirements of subsection (a) shall apply to an appraisal management company that is a subsidiary owned and controlled by a financial institution and regulated by a Federal financial institution regulatory agency. An appraisal management company that is a subsidiary owned and controlled by a financial institution regulated by a Federal financial institution regulatory agency shall not be required to register with a State.

(d) Registration limitations

An appraisal management company shall not be registered by a State or included on the national registry if such company, in whole or in part, directly or indirectly, is owned by any person who has had an appraiser license or certificate refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any State. Additionally, each person that owns more than 10 percent of an appraisal management company shall be of good moral character, as determined by the State appraiser certifying and licensing agency, and shall submit to a background investigation carried out by the State appraiser certifying and licensing agency.

(e) Reporting

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 promulgate regulations for the reporting of the activities of appraisal management companies to the Appraisal Subcommittee in determining the payment of the annual registry fee.

(f) Effective date

(1) In general

No appraisal management company may perform services related to a federally related transaction in a State after the date that is 36 months after the date on which the regulations required to be prescribed under subsection (a) are prescribed in final form unless such company is registered with such State or subject to oversight by a Federal financial institutions regulatory agency.

(2) Extension of effective date

Subject to the approval of the Council, the Appraisal Subcommittee may extend by an additional 12 months the requirements for the registration and supervision of appraisal management companies if it makes a written finding that a State has made substantial progress in establishing a State appraisal management company registration and supervision system that appears to conform with the provisions of this chapter.

Source credit: (Pub. L. 101–73, title XI, § 1124, as added Pub. L. 111–203, title XIV, § 1473(f)(2), July 21, 2010, 124 Stat. 2192.)

history & why it existsrecord from the source credit

2010Enacted · Pub. L. 101-73 · 124 Stat. 2192

A history note hasn’t been published yet. The record shows enactment by Pub. L. 101-73 on 2010-07-21.

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