Joint Release
Office of the Comptroller of the Currency
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Consumer Financial Protection Bureau
Federal Housing Finance Agency
National Credit Union Administration
For Immediate Release March 24, 2014
Agencies Issue Proposed Rule on Minimum Requirements for
Appraisal Management Companies
WASHINGTON— Six agencies today issued a proposed rule that would implement
minimum requirements for state registration and supervision of appraisal management
companies (AMCs). An AMC is an entity that serves as an intermediary between
appraisers and lenders and provides appraisal management services.
In accordance with section 1124 of Title XI of the Financial Institution Reform,
Recovery, and Enforcement Act of 1989, as added by section 1473 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, the minimum requirements in the
proposed rule would apply to states that elect to establish an appraiser certifying and
licensing agency with the authority to register and supervise AMCs.
The proposed rule would not compel a state to establish an AMC registration and
supervision program, and there is no penalty imposed on a state that does not establish
a regulatory structure for AMCs. However, an AMC is barred by section 1124 from
providing appraisal management services for federally related transactions in a state
that has not established such a regulatory structure.
Under the proposed rule, participating states would require that an AMC:
• Register in the state and be subject to its supervision;
• Use only state-certified or licensed appraisers for federally related transactions,
such as real estate-related financial transactions overseen by a federal financial
institution regulatory agency that require appraiser services;
• Require that appraisals comply with the Uniform Standards of Professional
Appraisal Practice;
• Ensure selection of a competent and independent appraiser; and
• Establish and comply with processes and controls reasonably designed to
ensure that appraisals comply with the appraisal independence standards
established under the Truth in Lending Act.
Office of the Comptroller of the Currency
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Consumer Financial Protection Bureau
Federal Housing Finance Agency
National Credit Union Administration
For Immediate Release March 24, 2014
Agencies Issue Proposed Rule on Minimum Requirements for
Appraisal Management Companies
WASHINGTON— Six agencies today issued a proposed rule that would implement
minimum requirements for state registration and supervision of appraisal management
companies (AMCs). An AMC is an entity that serves as an intermediary between
appraisers and lenders and provides appraisal management services.
In accordance with section 1124 of Title XI of the Financial Institution Reform,
Recovery, and Enforcement Act of 1989, as added by section 1473 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, the minimum requirements in the
proposed rule would apply to states that elect to establish an appraiser certifying and
licensing agency with the authority to register and supervise AMCs.
The proposed rule would not compel a state to establish an AMC registration and
supervision program, and there is no penalty imposed on a state that does not establish
a regulatory structure for AMCs. However, an AMC is barred by section 1124 from
providing appraisal management services for federally related transactions in a state
that has not established such a regulatory structure.
Under the proposed rule, participating states would require that an AMC:
• Register in the state and be subject to its supervision;
• Use only state-certified or licensed appraisers for federally related transactions,
such as real estate-related financial transactions overseen by a federal financial
institution regulatory agency that require appraiser services;
• Require that appraisals comply with the Uniform Standards of Professional
Appraisal Practice;
• Ensure selection of a competent and independent appraiser; and
• Establish and comply with processes and controls reasonably designed to
ensure that appraisals comply with the appraisal independence standards
established under the Truth in Lending Act.
The proposed rule also would require that the certifying and licensing agency of a
participating state have certain authorities, including the authority to:
• Approve or deny initial AMC registration applications and applications for
renewals;
• Examine the AMC and require the AMC to submit relevant information to the
state;
• Verify that the appraisers on the AMC's appraiser network or panel hold valid
state certifications or licenses;
• Conduct investigations of AMCs to assess potential violations of appraisal-
related laws;
• Discipline an AMC that violates appraisal-related laws; and
• Report an AMC's violation of appraisal-related laws, as well as disciplinary and
enforcement actions, and other pertinent information about an AMC's operations
to the Appraisal Subcommittee of the Federal Financial Institutions Examination
Council.
The proposed rule would provide participating states 36 months after its effective date
to implement the minimum requirements. An AMC that is a subsidiary of a financial
institution and regulated by a federal financial institution regulatory agency is required
by section 1124 and the proposed rule to meet the same minimum requirements as
other AMCs, although such an AMC is not required to register with a state.
In conjunction with the proposal, the Federal Deposit Insurance Corporation is
proposing to rescind appraisal regulations promulgated by the former Office of Thrift
Supervision (OTS). The OTS appraisal regulations are duplicative of the FDIC's
appraisal regulations in Part 323. Similarly, in a separate rulemaking, the Office of the
Comptroller of the Currency is rescinding appraisal regulations promulgated by the
former OTS.
The proposal is being issued jointly by the Office of the Comptroller of the Currency, the
Board of Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, the Consumer Financial Protection Bureau, the Federal Housing Finance
Agency, and the National Credit Union Administration.
The Federal Register notice is attached. The agencies are seeking comments from the
public on all aspects of the proposal. The public will have 60 days to review and
comment on the proposal and the proposed Paperwork Reduction Act analysis.
Publication of the proposal in the Federal Register is expected shortly.
# # #
participating state have certain authorities, including the authority to:
• Approve or deny initial AMC registration applications and applications for
renewals;
• Examine the AMC and require the AMC to submit relevant information to the
state;
• Verify that the appraisers on the AMC's appraiser network or panel hold valid
state certifications or licenses;
• Conduct investigations of AMCs to assess potential violations of appraisal-
related laws;
• Discipline an AMC that violates appraisal-related laws; and
• Report an AMC's violation of appraisal-related laws, as well as disciplinary and
enforcement actions, and other pertinent information about an AMC's operations
to the Appraisal Subcommittee of the Federal Financial Institutions Examination
Council.
The proposed rule would provide participating states 36 months after its effective date
to implement the minimum requirements. An AMC that is a subsidiary of a financial
institution and regulated by a federal financial institution regulatory agency is required
by section 1124 and the proposed rule to meet the same minimum requirements as
other AMCs, although such an AMC is not required to register with a state.
In conjunction with the proposal, the Federal Deposit Insurance Corporation is
proposing to rescind appraisal regulations promulgated by the former Office of Thrift
Supervision (OTS). The OTS appraisal regulations are duplicative of the FDIC's
appraisal regulations in Part 323. Similarly, in a separate rulemaking, the Office of the
Comptroller of the Currency is rescinding appraisal regulations promulgated by the
former OTS.
The proposal is being issued jointly by the Office of the Comptroller of the Currency, the
Board of Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, the Consumer Financial Protection Bureau, the Federal Housing Finance
Agency, and the National Credit Union Administration.
The Federal Register notice is attached. The agencies are seeking comments from the
public on all aspects of the proposal. The public will have 60 days to review and
comment on the proposal and the proposed Paperwork Reduction Act analysis.
Publication of the proposal in the Federal Register is expected shortly.
# # #