Financial Institution Letter
FIL-19-2015
April 30, 2015
(Revised August 2015)
Minimum Requirements for Appraisal Management Companies
Summary: The agencies1 issued a final rule to implement the minimum requirements in the Dodd-Frank Wall Street
Reform and Consumer Protection Act for the registration and supervision of appraisal management companies
(AMCs). An AMC is an entity that meets the statutory appraiser panel threshold size and provides certain types of
appraisal management services in connection with valuing a consumer’s principal dwelling as security for a consumer
credit transaction or incorporating such transactions into securitizations.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies
only to those FDIC-supervised institutions, including community banks, that own an AMC that meets the statutory
appraiser panel threshold size of more than 15 appraisers in one state or 25 or more appraisers in two or more states.
The FDIC is not aware of any FDIC-supervised institutions that currently own an AMC that meets the statutory
appraiser panel threshold size.
Distribution:
FDIC-Supervised Institutions
Highlights:
The final rule requires participating states to:
o adopt minimum requirements for the registration of AMCs that
perform appraisal management services;
o impose certain minimum requirements on AMCs that register
with a state; and
o report AMC information to the Appraisal Subcommittee of the
Federal Financial Institutions Examination Council.
Participating states have 36 months after the effective date of this
final rule to establish the state registration and supervision
program.
While states are not compelled to establish an AMC registration
and supervision program, an AMC cannot provide appraisal
management services for federally related transactions in a state
that has not established such a regulatory structure.
The final rule also directs federally regulated AMCs to meet these
minimum requirements other than the requirement to register with
a state.
The final rule will take effect 60 days after publication in the
Federal Register. Participating states will establish the compliance
deadline for state-regulated AMCs, which cannot exceed three
years from the effective date of the final rule. Federally regulated
AMCs must comply with the minimum requirements for providing
appraisal management services no later than 12 months from the
effective date of the final rule.
Suggested Routing:
Chief Executive Officer
Chief Loan Officer
Compliance Officer
Related Topics:
Residential Mortgage Loans
Attachment:
AMC Minimum Requirements Final Rule
Contact:
Beverlea S. Gardner, Senior Examination Specialist, at
(202) 898-3640 or Bgardner@fdic.gov
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2015/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies may be obtained through the FDIC’s
Public Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (877-275-3342 or 703-562-2200).
Revised August 2015 to amend applicability statement.
1 The agencies include the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the
Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and
the Federal Housing Finance Agency.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
FIL-19-2015
April 30, 2015
(Revised August 2015)
Minimum Requirements for Appraisal Management Companies
Summary: The agencies1 issued a final rule to implement the minimum requirements in the Dodd-Frank Wall Street
Reform and Consumer Protection Act for the registration and supervision of appraisal management companies
(AMCs). An AMC is an entity that meets the statutory appraiser panel threshold size and provides certain types of
appraisal management services in connection with valuing a consumer’s principal dwelling as security for a consumer
credit transaction or incorporating such transactions into securitizations.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies
only to those FDIC-supervised institutions, including community banks, that own an AMC that meets the statutory
appraiser panel threshold size of more than 15 appraisers in one state or 25 or more appraisers in two or more states.
The FDIC is not aware of any FDIC-supervised institutions that currently own an AMC that meets the statutory
appraiser panel threshold size.
Distribution:
FDIC-Supervised Institutions
Highlights:
The final rule requires participating states to:
o adopt minimum requirements for the registration of AMCs that
perform appraisal management services;
o impose certain minimum requirements on AMCs that register
with a state; and
o report AMC information to the Appraisal Subcommittee of the
Federal Financial Institutions Examination Council.
Participating states have 36 months after the effective date of this
final rule to establish the state registration and supervision
program.
While states are not compelled to establish an AMC registration
and supervision program, an AMC cannot provide appraisal
management services for federally related transactions in a state
that has not established such a regulatory structure.
The final rule also directs federally regulated AMCs to meet these
minimum requirements other than the requirement to register with
a state.
The final rule will take effect 60 days after publication in the
Federal Register. Participating states will establish the compliance
deadline for state-regulated AMCs, which cannot exceed three
years from the effective date of the final rule. Federally regulated
AMCs must comply with the minimum requirements for providing
appraisal management services no later than 12 months from the
effective date of the final rule.
Suggested Routing:
Chief Executive Officer
Chief Loan Officer
Compliance Officer
Related Topics:
Residential Mortgage Loans
Attachment:
AMC Minimum Requirements Final Rule
Contact:
Beverlea S. Gardner, Senior Examination Specialist, at
(202) 898-3640 or Bgardner@fdic.gov
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2015/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies may be obtained through the FDIC’s
Public Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (877-275-3342 or 703-562-2200).
Revised August 2015 to amend applicability statement.
1 The agencies include the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the
Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and
the Federal Housing Finance Agency.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990