53579Federal Register / Vol. 84, No. 195 / Tuesday, October 8, 2019 / Rules and Regulations
DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Part 718
Commodity Credit Corporation
7 CFR Part 1412
RIN 0560–AI45
[Docket ID FSA–2019–0008]
Agriculture Risk Coverage and Price
Loss Coverage Programs; Correction
AGENCY: Commodity Credit Corporation
and Farm Service Agency, USDA.
ACTION: Final rule; correction and
correcting amendment.
SUMMARY: The Commodity Credit
Corporation (CCC) is correcting a final
rule that was published in the Federal
Register on September 3, 2019, which
revised the Agriculture Risk Coverage
(ARC) and Price Loss Coverage (PLC)
Programs. That document inadvertently
failed to include the relevant counties in
Nebraska that have been established as
having a history of double-cropping
covered commodities or peanuts with
fruits, vegetables, or wild rice and
incorrectly listed the previous
Regulation Identifier Number (RIN).
DATES: Effective: October 8, 2019.
FOR FURTHER INFORMATION CONTACT:
Mary Ann Ball; telephone: (202) 720–
4283, email address: maryann.ball@
usda.gov. Persons with disabilities who
require alternative means for
communication should contact the
USDA Target Center at (202) 720–2600
(voice only).
SUPPLEMENTARY INFORMATION:
Correction to Preamble
In the published final rule beginning
on page 45877, in the 3rd column, in the
Federal Register of Monday, September
3, 2019 (84 FR 45877–45895), correct
the ‘‘RIN’’ heading to read: RIN 0560–
AI45.
Correcting Amendment to Regulations
In addition, the final rule
inadvertently omitted the list of
counties for Nebraska in 7 CFR
1412.46(f). The listing of counties in
§ 1412.46(f) specifies which counties
have been determined to be regions
having a history of double-cropping
covered commodities or peanuts with
fruits, vegetables, or wild rice. The FSA
State committees establish the counties
as regions within their respective States.
During the development of the final
rule, the list of counties for Nebraska
was intended to be added as: Box Butte,
Dawes-North Sioux, Morrill, and
Sheridan. Instead, the final rule did not
list any counties in Nebraska. This
correction adds the list of Nebraska
counties.
List of Subjects in 7 CFR Part 1412
Cotton, Feed grains, Oilseeds,
Peanuts, Price support programs,
Reporting and recordkeeping
requirements, Rice, Soil conservation,
Wheat.
For the reasons discussed above, CCC
corrects 7 CFR part 1412 as follows:
PART 1412—AGRICULTURE RISK
COVERAGE, PRICE LOSS COVERAGE,
AND COTTON TRANSITION
ASSISTANCE PROGRAMS
■ 1. The authority citation for part 1412
continues to read as follows:
Authority: 7 U.S.C. 1508b, 7911–7912,
7916, 8702, 8711–8712, 8751–8752, and 15
U.S.C. 714b and 714c.
Subpart D—ARC and PLC Contract
Terms and Enrollment Provisions for
Covered Commodities
■ 2. In § 1412.46:
■ a. Revise paragraph (f)(28).
■ b. In paragraph (g), remove the cross-
reference ‘‘paragraph (h)’’ and add the
cross-reference ‘‘paragraph (i)’’ in its
place.
The revision reads as follows:
§ 1412.46 Planting flexibility.
* * * * *
(f) * * *
(28) Nebraska. Box Butte, Dawes-
North Sioux, Morrill, and Sheridan.
* * * * *
Robert Stephenson,
Executive Vice President, Commodity Credit
Corporation.
Richard Fordyce,
Administrator, Farm Service Agency.
[FR Doc. 2019–21604 Filed 10–7–19; 8:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 34
[Docket No. OCC–2019–0038]
RIN 1557–AE57
FEDERAL RESERVE SYSTEM
12 CFR Part 225
[Docket No. R–1639]
RIN 7100–AF30
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 323
RIN 3064–AE87
Real Estate Appraisals
AGENCY: Office of the Comptroller of the
Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Final rule.
SUMMARY: The OCC, Board, and FDIC
(collectively, the agencies) are adopting
a final rule to amend the agencies’
regulations requiring appraisals of real
estate for certain transactions. The final
rule increases the threshold level at or
below which appraisals are not required
for residential real estate transactions
from $250,000 to $400,000. The final
rule defines a residential real estate
transaction as a real estate-related
financial transaction that is secured by
a single 1-to-4 family residential
property. For residential real estate
transactions exempted from the
appraisal requirement as a result of the
revised threshold, regulated institutions
must obtain an evaluation of the real
property collateral that is consistent
with safe and sound banking practices.
The final rule makes a conforming
change to add to the list of exempt
transactions those transactions secured
by residential property in rural areas
that have been exempted from the
agencies’ appraisal requirement
pursuant to the Economic Growth,
Regulatory Relief, and Consumer
Protection Act. The final rule requires
evaluations for these exempt
transactions. The final rule also amends
the agencies’ appraisal regulations to
require regulated institutions to subject
appraisals for federally related
transactions to appropriate review for
compliance with the Uniform Standards
of Professional Appraisal Practice.
VerDate Sep<11>2014 18:16 Oct 07, 2019 Jkt 250001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\08OCR1.SGM 08OCR1
jbell on DSK3GLQ082PROD with RULES
DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Part 718
Commodity Credit Corporation
7 CFR Part 1412
RIN 0560–AI45
[Docket ID FSA–2019–0008]
Agriculture Risk Coverage and Price
Loss Coverage Programs; Correction
AGENCY: Commodity Credit Corporation
and Farm Service Agency, USDA.
ACTION: Final rule; correction and
correcting amendment.
SUMMARY: The Commodity Credit
Corporation (CCC) is correcting a final
rule that was published in the Federal
Register on September 3, 2019, which
revised the Agriculture Risk Coverage
(ARC) and Price Loss Coverage (PLC)
Programs. That document inadvertently
failed to include the relevant counties in
Nebraska that have been established as
having a history of double-cropping
covered commodities or peanuts with
fruits, vegetables, or wild rice and
incorrectly listed the previous
Regulation Identifier Number (RIN).
DATES: Effective: October 8, 2019.
FOR FURTHER INFORMATION CONTACT:
Mary Ann Ball; telephone: (202) 720–
4283, email address: maryann.ball@
usda.gov. Persons with disabilities who
require alternative means for
communication should contact the
USDA Target Center at (202) 720–2600
(voice only).
SUPPLEMENTARY INFORMATION:
Correction to Preamble
In the published final rule beginning
on page 45877, in the 3rd column, in the
Federal Register of Monday, September
3, 2019 (84 FR 45877–45895), correct
the ‘‘RIN’’ heading to read: RIN 0560–
AI45.
Correcting Amendment to Regulations
In addition, the final rule
inadvertently omitted the list of
counties for Nebraska in 7 CFR
1412.46(f). The listing of counties in
§ 1412.46(f) specifies which counties
have been determined to be regions
having a history of double-cropping
covered commodities or peanuts with
fruits, vegetables, or wild rice. The FSA
State committees establish the counties
as regions within their respective States.
During the development of the final
rule, the list of counties for Nebraska
was intended to be added as: Box Butte,
Dawes-North Sioux, Morrill, and
Sheridan. Instead, the final rule did not
list any counties in Nebraska. This
correction adds the list of Nebraska
counties.
List of Subjects in 7 CFR Part 1412
Cotton, Feed grains, Oilseeds,
Peanuts, Price support programs,
Reporting and recordkeeping
requirements, Rice, Soil conservation,
Wheat.
For the reasons discussed above, CCC
corrects 7 CFR part 1412 as follows:
PART 1412—AGRICULTURE RISK
COVERAGE, PRICE LOSS COVERAGE,
AND COTTON TRANSITION
ASSISTANCE PROGRAMS
■ 1. The authority citation for part 1412
continues to read as follows:
Authority: 7 U.S.C. 1508b, 7911–7912,
7916, 8702, 8711–8712, 8751–8752, and 15
U.S.C. 714b and 714c.
Subpart D—ARC and PLC Contract
Terms and Enrollment Provisions for
Covered Commodities
■ 2. In § 1412.46:
■ a. Revise paragraph (f)(28).
■ b. In paragraph (g), remove the cross-
reference ‘‘paragraph (h)’’ and add the
cross-reference ‘‘paragraph (i)’’ in its
place.
The revision reads as follows:
§ 1412.46 Planting flexibility.
* * * * *
(f) * * *
(28) Nebraska. Box Butte, Dawes-
North Sioux, Morrill, and Sheridan.
* * * * *
Robert Stephenson,
Executive Vice President, Commodity Credit
Corporation.
Richard Fordyce,
Administrator, Farm Service Agency.
[FR Doc. 2019–21604 Filed 10–7–19; 8:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 34
[Docket No. OCC–2019–0038]
RIN 1557–AE57
FEDERAL RESERVE SYSTEM
12 CFR Part 225
[Docket No. R–1639]
RIN 7100–AF30
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 323
RIN 3064–AE87
Real Estate Appraisals
AGENCY: Office of the Comptroller of the
Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Final rule.
SUMMARY: The OCC, Board, and FDIC
(collectively, the agencies) are adopting
a final rule to amend the agencies’
regulations requiring appraisals of real
estate for certain transactions. The final
rule increases the threshold level at or
below which appraisals are not required
for residential real estate transactions
from $250,000 to $400,000. The final
rule defines a residential real estate
transaction as a real estate-related
financial transaction that is secured by
a single 1-to-4 family residential
property. For residential real estate
transactions exempted from the
appraisal requirement as a result of the
revised threshold, regulated institutions
must obtain an evaluation of the real
property collateral that is consistent
with safe and sound banking practices.
The final rule makes a conforming
change to add to the list of exempt
transactions those transactions secured
by residential property in rural areas
that have been exempted from the
agencies’ appraisal requirement
pursuant to the Economic Growth,
Regulatory Relief, and Consumer
Protection Act. The final rule requires
evaluations for these exempt
transactions. The final rule also amends
the agencies’ appraisal regulations to
require regulated institutions to subject
appraisals for federally related
transactions to appropriate review for
compliance with the Uniform Standards
of Professional Appraisal Practice.
VerDate Sep<11>2014 18:16 Oct 07, 2019 Jkt 250001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\08OCR1.SGM 08OCR1
jbell on DSK3GLQ082PROD with RULES
53580 Federal Register / Vol. 84, No. 195 / Tuesday, October 8, 2019 / Rules and Regulations
1 83 FR 63110 (December 7, 2018).
2 12 U.S.C. 3331 et seq.
3 Public Law 115–174, 132 Stat. 1296, Title I,
section 103, codified at 12 U.S.C. 3356.
4 Public Law 111–203, 124 Stat. 1376, codified at
12 U.S.C. 3339(3).
5 The term ‘‘Federal financial institutions
regulatory agencies’’ means the Board, the FDIC, the
OCC, the National Credit Union Administration
(NCUA), and, formerly, the Office of Thrift
Supervision. 12 U.S.C. 3350(6).
6 These interests include those stemming from the
federal government’s roles as regulator and deposit
insurer of financial institutions that engage in real
estate lending and investment, guarantor or lender
on mortgage loans, and as a direct party in real-
estate related financial transactions. These federal
financial and public policy interests have been
described in predecessor legislation and
accompanying Congressional reports. See Real
Estate Appraisal Reform Act of 1988, H.R. Rep. No.
100–1001, pt. 1, at 19 (1988); 133 Cong. Rec. 33047–
33048 (1987).
7 12 U.S.C. 3331.
8 12 U.S.C. 3339.
9 The third minimum requirement was added to
Title XI by section 1473(e) of the Dodd-Frank Act,
as noted supra, and is being implemented by this
rulemaking. See infra, Section II.C.
10 12 U.S.C. 3350(5). A real estate-related
financial transaction is defined as any transaction
that involves: (i) The sale, lease, purchase,
investment in or exchange of real property,
including interests in property, or financing thereof;
(ii) the refinancing of real property or interests in
real property; and (iii) the use of real property or
interests in real property as security for a loan or
investment, including mortgage-backed securities.
11 12 U.S.C. 3350(4).
DATES: This final rule is effective on
October 9, 2019, except for the
amendments in instructions 4, 5, 9, 10,
14, and 15, which are effective on
January 1, 2020.
FOR FURTHER INFORMATION CONTACT:
OCC: G. Kevin Lawton, Appraiser
(Real Estate Specialist), (202) 649–7152;
Mitchell E. Plave, Special Counsel, (202)
649–5490; or Joanne Phillips, Counsel,
Chief Counsel’s Office (202) 649–5500;
Office of the Comptroller of the
Currency, 400 7th Street SW,
Washington, DC 20219. For persons
who are deaf or hearing impaired, TTY
users may contact (202) 649–5597.
Board: Anna Lee Hewko, Associate
Director, (202) 530–6260; Virginia
Gibbs, Manager, Policy Development
Section, (202) 452–2521; Carmen Holly,
Lead Financial Institution Policy
Analyst, (202) 973–6122, Division of
Supervision and Regulation; Laurie
Schaffer, Associate General Counsel,
(202) 452–2272; Matthew Suntag,
Counsel, (202) 452–3694; Derald Seid,
Counsel, (202) 452–2246; or Trevor
Feigleson, Senior Attorney, (202) 452–
3274, Legal Division, Board of
Governors of the Federal Reserve
System, 20th and C Streets NW,
Washington, DC 20551. For the hearing
impaired only, Telecommunications
Device for the Deaf (TDD) users may
contact (202) 263–4869.
FDIC: Beverlea S. Gardner, Senior
Examination Specialist, Division of Risk
Management and Supervision, (202)
898–3640, BGardner@FDIC.gov;
Benjamin K. Gibbs, Counsel, Legal
Division, (202) 898–6726; Mark Mellon,
Counsel, Legal Division, (202) 898–
3884; or Navid Choudhury, Legal
Division, (202) 898–6526, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429. For
the hearing impaired only, TDD users
may contact (202) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Background
B. Summary of Proposed Rule
C. Overview of Comments
II. Revisions to the Title XI Appraisal
Regulations
A. Threshold Increase for Residential Real
Estate Transactions
1. Definition of Residential Real Estate
Transaction
2. Threshold Level
3. Safety and Soundness Considerations for
Raising the Residential Real Estate
Threshold
4. Consumer Protection Considerations
5. Reducing Burden Associated With
Appraisals
B. Incorporation of the Rural Residential
Appraisal Exemption Under Section 103
of the Economic Growth, Regulatory
Relief, and Consumer Protection Act
C. Addition of Appraisal Review
Requirement
D. Conforming and Technical Amendments
III. Effective Date
IV. Regulatory Analysis
A. Regulatory Flexibility Act Analysis
B. Paperwork Reduction Act
C. Riegle Community Development and
Regulatory Improvement Act of 1994
D. Solicitation of Comments on Use of
Plain Language
E. OCC Unfunded Mandates Reform Act of
1995 Determination
Regulatory Text
I. Introduction
A. Background
In December 2018, the agencies
invited comment on a notice of
proposed rulemaking (proposal or
proposed rule) 1 that would amend the
agencies’ appraisal regulations
promulgated pursuant to Title XI of the
Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (Title XI).2
Specifically, the proposal would
increase the monetary threshold at or
below which financial institutions that
are subject to the agencies’ appraisal
regulations (regulated institutions)
would not be required to obtain
appraisals in connection with
residential real estate transactions
(residential real estate appraisal
threshold) from $250,000 to $400,000.
In addition, the proposal would add to
the list of exempt transactions those
transactions that are secured by
residential property in rural areas that
have been exempted from the agencies’
appraisal requirement pursuant to the
Economic Growth, Regulatory Relief,
and Consumer Protection Act
(EGRRCPA) 3 (rural residential appraisal
exemption). The proposal would require
regulated institutions to obtain
evaluations for transactions exempt
from the agencies’ appraisal
requirements due to the increase in the
residential real estate appraisal
threshold or the rural residential
appraisal exemption. Finally, the
proposal would amend the agencies’
appraisal regulations to require
regulated institutions to subject
appraisals for federally related
transactions to appropriate review for
compliance with the Uniform Standards
of Professional Appraisal Practice
(USPAP), as required under section
1473(e) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(the Dodd-Frank Act).4
Title XI directs each Federal financial
institutions regulatory agency 5 to
publish appraisal regulations for
federally related transactions within its
jurisdiction. The purpose of Title XI is
to protect federal financial and public
policy interests 6 in real estate-related
transactions by requiring that real estate
appraisals used in connection with
federally related transactions (Title XI
appraisals) be performed in accordance
with uniform standards by individuals
whose competency has been
demonstrated and whose professional
conduct will be subject to effective
supervision.7
Title XI directs the agencies to
prescribe appropriate standards for Title
XI appraisals under the agencies’
respective jurisdictions.8 At a
minimum, the statute provides that Title
XI appraisals must be: (1) performed in
accordance with USPAP; (2) written
appraisals, as defined by the statute; and
(3) subject to appropriate review for
compliance with USPAP.9
All federally related transactions must
have Title XI appraisals. Title XI defines
a federally related transaction as a real
estate-related financial transaction 10
that the agencies or a financial
institution regulated by the agencies
engages in or contracts for, that requires
the services of an appraiser under Title
XI and the interagency appraisal rules.11
The agencies have authority to
determine those real estate-related
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jbell on DSK3GLQ082PROD with RULES
1 83 FR 63110 (December 7, 2018).
2 12 U.S.C. 3331 et seq.
3 Public Law 115–174, 132 Stat. 1296, Title I,
section 103, codified at 12 U.S.C. 3356.
4 Public Law 111–203, 124 Stat. 1376, codified at
12 U.S.C. 3339(3).
5 The term ‘‘Federal financial institutions
regulatory agencies’’ means the Board, the FDIC, the
OCC, the National Credit Union Administration
(NCUA), and, formerly, the Office of Thrift
Supervision. 12 U.S.C. 3350(6).
6 These interests include those stemming from the
federal government’s roles as regulator and deposit
insurer of financial institutions that engage in real
estate lending and investment, guarantor or lender
on mortgage loans, and as a direct party in real-
estate related financial transactions. These federal
financial and public policy interests have been
described in predecessor legislation and
accompanying Congressional reports. See Real
Estate Appraisal Reform Act of 1988, H.R. Rep. No.
100–1001, pt. 1, at 19 (1988); 133 Cong. Rec. 33047–
33048 (1987).
7 12 U.S.C. 3331.
8 12 U.S.C. 3339.
9 The third minimum requirement was added to
Title XI by section 1473(e) of the Dodd-Frank Act,
as noted supra, and is being implemented by this
rulemaking. See infra, Section II.C.
10 12 U.S.C. 3350(5). A real estate-related
financial transaction is defined as any transaction
that involves: (i) The sale, lease, purchase,
investment in or exchange of real property,
including interests in property, or financing thereof;
(ii) the refinancing of real property or interests in
real property; and (iii) the use of real property or
interests in real property as security for a loan or
investment, including mortgage-backed securities.
11 12 U.S.C. 3350(4).
DATES: This final rule is effective on
October 9, 2019, except for the
amendments in instructions 4, 5, 9, 10,
14, and 15, which are effective on
January 1, 2020.
FOR FURTHER INFORMATION CONTACT:
OCC: G. Kevin Lawton, Appraiser
(Real Estate Specialist), (202) 649–7152;
Mitchell E. Plave, Special Counsel, (202)
649–5490; or Joanne Phillips, Counsel,
Chief Counsel’s Office (202) 649–5500;
Office of the Comptroller of the
Currency, 400 7th Street SW,
Washington, DC 20219. For persons
who are deaf or hearing impaired, TTY
users may contact (202) 649–5597.
Board: Anna Lee Hewko, Associate
Director, (202) 530–6260; Virginia
Gibbs, Manager, Policy Development
Section, (202) 452–2521; Carmen Holly,
Lead Financial Institution Policy
Analyst, (202) 973–6122, Division of
Supervision and Regulation; Laurie
Schaffer, Associate General Counsel,
(202) 452–2272; Matthew Suntag,
Counsel, (202) 452–3694; Derald Seid,
Counsel, (202) 452–2246; or Trevor
Feigleson, Senior Attorney, (202) 452–
3274, Legal Division, Board of
Governors of the Federal Reserve
System, 20th and C Streets NW,
Washington, DC 20551. For the hearing
impaired only, Telecommunications
Device for the Deaf (TDD) users may
contact (202) 263–4869.
FDIC: Beverlea S. Gardner, Senior
Examination Specialist, Division of Risk
Management and Supervision, (202)
898–3640, BGardner@FDIC.gov;
Benjamin K. Gibbs, Counsel, Legal
Division, (202) 898–6726; Mark Mellon,
Counsel, Legal Division, (202) 898–
3884; or Navid Choudhury, Legal
Division, (202) 898–6526, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429. For
the hearing impaired only, TDD users
may contact (202) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Background
B. Summary of Proposed Rule
C. Overview of Comments
II. Revisions to the Title XI Appraisal
Regulations
A. Threshold Increase for Residential Real
Estate Transactions
1. Definition of Residential Real Estate
Transaction
2. Threshold Level
3. Safety and Soundness Considerations for
Raising the Residential Real Estate
Threshold
4. Consumer Protection Considerations
5. Reducing Burden Associated With
Appraisals
B. Incorporation of the Rural Residential
Appraisal Exemption Under Section 103
of the Economic Growth, Regulatory
Relief, and Consumer Protection Act
C. Addition of Appraisal Review
Requirement
D. Conforming and Technical Amendments
III. Effective Date
IV. Regulatory Analysis
A. Regulatory Flexibility Act Analysis
B. Paperwork Reduction Act
C. Riegle Community Development and
Regulatory Improvement Act of 1994
D. Solicitation of Comments on Use of
Plain Language
E. OCC Unfunded Mandates Reform Act of
1995 Determination
Regulatory Text
I. Introduction
A. Background
In December 2018, the agencies
invited comment on a notice of
proposed rulemaking (proposal or
proposed rule) 1 that would amend the
agencies’ appraisal regulations
promulgated pursuant to Title XI of the
Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (Title XI).2
Specifically, the proposal would
increase the monetary threshold at or
below which financial institutions that
are subject to the agencies’ appraisal
regulations (regulated institutions)
would not be required to obtain
appraisals in connection with
residential real estate transactions
(residential real estate appraisal
threshold) from $250,000 to $400,000.
In addition, the proposal would add to
the list of exempt transactions those
transactions that are secured by
residential property in rural areas that
have been exempted from the agencies’
appraisal requirement pursuant to the
Economic Growth, Regulatory Relief,
and Consumer Protection Act
(EGRRCPA) 3 (rural residential appraisal
exemption). The proposal would require
regulated institutions to obtain
evaluations for transactions exempt
from the agencies’ appraisal
requirements due to the increase in the
residential real estate appraisal
threshold or the rural residential
appraisal exemption. Finally, the
proposal would amend the agencies’
appraisal regulations to require
regulated institutions to subject
appraisals for federally related
transactions to appropriate review for
compliance with the Uniform Standards
of Professional Appraisal Practice
(USPAP), as required under section
1473(e) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(the Dodd-Frank Act).4
Title XI directs each Federal financial
institutions regulatory agency 5 to
publish appraisal regulations for
federally related transactions within its
jurisdiction. The purpose of Title XI is
to protect federal financial and public
policy interests 6 in real estate-related
transactions by requiring that real estate
appraisals used in connection with
federally related transactions (Title XI
appraisals) be performed in accordance
with uniform standards by individuals
whose competency has been
demonstrated and whose professional
conduct will be subject to effective
supervision.7
Title XI directs the agencies to
prescribe appropriate standards for Title
XI appraisals under the agencies’
respective jurisdictions.8 At a
minimum, the statute provides that Title
XI appraisals must be: (1) performed in
accordance with USPAP; (2) written
appraisals, as defined by the statute; and
(3) subject to appropriate review for
compliance with USPAP.9
All federally related transactions must
have Title XI appraisals. Title XI defines
a federally related transaction as a real
estate-related financial transaction 10
that the agencies or a financial
institution regulated by the agencies
engages in or contracts for, that requires
the services of an appraiser under Title
XI and the interagency appraisal rules.11
The agencies have authority to
determine those real estate-related
VerDate Sep<11>2014 18:16 Oct 07, 2019 Jkt 250001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\08OCR1.SGM 08OCR1
jbell on DSK3GLQ082PROD with RULES