Title 12 — Banks and BankingRelease 119-73

§3349 Violations in obtaining and performing appraisals in federally related transactions

Title 12 › Chapter CHAPTER 34A— - APPRAISAL SUBCOMMITTEE OF FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL › § 3349

Last updated Apr 6, 2026|Official source

Summary

Banks and other financial institutions must not pay or give anything to get an appraisal from someone they know is not a State certified or licensed appraiser for a federally related transaction, unless the Appraisal Subcommittee grants a waiver under section 3348(b). The Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Resolution Trust Corporation must not knowingly hire unlicensed appraisers for real-estate financial transactions defined in section 3350(5). If a bank breaks the rule it can face civil penalties under section 1818(i)(2) or section 1786(k)(2). Enforcement is done by federal financial regulators in administrative proceedings under subchapter II of chapter 5 of title 5.

Full Legal Text

Title 12, §3349

Banks and Banking — Source: USLM XML via OLRC

(a)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)A financial institution that violates subsection (a)(1) shall be subject to civil penalties under section 1818(i)(2) of this title or section 1786(k)(2) of this title, as appropriate.

(c)A proceeding with respect to a violation of this section shall be an administrative proceeding which may be conducted by a Federal financial institutions regulatory agency in accordance with the procedures set forth in subchapter II of chapter 5 of title 5.

Reference

Citations & Metadata

Citation

12 U.S.C. § 3349

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73