§3351 — Title 12 Banks and Banking | U.S. Code

Summary

States must temporarily accept an appraiser’s license from another State when the job is part of a transaction tied to a federal program, the appraiser is working there only for a short time, and the appraiser registers with the State’s licensing agency. States cannot charge unfair fees or add heavy requirements for that temporary work, as decided by the Appraisal Subcommittee. A federally related transaction cannot be done by a licensed appraiser unless the appraiser’s State has a policy to give reciprocal licenses to out-of-state appraisers when the other State’s licensing program follows this law and the appraiser already holds a valid certificate from a State with standards that meet or beat the receiving State’s standards. Federal regulators may provide funds to the Financial Institutions Examination Council to help it carry out its duties. Federal agencies, Fannie Mae, Freddie Mac, and the Resolution Trust Corporation may require extra qualifications beyond State licensing, such as education, experience, sample appraisals, and client references. Being a member of a national appraisal group can count, but not being a member cannot be the only reason to reject someone. Companies may offer appraisal services if the work is done by licensed or certified people. Unlicensed helpers may assist only under direct supervision, and a licensed or certified person must sign the final report. The Appraisal Subcommittee must study whether appraisers have enough sales and financing data and whether the rules should apply to personal property appraisers. It must report the sales/data study to Congress within 12 months after August 9, 1989, and the personal-property study within 18 months after August 9, 1989. The Subcommittee must watch State licensing agencies to make sure they protect appraiser independence and must encourage States to accept courses approved by the Appraiser Qualification Board’s Course Approval Program. If, 6 months after July 21, 2010, no national hotline exists for complaints about appraisal independence or standards, the Subcommittee must set up a toll-free phone number and email, refer complaints to the right authorities, and follow up on referrals to learn how they were resolved.

Title 12, §3351

Banks and Banking — Source: USLM XML via OLRC

(a)(1)A State appraiser certifying or licensing agency shall recognize on a temporary basis the certification or license of an appraiser issued by another State if—

(A)the property to be appraised is part of a federally related transaction,

(B)the appraiser’s business is of a temporary nature, and

(C)the appraiser registers with the appraiser certifying or licensing agency in the State of temporary practice.

(2)A State appraiser certifying or licensing agency shall not impose excessive fees or burdensome requirements, as determined by the Appraisal Subcommittee, for temporary practice under this subsection.

(b)Notwithstanding any other provisions of this chapter, a federally related transaction shall not be appraised by a certified or licensed appraiser unless the State appraiser certifying or licensing agency of the State certifying or licensing such appraiser has in place a policy of issuing a reciprocal certification or license for an individual from another State when—

(1)the appraiser licensing and certification program of such other State is in compliance with the provisions of this chapter; and

(2)the appraiser holds a valid certification from a State whose requirements for certification or licensing meet or exceed the licensure standards established by the State where an individual seeks appraisal licensure.

(c)Funds available to the Federal financial institutions regulatory agencies may be made available to the Financial Institutions Examination Council to support the Council’s functions under this chapter.

(d)Criteria established by the Federal financial institutions regulatory agencies, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Resolution Trust Corporation for appraiser qualifications in addition to State certification or licensing may include education achieved, experience, sample appraisals, and references from prior clients. Membership in a nationally recognized professional appraisal organization may be a criteria considered, though lack of membership therein shall not be the sole bar against consideration for an assignment under these criteria.

(e)A corporation, partnership, or other business entity may provide appraisal services in connection with federally related transactions if such appraisal is prepared by individuals certified or licensed in accordance with the requirements of this chapter. An individual who is not a State certified or licensed appraiser may assist in the preparation of an appraisal if—

(1)the assistant is under the direct supervision of a licensed or certified individual; and

(2)the final appraisal document is approved and signed by an individual who is certified or licensed.

(f)(1)The Appraisal Subcommittee shall—

(A)conduct a study to determine whether real estate sales and financing information and data that is available to real estate appraisers in the States is sufficient to permit appraisers to properly estimate the values of properties in connection with federally related transactions; and

(B)study the feasibility and desirability of extending the provisions of this chapter to the function of personal property appraising and to personal property appraisers in connection with Federal financial and public policy interests.

(2)The Appraisal Subcommittee shall—

(A)report its findings to the Congress with respect to the study described in paragraph (1)(A) no later than 12 months after August 9, 1989, and

(B)report its findings with respect to the study described in paragraph (1)(B) to Congress not later than 18 months after August 9, 1989.

(g)The Appraisal Subcommittee shall monitor each State appraiser certifying and licensing agency for the purpose of determining whether such agency’s policies, practices, and procedures are consistent with the purposes of maintaining appraiser independence and whether such State has adopted and maintains effective laws, regulations, and policies aimed at maintaining appraiser independence.

(h)The Appraisal Subcommittee shall encourage the States to accept courses approved by the Appraiser Qualification Board’s Course Approval Program.

(i)If, 6 months after July 21, 2010, the Appraisal Subcommittee determines that no national hotline exists to receive complaints of non-compliance with appraisal independence standards and Uniform Standards of Professional Appraisal Practice, including complaints from appraisers, individuals, or other entities concerning the improper influencing or attempted improper influencing of appraisers or the appraisal process, the Appraisal Subcommittee shall establish and operate such a national hotline, which shall include a toll-free telephone number and an email address. If the Appraisal Subcommittee operates such a national hotline, the Appraisal Subcommittee shall refer complaints for further action to appropriate governmental bodies, including a State appraiser certifying and licensing agency, a financial institution regulator, or other appropriate legal authorities. For complaints referred to State appraiser certifying and licensing agencies or to Federal regulators, the Appraisal Subcommittee shall have the authority to follow up such complaint referrals in order to determine the status of the resolution of the complaint.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsec. (a)(1)(A) to (C). Pub. L. 111–203, § 1473(t)(4)(A), realigned margins. Subsec. (b). Pub. L. 111–203, § 1473(l), amended subsec. (b) generally. Prior to amendment, text read as follows: “The Appraisal Subcommittee shall encourage the States to develop reciprocity agreements that readily authorize appraisers who are licensed or certified in one State (and who are in good standing with their State appraiser certifying or licensing agency) to perform appraisals in other States.” Subsec. (c). Pub. L. 111–203, § 1473(t)(4)(B), substituted “Financial Institutions Examination Council” for “Federal Financial Institutions Examination Council” and “the Council’s functions” for “the council’s functions”. Subsec. (d). Pub. L. 111–203, § 1473(m), substituted “may include education achieved, experience, sample appraisals, and references from prior clients. Membership in a nationally recognized professional appraisal organization may be a criteria considered, though lack of membership therein shall not be the sole bar against consideration for an assignment under these criteria.” for “shall not exclude a certified or licensed appraiser for consideration for an assignment solely by virtue of membership or lack of membership in any particular appraisal organization.” Subsec. (g). Pub. L. 111–203, § 1473(n), added subsec. (g). Subsec. (h). Pub. L. 111–203, § 1473(o), added subsec. (h). Subsec. (i). Pub. L. 111–203, § 1473(p), added subsec. (i). 1994—Subsec. (a). Pub. L. 103–325, § 315(3), redesignated existing provisions as par. (1), inserted heading, redesignated former pars. (1) to (3) as subpars. (A) to (C) of par. (1), and added par. (2). Subsecs. (b) to (f). Pub. L. 103–325, § 315(1), (2), added subsec. (b) and redesignated former subsecs. (b) to (e) as (c) to (f), respectively.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the date on which final

Regulations

implementing that amendment take effect, or on the date that is 18 months after the designated transfer date if such

Regulations

have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as a note under section 1601 of Title 15, Commerce and Trade.

§3351 Miscellaneous provisions

Summary

Title 12, §3351

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Regulations

Regulations

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