§3347 Monitoring of State Appraiser Certifying and Licensing Agencies

Summary

The Appraisal Subcommittee must watch each State agency that licenses or certifies appraisers. It checks that the State has the right policies, funding, staff, and procedures; that complaints are handled and investigated in a timely way; that appraisers and appraisal management companies are disciplined when needed; that the overall program works; and that complaints and penalties are reported quickly to the national registries. The Subcommittee can remove a State-licensed or -certified appraiser or a registered appraisal management company from a national registry for up to 90 days while the State takes action. It can also impose sanctions, interim actions, or suspensions on a State agency if the agency’s regulatory program is not effective. In judging effectiveness, the Subcommittee will look at licensing and certification, appraisal management company registration, temporary licenses, complaint intake and tracking, investigations, and enforcement. Federal financial regulators, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Resolution Trust Corporation must accept State appraiser certifications and licenses unless the Appraisal Subcommittee issues a written finding that the State fails to enforce the rules, lacks the authority or funding to do its job, or makes decisions that do not carry out the chapter’s purposes. Before refusing to accept a State’s appraisers, the Subcommittee must give written notice, allow the State to respond or fix the problems, use written procedures for these actions, and its decisions can be reviewed by a court.