Title 12, Banks and BankingRelease 119-110

§3349 Violations in Obtaining and Performing Appraisals in Federally Related Transactions

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

Last updated Sep 22, 2026|Official source

Summary

Financial institutions may not pay for, accept, or arrange appraisals done by people they know are not State-certified or licensed for federally related transactions, unless the Appraisal Subcommittee allows a waiver under section 3348(b). Fannie Mae, Freddie Mac, and Resolution Trust Corporation may not knowingly hire unlicensed appraisers for real-estate transactions in section 3350(5). Violations can bring penalties under section 1818(i)(2) or section 1786(k)(2). Enforcement is by administrative proceeding by a federal regulator under subchapter II of chapter 5 of title 5.

Full Legal Text

Title 12, §3349

Banks and Banking, Source: USLM XML via OLRC

(a)Violations

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)

(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)Penalties

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)Proceeding

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

Sep 22, 2026

Release point: 119-110