§3353 Appraisal Management Company Minimum Requirements

Summary

Six federal financial regulators (the Federal Reserve Board, the Comptroller of the Currency, the FDIC, the NCUA, the FHFA, and the CFPB) must write a set of basic rules that States use when registering appraisal management companies. The rules must make sure each company is registered and overseen by the State appraiser licensing agency where it works, use only licensed or certified appraisers for federally related transactions, follow the Uniform Standards of Professional Appraisal Practice, and keep appraisals independent and free from improper pressure. States may add extra rules if they want. The rules also apply to appraisal companies owned by banks or other federally regulated institutions, though those companies do not have to register with a State if a federal agency already oversees them. A State cannot register a company if any owner ever had an appraiser license denied, revoked, cancelled, surrendered in lieu of revocation, or similar. Anyone owning more than 10 percent must pass a background check and be found of good moral character by the State licensing agency. The federal regulators must set reporting rules to the Appraisal Subcommittee. Companies have 36 months after the final rules are set to register or be under federal oversight, and the Appraisal Subcommittee can extend that deadline by 12 months with Council approval if a State is making strong progress.