---
kind: "range"
citation: "12 U.S.C. §§ 3310–3351"
title: "12"
from: "3310"
to: "3351"
count: 23
release: "119-102"
url: "https://uscodex.org/usc/12/3310..3351"
---

# §3310. Establishment of Appraisal Subcommittee


There shall be within the [Council](/usc/12/3302.md?p=2) a subcommittee to be known as the “Appraisal Subcommittee”, which shall consist of the designees of the heads of the [Federal financial institutions regulatory agencies](/usc/12/3302.md?p=1), the [Bureau](/usc/12/5481.md?p=2) of [Consumer](/usc/12/5481.md?p=4) Financial Protection, the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture, the Department of Housing and Urban Development, and the Federal Housing Finance [Agency](/usc/12/1422.md?p=12). Each such designee shall be a [person](/usc/12/5481.md?p=19) who has demonstrated knowledge and competence concerning the appraisal profession. At all times at least one [member](/usc/12/1426a.md?p=g-1) of the Appraisal Subcommittee shall have demonstrated knowledge and competence through licensure, certification, or professional designation within the appraisal profession.


# §3311. Required review of regulations

- (a) **In general—** Not less frequently than once every 10 years, the [Council](/usc/12/3302.md?p=2) and each [appropriate Federal banking agency](/usc/12/24a.md?p=g-2) represented on the [Council](/usc/12/3302.md?p=2) shall conduct a review of all regulations prescribed by the [Council](/usc/12/3302.md?p=2) or by any such [appropriate Federal banking agency](/usc/12/24a.md?p=g-2), respectively, in order to identify outdated or otherwise unnecessary regulatory requirements imposed on [insured depository institutions](/usc/12/24a.md?p=g-2).
- (b) **Process—** In conducting the review under [subsection (a)](#a), the [Council](/usc/12/3302.md?p=2) or the [appropriate Federal banking agency](/usc/12/24a.md?p=g-2) shall—
  - (1) categorize the regulations described in [subsection (a)](#a) by type (such as [consumer](/usc/12/5481.md?p=4) regulations, safety and soundness regulations, or such other designations as determined by the [Council](/usc/12/3302.md?p=2), or the [appropriate Federal banking agency](/usc/12/24a.md?p=g-2)); and
  - (2) at regular intervals, provide notice and solicit public comment on a particular category or categories of regulations, requesting commentators to identify areas of the regulations that are outdated, unnecessary, or unduly burdensome.
- (c) **Complete review—** The [Council](/usc/12/3302.md?p=2) or the [appropriate Federal banking agency](/usc/12/24a.md?p=g-2) shall ensure that the notice and comment period described in [subsection (b)(2)](#b-2) is conducted with respect to all regulations described in [subsection (a)](#a) not less frequently than once every 10 years.
- (d) **Regulatory response—** The [Council](/usc/12/3302.md?p=2) or the [appropriate Federal banking agency](/usc/12/24a.md?p=g-2) shall—
  - (1) publish in the Federal Register a summary of the comments received under this section, identifying significant issues raised and providing comment on such issues; and
  - (2) eliminate unnecessary regulations to the extent that such action is appropriate.
- (e) **Report to Congress—** Not later than 30 days after carrying out [subsection (d)(1)](#d-1), the [Council](/usc/12/3302.md?p=2) shall submit to the Congress a report, which shall include—
  - (1) a summary of any significant issues raised by public comments received by the [Council](/usc/12/3302.md?p=2) and the [appropriate Federal banking agencies](/usc/12/24a.md?p=g-2) under this section and the relative merits of such issues; and
  - (2) an analysis of whether the [appropriate Federal banking agency](/usc/12/24a.md?p=g-2) involved is able to address the regulatory burdens associated with such issues by regulation, or whether such burdens must be addressed by legislative action.

# §3331. Purpose


The purpose of this chapter is to provide that Federal financial and public policy interests in [real estate](/usc/12/1715z–20.md?p=b-2) related transactions will be protected by requiring that [real estate](/usc/12/1715z–20.md?p=b-2) appraisals utilized in connection with [federally related transactions](/usc/12/3350.md?p=4) are performed in writing, in accordance with uniform standards, by individuals whose competency has been demonstrated and whose professional conduct will be subject to effective supervision.


# §3332. Functions of Appraisal Subcommittee

- (a) **In general—** The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall—
  - (1) monitor the requirements established by [States](/usc/12/1707.md?p=d)—
    - (A) for the certification and licensing of individuals who are qualified to perform appraisals in connection with [federally related transactions](/usc/12/3350.md?p=4), [including](/usc/12/25b.md?p=a-3) a code of professional responsibility; and
    - (B) for the registration and supervision of the operations and activities of an [appraisal management company](/usc/12/3350.md?p=11);
  - (2) monitor the requirements established by the [Federal financial institutions regulatory agencies](/usc/12/3350.md?p=6) with respect to—
    - (A) appraisal standards for [federally related transactions](/usc/12/3350.md?p=4) under their jurisdiction, and
    - (B) determinations as to which [federally related transactions](/usc/12/3350.md?p=4) under their jurisdiction require the services of a [State](/usc/12/1707.md?p=d) certified appraiser and which require the services of a [State](/usc/12/1707.md?p=d) licensed appraiser;
  - (3) maintain a national registry of [State](/usc/12/1707.md?p=d) certified and licensed appraisers and [State credentialed trainee appraisers](/usc/12/3350.md?p=12) who are eligible to perform appraisals in [federally related transactions](/usc/12/3350.md?p=4);
  - (4) transmit an annual report to the Congress not later than June 15 of each year that describes the manner in which each function assigned to the [Appraisal Subcommittee](/usc/12/3350.md?p=2) has been carried out during the preceding year, detailing the activities of the [Appraisal Subcommittee](/usc/12/3350.md?p=2), [including](/usc/12/25b.md?p=a-3) the results of all audits of [State](/usc/12/1707.md?p=d) appraiser regulatory [agencies](/usc/12/1422.md?p=12), and provides an accounting of disapproved actions and warnings taken in the previous year, [including](/usc/12/25b.md?p=a-3) a description of the conditions causing the disapproval and actions taken to achieve compliance; and
  - (5) maintain a national registry of [appraisal management companies](/usc/12/3350.md?p=11) that either are registered with and subject to supervision of a [State appraiser certifying and licensing agency](/usc/12/3350.md?p=1) or are operating [subsidiaries](/usc/12/24a.md?p=g-1) of a Federally [regulated financial institution](/usc/12/2902.md?p=2).
- (b) **Monitoring and reviewing foundation—** The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall monitor and review the practices, procedures, activities, and organizational structure of the [Appraisal Foundation](/usc/12/3350.md?p=9).

# §3333. Chairperson of Appraisal Subcommittee; term of Chairperson; meetings

- (a) **Chairperson—** The [Council](/usc/12/3350.md?p=3) shall select the [Chairperson](/usc/12/3350.md?p=8) of the [subcommittee](/usc/12/3350.md?p=2). The term of the [Chairperson](/usc/12/3350.md?p=8) shall be 2 years.
- (b) **Meetings; quorum; voting—** The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall meet in public session after notice in the Federal Register, but may close certain portions of these meetings related to personnel and review of preliminary [State](/usc/12/1707.md?p=d) audit reports, at the call of the [Chairperson](/usc/12/3350.md?p=8) or a majority of its [members](/usc/12/1426a.md?p=g-1) when there is business to be conducted. A majority of [members](/usc/12/1426a.md?p=g-1) of the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall constitute a quorum but 2 or more [members](/usc/12/1426a.md?p=g-1) may hold hearings. Decisions of the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall be made by the vote of a majority of its [members](/usc/12/1426a.md?p=g-1). The subject matter discussed in any closed or executive session shall be described in the Federal Register notice of the meeting.

# §3334. Officers and staff


The [Chairperson](/usc/12/3350.md?p=8) of the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall appoint such officers and staff as may be necessary to carry out the functions of this chapter consistent with the appointment and compensation practices of the [Council](/usc/12/3350.md?p=3).


# §3335. Powers of Appraisal Subcommittee


The [Appraisal Subcommittee](/usc/12/3350.md?p=2) may, for the purpose of carrying out this chapter, establish advisory committees, hold hearings prescribe[^1] regulations in accordance with [chapter 5](/usc/5/chptI-ch5.md) of title 5 (commonly referred to as the Administrative Procedures Act) after notice and opportunity for comment,,[^2] sit and act at times and places, take testimony, receive evidence, provide information, and perform research, as the [Appraisal Subcommittee](/usc/12/3350.md?p=2) considers appropriate. Any regulations prescribed by the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall (unless otherwise provided in this chapter) be limited to the following functions: temporary practice, national registry, information sharing, and enforcement. For purposes of prescribing regulations, the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall establish an advisory committee of industry participants, [including](/usc/12/25b.md?p=a-3) appraisers, lenders, [consumer](/usc/12/5481.md?p=4) advocates, [real estate](/usc/12/1715z–20.md?p=b-2) agents, and government [agencies](/usc/12/1422.md?p=12), and hold meetings as necessary to support the development of regulations.


# §3336. Procedures for establishing appraisal standards and requiring use of certified and licensed appraisers


Appraisal standards and requirements for using [State](/usc/12/1707.md?p=d) certified and licensed appraisers in [federally related transactions](/usc/12/3350.md?p=4) pursuant to this chapter shall be prescribed in accordance with procedures set forth in [section 553 of title 5](/usc/5/553.md), [including](/usc/12/25b.md?p=a-3) the publication of notice and receipt of written comments or the holding of public hearings with respect to any standards or requirements proposed to be established.


# §3337. Startup funding

- (a) **In general—** For purposes of this chapter, the Secretary of the Treasury shall pay to the [Appraisal Subcommittee](/usc/12/3350.md?p=2) a one-time payment of $5,000,000 on August 9, 1989. Thereafter, expenses of the [subcommittee](/usc/12/3350.md?p=2) shall be funded through the collection of registry fees from certain certified and licensed appraisers pursuant to [section 3338 of this title](/usc/12/3338.md) or, if required, pursuant to [section 3351(b)](/usc/12/3351.md?p=b)[^1] of this title.
- (b) **Additional funds—** Except as provided in [section 3351(b)](/usc/12/3351.md?p=b)[^1] of this title, [funds](/usc/12/4702.md?p=10) in addition to the [funds](/usc/12/4702.md?p=10) provided under [subsection (a)](#a) may be made available to the [Appraisal Subcommittee](/usc/12/3350.md?p=2) only if authorized and appropriated by law.
- (c) **Repayment of Treasury loan—** Not later than September 30, 1998, the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall repay to the Secretary of the Treasury the unpaid portion of the $5,000,000 paid to the [Appraisal Subcommittee](/usc/12/3350.md?p=2) pursuant to this section.

# §3338. Roster of State, certified, licensed, and credentialed trainee appraisers; authority to collect and transmit fees

- (a) **In general—** Each [State](/usc/12/1707.md?p=d) with an appraiser certifying and licensing [agency](/usc/12/1422.md?p=12) whose certifications and licenses comply with this chapter, shall—
  - (1) transmit to the [Appraisal Subcommittee](/usc/12/3350.md?p=2), no less than annually, a roster listing individuals who have received a [State](/usc/12/1707.md?p=d) certification or license in accordance with this chapter, and in the case of a [State](/usc/12/1707.md?p=d) with a supervisory or trainee program, a roster listing individuals who have received a [State](/usc/12/1707.md?p=d) trainee credential;
  - (2) transmit reports on the issuance and renewal of licenses, certifications, credentials, sanctions, and disciplinary actions, [including](/usc/12/25b.md?p=a-3) license, credential, and certification revocations, on a timely basis to the national registry of the [Appraisal Subcommittee](/usc/12/3350.md?p=2);
  - (3) transmit reports on a timely basis of supervisory activities involving [appraisal management companies](/usc/12/3350.md?p=11) or other third-party providers of appraisals and appraisal management services, [including](/usc/12/25b.md?p=a-3) investigations initiated and disciplinary actions taken; and
  - (4) collect—
    - (A) from such individuals who perform or seek to perform appraisals in [federally related transactions](/usc/12/3350.md?p=4), an annual registry fee of not more than $40, such fees to be transmitted by the [State](/usc/12/1707.md?p=d) [agencies](/usc/12/1422.md?p=12) to the [Council](/usc/12/3350.md?p=3) on an annual basis; and
    - (B) from an [appraisal management company](/usc/12/3350.md?p=11) that either has registered with a [State appraiser certifying and licensing agency](/usc/12/3350.md?p=1) in accordance with this chapter or operates as a [subsidiary](/usc/12/24a.md?p=g-1) of a federally [regulated financial institution](/usc/12/2902.md?p=2), an annual registry fee of—
      - (i) in the case of such a [company](/usc/12/24a.md?p=g-1) that has been in existence for more than a year, $25 multiplied by the number of appraisers working for or contracting with such [company](/usc/12/24a.md?p=g-1) in such [State](/usc/12/1707.md?p=d) during the previous year, but where such $25 amount may be adjusted, up to a maximum of $50, at the discretion of the [Appraisal Subcommittee](/usc/12/3350.md?p=2), if necessary to carry out the [Subcommittee](/usc/12/3350.md?p=2)’s functions under this chapter; and
      - (ii) in the case of such a [company](/usc/12/24a.md?p=g-1) that has not been in existence for more than a year, $25 multiplied by an appropriate number to be determined by the [Appraisal Subcommittee](/usc/12/3350.md?p=2), and where such number will be used for determining the fee of all such [companies](/usc/12/24a.md?p=g-1) that were not in existence for more than a year, but where such $25 amount may be adjusted, up to a maximum of $50, at the discretion of the [Appraisal Subcommittee](/usc/12/3350.md?p=2), if necessary to carry out the [Subcommittee](/usc/12/3350.md?p=2)’s functions under this chapter.

  Subject to the approval of the [Council](/usc/12/3350.md?p=3), the [Appraisal Subcommittee](/usc/12/3350.md?p=2) may adjust the dollar amount of registry fees under [paragraph (4)(A)](#a-4-A), up to a maximum of $80 per annum, as necessary to carry out its functions under this chapter. The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall consider at least once every 5 years whether to adjust the dollar amount of the registry fees to account for inflation. In implementing any change in registry fees, the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall provide flexibility to the [States](/usc/12/1707.md?p=d) for multi-year certifications and licenses already in place, as well as a transition period to implement the changes in registry fees. In establishing the amount of the annual registry fee for an [appraisal management company](/usc/12/3350.md?p=11), the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall have the discretion to impose a minimum annual registry fee for an [appraisal management company](/usc/12/3350.md?p=11) to protect against the under reporting of the number of appraisers working for or contracted by the [appraisal management company](/usc/12/3350.md?p=11). Subject to the approval of the [Council](/usc/12/3350.md?p=3), the [Appraisal Subcommittee](/usc/12/3350.md?p=2) may adjust fees established under clause (i) or (ii) to carry out its functions under this Act.

- (b) **Use of amounts appropriated or collected—** Amounts appropriated for or collected by the [Appraisal Subcommittee](/usc/12/3350.md?p=2) under this section shall be used—
  - (1) to maintain a registry of individuals who are qualified and eligible to perform appraisals in connection with [federally related transactions](/usc/12/3350.md?p=4);
  - (2) to support its activities under this chapter;
  - (3) to reimburse the general [fund](/usc/12/4702.md?p=10) of the Treasury for amounts appropriated to and expended by the [Appraisal Subcommittee](/usc/12/3350.md?p=2) during the 24-month startup period following August 9, 1989;
  - (4) to make grants in such amounts as it deems appropriate to the [Appraisal Foundation](/usc/12/3350.md?p=9), to help defray those costs of the [foundation](/usc/12/3350.md?p=9) relating to the activities of its Appraisal Standards and Appraiser Qualification [Boards](/usc/12/221a.md?p=a);
  - (5) to make grants to [State appraiser certifying and licensing agencies](/usc/12/3350.md?p=1), in accordance with policies to be developed by the [Appraisal Subcommittee](/usc/12/3350.md?p=2), to support the efforts of such [agencies](/usc/12/1422.md?p=12) to comply with this chapter, [including](/usc/12/25b.md?p=a-3)—
    - (A) the complaint process, complaint investigations, and appraiser enforcement activities of such [agencies](/usc/12/1422.md?p=12); and
    - (B) the submission of data on [State](/usc/12/1707.md?p=d) licensed and certified appraisers and [appraisal management companies](/usc/12/3350.md?p=11) to the National appraisal registry, [including](/usc/12/25b.md?p=a-3) information affirming that the appraiser or [appraisal management company](/usc/12/3350.md?p=11) meets the required qualification criteria and formal and informal disciplinary actions;
  - (6) to report to all [State appraiser certifying and licensing agencies](/usc/12/3350.md?p=1) when a license or certification is surrendered, revoked, or suspended; and
  - (7) to make grants to [State appraiser certifying and licensing agencies](/usc/12/3350.md?p=1) and post-secondary institutions, [including](/usc/12/25b.md?p=a-3) trade and polytechnic schools, to support the carrying out of education and training activities or other activities related to addressing appraiser industry workforce needs, [including](/usc/12/25b.md?p=a-3) recruiting and retaining workforce talent, such as through scholarship assistance and career pipeline development, and such [agencies](/usc/12/1422.md?p=12) shall report on the use of [funds](/usc/12/4702.md?p=10) and outcomes.

# §3339. Functions of Federal financial institutions regulatory agencies relating to appraisal standards


Each Federal [financial institutions](/usc/12/1715k.md?p=h-1-C) regulatory [agency](/usc/12/1422.md?p=12) and the Resolution Trust [Corporation](/usc/12/2277a.md?p=2) shall prescribe appropriate standards for the performance of [real estate](/usc/12/1715z–20.md?p=b-2) appraisals in connection with [federally related transactions](/usc/12/3350.md?p=4) under the jurisdiction of each such [agency](/usc/12/1422.md?p=12) or instrumentality. These rules shall require, at a minimum—

- (1) that [real estate](/usc/12/1715z–20.md?p=b-2) appraisals be performed in accordance with generally accepted appraisal standards as evidenced by the appraisal standards promulgated by the Appraisal Standards [Board](/usc/12/221a.md?p=a) of the [Appraisal Foundation](/usc/12/3350.md?p=9);
- (2) that such appraisals shall be [written appraisals](/usc/12/3350.md?p=10); and
- (3) that such appraisals shall be subject to appropriate review for compliance with the Uniform Standards of Professional Appraisal Practice.

Each such [agency](/usc/12/1422.md?p=12) or instrumentality may require compliance with additional standards if it makes a determination in writing that such additional standards are required in order to properly carry out its statutory responsibilities.


# §3340. Time for proposal and adoption of standards


Appraisal standards established under this chapter shall be proposed not later than 6 months and shall be adopted in final form and become effective not later than 12 months after August 9, 1989.


# §3341. Functions of Federal financial institutions regulatory agencies relating to appraiser qualifications

- (a) **In general—** Each Federal [financial institutions](/usc/12/1715k.md?p=h-1-C) regulatory [agency](/usc/12/1422.md?p=12) and the Resolution Trust [Corporation](/usc/12/2277a.md?p=2) shall prescribe, in accordance with sections [3342](/usc/12/3342.md) and [3343](/usc/12/3343.md) of this title, which categories of [federally related transactions](/usc/12/3350.md?p=4) should be appraised by a [State](/usc/12/1707.md?p=d) certified appraiser and which by a [State](/usc/12/1707.md?p=d) licensed appraiser under this chapter.
- (b) **Threshold level—** Each Federal [financial institutions](/usc/12/1715k.md?p=h-1-C) regulatory [agency](/usc/12/1422.md?p=12) and the Resolution Trust [Corporation](/usc/12/2277a.md?p=2) may establish a threshold level at or below which a certified or licensed appraiser is not required to perform appraisals in connection with [federally related transactions](/usc/12/3350.md?p=4), if such [agency](/usc/12/1422.md?p=12) determines in writing that such threshold level does not represent a threat to the safety and soundness of [financial institutions](/usc/12/1715k.md?p=h-1-C), and receives concurrence from the [Bureau](/usc/12/5481.md?p=2) of [Consumer](/usc/12/5481.md?p=4) Financial Protection that such threshold level provides reasonable protection for [consumers](/usc/12/5481.md?p=4) who purchase 1–4 unit single-[family](/usc/12/1715z–1.md?p=j-2-A) residences.
- (c) **GAO study of appraisals in connection with real estate related financial transactions below threshold level—**
  - (1) **GAO studies—** The Comptroller General of the United States may conduct, under such conditions as the Comptroller General determines appropriate, studies on the adequacy and quality of appraisals or evaluations conducted in connection with [real estate](/usc/12/1715z–20.md?p=b-2) related financial transactions below the threshold level established under [subsection (b)](#b), taking into account—
    - (A) the cost to any [financial institution](/usc/12/1715k.md?p=h-1-C) involved in any such transaction;
    - (B) the possibility of losses to the [Deposit Insurance Fund](/usc/12/1813.md?p=y-1) or the National [Credit Union](/usc/12/3423.md?p=a-1-E) Share Insurance [Fund](/usc/12/4702.md?p=10);
    - (C) the cost to any customer involved in any such transaction; and
    - (D) the effect on low-income housing.
  - (2) **Reports to Congress and the appropriate Federal financial institutions regulatory agencies—** Upon completing each of the studies referred to in [paragraph (1)](#c-1), the Comptroller General shall submit a report on the Comptroller General’s findings and conclusions with respect to such study to the [Federal financial institutions regulatory agencies](/usc/12/3350.md?p=6), the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate, together with such recommendations for legislative or administrative action as the Comptroller General determines to be appropriate.

# §3342. Transactions requiring services of State certified appraiser

- (a) **In general—** In determining whether an appraisal in connection with a [federally related transaction](/usc/12/3350.md?p=4) shall be performed by a [State](/usc/12/1707.md?p=d) certified appraiser, an [agency](/usc/12/1422.md?p=12) or instrumentality under this chapter shall consider whether transactions, either individually or collectively, are of sufficient financial or public policy importance to the United States that an individual who performs an appraisal in connection with such transactions should be a [State](/usc/12/1707.md?p=d) certified appraiser, except that—
  - (1) a [State](/usc/12/1707.md?p=d) certified appraiser shall be required for all [federally related transactions](/usc/12/3350.md?p=4) having a value of $1,000,000 or more; and
  - (2) 1-to-4 unit, single [family](/usc/12/1715z–1.md?p=j-2-A) residential appraisals may be performed by [State](/usc/12/1707.md?p=d) licensed appraisers unless the size and complexity requires a [State](/usc/12/1707.md?p=d) certified appraiser, where a complex 1-to-4 unit single [family](/usc/12/1715z–1.md?p=j-2-A) residential appraisal means an appraisal for which the property to be appraised, the form of ownership, the property characteristics, or the market conditions are atypical.
- (b) **Use of State credentialed trainee appraisers—** In performing an appraisal under this section, a [State](/usc/12/1707.md?p=d) certified appraiser may use the assistance of a [State credentialed trainee appraiser](/usc/12/3350.md?p=12) or an unlicensed trainee appraiser, except that the [State](/usc/12/1707.md?p=d) certified appraiser assisted by a trainee shall be liable for appraisal and valuation work.

# §3343. Transactions requiring services of State licensed appraiser


All [federally related transactions](/usc/12/3350.md?p=4) not requiring the services of a [State](/usc/12/1707.md?p=d) certified appraiser shall be performed by either a [State](/usc/12/1707.md?p=d) certified or licensed appraiser.


# §3344. Time for proposal and adoption of rules


As appropriate, rules issued under sections [3342](/usc/12/3342.md) and [3343](/usc/12/3343.md) of this title shall be proposed not later than 6 months and shall be effective upon adoption in final form not later than 12 months after August 9, 1989.


# §3345. Certification and licensing requirements

- (a) **In general—** For purposes of this chapter, the term “State certified real estate appraiser” means any individual who has satisfied the requirements for [State](/usc/12/1707.md?p=d) certification in a [State](/usc/12/1707.md?p=d) or territory whose criteria for certification as a [real estate](/usc/12/1715z–20.md?p=b-2) appraiser currently meets the minimum criteria for certification issued by the Appraiser Qualification [Board](/usc/12/221a.md?p=a) of the [Appraisal Foundation](/usc/12/3350.md?p=9).
- (b) **Restriction—** No individual shall be a [State certified real estate appraiser](#a) under this section unless such individual has achieved a passing grade upon a suitable examination administered by a [State](/usc/12/1707.md?p=d) or territory that is consistent with and equivalent to the Uniform [State](/usc/12/1707.md?p=d) Certification Examination issued or endorsed by the Appraiser Qualification [Board](/usc/12/221a.md?p=a) of the [Appraisal Foundation](/usc/12/3350.md?p=9).
- (c) **“State licensed appraiser” defined—** As used in this section, the term “State licensed appraiser” means an individual who has satisfied the requirements for [State](/usc/12/1707.md?p=d) licensing in a [State](/usc/12/1707.md?p=d) or territory whose criteria for the licensing of a [real estate](/usc/12/1715z–20.md?p=b-2) appraiser currently meet or exceed the minimum criteria issued by the Appraisal Qualifications [Board](/usc/12/221a.md?p=a) of The [Appraisal Foundation](/usc/12/3350.md?p=9) for the licensing of [real estate](/usc/12/1715z–20.md?p=b-2) appraisers.
- (d) **Additional qualification criteria—** Nothing in this chapter shall be construed to prevent any [Federal agency](/usc/12/3101.md?p=5) or instrumentality under this chapter from establishing such additional qualification criteria as may be necessary or appropriate to carry out the statutory responsibilities of such department, [agency](/usc/12/1422.md?p=12), or instrumentality.
- (e) **Minimum qualification requirements—** Any requirements established for individuals in the position of “Trainee Appraiser” and “Supervisory Appraiser” shall meet or exceed the minimum qualification requirements of the Appraiser Qualifications [Board](/usc/12/221a.md?p=a) of The [Appraisal Foundation](/usc/12/3350.md?p=9). The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall have the authority to enforce these requirements.

# §3346. Establishment of State appraiser certifying and licensing agencies


To assure the availability of [State](/usc/12/1707.md?p=d) certified and licensed appraisers for the performance in a [State](/usc/12/1707.md?p=d) of appraisals in [federally related transactions](/usc/12/3350.md?p=4) and to assure effective supervision of the activities of certified and licensed appraisers, a [State](/usc/12/1707.md?p=d) may establish a [State appraiser certifying and licensing agency](/usc/12/3350.md?p=1). The duties of such [agency](/usc/12/1422.md?p=12) may additionally include the registration and supervision of [appraisal management companies](/usc/12/3350.md?p=11) and the addition of information about the [appraisal management company](/usc/12/3350.md?p=11) to the national registry.


# §3347. Monitoring of State appraiser certifying and licensing agencies

- (a) **In general—** The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall monitor each [State appraiser certifying and licensing agency](/usc/12/3350.md?p=1) for the purposes of determining whether such [agency](/usc/12/1422.md?p=12)—
  - (1) has policies, practices, funding, staffing, and procedures that are consistent with this chapter;
  - (2) processes complaints and completes investigations in a reasonable time period;
  - (3) appropriately disciplines sanctioned appraisers and [appraisal management companies](/usc/12/3350.md?p=11);
  - (4) maintains an effective regulatory program; and
  - (5) reports complaints and disciplinary actions on a timely basis to the national registries on appraisers and [appraisal management companies](/usc/12/3350.md?p=11) maintained by the [Appraisal Subcommittee](/usc/12/3350.md?p=2).

  The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall have the authority to remove a [State](/usc/12/1707.md?p=d) licensed or certified appraiser or a registered [appraisal management company](/usc/12/3350.md?p=11) from a national registry on an interim basis, not to exceed 90 days, pending [State](/usc/12/1707.md?p=d) [agency](/usc/12/1422.md?p=12) action on licensing, certification, registration, and disciplinary proceedings. The [Appraisal Subcommittee](/usc/12/3350.md?p=2) and all [agencies](/usc/12/1422.md?p=12), instrumentalities, and Federally recognized entities under this chapter shall not recognize appraiser certifications and licenses from [States](/usc/12/1707.md?p=d) whose appraisal policies, practices, funding, staffing, or procedures are found to be inconsistent with this chapter. The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall have the authority to impose sanctions, as described in this section, against a [State](/usc/12/1707.md?p=d) [agency](/usc/12/1422.md?p=12) that fails to have an effective appraiser regulatory program. In determining whether such a program is effective, the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall include an analysis of the licensing and certification of appraisers, the registration of [appraisal management companies](/usc/12/3350.md?p=11), the issuance of temporary licenses and certifications for appraisers, the receiving and tracking of submitted complaints against appraisers and [appraisal management companies](/usc/12/3350.md?p=11), the investigation of complaints, and enforcement actions against appraisers and [appraisal management companies](/usc/12/3350.md?p=11). The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall have the authority to impose interim actions and suspensions against a [State](/usc/12/1707.md?p=d) [agency](/usc/12/1422.md?p=12) as an alternative to, or in advance of, the derecognition of a [State](/usc/12/1707.md?p=d) [agency](/usc/12/1422.md?p=12).

- (b) **Disapproval by Appraisal Subcommittee—** The Federal [financial institutions](/usc/12/1715k.md?p=h-1-C),[^1] regulatory [agencies](/usc/12/1422.md?p=12), the Federal National [Mortgage](/usc/12/1707.md?p=a) [Association](/usc/12/1828.md?p=s-4-E-i), the Federal Home Loan [Mortgage](/usc/12/1707.md?p=a) [Corporation](/usc/12/2277a.md?p=2), and the Resolution Trust [Corporation](/usc/12/2277a.md?p=2) shall accept certifications and licenses awarded by a [State](/usc/12/1707.md?p=d) appraiser certifying the licensing [agency](/usc/12/1422.md?p=12) unless the [Appraisal Subcommittee](/usc/12/3350.md?p=2) issues a written finding that—
  - (1) the [State](/usc/12/1707.md?p=d) [agency](/usc/12/1422.md?p=12) fails to recognize and enforce the standards, requirements, and procedures prescribed pursuant to this chapter;
  - (2) the [State](/usc/12/1707.md?p=d) [agency](/usc/12/1422.md?p=12) is not granted authority or sufficient funding by the [State](/usc/12/1707.md?p=d) which is adequate to permit the [agency](/usc/12/1422.md?p=12) to carry out its functions under this chapter; or
  - (3) decisions concerning appraisal standards, appraiser qualifications and supervision of appraiser practices are not made in a manner that carries out the purposes of this chapter.
- (c) **Rejection of State certifications and licenses—**
  - (1) **Opportunity to be heard or correct conditions—** Before refusing to recognize a [State](/usc/12/1707.md?p=d)’s appraiser certifications or licenses, the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall provide that [State](/usc/12/1707.md?p=d)’s certifying and licensing [agency](/usc/12/1422.md?p=12) a written notice of its intention not to recognize the [State](/usc/12/1707.md?p=d)’s certified or licensed appraisers and ample opportunity to provide rebuttal information or to correct the conditions causing the refusal.
  - (2) **Adoption of procedures—** The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall adopt written procedures for taking actions described in this section.
  - (3) **Judicial review—** A decision of the [subcommittee](/usc/12/3350.md?p=2) under this section shall be subject to judicial review.

# §3348. Recognition of State certified and licensed appraisers for purposes of this chapter

- (a) **Effective date for use of certified or licensed appraisers only—**
  - (1) **In general—** Not later than December 31, 1992, all appraisals performed in connection with [federally related transactions](/usc/12/3350.md?p=4) shall be performed only by individuals certified or licensed in accordance with the requirements of this chapter.
  - (2) **Extension of effective date—** Subject to the approval of the [Council](/usc/12/3350.md?p=3), the [Appraisal Subcommittee](/usc/12/3350.md?p=2) may extend, until December 31, 1991, the effective date for the use of certified or licensed appraisers if it makes a written finding that a [State](/usc/12/1707.md?p=d) has made substantial progress in establishing a [State](/usc/12/1707.md?p=d) certification and licensing system that appears to conform to the provisions of this chapter.
- (b) **Temporary waiver of appraiser certification or licensing requirements for State having scarcity of qualified appraisers—** Subject to the approval of the [Council](/usc/12/3350.md?p=3), the [Appraisal Subcommittee](/usc/12/3350.md?p=2) may waive any requirement relating to certification or licensing of a [person](/usc/12/5481.md?p=19) to perform appraisals under this chapter if the [Appraisal Subcommittee](/usc/12/3350.md?p=2) or a [State](/usc/12/1707.md?p=d) [agency](/usc/12/1422.md?p=12) whose certifications and licenses are in compliance with this chapter, makes a written determination that there is a scarcity of certified or licensed appraisers to perform appraisals in connection with [federally related transactions](/usc/12/3350.md?p=4) in a [State](/usc/12/1707.md?p=d), or in any geographical political subdivision of a [State](/usc/12/1707.md?p=d), leading to significant delays in the performance of such appraisals. The waiver terminates when the [Appraisal Subcommittee](/usc/12/3350.md?p=2) determines that such significant delays have been eliminated.
- (c) **Reports to State certifying and licensing agencies—** The [Appraisal Subcommittee](/usc/12/3350.md?p=2), any other [Federal agency](/usc/12/3101.md?p=5) or instrumentality, or any federally recognized entity shall report any action of a [State](/usc/12/1707.md?p=d) certified or licensed appraiser that is contrary to the purposes of this chapter, to the appropriate [State](/usc/12/1707.md?p=d) [agency](/usc/12/1422.md?p=12) for a disposition of the subject of the referral. The [State](/usc/12/1707.md?p=d) [agency](/usc/12/1422.md?p=12) shall provide the [Appraisal Subcommittee](/usc/12/3350.md?p=2) or the other [Federal agency](/usc/12/3101.md?p=5) or instrumentality with a report on its disposition of the matter referred. Subsequent to such disposition, the [subcommittee](/usc/12/3350.md?p=2) or the [agency](/usc/12/1422.md?p=12) or instrumentality may take such further action, pursuant to written procedures, it deems necessary to carry out the purposes of this chapter.

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

- (a) **Violations—** Except as authorized by the [Appraisal Subcommittee](/usc/12/3350.md?p=2) in exercising its waiver authority pursuant to [section 3348(b) of this title](/usc/12/3348.md?p=b), it shall be a violation of this section—
  - (1) for a [financial institution](/usc/12/1715k.md?p=h-1-C) to seek, obtain, or give money or any other thing of value in exchange for the performance of an appraisal by a [person](/usc/12/5481.md?p=19) who the institution knows is not a [State](/usc/12/1707.md?p=d) certified or licensed appraiser in connection with a [federally related transaction](/usc/12/3350.md?p=4); and
  - (2) for the Federal National [Mortgage](/usc/12/1707.md?p=a) [Association](/usc/12/1828.md?p=s-4-E-i), the Federal Home Loan [Mortgage](/usc/12/1707.md?p=a) [Corporation](/usc/12/2277a.md?p=2), or the Resolution Trust [Corporation](/usc/12/2277a.md?p=2) to knowingly contract for the performance of any appraisal by a [person](/usc/12/5481.md?p=19) who is not a [State](/usc/12/1707.md?p=d) certified or licensed appraiser in connection with a [real estate](/usc/12/1715z–20.md?p=b-2) related financial transaction defined in [section 3350(5) of this title](/usc/12/3350.md?p=5) to which such [association](/usc/12/1828.md?p=s-4-E-i) or [corporation](/usc/12/2277a.md?p=2) is a party.
- (b) **Penalties—** A [financial institution](/usc/12/1715k.md?p=h-1-C) that violates [subsection (a)(1)](#a-1) shall be subject to civil penalties under [section 1818(i)(2) of this title](/usc/12/1818.md?p=i-2) or [section 1786(k)(2) of this title](/usc/12/1786.md?p=k-2), 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](/usc/12/1715k.md?p=h-1-C) regulatory [agency](/usc/12/1422.md?p=12) in accordance with the procedures set forth in subchapter II of [chapter 5](/usc/5/chptI-ch5.md) of title 5.

# §3350. Definitions


For purposes of this chapter:

- (1) **State appraiser certifying and licensing agency—** The term “State appraiser certifying and licensing agency” means a [State](/usc/12/1707.md?p=d) [agency](/usc/12/1422.md?p=12) established in compliance with this chapter.
- (2) **Appraisal Subcommittee; subcommittee—** The terms “Appraisal Subcommittee” and “subcommittee” mean the Appraisal Subcommittee of the Federal [Financial Institutions](/usc/12/1715k.md?p=h-1-C) Examination [Council](#3).
- (3) **Council—** The term “Council” means the Federal [Financial Institutions](/usc/12/1715k.md?p=h-1-C) Examinations Council.
- (4) **Federally related transaction—** The term “federally related transaction” means any [real estate-related financial transaction](#5) which—
  - (A) a federal [financial institutions](/usc/12/1715k.md?p=h-1-C) regulatory [agency](/usc/12/1422.md?p=12) or the Resolution Trust [Corporation](/usc/12/2277a.md?p=2) engages in, contracts for, or regulates; and
  - (B) requires the services of an appraiser.
- (5) **Real estate related financial transaction—** The term “real estate-related financial transaction” means any transaction involving—
  - (A) the sale, lease, purchase, investment in or exchange of real property, [including](/usc/12/25b.md?p=a-3) interests in property, or the financing thereof;
  - (B) the refinancing of real property or interests in real property; and
  - (C) the use of real property or interests in property as security for a loan or investment, [including](/usc/12/25b.md?p=a-3) [mortgage](/usc/12/1707.md?p=a)-backed securities.
- (6) **Federal financial institutions regulatory agencies—** The term “Federal financial institutions regulatory agencies” means the [Board](/usc/12/221a.md?p=a) of Governors of the Federal Reserve System, the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2), the [Office](/usc/12/2279bb.md?p=4) of the Comptroller of the Currency, the [Office](/usc/12/2279bb.md?p=4) of Thrift Supervision, and the National [Credit Union](/usc/12/3423.md?p=a-1-E) Administration.
- (7) **Financial institution—** The term “[financial institution](/usc/12/1715k.md?p=h-1-C)” means an [insured depository institution](/usc/12/24a.md?p=g-2) as defined in [section 1813 of this title](/usc/12/1813.md) or an [insured credit union](/usc/12/1829c.md?p=a-6) as defined in [section 1752 of this title](/usc/12/1752.md).
- (8) **Chairperson—** The term “Chairperson” means the Chairperson of the [Appraisal Subcommittee](#2) selected by the [Council](#3).
- (9) **Foundation—** The terms “Appraisal Foundation” and “Foundation” means the Appraisal Foundation established on November 30, 1987, as a not for profit [corporation](/usc/12/2277a.md?p=2) under the laws of Illinois.
- (10) **Written appraisal—** The term “written appraisal” means a written statement used in connection with a [federally related transaction](#4) that is independently and impartially prepared by a licensed or certified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by presentation and analysis of relevant market information.
- (11) **Appraisal management company—** The term “appraisal management company” means, in connection with valuing properties collateralizing [mortgage](/usc/12/1707.md?p=a) loans or [mortgages](/usc/12/1707.md?p=a) incorporated into a securitization, any external third party authorized either by a creditor of a [consumer](/usc/12/5481.md?p=4) [credit](/usc/12/5481.md?p=7) transaction secured by a [consumer](/usc/12/5481.md?p=4)’s principal dwelling or by an underwriter of or other principal in the secondary [mortgage](/usc/12/1707.md?p=a) markets, that oversees a network or panel of more than 15 certified or licensed appraisers in a [State](/usc/12/1707.md?p=d) or 25 or more nationally within a given year—
  - (A) to recruit, select, and retain appraisers;
  - (B) to contract with licensed and certified appraisers to perform appraisal assignments;
  - (C) to manage the process of having an appraisal performed, [including](/usc/12/25b.md?p=a-3) providing administrative duties such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and underwriters, collecting fees from creditors and underwriters for services provided, and reimbursing appraisers for services performed; or
  - (D) to review and verify the work of appraisers.
- (12) **State credentialed trainee appraiser—** The term “State credentialed trainee appraiser” means an individual who—
  - (A) meets the minimum criteria established by the Appraiser Qualification [Board](/usc/12/221a.md?p=a) for a trainee appraiser credential; and
  - (B) is credentialed by a [State appraiser certifying and licensing agency](#1).

# §3351. Miscellaneous provisions

- (a) **Temporary practice—**
  - (1) **In general—** A [State](/usc/12/1707.md?p=d) appraiser certifying or licensing [agency](/usc/12/1422.md?p=12) shall recognize on a temporary basis the certification or license of an appraiser issued by another [State](/usc/12/1707.md?p=d) if—
    - (A) the property to be appraised is part of a [federally related transaction](/usc/12/3350.md?p=4),
    - (B) the appraiser’s business is of a temporary nature, and
    - (C) the appraiser registers with the appraiser certifying or licensing [agency](/usc/12/1422.md?p=12) in the [State](/usc/12/1707.md?p=d) of temporary practice.
  - (2) **Fees for temporary practice—** A [State](/usc/12/1707.md?p=d) appraiser certifying or licensing [agency](/usc/12/1422.md?p=12) shall not impose excessive fees or burdensome requirements, as determined by the [Appraisal Subcommittee](/usc/12/3350.md?p=2), for temporary practice under this subsection.
- (b) **Reciprocity—** Notwithstanding any other provisions of this chapter, a [federally related transaction](/usc/12/3350.md?p=4) shall not be appraised by a certified or licensed appraiser unless the [State](/usc/12/1707.md?p=d) appraiser certifying or licensing [agency](/usc/12/1422.md?p=12) of the [State](/usc/12/1707.md?p=d) certifying or licensing such appraiser has in place a policy of issuing a reciprocal certification or license for an individual from another [State](/usc/12/1707.md?p=d) when—
  - (1) the appraiser licensing and certification program of such other [State](/usc/12/1707.md?p=d) is in compliance with the provisions of this chapter; and
  - (2) the appraiser holds a valid certification from a [State](/usc/12/1707.md?p=d) whose requirements for certification or licensing meet or exceed the licensure standards established by the [State](/usc/12/1707.md?p=d) where an individual seeks appraisal licensure.
- (c) **Supplemental funding—** [Funds](/usc/12/4702.md?p=10) available to the [Federal financial institutions regulatory agencies](/usc/12/3350.md?p=6) may be made available to the [Financial Institutions](/usc/12/1715k.md?p=h-1-C) Examination [Council](/usc/12/3350.md?p=3) to support the [Council](/usc/12/3350.md?p=3)’s functions under this chapter.
- (d) **Prohibition against discrimination—** Criteria established by the [Federal financial institutions regulatory agencies](/usc/12/3350.md?p=6), the Federal National [Mortgage](/usc/12/1707.md?p=a) [Association](/usc/12/1828.md?p=s-4-E-i), the Federal Home Loan [Mortgage](/usc/12/1707.md?p=a) [Corporation](/usc/12/2277a.md?p=2), and the Resolution Trust [Corporation](/usc/12/2277a.md?p=2) for appraiser qualifications in addition to [State](/usc/12/1707.md?p=d) 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) **Other requirements—** A [corporation](/usc/12/2277a.md?p=2), partnership, or other business entity may provide appraisal services in connection with [federally related transactions](/usc/12/3350.md?p=4) 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](/usc/12/1707.md?p=d) 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) **Studies—**
  - (1) **Study—** The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall—
    - (A) conduct a study to determine whether [real estate](/usc/12/1715z–20.md?p=b-2) sales and financing information and data that is available to [real estate](/usc/12/1715z–20.md?p=b-2) appraisers in the [States](/usc/12/1707.md?p=d) is sufficient to permit appraisers to properly estimate the values of properties in connection with [federally related transactions](/usc/12/3350.md?p=4); 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) **Report—** The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall—
    - (A) report its findings to the Congress with respect to the study described in [paragraph (1)(A)](#f-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)](#f-1-B) to Congress not later than 18 months after August 9, 1989.
- (g) **Appraiser independence monitoring—** The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall monitor each [State appraiser certifying and licensing agency](/usc/12/3350.md?p=1) for the purpose of determining whether such [agency](/usc/12/1422.md?p=12)’s policies, practices, and procedures are consistent with the purposes of maintaining appraiser independence and whether such [State](/usc/12/1707.md?p=d) has adopted and maintains effective laws, regulations, and policies aimed at maintaining appraiser independence.
- (h) **Approved education—** The [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall encourage the [States](/usc/12/1707.md?p=d) to accept courses approved by the Appraiser Qualification [Board](/usc/12/221a.md?p=a)’s Course Approval Program.
- (i) **Appraisal complaint national hotline—** If, 6 months after July 21, 2010, the [Appraisal Subcommittee](/usc/12/3350.md?p=2) determines that no national hotline exists to receive complaints of non-compliance with appraisal independence standards and Uniform Standards of Professional Appraisal Practice, [including](/usc/12/25b.md?p=a-3) complaints from appraisers, individuals, or other entities concerning the improper influencing or attempted improper influencing of appraisers or the appraisal process, the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall establish and operate such a national hotline, which shall include a toll-free telephone number and an email address. If the [Appraisal Subcommittee](/usc/12/3350.md?p=2) operates such a national hotline, the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall refer complaints for further action to appropriate governmental bodies, [including](/usc/12/25b.md?p=a-3) a [State appraiser certifying and licensing agency](/usc/12/3350.md?p=1), a [financial institution](/usc/12/1715k.md?p=h-1-C) regulator, or other appropriate legal authorities. For complaints referred to [State appraiser certifying and licensing agencies](/usc/12/3350.md?p=1) or to Federal regulators, the [Appraisal Subcommittee](/usc/12/3350.md?p=2) shall have the authority to follow up such complaint referrals in order to determine the status of the resolution of the complaint.