---
kind: "section"
citation: "12 U.S.C. § 3356"
title: "12"
title_heading: "Banks and Banking"
number: "3356"
heading: "Exemption from appraisals of real estate located in rural areas"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/3356"
units:
  - "Chapter 34A — Appraisal Subcommittee of Federal Financial Institutions Examination Council"
---

# §3356. Exemption from appraisals of real estate located in rural areas

- (a) **Definitions—** In this section—
  - (1) the term “[mortgage](/usc/12/1707.md?p=a) originator” has the meaning given the term in [section 1602 of title 15](/usc/15/1602.md); and
  - (2) the term “transaction value” means the amount of a loan or extension of [credit](/usc/12/5481.md?p=7), including a loan or extension of [credit](/usc/12/5481.md?p=7) that is part of a pool of loans or extensions of [credit](/usc/12/5481.md?p=7).
- (b) **Appraisal not required—** Except as provided in [subsection (d)](#d), notwithstanding any other provision of law, an appraisal in connection with a [federally related transaction](/usc/12/3350.md?p=4) involving real property or an interest in real property is not required if—
  - (1) the real property or interest in real property is located in a rural area, as described in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations;
  - (2) not later than 3 days after the date on which the Closing Disclosure Form, made in accordance with the final rule of the [Bureau](/usc/12/5481.md?p=2) of [Consumer](/usc/12/5481.md?p=4) Financial Protection entitled “Integrated [Mortgage](/usc/12/1707.md?p=a) Disclosures Under the [Real Estate](/usc/12/1707.md?p=g) Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)” (78 Fed. Reg. 79730 (December 31, 2013)), relating to the [federally related transaction](/usc/12/3350.md?p=4) is given to the [consumer](/usc/12/5481.md?p=4), the [mortgage](/usc/12/1707.md?p=a) originator or its agent, directly or indirectly—
    - (A) has contacted not fewer than 3 [State](/usc/12/1707.md?p=d) certified appraisers or [State](/usc/12/1707.md?p=d) licensed appraisers, as applicable, on the [mortgage](/usc/12/1707.md?p=a) originator’s approved appraiser list in the market area in accordance with part [226](/usc/12/226.md) of title 12, Code of Federal Regulations; and
    - (B) has documented that no [State](/usc/12/1707.md?p=d) certified appraiser or [State](/usc/12/1707.md?p=d) licensed appraiser, as applicable, was available within 5 business days beyond customary and reasonable fee and timeliness standards for comparable appraisal assignments, as documented by the [mortgage](/usc/12/1707.md?p=a) originator or its agent;
  - (3) the transaction value is less than $400,000; and
  - (4) the [mortgage](/usc/12/1707.md?p=a) originator is subject to oversight by a Federal [financial institutions](/usc/12/3350.md?p=7) regulatory agency.
- (c) **Sale, assignment, or transfer—** A [mortgage](/usc/12/1707.md?p=a) originator that makes a loan without an appraisal under the terms of [subsection (b)](#b) shall not sell, assign, or otherwise transfer legal title to the loan unless—
  - (1) the loan is sold, assigned, or otherwise transferred to another [person](/usc/12/5481.md?p=19) by reason of the bankruptcy or failure of the [mortgage](/usc/12/1707.md?p=a) originator;
  - (2) the loan is sold, assigned, or otherwise transferred to another [person](/usc/12/5481.md?p=19) regulated by a Federal [financial institutions](/usc/12/3350.md?p=7) regulatory agency, so long as the loan is retained in portfolio by the [person](/usc/12/5481.md?p=19);
  - (3) the sale, assignment, or transfer is pursuant to a merger of the [mortgage](/usc/12/1707.md?p=a) originator with another [person](/usc/12/5481.md?p=19) or the acquisition of the [mortgage](/usc/12/1707.md?p=a) originator by another [person](/usc/12/5481.md?p=19) or of another [person](/usc/12/5481.md?p=19) by the [mortgage](/usc/12/1707.md?p=a) originator; or
  - (4) the sale, loan, or transfer is to a wholly owned subsidiary of the [mortgage](/usc/12/1707.md?p=a) originator, provided that, after the sale, assignment, or transfer, the loan is considered to be an asset of the [mortgage](/usc/12/1707.md?p=a) originator for regulatory accounting purposes.
- (d) **Exception—** [Subsection (b)](#b) shall not apply if—
  - (1) a Federal [financial institutions](/usc/12/3350.md?p=7) regulatory agency requires an appraisal under section 225.63(c), 323.3(c), 34.43(c), or 722.3(e) of title 12, Code of Federal Regulations; or
  - (2) the loan is a high-cost [mortgage](/usc/12/1707.md?p=a), as defined in [section 1602 of title 15](/usc/15/1602.md).
- (e) **Anti-evasion—** Each Federal [financial institutions](/usc/12/3350.md?p=7) regulatory agency shall ensure that any [mortgage](/usc/12/1707.md?p=a) originator that the Federal [financial institutions](/usc/12/3350.md?p=7) regulatory agency oversees that makes a significant amount of loans under [subsection (b)](#b) is complying with the requirements of [subsection (b)(2)](#b-2) with respect to each loan.

## Source credit

(Pub. L. 101–73, title XI, § 1127, as added Pub. L. 115–174, title I, § 103, May 24, 2018, 132 Stat. 1299.)