Joint rule out on appraisal management companies
March 25, 2014 – Six agencies, including NCUA and CFPB, released a proposed rule Monday to put into place minimum requirements for state registration and supervision of appraisal management companies.
The joint statement said the “minimum requirements in the proposed rule would apply to states that elect to establish an appraiser certifying and licensing agency with the authority to register and supervise AMCs.” The agencies added the proposal would not force or impose a penalty on a state to establish an AMC registration and supervision program.
Under the proposed rule, those states that choose to participate would need to require an appraisal management company to:
- register in the state and be subject to its supervision;
- ensure selection of a competent and independent appraiser; and
- establish and comply with processes to ensure appraisals comply with the standards under the Truth in Lending Act, among other requirements.
States would have 36 months after the rule’s effective date to implement the minimum requirements. Other agencies involved are the Office of the Comptroller of the Currency, the Federal Reserve Board, FDIC and the Federal Housing Finance Agency.
The agencies noted that the public will have 60 days to comment on the proposal. The proposal is expected to be published in the Federal Register soon.