(a) Authority. This subpart is issued by the Board of Governors
of the Federal Reserve System (the Board) pursuant to title XI of
the Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (FIRREA) (Pub. L. 101-73, 103 Stat. 183 (1989)), 12 U.S.C. 3310,
3331-3351, section 1473 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, 12 U.S.C. 3353, and section 5(b) of the Bank Holding
Company Act, 12 U.S.C. 1844(b).
(b) Purpose and scope.
(1) The purpose of this subpart is to implement
sections 1109, 1117, 1121, and 1124 of FIRREA Title XI, 12 U.S.C.
3338, 3346, 3350, and 3353. Title XI provides protection for Federal
financial and public policy interests in real estate related transactions by requiring
real estate appraisals used in connection with Federally related transactions
to be performed in writing, in accordance with uniform standards,
by appraisers whose competency has been demonstrated and whose professional
conduct will be subject to effective supervision. This subpart implements
the requirements of title XI as amended by the Dodd-Frank Wall Street
Reform and Consumer Protection Act and applies to all Federally related
transactions and to States and to appraisal management companies (AMCs)
performing appraisal management services in connection with consumer
credit transactions secured by a consumer’s principal dwelling or
securitizations of those transactions.
(2) This subpart:
(i) Identifies
which real estate related financial transactions require the services
of an appraiser.
(ii) Prescribes which categories of Federally related transactions
shall be appraised by a State-certified appraiser and which by a State-licensed
appraiser;
(iii)
Prescribes minimum standards for the performance of real estate appraisals
in connection with Federal related transactions under the jurisdiction
of the Board;
(iv)
Prescribes minimum requirements to be applied by participating States
in the registration and supervision of AMCs; and
(v) Prescribes minimum requirements
to be applied by participating States to report certain information
concerning AMCs registered with the States to a national registry
of AMCs.
(c)
Rule of construction. Nothing in this subpart
should be construed to prevent a State from establishing requirements
in addition to those in this subpart. In addition, nothing in this
subpart should be construed to alter guidance in, and applicability
of, the Interagency Appraisal and Evaluation Guidelines
1 or other relevant agency guidance that cautions banks and bank
holding companies, that each organization is accountable for overseeing
the activities of third-party service providers and ensuring that
any services provided by a third party comply with applicable laws,
regulations, and supervisory guidance applicable directly to the creditor.
