Housing authorities announced new minimum requirements for state registration and supervision of appraisal management companies.
AMCs provide appraisal management services to lenders, underwriters or other principles in the secondary mortgage markets, including contracting with licensed and certified appraisers to perform appraisal assignments.
The final rule implements amendments to Title XI of the Financial Institution Reform, Recovery and Enforcement Act of 1989 made by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
With the new rule, states may elect to register and supervise AMCs, but there is no penalty if a state chooses not to establish a regulatory structure for AMCs.
However, in states that have not established a regulatory structure after 36 months from the effective date of this final rule, any non-federally regulated AMC is barred by section 1124 of Title XI from providing appraisal management services for federally related transactions.
But if a state adopts a regulatory structure for AMCs after this 36-month period, it can lift this restriction.
Under the final rule, participating states must apply certain minimum requirements in the registration and supervision of appraisal management companies.
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the Federal Housing Finance Agency, and the National Credit Union Administration jointly issued the final rule.
The final rule will become effective 60 days after publication in the Federal Register. The compliance date for federally regulated AMCs is no later than 12 months from the effective date of this rule.