WASHINGTON (4/11/14)--An interagency proposed rule on the regulation of appraisal management companies (AMCs) was published in the Federal Register
Wednesday. Comments are due by June 9.
This is the rule proposed last month by the National Credit Union Administration and the federal banking agencies to implement requirements of the 2010 Dodd-Frank Act for the registration and supervision of AMCs.
An AMC is an entity that serves as an intermediary between appraisers and lenders and provides appraisal management services.
The proposed rule would apply to states that choose to establish an appraiser certification and licensing agency with the authority to register and supervise AMCs. Under the proposed rule, a participating state would require AMCs to:
Register in the state, which will be responsible for supervising its AMCs;
Use only state-certified or licensed appraisers for federally related transactions;
Comply with the Uniform Standards of Professional Appraisal Practice (USPAP);
Ensure the selection of competent and independent appraisers; and
Have controls in place to ensure that appraisals comply with the appraisal independence standards under the Truth in Lending Act (TILA).
During the March NCUA open board meeting at which the rule was proposed, NCUA staff indicated they did not think the proposed rule would measurably impact credit unions. Use the resource link to access the joint-agency proposal.