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15 U.S.C. § 1639h — Property appraisal requirements
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** A creditor may not extend credit in the form of a higher-risk mortgage to any consumer without first obtaining a written appraisal of the property to be mortgaged prepared in accordance with the requirements of this section.
**(b) Appraisal requirements**
(1) **Physical property visit** — Subject to the rules prescribed under paragraph (4), an appraisal of property to be secured by a higher-risk mortgage does not meet the requirement of this section unless it is performed by a certified or licensed appraiser who conducts a physical property visit of the interior of the mortgaged property.
(2) **Second appraisal under certain circumstances**
(A) *In general* — If the purpose of a higher-risk mortgage is to finance the purchase or acquisition of the mortgaged property from a person within 180 days of the purchase or acquisition of such property by that person at a price that was lower than the current sale price of the property, the creditor shall obtain a second appraisal from a different certified or licensed appraiser. The second appraisal shall include an analysis of the difference in sale prices, changes in market conditions, and any improvements made to the property between the date of the previous sale and the current sale.
(B) *No cost to applicant* — The cost of any second appraisal required under subparagraph (A) may not be charged to the applicant.
(3) **Certified or licensed appraiser defined** — For purposes of this section, the term “certified or licensed appraiser” means a person who—
(A) is, at a minimum, certified or licensed by the State in which the property to be appraised is located; and
(B) performs each appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and title XI of the Financi
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Source file: Laws/federal/codes/united-states-code/title-15/section-1639h-property-appraisal-requirements--d15e93e891.md
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Source location: Title 15, Chapter 41, § 1639h; chapter-041-consumer-credit-protection.md
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**(a) In general** A creditor may not extend credit in the form of a higher-risk mortgage to any consumer without first obtaining a written appraisal of the property to be mortgaged prepared in accordance with the requirements of this section.
**(b) Appraisal requirements**
(1) **Physical property visit** — Subject to the rules prescribed under paragraph (4), an appraisal of property to be secured by a higher-risk mortgage does not meet the requirement of this section unless it is performed by a certified or licensed appraiser who conducts a physical property visit of the interior of the mortgaged property.
(2) **Second appraisal under certain circumstances**
(A) *In general* — If the purpose of a higher-risk mortgage is to finance the purchase or acquisition of the mortgaged property from a person within 180 days of the purchase or acquisition of such property by that person at a price that was lower than the current sale price of the property, the creditor shall obtain a second appraisal from a different certified or licensed appraiser. The second appraisal shall include an analysis of the difference in sale prices, changes in market conditions, and any improvements made to the property between the date of the previous sale and the current sale.
(B) *No cost to applicant* — The cost of any second appraisal required under subparagraph (A) may not be charged to the applicant.
(3) **Certified or licensed appraiser defined** — For purposes of this section, the term “certified or licensed appraiser” means a person who—
(A) is, at a minimum, certified or licensed by the State in which the property to be appraised is located; and
(B) performs each appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 [[12 U.S.C. 3331](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3331&num=0&edition=prelim) et seq.], and the regulations prescribed under such title, as in effect on the date of the appraisal.
(4) **Regulations**
(A) *In general* — The Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, the Federal Housing Finance Agency, and the Bureau shall jointly prescribe regulations to implement this section.
(B) *Exemption* — The agencies listed in subparagraph (A) may jointly exempt, by rule, a class of loans from the requirements of this subsection or subsection (a) if the agencies determine that the exemption is in the public interest and promotes the safety and soundness of creditors.
**(c) Free copy of appraisal** A creditor shall provide 1 copy of each appraisal conducted in accordance with this section in connection with a higher-risk mortgage to the applicant without charge, and at least 3 days prior to the transaction closing date.
**(d) Consumer notification** At the time of the initial mortgage application, the applicant shall be provided with a statement by the creditor that any appraisal prepared for the mortgage is for the sole use of the creditor, and that the applicant may choose to have a separate appraisal conducted at the expense of the applicant.
**(e) Violations** In addition to any other liability to any person under this subchapter, a creditor found to have willfully failed to obtain an appraisal as required in this section shall be liable to the applicant or borrower for the sum of $2,000.
**(f) Higher-risk mortgage defined** For purposes of this section, the term “higher-risk mortgage” means a residential mortgage loan, other than a reverse mortgage loan that is a qualified mortgage, as defined in [section 1639c of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1639c&num=0&edition=prelim), secured by a principal dwelling—
(1) that is not a qualified mortgage, as defined in [section 1639c of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1639c&num=0&edition=prelim); and
(2) with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction, as defined in [section 1639c of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1639c&num=0&edition=prelim), as of the date the interest rate is set—
(A) by 1.5 or more percentage points, in the case of a first lien residential mortgage loan having an original principal obligation amount that does not exceed the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date of such interest rate set, pursuant to the sixth sentence of [section 1454(a)(2) of title 12](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1454/a/2&num=0&edition=prelim);
(B) by 2.5 or more percentage points, in the case of a first lien residential mortgage loan having an original principal obligation amount that exceeds the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date of such interest rate set, pursuant to the sixth sentence of [section 1454(a)(2) of title 12](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1454/a/2&num=0&edition=prelim); and
(C) by 3.5 or more percentage points for a subordinate lien residential mortgage loan.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Informed use of credit** The Congress finds that economic stabilization would be enhanced and the competition among the various financial institutions and other firms engaged in the extension of consumer credit would be strengthened by the informed use of credit. The informed use of credit results from an awareness of the cost thereof by consumers. It is the purpose of this subchapter to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices.
**(b) Terms of personal property leases** The Congress also finds that there has been a recent trend toward leasing automobiles and other durable goods for consumer use as an alternative to installment credit sales and that these leases have been offered without adequate cost disclosures. It is the purpose of this subchapter to assure a meaningful disclosure of the terms of leases of personal property for personal, family, or household purposes so as to enable the lessee to compare more readily the various lease terms available to him, limit balloon payments in consumer leasing, enable comparison of lease terms with credit terms where appropriate, and to assure meaningful and accurate disclosures of lease terms in advertisements.
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 1601
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment of Corporation** There is hereby established a Federal Deposit Insurance Corporation (hereinafter referred to as the “Corporation”) which shall insure, as hereinafter provided, the deposits of all banks and savings associations which are entitled to the benefits of insurance under this chapter, and which shall have the powers hereinafter granted.
**(b) Asset disposition division**
(1) **Establishment** — The Corporation shall have a separate division of asset disposition.
(2) **Management** — The division of asset disposition shall have an administrator who shall be appointed by the Board of Directors.
(3) **Responsibilities of division** — The division of asset disposition shall carry out all of the responsibilities of the Corporation under this chapter relating to the liquidation of insured depository institutions and the disposition of assets of such institutions.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1811
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Federal law — U.S. Code and appendices · legal_authorities
The purpose of this chapter is to provide that Federal financial and public policy interests in real estate related transactions will be protected by requiring that real estate appraisals utilized in connection with federally related transactions are performed in writing, in accordance with uniform standards, by individuals whose competency has been demonstrated and whose professional conduct will be subject to effective supervision.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Ability to repay**
(1) **In general** — In accordance with regulations prescribed by the Bureau, no creditor may make a residential mortgage loan unless the creditor makes a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated, the consumer has a reasonable ability to repay the loan, according to its terms, and all applicable taxes, insurance (including mortgage guarantee insurance), and assessments.
(2) **Multiple loans** — If the creditor knows, or has reason to know, that 1 or more residential mortgage loans secured by the same dwelling will be made to the same consumer, the creditor shall make a reasonable and good faith determination, based on verified and documented information, that the consumer has a reasonable ability to repay the combined payments of all loans on the same dwelling according to the terms of those loans and all applicable taxes, insurance (including mortgage guarantee insurance), and assessments.
(3) **Basis for determination** — A determination under this subsection of a consumer’s ability to repay a residential mortgage loan shall include consideration of the consumer’s credit history, current income, expected income the consumer is reasonably assured of receiving, current obligations, debt-to-income ratio or the residual income the consumer will have after paying non-mortgage debt and mortgage-related obligations, employment status, and other financial resources other than the consumer’s equity in the dwelling or real property that secures repayment of the loan. A creditor shall determine the ability of the consumer to repay using a payment schedule that fully amortizes the loan over the term of the loan.
(4) **Income verification** — A creditor making a resid
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Federal law — U.S. Code and appendices · legal_authorities
Except as otherwise provided in this title,11 See References in Text note below. for purposes of this title,1 the following definitions shall apply:
(1) **Affiliate** — The term “affiliate” means any person that controls, is controlled by, or is under common control with another person.
(2) **Bureau** — The term “Bureau” means the Bureau of Consumer Financial Protection.
(3) **Business of insurance** — The term “business of insurance” means the writing of insurance or the reinsuring of risks by an insurer, including all acts necessary to such writing or reinsuring and the activities relating to the writing of insurance or the reinsuring of risks conducted by persons who act as, or are, officers, directors, agents, or employees of insurers or who are other persons authorized to act on behalf of such persons.
(4) **Consumer** — The term “consumer” means an individual or an agent, trustee, or representative acting on behalf of an individual.
(5) **Consumer financial product or service** — The term “consumer financial product or service” means any financial product or service that is described in one or more categories under—
(A) paragraph (15) and is offered or provided for use by consumers primarily for personal, family, or household purposes; or
(B) clause (i), (iii), (ix), or (x) of paragraph (15)(A), and is delivered, offered, or provided in connection with a consumer financial product or service referred to in subparagraph (A).
(6) **Covered person** — The term “covered person” means—
(A) any person that engages in offering or providing a consumer financial product or service; and
(B) any affiliate of a person described in subparagraph (A) if such affiliate acts as a service provider to such person.
(7) **Credit** — The term “credit” means the right
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5494
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Federal law — U.S. Code and appendices · legal_authorities
Page 1521
TITLE 12—BANKS AND BANKING
§ 3332
1 So in original. The word ‘‘and’’ probably should not appear.
2 So in original. Probably should be ‘‘compliance; and’’.
as part of the Omnibus Consolidated Appropriations
Act, 1997, and not as part of the Federal Financial In-
stitutions Examination Council Act of 1978 which com-
prises this chapter.
CHAPTER 34A—APPRAISAL SUBCOMMITTEE
OF
FEDERAL
FINANCIAL
INSTITUTIONS
EXAMINATION COUNCIL
Sec.
3331.
Purpose.
3332.
Functions of Appraisal Subcommittee.
3333.
Chairperson of Appraisal Subcommittee; term
of Chairperson; meetings.
3334.
Officers and staff.
3335.
Powers of Appraisal Subcommittee.
3336.
Procedures for establishing appraisal stand-
ards and requiring use of certified and li-
censed appraisers.
3337.
Startup funding.
3338.
Roster of State certified or licensed apprais-
ers; authority to collect and transmit fees.
3339.
Functions of Federal financial institutions
regulatory agencies relating to appraisal
standards.
3340.
Time for proposal and adoption of standards.
3341.
Functions of Federal financial institutions
regulatory agencies relating to appraiser
qualifications.
3342.
Transactions requiring services of State cer-
tified appraiser.
3343.
Transactions requiring services of State li-
censed appraiser.
3344.
Time for proposal and adoption of rules.
3345.
Certification and licensing requirements.
3346.
Establishment of State appraiser certifying
and licensing agencies.
3347.
Monitoring of State appraiser certifying and
licensing agencies.
3348.
Recognition of State certified and licensed
appraisers for purposes of this chapter.
3349.
Violations in obtaining and performing ap-
praisals in federally related transactions.
3350.
Definitions.
3351.
Miscellaneous p
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 3331
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Federal law — U.S. Code and appendices · legal_authorities
Page 1520
TITLE 15—COMMERCE AND TRADE
§ 1639f
(g), the Home Valuation Code of Conduct an-
nounced by the Federal Housing Finance Agency
on December 23, 2008, shall have no force or ef-
fect.
(k) Penalties
(1) First violation
In addition to the enforcement provisions re-
ferred to in section 1640 of this title, each per-
son who violates this section shall forfeit and
pay a civil penalty of not more than $10,000 for
each day any such violation continues.
(2) Subsequent violations
In the case of any person on whom a civil
penalty has been imposed under paragraph (1),
paragraph (1) shall be applied by substituting
‘‘$20,000’’ for ‘‘$10,000’’ with respect to all sub-
sequent violations.
(3) Assessment
The agency referred to in subsection (a) or
(c) of section 1607 of this title with respect to
any person described in paragraph (1) shall as-
sess any penalty under this subsection to
which such person is subject.
(Pub. L. 90–321, title I, § 129E, as added Pub. L.
111–203, title XIV, § 1472(a), July 21, 2010, 124 Stat.
2187; amended Pub. L. 115–174, title I, § 102, May
24, 2018, 132 Stat. 1299.)
Editorial Notes
AMENDMENTS
2018—Subsec. (i)(2). Pub. L. 115–174 designated exist-
ing provisions as subpar. (A) and inserted heading, re-
designated former subpars. (A) and (B) as cls. (i) and
(ii), respectively, of subpar. (A) and realigned margins,
and added subpar. (B).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective on the date on which final regula-
tions implementing such section take effect, or on the
date that is 18 months after the designated transfer
date if such regulations have not been issued by that
date, see section 1400(c) of Pub. L. 111–203, set out as an
Effective Date of 2010 Amendment note under section
1601
Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 1639h
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