12 U.S.C. § 3341 — Functions of Federal financial institutions

Page 1525 TITLE 12—BANKS AND BANKING § 3341 Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the date on which final regulations implementing that amend- ment 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 a note under section 1601 of Title 15, Commerce and Trade. § 3340. Time for proposal and adoption of stand- ards Appraisal standards established under this chapter shall be proposed not later than 6 months and shall be adopted in final form and become effective not later than 12 months after August 9, 1989. (Pub. L. 101–73, title XI, § 1111, Aug. 9, 1989, 103 Stat. 514.) § 3341. Functions of Federal financial institutions regulatory agencies relating to appraiser qualifications (a) In general Each Federal financial institutions regulatory agency and the Resolution Trust Corporation shall prescribe, in accordance with sections 3342 and 3343 of this title, which categories of feder- ally related transactions should be appraised by a State certified appraiser and which by a State licensed appraiser under this chapter. (b) Threshold level Each Federal financial institutions regulatory agency and the Resolution Trust Corporation may establish a threshold level at or below which a certified or licensed appraiser is not re- quired to perform appraisals in connection with federally related transactions, if such agency de- termines in writing that such threshold level does not represent a threat to the safety and soundness of financial institutions, and receives concurrence from the Bureau of Consumer Fi- nancial Protection that such threshold level provides reasonable protection for consumers who purchase 1–4 unit single-family residences. (c) GAO study of appraisals in connection with real estate related financial transactions below threshold level (1) GAO studies The Comptroller General of the United States may conduct, under such conditions as the Comptroller General determines appro- priate, studies on the adequacy and quality of appraisals or evaluations conducted in connec- tion with real estate related financial trans- actions below the threshold level established under subsection (b), taking into account— (A) the cost to any financial institution in- volved in any such transaction; (B) the possibility of losses to the Deposit Insurance Fund or the National Credit Union Share Insurance Fund; (C) the cost to any customer involved in any such transaction; and (D) the effect on low-income housing. (2) Reports to Congress and the appropriate Federal financial institutions regulatory agencies Upon completing each of the studies referred to in paragraph (1), the Comptroller General shall submit a report on the Comptroller Gen- eral’s findings and conclusions with respect to such study to the Federal financial institu- tions regulatory agencies, the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate, together with such recommendations for legislative or administrative action as the Comptroller General determines to be appro- priate. (Pub. L. 101–73, title XI, § 1112, Aug. 9, 1989, 103 Stat. 514; Pub. L. 102–550, title IX, § 954, Oct. 28, 1992, 106 Stat. 3894; Pub. L. 104–208, div. A, title II, § 2704(d)(15)(B), Sept. 30, 1996, 110 Stat. 3009–495; Pub. L. 104–316, title I, § 106(g), Oct. 19, 1996, 110 Stat. 3831; Pub. L. 109–171, title II, § 2102(b), Feb. 8, 2006, 120 Stat. 9; Pub. L. 109–173, § 9(g)(2), Feb. 15, 2006, 119 Stat. 3618; Pub. L. 111–203, title XIV, § 1473(a), July 21, 2010, 124 Stat. 2190.) Editorial Notes AMENDMENTS 2010—Subsec. (b). Pub. L. 111–203 inserted ‘‘, and re- ceives concurrence from the Bureau of Consumer Fi- nancial Protection that such threshold level provides reasonable protection for consumers who purchase 1–4 unit single-family residences’’ before the period. 2006—Subsec. (c)(1)(B). Pub. L. 109–173 substituted ‘‘Deposit Insurance Fund’’ for ‘‘Bank Insurance Fund, the Savings Association Insurance Fund,’’. Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(15)(B). See 1996 Amendment note below. 1996—Subsec. (c)(1). Pub. L. 104–316, § 106(g)(1)(A), (2), in heading substituted ‘‘GAO studies’’ for ‘‘Study re- quired’’, and in text substituted ‘‘The Comptroller Gen- eral of the United States may conduct, under such con- ditions as the Comptroller General determines appro- priate, studies’’ for ‘‘At the end of the 18-month period, and the end of the 36-month period, beginning on Octo- ber 28, 1992, the Comptroller General of the United States shall conduct a study’’. Subsec. (c)(1)(B). Pub. L. 104–208, § 2704(d)(15)(B), which directed substitution of ‘‘Deposit Insurance Fund’’ for ‘‘Bank Insurance Fund, the Savings Associa- tion Insurance Fund,’’, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above. Subsec. (c)(2). Pub. L. 104–316, § 106(g)(1)(B), sub- stituted ‘‘referred to in’’ for ‘‘required under’’. 1992—Pub. L. 102–550 designated existing provisions as subsec. (a), inserted heading, and added subsecs. (b) and (c). Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the date on which final regulations implementing that amend- Page 1526 TITLE 12—BANKS AND BANKING § 3342 ment 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 a note under section 1601 of Title 15, Commerce and Trade. EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 9(j) of Pub. L. 109–173, set out as a note under section 24 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–208 effective Jan. 1, 1999, if no insured depository institution is a savings asso- ciation on that date, see section 2704(c) of Pub. L. 104–208, formerly set out as a note under section 1821 of this title. § 3342. Transactions requiring services of State certified appraiser In determining whether an appraisal in con- nection with a federally related transaction shall be performed by a State certified ap- praiser, an agency or instrumentality under this chapter shall consider whether transactions, ei- ther individually or collectively, are of suffi- cient financial or public policy importance to the United States that an individual who per- forms an appraisal in connection with such transactions should be a State certified ap- praiser, except that— (1) a State certified appraiser shall be re- quired for all federally related transactions having a value of $1,000,000 or more; and (2) 1-to-4 unit, single family residential ap- praisals may be performed by State licensed appraisers unless the size and complexity re- quires a State certified appraiser, where a complex 1-to-4 unit single family residential appraisal means an appraisal for which the property to be appraised, the form of owner- ship, the property characteristics, or the mar- ket conditions are atypical. (Pub. L. 101–73, title XI, § 1113, Aug. 9, 1989, 103 Stat. 514; Pub. L. 111–203, title XIV, § 1473(e)(2), July 21, 2010, 124 Stat. 2191.) Editorial Notes AMENDMENTS 2010—Par. (2). Pub. L. 111–203 inserted ‘‘, where a complex 1-to-4 unit single family residential appraisal means an appraisal for which the property to be ap- praised, the form of ownership, the property character- istics, or the market conditions are atypical’’ before the period. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the date on which final regulations implementing that amend- ment 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 a note under section 1601 of Title 15, Commerce and Trade. § 3343. Transactions requiring services of State licensed appraiser All federally related transactions not requir- ing the services of a State certified appraiser shall be performed by either a State certified or licensed appraiser. (Pub. L. 101–73, title XI, § 1114, Aug. 9, 1989, 103 Stat. 514.) § 3344. Time for proposal and adoption of rules As appropriate, rules issued under sections 3342 and 3343 of this title shall be proposed not later than 6 months and shall be effective upon adoption in final form not later than 12 months after August 9, 1989. (Pub. L. 101–73, title XI, § 1115, Aug. 9, 1989, 103 Stat. 515.) § 3345. Certification and licensing requirements (a) In general For purposes of this chapter, the term ‘‘State certified real estate appraiser’’ means any indi- vidual who has satisfied the requirements for State certification in a State or territory whose criteria for certification as a real estate ap- praiser currently meets the minimum criteria for certification issued by the Appraiser Quali- fication Board of the Appraisal Foundation. (b) Restriction No individual shall be a State certified real es- tate appraiser under this section unless such in- dividual has achieved a passing grade upon a suitable examination administered by a State or territory that is consistent with and equivalent to the Uniform State Certification Examination issued or endorsed by the Appraiser Qualifica- tion Board of the Appraisal Foundation. (c) ‘‘State licensed appraiser’’ defined As used in this section, the term ‘‘State li- censed appraiser’’ means an individual who has satisfied the requirements for State licensing in a State or territory whose criteria for the li- censing of a real estate appraiser currently meet or exceed the minimum criteria issued by the Appraisal Qualifications Board of The Appraisal Foundation for the licensing of real estate ap- praisers. (d) Additional qualification criteria Nothing in this chapter shall be construed to prevent any Federal agency or instrumentality under this chapter from establishing such addi- tional qualification criteria as may be necessary or appropriate to carry out the statutory re- sponsibilities of such department, agency, or in- strumentality. (e) Minimum qualification requirements Any requirements established for individuals in the position of ‘‘Trainee Appraiser’’ and ‘‘Su- pervisory Appraiser’’ shall meet or exceed the minimum qualification requirements of the Ap- praiser Qualifications Board of The Appraisal Foundation. The Appraisal Subcommittee shall have the authority to enforce these require- ments. (Pub. L. 101–73, title XI, § 1116, Aug. 9, 1989, 103 Stat. 515; Pub. L. 102–233, title VII, § 701(a), Dec.