15 U.S.C. § 1639h — Property appraisal requirements

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 of this title. § 1639f. Requirements for prompt crediting of home loan payments (a) In general In connection with a consumer credit trans- action secured by a consumer’s principal dwell- ing, no servicer shall fail to credit a payment to the consumer’s loan account as of the date of re- ceipt, except when a delay in crediting does not result in any charge to the consumer or in the reporting of negative information to a consumer reporting agency, except as required in sub- section (b). (b) Exception If a servicer specifies in writing requirements for the consumer to follow in making payments, but accepts a payment that does not conform to the requirements, the servicer shall credit the payment as of 5 days after receipt. (Pub. L. 90–321, title I, § 129F, as added Pub. L. 111–203, title XIV, § 1464(a), July 21, 2010, 124 Stat. 2184.) 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 of this title. § 1639g. Requests for payoff amounts of home loan A creditor or servicer of a home loan shall send an accurate payoff balance within a reason- able time, but in no case more than 7 business days, after the receipt of a written request for such balance from or on behalf of the borrower. (Pub. L. 90–321, title I, § 129G, as added Pub. L. 111–203, title XIV, § 1464(b), July 21, 2010, 124 Stat. 2184.) 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 of this title. § 1639h. Property appraisal requirements (a) In general A creditor may not extend credit in the form of a higher-risk mortgage to any consumer with- out first obtaining a written appraisal of the property to be mortgaged prepared in accord- ance with the requirements of this section. (b) Appraisal requirements (1) Physical property visit Subject to the rules prescribed under para- graph (4), an appraisal of property to be se- cured 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 cir- cumstances (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 prop- erty, the creditor shall obtain a second ap- praisal 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 im- provements 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. Page 1521 TITLE 15—COMMERCE AND TRADE § 1640 (3) Certified or licensed appraiser defined For purposes of this section, the term ‘‘cer- tified or licensed appraiser’’ means a person who— (A) is, at a minimum, certified or licensed by the State in which the property to be ap- praised is located; and (B) performs each appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and title XI of the Finan- cial Institutions Reform, Recovery, and En- forcement Act of 1989 [12 U.S.C. 3331 et seq.], and the regulations prescribed under such title, as in effect on the date of the ap- praisal. (4) Regulations (A) In general The Board, the Comptroller of the Cur- rency, the Federal Deposit Insurance Cor- poration, the National Credit Union Admin- istration Board, the Federal Housing Fi- nance Agency, and the Bureau shall jointly prescribe regulations to implement this sec- tion. (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 credi- tors. (c) Free copy of appraisal A creditor shall provide 1 copy of each ap- praisal conducted in accordance with this sec- tion 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 applica- tion, 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 per- son under this subchapter, a creditor found to have willfully failed to obtain an appraisal as re- quired in this section shall be liable to the appli- cant 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, secured by a principal dwelling— (1) that is not a qualified mortgage, as de- fined in section 1639c of this title; and (2) with an annual percentage rate that ex- ceeds the average prime offer rate for a com- parable transaction, as defined in section 1639c of this title, 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; (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 max- imum limitation on the original principal obligation of mortgage in effect for a resi- dence 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; and (C) by 3.5 or more percentage points for a subordinate lien residential mortgage loan. (Pub. L. 90–321, title I, § 129H, as added Pub. L. 111–203, title XIV, § 1471, July 21, 2010, 124 Stat. 2185.) Editorial Notes REFERENCES IN TEXT The Financial Institutions Reform, Recovery, and Enforcement Act of 1989, referred to in subsec. (b)(3)(B), is Pub. L. 101–73, Aug. 9, 1989, 103 Stat. 183. Title XI of the Act is classified principally to chapter 34A (§ 3331 et seq.) of Title 12, Banks and Banking. For complete clas- sification of this Act to the Code, see Short Title of 1989 Amendment note set out under section 1811 of Title 12 and Tables. 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 of this title. § 1640. Civil liability (a) Individual or class action for damages; amount of award; factors determining amount of award Except as otherwise provided in this section, any creditor who fails to comply with any re- quirement imposed under this part, including any requirement under section 1635 of this title, subsection (f) or (g) of section 1641 of this title, or part D or E of this subchapter with respect to any person is liable to such person in an amount equal to the sum of— (1) any actual damage sustained by such per- son as a result of the failure; (2)(A)(i) in the case of an individual action twice the amount of any finance charge in connection with the transaction, (ii) in the case of an individual action relating to a con- sumer lease under part E of this subchapter, 25 per centum of the total amount of monthly payments under the lease, except that the li- ability under this subparagraph shall not be less than $200 nor greater than $2,000, (iii) in the case of an individual action relating to an open end consumer credit plan that is not se- cured by real property or a dwelling, twice the