12 U.S.C. § 3352 — Emergency exceptions for disaster areas

Page 1531 TITLE 12—BANKS AND BANKING § 3352 appraisal is prepared by individuals certified or licensed in accordance with the requirements of this chapter. An individual who is not a State certified or licensed appraiser may assist in the preparation of an appraisal if— (1) the assistant is under the direct super- vision of a licensed or certified individual; and (2) the final appraisal document is approved and signed by an individual who is certified or licensed. (f) Studies (1) Study The Appraisal Subcommittee shall— (A) conduct a study to determine whether real estate sales and financing information and data that is available to real estate ap- praisers in the States is sufficient to permit appraisers to properly estimate the values of properties in connection with federally re- lated transactions; and (B) study the feasibility and desirability of extending the provisions of this chapter to the function of personal property appraising and to personal property appraisers in con- nection with Federal financial and public policy interests. (2) Report The Appraisal Subcommittee shall— (A) report its findings to the Congress with respect to the study described in paragraph (1)(A) no later than 12 months after August 9, 1989, and (B) report its findings with respect to the study described in paragraph (1)(B) to Con- gress not later than 18 months after August 9, 1989. (g) Appraiser independence monitoring The Appraisal Subcommittee shall monitor each State appraiser certifying and licensing agency for the purpose of determining whether such agency’s policies, practices, and procedures are consistent with the purposes of maintaining appraiser independence and whether such State has adopted and maintains effective laws, regu- lations, and policies aimed at maintaining ap- praiser independence. (h) Approved education The Appraisal Subcommittee shall encourage the States to accept courses approved by the Ap- praiser Qualification Board’s Course Approval Program. (i) Appraisal complaint national hotline If, 6 months after July 21, 2010, the Appraisal Subcommittee determines that no national hot- line exists to receive complaints of non-compli- ance with appraisal independence standards and Uniform Standards of Professional Appraisal Practice, including complaints from appraisers, individuals, or other entities concerning the im- proper influencing or attempted improper influ- encing of appraisers or the appraisal process, the Appraisal Subcommittee shall establish and op- erate such a national hotline, which shall in- clude a toll-free telephone number and an email address. If the Appraisal Subcommittee operates such a national hotline, the Appraisal Sub- committee shall refer complaints for further ac- tion to appropriate governmental bodies, includ- ing a State appraiser certifying and licensing agency, a financial institution regulator, or other appropriate legal authorities. For com- plaints referred to State appraiser certifying and licensing agencies or to Federal regulators, the Appraisal Subcommittee shall have the au- thority to follow up such complaint referrals in order to determine the status of the resolution of the complaint. (Pub. L. 101–73, title XI, § 1122, Aug. 9, 1989, 103 Stat. 518; Pub. L. 103–325, title III, § 315, Sept. 23, 1994, 108 Stat. 2222; Pub. L. 111–203, title XIV, § 1473(l)–(p), (t)(4), July 21, 2010, 124 Stat. 2196, 2197, 2199.) Editorial Notes AMENDMENTS 2010—Subsec. (a)(1)(A) to (C). Pub. L. 111–203, § 1473(t)(4)(A), realigned margins. Subsec. (b). Pub. L. 111–203, § 1473(l), amended subsec. (b) generally. Prior to amendment, text read as follows: ‘‘The Appraisal Subcommittee shall encourage the States to develop reciprocity agreements that readily authorize appraisers who are licensed or certified in one State (and who are in good standing with their State appraiser certifying or licensing agency) to per- form appraisals in other States.’’ Subsec. (c). Pub. L. 111–203, § 1473(t)(4)(B), substituted ‘‘Financial Institutions Examination Council’’ for ‘‘Federal Financial Institutions Examination Council’’ and ‘‘the Council’s functions’’ for ‘‘the council’s func- tions’’. Subsec. (d). Pub. L. 111–203, § 1473(m), substituted ‘‘may include education achieved, experience, sample appraisals, and references from prior clients. Member- ship in a nationally recognized professional appraisal organization may be a criteria considered, though lack of membership therein shall not be the sole bar against consideration for an assignment under these criteria.’’ for ‘‘shall not exclude a certified or licensed appraiser for consideration for an assignment solely by virtue of membership or lack of membership in any particular appraisal organization.’’ Subsec. (g). Pub. L. 111–203, § 1473(n), added subsec. (g). Subsec. (h). Pub. L. 111–203, § 1473(o), added subsec. (h). Subsec. (i). Pub. L. 111–203, § 1473(p), added subsec. (i). 1994—Subsec. (a). Pub. L. 103–325, § 315(3), redesignated existing provisions as par. (1), inserted heading, redes- ignated former pars. (1) to (3) as subpars. (A) to (C) of par. (1), and added par. (2). Subsecs. (b) to (f). Pub. L. 103–325, § 315(1), (2), added subsec. (b) and redesignated former subsecs. (b) to (e) as (c) to (f), respectively. 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. § 3352. Emergency exceptions for disaster areas (a) In general Each Federal financial institutions regulatory agency may, by regulation or order, make ex- ceptions to this chapter, and to standards pre- scribed pursuant to this chapter, for trans- Page 1532 TITLE 12—BANKS AND BANKING § 3353 actions involving institutions for which the agency is the primary Federal regulator with re- spect to real property located within a disaster area if the agency— (1) makes the exception not later than 30 months after the date on which the President determines, pursuant to section 5170 of title 42, that a major disaster exists in the area; and (2) determines that the exception— (A) would facilitate recovery from the major disaster; and (B) is consistent with safety and sound- ness. (b) 3-year limit on exceptions Any exception made under this section shall expire not later than 3 years after the date of the determination referred to in subsection (a)(1). (c) Publication required Any Federal financial institutions regulatory agency shall publish in the Federal Register a statement that— (1) describes any exception made under this section; and (2) explains how the exception— (A) would facilitate recovery from the major disaster; and (B) is consistent with safety and sound- ness. (d) ‘‘Disaster area’’ defined For purposes of this section, the term ‘‘dis- aster area’’ means an area in which the Presi- dent, pursuant to section 5170 of title 42, has de- termined that a major disaster exists. (Pub. L. 101–73, title XI, § 1123, as added Pub. L. 102–485, § 2, Oct. 23, 1992, 106 Stat. 2771.) § 3353. Appraisal management company min- imum requirements (a) In general The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Na- tional Credit Union Administration Board, the Federal Housing Finance Agency, and the Bu- reau of Consumer Financial Protection shall jointly, by rule, establish minimum require- ments to be applied by a State in the registra- tion of appraisal management companies. Such requirements shall include a requirement that such companies— (1) register with and be subject to super- vision by a State appraiser certifying and li- censing agency in each State in which such company operates; (2) verify that only licensed or certified ap- praisers are used for federally related trans- actions; (3) require that appraisals coordinated by an appraisal management company comply with the Uniform Standards of Professional Ap- praisal Practice; and (4) require that appraisals are conducted independently and free from inappropriate in- fluence and coercion pursuant to the appraisal independence standards established under sec- tion 1639e of title 15. (b) Relation to State law Nothing in this section shall be construed to prevent States from establishing requirements in addition to any rules promulgated under sub- section (a). (c) Federally regulated financial institutions The requirements of subsection (a) shall apply to an appraisal management company that is a subsidiary owned and controlled by a financial institution and regulated by a Federal financial institution regulatory agency. An appraisal management company that is a subsidiary owned and controlled by a financial institution regulated by a Federal financial institution reg- ulatory agency shall not be required to register with a State. (d) Registration limitations An appraisal management company shall not be registered by a State or included on the na- tional registry if such company, in whole or in part, directly or indirectly, is owned by any per- son who has had an appraiser license or certifi- cate refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any State. Ad- ditionally, each person that owns more than 10 percent of an appraisal management company shall be of good moral character, as determined by the State appraiser certifying and licensing agency, and shall submit to a background inves- tigation carried out by the State appraiser cer- tifying and licensing agency. (e) Reporting The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Na- tional Credit Union Administration Board, the Federal Housing Finance Agency, and the Bu- reau of Consumer Financial Protection shall jointly promulgate regulations for the reporting of the activities of appraisal management com- panies to the Appraisal Subcommittee in deter- mining the payment of the annual registry fee. (f) Effective date (1) In general No appraisal management company may perform services related to a federally related transaction in a State after the date that is 36 months after the date on which the regula- tions required to be prescribed under sub- section (a) are prescribed in final form unless such company is registered with such State or subject to oversight by a Federal financial in- stitutions regulatory agency. (2) Extension of effective date Subject to the approval of the Council, the Appraisal Subcommittee may extend by an ad- ditional 12 months the requirements for the registration and supervision of appraisal man- agement companies if it makes a written find- ing that a State has made substantial progress in establishing a State appraisal management company registration and supervision system that appears to conform with the provisions of this chapter. (Pub. L. 101–73, title XI, § 1124, as added Pub. L. 111–203, title XIV, § 1473(f)(2), July 21, 2010, 124 Stat. 2192.)