43966 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Notices 

1The ASC Board is comprised of seven members. 

Five members are designated by the heads of the 

FFIEC agencies (Board of Governors of the Federal 

Reserve System [Board], Consumer Financial 

Protection Bureau [CFPB], Federal Deposit 

Insurance Corporation [FDIC], Office of the 

Comptroller of the Currency [OCC], and National 

Credit Union Administration [NCUA]). The other 

two members are designated by the heads of the 

Department of Housing and Urban Development 

(HUD) and the Federal Housing Finance Agency 

(FHFA). 

2Refers to any real estate related financial 

transaction which: (a) A federal financial 

institutions regulatory agency engages in, contracts 

for, or regulates; and (b) requires the services of an 

appraiser. (Title XI § 1121(4), 12 U.S.C. 3350.) 

3The 50 States, the District of Columbia, and four 

Territories, which are the Commonwealth of Puerto 

Rico, Commonwealth of the Northern Mariana 

Islands, Guam, and United States Virgin Islands. 

4Public Law 111–203, 124 Stat. 1376. 

5Title XI § 1103(a)(1)(B), 12 U.S.C. 3332. 

6The Dodd-Frank Act added section 1124 to Title 

XI, Appraisal Management Company Minimum 

Requirements, which required the OCC, Board, 

FDIC, NCUA, CFPB, and FHFA to establish, by rule, 

minimum requirements for the registration and 

supervision of AMCs by States that elect to register 

and supervise AMCs pursuant to Title XI and the 

rules promulgated thereunder. (Title XI § 1124(a), 

12 U.S.C. 3353(a).) Those rules were finalized and 

published on June 9, 2015, at 80 Federal Register 

32658 with an effective date of August 10, 2015. (12 

CFR 34.210–34.216; 12 CFR 225.190–225.196; 12 

CFR 323.8–323.14; 12 CFR 1222.20–1222.26) 

CONTACT PERSON FOR MORE INFORMATION: 

Judith Ingram, Press Officer, Telephone: 

(202) 694–1220. 

Dayna C. Brown, 

Secretary and Clerk of the Commission. 

[FR Doc. 2017–20098 Filed 9–18–17; 11:15 am] 

BILLING CODE 6715–01–P 

FEDERAL FINANCIAL INSTITUTIONS 

EXAMINATION COUNCIL 

[Docket No. AS17–06] 

Appraisal Subcommittee; Proposed 

Revised Policy Statements 

AGENCY: Appraisal Subcommittee of the 

Federal Financial Institutions 

Examination Council. 

ACTION: Proposed Revised Policy 

Statements. 

SUMMARY: The Appraisal Subcommittee 

(ASC) of the Federal Financial 

Institutions Examination Council 

requests public comment on a proposal 

to revise ASC Policy Statements 

(proposed Policy Statements). The 

proposed Policy Statements provide 

guidance to ensure State appraiser 

regulatory programs comply with Title 

XI of the Financial Institutions Reform, 

Recovery, and Enforcement Act of 1989, 

as amended, and the rules promulgated 

thereunder. The proposed Policy 

Statements would supersede the current 

ASC Policy Statements. The ASC 

previously published the Proposed 

Revised Policy Statements on January 

10, 2017, under Docket Number AS17– 

01. The comment period was scheduled 

to close on April 10, 2017. The ASC 

suspended the comment period in 

response to the White House Chief of 

Staff Memorandum titled Regulatory 

Freeze Pending Review, signed on 

January 20, 2017, pending review by the 

Office of Management and Budget 

(OMB). Technical edits for clarification 

have been made to the proposed Policy 

Statements since the initial publication, 

which are addressed below in 

Supplementary Information, section III, 

Statement-by-Statement. 

DATES: Comments must be received on 

or before November 20, 2017. 

ADDRESSES: Commenters are encouraged 

to submit comments by the Federal 

eRulemaking Portal or email, if possible. 

You may submit comments, identified 

by Docket Number AS17–06, by any of 

the following methods: 

• Federal eRulemaking Portal: 

https://www.Regulations.gov. Follow 

the instructions for submitting 

comments. Click on the ‘‘Help’’ tab on 

the Regulations.gov home page to get 

information on using Regulations.gov, 

including instructions for submitting 

public comments. 

• E-Mail: webmaster@asc.gov. Include 

the docket number in the subject line of 

the message. 

• Fax: (202) 289–4101. Include 

docket number on fax cover sheet. 

• Mail: Address to Appraisal 

Subcommittee, Attn: Lori Schuster, 

Management and Program Analyst, 1401 

H Street NW., Suite 760, Washington, 

DC 20005. 

• Hand Delivery/Courier: 1401 H 

Street NW., Suite 760, Washington, DC 

20005. 

In general, the ASC will enter all 

comments received into the docket and 

publish those comments on the Federal 

eRulemaking (Regulations.gov) Web site 

without change, including any business 

or personal information that you 

provide, such as name and address 

information, email addresses, or phone 

numbers. Comments received, including 

attachments and other supporting 

materials, are part of the public record 

and subject to public disclosure. Do not 

enclose any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. At 

the close of the comment period, all 

public comments will also be made 

available on the ASC’s Web site at 

https://www.asc.gov (follow link in 

‘‘What’s New’’) as submitted, unless 

modified for technical reasons. 

You may review comments by any of 

the following methods: 

• Viewing Comments Electronically: 

Go to https://www.Regulations.gov. 

Enter ‘‘Docket ID AS17–06’’ in the 

Search box and click ‘‘Search.’’ Click on 

the ‘‘Help’’ tab on the Regulations.gov 

home page to get information on using 

Regulations.gov, including instructions 

for viewing public comments, viewing 

other supporting and related materials, 

and viewing the docket after the close 

of the comment period. 

• Viewing Comments Personally: You 

may personally inspect comments at the 

ASC office, 1401 H Street NW., Suite 

760, Washington, DC 20005. To make an 

appointment, please call Lori Schuster 

at (202) 595–7578. 

FOR FURTHER INFORMATION CONTACT: 

James R. Park, Executive Director, at 

(202) 595–7575, or Alice M. Ritter, 

General Counsel, at (202) 595–7577, 

Appraisal Subcommittee, 1401 H Street 

NW., Suite 760, Washington, DC 20005. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Title XI of the Financial Institutions 

Reform, Recovery, and Enforcement Act 

of 1989, as amended (Title XI), 

established the ASC.1 The purpose of 

Title XI is to provide protection of 

Federal financial and public policy 

interests by upholding Title XI 

requirements for appraisals performed 

for federally related transactions.2

Pursuant to Title XI, one of the ASC’s 

core functions is to monitor the 

requirements established by the States 3

for certification and licensing of 

appraisers qualified to perform 

appraisals in connection with federally 

related transactions. This is 

accomplished through periodic ASC 

Compliance Reviews of each State 

appraiser regulatory program (Appraiser 

Program) to determine compliance or 

lack thereof with Title XI, and to assess 

implementation of minimum 

requirements for credentialing of 

appraisers as adopted by the Appraiser 

Qualifications Board (The Real Property 

Appraiser Qualification Criteria or AQB 

Criteria). 

Title XI as amended by the DoddFrank Wall Street Reform and Consumer 

Protection Act of 2010 (Dodd-Frank 

Act) 4 expanded the ASC’s core 

functions to include monitoring of the 

requirements established by States that 

elect to register and supervise the 

operations and activities of appraisal 

management companies 5 (AMCs). 

States electing to register and supervise 

AMCs must implement minimum 

requirements in accordance with the 

AMC Rule.6 As a result, States with an 


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Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Notices 43967 

7These Policy Statements, adopted [date to be 

inserted when final], supersede all previous Policy 

Statements adopted by the ASC. 

AMC regulatory program (AMC 

Program) will be evaluated during the 

ASC’s Compliance Review to determine 

compliance or lack thereof with Title XI, 

and to assess implementation of the 

minimum requirements for State 

registration and supervision of AMCs as 

established by the AMC Rule. The 

amendments to Title XI by the DoddFrank Act also allow States with an 

AMC Program to add information about 

AMCs in their State to the National 

Registry of AMCs (AMC Registry). The 

proposed Policy Statements include 

guidance to the States regarding how 

AMC Programs will be evaluated during 

ASC Compliance Reviews. 

II. Overview of Proposed Policy 

Statements 

The ASC is issuing these proposed 

Policy Statements 7 in three parts to 

provide States with the necessary 

information to maintain their Appraiser 

Programs and AMC Programs in 

compliance with Title XI and the rules 

promulgated thereunder: 

➢ Part A, Appraiser Program—Policy 

Statements 1 through 7 correspond with 

the categories that are: (a) Evaluated 

during the Appraiser Program 

Compliance Review; and (b) included in 

the ASC’s Compliance Review Report of 

the Appraiser Program. 

➢ Part B, AMC Program—Policy 

Statements 8 through 11 correspond 

with the categories that are: (a) 

Evaluated during the AMC Program 

Compliance Review; and (b) included in 

the ASC’s Compliance Review Report of 

the AMC Program. 

➢ Part C, Interim Sanctions—Policy 

Statement 12 sets forth required 

procedures in the event that interim 

sanctions are imposed against a State by 

the ASC for non-compliance in either 

the Appraiser Program or the AMC 

Program. 

The proposal also includes two 

appendices: 

1. Appendix A provides an overview 

of the Compliance Review process; and 

2. Appendix B provides a glossary of 

terms. 

III. Statement-by-Statement 

The following provides a section by 

section highlight of changes presented 

in the proposed Policy Statements. 

Introduction and Purpose 

The ASC proposes to expand the 

introduction to include the monitoring 

of States that elect to register and 

supervise the operations and activities 

of AMCs, and to include an explanation 

of the proposed Policy Statements’ three 

parts and appendices. 

Part A: Appraiser Program 

Policy Statement 1: Statutes, 

Regulations, Policies and Procedures 

Governing State Appraiser Programs 

The ASC proposes to modify Policy 

Statement 1 to include a definition of 

trainee appraiser to better reflect how 

changes to Title XI affect Appraiser 

Programs with trainee requirements. 

Policy Statement 2: Temporary Practice 

The ASC proposes to modify Policy 

Statement 2 to clarify requirements for 

temporary practice and includes 

requirements to track temporary 

practice permits and maintain 

documentation. 

Policy Statement 3: National Registry of 

Appraisers 

The ASC proposes to modify Policy 

Statement 3 to clarify requirements 

regarding States’ submission of registry 

fees and eligibility of appraisers for the 

Appraiser Registry. 

Technical edits for clarification were 

made to Policy Statement 3 since the 

initial publication. The Summary of 

Requirements include the 5-day 

reporting requirement for disciplinary 

action consistent with the body of the 

Policy Statement, and clarify the 

requirement for States to adopt and 

implement a policy to protect right of 

access to the Appraiser Registry. 

Policy Statement 4: Application Process 

The ASC proposes to modify Policy 

Statement 4 to include additional 

guidance to States implementing AQB 

Criteria regarding the background of 

applicants for credentials and requires 

States to document applicant files with 

evidence supporting decisions made 

regarding individual appraisers. Policy 

Statement 4 as proposed also provides 

additional guidance on requirements for 

States to validate renewal requirements 

for appraisers and provides parameters 

for auditing education-related affidavits. 

Finally, Policy Statement 4 as proposed 

clarifies the requirement that States 

engage analysts who are knowledgeable 

about the Uniform Standards of 

Professional Appraisal Practice 

(USPAP) and document how the 

analysts are qualified. 

Technical edits for clarification were 

made to Policy Statement 4 since the 

initial publication. The section titled 

Processing of Applications refers to 

‘‘documentation’’ required rather than 

‘‘files.’’ In the section titled ‘‘Validation 

Procedures, Objectives and 

Requirements,’’ the subsection 

‘‘Selection of Work Product’’ is renamed 

‘‘Experience Hours Validation’’ to more 

accurately reflect the content of the 

subsection, and compliance with 

USPAP is moved to the following 

subsection titled ‘‘USPAP Compliance’’; 

the subsection ‘‘Determination of 

Experience Time Periods’’ no longer 

restates AQB Criteria, but rather 

requires that time periods conform with 

AQB Criteria; and ‘‘Supporting 

Documentation’’ clarifies 

documentation required. The Summary 

of Requirements were modified to 

conform with these technical edits. 

Policy Statement 5: Reciprocity 

The ASC proposes to modify Policy 

Statement 5 to include a requirement 

that States obtain and maintain 

sufficient relevant documentation 

pertaining to an application for issuance 

of a credential by reciprocity. 

Policy Statement 6: Education 

The ASC proposes to modify Policy 

Statement 6 to clarify that States may 

not continue to accept AQB approved 

courses after the AQB’s expiration date 

unless the course content is reviewed 

and approved by the State. 

Policy Statement 7: State Agency 

Enforcement 

The ASC proposes to modify Policy 

Statement 7 to clarify the requirement 

that States consider USPAP violations 

when investigating a complaint whether 

or not USPAP violations were the basis 

for the complaint. 

Technical edits for clarification were 

made to Policy Statement 7 since the 

initial publication. A footnote was 

added to clarify that the one-year period 

for resolution of complaints is not 

intended to have the impact of a statute 

of limitation. 

Part B: AMC Program 

As proposed, Policy Statements 8, 9 & 

10 duplicate the provisions of Policy 

Statements 1, 3 & 7 to every extent 

possible. The standard language is 

intentional and will create better 

understanding of the Policy Statements 

by the States as they will be able to 

anticipate how to comply based on their 

understanding of the Policy Statements 

they have been following. Differences 

are discussed below. 

Policy Statement 8: Statutes, 

Regulations, Policies and Procedures 

Governing State AMC Programs 

The ASC proposes a new Policy 

Statement 8 to reflect the statutory 

provision that States are not required to 

establish an AMC Program, but clarify 

for those States that establish AMC 


sradovich on DSKBBY8HB2PROD with NOTICES
43968 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Notices 

8The ASC board is made up of seven members. 

Five members are designated by the heads of the 

FFIEC agencies (Board of Governors of the Federal 

Reserve System, Bureau of Consumer Financial 

Protection, Federal Deposit Insurance Corporation, 

Office of the Comptroller of the Currency, and 

National Credit Union Administration). The other 

two members are designated by the heads of the 

Department of Housing and Urban Development 

and the Federal Housing Finance Agency. 

9See Appendix B, Glossary of Terms, for the 

definition of ‘‘State.’’ 

10See Appendix B, Glossary of Terms, for the 

definition of ‘‘federally related transaction.’’ 

11Public Law. 111–203, 124 Stat. 1376. 

Programs the ASC oversight during ASC 

Compliance Reviews. As proposed, 

Policy Statement 8 reiterates that States 

with an AMC Program must: (1) 

Establish and maintain an AMC 

Program with the legal authority and 

mechanisms consistent with the AMC 

Rule; (2) impose requirements on AMCs 

consistent with the AMC Rule; and (3) 

enforce and document ownership 

limitations for State-registered AMCs. 

As proposed, Policy Statement 8 

informs States that while they may have 

a more expansive definition of an AMC 

in their State statute, only AMCs that 

meet the federal definition in Title XI 

may be included on the AMC Registry. 

Policy Statement 9: National Registry of 

AMCs (AMC Registry) 

The ASC proposes a new Policy 

Statement 9 to clarify requirements for 

States with an AMC Program to 

maintain the AMC Registry in the same 

way they maintain the Appraiser 

Registry. 

Technical edits for clarification were 

made to Policy Statement 9 since the 

initial publication. The Summary of 

Requirements includes the requirement 

for States to adopt and implement a 

policy to protect right of access to the 

AMC Registry. 

Policy Statement 10: State Agency 

Enforcement 

The ASC proposes a new Policy 

Statement 10 to clarify requirements for 

States’ AMC enforcement programs in 

those States with an AMC Program. 

Policy Statement 11: Statutory 

Implementation Period 

The ASC proposes a new Policy 

Statement 11 to clarify the statutory 

implementation period and any 

extensions that may be granted. 

Part C: Interim Sanctions 

Policy Statement 12: Interim Sanctions 

The ASC proposes a new Policy 

Statement 12 which modifies existing 

Policy Statement 8 to clarify interim 

sanctions which may be imposed on 

State Programs when those programs 

fail to be effective. The proposed 

procedures include due process 

provisions and rules of evidence, and 

would establish timeliness for 

proceedings. 

IV. Request for Comment 

The ASC seeks comment on all 

aspects of the proposed Policy 

Statements. In addition, the ASC 

requests comments on whether the 

proposed Policy Statements provide 

State Programs with the necessary 

information to understand the ASC’s 

expectations during a Compliance 

Review. 

The text of the proposed Policy 

Statements is as follows: 

Contents 

Introduction and Purpose 

Part A: Appraiser Program 

Policy Statement 1 

Statutes, Regulations, Policies and 

Procedures Governing State Appraiser 

Programs 

A. State Regulatory Structure 

B. Funding and Staffing 

C. Minimum Criteria 

D. Federally Recognized Appraiser 

Classifications 

E. Non-Federally Recognized Credentials 

F. Appraisal Standards 

G. Exemptions 

H. ASC Staff Attendance at State Board 

Meetings 

I. Summary of Requirements 

Policy Statement 2 

Temporary Practice 

A. Requirement for Temporary Practice 

B. Excessive Fees or Burdensome 

Requirements 

C. Summary of Requirements 

Policy Statement 3 

National Registry of Appraisers 

A. Requirements for the National Registry 

of Appraisers 

B. Registry Fee and Invoicing Policies 

C. Access to Appraiser Registry Data 

D. Information Sharing 

E. Summary of Requirements 

Policy Statement 4 

Application Process 

A. Processing of Applications 

B. Qualifying Education for Initial or 

Upgrade Applications 

C. Continuing Education for Reinstatement 

and Renewal Applications 

D. Experience for Initial or Upgrade 

Applications 

E. Examination 

F. Summary of Requirements 

Policy Statement 5 

Reciprocity 

A. Reciprocity Policy 

B. Application of Reciprocity Policy 

C. Appraiser Compliance Requirements 

D. Well-Documented Application Files 

E. Summary of Requirements 

Policy Statement 6 

Education 

A. Course Approval 

B. Distance Education 

C. Summary of Requirements 

Policy Statement 7 

State Agency Enforcement 

A. State Agency Regulatory Program 

B. Enforcement Process 

C. Summary of Requirements 

Part B: AMC Program 

Policy Statement 8 

Statutes, Regulations, Policies and 

Procedures Governing State AMC 

Programs 

A. Participating States and ASC Oversight 

B. Relation to State Law 

C. Funding and Staffing 

D. Minimum Requirements for Registration 

and Supervision of AMCs as Established 

by the AMC Rule 

E. Summary of Requirements 

Policy Statement 9 

National Registry of AMCs (AMC Registry) 

A. Requirements for the AMC Registry 

B. Registry Fee and Invoicing Policies 

C. Reporting Requirements 

D. Access to AMC Registry Data 

E. Summary of Requirements 

Policy Statement 10 

State Agency Enforcement 

A. State Agency Regulatory Program 

B. Enforcement Process 

C. Summary of Requirements 

Policy Statement 11 

Statutory Implementation Period 

Part C: Interim Sanctions 

Policy Statement 12 

Interim Sanctions 

A. Authority 

B. Opportunity to be Heard or Correct 

Conditions 

C. Procedures 

Appendices 

Appendix A—Compliance Review Process 

Appendix B—Glossary of Terms 

Introduction and Purpose 

Title XI of the Financial Institutions 

Reform, Recovery, and Enforcement Act 

of 1989 as amended (Title XI) 

established the Appraisal Subcommittee 

of the Federal Financial Institutions 

Examination Council (ASC).8 The 

purpose of Title XI is to provide 

protection of Federal financial and 

public policy interests by upholding 

Title XI requirements for appraisals 

performed for federally related 

transactions. Specifically, those 

appraisals shall be 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. 

Pursuant to Title XI, one of the ASC’s 

core functions is to monitor the 

requirements established by the States 9

for certification and licensing of 

appraisers qualified to perform 

appraisals in connection with federally 

related transactions.10 Title XI as 

amended by the Dodd-Frank Wall Street 

Reform and Consumer Protection Act of 

2010 (Dodd-Frank Act) 11 expanded the 

ASC’s core functions to include 

monitoring of the requirements 

established by States that elect to 


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Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Notices 43969 

12Title XI § 1103(a)(1)(B), 12 U.S.C. 3332. 

13See Appendix B, Glossary of Terms, for the 

definition of ‘‘appraisal management company’’ or 

AMC. 

14See Appendix A, Compliance Review Process. 

15The Dodd-Frank Act required the Office of the 

Comptroller of the Currency; Board of Governors of 

the Federal Reserve System; Federal Deposit 

Insurance Corporation; National Credit Union 

Administration; Bureau of Consumer Financial 

Protection; and Federal Housing Finance Agency to 

establish, by rule, minimum requirements to be 

imposed by a participating State appraiser 

certifying and licensing agency on AMCs doing 

business in the State. (Title XI § 1124(a), 12 U.S.C. 

3353(a).) Those rules were finalized and published 

on June 9, 2015, at 80 Federal Register 32658 with 

an effective date of August 10, 2015. (12 CFR 

34.210–34.216; 12 CFR 225.190–225.196; 12 CFR 

323.8–323.14; 12 CFR 1222.20–1222.26.) 

16These Policy Statements, adopted [date to be 

inserted when final], supersede all previous Policy 

Statements adopted by the ASC. 

17Title XI § 1118(a), 12 U.S.C. 3347. 

18See Appendix B, Glossary of Terms, for the 

definition of ‘‘State board.’’ 

register and supervise the operations 

and activities of appraisal management 

companies 12 (AMCs).13

The ASC performs periodic 

Compliance Reviews 14 of each State 

appraiser regulatory program (Appraiser 

Program) to determine compliance or 

lack thereof with Title XI, and to assess 

implementation of minimum 

requirements for credentialing of 

appraisers as adopted by the Appraiser 

Qualifications Board (The Real Property 

Appraiser Qualification Criteria or AQB 

Criteria). As a result of the Dodd-Frank 

Act amendments to Title XI, States with 

an AMC regulatory program (AMC 

Program) will be evaluated during the 

Compliance Review to determine 

compliance or lack thereof with Title XI, 

and to assess implementation of the 

minimum requirements for State 

registration and supervision of AMCs as 

established by the 

AMC Rule.15

The ASC is issuing these revised 

Policy Statements 16 in three parts to 

provide States with the necessary 

information to maintain their Appraiser 

Programs and AMC Programs in 

compliance with Title XI: 

➢ Part A, Appraiser Program—Policy 

Statements 1 through 7 correspond with 

the categories that are: (a) Evaluated 

during the Appraiser Program 

Compliance Review; and (b) included in 

the ASC’s Compliance Review Report of 

the Appraiser Program. 

➢ Part B, AMC Program—Policy 

Statements 8 through 11 correspond 

with the categories that are: (a) 

Evaluated during the AMC Program 

Compliance Review; and (b) included in 

the ASC’s Compliance Review Report of 

the AMC Program. 

➢ Part C, Interim Sanctions—Policy 

Statement 12 sets forth required 

procedures in the event that interim 

sanctions are imposed against a State by 

the ASC for non-compliance in either 

the Appraiser Program or the AMC 

Program. 

Part A: Appraiser Program 

Policy Statement 1 

Statutes, Regulations, Policies and 

Procedures Governing State Appraiser 

Programs 

A. State Regulatory Structure 

Title XI requires the ASC to monitor 

each State appraiser certifying and 

licensing agency for the purpose of 

determining whether each such agency 

has in place policies, practices and 

procedures consistent with the 

requirements of Title XI.17 The ASC 

recognizes that each State may have 

legal, fiscal, regulatory or other factors 

that may influence the structure and 

organization of its Appraiser Program. 

Therefore, a State has flexibility to 

structure its Appraiser Program so long 

as it meets its Title XI-related 

responsibilities. 

States should maintain an 

organizational structure for appraiser 

certification, licensing and supervision 

that avoids conflicts of interest. A State 

agency may be headed by a board, 

commission or an individual. State 

board 18 or commission members, or 

employees in policy or decision-making 

positions, should understand and 

adhere to State statutes and regulations 

governing performance of 

responsibilities consistent with the 

highest ethical standards for public 

service. In addition, Appraiser Programs 

using private entities or contractors 

should establish appropriate internal 

policies, procedures and safeguards to 

promote compliance with the State 

agency’s responsibilities under Title XI 

and these Policy Statements. 

B. Funding and Staffing 

The Dodd-Frank Act amended Title 

XI to require the ASC to determine 

whether States have sufficient funding 

and staffing to meet their Title XI 

requirements. Compliance with this 

provision requires that a State must 

provide its Appraiser Program with 

funding and staffing sufficient to carry 

out its Title XI-related duties. The ASC 

evaluates the sufficiency of funding and 

staffing as part of its review of all 

aspects of an Appraiser Program’s 

effectiveness, including the adequacy of 

State boards, committees, or 

commissions responsible for carrying 

out Title XI-related duties. 

C. Minimum Criteria 

Title XI requires States to adopt and/ 

or implement all relevant AQB Criteria. 

Requirements established by a State for 

certified residential or certified general 

appraisers, as well as requirements 

established for licensed appraisers, 

trainee appraisers and supervisory 

appraisers must meet or exceed 

applicable AQB Criteria. 

D. Federally Recognized Appraiser 

Classifications 

State Certified Appraisers 

‘‘State certified appraisers’’ means 

those individuals who have satisfied the 

requirements for residential or general 

certification in a State whose criteria for 

certification meet or exceed the 

applicable minimum AQB Criteria. 

Permitted scope of practice and 

designation for State certified 

residential or certified general 

appraisers must be consistent with State 

and Federal laws, including regulations 

and supplementary guidance. 

State Licensed Appraisers 

‘‘State licensed appraisers’’ means 

those individuals who have satisfied the 

requirements for licensing in a State 

whose criteria for licensing meet or 

exceed the applicable minimum AQB 

Criteria. The permitted scope of practice 

and designation for State licensed 

appraisers must be consistent with State 

and Federal laws, including regulations 

and supplementary guidance. 

Trainee Appraisers 

‘‘Trainee appraisers’’ means those 

individuals who have satisfied the 

requirements for credentialing in a State 

whose criteria for credentialing meet or 

exceed the applicable minimum AQB 

Criteria. Any minimum qualification 

requirements established by a State for 

individuals in the position of ‘‘trainee 

appraiser’’ or ‘‘supervisory appraiser’’ 

must meet or exceed the applicable 

minimum AQB Criteria. ASC staff will 

evaluate State designations such as 

‘‘registered appraiser,’’ ‘‘apprentice 

appraiser,’’ ‘‘provisional appraiser,’’ or 

any other similar designation to 

determine if, in substance, such 

designation is consistent with a ‘‘trainee 

appraiser’’ designation and, therefore, 

administered to comply with Title XI. 

The permitted scope of practice and 

designation for trainee appraisers must 

be consistent with State and Federal 

laws, including regulations and 

supplementary guidance. 

Any State or Federal agency may 

impose additional appraiser 

qualification requirements for trainee, 

State licensed, certified residential or 


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19See Appendix B, Glossary of Terms, for the 

definition of ‘‘non-federally recognized credentials 

or designations.’’ 

20See Appendix B, Glossary of Terms for the 

definition of ‘‘Uniform Standards of Professional 

Appraisal Practice.’’ 

21Title XI § 1112, 12 U.S.C. 3341; Title XI § 1113, 

12 U.S.C. 3342; Title XI § 1114, 12 U.S.C. 3343. 

22Title XI § 1101, 12 U.S.C. 3331; Title XI 

§ 1118(a), 12 U.S.C. 3347; AQB Real Property 

Appraiser Qualification Criteria. 

23Title XI §§ 1116(a), (c) and (e), 12 U.S.C. 3345; 

Title XI § 1118(a), 12 U.S.C. 3347. 

24Title XI § 1118(a), 12 U.S.C. 3347. 

25 Id; Title XI § 1118(b), 12 U.S.C. 3347. 

26Title XI §§ 1116(a), (c) and (e), 12 U.S.C. 3345; 

Title XI § 1118(a), 12 U.S.C. 3347; Title XI § 1113, 

12 U.S.C. 3342; AQB Real Property Appraiser 

Qualification Criteria. 

27Title XI § 1118(a), 12 U.S.C. 3347. 

28Title XI §§ 1116(a), (c) and (e), 12 U.S.C. 3345. 

29Title XI § 1118(b), 12 U.S.C. 3347. 

30See Appendix B, Glossary of Terms, for the 

definition of ‘‘assignment.’’ 

certified general classifications, if they 

consider such requirements necessary to 

carry out their responsibilities under 

Federal and/or State statutes and 

regulations, so long as the additional 

qualification requirements do not 

preclude compliance with AQB Criteria. 

E. Non-Federally Recognized 

Credentials 

States using non-federally recognized 

credentials or designations 19 must 

ensure that they are easily distinguished 

from the federally recognized 

credentials. 

F. Appraisal Standards 

Title XI and the Federal financial 

institutions regulatory agencies’ 

regulations mandate that all appraisals 

performed in connection with federally 

related transactions be in written form, 

prepared in accordance with generally 

accepted appraisal standards as 

promulgated by the Appraisal Standards 

Board (ASB) in the Uniform Standards 

of Professional Appraisal Practice 

(USPAP), and be subject to appropriate 

review for compliance with USPAP.20

States that have incorporated USPAP 

into State law should ensure that 

statutes or regulations are updated 

timely to adopt the current version of 

USPAP, or if State law allows, 

automatically incorporate the latest 

version of USPAP as it becomes 

effective. States should consider ASB 

Advisory Opinions, Frequently Asked 

Questions, and other written guidance 

issued by the ASB regarding 

interpretation and application of 

USPAP. 

Any State or Federal agency may 

impose additional appraisal standards if 

they consider such standards necessary 

to carry out their responsibilities, so 

long as additional appraisal standards 

do not preclude compliance with 

USPAP or the Federal financial 

institutions regulatory agencies’ 

appraisal regulations for work 

performed for federally related 

transactions. 

The Federal financial institutions 

regulatory agencies’ appraisal 

regulations define ‘‘appraisal’’ and 

identify which real estate-related 

financial transactions require the 

services of a State certified or licensed 

appraiser. These regulations define 

‘‘appraisal’’ as a ‘‘written statement 

independently and impartially prepared 

by a qualified appraiser setting forth an 

opinion as to the market value of an 

adequately described property as of a 

specific date(s) supported by the 

presentation and analysis of relevant 

market information.’’ Per these 

regulations, an appraiser performing an 

appraisal review which includes the 

reviewer providing his or her own 

opinion of value constitutes an 

appraisal. Under these same regulations, 

an appraisal review that does not 

include the reviewer providing his or 

her own opinion of value does not 

constitute an appraisal. Therefore, 

under the Federal financial institutions 

regulatory agencies’ regulations, only 

those transactions that involve 

appraisals for federally related 

transactions require the services of a 

State certified or licensed appraiser. 

G. Exemptions 

Title XI and the Federal financial 

institutions regulatory agencies’ 

regulations specifically require the use 

of State certified or licensed appraisers 

in connection with the appraisal of 

certain real estate-related financial 

transactions.21 A State may not exempt 

any individual or group of individuals 

from meeting the State’s certification or 

licensing requirements if the individual 

or group member performs an appraisal 

when Federal statutes and regulations 

require the use of a certified or licensed 

appraiser. For example, an individual 

who has been exempted by the State 

from its appraiser certification or 

licensing requirements because he or 

she is an officer, director, employee or 

agent of a federally regulated financial 

institution would not be permitted to 

perform an appraisal in connection with 

a federally related transaction. 

H. ASC Staff Attendance at State Board 

Meetings 

The efficacy of the ASC’s Compliance 

Review process rests on the ASC’s 

ability to obtain reliable information 

about all areas of a State’s Appraiser 

Program. ASC staff regularly attends 

open State board meetings as part of the 

on-site Compliance Review process. 

States are expected to make available for 

review by ASC staff minutes of closed 

meetings and executive sessions. States 

are encouraged to allow ASC staff to 

attend closed and executive sessions of 

State board meetings where such 

attendance would not violate State law 

or regulation or be inconsistent with 

other legal obligations of the State 

board. ASC staff is obligated to protect 

information obtained during the 

Compliance Review process concerning 

the privacy of individuals and any 

confidential matters. 

I. Summary of Requirements 

1. States must require that appraisals 

be performed in accordance with the 

latest version of USPAP.22

2. States must, at a minimum, adopt 

and/or implement all relevant AQB 

Criteria.23

3. States must have policies, practices 

and procedures consistent with Title 

XI.24

4. States must have funding and 

staffing sufficient to carry out their Title 

XI-related duties.25

5. States must use proper designations 

and permitted scope of practice for 

certified residential; certified general; 

licensed; and trainee classifications.26

6. State board members, and any 

persons in policy or decision-making 

positions, must perform their 

responsibilities consistent with Title 

XI.27

7. States’ certification and licensing 

requirements must meet the minimum 

requirements set forth in Title XI.28

8. State requirements for trainee 

appraisers and supervisory appraisers 

must meet or exceed the AQB Criteria. 

9. State agencies must be granted 

adequate authority by the State to 

maintain an effective regulatory 

Appraiser Program in compliance with 

Title XI.29

Policy Statement 2 

Temporary Practice 

A. Requirement for Temporary Practice 

Title XI requires State agencies to 

recognize, on a temporary basis, the 

certification or license of an out-of-State 

appraiser entering the State for the 

purpose of completing an appraisal 

assignment 30 for a federally related 

transaction. States are not, however, 

required to grant temporary practice 

permits to trainee appraisers. The outof-State appraiser must register with the 

State agency in the State of temporary 

practice (Host State). A State may 

determine the process necessary for 


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31Title XI § 1122(a)(2), 12 U.S.C. 3351. 

32See Appendix B, Glossary of Terms, for the 

definition of ‘‘credentialed appraisers.’’ 

33Title XI § 1122(a)(2), 12 U.S.C. 3351. 

34See Appendix B, Glossary of Terms, for the 

definition of ‘‘home State agency.’’ 

35State agencies may establish by statute or 

regulation a policy that places reasonable limits on 

the number of times an out-of-State certified or 

licensed appraiser may exercise his or her 

temporary practice rights in a given year. If such a 

policy is not established, a State agency may choose 

not to honor an out-of-State certified or licensed 

appraiser’s temporary practice rights if it has made 

a determination that the appraiser is abusing his or 

her temporary practice rights and is regularly 

engaging in real estate appraisal services within the 

State. 

36Title XI § 1122(a)(1), 12 U.S.C. 3351. 

37Title XI § 1122(a)(2), 12 U.S.C. 3351. 

38Title XI § 1103(a)(3), 12 U.S.C. 3332. 

39Title XI § 1109, Roster of State certified or 

licensed appraisers; authority to collect and 

transmit fees, requires the ASC to consider at least 

once every 5 years whether to adjust the dollar 

amount of the registry fees to account for inflation. 

(Title XI § 1109(a), 12 U.S.C. 3338.) 

‘‘registration’’ provided such process 

complies with Title XI and does not 

impose ‘‘excessive fees or burdensome 

requirements,’’ as determined by the 

ASC.31 Thus, a credentialed appraiser 32

from State A has a statutory right to 

enter State B (the Host State) to perform 

an assignment concerning a federally 

related transaction, so long as the 

appraiser registers with the State agency 

in State B prior to performing the 

assignment. Though Title XI 

contemplates reasonably free movement 

of credentialed appraisers across State 

lines, an out-of-State appraiser must 

comply with the Host State’s real estate 

appraisal statutes and regulations and is 

subject to the Host State’s full regulatory 

jurisdiction. States should utilize the 

National Registry of Appraisers to verify 

credential status on applicants for 

temporary practice. 

B. Excessive Fees or Burdensome 

Requirements 

Title XI prohibits States from 

imposing excessive fees or burdensome 

requirements, as determined by the 

ASC, for temporary practice.33

Adherence by State agencies to the 

following mandates and prohibitions 

will deter the imposition of excessive 

fees or burdensome requirements. 

Host State agencies must: 

a. Issue temporary practice permits on 

an assignment basis; 

b. issue temporary practice permits 

within five business days of receipt of 

a completed application, or notify the 

applicant and document the file as to 

the circumstances justifying delay or 

other action; 

c. issue temporary practice permits 

designating the permit’s effective date; 

d. take regulatory responsibility for a 

temporary practitioner’s unethical, 

incompetent and/or fraudulent practices 

performed while in the State; 

e. notify the appraiser’s home State 

agency 34 in the case of disciplinary 

action concerning a temporary 

practitioner; 

f. allow at least one temporary 

practice permit extension through a 

streamlined process; 

g. track all temporary practice permits 

using a permit log which includes the 

name of the applicant, date application 

received, date completed application 

received, date of issuance, and date of 

expiration, if any (States are strongly 

encouraged to maintain this information 

in an electronic, sortable format); and 

h. maintain documentation sufficient 

to demonstrate compliance with this 

Policy Statement. 

Host State agencies may not: 

a. Limit the valid time period of a 

temporary practice permit to less than 6 

months (unless the applicant requests a 

specific end date and the applicant is 

allowed an extension if required to 

complete the assignment, the 

applicant’s credential is no longer in 

active status during that period of time); 

b. limit an appraiser to one temporary 

practice permit per calendar year; 35

c. charge a temporary practice permit 

fee exceeding $250, including one 

extension fee; 

d. impose State appraiser 

qualification requirements for 

education, experience and/or exam 

upon temporary practitioners; 

e. require temporary practitioners to 

obtain a certification or license in the 

State of temporary practice; 

f. require temporary practitioners to 

affiliate with an in-State licensed or 

certified appraiser; 

g. refuse to register licensed or 

certified appraisers seeking temporary 

practice in a State that does not have a 

licensed or certified level credential; or 

h. prohibit temporary practice. 

Home State agencies may not: 

a. Delay the issuance of a written 

‘‘letter of good standing’’ or similar 

document for more than five business 

days after receipt of a request; or 

b. fail to consider and, if appropriate, 

take disciplinary action when one of its 

certified or licensed appraisers is 

disciplined by another State. 

C. Summary of Requirements 

1. States must recognize, on a 

temporary basis, appraiser credentials 

issued by another State if the property 

to be appraised is part of a federally 

related transaction.36

2. State agencies must adhere to 

mandates and prohibitions as 

determined by the ASC that deter the 

imposition of excessive fees or 

burdensome requirements for temporary 

practice.37

Policy Statement 3 

National Registry of Appraisers 

A. Requirements for the National 

Registry of Appraisers 

Title XI requires the ASC to maintain 

a National Registry of State certified and 

licensed appraisers who are eligible to 

perform appraisals in federally related 

transactions (Appraiser Registry).38 Title 

XI further requires the States to transmit 

to the ASC: (1) A roster listing 

individuals who have received a State 

certification or license in accordance 

with Title XI; (2) reports on the issuance 

and renewal of licenses and 

certifications, sanctions, disciplinary 

actions, revocations and suspensions; 

and (3) the registry fee as set by the 

ASC 39 from individuals who have 

received certification or licensing. States 

must notify the ASC as soon as 

practicable if a credential holder listed 

on the Appraiser Registry does not 

qualify for the credential held. 

Roster and registry fee requirements 

apply to all individuals who receive 

State certifications or licenses, 

originally or by reciprocity, whether or 

not the individuals are, in fact, 

performing or planning to perform 

appraisals in federally related 

transactions. If an appraiser is certified 

or licensed in more than one State, the 

appraiser is required to be on each 

State’s roster of certified or licensed 

appraisers, and a registry fee is due from 

each State in which the appraiser is 

certified or licensed. 

Only AQB-compliant certified and 

licensed appraisers in active status on 

the Appraiser Registry are eligible to 

perform appraisals in connection with 

federally related transactions. Only 

those appraisers whose registry fees 

have been transmitted to the ASC will 

be eligible to be on the Appraiser 

Registry for the period subsequent to 

payment of the fee. 

Some States may give State certified 

or licensed appraisers an option to not 

pay the registry fee. If a State certified 

or licensed appraiser chooses not to pay 

the registry fee, then the Appraiser 

Program must ensure that any potential 

user of that appraiser’s services is aware 

that the appraiser is not eligible to 

perform appraisals for federally related 

transactions. The Appraiser Program 

must place a conspicuous notice 

directly on the face of any evidence of 

the appraiser’s authority to appraise 


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40See Appendix B, Glossary of Terms, for the 

definition of ‘‘disciplinary action.’’ 

41 Id. 

42Title XI § 1118(a), 12 U.S.C. 3347. 

43 Id. 

44Title XI § 1118(a), 12 U.S.C. 3347; Title XI 

§ 1109(a), 12 U.S.C. 3338. 

45 Id. 

46Title XI § 1118(a), 12 U.S.C. 3347. 

47 Id. 

48 Id. 

49 Id. 

50 Id. 

stating, ‘‘Not Eligible To Appraise 

Federally Related Transactions,’’ and 

the appraiser must not be listed in 

active status on the Appraiser Registry. 

The ASC extranet application allows 

States to update their appraiser 

credential information directly to the 

Appraiser Registry. Only Authorized 

Registry Officials are allowed to request 

access for their State personnel (see 

section C below). The ASC will issue a 

User Name and Password to the 

designated State personnel responsible 

for that State’s Appraiser Registry 

entries. Designated State personnel are 

required to protect the right of access, 

and not share their User Name or 

Password with anyone. States must 

adopt and implement a written policy to 

protect the right of access, as well as the 

ASC issued User Name and Password. 

The ASC will provide detailed 

specifications regarding the data 

elements on the Appraiser Registry. 

B. Registry Fee and Invoicing Policies 

Each State must remit to the ASC the 

annual registry fee, as set by the ASC, 

for State certified or licensed appraisers 

within the State to be listed on the 

Appraiser Registry. Requests to prorate 

refunds or partial-year registrations will 

not be granted. If a State collects 

multiple-year fees for multiple-year 

certifications or licenses, the State may 

choose to remit to the ASC the total 

amount of the multiple-year registry fees 

or the equivalent annual fee amount. 

The ASC will, however, record 

appraisers on the Appraiser Registry 

only for the number of years for which 

the ASC has received payment. 

Nonpayment by a State of an appraiser’s 

registry fee may result in the status of 

that appraiser being listed as ‘‘inactive.’’ 

States must reconcile and pay registry 

invoices in a timely manner (45 

calendar days after the invoice date). 

When a State’s failure to pay a past due 

invoice results in appraisers being listed 

as inactive, the ASC will not change 

those appraisers back to active status 

until payment is received from the 

State. An inactive status on the 

Appraiser Registry, for whatever the 

reason, renders an appraiser ineligible 

to perform appraisals in connection 

with federally related transactions. 

C. Access to Appraiser Registry Data 

The ASC Web site provides free 

access to the public portion of the 

Appraiser Registry at www.asc.gov. The 

public portion of the Appraiser Registry 

data may be downloaded using 

predefined queries or user-customized 

applications. 

Access to the full database, which 

includes non-public data (e.g., certain 

disciplinary action information), is 

restricted to authorized State and 

Federal regulatory agencies. States must 

designate a senior official, such as an 

executive director, to serve as the State’s 

Authorized Registry Official, and 

provide to the ASC, in writing, 

information regarding the designated 

Authorized Registry Official. States 

must ensure that the authorization 

information provided to the ASC is 

updated and accurate. 

D. Information Sharing 

Information sharing (routine exchange 

of certain information among lenders, 

governmental entities, State agencies 

and the ASC) is essential for carrying 

out the purposes of Title XI. Title XI 

requires the ASC, any other Federal 

agency or instrumentality, or any 

federally recognized entity to report any 

action of a State certified or licensed 

appraiser that is contrary to the 

purposes of Title XI to the appropriate 

State agency for disposition. The ASC 

believes that full implementation of this 

Title XI requirement is vital to the 

integrity of the system of State appraiser 

regulation. States are encouraged to 

develop and maintain procedures for 

sharing of information among 

themselves. 

The Appraiser Registry’s value and 

usefulness are largely dependent on the 

quality and frequency of State data 

submissions. Accurate and frequent data 

submissions from all States are 

necessary to maintain an up-to-date 

Appraiser Registry. States must submit 

appraiser data in a secure format to the 

ASC at least monthly. If there are no 

changes to the data, the State agency 

must notify the ASC of that fact in 

writing. States are encouraged to submit 

data as frequently as possible. 

States must report all disciplinary 

action 40 taken against an appraiser to 

the ASC via the extranet application 

within 5 business days after the 

disciplinary action is final, as 

determined by State law.41 States not 

reporting via the extranet application 

must provide, in writing to the ASC, a 

description of the circumstances 

preventing compliance with this 

requirement.42

For the most serious disciplinary 

actions (i.e., voluntary surrenders, 

suspensions and revocations, or any 

action that interrupts a credential 

holder’s ability to practice), the 

appraiser’s status must be changed on 

the Appraiser Registry to ‘‘inactive,’’ 

thereby making the appraiser ineligible 

to perform appraisals for federally 

related transactions or other 

transactions requiring the use of State 

certified or licensed appraisers.43

Title XI also contemplates the 

reasonably free movement of certified 

and licensed appraisers across State 

lines. This freedom of movement 

assumes, however, that certified and 

licensed appraisers are, in all cases, 

held accountable and responsible for 

their actions while performing appraisal 

activities. 

E. Summary of Requirements 

1. States must reconcile and pay 

registry invoices in a timely manner (45 

calendar days after the invoice date).44

2. States must report all disciplinary 

action taken against an appraiser to the 

ASC via the extranet application within 

5 business days after the disciplinary 

action is final, as determined by State 

law.45

3. States not reporting via the extranet 

application must provide, in writing to 

the ASC, a description of the 

circumstances preventing compliance 

with this requirement.46

4. For the most serious disciplinary 

actions (i.e., voluntary surrenders, 

suspensions and revocations, or any 

action that interrupts a credential 

holder’s ability to practice), the 

appraiser’s status must be changed on 

the Appraiser Registry to ‘‘inactive,’’ 

thereby making the appraiser ineligible 

to perform appraisals for federally 

related transactions or other 

transactions requiring the use of State 

certified or licensed appraisers.47

5. States must designate a senior 

official, such as an executive director, 

who will serve as the State’s Authorized 

Registry Official, and provide to the 

ASC, in writing, information regarding 

the selected Authorized Registry 

Official, and any individual(s) 

authorized to act on their behalf.48

6. States must ensure that the 

authorization information provided to 

the ASC is updated and accurate.49

7. States must adopt and implement a 

written policy to protect the right of 

access to the Appraiser Registry, as well 

as the ASC issued User Name and 

Password.50


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51 Id. 

52 Id. 

53 Id. 

54 Includes applications for credentialing of 

trainee, licensed, certified residential or certified 

general classifications. 

55 If a State accepts education-related affidavits 

from applicants for initial licensure in any noncertified classification, upon the appraiser’s 

application to upgrade to a certified classification, 

the State must require documentation to support 

the appraiser’s educational qualification for the 

certified classification, not just the incremental 

amount of education required to move from the 

non-certified to the certified classification. This 

requirement applies to all federally recognized 

credentials. 

8. States must ensure the accuracy of 

all data submitted to the Appraiser 

Registry.51

9. States must submit appraiser data 

(other than discipline) to the ASC at 

least monthly. If a State’s data does not 

change during the month, the State 

agency must notify the ASC of that fact 

in writing.52

10. If a State certified or licensed 

appraiser chooses not to pay the registry 

fee, the State must ensure that any 

potential user of that appraiser’s 

services is aware that the appraiser’s 

certificate or license is limited to 

performing appraisals only in 

connection with non-federally related 

transactions.53

Policy Statement 4 

Application Process 

AQB Criteria sets forth the minimum 

education, experience and examination 

requirements applicable to all States for 

credentialing of real property appraisers 

(certified, licensed, trainee and 

supervisory). In the application process, 

States must, at a minimum, employ a 

reliable means of validating both 

education and experience credit 

claimed by applicants for 

credentialing.54 Effective January 1, 

2017, AQB Criteria also requires States 

to assess whether an applicant for a real 

property appraiser credential possesses 

a background that would not call into 

question public trust. The basis for such 

assessment shall be a matter left to the 

individual States, and must, at a 

minimum, be documented to the file. 

A. Processing of Applications 

States must process applications in a 

consistent, equitable and welldocumented manner. Applications for 

credentialing should be timely 

processed by State agencies (within 90 

calendar days after receipt of a 

completed application). Any delay in 

the processing of applications must be 

sufficiently documented in the file to 

explain the delay. States must ensure 

appraiser credential applications 

submitted for processing do not contain 

invalid examinations as established by 

AQB Criteria. 

States must obtain and maintain 

sufficient relevant documentation 

pertaining to an application for 

issuance, upgrade and renewal of a 

credential so as to enable understanding 

of the facts and determinations in the 

matter and the reasons for those 

determinations. Documentation must 

include: 

1. Application receipt date; 

2. Education; 

3. Experience; 

4. Examination; 

5. Continuing education; and 

6. Any administrative or disciplinary 

action taken in connection with the 

application process, including results of 

any continuing education audit. 

B. Qualifying Education for Initial or 

Upgrade Applications 

States must verify that: 

(1) The applicant’s claimed education 

courses are acceptable under AQB 

Criteria; and 

(2) the applicant has successfully 

completed courses consistent with AQB 

Criteria for the appraiser credential 

sought. 

States may not accept an affidavit for 

claimed qualifying education from 

applicants for any federally recognized 

credential.55 States must maintain 

adequate documentation to support 

verification of education claimed by 

applicants. 

C. Continuing Education for 

Reinstatement and Renewal 

Applications 

1. Reinstatement Applications 

States must verify that: 

(1) The applicant’s claimed 

continuing education courses are 

acceptable under AQB Criteria; and 

(2) the applicant has successfully 

completed all continuing education 

consistent with AQB Criteria for 

reinstatement of the appraiser credential 

sought. 

States may not accept an affidavit for 

continuing education claimed from 

applicants for reinstatement. Applicants 

for reinstatement must submit 

documentation to support claimed 

continuing education and States must 

maintain adequate documentation to 

support verification of claimed 

education. 

2. Renewal Applications 

States must ensure that continuing 

education courses for renewal of an 

appraiser credential are consistent with 

AQB Criteria and that continuing 

education hours required for renewal of 

an appraiser credential were completed 

consistent with AQB Criteria. States 

may accept affidavits for continuing 

education credit claimed for credential 

renewal so long as the State implements 

a reliable validation procedure that 

adheres to the following objectives and 

requirements: 

a. Validation Objectives 

The State’s validation procedures 

must be structured to permit acceptable 

projections of the sample results to the 

entire population of subject appraisers. 

Therefore, the sample must include an 

adequate number of affidavits selected 

from each federally recognized 

credential level to have a reasonable 

chance of identifying appraisers who 

fail to comply with AQB Criteria, and 

the sample must include a statistically 

relevant representation of the appraiser 

population being sampled. 

b. Minimum Standards 

(1) Validation must include a prompt 

post-approval audit. Each audit of an 

affidavit for continuing education credit 

claimed must be completed within 60 

business days from the date the 

credential is scheduled for renewal 

(based on the credential’s expiration 

date). To ensure the audit is a 

statistically relevant representation, a 

sampling of credentials that were 

renewed after the scheduled expiration 

date and/or beyond the date the sample 

was selected, must also be audited to 

ensure that a credential holder may not 

avoid being selected for a continuing 

education audit by renewing early or 

late. 

(2) States must audit the continuing 

education-related affidavit for each 

credentialed appraiser selected in the 

sampling procedure. 

(3) States must determine that 

education courses claimed conform to 

AQB Criteria and that the appraiser 

successfully completed each course. 

(4) When a State determines that an 

appraiser’s continuing education does 

not meet AQB Criteria, and the 

appraiser has failed to complete any 

remedial action offered, the State must 

take appropriate action to suspend the 

appraiser’s eligibility to perform 

appraisals in federally related 

transactions until such time that the 

requisite continuing education has been 

completed. The State must notify the 

ASC within five (5) business days after 

taking such action in order for the 

appraiser’s record on the Appraiser 

Registry to be updated appropriately. 

(5) If a State determines that a renewal 

applicant knowingly falsely attested to 

completing the continuing education 


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56For example: 

(1) A State may conduct an additional audit using 

a higher percentage of audited appraisers; or 

(2) a State may publicly post action taken to 

sanction non-compliant appraisers to increase 

awareness in the appraiser community of the 

importance of compliance with continuing 

education requirements. 57See Policy Statement 1D and E for discussion 

of ‘‘federally recognized credential’’ and ‘‘nonfederally recognized credential.’’ If prior to July 1, 

2013, a State accepted experience-related affidavits 

from applicants for initial licensure in any noncertified classification, upon the appraiser’s 

application to upgrade to a certified classification, 

the State must require experience documentation to 

support the appraiser’s qualification for the 

certified classification, not just the incremental 

amount of experience required to move from the 

non-certified to the certified classification. For 

example, if a State accepted an experience affidavit 

from an appraiser to support the appraiser’s initial 

hours to qualify for the licensed classification, and 

subsequently that appraiser applies to upgrade to 

the certified residential classification, the State 

must require documentation to support the full 

experience hours required for the certified 

residential classification, not just the difference in 

hours between the two classifications. 

58Title XI § 1118(a), 12 U.S.C. 3347. 

59Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

60Title XI § 1118(a), 12 U.S.C. 3347. 

61 Id. 

62 Id. 

63Title XI § 1118(a), 12 U.S.C. 3347. 

64 Id. 

65 Id. 

66Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

67Title XI § 1118(a), 12 U.S.C. 3347. 

required by AQB Criteria, the State must 

take appropriate administrative and/or 

disciplinary action and report such 

action, if deemed to be discipline, to the 

ASC within five (5) business days. 

(6) If more than ten percent of the 

audited appraisers fail to meet the AQB 

Criteria, the State must take remedial 

action 56 to address the apparent 

weakness of its affidavit process. The 

ASC will determine on a case-by-case 

basis whether remedial actions are 

effective and acceptable. 

(7) In the case of a renewal being 

processed after the credential’s 

expiration date, but within the State’s 

allowed grace period for a late renewal, 

the State must establish a reliable 

process to audit affidavits for continuing 

education (e.g., requiring 

documentation of all continuing 

education). 

c. Documentation 

States must maintain adequate 

documentation to support its affidavit 

renewal and audit procedures and 

actions. 

d. List of Education Courses 

To promote accountability, the ASC 

encourages States accepting affidavits 

for continuing education credit claimed 

for credential renewal to require that the 

appraiser provide a list of courses to 

support the affidavit. 

D. Experience for Initial or Upgrade 

Applications 

States must ensure that appraiser 

experience logs conform to AQB 

Criteria. States may not accept an 

affidavit for experience credit claimed 

by applicants for any federally 

recognized credential.57

1. Validation Required 

States must implement a reliable 

validation procedure to verify that each 

applicant’s experience meets AQB 

Criteria, including but not limited to, 

being USPAP compliant and containing 

the required number of hours and 

months. 

2. Validation Procedures, Objectives and 

Requirements 

a. Experience Hours Validation 

States must determine the hours and 

time period claimed on the experience 

log are accurate. Appraiser Program staff 

or State board members must select the 

work product to validate the experience 

hours claimed; applicants may not have 

any role in this selection process. 

b. USPAP Compliance 

States must analyze a representative 

sample of the applicant’s work product 

for compliance with USPAP. For 

appraisal experience to be acceptable 

under AQB Criteria, it must be USPAP 

compliant. States must exercise due 

diligence in determining whether 

submitted documentation of experience 

or work product demonstrates 

compliance with USPAP. Persons 

analyzing work product for USPAP 

compliance must be knowledgeable 

about appraisal practice and USPAP, 

and States must be able to document 

how such persons are so qualified. 

c. Determination of Experience Time 

Periods 

Experience time periods must 

conform to requirements set forth in the 

AQB Criteria for the credential sought. 

d. Supporting Documentation 

States must maintain adequate 

documentation to support validation 

methods. The applicant’s file, either 

electronic or paper, must include the 

information necessary to identify each 

appraisal assignment selected to 

validate the experience hours claimed 

and each appraisal assignment analyzed 

by the State for USPAP compliance, 

notes, letters and/or reports prepared by 

the official(s) evaluating the report for 

USPAP compliance, and any 

correspondence exchanged with the 

applicant regarding the appraisals 

submitted. This supporting 

documentation may be discarded upon 

the completion of the first ASC 

Compliance Review performed after the 

credential issuance or denial for that 

applicant. 

E. Examination 

States must ensure that an appropriate 

AQB-approved qualifying examination 

is administered for each of the federally 

recognized appraiser classifications 

requiring an examination. 

F. Summary of Requirements 

Processing of Applications 

1. States must process applications in 

a consistent, equitable and welldocumented manner.58

2. States must ensure appraiser 

credential applications submitted for 

processing do not contain invalid 

examinations as established by AQB 

Criteria.59

3. States must obtain and maintain 

sufficient relevant documentation 

pertaining to an application for 

issuance, upgrade or renewal of a 

credential so as to enable understanding 

of the facts and determinations in the 

matter and the reasons for those 

determinations.60

Education 

1. States must verify that the 

applicant’s claimed education courses 

are acceptable under AQB Criteria, 

whether for initial credentialing, 

renewal, upgrade or reinstatement.61

2. States must verify that the 

applicant has successfully completed 

courses consistent with AQB Criteria for 

the appraiser credential sought, whether 

for initial credentialing, renewal, 

upgrade or reinstatement.62

3. States must maintain adequate 

documentation to support verification.63

4. States may not accept an affidavit 

for education claimed from applicants 

for any federally recognized 

credential.64

5. States may not accept an affidavit 

for continuing education claimed from 

applicants for reinstatement.65

6. States may accept affidavits for 

continuing education credit claimed for 

credential renewal so long as the State 

implements a reliable validation 

procedure.66

7. Audits of affidavits for continuing 

education credit claimed must be 

completed within sixty (60) business 

days from the date the credential is 

scheduled for renewal (based on the 

credential’s expiration date).67

8. In the case of a renewal being 

processed after the credential’s 


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68 Id. 

69 Id. 

70 Id. 

71 Id. 

72 Id. 

73Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

74Title XI § 1118(a), 12 U.S.C. 3347. 

75Title XI § 1118(a), 12 U.S.C. 3347. 

76 Id. 

77 Id. 

78 Id. 

79Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

80 Id. 

81Title XI § 1122(b), 12 U.S.C. 3351. 

82As they exist at the time of application for 

reciprocal credential. 

83 Id. 

84See Appendix A, Compliance Review Process, 

for an explanation of ASC Findings. 

expiration date, but within the State’s 

allowed grace period for a late renewal, 

the State must establish a reliable 

process to audit affidavits for continuing 

education (e.g., requiring 

documentation of all continuing 

education).68

9. States are required to take remedial 

action when it is determined that more 

than ten percent of audited appraiser’s 

affidavits for continuing education 

credit claimed fail to meet the minimum 

AQB Criteria.69

10. States are required to take 

appropriate administrative and/or 

disciplinary action when it is 

determined that an applicant knowingly 

falsely attested to completing 

continuing education.70

11. When a State determines that an 

appraiser’s continuing education does 

not meet AQB Criteria, and the 

appraiser has failed to complete any 

remedial action offered, the State must 

take appropriate action to suspend the 

appraiser’s eligibility to perform 

appraisals in federally related 

transactions until such time that the 

requisite continuing education has been 

completed. The State must notify the 

ASC within five (5) business days after 

taking such action in order for the 

appraiser’s record on the Appraiser 

Registry to be updated appropriately.71

Experience 

1. States may not accept an affidavit 

for experience credit claimed from 

applicants for any federally recognized 

credential.72

2. States must ensure that appraiser 

experience logs conform to AQB 

Criteria.73

3. States must use a reliable means of 

validating appraiser experience claims 

on all initial or upgrade applications for 

appraiser credentialing.74

4. States must select the work product 

to validate the experience hours claimed 

on all initial or upgrade applications for 

appraiser credentialing.75

5. States must analyze a 

representative sample of the applicant’s 

work product for compliance with 

USPAP on all initial or upgrade 

applications for appraiser 

credentialing.76

6. States must exercise due diligence 

in determining whether submitted 

documentation of experience or work 

product demonstrates compliance with 

USPAP on all initial or upgrade 

applications for appraiser 

credentialing.77

7. Persons analyzing work product for 

USPAP compliance must be 

knowledgeable about appraisal practice 

and USPAP, and States must be able to 

document how such persons are so 

qualified.78

8. Experience time periods must 

conform to requirements set forth in the 

AQB Criteria for the credential sought.79

Examination 

1. States must ensure that an 

appropriate AQB-approved qualifying 

examination is administered for each of 

the federally recognized credentials 

requiring an examination.80

Policy Statement 5 

Reciprocity 

A. Reciprocity Policy 

Title XI contemplates the reasonably 

free movement of certified and licensed 

appraisers across State lines. The ASC 

monitors Appraiser Programs for 

compliance with the reciprocity 

provision of Title XI as amended by the 

Dodd-Frank Act.81 Title XI requires that 

in order for a State’s appraisers to be 

eligible to perform appraisals for 

federally related transactions, the State 

must have a policy in place for issuing 

reciprocal credentials IF: 

a. The appraiser is coming from a 

State (Home State) that is ‘‘in 

compliance’’ with Title XI as 

determined by the ASC; AND 

b. (i) the appraiser holds a valid 

credential from the Home State; AND 

(ii) the credentialing requirements of 

the Home State 82 meet or exceed those 

of the reciprocal credentialing State 

(Reciprocal State).83

An appraiser relying on a credential 

from a State that does not have such a 

policy in place may not perform 

appraisals for federally related 

transactions. A State may be more 

lenient in the issuance of reciprocal 

credentials by implementing a more 

open door policy. However, States 

cannot impose additional impediments 

to obtaining reciprocal credentials. 

For purposes of implementing the 

reciprocity policy, States with an ASC 

Finding 84 of ‘‘Poor’’ do not satisfy the 

‘‘in compliance’’ provision for 

reciprocity. Therefore, States are not 

required to recognize, for purposes of 

granting a reciprocal credential, the 

license or certification of an appraiser 

credentialed in a State with an ASC 

Finding of ‘‘Poor.’’ 

B. Application of Reciprocity Policy 

The following examples illustrate 

application of reciprocity in a manner 

that complies with Title XI. The 

examples refer to the reciprocity policy 

requiring issuance of a reciprocal 

credential IF: 

a. The appraiser is coming from a 

State that is ‘‘in compliance’’; AND 

b. (i) the appraiser holds a valid 

credential from that State; AND 

(ii) the credentialing requirements of 

that State (as they currently exist) meet 

or exceed those of the reciprocal 

credentialing State (as they currently 

exist). 

Example 1. Additional Requirements 

Imposed on Applicants 

State A requires that prior to issuing 

a reciprocal credential the applicant 

must certify that disciplinary 

proceedings are not pending against that 

applicant in any jurisdiction. Under 

b.(ii) above, if this requirement is not 

imposed on all of its own applicants for 

credentialing, STATE A cannot impose 

this requirement on applicants for 

reciprocal credentialing. 

Example 2. Credentialing Requirements 

An appraiser is seeking a reciprocal 

credential in STATE A. The appraiser 

holds a valid credential in STATE Z, 

even though it was issued in 2007. This 

satisfies b.(i) above. However, in order 

to satisfy b.(ii), STATE A would 

evaluate STATE Z’s credentialing 

requirements as they currently exist to 

determine whether they meet or exceed 

STATE A’s current requirements for 

credentialing. 

Example 3. Multiple State Credentials 

An appraiser credentialed in several 

States is seeking a reciprocal credential 

in State A. That appraiser’s initial 

credentials were obtained through 

examination in the original 

credentialing State and through 

reciprocity in the additional States. 

State A requires the applicant to provide 

a ‘‘letter of good standing’’ from the 

State of original credentialing as a 

condition of granting a reciprocal 

credential. State A may not impose such 

a requirement since Title XI does not 


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85A State may offer to accept continuing 

education (CE) for a renewal applicant who has 

satisfied CE requirements of a home State; however, 

a State may not impose this as a requirement for 

renewal, thereby imposing a requirement for the 

renewal applicant to retain a home State credential. 

86Title XI § 1122(b), 12 U.S.C. 3351. 

87 Id. 

88Title XI § 1118(a), 12 U.S.C. 3347. 

89For example: 

(1) Consent agreements requiring additional 

education should not specify a particular course 

provider when there are other providers on the 

State’s approved course listing offering the same 

course; and 

(2) courses from professional organizations 

should not be automatically approved and/or 

approved in a manner that is less burdensome than 

the State’s normal approval process. 

90Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

91Title XI § 1118(a), 12 U.S.C. 3347. 

92Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

93Title XI § 1118(a), 12 U.S.C. 3347. 

94See Appendix B, Glossary of Terms, for the 

definition of ‘‘complaint.’’ 

95The one-year period for resolution of 

complaints is not intended to have the impact of a 

statute of limitation or statute of repose. 

distinguish between credentials 

obtained by examination and 

credentials obtained by reciprocity for 

purposes of granting reciprocal 

credentials. 

C. Appraiser Compliance Requirements 

In order to maintain a credential 

granted by reciprocity, appraisers must 

comply with the credentialing State’s 

policies, rules and statutes governing 

appraisers, including requirements for 

payment of certification and licensing 

fees, as well as continuing education.85

D. Well-Documented Application Files 

States must obtain and maintain 

sufficient relevant documentation 

pertaining to an application for issuance 

of a credential by reciprocity so as to 

enable understanding of the facts and 

determinations in the matter and the 

reasons for those determinations. 

E. Summary of Requirements 

1. States must have a reciprocity 

policy in place for issuing a reciprocal 

credential to an appraiser from another 

State under the conditions specified in 

Title XI in order for the State’s 

appraisers to be eligible to perform 

appraisals for federally related 

transactions.86

2. States may be more lenient in the 

issuance of reciprocal credentials by 

implementing a more open door policy; 

however, States may not impose 

additional impediments to issuance of 

reciprocal credentials.87

3. States must obtain and maintain 

sufficient relevant documentation 

pertaining to an application for issuance 

of a credential by reciprocity so as to 

enable understanding of the facts and 

determinations in the matter and the 

reasons for those determinations.88

Policy Statement 6 

Education 

AQB Criteria sets forth minimum 

requirements for appraiser education 

courses. This Policy Statement 

addresses proper administration of 

education requirements for compliance 

with AQB Criteria. (For requirements 

concerning qualifying and continuing 

education in the application process, 

see Policy Statement 4, Application 

Process.) 

A. Course Approval 

States must ensure that approved 

appraiser education courses are 

consistent with AQB Criteria and 

maintain sufficient documentation to 

support that approved appraiser 

education courses conform to AQB 

Criteria. 

States should ensure that course 

approval expiration dates assigned by 

the State coincide with the endorsement 

period assigned by the AQB’s Course 

Approval Program or any other AQBapproved organization providing 

approval of course design and delivery. 

States may not continue to accept AQB 

approved courses after the AQB’s 

expiration date unless the course 

content is reviewed and approved by 

the State. 

States should ensure that educational 

providers are afforded equal treatment 

in all respects.89

States are encouraged to accept 

courses approved by the AQB’s Course 

Approval Program. 

B. Distance Education 

States must ensure that distance 

education courses meet AQB Criteria 

and that the delivery mechanism for 

distance education courses offered by a 

non-academic provider, including 

secondary providers, has been approved 

by an AQB-approved organization 

providing approval of course design and 

delivery. 

States may not continue to accept 

courses after the AQB-approved 

organization’s approval of course design 

and delivery date has expired. 

C. Summary of Requirements 

1. States must ensure that appraiser 

education courses are consistent with 

AQB Criteria.90

2. States must maintain sufficient 

documentation to support that approved 

appraiser courses conform to AQB 

Criteria.91

3. States must ensure the delivery 

mechanism for distance education 

courses offered by a non-academic 

provider, including secondary 

providers, has been approved by an 

AQB-approved organization providing 

approval of course design and 

delivery.92

Policy Statement 7 

State Agency Enforcement 

A. State Agency Regulatory Program 

Title XI requires the ASC to monitor 

the States for the purpose of 

determining whether the State processes 

complaints and completes 

investigations in a reasonable time 

period, appropriately disciplines 

sanctioned appraisers and maintains an 

effective regulatory program.93

B. Enforcement Process 

States must ensure that the system for 

processing and investigating 

complaints 94 and sanctioning 

appraisers is administered in a timely, 

effective, consistent, equitable, and 

well-documented manner. 

1. Timely Enforcement 

States must process complaints of 

appraiser misconduct or wrongdoing in 

a timely manner to ensure effective 

supervision of appraisers, and when 

appropriate, that incompetent or 

unethical appraisers are not allowed to 

continue their appraisal practice. 

Absent special documented 

circumstances, final administrative 

decisions regarding complaints must 

occur within one year (12 months) of 

the complaint filing date. 95 Special 

documented circumstances are those 

extenuating circumstances (fully 

documented) beyond the control of the 

State agency that delays normal 

processing of a complaint such as: 

complaints involving a criminal 

investigation by a law enforcement 

agency when the investigative agency 

requests that the State refrain from 

proceeding; final disposition that has 

been appealed to a higher court; 

documented medical condition of the 

respondent; ancillary civil litigation; 

and complex cases that involve multiple 

individuals and reports. Such special 

documented circumstances also include 

those periods when State rules require 

referral of a complaint to another State 

entity for review and the State agency is 

precluded from further processing of the 

complaint until it is returned. In that 

circumstance, the State agency should 

document the required referral and the 


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96Title XI § 1117, 12 U.S.C. 3346. 

97Title XI § 1118(a), 12 U.S.C. 3347. 

98 Id. 

99 Id. 

100 Id. 

101 Id. 

102 Id. 

103 Id. 

104Title XI § 1103(a)(1)(B), 12 U.S.C. 3332. AMC 

Rule means the interagency final rule on minimum 

requirements for State registration and supervision 

of AMCs (12 CFR 34.210–34.216; 12 CFR 225.190– 

225.196; 12 CFR 323.8–323.14; 12 CFR 1222.20– 

1222.26. 

time period during which the complaint 

was not under its control or authority. 

2. Effective Enforcement 

Effective enforcement requires that 

States investigate allegations of 

appraiser misconduct or wrongdoing, 

and if allegations are proven, take 

appropriate disciplinary or remedial 

action. Dismissal of an alleged violation 

solely due to an ‘‘absence of harm to the 

public’’ is inconsistent with Title XI. 

Financial loss or the lack thereof is not 

an element in determining whether 

there is a violation. The extent of such 

loss, however, may be a factor in 

determining the appropriate level of 

discipline. 

Persons analyzing complaints for 

USPAP compliance must be 

knowledgeable about appraisal practice 

and USPAP and States must be able to 

document how such persons are so 

qualified. 

States must analyze each complaint to 

determine whether additional 

violations, especially those relating to 

USPAP, should be added to the 

complaint. 

Closure of a complaint based solely 

on a State’s statute of limitations that 

results in dismissal of a complaint 

without the investigation of the merits 

of the complaint is inconsistent with the 

Title XI requirement that States assure 

effective supervision of the activities of 

credentialed appraisers.96

3. Consistent and Equitable Enforcement 

Absent specific documented facts or 

considerations, substantially similar 

cases within a State should result in 

similar dispositions. 

4. Well-Documented Enforcement 

States must obtain and maintain 

sufficient relevant documentation 

pertaining to a matter so as to enable 

understanding of the facts and 

determinations in the matter and the 

reasons for those determinations. 

a. Complaint Files 

Complaint files must: 

• Include documentation outlining 

the progress of the investigation; 

• demonstrate that appraisal reports 

are analyzed and any USPAP violations 

are identified and considered, whether 

or not they were the subject of the 

complaint; 

• include rationale for the final 

outcome of the case (i.e., dismissal or 

imposition of discipline); 

• include documentation explaining 

any delay in processing, investigation or 

adjudication; 

• contain documentation that all 

ordered or agreed upon discipline, such 

as probation, fine, or completion of 

education is tracked and that 

completion of all terms is confirmed; 

and 

• be organized in a manner that 

allows understanding of the steps taken 

throughout the complaint, investigation, 

and adjudicatory process. 

b. Complaint Logs 

States must track all complaints using 

a complaint log. The complaint log must 

record all complaints, regardless of their 

procedural status in the investigation 

and/or resolution process, including 

complaints pending before the State 

board, Office of the Attorney General, 

other law enforcement agencies, and/or 

offices of administrative hearings. 

The complaint log must include the 

following information (States are 

strongly encouraged to maintain this 

information in an electronic, sortable 

format): 

1. Case number 

2. Name of respondent 

3. Actual date the complaint was 

received by the State 

4. Source of complaint (e.g., consumer, 

lender, AMC, bank regulator, 

appraiser, hotline) or name of 

complainant 

5. Current status of the complaint 

6. Date the complaint was closed (e.g., 

final disposition by the 

administrative hearing agency, 

Office of the Attorney General, State 

Appraiser Regulatory Agency or 

Court of Appeals) 

7. Method of disposition (e.g., dismissal, 

letter of warning, consent order, 

final order) 

8. Terms of disposition (e.g., probation, 

fine, education, mentorship) 

9. In the case of open complaints, the 

most recent activity and date 

thereof (e.g. respondent’s response 

to complaint received, contacted 

Attorney General for a status 

update, Board voted to offer a 

consent agreement) 

C. Summary of Requirements 

1. States must maintain relevant 

documentation to enable understanding 

of the facts and determinations in the 

matter and the reasons for those 

determinations.97

2. States must resolve all complaints 

filed against appraisers within one year 

(12 months) of the complaint filing date, 

except for special documented 

circumstances.98

3. States must ensure that the system 

for processing and investigating 

complaints and sanctioning appraisers 

is administered in an effective, 

consistent, equitable, and welldocumented manner.99

4. States must track complaints of 

alleged appraiser misconduct or 

wrongdoing using a complaint log.100

5. States must appropriately 

document enforcement files and include 

rationale.101

6. States must regulate, supervise and 

discipline their credentialed 

appraisers.102

7. Persons analyzing complaints for 

USPAP compliance must be 

knowledgeable about appraisal practice 

and USPAP, and States must be able to 

document how such persons are so 

qualified.103

Part B: AMC Program 

Policy Statement 8 

Statutes, Regulations, Policies and 

Procedures Governing State AMC 

Programs 

A. Participating States and ASC 

Oversight 

States are not required to establish an 

AMC registration and supervision 

program. For those States electing to 

participate in the registration and 

supervision of AMCs (participating 

States), ASC staff will informally 

monitor the State’s progress to 

implement the requirements of Title XI 

and the AMC Rule.104 Formal ASC 

oversight of State AMC Programs will 

begin at the next regularly scheduled 

Compliance Review of a State after the 

following occurs: 

1. A State decides to be a participating 

State pursuant to the AMC Rule; 

2. A State establishes an AMC 

program in accordance with the AMC 

Rule; and 

3. A State begins reporting to the 

National Registry of AMCs (AMC 

Registry). 

Formal ASC oversight will consist of 

evaluating AMC Programs in 

participating States during the 

Compliance Review process to 

determine compliance or lack thereof 

with Title XI, and to assess 

implementation of the minimum 

requirements for State registration and 

supervision of AMCs as established by 


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105Title XI as amended by the Dodd-Frank Act 

defines ‘‘appraisal management company’’ to mean, 

in part, an external third party that oversees a 

network or panel of more than 15 appraisers (State 

certified or licensed) in a State, or 25 or more 

appraisers nationally (two or more States) within a 

given year. (12 U.S.C. 3350(11).) Title XI as 

amended by the Dodd-Frank Act also allows States 

to adopt requirements in addition to those in the 

AMC Rule. (12 U.S.C. 3353(b).) For example, States 

may decide to supervise entities that provide 

appraisal management services, but do not meet the 

size thresholds of the Title XI definition of AMC. 

If a State has a more expansive regulatory 

framework that covers entities that provide 

appraisal management services but do not meet the 

Title XI definition of AMC, the State should only 

submit information regarding AMCs meeting the 

Title XI definition to the AMC Registry. 

106See footnote 107. 

107 ‘‘Federally regulated AMCs,’’ meaning AMCs 

that are subsidiaries owned and controlled by an 

insured depository institution or an insured credit 

union and regulated by a Federal financial 

institutions regulatory agency, are not required to 

register with the State (Title XI § 1124(c), 12 U.S.C. 

3353(c)). 

108An AMC subject to State registration is not 

barred from being registered by a State or included 

on the AMC Registry of AMCs if the license or 

certificate of the appraiser with an ownership 

interest was not revoked for a substantive cause and 

has been reinstated by the State or States in which 

the appraiser was licensed or certified. (12 CFR 

34.210–34.216; 12 CFR 225.190–225.196; 12 CFR 

323.8–323.14; 12 CFR 1222.20–1222.26.) 

109See footnote 107. 

the AMC Rule. Upon expiration of the 

statutory implementation period (see 

Policy Statement 11, Statutory 

Implementation Period), Compliance 

Reviews will include ASC oversight of 

AMC Programs for any participating 

State. 

B. Relation to State Law 

Participating States may establish 

requirements in addition to those in the 

AMC Rule. 

Participating States may also have a 

more expansive definition of AMCs.105

However, if a participating State has a 

more expansive definition of AMCs than 

in Title XI (thereby encompassing State 

regulation of AMCs that are not within 

the Title XI definition of AMC), the 

State must ensure such AMCs are 

identified as such in the State database, 

just as States currently do for nonfederally recognized credentials or 

designations. Only those AMCs that 

meet the Federal definition of AMC will 

be eligible to be on the AMC Registry. 

C. Funding and Staffing 

The Dodd-Frank Act amended Title 

XI to require the ASC to determine 

whether participating States have 

sufficient funding and staffing to meet 

their Title XI requirements. Compliance 

with this provision requires that a State 

must provide its AMC Program with 

funding and staffing sufficient to carry 

out its Title XI-related duties. The ASC 

evaluates the sufficiency of funding and 

staffing as part of its review of all 

aspects of an AMC Program’s 

effectiveness, including the adequacy of 

State boards, committees, or 

commissions responsible for carrying 

out Title XI-related duties. 

D. Minimum Requirements for 

Registration and Supervision of AMCs 

as Established by the AMC Rule 

1. AMC Registration and Supervision 

If a State chooses to participate in the 

registration and supervision of AMCs in 

accordance with the AMC Rule, the 

State will be required to comply with 

the minimum requirements set forth in 

the AMC Rule. States should refer to the 

AMC Rule for compliance 

requirements 106 as this Policy 

Statement merely summarizes what the 

AMC Rule requires of participating 

States. 

(a) The AMC Rule includes 

requirements for participating States to 

establish and maintain within the State 

appraiser certifying and licensing 

agency an AMC Program with the legal 

authority and mechanisms to: 

(1) Review and approve or deny AMC 

initial registration applications and/or 

renewals for registration; 

(2) Examine records of AMCs and 

require AMCs to submit information; 

(3) Verify that appraisers on AMCs’ 

panels hold valid State credentials; 

(4) Conduct investigations of AMCs to 

assess potential violations of appraisalrelated laws, regulations, or orders; 

(5) Discipline, suspend, terminate, or 

deny renewal of the registration of an 

AMC that violates appraisal-related 

laws, regulations, or orders; and 

(6) Report an AMC’s violation of 

appraisal-related laws, regulations, or 

orders, as well as disciplinary and 

enforcement actions and other relevant 

information about an AMC’s operations, 

to the ASC. 

(b) The AMC Rule includes 

requirements for participating States to 

impose requirements on AMCs that are 

not Federally regulated AMCs 107 to: 

(1) Register with and be subject to 

supervision by the State appraiser 

certifying and licensing agency; 

(2) Engage only State-certified or 

State-licensed appraisers for federally 

related transactions in conformity with 

any federally related transaction 

regulations; 

(3) Establish and comply with 

processes and controls reasonably 

designed to ensure that the AMC, in 

engaging an appraiser, selects an 

appraiser who is independent of the 

transaction and who has the requisite 

education, expertise, and experience 

necessary to competently complete the 

appraisal assignment for the particular 

market and property type; 

(4) Direct the appraiser to perform the 

assignment in accordance with USPAP; 

and 

(5) Establish and comply with 

processes and controls reasonably 

designed to ensure that the AMC 

conducts its appraisal management 

services in accordance with the 

requirements of section 129E(a) through 

(i) of the Truth in Lending Act, 15 

U.S.C. 1639e(a) through (i), and 

regulations thereunder. 

2. Ownership Limitations for StateRegistered AMCs 

A. Appraiser Certification or Licensing 

of Owners 

An AMC subject to State registration 

shall not be registered by a State or 

included on the AMC Registry if such 

AMC, in whole or in part, directly or 

indirectly, is owned by any person who 

has had an appraiser license or 

certificate refused, denied, cancelled, 

surrendered in lieu of revocation, or 

revoked in any State for a substantive 

cause,108 as determined by the State 

appraiser certifying and licensing 

agency. A State’s process for review 

could, for example, be by questionnaire, 

or affidavit, or background screening, or 

otherwise. States must document to the 

file the State’s method of review and the 

result. 

B. Good Moral Character of Owners 

An AMC shall not be registered by a 

State if any person that owns more than 

10 percent of the AMC— 

(1) Is determined by the State not to 

have good moral character; or 

(2) Fails to submit to a background 

investigation carried out by the State. 

A State’s process for review could, for 

example, be by questionnaire, or 

affidavit, or background screening, or 

otherwise. The ASC would expect 

written documentation of the State’s 

method of review and the result. 

3. Requirements for Federally Regulated 

AMCs 

Participating States are not required to 

identify Federally regulated AMCs 109

operating in their States, but rather the 

Federal financial institution regulatory 

agencies are responsible for requiring 

such AMCs to identify themselves to 

participating States and report required 

information. 

A Federally regulated AMC shall not 

be included on the AMC Registry if such 

AMC, in whole or in part, directly or 

indirectly, is owned by any person who 


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110 12 CFR 34.210–34.216; 12 CFR 225.190– 

225.196; 12 CFR 323.8–323.14; 12 CFR 1222.20– 

1222.26. 

111 Id. 

112 Id. 

113Title XI § 1118(b), 12 U.S.C. 3347. 

114 Id. 

115Title XI § 1103(a)(6), 12 U.S.C. 3332. 

116Title XI § 1109(a)(4), 12 U.S.C. 3338. 

117Title XI § 1109(a)(3) and (4), 12 U.S.C. 3338. 

118See Appendix B, Glossary of Terms, for the 

definition of ‘‘disciplinary action.’’ 

119Title XI § 1118(a), 12 U.S.C. 3347; Title XI 

§ 1109(a), 12 U.S.C. 3338. 

120Title XI § 1118(a), 12 U.S.C. 3347. 

121 Id. 

122 Id. 

123 Id. 

124 Id. 

125 Id. 

has had an appraiser license or 

certificate refused, denied, cancelled, 

surrendered in lieu of revocation, or 

revoked in any State for a substantive 

cause, as determined by the ASC. 

E. Summary of Requirements 

1. Participating States must establish 

and maintain an AMC Program with the 

legal authority and mechanisms 

consistent with the AMC Rule.110

2. Participating States must impose 

requirements on AMCs consistent with 

the AMC Rule.111

3. Participating States must enforce 

and document ownership limitations for 

State-registered AMCs.112

4. Only those AMCs that meet the 

Federal definition of AMC will be 

eligible to be on the AMC Registry. 

Therefore, participating States that have 

a more expansive definition of AMCs 

than in the AMC Rule must ensure such 

non-Federally recognized AMCs are 

identified as such in the State 

database.113

5. States must have funding and 

staffing sufficient to carry out their Title 

XI-related duties.114

Policy Statement 9 

National Registry of AMCs (AMC 

Registry) 

A. Requirements for the AMC Registry 

Title XI requires the ASC to maintain 

the AMC Registry of AMCs that are 

either registered with and subject to 

supervision of a participating State or 

are operating subsidiaries of a Federally 

regulated financial institution.115 Title 

XI further requires the States to transmit 

to the ASC: (1) Reports on a timely basis 

of supervisory activities involving 

AMCs, including investigations 

resulting in disciplinary action being 

taken; and (2) the registry fee as set by 

the ASC116 from AMCs that are either 

registered with a participating State or 

are Federally regulated AMCs.117

As with appraiser registry fees, Title 

XI, § 1109(a)(4)(b) requires the AMC 

registry fee to be collected by each 

participating State and transmitted to 

the ASC. Therefore, as with appraisers, 

an AMC will pay a registry fee in each 

participating State in which the AMC 

operates. As with appraisers, an AMC 

operating in multiple participating 

States will pay a registry fee in multiple 

States in order to be on the AMC 

Registry for each State. 

States must notify the ASC as soon as 

practicable if an AMC listed on the 

AMC Registry is no longer registered 

with or operating in the State. The ASC 

extranet application allows States to 

update their AMC information directly 

to the AMC Registry. 

B. Registry Fee and Invoicing Policies 

Each State must remit to the ASC the 

annual registry fee, as set by the ASC, 

for AMCs to be listed on the AMC 

Registry. Requests to prorate refunds or 

partial-year registrations will not be 

granted. If a State collects multiple-year 

fees for multiple-years, the State may 

choose to remit to the ASC the total 

amount of the multiple-year registry fees 

or the equivalent annual fee amount. 

The ASC will, however, record AMCs 

on the AMC Registry only for the 

number of years for which the ASC has 

received payment. States must reconcile 

and pay registry invoices in a timely 

manner (45 calendar days after receipt 

of the invoice). 

C. Reporting Requirements 

State agencies must report all 

disciplinary action 118 taken against an 

AMC to the ASC via the extranet 

application within 5 business days after 

the disciplinary action is final, as 

determined by State law. States not 

reporting via the extranet application 

must provide, in writing to the ASC, a 

description of the circumstances 

preventing compliance with this 

requirement. For the most serious 

disciplinary actions (e.g., any action that 

interrupts an AMCs ability to provide 

appraisal management services), the 

AMCs status must be changed on the 

AMC Registry to ‘‘inactive.’’ A Federally 

regulated AMC operating in a State must 

report to the State the information 

required to be submitted by the State to 

the ASC, pursuant to the ASC’s policies 

regarding the determination of the AMC 

Registry fee. 

D. Access to AMC Registry Data 

The ASC Web site provides free 

access to the public portion of the AMC 

Registry at www.asc.gov. The public 

portion of the AMC Registry data may 

be downloaded using predefined 

queries or user-customized applications. 

Access to the full database, which 

includes non-public data (e.g., certain 

disciplinary action information), is 

restricted to authorized State and 

Federal regulatory agencies. States must 

designate a senior official, such as an 

executive director, to serve as the State’s 

Authorized Registry Official, and 

provide to the ASC, in writing, 

information regarding the designated 

Authorized Registry Official. States 

must ensure that the authorization 

information provided to the ASC is 

updated and accurate. States must adopt 

and implement a written policy to 

protect the right of access, as well as the 

ASC issued User Name and Password. 

E. Summary of Requirements 

1. States must reconcile and pay 

registry invoices in a timely manner (45 

calendar days after receipt of the 

invoice).119

2. State agencies must report all 

disciplinary action taken against an 

AMC to the ASC via the extranet 

application within 5 business days after 

the disciplinary action is final, as 

determined by State law.120

3. States not reporting via the extranet 

application must provide, in writing to 

the ASC, a description of the 

circumstances preventing compliance 

with this requirement.121

4. For the most serious disciplinary 

actions (e.g., any action that interrupts 

an AMC’s ability to provide appraisal 

management services), the AMC’s status 

must be changed on the AMC Registry 

to ‘‘inactive.’’ 122

5. States must notify the ASC as soon 

as practicable if an AMC listed on the 

AMC Registry is no longer registered 

with or operating in the State. 

6. States must designate a senior 

official, such as an executive director, 

who will serve as the State’s Authorized 

Registry Official, and provide to the 

ASC, in writing, information regarding 

the selected Authorized Registry 

Official, and any individual(s) 

authorized to act on their behalf.123

7. States must adopt and implement a 

written policy to protect the right of 

access to the AMC Registry, as well as 

the ASC issued User Name and 

Password.124

8. States must ensure the accuracy of 

all data submitted to the AMC 

Registry.125


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126Title XI § 1118(a), 12 U.S.C. 3347. 

127See Appendix B, Glossary of Terms, for the 

definition of ‘‘complaint.’’ 

128See Appendix B, Glossary of Terms, for the 

definition of ‘‘well-documented.’’ 

129Title XI § 1118(a), 12 U.S.C. 3347. 

130 Id. 

131 Id. 

132 Id. 

133 Id. 

134Title XI § 1124(f)(1), 12 U.S.C. 3353 and 12 

CFR 34.210–34.216; 12 CFR 225.190–225.196; 12 

CFR 323.8–323.14; 12 CFR 1222.20–1222.26. 

135Title XI § 1124(f)(2), 12 U.S.C. 3353. 

Policy Statement 10 

State Agency Enforcement 

A. State Agency Regulatory Program 

Title XI requires the ASC to monitor 

the States for the purpose of 

determining whether the State processes 

complaints and completes 

investigations in a reasonable time 

period, appropriately disciplines 

sanctioned AMCs and maintains an 

effective regulatory program.126

B. Enforcement Process 

States must ensure that the system for 

processing and investigating 

complaints 127 and sanctioning AMCs is 

administered in a timely, effective, 

consistent, equitable, and welldocumented 128 manner. 

1. Timely Enforcement 

States must process complaints 

against AMCs in a timely manner to 

ensure effective supervision of AMCs. 

Absent special documented 

circumstances, final administrative 

decisions regarding complaints must 

occur within one year (12 months) of 

the complaint filing date. Special 

documented circumstances are those 

extenuating circumstances (fully 

documented) beyond the control of the 

State agency that delays normal 

processing of a complaint such as: 

Complaints involving a criminal 

investigation by a law enforcement 

agency when the investigative agency 

requests that the State refrain from 

proceeding; final disposition that has 

been appealed to a higher court; 

documented medical condition of the 

respondent; ancillary civil litigation; 

and complex fraud cases that involve 

multiple individuals and reports. Such 

special documented circumstances also 

include those periods when State rules 

require referral of a complaint to 

another State entity for review and the 

State agency is precluded from further 

processing of the complaint until it is 

returned. In that circumstance, the State 

agency should document the required 

referral and the time period during 

which the complaint was not under its 

control or authority. 

2. Effective Enforcement 

Effective enforcement requires that 

States investigate complaints, and if 

allegations are proven, take appropriate 

disciplinary or remedial action. 

3. Consistent and Equitable Enforcement 

Absent specific documented facts or 

considerations, substantially similar 

cases within a State should result in 

similar dispositions. 

4. Well-Documented Enforcement 

States must obtain and maintain 

sufficient relevant documentation 

pertaining to a matter so as to enable 

understanding of the facts and 

determinations in the matter and the 

reasons for those determinations. 

a. Complaint Files 

Complaint files must: 

• Include documentation outlining 

the progress of the investigation; 

• include rationale for the final 

outcome of the case (i.e., dismissal or 

imposition of discipline); 

• include documentation explaining 

any delay in processing, investigation or 

adjudication; 

• contain documentation that all 

ordered or agreed upon discipline is 

tracked and that completion of all terms 

is confirmed; and 

• be organized in a manner that 

allows understanding of the steps taken 

throughout the complaint, investigation, 

and adjudicatory process. 

b. Complaint Logs 

States must track all complaints using 

a complaint log. The complaint log must 

record all complaints, regardless of their 

procedural status in the investigation 

and/or resolution process, including 

complaints pending before the State 

board, Office of the Attorney General, 

other law enforcement agencies, and/or 

offices of administrative hearings. The 

complaint log must include the 

following information (States are 

strongly encouraged to maintain this 

information in an electronic, sortable 

format): 

1. Case number 

2. Name of respondent 

3. Actual date the complaint was 

received by the State 

4. Source of complaint (e.g., consumer, 

lender, AMC, bank regulator, 

appraiser, hotline) or name of 

complainant 

5. Current status of the complaint 

6. Date the complaint was closed (e.g., 

final disposition by the 

administrative hearing agency, 

Office of the Attorney General, State 

AMC Program or Court of Appeals) 

7. Method of disposition (e.g., dismissal, 

letter of warning, consent order, 

final order) 

8. Terms of disposition (e.g., probation, 

fine) 

9. In the case of open complaints, the 

most recent activity and date 

thereof (e.g. respondent’s response 

to complaint received, contacted 

Attorney General for a status 

update, Board voted to offer a 

consent agreement) 

C. Summary of Requirements 

1. States must maintain relevant 

documentation to enable understanding 

of the facts and determinations in the 

matter and the reasons for those 

determinations.129

2. States must resolve all complaints 

filed against appraisers within one year 

(12 months) of the complaint filing date, 

except for special documented 

circumstances.130

3. States must ensure that the system 

for processing and investigating 

complaints and sanctioning AMCs is 

administered in an effective, consistent, 

equitable, and well-documented 

manner.131

4. States must track complaints of 

alleged appraiser misconduct or 

wrongdoing using a complaint log.132

5. States must appropriately 

document enforcement files and include 

rationale.133

Policy Statement 11 

Statutory Implementation Period 

Title XI and the AMC Rule set forth 

the statutory implementation period.134

The AMC Rule was effective on August 

10, 2015. As of 36 months from that date 

(August 10, 2018), an AMC may not 

provide appraisal management services 

for a federally related transaction in a 

non-participating State unless the AMC 

is a Federally regulated AMC. Appraisal 

management services may still be 

provided for federally related 

transactions in non-participating States 

by individual appraisers, by AMCs that 

are below the minimum statutory panel 

size threshold, and as noted, by 

Federally regulated AMCs. 

The ASC, with the approval of the 

Federal Financial Institutions 

Examination Council (FFIEC), may 

extend this statutory implementation 

period for an additional 12 months if 

the ASC makes a finding that a State has 

made substantial progress toward 

implementing a registration and 

supervision program for AMCs that 

meets the standards of Title XI.135


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136Title XI § 1118(a), 12 U.S.C. 3347. 

137 Id. 

138See Appendix A—Compliance Review Process. 

139Title XI § 1118(a), 12 U.S.C. 3347. 

140The proceeding is more in the nature of a 

Briefing not subject to open meeting requirements. 

The presentation is an opportunity for the State to 

brief the ASC—to offer, emphasize and clarify the 

facts, policies and laws concerning the proceeding, 

and for the ASC members to ask questions. 

Additional consideration is given to the fact that 

this stage of the proceeding is pre-decisional. 

Part C: Interim Sanctions 

Policy Statement 12 

Interim Sanctions 

A. Authority 

Title XI grants the ASC authority to 

impose sanctions on a State that fails to 

have an effective Appraiser or AMC 

Program.136 The ASC may remove a 

State credentialed appraiser or a 

registered AMC from the Appraiser or 

AMC Registry on an interim basis, not 

to exceed 90 days, pending State agency 

action on licensing, certification, 

registration and disciplinary 

proceedings as an alternative to or in 

advance of a non-recognition 

proceeding.137 In determining whether 

an Appraiser or AMC Program is 

effective, the ASC shall conduct an 

analysis as required by Title XI. An ASC 

Finding of Poor on the Compliance 

Review Report 138 issued to a State at 

the conclusion of an ASC Compliance 

Review may trigger an analysis by the 

ASC for potential interim sanction(s). 

The following provisions apply to the 

exercise by the ASC of its authority to 

impose interim sanction(s) on State 

agencies. 

B. Opportunity To Be Heard or Correct 

Conditions 

The ASC shall provide the State 

agency with: 

1. Written notice of intention to 

impose an interim sanction; and 

2. opportunity to respond or to correct 

the conditions causing such notice to 

the State. 

Notice and opportunity to respond or 

correct the conditions shall be in 

accordance with section C, Procedures. 

C. Procedures 

This section prescribes the ASC’s 

procedures which will be followed in 

arriving at a decision by the ASC to 

impose an interim sanction against a 

State agency. 

1. Notice 

The ASC shall provide a written 

Notice of intention to impose an interim 

sanction (Notice) to the State agency. 

The Notice shall contain the ASC’s 

analysis as required by Title XI of the 

State’s licensing and certification of 

appraisers, the registration of AMCs, the 

issuance of temporary licenses and 

certifications for appraisers, the 

receiving and tracking of submitted 

complaints against appraisers and 

AMCs, the investigation of complaints, 

and enforcement actions against 

appraisers and AMCs.139 The ASC shall 

verify the State’s date of receipt, and 

publish both the Notice and the State’s 

date of receipt in the Federal Register. 

2. State Agency Response 

Within 15 days of receipt of the 

Notice, the State may submit a response 

to the ASC’s Executive Director. 

Alternatively, a State may submit a 

Notice Not to Contest with the ASC’s 

Executive Director. The filing of a 

Notice Not to Contest shall not 

constitute a waiver of the right to a 

judicial review of the ASC’s decision, 

findings and conclusions. Failure to file 

a Response within 15 days shall 

constitute authorization for the ASC to 

find the facts to be as presented in the 

Notice and analysis. The ASC, for good 

cause shown, may permit the filing of a 

Response after the prescribed time. 

3. Briefs, Memoranda and Statements 

Within 45 days after the date of 

receipt by the State agency of the Notice 

as published in the Federal Register, the 

State agency may file with the ASC’s 

Executive Director a written brief, 

memorandum or other statement 

providing factual data and policy and 

legal arguments regarding the matters 

set out in the Notice and analysis. 

4. Oral Presentations to the ASC 

Within 45 days after the date of 

receipt by the State agency of the Notice 

as published in the Federal Register, the 

State may file a request with the ASC’s 

Executive Director to make oral 

presentation to the ASC. If the State has 

filed a request for oral presentation, the 

matter shall be heard within 45 days. 

An oral presentation shall be considered 

as an opportunity to offer, emphasize 

and clarify the facts, policies and laws 

concerning the proceeding, and is not a 

Meeting 140 of the ASC. On the 

appropriate date and time, the State 

agency will make the oral presentation 

before the ASC. Any ASC member may 

ask pertinent questions relating to the 

content of the oral presentation. Oral 

presentations will not be recorded or 

otherwise transcribed. Summary notes 

will be taken by ASC staff and made 

part of the record on which the ASC 

shall decide the matter. 

5. Conduct of Interim Sanction 

Proceedings 

(a) Written Submissions 

All aspects of the proceeding shall be 

conducted by written submissions, with 

the exception of oral presentations 

allowed under subsection 4 above. 

(b) Disqualification 

An ASC member who deems himself 

or herself disqualified may at any time 

withdraw. Upon receipt of a timely and 

sufficient affidavit of personal bias or 

disqualification of such member, the 

ASC will rule on the matter as a part of 

the record. 

(c) Authority of ASC Chairperson 

The Chairperson of the ASC, in 

consultation with other members of the 

ASC whenever appropriate, shall have 

complete charge of the proceeding and 

shall have the duty to conduct it in a fair 

and impartial manner and to take all 

necessary action to avoid delay in the 

disposition of proceedings. 

(d) Rules of Evidence 

Except as is otherwise set forth in this 

section, relevant material and reliable 

evidence that is not unduly repetitive is 

admissible to the fullest extent 

authorized by the Administrative 

Procedure Act (5 U.S.C. 551–559) and 

other applicable law. 

6. Decision of the ASC and Judicial 

Review 

Within 90 days after the date of 

receipt by the State agency of the Notice 

as published in the Federal Register, or 

in the case of oral presentation having 

been granted, within 30 days after 

presentation, the ASC shall issue a final 

decision, findings and conclusions and 

shall publish the decision promptly in 

the Federal Register. The final decision 

shall be effective on issuance. The 

ASC’s Executive Director shall ensure 

prompt circulation of the decision to the 

State agency. A final decision of the 

ASC is a prerequisite to seeking judicial 

review. 

7. Computing Time 

Time computation is based on 

business days. The date of the act, event 

or default from which the designated 

period of time begins to run is not 

included. The last day is included 

unless it is a Saturday, Sunday, or 

Federal holiday, in which case the 

period runs until the end of the next day 

which is not a Saturday, Sunday or 

Federal holiday. 

8. Documents and Exhibits 

Unless otherwise provided by statute, 

all documents, papers and exhibits filed 


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141 5 U.S.C. 703—Form and venue of proceeding. 142An ASC Finding of ‘‘Poor’’ may result in 

significant consequences to the State. See Policy 

Statement 5, Reciprocity; see also Policy Statement 

12, Interim Sanctions. 

in connection with any proceeding, 

other than those that may be withheld 

from disclosure under applicable law, 

shall be placed by the ASC’s Executive 

Director in the proceeding’s file and will 

be available for public inspection and 

copying. 

9. Judicial Review 

A decision of the ASC under this 

section shall be subject to judicial 

review. The form of proceeding for 

judicial review may include any 

applicable form of legal action, 

including actions for declaratory 

judgments or writs of prohibitory or 

mandatory injunction in a court of 

competent jurisdiction.141

Appendices 

Appendix A—Compliance Review 

Process 

The ASC monitors State Appraiser and 

AMC Programs for compliance with Title XI. 

The monitoring of State Programs is largely 

accomplished through on-site visits known 

as a Compliance Review (Review). A Review 

is conducted over a two- to four-day period, 

and is scheduled to coincide with a meeting 

of the Program’s decision-making body 

whenever possible. ASC staff reviews the 

Appraiser Program and the seven compliance 

areas addressed in Policy Statements 1 

through 7. ASC staff reviews a participating 

State’s AMC Program and the four 

compliance areas addressed in Policy 

Statements 8 through 11. Sufficient 

documentation demonstrating compliance 

must be maintained by a State and made 

available for inspection during the Review. 

ASC staff reviews a sampling of 

documentation in each of the compliance 

areas. The sampling is intended to be 

representative of a State Program in its 

entirety. 

Based on the Review, ASC staff provides 

the State with an ASC staff report for the 

Appraiser Program, and if applicable, an ASC 

staff report for the AMC Program, detailing 

preliminary findings. The State is given 60 

days to respond to the ASC staff report(s). At 

the conclusion of the Review, a Compliance 

Review Report (Report) is issued to the State 

for the Appraiser Program, and if applicable, 

a Report is also issued for the AMC Program, 

with the ASC Finding on each Program’s 

overall compliance, or lack thereof, with 

Title XI. Deficiencies resulting in noncompliance in any of the compliance areas 

are cited in the Report. ‘‘Areas of Concern’’ 

which potentially expose a Program to 

compliance issues in the future are also 

addressed in the Report. The ASC’s final 

disposition is based upon the ASC staff 

report, the State’s response and staff’s 

recommendation. 

The following chart provides an 

explanation of the ASC Findings and rating 

criteria for each ASC Finding category. The 

ASC Finding places particular emphasis on 

whether the State is maintaining an effective 

regulatory Program in compliance with Title 

XI. 

ASC finding Rating criteria 

Review Cycle (program 

history or nature 

of deficiency 

may warrant 

a more accelerated 

Review Cycle) 

Excellent ............................... • State meets all Title XI mandates and complies with requirements of ASC Policy 

Statements.

2-year. 

• State maintains a strong regulatory Program.

• Very low risk of Program failure.

Good .................................... • State meets the majority of Title XI mandates and complies with the majority of 

ASC Policy Statement requirements.

2-year. 

• Deficiencies are minor in nature.

• State is adequately addressing deficiencies identified and correcting them in the 

normal course of business.

• State maintains an effective regulatory Program.

• Low risk of Program failure.

Needs Improvement ............. • State does not meet all Title XI mandates and does not comply with all requirements of ASC Policy Statements.2-year with additional monitoring. 

• Deficiencies are material but manageable and if not corrected in a timely manner 

pose a potential risk to the Program.

• State may have a history of repeated deficiencies but is showing progress toward 

correcting deficiencies.

• State regulatory Program needs improvement.

• Moderate risk of Program failure.

Not Satisfactory .................... • State does not meet all Title XI mandates and does not comply with all requirements of ASC Policy Statements.1-year. 

• Deficiencies present a significant risk and if not corrected in a timely manner 

pose a well-defined risk to the Program.

• State may have a history of repeated deficiencies and requires more supervision 

to ensure corrective actions are progressing.

• State regulatory Program has substantial deficiencies.

• Substantial risk of Program failure.

Poor 142 ................................ • State does not meet Title XI mandates and does not comply with requirements of 

ASC Policy Statements.

Continuous monitoring. 

• Deficiencies are significant and severe, require immediate attention and if not 

corrected represent critical flaws in the Program.

• State may have a history of repeated deficiencies and may show a lack of willingness or ability to correct deficiencies.

• High risk of Program failure.

The ASC has two primary Review Cycles: 

Two-year and one-year. Most States are 

scheduled on a two-year Review Cycle. States 

may be moved to a one-year Review Cycle if 

the ASC determines more frequent on-site 

Reviews are needed to ensure that the State 


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143A voluntary surrender that is not deemed 

disciplinary by State law or regulation, or is not 

related to any disciplinary process need not be 

reported as discipline provided the individual’s 

Appraiser Registry record is updated to show the 

credential is inactive. 

maintains an effective Program. Generally, 

States are placed on a one-year Review Cycle 

because of non-compliance issues or serious 

areas of concerns that warrant more frequent 

on-site visits. Both two-year and one-year 

Review Cycles include a review of all aspects 

of the State’s Program. 

The ASC may conduct Follow-up Reviews 

and additional monitoring. A Follow-up 

Review focuses only on specific areas 

identified during the previous on-site 

Review. Follow-up Reviews usually occur 

within 6–12 months of the previous Review. 

In addition, as a risk management tool, ASC 

staff identifies State Programs that may have 

a significant impact on the nation’s appraiser 

regulatory system in the event of Title XI 

compliance issues. For States that represent 

a significant percentage of the credentials on 

the Appraiser Registry, ASC staff performs 

annual on-site Priority Contact visits. The 

primary purpose of the Priority Contact visit 

is to review topical issues, evaluate 

regulatory compliance issues, and maintain a 

close working relationship with the State. 

This is not a complete Review of the 

Program. The ASC will also schedule a 

Priority Contact visit for a State when a 

specific concern is identified that requires 

special attention. Additional monitoring may 

be required where a deficiency is identified 

and reports on required or agreed upon 

corrective actions are required monthly or 

quarterly. Additional monitoring may 

include on-site monitoring as well as off-site 

monitoring. 

Appendix B—Glossary of Terms 

Appraisal management company (AMC): 

Refers to, in connection with valuing 

properties collateralizing mortgage loans or 

mortgages incorporated into a securitization, 

any external third party authorized either by 

a creditor of a consumer credit transaction 

secured by a consumer’s principal dwelling 

or by an underwriter of or other principal in 

the secondary mortgage markets, that 

oversees a network or panel of more than 15 

certified or licensed appraisers in a State or 

25 or more nationally within a given year— 

(A) To recruit, select, and retain appraisers; 

(B) to contract with licensed and certified 

appraisers to perform appraisal assignments; 

(C) to manage the process of having an 

appraisal performed, including providing 

administrative duties such as receiving 

appraisal orders and appraisal reports, 

submitting completed appraisal reports to 

creditors and underwriters, collecting fees 

from creditors and underwriters for services 

provided, and reimbursing appraisers for 

services performed; or 

(D) to review and verify the work of 

appraisers. 

AQB Criteria: Refers to the Real Property 

Appraiser Qualification Criteria as 

established by the Appraiser Qualifications 

Board of the Appraisal Foundation setting 

forth minimum education, experience and 

examination requirements for the licensure 

and certification of real property appraisers, 

and minimum requirements for ‘‘Trainee’’ 

and ‘‘Supervisory’’ appraisers. 

Assignment: As referenced herein, for 

purposes of temporary practice, 

‘‘assignment’’ means one or more real estate 

appraisals and written appraisal report(s) 

covered by a single contractual agreement. 

Complaint: As referenced herein, any 

document filed with, received by, or serving 

as the basis for possible inquiry by the State 

agency regarding alleged violation of Title XI, 

Federal or State law or regulation, or USPAP 

by a credentialed appraiser or appraiser 

applicant, for allegations of unlicensed 

appraisal activity, or complaints involving 

AMCs. A complaint may be in the form of a 

referral, letter of inquiry, or other document 

alleging misconduct or wrongdoing. 

Credentialed appraisers: Refers to State 

licensed, certified residential or certified 

general appraiser classifications. 

Disciplinary action: As referenced herein, 

corrective or punitive action taken by or on 

behalf of a State agency which may be formal 

or informal, or may be consensual or 

involuntary, resulting in any of the following: 

a. Revocation of credential or registration 

b. suspension of credential or registration 

c. written consent agreements, orders or 

reprimands 

d. probation or any other restriction on the 

use of a credential 

e. fine 

f. voluntary surrender 143

g. other acts as defined by State statute or 

regulation as disciplinary 

With the exception of voluntary surrender, 

suspension or revocation, such action may be 

exempt from reporting to the National 

Registry if defined by State statute, regulation 

or written policy as ‘‘non-disciplinary.’’ 

Federally related transaction: Refers to any 

real estate related financial transaction 

which: 

(a) A federal financial institutions 

regulatory agency engages in, contracts for, or 

regulates; and 

(b) requires the services of an appraiser. 

(See Title XI § 1121(4), 12 U.S.C. 3350.) 

Federal financial institutions regulatory 

agencies: Refers to the Board of Governors of 

the Federal Reserve System, the Federal 

Deposit Insurance Corporation, the Office of 

the Comptroller of the Currency, and the 

National Credit Union Administration. (See 

Title XI § 1121(6), 12 U.S.C. 3350.) 

Home State agency: As referenced herein, 

State agency or agencies that grant an 

appraiser a licensed or certified credential. 

Residency in the home State is not required. 

Appraisers may have more than one home 

State agency. 

Non-federally recognized credentials or 

designations: Refers to any State appraiser 

credential or designation other than trainee, 

State licensed, certified residential or 

certified general classifications as defined in 

Policy Statement 1, and which is not 

recognized by Title XI. 

Real estate related financial transaction: 

Any transaction involving: 

(a) the sale, lease, purchase, investment in 

or exchange of real property, including 

interests in property, or the financing thereof; 

(b) the refinancing of real property or 

interests in real property; and 

(c) the use of real property or interests in 

property as security for a loan or investment, 

including mortgage-backed securities. (See 

Title XI § 1121(5), 12 U.S.C. 3350.) 

State: Any State, the District of Columbia, 

the Commonwealth of Puerto Rico, the 

Commonwealth of the Northern Mariana 

Islands, Guam, and the United States Virgin 

Islands. (American Samoa does not have a 

Program.) 

State board: As referenced herein, ‘‘State 

board’’ means a group of individuals (usually 

appraisers, AMC representatives, bankers, 

consumers, and/or real estate professionals) 

appointed by the Governor or a similarly 

positioned State official to assist or oversee 

State Programs. A State agency may be 

headed by a board, commission or an 

individual. 

Uniform Standards of Professional 

Appraisal Practice (USPAP): Refers to 

appraisal standards promulgated by the 

Appraisal Standards Board of the Appraisal 

Foundation establishing minimum 

requirements for development and reporting 

of appraisals, including real property 

appraisal. Title XI requires appraisals 

prepared by State certified and licensed 

appraisers to be performed in conformance 

with USPAP. 

Well-documented: Means that States obtain 

and maintain sufficient relevant 

documentation pertaining to a matter so as to 

enable understanding of the facts and 

determinations in the matter and the reasons 

for those determinations. 

* * * * * 

By the Appraisal Subcommittee. 

Dated: September 13, 2017. 

Arthur Lindo, 

Chairman. 

[FR Doc. 2017–19998 Filed 9–19–17; 8:45 am] 

BILLING CODE 6700–01–P 

FEDERAL MARITIME COMMISSION 

Notice of Agreement Filed 

The Commission hereby gives notice 

of the filing of the following agreement 

under the Shipping Act of 1984. 

Interested parties may submit comments 

on the agreement to the Secretary, 

Federal Maritime Commission, 

Washington, DC 20573, within twelve 

days of the date this notice appears in 

the Federal Register. A copy of the 

agreement is available through the 

Commission’s Web site (www.fmc.gov) 

or by contacting the Office of 

Agreements at (202) 523–5793 or 

tradeanalysis@fmc.gov. 

Agreement No.: 012487–001. 

Title: Eastern Car Liner Ltd/Austral 

Asia Line Pte. Ltd Space Charter 

Agreement. 

Parties: Eastern Car Liner, Ltd. and 

Austral Asia Line Pte Ltd. 


sradovich on DSKBBY8HB2PROD with NOTICES