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‘‘(C) QUALIFIED
APPRAISER
DEFINED.— 
For purposes of this subsection, the term 
‘qualified appraiser’ means a person who— 
‘‘(i) is certified or licensed by the 
State in which the property to be ap-
praised is located; and 
‘‘(ii) performs each appraisal in con-
formity with the Uniform Standards of 
Professional Appraisal Practice and title 
XI of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989, 
and the regulations prescribed under such 
title, as in effect on the date of the ap-
praisal. 
‘‘(3) FREE
COPY
OF
APPRAISAL.—A creditor 
shall provide 1 copy of each appraisal conducted in 
accordance with this subsection in connection with a 
mortgage referred to in section 103(aa) to the con-
sumer without charge, and at least 3 days prior to 
the transaction closing date. 
‘‘(4) CONSUMER NOTIFICATION.—At the time 
of the initial mortgage application, the consumer 
shall be provided with a statement by the creditor 
that any appraisal prepared for the mortgage is for 
the sole use of the creditor, and that the consumer 
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may choose to have a separate appraisal conducted 
at their own expense. 
‘‘(5) VIOLATIONS.—In addition to any other li-
ability to any person under this title, a creditor 
found to have willfully failed to obtain an appraisal 
as required in this subsection shall be liable to the 
consumer for the sum of $2,000.’’. 
SEC. 702. UNFAIR AND DECEPTIVE PRACTICES AND ACTS 
RELATING TO CERTAIN CONSUMER CREDIT 
TRANSACTIONS. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by inserting 
after section 129C (as added by section 601) the following 
new section: 
‘‘SEC. 129D. UNFAIR AND DECEPTIVE PRACTICES AND ACTS 
RELATING TO CERTAIN CONSUMER CREDIT 
TRANSACTIONS. 
‘‘(a) IN GENERAL.—It shall be unlawful, in providing 
any services for a consumer credit transaction secured by 
the principal dwelling of the consumer, to engage in any 
unfair or deceptive act or practice as described in or pur-
suant to regulations prescribed under this section. 
‘‘(b) APPRAISAL INDEPENDENCE.—For purposes of 
subsection (a), unfair and deceptive practices shall in-
clude— 
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‘‘(1) any appraisal of a property offered as se-
curity for repayment of the consumer credit trans-
action that is conducted in connection with such 
transaction in which a person with an interest in the 
underlying transaction compensates, coerces, extorts, 
colludes, instructs, induces, bribes, or intimidates a 
person conducting or involved in an appraisal, or at-
tempts, to compensate, coerce, extort, collude, in-
struct, induce, bribe, or intimidate such a person, 
for the purpose of causing the appraised value as-
signed, under the appraisal, to the property to be 
based on any factor other than the independent 
judgment of the appraiser; 
‘‘(2) 
mischaracterizing, 
or 
suborning 
any 
mischaracterization of, the appraised value of the 
property securing the extension of the credit; 
‘‘(3) seeking to influence an appraiser or other-
wise to encourage a targeted value in order to facili-
tate the making or pricing of the transaction; and 
‘‘(4) failing to timely compensate an appraiser 
for a completed appraisal regardless of whether the 
transaction closes. 
‘‘(c) EXCEPTIONS.—The requirements of subsection 
(b) shall not be construed as prohibiting a mortgage lend-
er, mortgage broker, mortgage banker, real estate broker, 
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appraisal management company, employee of an appraisal 
management company, or any other person with an inter-
est in a real estate transaction from asking an appraiser 
to provide 1 or more of the following services: 
‘‘(1) Consider additional, appropriate property 
information, including the consideration of addi-
tional comparable properties to make or support an 
appraisal. 
‘‘(2) Provide further detail, substantiation, or 
explanation for the appraiser’s value conclusion. 
‘‘(3) Correct errors in the appraisal report. 
‘‘(d) RULEMAKING PROCEEDINGS.—The Board, the 
Comptroller of the Currency, the Director of the Office 
of Thrift Supervision, the Federal Deposit Insurance Cor-
poration, the National Credit Union Administration 
Board, and the Federal Trade Commission— 
‘‘(1) shall, for purposes of this section, jointly 
prescribe regulations defining with specificity acts or 
practices which are unfair or deceptive in the provi-
sion of mortgage lending services for a consumer 
credit transaction secured by the principal dwelling 
of the consumer or mortgage brokerage services for 
such a transaction and defining any terms in this 
section or such regulations; and 
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‘‘(2) may jointly issue interpretive guidelines 
and general statements of policy with respect to un-
fair or deceptive acts or practices in the provision of 
mortgage lending services for a consumer credit 
transaction secured by the principal dwelling of the 
consumer and mortgage brokerage services for such 
a transaction, within the meaning of subsections (a), 
(b), and (c). 
‘‘(e) PENALTIES.— 
‘‘(1) FIRST VIOLATION.—In addition to the en-
forcement provisions referred to in section 130, each 
person who violates this section shall forfeit and pay 
a civil penalty of not more than $10,000 for each 
day any such violation continues. 
‘‘(2) SUBSEQUENT VIOLATIONS.—In the case of 
any person on whom a civil penalty has been im-
posed under paragraph (1), paragraph (1) shall be 
applied by substituting ‘$20,000’ for ‘$10,000’ with 
respect to all subsequent violations. 
‘‘(3) ASSESSMENT.—The agency referred to in 
subsection (a) or (c) of section 108 with respect to 
any person described in paragraph (1) shall assess 
any penalty under this subsection to which such per-
son is subject.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 2 of the Truth in Lending Act is amended 
by inserting after the item relating to section 129C (as 
added by section 601) the following new item: 
‘‘129D. Unfair and deceptive practices and acts relating to certain consumer 
credit transactions.’’. 
SEC. 703. APPRAISAL SUBCOMMITTEE OF FIEC, APPRAISER 
INDEPENDENCE, AND APPROVED APPRAISER 
EDUCATION. 
(a) CONSUMER PROTECTION MISSION.— 
(1) PURPOSE.—A purpose for the establishment 
and operation of the Appraisal Subcommittee of the 
Financial Institutions Examination Council (here-
after in this section referred to as the ‘‘Appraisal 
Subcommittee’’) shall be to establish a consumer 
protection mandate. 
(2) 
FUNCTIONS
OF
APPRAISAL
SUB-
COMMITTEE.—It shall be a function of the Appraisal 
Subcommittee to protect the consumer from im-
proper appraisal practices and the predations of un-
licensed appraisers. 
(3) THRESHOLD
LEVELS.—In establishing a 
threshold level under section 1112(b) of the Finan-
cial Institutions Reform, Recovery, and Enforcement 
Act of 1989 (12 U.S.C. 3341(b)), each agency shall 
determine in writing that the threshold level provides 
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reasonable protection for consumers who purchase 1- 
4 unit single-family residences. 
(b) 
ANNUAL
REPORT
OF
APPRAISAL
SUB-
COMMITTEE.—The annual report of the Appraisal Sub-
committee under section 1103(a)(4) of Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 
shall detail the activities of the Appraisal Subcommittee, 
including the results of all audits of State appraiser regu-
latory agencies, and provide an accounting of disapproved 
actions and warnings taken in the previous year, including 
a description of the conditions causing the disapproval. 
(c) OPEN MEETINGS.—All meetings of the Appraisal 
Subcommittee shall be held in public session after notice 
in the Federal Register. 
(d) REGULATIONS.—The Appraisal Subcommittee 
may prescribe regulations after notice and opportunity for 
comment. Any regulations prescribed by the Appraisal 
Subcommittee shall (unless otherwise provided in this sec-
tion or title XI of the Financial Institutions Reform, Re-
covery, and Enforcement Act of 1989) be limited to the 
following functions: temporary practice, national registry, 
information sharing, and enforcement. For purposes of 
prescribing regulations, the Appraisal Subcommittee shall 
establish an advisory committee of industry participants, 
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including appraisers, lenders, consumer advocates, and 
government agencies, and hold regular meetings. 
(e) FIELD APPRAISALS AND APPRAISAL REVIEWS.— 
All field appraisals performed at a property within a State 
shall be prepared by appraisers licensed in the State where 
the property is located. All Uniform Standards of Profes-
sional Appraisal Practice-compliant appraisal reviews shall 
be performed by an appraiser who is duly licensed by a 
State appraisal board. 
(f) STATE AGENCY REPORTING REQUIREMENT.— 
Each State with an appraiser certifying and licensing 
agency whose certifications and licenses comply with title 
XI of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 shall transmit reports on sanc-
tions, disciplinary actions, license and certification revoca-
tions, and license and certification suspensions on a timely 
basis to the national registry of the Appraisal Sub-
committee. 
(g) REGISTRY FEES MODIFIED.— 
(1) IN GENERAL.—The annual registry fees for 
persons performing appraisals in federally related 
transactions shall be increased from $25 to $40. The 
maximum amount up to which the Appraisal Sub-
committee may adjust any registry fees shall be in-
creased from $50 to $80 per annum. The Appraisal 
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Subcommittee shall consider at least once every 5 
years whether to adjust the dollar amount of the 
registry fees to account for inflation. In imple-
menting any change in registry fees, the Appraisal 
Subcommittee shall provide flexibility to the States 
for multi-year certifications and licenses already in 
place, as well as a transition period to implement the 
changes in registry fees. 
(2) 
INCREMENTAL
REVENUES.—Incremental 
revenues collected pursuant to the increases required 
by this section shall be placed in a separate account 
at the United States Treasury, entitled the Ap-
praisal Subcommittee Account. 
(h) GRANTS AND REPORTS.— 
(1) IN GENERAL.—Amounts appropriated for or 
collected by the Appraisal Subcommittee after the 
date of the enactment of this Act shall, in addition 
to other uses authorized, be used— 
(A) to make grants to State appraiser reg-
ulatory agencies to help defray those costs re-
lating to enforcement activities; and 
(B) to report to all State appraiser certi-
fying and licensing agencies when a license or 
certification is surrendered, revoked, or sus-
pended. 
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(2) LIMITATION ON OBLIGATIONS.—Obligations 
authorized under this section may not exceed 75 per-
cent of the fiscal year total of incremental increase 
in fees collected and deposited in the Appraisal Sub-
committee Account pursuant to section 703(g) of 
this Act. 
(i) CRITERIA.— 
(1) DEFINITION.—For purposes of this section 
and title XI of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (notwith-
standing section 1116(c) of such title), the term 
‘‘State licensed appraiser’’ means an individual who 
has satisfied the requirements for State licensing in 
a State or territory whose criteria for the licensing 
of a real estate appraiser currently meet or exceed 
the minimum criteria issued by the Appraisal Quali-
fications Board of The Appraisal Foundation for the 
licensing of real estate appraisers. 
(2) 
MINIMUM
QUALIFICATION
REQUIRE-
MENTS.—Any requirements established for individ-
uals in the position of ‘‘Trainee Appraiser’’ and ‘‘Su-
pervisory Appraiser’’ shall meet or exceed the min-
imum qualification requirements of the Appraiser 
Qualifications Board of The Appraisal Foundation. 
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The Appraisal Subcommittee shall have the author-
ity to enforce these requirements. 
(j) MONITORING OF STATE APPRAISER CERTIFYING 
AND
LICENSING
AGENCIES.—The 
Appraisal 
Sub-
committee shall monitor State appraiser certifying and 
licencing agencies for the purpose of determining whether 
a State agency’s funding and staffing are consistent with 
the requirements of title XI of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989, whether 
a State agency processes complaints and completes exams 
in a reasonable time period, and whether a State agency 
reports claims and disciplinary actions on a timely basis 
to the national registry maintained by the Appraisal Sub-
committee. The Appraisal Subcommittee shall have the 
authority to impose interim sanctions and suspensions. 
(k) RECIPROCITY.—A State appraiser certifying or li-
censing agency shall issue a reciprocal certification or li-
cense for an individual from another State when— 
(1) the appraiser licensing and certification pro-
gram of such other State is in compliance with the 
provisions of this title; and 
(2) the appraiser holds a valid certification 
from a State whose requirements for certification or 
licensing meet or exceed the licensure standards es-
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tablished by the State where an individual seeks ap-
praisal licensure. 
(l) CONSIDERATION OF PROFESSIONAL APPRAISAL 
DESIGNATIONS.—No provision of section 1122(d) of the 
Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 shall be construed as prohibiting consid-
eration of designations conferred by recognized national 
professional appraisal organizations, such as sponsoring 
organizations of The Appraisal Foundation. 
(m) APPRAISER INDEPENDENCE.— 
(1) PROHIBITIONS ON INTERESTED PARTIES IN 
A REAL ESTATE TRANSACTION.—No mortgage lend-
er, mortgage broker, mortgage banker, real estate 
broker, appraisal management company, employee of 
an appraisal management company, nor any other 
person with an interest in a real estate transaction 
involving an appraisal shall improperly influence, or 
attempt to improperly influence, through coercion, 
extortion, collusion, compensation, instruction, in-
ducement, intimidation, non-payment for services 
rendered, or bribery, the development, reporting, re-
sult, or review of a real estate appraisal sought in 
connection with a mortgage loan. 
(2) EXCEPTIONS.—The requirements of para-
graph (1) shall not be construed as prohibiting a 
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mortgage lender, mortgage broker, mortgage banker, 
real estate broker, appraisal management company, 
employee of an appraisal management company, or 
any other person with an interest in a real estate 
transaction from asking an appraiser to provide 1 or 
more of the following services: 
(A) Consider additional, appropriate prop-
erty information, including the consideration of 
additional comparable properties to make or 
support an appraisal. 
(B) Provide further detail, substantiation, 
or explanation for the appraiser’s value conclu-
sion. 
(C) Correct errors in the appraisal report. 
(3) PROHIBITIONS ON CONFLICTS OF INTER-
EST.—No certified or licensed appraiser conducting 
an appraisal may have a direct or indirect interest, 
financial or otherwise, in the property or transaction 
involving the appraisal. 
(4) MANDATORY
REPORTING.—Any mortgage 
lender, mortgage broker, mortgage banker, real es-
tate broker, appraisal management company, em-
ployee of an appraisal management company, or any 
other person with an interest in a real estate trans-
action involving an appraisal who has a reasonable 
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basis to believe an appraiser is violating applicable 
laws, or is otherwise engaging in unethical conduct, 
shall refer the matter to the applicable State ap-
praiser certifying and licensing agency. 
(5) REGULATIONS.—The Federal financial in-
stitutions regulatory agencies (as defined in section 
1003(1) of the Federal Financial Institutions Exam-
ination Council Act of 1978) shall prescribe such 
regulations as may be necessary to carry out the 
provisions of this subsection. 
(6) PENALTIES.—Any person who violates any 
provision of this subsection shall be subject to civil 
penalties under section 8(i)(2) of the Federal De-
posit Insurance Act or section 206(k)(2) of the Fed-
eral Credit Union Act, as appropriate. 
(7) PROCEEDING.—A proceeding with respect 
to a violation of this subsection shall be an adminis-
trative proceeding which may be conducted by a 
Federal financial institutions regulatory agency in 
accordance with the procedures set forth in sub-
chapter II of chapter 5 of title 5, United States 
Code. 
(n) APPROVED EDUCATION.—The Appraisal Sub-
committee shall encourage the States to accept courses ap-
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proved by the Appraiser Qualification Board’s Course Ap-
proval Program. 
SEC. 704. STUDY REQUIRED ON IMPROVEMENTS IN AP-
PRAISAL PROCESS AND COMPLIANCE PRO-
GRAMS. 
(a) STUDY.—The Comptroller General shall conduct 
a comprehensive study on possible improvements in the 
appraisal process generally, and specifically on the consist-
ency in and the effectiveness of, and possible improve-
ments in, State compliance efforts and programs in ac-
cordance with title XI of the Financial Institutions Re-
form, Recovery, and Enforcement Act of 1989. In addi-
tion, this study shall examine the existing de minimis loan 
levels established by Federal regulators for compliance 
under title XI and whether there is a need to revise them 
to reflect the addition of consumer protection to the pur-
poses and functions of the Appraisal Subcommittee. 
(b) REPORT.—Before the end of the 18-month period 
beginning on the date of the enactment of this Act, the 
Comptroller General shall submit a report on the study 
under subsection (a) to the Committee on Financial Serv-
ices of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate, 
together with such recommendations for administrative or 
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legislative action, at the Federal or State level, as the 
Comptroller General may determine to be appropriate. 
SEC. 705. CONSUMER APPRAISAL DISCLOSURE. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by inserting 
after section 129D (as added by section 702) the following 
new section: 
‘‘SEC. 129E. CONSUMER APPRAISAL DISCLOSURE. 
‘‘In any case in which an appraisal is performed in 
connection with an extension of credit secured by an inter-
est in real property, the creditor or other mortgage origi-
nator shall make available to the applicant for the exten-
sion of credit a copy of all appraisal valuation reports upon 
completion but no later than 3 business days prior to the 
transaction closing date.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 2 of the Truth in Lending Act is amended 
by inserting after the item relating to section 129D (as 
added by section 702) the following new item: 
‘‘129E. Consumer appraisal disclosure.’’. 
Passed the House of Representatives November 15, 
2007. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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