132 
‘‘(2) APPRAISAL REQUIREMENTS.— 
‘‘(A) PHYSICAL PROPERTY VISIT.—An ap-
praisal of property to be secured by a mortgage 
referred to in section 103(aa) does not meet the 
requirement of this subsection unless it is per-
formed by a qualified appraiser who conducts a 
physical property visit of the interior of the 
mortgaged property. 
‘‘(B) SECOND APPRAISAL UNDER CERTAIN 
CIRCUMSTANCES.— 
‘‘(i) IN GENERAL.—If the purpose of 
a mortgage referred to in section 103(aa) 
is to finance the purchase or acquisition of 
the mortgaged property from a person 
within 180 days of the purchase or acquisi-
tion of such property by that person at a 
price that was lower than the current sale 
price of the property, the creditor shall ob-
tain a second appraisal from a different 
qualified appraiser. The second appraisal 
shall include an analysis of the difference 
in sale prices, changes in market condi-
tions, and any improvements made to the 
property between the date of the previous 
sale and the current sale. 
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‘‘(ii) NO COST TO CONSUMER.—The 
cost of any second appraisal required 
under clause (i) may not be charged to the 
consumer. 
‘‘(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. 
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134 
‘‘(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 
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. 602. 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 129D (as added by section 501(a)) the fol-
lowing new section: 
‘‘SEC. 129E. 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 
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135 
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— 
‘‘(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 
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‘‘(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, 
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-
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