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the State appraiser certifying and licensing agencies. The 
Appraisal Subcommittee shall also promulgate regulations 
for the reporting of the activities of appraisal management 
companies in determining the payment of the annual reg-
istry fee. 
‘‘(e) EFFECTIVE DATE.— 
‘‘(1) IN GENERAL.—No appraisal management 
company may perform services related to a federally 
related transaction in a State after the date that is 
36 months after the date of the enactment of this 
section unless such company is registered with such 
State or subject to oversight by a federal financial 
institutions regulatory agency. 
‘‘(2) EXTENSION OF EFFECTIVE DATE.—Sub-
ject to the approval of the Council, the Appraisal 
Subcommittee may extend by an additional 12 
months the requirements for the registration and su-
pervision of appraisal management companies if it 
makes a written finding that a State has made sub-
stantial progress in establishing a State appraisal 
management company registration and supervision 
system that appears to conform with the provisions 
of this title.’’. 
(3) STATE
APPRAISER
CERTIFYING
AND
LI-
CENSING AGENCY AUTHORITY.—Section 1117 of the 
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Financial Institutions Reform, Recovery, and En-
forcement Act of 1989 (12 U.S.C. 3346) is amended 
by adding at the end the following: ‘‘The duties of 
such agency may additionally include the registra-
tion and supervision of appraisal management com-
panies.’’. 
(4) APPRAISAL MANAGEMENT COMPANY DEFI-
NITION.—Section 1121 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 
(12 U.S.C. 3350) is amended by adding at the end 
the following: 
‘‘(11) APPRAISAL
MANAGEMENT
COMPANY.— 
The term ‘appraisal management company’ means, 
in connection with valuing properties collateralizing 
mortgage loans or mortgages incorporated into a 
securitization, any external third party authorized ei-
ther 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 apprais-
ers; 
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‘‘(B) to contract with licensed and certified 
appraisers to perform appraisal assignments; 
‘‘(C) to manage the process of having an 
appraisal performed, including providing admin-
istrative duties such as receiving appraisal or-
ders and appraisal reports, submitting com-
pleted appraisal reports to creditors and under-
writers, collecting fees from creditors and un-
derwriters for services provided, and reimburs-
ing appraisers for services performed; or 
‘‘(D) to review and verify the work of ap-
praisers.’’. 
(g) STATE AGENCY REPORTING REQUIREMENT.— 
Section 1109(a) of the Financial Institutions Reform, Re-
covery, and Enforcement Act of 1989 (12 U.S.C. 3338(a)) 
is amended— 
(1) by striking ‘‘and’’ after the semicolon in 
paragraph (1); 
(2) by redesignating paragraph (2) as para-
graph (4); and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraphs: 
‘‘(2) transmit reports on sanctions, disciplinary 
actions, license and certification revocations, and li-
cense and certification suspensions on a timely basis 
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to the national registry of the Appraisal Sub-
committee; 
‘‘(3) transmit reports on a timely basis of su-
pervisory activities involving appraisal management 
companies or other third-party providers of apprais-
als and appraisal management services, including in-
vestigations initiated and disciplinary actions taken; 
and’’. 
(h) REGISTRY FEES MODIFIED.— 
(1) IN GENERAL.—Section 1109(a) of the Fi-
nancial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 3338(a)) is amend-
ed— 
(A) by amending paragraph (4) (as modi-
fied by section 9503(g)) to read as follows: 
‘‘(4) collect— 
‘‘(A) from such individuals who perform or 
seek to perform appraisals in federally related 
transactions, an annual registry fee of not more 
than $40, such fees to be transmitted by the 
State agencies to the Council on an annual 
basis; and 
‘‘(B) from an appraisal management com-
pany that either has registered with a State ap-
praiser certifying and licensing agency in ac-
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cordance with this title or operates as a sub-
sidiary of a federally regulated financial institu-
tion, an annual registry fee of— 
‘‘(i) in the case of such a company 
that has been in existence for more than a 
year, $25 multiplied by the number of ap-
praisers working for or contracting with 
such company in such State during the 
previous year, but where such $25 amount 
may be adjusted, up to a maximum of $50, 
at the discretion of the Appraisal Sub-
committee, if necessary to carry out the 
Subcommittee’s functions under this title; 
and 
‘‘(ii) in the case of such a company 
that has not been in existence for more 
than a year, $25 multiplied by an appro-
priate number to be determined by the Ap-
praisal Subcommittee, and where such 
number will be used for determining the 
fee of all such companies that were not in 
existence for more than a year, but where 
such $25 amount may be adjusted, up to 
a maximum of $50, at the discretion of the 
Appraisal Subcommittee, if necessary to 
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carry out the Subcommittee’s functions 
under this title.’’; and 
(B) by amending the matter following 
paragraph (4), as redesignated, to read as fol-
lows: 
‘‘Subject to the approval of the Council, the Appraisal 
Subcommittee may adjust the dollar amount of registry 
fees under paragraph (4)(A), up to a maximum of $80 
per annum, as necessary to carry out its functions under 
this title. The Appraisal Subcommittee shall consider at 
least once every 5 years whether to adjust the dollar 
amount of the registry fees to account for inflation. In 
implementing 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. In establishing the amount of the annual 
registry fee for an appraisal management company, the 
Appraisal Subcommittee shall have the discretion to im-
pose a minimum annual registry fee for an appraisal man-
agement company to protect against the under reporting 
of the number of appraisers working for or contracted by 
the appraisal management company.’’. 
(2) 
INCREMENTAL
REVENUES.—Incremental 
revenues collected pursuant to the increases required 
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by this subsection shall be placed in a separate ac-
count at the United States Treasury, entitled the 
‘‘Appraisal Subcommittee Account’’. 
(i) GRANTS AND REPORTS.—Section 1109(b) of the 
Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 3348(b)) is amended— 
(1) by striking ‘‘and’’ after the semicolon in 
paragraph (3); 
(2) by striking the period at the end of para-
graph (4) and inserting a semicolon; 
(3) by adding at the end the following new 
paragraphs: 
‘‘(5) to make grants to State appraiser certi-
fying and licensing agencies to support the efforts of 
such agencies to comply with this title, including— 
‘‘(A) the complaint process, complaint in-
vestigations, and appraiser enforcement activi-
ties of such agencies; and 
‘‘(B) the submission of data on State li-
censed and certified appraisers and appraisal 
management companies to the National ap-
praisal registry, including information affirming 
that the appraiser or appraisal management 
company meets the required qualification cri-
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teria and formal and informal disciplinary ac-
tions; and 
‘‘(6) to report to all State appraiser certifying 
and licensing agencies when a license or certification 
is surrendered, revoked, or suspended.’’. 
Obligations authorized under this subsection may not ex-
ceed 75 percent of the fiscal year total of incremental in-
crease in fees collected and deposited in the ‘‘Appraisal 
Subcommittee Account’’ pursuant to subsection (h). 
(j) CRITERIA.—Section 1116 of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3345) is amended— 
(1) in subsection (c), by inserting ‘‘whose cri-
teria for the licensing of a real estate appraiser cur-
rently meet or exceed the minimum criteria issued 
by the Appraisal Qualifications Board of The Ap-
praisal Foundation for the licensing of real estate 
appraisers’’ before the period at the end; and 
(2) by striking subsection (e) and inserting the 
following new subsection: 
‘‘(e) MINIMUM QUALIFICATION REQUIREMENTS.— 
Any requirements established for individuals in the posi-
tion of ‘Trainee Appraiser’ and ‘Supervisory Appraiser’ 
shall meet or exceed the minimum qualification require-
ments of the Appraiser Qualifications Board of The Ap-
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praisal Foundation. The Appraisal Subcommittee shall 
have the authority to enforce these requirements.’’. 
(k) MONITORING OF STATE APPRAISER CERTIFYING 
AND LICENSING AGENCIES.—Section 1118 of the Finan-
cial Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 3347) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) IN GENERAL.—The Appraisal Subcommittee 
shall monitor each State appraiser certifying and licensing 
agency for the purposes of determining whether such 
agency— 
‘‘(1) has policies, practices, funding, staffing, 
and procedures that are consistent with this title; 
‘‘(2) processes complaints and completes inves-
tigations in a reasonable time period; 
‘‘(3) appropriately disciplines sanctioned ap-
praisers and appraisal management companies; 
‘‘(4) maintains an effective regulatory program; 
and 
‘‘(5) reports complaints and disciplinary actions 
on a timely basis to the national registries on ap-
praisers and appraisal management companies main-
tained by the Appraisal Subcommittee. 
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The Appraisal Subcommittee shall have the authority to 
remove a State licensed or certified appraiser or a reg-
istered appraisal management company from a national 
registry on an interim basis pending State agency action 
on licensing, certification, registration, and disciplinary 
proceedings. The Appraisal Subcommittee and all agen-
cies, instrumentalities, and Federally recognized entities 
under this title shall not recognize appraiser certifications 
and licenses from States whose appraisal policies, prac-
tices, funding, staffing, or procedures are found to be in-
consistent with this title. The Appraisal Subcommittee 
shall have the authority to impose sanctions, as described 
in this section, against a State agency that fails to have 
an effective appraiser regulatory program. In determining 
whether such a program is effective, the Appraisal Sub-
committee shall include an analyses of the licensing and 
certification of appraisers, the registration of appraisal 
management companies, the issuance of temporary li-
censes and certifications for appraisers, the receiving and 
tracking of submitted complaints against appraisers and 
appraisal management companies, the investigation of 
complaints, and enforcement actions against appraisers 
and appraisal management companies. The Appraisal 
Subcommittee shall have the authority to impose interim 
actions and suspensions against a State agency as an al-
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ternative to, or in advance of, the derecognition of a State 
agency.’’. 
(2) in subsection (b)(2), by inserting after ‘‘au-
thority’’ the following: ‘‘or sufficient funding’’. 
(l) RECIPROCITY.—Subsection (b) of section 1122 of 
the Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 3351(b)) is amended to read 
as follows: 
‘‘(b) RECIPROCITY.—A State appraiser certifying or 
licensing agency shall issue a reciprocal certification or li-
cense for an individual from another State when— 
‘‘(1) the appraiser licensing and certification 
program 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-
tablished by the State where an individual seeks ap-
praisal licensure.’’. 
(m) CONSIDERATION OF PROFESSIONAL APPRAISAL 
DESIGNATIONS.—Section 1122(d) of the Financial Insti-
tutions Reform, Recovery, and Enforcement Act of 1989 
(12 U.S.C. 3351(d)) is amended by striking ‘‘shall not ex-
clude’’ and all that follows through the end of the sub-
section and inserting the following: ‘‘may include edu-
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cation achieved, experience, sample appraisals, and ref-
erences from prior clients. Membership in a nationally rec-
ognized professional appraisal organization may be a cri-
teria considered, though lack of membership therein shall 
not be the sole bar against consideration for an assign-
ment under these criteria.’’. 
(n) APPRAISER INDEPENDENCE.—Section 1122 of 
the Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 3351) is amended by adding 
at the end the following new subsection: 
‘‘(g) APPRAISER INDEPENDENCE MONITORING.— 
The Appraisal Subcommittee shall monitor each State ap-
praiser certifying and licensing agency for the purpose of 
determining whether such agency’s policies, practices, and 
procedures are consistent with the purposes of maintain-
ing appraiser independence and whether such State has 
adopted and maintains effective laws, regulations, and 
policies aimed at maintaining appraiser independence.’’. 
(o) APPRAISER EDUCATION.—Section 1122 of the 
Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 3351) is amended by insert-
ing after subsection (g) (as added by subsection (l) of this 
section) the following new subsection: 
‘‘(h) 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.’’. 
(p) APPRAISAL COMPLAINT HOTLINE.—Section 1122 
of the Financial Institutions Reform, Recovery, and En-
forcement Act of 1989 (12 U.S.C. 3351), as amended by 
this section, is further amended by adding at the end the 
following new subsection: 
‘‘(i) APPRAISAL COMPLAINT NATIONAL HOTLINE.— 
If, 1 year after the date of the enactment of this sub-
section, the Appraisal Subcommittee determines that no 
national hotline exists to receive complaints of non-compli-
ance with appraisal independence standards and Uniform 
Standards of Professional Appraisal Practice, including 
complaints from appraisers, individuals, or other entities 
concerning the improper influencing or attempted im-
proper influencing of appraisers or the appraisal process, 
the Appraisal Subcommittee shall establish and operate 
such a national hotline, which shall include a toll-free tele-
phone number and an email address. If the Appraisal Sub-
committee operates such a national hotline, the Appraisal 
Subcommittee shall refer complaints for further action to 
appropriate governmental bodies, including a State ap-
praiser certifying and licensing agency, a financial institu-
tion regulator, or other appropriate legal authorities. For 
complaints referred to State appraiser certifying and li-
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censing agencies or to Federal regulators, the Appraisal 
Subcommittee shall have the authority to follow up such 
complaint referrals in order to determine the status of the 
resolution of the complaint.’’. 
(q) AUTOMATED VALUATION MODELS.—Title XI of 
the Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 3331 et seq.), as amended 
by this section, is further amended by adding at the end 
the following new section (and amending the table of con-
tents accordingly): 
‘‘SEC. 1125. AUTOMATED VALUATION MODELS USED TO 
VALUE CERTAIN MORTGAGES. 
‘‘(a) IN GENERAL.—Automated valuation models 
shall adhere to quality control standards designed to— 
‘‘(1) ensure a high level of confidence in the es-
timates produced by automated valuation models; 
‘‘(2) protect against the manipulation of data; 
‘‘(3) seek to avoid conflicts of interest; and 
‘‘(4) require random sample testing and re-
views, where such testing and reviews are performed 
by an appraiser who is licensed or certified in the 
State where the testing and reviews take place. 
‘‘(b) ADOPTION OF REGULATIONS.—The Appraisal 
Subcommittee and its member agencies, in consultation 
with the Appraisal Standards Board of the Appraisal 
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Foundation and other interested parties, shall promulgate 
regulations to implement the quality control standards re-
quired under this section. 
‘‘(c) ENFORCEMENT.—Compliance with regulations 
issued under this subsection shall be enforced by— 
‘‘(1) with respect to a financial institution, or 
subsidiary owned and controlled by a financial insti-
tution and regulated by a Federal financial institu-
tion regulatory agency, the Federal financial institu-
tion regulatory agency that acts as the primary Fed-
eral supervisor of such financial institution or sub-
sidiary; and 
‘‘(2) with respect to other persons, the Ap-
praisal Subcommittee. 
‘‘(d) AUTOMATED VALUATION MODEL DEFINED.— 
For purposes of this section, the term ‘automated valu-
ation model’ means any computerized model used by mort-
gage originators and secondary market issuers to deter-
mine the collateral worth of a mortgage secured by a con-
sumer’s principal dwelling.’’. 
(r) BROKER PRICE OPINIONS.—Title XI of the Fi-
nancial Institutions Reform, Recovery, and Enforcement 
Act of 1989 (12 U.S.C. 3331 et seq.), as amended by this 
section, is further amended by adding at the end the fol-
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lowing new section (and amending the table of contents 
accordingly): 
‘‘SEC. 1126. BROKER PRICE OPINIONS. 
‘‘(a) GENERAL PROHIBITION.—In conjunction with 
the purchase of a consumer’s principal dwelling, broker 
price opinions may not be used as the primary basis to 
determine the value of a piece of property for the purpose 
of a loan origination of a residential mortgage loan se-
cured by such piece of property. 
‘‘(b) BROKER PRICE OPINION DEFINED.—For pur-
poses of this section, the term ‘broker price opinion’ means 
an estimate prepared by a real estate broker, agent, or 
sales person that details the probable selling price of a 
particular piece of real estate property and provides a 
varying level of detail about the property’s condition, mar-
ket, and neighborhood, and information on comparable 
sales, but does not include an automated valuation model, 
as defined in section 1125(c).’’. 
(s) AMENDMENTS TO APPRAISAL SUBCOMMITTEE.— 
Section 1011 of the Federal Financial Institutions Exam-
ination Council Act of 1978 (12 U.S.C. 3310) is amend-
ed— 
(1) in the first sentence, by adding before the 
period the following: ‘‘and the Federal Housing Fi-
nance Agency’’; and 
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(2) by inserting at the end the following: ‘‘At 
all times at least one member of the Appraisal Sub-
committee shall have demonstrated knowledge and 
competence through licensure, certification, or pro-
fessional designation within the appraisal profes-
sion.’’. 
(t) TECHNICAL CORRECTIONS.— 
(1) Section 1119(a)(2) of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 3348(a)(2)) is amended by striking 
‘‘council,’’ and inserting ‘‘Council,’’. 
(2) Section 1121(6) of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 3350(6)) is amended by striking 
‘‘Corporations,’’ and inserting ‘‘Corporation,’’. 
(3) Section 1121(8) of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 3350(8)) is amended by striking 
‘‘council’’ and inserting ‘‘Council’’. 
(4) Section 1122 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 
(12 U.S.C. 3351) is amended— 
(A) in subsection (a)(1) by moving the left 
margin of subparagraphs (A), (B), and (C) 2 
ems to the right; and 
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