H. R. 4173—817 
‘‘(B) for the registration and supervision of the oper-
ations and activities of an appraisal management com-
pany;’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(6) maintain a national registry of appraisal management 
companies that either are registered with and subject to super-
vision of a State appraiser certifying and licensing agency or 
are operating subsidiaries of a Federally regulated financial 
institution.’’. 
(2) APPRAISAL MANAGEMENT COMPANY MINIMUM REQUIRE-
MENTS.—Title XI of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et 
seq.) is amended by adding at the end the following new section 
(and amending the table of contents accordingly): 
‘‘SEC. 1124. APPRAISAL MANAGEMENT COMPANY MINIMUM REQUIRE-
MENTS. 
‘‘(a) IN GENERAL.—The Board of Governors of the Federal 
Reserve System, the Comptroller of the Currency, the Federal 
Deposit Insurance Corporation, the National Credit Union Adminis-
tration Board, the Federal Housing Finance Agency, and the Bureau 
of Consumer Financial Protection shall jointly, by rule, establish 
minimum requirements to be applied by a State in the registration 
of appraisal management companies. Such requirements shall 
include a requirement that such companies— 
‘‘(1) register with and be subject to supervision by a State 
appraiser certifying and licensing agency in each State in which 
such company operates; 
‘‘(2) verify that only licensed or certified appraisers are 
used for federally related transactions; 
‘‘(3) require that appraisals coordinated by an appraisal 
management company comply with the Uniform Standards of 
Professional Appraisal Practice; and 
‘‘(4) require that appraisals are conducted independently 
and free from inappropriate influence and coercion pursuant 
to the appraisal independence standards established under sec-
tion 129E of the Truth in Lending Act. 
‘‘(b) RELATION TO STATE LAW.—Nothing in this section shall 
be construed to prevent States from establishing requirements in 
addition to any rules promulgated under subsection (a). 
‘‘(c) FEDERALLY
REGULATED
FINANCIAL
INSTITUTIONS.—The 
requirements of subsection (a) shall apply to an appraisal manage-
ment company that is a subsidiary owned and controlled by a 
financial institution and regulated by a Federal financial institution 
regulatory agency. An appraisal management company that is a 
subsidiary owned and controlled by a financial institution regulated 
by a Federal financial institution regulatory agency shall not be 
required to register with a State. 
‘‘(d) REGISTRATION LIMITATIONS.—An appraisal management 
company shall not be registered by a State or included on the 
national registry if such company, 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. Additionally, each person 
that owns more than 10 percent of an appraisal management com-
pany shall be of good moral character, as determined by the State 
appraiser certifying and licensing agency, and shall submit to a
H. R. 4173—818 
background investigation carried out by the State appraiser certi-
fying and licensing agency. 
‘‘(e) REPORTING.—The Board of Governors of the Federal 
Reserve System, the Comptroller of the Currency, the Federal 
Deposit Insurance Corporation, the National Credit Union Adminis-
tration Board, the Federal Housing Finance Agency, and the Bureau 
of Consumer Financial Protection shall jointly promulgate regula-
tions for the reporting of the activities of appraisal management 
companies to the Appraisal Subcommittee in determining the pay-
ment of the annual registry fee. 
‘‘(f) EFFECTIVE DATE.— 
‘‘(1) IN GENERAL.—No appraisal management company may 
perform services related to a federally related transaction in 
a State after the date that is 36 months after the date on 
which the regulations required to be prescribed under sub-
section (a) are prescribed in final form unless such company 
is registered with such State or subject to oversight by a Federal 
financial institutions regulatory agency. 
‘‘(2) EXTENSION
OF
EFFECTIVE
DATE.—Subject to the 
approval of the Council, the Appraisal Subcommittee may 
extend by an additional 12 months the requirements for the 
registration and supervision of appraisal management compa-
nies if it makes a written finding that a State has made 
substantial progress in establishing a State appraisal manage-
ment company registration and supervision system that appears 
to conform with the provisions of this title.’’. 
(3) STATE APPRAISER CERTIFYING AND LICENSING AGENCY 
AUTHORITY.—Section 1117 of the Financial Institutions Reform, 
Recovery, and Enforcement 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 registration and 
supervision of appraisal management companies and the addi-
tion of information about the appraisal management company 
to the national registry.’’. 
(4) APPRAISAL MANAGEMENT COMPANY DEFINITION.—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 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, submit-
ting completed appraisal reports to creditors and under-
writers, collecting fees from creditors and underwriters for
H. R. 4173—819 
services provided, and reimbursing appraisers for services 
performed; or 
‘‘(D) to review and verify the work of appraisers.’’. 
(g) STATE AGENCY REPORTING REQUIREMENT.—Section 1109(a) 
of the Financial Institutions Reform, Recovery, 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 paragraph (4); and 
(3) by inserting after paragraph (1) the following new para-
graphs: 
‘‘(2) transmit reports on the issuance and renewal of 
licenses and certifications, sanctions, disciplinary actions, 
license and certification revocations, and license and certifi-
cation suspensions on a timely basis to the national registry 
of the Appraisal Subcommittee; 
‘‘(3) transmit reports on a timely basis of supervisory activi-
ties involving appraisal management companies or other third- 
party providers of appraisals and appraisal management serv-
ices, including investigations initiated and disciplinary actions 
taken; and’’. 
(h) REGISTRY FEES MODIFIED.— 
(1) IN GENERAL.—Section 1109(a) of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3338(a)) is amended— 
(A) by amending paragraph (4) (as modified by section 
1473(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 company that 
either has registered with a State appraiser certifying and 
licensing agency in accordance with this title or operates 
as a subsidiary of a federally regulated financial institution, 
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 appraisers 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 Subcommittee, 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 appropriate number to be determined by the 
Appraisal 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 carry out the Sub-
committee’s functions under this title.’’; and
H. R. 4173—820 
(B) by amending the matter following paragraph (4), 
as redesignated, to read as follows: 
‘‘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 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. In establishing the amount 
of the annual registry fee for an appraisal management company, 
the Appraisal Subcommittee shall have the discretion to impose 
a minimum annual registry fee for an appraisal management com-
pany 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 col-
lected pursuant to the increases required by this subsection 
shall be placed in a separate account at the United States 
Treasury, entitled the ‘‘Appraisal Subcommittee Account’’. 
(i) GRANTS
AND REPORTS.—Section 1109(b) of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3338(b)) is amended— 
(1) by striking ‘‘and’’ after the semicolon in paragraph 
(3); 
(2) by striking the period at the end of paragraph (4) 
and inserting a semicolon; 
(3) by adding at the end the following new paragraphs: 
‘‘(5) to make grants to State appraiser certifying and 
licensing agencies, in accordance with policies to be developed 
by the Appraisal Subcommittee, to support the efforts of such 
agencies to comply with this title, including— 
‘‘(A) the complaint process, complaint investigations, 
and appraiser enforcement activities of such agencies; and 
‘‘(B) the submission of data on State licensed and cer-
tified appraisers and appraisal management companies to 
the National appraisal registry, including information 
affirming that the appraiser or appraisal management com-
pany meets the required qualification criteria and formal 
and informal disciplinary actions; 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 exceed 75 
percent of the fiscal year total of incremental increase in fees 
collected and deposited in the ‘‘Appraisal Subcommittee Account’’ 
pursuant to subsection (h). 
(j) CRITERIA.—Section 1116 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3345) 
is amended— 
(1) in subsection (c), by inserting ‘‘whose criteria for the 
licensing of a real estate appraiser currently meet or exceed 
the minimum criteria issued by the Appraisal Qualifications 
Board of The Appraisal Foundation for the licensing of real 
estate appraisers’’ before the period at the end; and