H. R. 4173—813 
‘‘(4) withholding or threatening to withhold timely payment 
for an appraisal report or for appraisal services rendered when 
the appraisal report or services are provided for in accordance 
with the contract between the parties. 
‘‘(c) EXCEPTIONS.—The requirements of subsection (b) shall not 
be construed as prohibiting a mortgage lender, mortgage broker, 
mortgage banker, real estate broker, appraisal management com-
pany, employee of an appraisal management company, consumer, 
or any other person with an interest in a real estate transaction 
from asking an appraiser to undertake 1 or more of the following: 
‘‘(1) Consider additional, appropriate property information, 
including the consideration of additional 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) PROHIBITIONS ON CONFLICTS OF INTEREST.—No certified 
or licensed appraiser conducting, and no appraisal management 
company procuring or facilitating, an appraisal in connection with 
a consumer credit transaction secured by the principal dwelling 
of a consumer may have a direct or indirect interest, financial 
or otherwise, in the property or transaction involving the appraisal. 
‘‘(e) MANDATORY REPORTING.—Any mortgage lender, mortgage 
broker, mortgage banker, real estate broker, appraisal management 
company, employee of an appraisal management company, or any 
other person involved in a real estate transaction involving an 
appraisal in connection with a consumer credit transaction secured 
by the principal dwelling of a consumer who has a reasonable 
basis to believe an appraiser is failing to comply with the Uniform 
Standards of Professional Appraisal Practice, is violating applicable 
laws, or is otherwise engaging in unethical or unprofessional con-
duct, shall refer the matter to the applicable State appraiser certi-
fying and licensing agency. 
‘‘(f) NO EXTENSION OF CREDIT.—In connection with a consumer 
credit transaction secured by a consumer’s principal dwelling, a 
creditor who knows, at or before loan consummation, of a violation 
of the appraisal independence standards established in subsections 
(b) or (d) shall not extend credit based on such appraisal unless 
the creditor documents that the creditor has acted with reasonable 
diligence to determine that the appraisal does not materially mis-
state or misrepresent the value of such dwelling. 
‘‘(g) RULES AND INTERPRETIVE GUIDELINES.— 
‘‘(1) IN
GENERAL.—Except as provided under paragraph 
(2), the Board, the Comptroller of the Currency, the Federal 
Deposit Insurance Corporation, the National Credit Union 
Administration Board, the Federal Housing Finance Agency, 
and the Bureau may jointly issue rules, interpretive guidelines, 
and general statements of policy with respect to acts or prac-
tices that violate appraisal independence 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), (c), (d), (e), (f), (h), and (i). 
‘‘(2) INTERIM
FINAL
REGULATIONS.—The Board shall, for 
purposes of this section, prescribe interim final regulations 
no later than 90 days after the date of enactment of this 
section defining with specificity acts or practices that violate
H. R. 4173—814 
appraisal independence in the provision of mortgage lending 
services for a consumer credit transaction secured by the prin-
cipal dwelling of the consumer or mortgage brokerage services 
for such a transaction and defining any terms in this section 
or such regulations. Rules prescribed by the Board under this 
paragraph shall be deemed to be rules prescribed by the agen-
cies jointly under paragraph (1). 
‘‘(h) APPRAISAL REPORT PORTABILITY.—Consistent with the 
requirements of this section, the Board, the Comptroller of the 
Currency, the Federal Deposit Insurance Corporation, the National 
Credit Union Administration Board, the Federal Housing Finance 
Agency, and the Bureau may jointly issue regulations that address 
the issue of appraisal report portability, including regulations that 
ensure the portability of the appraisal report between lenders for 
a consumer credit transaction secured by a 1-4 unit single family 
residence that is the principal dwelling of the consumer, or mortgage 
brokerage services for such a transaction. 
‘‘(i) CUSTOMARY AND REASONABLE FEE.— 
‘‘(1) IN
GENERAL.—Lenders and their agents shall com-
pensate fee appraisers at a rate that is customary and reason-
able for appraisal services performed in the market area of 
the property being appraised. Evidence for such fees may be 
established by objective third-party information, such as 
government agency fee schedules, academic studies, and inde-
pendent private sector surveys. Fee studies shall exclude 
assignments ordered by known appraisal management compa-
nies. 
‘‘(2) FEE APPRAISER DEFINITION.—For purposes of this sec-
tion, the term ‘fee appraiser’ means a person who is not an 
employee of the mortgage loan originator or appraisal manage-
ment company engaging the appraiser and is— 
‘‘(A) a State licensed or certified appraiser who receives 
a fee for performing an appraisal and certifies that the 
appraisal has been prepared in accordance with the Uni-
form Standards of Professional Appraisal Practice; or 
‘‘(B) a company not subject to the requirements of 
section 1124 of the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) 
that utilizes the services of State licensed or certified 
appraisers and receives a fee for performing appraisals 
in accordance with the Uniform Standards of Professional 
Appraisal Practice. 
‘‘(3) EXCEPTION FOR COMPLEX ASSIGNMENTS.—In the case 
of an appraisal involving a complex assignment, the customary 
and reasonable fee may reflect the increased time, difficulty, 
and scope of the work required for such an appraisal and 
include an amount over and above the customary and reason-
able fee for non-complex assignments. 
‘‘(j) SUNSET.—Effective on the date the interim final regulations 
are promulgated pursuant to subsection (g), the Home Valuation 
Code of Conduct announced by the Federal Housing Finance Agency 
on December 23, 2008, shall have no force or effect. 
‘‘(k) PENALTIES.— 
‘‘(1) FIRST
VIOLATION.—In addition to the enforcement 
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.
H. R. 4173—815 
‘‘(2) SUBSEQUENT VIOLATIONS.—In the case of any person 
on whom a civil penalty has been imposed 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 person is subject.’’. 
(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 1461(c)) the 
following new items: 
‘‘129E. Appraisal independence requirements. 
‘‘129F. Requirements for prompt crediting of home loan payments. 
‘‘129G. Requests for payoff amounts of home loan. 
‘‘129H. Property appraisal requirements.’’. 
(c) DEFERENCE.—Section 105 of the Truth in Lending Act (15 
U.S.C. 1604) is amended by adding at the end the following: 
‘‘(h) DEFERENCE.—Notwithstanding any power granted to any 
Federal agency under this title, the deference that a court affords 
to the Bureau with respect to a determination made by the Bureau 
relating to the meaning or interpretation of any provision of this 
title, other than section 129E or 129H, shall be applied as if the 
Bureau were the only agency authorized to apply, enforce, interpret, 
or administer the provisions of this title.’’. 
(d) CONFORMING AMENDMENTS IN TITLE X NOT APPLICABLE 
TO SECTIONS 129E AND 129H.—Notwithstanding section 1099A, 
the term ‘‘Board’’ in sections 129E and 129H, as added by this 
subtitle, shall not be substituted by the term ‘‘Bureau’’. 
SEC. 1473. AMENDMENTS RELATING TO APPRAISAL SUBCOMMITTEE 
OF FFIEC, APPRAISER INDEPENDENCE MONITORING, 
APPROVED APPRAISER EDUCATION, APPRAISAL MANAGE-
MENT COMPANIES, APPRAISER COMPLAINT HOTLINE, 
AUTOMATED VALUATION MODELS, AND BROKER PRICE 
OPINIONS. 
(a) THRESHOLD
LEVELS.—Section 1112(b) of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3341(b)) is amended by inserting before the period the fol-
lowing: ‘‘, and receives concurrence from the Bureau of Consumer 
Financial Protection that such threshold level provides reasonable 
protection for consumers who purchase 1–4 unit single-family resi-
dences’’. 
(b) ANNUAL REPORT
OF APPRAISAL SUBCOMMITTEE.—Section 
1103(a) of the Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 3332(a)) is amended at the end by 
inserting the following new paragraph: 
‘‘(5) transmit an annual report to the Congress not later 
than June 15 of each year that describes the manner in which 
each function assigned to the Appraisal Subcommittee has been 
carried out during the preceding year. The report shall also 
detail the activities of the Appraisal Subcommittee, including 
the results of all audits of State appraiser regulatory agencies, 
and provide an accounting of disapproved actions and warnings 
taken in the previous year, including a description of the condi-
tions causing the disapproval and actions taken to achieve 
compliance.’’.
H. R. 4173—816 
(c) OPEN MEETINGS.—Section 1104(b) of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3333(b)) is amended— 
(1) by inserting ‘‘in public session after notice in the Federal 
Register, but may close certain portions of these meetings 
related to personnel and review of preliminary State audit 
reports,’’ after ‘‘shall meet’’; and 
(2) by adding after the final period the following: ‘‘The 
subject matter discussed in any closed or executive session 
shall be described in the Federal Register notice of the 
meeting.’’. 
(d) REGULATIONS.—Section 1106 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3335) 
is amended— 
(1) by inserting ‘‘prescribe regulations in accordance with 
chapter 5 of title 5, United States Code (commonly referred 
to as the Administrative Procedures Act) after notice and oppor-
tunity for comment,’’ after ‘‘hold hearings’’; and 
(2) at the end by inserting ‘‘Any regulations prescribed 
by the Appraisal Subcommittee shall (unless otherwise provided 
in this title) be limited to the following functions: temporary 
practice, national registry, information sharing, and enforce-
ment. For purposes of prescribing regulations, the Appraisal 
Subcommittee shall establish an advisory committee of industry 
participants, including appraisers, lenders, consumer advocates, 
real estate agents, and government agencies, and hold meetings 
as necessary to support the development of regulations.’’. 
(e) APPRAISAL REVIEWS AND COMPLEX APPRAISALS.— 
(1) SECTION 1110.—Section 1110 of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3339) is amended— 
(A) in paragraph (1), by striking ‘‘and’’; 
(B) in paragraph (2), by striking the period at the 
end and inserting ‘‘; and’’; and 
(C) by inserting after paragraph (2) the following: 
‘‘(3) that such appraisals shall be subject to appropriate 
review for compliance with the Uniform Standards of Profes-
sional Appraisal Practice.’’. 
(2) SECTION 1113.—Section 1113 of the Financial Institu-
tions and Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3342) is amended by inserting before the period the 
following: ‘‘, where a complex 1-to-4 unit single family residen-
tial appraisal means an appraisal for which the property to 
be appraised, the form of ownership, the property characteris-
tics, or the market conditions are atypical’’. 
(f) APPRAISAL MANAGEMENT SERVICES.— 
(1) SUPERVISION OF THIRD PARTY PROVIDERS OF APPRAISAL 
MANAGEMENT
SERVICES.—Section 1103(a) of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 
(12 U.S.C. 3332(a)) (as previously amended by this section) 
is amended— 
(A) by amending paragraph (1) to read as follows: 
‘‘(1) monitor the requirements established by States— 
‘‘(A) for the certification and licensing of individuals 
who are qualified to perform appraisals in connection with 
federally related transactions, including a code of profes-
sional responsibility; and