137 
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 
‘‘(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. 
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00137
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS
138 
‘‘(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.’’. 
(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 501(c)) the following new item: 
‘‘129E. Unfair and deceptive practices and acts relating to certain consumer 
credit transactions.’’. 
SEC. 603. AMENDMENTS RELATING TO APPRAISAL SUB-
COMMITTEE OF FIEC, APPRAISER INDEPEND-
ENCE, 
AND 
APPROVED 
APPRAISER 
EDU-
CATION. 
(a) CONSUMER PROTECTION MISSION.— 
(1) PURPOSES.—Section 1101 of the Financial 
Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 3331) is amended by inserting 
‘‘and to provide the Appraisal Subcommittee with a 
consumer protection mandate’’ before the period at 
the end. 
(2) 
FUNCTIONS
OF
APPRAISAL
SUB-
COMMITTEE.—Section 1103(a) of the Financial In-
stitutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 3332(a)) is amended— 
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00138
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS
139 
(A) by striking ‘‘and’’ at the end of para-
graph (3); 
(B) by striking the period at the end of 
paragraph (4) and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(5) protect the consumer from improper ap-
praisal practices and the predations of unlicensed 
appraisers.’’. 
(3) 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 that such threshold level provides rea-
sonable protection for consumers who purchase 1–4 
unit single-family residences’’. 
(b) 
ANNUAL
REPORT
OF
APPRAISAL
SUB-
COMMITTEE.—Section 1103(a)(4) of Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3332(a)(4)) is amended at the end by inserting: 
‘‘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 
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00139
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS
140 
year, including a description of the conditions causing the 
disapproval.’’. 
(c) OPEN MEETINGS.—Section 1104(b) of the Finan-
cial Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 3333(b)) is amended by inserting ‘‘in 
public session after notice in the Federal Register’’ after 
‘‘shall meet’’. 
(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 after no-
tice and opportunity for comment,’’ after ‘‘hold 
hearings’’; and 
(2) at the end by inserting ‘‘Any regulations 
prescribed by the Appraisal Subcommittee shall (un-
less otherwise provided in this title) be limited to the 
following functions: temporary practice, national reg-
istry, information sharing, and enforcement. For 
purposes of prescribing regulations, the Appraisal 
Subcommittee shall establish an advisory committee 
of industry participants, including appraisers and 
government agencies, and hold regular meetings.’’. 
(e) FIELD APPRAISALS AND APPRAISAL REVIEWS.— 
Section 1113 of the Financial Institutions Reform, Recov-
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00140
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS
141 
ery, and Enforcement Act of 1989 (12 U.S.C. 3342) is 
amended— 
(1) by striking ‘‘In determining’’ and inserting 
‘‘(a) IN GENERAL.—In determining’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) FIELD
APPRAISALS
AND
APPRAISAL
RE-
VIEWS.—All field appraisals performed at a property with-
in a State shall be prepared by appraisers licensed in the 
State where the property is located. All Uniform Stand-
ards of Professional Appraisal Practice-compliant ap-
praisal reviews shall be performed by an appraiser who 
is duly licensed by a State appraisal board.’’. 
(f) 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 (3); and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) transmit reports on sanctions, disciplinary 
actions, license and certification revocations, and li-
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00141
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS
142 
cense and certification suspensions on a timely basis 
to the national registry of the Appraisal Sub-
committee; and’’. 
(g) REGISTRY FEES MODIFIED.—Section 1109(a)(3) 
of the Financial Institutions Reform, Recovery, and En-
forcement Act of 1989 (12 U.S.C. 3338(a)(3)) (as modi-
fied by section 203(e) of this Act) is amended by— 
(1) striking ‘‘$25’’ and inserting ‘‘$40’’; 
(2) striking ‘‘$50’’ and inserting ‘‘$80’’; and 
(3) inserting after the period at the end the fol-
lowing new sentences: ‘‘The Appraisal Subcommittee 
shall consider at least once every 5 years whether to 
adjust the dollar amount of the registry fees to ac-
count for inflation. In implementing any change in 
registry fees, the Appraisal Subcommittee shall pro-
vide flexibility to the States for multi-year certifi-
cations and licenses already in place, as well as a 
transition period to implement the changes in reg-
istry fees.’’ 
(h) 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); 
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00142
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS
143 
(2) by striking the period at the end of para-
graph (4) and inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(5) make grants to State appraiser regulatory 
agencies to help defray those costs relating to en-
forcement activities; and 
‘‘(6) to report to all State appraiser certifying 
and licensing agencies when a license or certification 
is surrendered, revoked, or suspended.’’. 
(i) 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-
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00143
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS
144 
ments of the Appraiser Qualifications Board of The Ap-
praisal Foundation. The Appraisal Subcommittee shall 
have the authority to enforce these requirements.’’. 
(j) MONITORING OF STATE APPRAISER CERTIFYING 
AND LICENSING AGENCIES.—Section 1118(a) of the Fi-
nancial Institutions Reform, Recovery, and Enforcement 
Act of 1989 (12 U.S.C. 3347(a)) is amended— 
(1) by inserting ‘‘funding, staffing,’’ after 
‘‘practices,’’ each place such term appears; 
(2) by inserting before the period at the end of 
the first sentence the following: ‘‘, whether a State 
agency processes complaints and completes exams in 
a reasonable time period, and whether a State agen-
cy reports claims and disciplinary actions on a time-
ly basis to the national registry maintained by the 
Appraisal Subcommittee’’; and 
(3) by inserting at the end the following new 
sentence: ‘‘The Appraisal Subcommittee shall have 
the authority to impose interim sanctions and sus-
pensions.’’. 
(k) 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: 
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00144
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS
145 
‘‘(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.’’. 
(l) 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 adding at the end the 
following new sentence: ‘‘No provision of this subsection 
shall be construed as prohibiting consideration of designa-
tions conferred by recognized national professional ap-
praisal organizations, such as sponsoring organizations of 
The Appraisal Foundation.’’. 
(m) 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.— 
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00145
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS
146 
‘‘(1) PROHIBITIONS ON INTERESTED PARTIES 
IN
A
REAL
ESTATE
TRANSACTION.—No 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 shall improperly influ-
ence, or attempt to improperly influence, through co-
ercion, extortion, collusion, compensation, instruc-
tion, inducement, intimidation, non-payment for 
services rendered, or bribery, the development, re-
porting, result, 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 
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 
property information, including the consider-
ation of additional comparable properties to 
make or support an appraisal. 
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00146
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS
147 
‘‘(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 
basis to believe an appraiser is violating applicable 
laws, or is otherwise engaging in unethical or unpro-
fessional conduct, shall refer the matter to the appli-
cable State appraiser certifying and licensing agen-
cy. 
‘‘(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 
VerDate Nov 24 2008 
01:03 Mar 27, 2009
Jkt 079200
PO 00000
Frm 00147
Fmt 6652
Sfmt 6201
E:\BILLS\H1728.IH
H1728
rfrederick on PROD1PC67 with BILLS