[Federal Register Volume 64, Number 248 (Tuesday, December 28, 1999)]
[Rules and Regulations]
[Pages 72868-72869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33672]



[[Page 72867]]

_______________________________________________________________________

Part XII





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 200



Single Family Mortgage Insurance; Appraiser Roster Placement 
Procedures; Final Rule

  Federal Register / Vol. 64, No. 248 / Tuesday, December 28, 1999 / 
Rules and Regulations  

[[Page 72868]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 200

[Docket No. FR-4429-F-02]
RIN 2502-AH29


Single Family Mortgage Insurance; Appraiser Roster Placement 
Procedures

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Final rule.

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SUMMARY: This final rule adopts certain of the provisions concerning 
HUD's Appraiser Roster that were published for public comment in a 
proposed rule on July 2, 1999. The Appraiser Roster lists appraisers 
who are eligible to perform Federal Housing Administration single 
family appraisals. The provisions adopted by this final rule codify the 
current Appraiser Roster placement procedure. The provisions published 
in the proposed rule concerning the Appraiser Roster removal procedure 
are being further considered by HUD and will be addressed in a separate 
rulemaking.

DATES: Effective Date: January 27, 2000.

FOR FURTHER INFORMATION CONTACT: Vance T. Morris, Director, Home 
Mortgage Insurance Division, Office of Insured Single Family Housing, 
Room 9266, U.S. Department of Housing and Urban Development, 451 
Seventh Street, SW, Washington, DC 20410-8000; telephone (202) 708-2700 
(this is not a toll-free number). Hearing- or speech-impaired 
individuals may access this number via TTY by calling the toll-free 
Federal Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

I. HUD's Appraiser Roster

    HUD's Appraiser Roster lists appraisers who are eligible to perform 
Federal Housing Administration (FHA) single family appraisals. HUD 
maintains the Appraiser Roster to provide a means by which HUD can 
monitor the quality of appraisals performed on single family homes 
financed through FHA single family programs and to ensure that 
appraisers performing FHA appraisals meet high competency standards. 
The Appraiser Roster is an important part of the FHA Single Family 
Mortgage Insurance program because accurate appraisals are vital to the 
success of the Program and HUD's ability to protect the FHA insurance 
funds.

II. The July 2, 1999 Proposed Rule

    On July 2, 1999, HUD published for public comment a proposed rule 
(64 FR 36216) that would have codified the current placement procedure 
for HUD's Appraiser Roster and proposed an independent procedure for 
removing an appraiser from the Appraiser Roster. HUD proposed this 
independent removal procedure, separate and apart from HUD's existing 
debarment, suspension, and limited denial of participation 
administrative remedies, in order to better safeguard the FHA insurance 
funds and to better protect homebuyers. A complete description of these 
procedures is presented in the preamble to the July 2, 1999 proposed 
rule.

III. This Final Rule

    This final rule adopts certain of the provisions concerning HUD's 
Appraiser Roster published in the July 2, 1999 proposed rule. 
Specifically, this final rule adopts the provisions that codify the 
current Appraiser Roster placement procedure. This final rule does not 
adopt the independent removal procedure nor certain other related 
provisions. A summary of the provisions adopted by this final rule is 
presented in section V. of this preamble.
    The public comment period for the proposed rule closed on August 2, 
1999. HUD received 2 comments. We received one comment from a banking 
institution and the other from a trade association. One of the 
commenters wrote in favor of the proposed rule. The other commenter 
raised a number of concerns about the proposed removal procedure. 
Neither commenter raised issues concerning the codification of HUD's 
current placement procedure. Consequently, HUD is adopting this 
procedure without change.
    HUD, however, has decided not to adopt the proposed independent 
removal procedure in this final rule.

IV. Plain Language

    Please note that the structure of the proposed rule has been 
revised in this final rule to comply with President Clinton's 
Memorandum of June 1, 1998, entitled ``Plain Language in Government'' 
(63 FR 31885). In this memorandum, President Clinton directed Federal 
agencies to use plain language in all government writing. With respect 
to rulemaking, President Clinton directed Federal agencies to use plain 
language in new proposed and final rules beginning January 1, 1999. 
Plain language is an approach to writing that promotes responsive, 
accessible, and understandable written communications.
    In particular, the structure of this final rule has been revised to 
present the rule in question-and-answer format. This was done to 
improve clarity and to make the regulations more user-friendly. The 
substance of each section, however, as proposed in the July 2, 1999 
rule, has not been changed. In addition, some of the proposed 
regulatory language has been revised. Again, these revisions do not 
change the substance of each section. The revisions are also intended 
to improve the clarity of the final rule.

V. Summary of Provisions Adopted by this Final Rule

    The following table presents a summary of the provisions adopted by 
the final rule. The table also serves as a guide to the plain language 
organizational changes implemented by the final rule. The first column 
of the table lists the provisions of the proposed rule. If the 
provision has been adopted by this final rule, the second column lists 
where in the new organization the provision appears. If the provision 
has not been adopted, the second column indicates that the provision 
has not been adopted by the final rule.

------------------------------------------------------------------------
                                             Adopted by this final rule
     Provision in proposed rule * * *                 at * * *
------------------------------------------------------------------------
Sec.  200.200(a)..........................  Sec.  200.200(a)
Sec.  200.200(b)..........................  Sec.  200.200(b)
Sec.  200.200(c)..........................  Sec.  200.202
Sec.  200.200(d)..........................  Not adopted by this final
                                             rule.
Sec.  200.200(e)..........................  Sec.  200.206
Sec.  200.200(f)..........................  Not adopted by this final
                                             rule.
Sec.  200.200(g)..........................  Not adopted by this final
                                             rule.
Sec.  200.200(h)..........................  Not adopted by this final
                                             rule.
------------------------------------------------------------------------

VI. Findings and Certifications

Paperwork Reduction Act Statement

    The information collection requirements contained in this rule have 
been submitted to the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) and assigned OMB 
control number 2502-0538. An agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless the collection displays a valid control number.

Environmental Impact

    This final rule does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate, real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise or

[[Page 72869]]

provide for standards for construction or construction materials, 
manufactured housing, or occupancy. Accordingly, under 24 CFR 
50.19(c)(1), this final rule is categorically excluded from 
environmental review under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321).

Regulatory Flexibility Act

    The Secretary has reviewed this final rule before publication, and 
by approving it certifies, in accordance with the Regulatory 
Flexibility Act (5 U.S.C. 605(b)), that this final rule would not have 
a significant economic impact on a substantial number of small 
entities.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) requires Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and on 
the private sector. This final rule does not impose, within the meaning 
of the UMRA, any Federal mandates on any State, local, or, tribal 
governments or on the private sector.

Federalism Impact

    Executive Order 13132 (entitled ``Federalism'') prohibits, to the 
extent practicable and permitted by law, an agency from promulgating a 
regulation that has federalism implications and either imposes 
substantial direct compliance costs on State and local governments and 
is not required by statute, or preempts State law, unless the relevant 
requirements of section 6 of the Executive Order are met. This final 
rule does not have federalism implications and does not impose 
substantial direct compliance costs on State and local governments or 
preempt State law within the meaning of the Executive Order.

VII. List of Subjects in 24 CFR Part 200

    Administrative practice and procedure, Claims, Equal employment 
opportunity, Fair housing, Home improvement, Housing standards, 
Incorporation by reference, Lead poisoning, Loan programs--housing and 
community development, Minimum property standards, Mortgage insurance, 
Organization and functions (Government agencies), Penalties, Reporting 
and recordkeeping requirements, Social security, Unemployment 
compensation, Wages.
    For the reasons discussed in the preamble, HUD amends 24 CFR part 
200 as follows:

PART 200--INTRODUCTION TO FHA PROGRAMS

    1. The authority citation for part 200 continues to read as 
follows:

    Authority: 12 U.S.C. 1701-1715z-18; 42 U.S.C. 3535(d).

    2. Add subpart G to read as follows:

Subpart G--Appraiser Roster

Sec.
200.200  What is the Appraiser Roster?
200.202  How do I apply for placement on the Appraiser Roster?
200.204  [Reserved]
200.206  What are my responsibilities as an appraiser listed on the 
Appraiser Roster?

Subpart G--Appraiser Roster


Sec. 200.200  What is the Appraiser Roster?

    (a) Appraiser Roster. HUD maintains a list of appraisers. A 
mortgagee must select only an appraiser from this list for the 
appraisal of a property that is to be the security for an FHA-insured 
single family mortgage.
    (b) Disclaimer. Since an appraisal is performed to determine the 
maximum insurable mortgage and to also protect the FHA insurance funds, 
the inclusion of an appraiser on the Appraiser Roster does not create 
or imply a warranty or endorsement to a prospective homebuyer or to any 
other organization or individual by HUD of the listed appraiser nor 
does it represent a warranty of any appraisal performed by the listed 
appraiser. The inclusion of an appraiser on the Appraiser Roster means 
only that a listed appraiser has met the qualifications and conditions, 
prescribed by the Secretary, for inclusion on the Appraiser Roster.


Sec. 200.202  How do I apply for placement on the Appraiser Roster?

    (a) Application. To apply for placement on the Appraiser Roster, 
you must submit an application to HUD.
    (b) Eligibility. To be eligible for placement on the Appraiser 
Roster:
    (1) You must be a state-licensed or state-certified appraiser;
    (2) You must pass a HUD test on FHA appraisal methods and 
reporting; and
    (3) You must not be listed on:
    (i) The General Service Administration's Suspension and Debarment 
List;
    (ii) HUD's Limited Denial of Participation List; or
    (iii) HUD's Credit Alert Interactive Voice Response System.


Sec. 200.204  [Reserved]


Sec. 200.206  What are my responsibilities as an appraiser listed on 
the Appraiser Roster?

    All appraisers listed on the Appraiser Roster are responsible for:
    (a) Obtaining and reading the HUD Appraiser Handbook (4150.2) and 
any updates to the Handbook;
    (b) Complying with the HUD Appraiser Handbook (4150.2), and any 
updates to the Handbook, when performing all appraisals of properties 
for HUD single family mortgage insurance purposes; and
    (c) Complying with all other instructions and standards issued by 
HUD when performing all appraisals of properties for HUD single family 
mortgage insurance purposes.

    Dated: December 17, 1999.
William C. Apgar,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 99-33672 Filed 12-27-99; 8:45 am]
BILLING CODE 4210-27-P