[Federal Register Volume 76, Number 57 (Thursday, March 24, 2011)]
[Notices]
[Pages 16627-16628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6969]


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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL

[Docket No. AS11-08]


Statutory Provisions Affecting State Appraiser Regulatory 
Programs

AGENCY: Appraisal Subcommittee (ASC) of the Federal Financial 
Institutions Examination Council.

ACTION: Notice of Statutory Provisions Affecting State Appraiser 
Regulatory Programs.

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SUMMARY: The Dodd-Frank Wall Street Reform and Consumer Protection Act 
of 2010 (Dodd-Frank Act) contains a number of provisions addressing the 
authority of the Appraisal Subcommittee (ASC) and requirements for 
States' appraiser regulatory programs. The ASC is issuing Bulletin No. 
2011-01 to provide information to the State appraiser regulatory 
officials on certain changes to the ASC's review process for monitoring 
State Appraiser Regulatory Programs which will be implemented July 1, 
2011, and the statutory provisions that States must implement by July 
1, 2013. To provide sufficient time for States to amend their rules, 
regulations, or operating procedures, the ASC is providing States with 
a two-year implementation period for requirements addressed in the 
bulletin.

DATES: Effective Date: July 1, 2013 for States' Implementation of 
Statutory Provisions; July 1, 2011 for Revisions to the ASC's State 
Compliance Review Process.

FOR FURTHER INFORMATION CONTACT: James R. Park, Executive Director, at 
(202) 595-7575, or Alice M. Ritter, General Counsel, at (202) 595-7577, 
via Internet e-mail at [email protected] and [email protected], respectively, or 
by U.S. Mail at Appraisal Subcommittee, 1401 H Street, NW., Suite 760, 
Washington, DC 20005.

SUPPLEMENTARY INFORMATION: The ASC issued the following Bulletin 2011-
01, Statutory Provisions Affecting State Appraiser Regulatory Programs, 
on March 18, 2011.
    The Appraisal Subcommittee (ASC) is issuing this Bulletin to State 
Appraiser Regulatory Officials to provide information on compliance 
with certain provisions in the Dodd-Frank Act. The Dodd-Frank Act 
amended several sections of Title XI of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (FIRREA Title XI). This 
Bulletin addresses the following provisions:
     Reciprocity.
     Qualification requirements for State licensed appraisers.
     Minimum requirements for trainee appraisers and 
supervisory appraisers.
     Course approval program of the Appraisal Foundation's 
Appraiser Qualifications Board (AQB).
     ASC monitoring of funding and staff resources available to 
State appraiser regulatory programs (State Programs).
    This Bulletin outlines changes to the ASC's process for monitoring 
State Programs, the requirements that States must implement, with 
statutory references, as well as the effective dates for compliance. 
Recognizing States may need to amend their rules and/or regulations, or 
revise their operating procedures, the ASC is providing States with a 
two-year implementation period for certain of the above the provisions. 
As part of its State Compliance Review Process, the ASC will continue 
to evaluate State Programs for compliance with FIRREA Title XI and the 
ASC Policy Statements, including those that cover topics addressed in 
the Dodd-Frank Act.

Provisions With a Two-Year Implementation Period

    Effective July 1, 2013, the ASC will begin reviewing State Programs 
for compliance with the following three requirements. Over the next two 
years, the ASC will monitor States' efforts to implement the 
requirements.
     Reciprocity: Provisions of the Dodd-Frank Act require 
States to have in place a policy for issuing a reciprocal certification 
or license to an appraiser from another State under specific 
conditions. Moreover, a Federally regulated financial institution may 
not

[[Page 16628]]

engage a certified or licensed appraiser to perform an appraisal of a 
property for a Federally related transaction unless the State wherein 
the appraiser is credentialed has such a reciprocity policy in place. 
The State's reciprocity policy must meet the following conditions:
    1. The appraiser licensing and certification program of the other 
State is in compliance with the provisions of FIRREA Title XI; and
    2. The appraiser holds a valid certification from a State with 
requirements for certification or licensing that meet or exceed the 
certification and licensure standards established by the State where an 
individual seeks reciprocity.
    Statutory and Policy References: FIRREA Title XI Sec.  1122(b), 12 
U.S.C. 3351, as amended by the Dodd-Frank Act; FIRREA Title XI Sec.  
1122(b), 12 U.S.C. 3351; ASC Policy Statement 6.
     Certification and Licensing Requirements for State 
licensed appraisers: The Dodd-Frank Act defines a ``State licensed 
appraiser'' as an individual who has satisfied the requirements for 
State licensing in a State with criteria for the licensing of a real 
estate appraiser currently that meet or exceed the minimum criteria 
issued by the AQB for the licensing of real estate appraisers. 
Therefore, if a State has a licensed category, the minimum 
qualification criteria issued by the AQB is mandatory.
    Statutory Reference: FIRREA Title XI Sec.  1116(c), 12 U.S.C. 3345, 
as amended by the Dodd-Frank Act. See also AQB Real Property Appraiser 
Qualification Criteria.
     Certification and Licensing Requirements--Minimum 
Qualification Requirements: The Dodd-Frank Act mandates that any 
minimum qualification requirements established by a State for 
individuals in the position of ``Trainee Appraiser'' and ``Supervisory 
Appraiser'' must meet or exceed the minimum qualification requirements 
of the AQB.
    Statutory Reference: FIRREA Title XI Sec.  1116(e), 12 U.S.C. 3345, 
as amended by the Dodd-Frank Act. See also AQB Real Property Appraiser 
Qualification Criteria.
    The AQB's minimum qualification criteria may be subject to 
amendment from time to time by the AQB and is available at the 
Appraisal Foundation's Web site under the ``Qualifications'' tab 
referencing ``Real Property Criteria.'' (http://www.appraisalfoundation.org)

Revisions to State Compliance Review Process

    While the Dodd-Frank Act contains a number of mandates addressing 
the authority and responsibilities of the ASC, the ASC is now formally 
incorporating the following two requirements into its State Compliance 
Review process. The revisions take effect on July 1, 2011, and do not 
necessarily require States to revise rules and/or regulations. States 
that will need to revise rules and/or regulations should advise the ASC 
as soon as possible.
     The Dodd-Frank Act requires the ASC to encourage States to 
accept courses approved by the AQB Course Approval Program. While the 
ASC currently reviews States' practices in this area as part of the 
Compliance Review process, the ASC will formally ask a State whether or 
not the State uses the AQB Course Approval Program as part of a 
Compliance Review conducted after July 1, 2011. Accordingly, the ASC 
will continue to encourage States to accept courses approved by the AQB 
Course Approval Program.
    Statutory References: FIRREA Title XI Sec.  1122(h), 12 U.S.C. 
3351, as amended by the Dodd-Frank Act.
     The Dodd-Frank Act requires the ASC to monitor a State 
Program for the purposes of determining whether a State has policies, 
practices, procedures, funding, and staffing consistent with the 
purpose of FIRREA Title XI. The ASC's longstanding practice is to 
monitor the adequacy of a State Program's policies, practices and 
procedures. Recently, the ASC has been requesting funding and staffing 
data for State Programs as part of the Compliance Review process and 
will formally request the information from State Programs for 
Compliance Reviews conducted after July 1, 2011.
    Statutory References: FIRREA Title XI Sec.  1118(a), 12 U.S.C. 
3347, as amended by the Dodd-Frank Act.
    For further information, contact James R. Park, Executive Director, 
at (202) 595-7575 or [email protected], or Alice M. Ritter, General Counsel, 
at (202) 595-7577 or [email protected].

    By the Appraisal Subcommittee.

    Dated: March 18, 2011.
Deborah S. Merkle,
Chairman.
[FR Doc. 2011-6969 Filed 3-23-11; 8:45 am]
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