15 USC 1639e - Appraisal independence requirements

U.S Code last checked for updates: May 02, 2024

§ 1639e.

Appraisal independence requirements

(a)

In general

(b)

Appraisal independence

For purposes of subsection (a), acts or practices that violate appraisal independence shall include—

(1)

any appraisal of a property offered as security for repayment of the consumer credit transaction that is conducted in connection with such transaction in which a person with an interest in the underlying transaction compensates, coerces, extorts, colludes, instructs, induces, bribes, or intimidates a person, appraisal management company, firm, or other entity conducting or involved in an appraisal, or attempts, to compensate, coerce, extort, collude, instruct, induce, bribe, or intimidate such a person, for the purpose of causing the appraised value assigned, under the appraisal, to the property to be based on any factor other than the independent judgment of the appraiser;

(2)

mischaracterizing, or suborning any mischaracterization of, the appraised value of the property securing the extension of the credit;

(3)

seeking to influence an appraiser or otherwise to encourage a targeted value in order to facilitate the making or pricing of the transaction; and

(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 company, 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

(e)

Mandatory reporting

(f)

No extension of credit

(g)

Rules and interpretive guidelines

(1)

In general

(2)

Interim final regulations

(h)

Appraisal report portability

(i)

Customary and reasonable fee

(1)

In general

(2)

Fee appraiser definition

(A)

In general

For purposes of this section, the term “fee appraiser” means a person who is not an employee of the mortgage loan originator or appraisal management company engaging the appraiser and is—

(i)

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 Uniform Standards of Professional Appraisal Practice; or

(ii)

a company not subject to the requirements of section 3353 of title 12 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.

(B)

Rule of construction related to appraisal donations

(3)

Exception for complex assignments

(j)

Sunset

(k)

Penalties

(1)

First violation

(2)

Subsequent violations

(3)

Assessment

(Pub. L. 90–321, title I, § 129E, as added Pub. L. 111–203, title XIV, § 1472(a), July 21, 2010, 124 Stat. 2187; amended Pub. L. 115–174, title I, § 102, May 24, 2018, 132 Stat. 1299.)

cite as: 15 USC 1639e