Skip to main content

Feds Issue Final Rule on AMC Requirements

Apr 30, 2015
Home Shopping Cart AMC

Six federal financial regulatory agencies have jointly issued a final rule that implements minimum requirements for state registration and supervision of appraisal management companies (AMCs). The final rule implements amendments to Title XI of the Financial Institution Reform, Recovery, and Enforcement Act of 1989 made by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. 

Under the rule, states may elect to register and supervise AMCs. The AMC minimum requirements in the final rule apply to states that elect to register and supervise AMCs, as AMCs are defined in the rule. The final rule does not compel a state to establish an AMC registration and supervision program, and no penalty is imposed on a state that does not establish a regulatory structure for AMCs. However, in states that have not established a regulatory structure after 36 months from the effective date of this final rule, any non-federally regulated AMC is barred by Section 1124 of Title XI from providing appraisal management services for federally related transactions. A state may adopt a regulatory structure for AMCs after this 36-month period, which would lift this restriction. 

Under the final rule, participating states must apply certain minimum requirements in the registration and supervision of appraisal management companies.  An AMC that is a subsidiary of an insured depository institution and is regulated by a federal financial institution regulatory agency (a federally-regulated AMC) must meet the same minimum requirements as state-regulated AMCs except for the requirement to register with a state.

This final rule will become effective 60 days after publication in the Federal Register.  The compliance date for federally regulated AMCs is no later than 12 months from the effective date of this rule. A participating state will specify the compliance deadline for state-regulated AMCs.         

The final rule is being issued jointly by the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the Consumer Financial Protection Bureau (CFPB), the Federal Housing Finance Agency (FHFA), and the National Credit Union Administration (NCUA).  

About the author
Published
Apr 30, 2015
Rocket Mortgage Sues HUD Over Regulatory, Enforcement Discrepancies

Rocket seeks dismissal of the DOJ's October lawsuit alleging the lender committed racial appraisal bias.

Dec 05, 2024
CFPB Finalizes Rule Increasing Federal Oversight On Nonbank Fintechs

The final rule concerns lenders that offer digital payment apps and handle more than 50 million transactions per year.

Banking Regulator Testifies On Digital Transition, Climate Risks

Head of the OCC shares front-line perspectives as federal agencies prepare for a second Trump administration

Nov 20, 2024
FHA Proposes Looser Boarder Income Requirements For Qualifying Borrowers

The proposed changes reduce acceptable rental income history from two years to 12 months, among other expansions of FHA guidelines

Nov 20, 2024
New Calendar, Or Dictionary, Needed For AnnieMac

Half-a-dozen class-action law firms have launched investigations into AnnieMac's "proactive" handling of a late-August data breach.

Consumer Watchdog Invites State Regulators To Dance

As regulatory roll-backs loom over financial sectors, the CFPB says consumers' financial data rights are states' to forfeit