Introduction and Purpose for the ASC Policy Statements
Two Federal statutes, Title XI and 12 U.S.C. 1708(e)(B), require the use of State certified or licensed real estate appraisers, as do certain Federal regulations and policies such as the Department of Transportation’s regulations implementing the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Office of Management and Budget Circular No. A-129 and Bulletin No. 92-06, and the Uniform Standards for Federal Land Acquisitions.
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, (FIRREA) entitled the “Real Estate Appraisal Reform Amendments,” established the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (ASC). The ASC consists of representatives appointed by the heads of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the National Credit Union Administration (Federal financial institutions regulatory agencies or Agencies) and the Department of Housing and Urban Development, Federal Housing Finance Agency and the Bureau of Consumer Financial Protection.
The ASC, among other things, is charged with monitoring the certification and licensing programs for real estate appraisers in each State to determine whether the State’s policies, practices and procedures are consistent with Title XI and enforcing the State’s compliance with the requirements of Title XI. This statute also requires the ASC to maintain a national registry of State licensed and certified appraisers and to ensure that each State appraiser certifying and licensing agency (State agency) transmits to the ASC a roster of State certified and licensed appraisers who are eligible to perform appraisals in federally related transactions, along with an annual registry fee. States may establish and maintain procedures for certifying, licensing, supervising and disciplining individuals who are qualified to perform real estate appraisals in connection with Federal financial and public policy interests, including a code of professional responsibility as evidenced by the Uniform Standards of Professional Appraisal Practice (USPAP), as adopted by the Appraisal Standards Board of the Appraisal Foundation (ASB). Title XI, and other Federal statutes and regulations3 requiring the use of State certified or licensed appraisers necessarily rely on States to perform their real estate appraiser-related duties in a responsible manner.
In exercising its oversight responsibilities, the ASC reviews each State’s overall appraiser regulatory program to determine compliance with Title XI. All of a State’s requirements and policies need not be specifically set forth in statutes, but may be established by regulation, procedure or practice. Conversely, an otherwise adequate set of statutes or regulations can be undermined by inadequate implementation. In general, the ASC considers each State appraiser regulatory program to be valid unless the ASC formally rejects or disapproves the program using the procedures in 12 U.S.C. 3347 and 12 CFR part 1102, subpart B.
In general, State agencies should take appropriate steps to ensure that each person seeking to qualify as a State certified or licensed appraiser has demonstrated his or her competency. To demonstrate competency, the ASC believes that States should ensure that appraisers meet appropriate education, testing and experience requirements. Moreover, State agencies should ensure that State certified or licensed appraisers continue to perform their assignments in a competent and ethical manner.
Federal or State statutes or regulations may prescribe which transactions must have an appraisal performed by a State certified or licensed appraiser. For federally regulated financial institutions, Title XI generally requires that State certified real estate appraisers perform all appraisals in connection with federally related transactions over $1 million and complex one-to-four family residential properties. The Agencies have adopted comprehensive regulations and policies specifying when appraisals by State certi fied or licensed appraisers must be obtained by regulated financial institutions.
Purpose
The ASC is issuing these Policy Statements to assist the States in the continuing development and maintenance of appropriate organizational and regulatory structures for certifying, licensing and supervising real estate appraisers. These Statements reflect the general framework that the ASC is using to review a State’s program for compliance with Title XI. These Statements: (1) supersede the ASC’s Policy Statements that were adopted on August 4, 1993; (2) incorporate new Policy Statements 5 and 6 on temporary practice and reciprocity, which were published, respectively, at 62 FR 19755 (April 23, 1997) and 23777 (May 1, 1997); (3) include new guidance on several issues, such as the National Registry and (4) reflect non-substantive, stylistic edits to the earlier version.
Policy Statements
On September 22, 1997, the ASC adopted the most recent version of the Policy Statements Regarding State Certification and Licensing of Real Estate Appraisers.
These Policies consist of twelve separate sections: an introduction, a purpose paragraph, and ten Policy Statements.
The Policy Statements are:
Statement 1 - - State Regulatory Structure and Independence of Functions;
Statement 2 - - Appraiser Classifications;
Statement 3 - - Appraisal Standards;
Statement 4 - - Written Appraisal Reports;
Statement 5 - - Temporary Practice;
Statement 6 - - Reciprocity;
Statement 7 - - Prohibition Against Discrimination;
Statement 8 - - National Registry of State Certified and Licensed Appraisers;
Statement 9 - - Information Sharing; and
Statement 10 - - Enforcement
All Policy Statements including Table of Contents
On January 13, 1999, the ASC amended ASC Policy Statement 8C to conform to Comptroller General of the United States Decision B-279866.2 (November 3, 1998), which prohibited the ASC from identifying appraisers on the National Registry as eligible to perform appraisals in connection with federally related transactions for years for which a State has collected fees but has not transmitted them to the ASC.
At its October 11, 2000 meeting, the ASC adopted amendments to Policy Statements 1 and 10, which became effective on January 1, 2001.
On August 11, 2004, the ASC adopted additional amendments to ASC Policy Statements 1 and 10, which became effective on January 1, 2005.
Policy Statements 1 and 10, as amended, together with our transmittal letter to State appraiser regulatory agencies and a summary of comments, can be read and downloaded below.
At its August 9, 2007 meeting, the ASC amended ASC Policy Statement 10 by adding paragraph G. The new paragraph has no specific effective date because it did not establish new requirements. New paragraph 10G, together with our transmittal letter to State appraiser regulatory agencies and a summary of comments, can be read and downloaded below.
At its August 14, 2008 meeting, the ASC adopted a revised Policy Statement 10G. The revised Policy Statement will become effective October 1, 2008. Revised paragraph 10G, together with our transmittal letter to State appraiser regulatory agencies and a summary of comments, can be read and downloaded below
2000.10.11 ASC Policy Statements Amended
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2000.10.11 ASC Policy Statements Transmittal Letter, Comment Summary, and Statements 1 & 10
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2004.08.11 ASC Policy Statement Amendment re Affidavit Use
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2004.08.11 ASC Policy Statement Amendment re Third Party Processors
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2004.08.25 LTR All States Transmitting Policy Amendment re Affidavit Use
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2004.08.25 LTR All States Transmitting Policy Amendment re Third Party Processors
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2007.03.28 LTR All States Requested Comment on Proposed Policy Statement re Experience Validation and USPAP Compliance
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2007.08.09 All ASC Policy Statements (as amended)
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2007.08.09 LTR Comments on ASC Policy Statement 10 G
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2007.08.13 LTR All States Revised Policy Statement 10G
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2008.08.27 LTR All States ASC Policy Statement 10G Amended
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2008.08.27 LTR AZ Rsp Comments on Policy Statement 10G
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Policy Statements 1-10 October 2008
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